D.R. Horton Annual Report 2024

FY2024 Annual Report · D.R. Horton

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ANNUAL REPORT
- 2024

FINANCIAL SUMMARY
(In millions, except for number of homes, apartment units and per share amounts)
As of and for the Year Ended September 30,
2024
2023
2022
2021
2020
Balance Sheet:
Cash and cash equivalents .........................................
$ 4,516.4
$ 3,873.6
$ 2,540.5
$ 3,210.4
$ 3,018.5
Inventories ...............................................................
24,903.2
22,373.3
21,655.7
16,479.1
12,237.4
Total assets ..............................................................
36,104.3
32,582.4
30,351.1
24,015.9
18,912.3
Notes payable ..........................................................
5,917.7
5,094.5
6,066.9
5,412.4
4,283.3
Stockholders’ equity ................................................
25,312.8
22,696.2
19,396.3
14,886.5
11,840.0
Book value per common share ...............................
78.12
67.78
56.39
41.81
32.53
Common shares outstanding ..................................
324.0
334.8
344.0
356.0
364.0
Income Statement and Cash Flow:
Revenues ..................................................................
$36,801.4
$35,460.4
$33,480.0
$27,774.2
$20,311.1
Income before income taxes ...................................
6,284.7
6,314.7
7,629.7
5,356.3
2,983.0
Net income attributable to D.R. Horton, Inc. .........
4,756.4
4,745.7
5,857.5
4,175.8
2,373.7
Diluted earnings per common share ......................
14.34
13.82
16.51
11.41
6.41
Cash provided by operations ....................................
2,189.8
4,304.1
561.8
534.4
1,421.6
Cash dividends paid ..................................................
395.2
341.2
316.5
289.3
256.0
Repurchases of common stock .................................
1,803.1
1,187.3
1,105.9
874.0
360.4
Percentage of Revenues:
Income before income taxes ...................................
17.1%
17.8%
22.8%
19.3%
14.7%
Key Operating Measures:
Return on assets(1) ..................................................
13.9%
15.1%
21.7%
19.8%
13.8%
Return on equity(2) ..................................................
19.9%
22.7%
34.5%
31.6%
22.1%
Consolidated leverage ratio(3) .................................
18.9%
18.3%
23.8%
26.7%
26.6%
Homes closed by homebuilding operations ...........
89,690
82,917
82,744
81,965
65,388
Homes and apartment units closed by rental
operations ...........................................................
6,172
8,287
1,549
1,216
540
Diluted Earnings per
Revenues
Common Share
Book Value per Common Share
Consolidated Leverage Ratio(3)
2024
2021
2020
2022 2023
$36,801
$33,480 $35,460
$20,311
$27,774
$14.34
$6.41
$11.41
$13.82
$16.51
2024
2021
2020
2022 2023
$78.12
$56.39
$67.78
$32.53
$41.81
2024
2021
2020
2022 2023
Return on Equity(2)
20%
22%
32%
35%
23%
2024
2021
2020
2022 2023
Return on Assets(1)
14%
2024
2021
2020
2022 2023
14%
20%
15%
22%
19%
27%
27%
24%
18%
2024
2021
2020
2022 2023

(1) Return on assets is calculated as net income attributable to D.R. Horton for the year divided by average consolidated assets, where average
consolidated assets is the sum of total asset balances for the trailing five quarters divided by five.
(2) Return on equity is calculated as net income attributable to D.R. Horton for the year divided by average stockholders’ equity, where average
stockholders’ equity is the sum of ending stockholders’ equity balances of the trailing five quarters divided by five.
(3) Consolidated leverage ratio represents consolidated notes payable divided by total capital (stockholders’ equity plus consolidated notes payable).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended September 30, 2024
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From
To
Commission file number 1-14122
D.R. Horton, Inc.
(Exact name of registrant as specified in its charter)
Delaware
75-2386963
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
1341 Horton Circle, Arlington, Texas 76011
(Address of principal executive offices) (Zip code)
(817) 390-8200
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Common Stock, par value $.01 per share
DHI
New York Stock Exchange
5.000% Senior Notes due 2034
DHI 34
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes • No •
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes •
No •
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes •
No •
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such
files). Yes •
No •
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company”
in Rule 12b-2 of the Exchange Act.
Large accelerated filer •
Accelerated filer ☐
Non-accelerated filer ☐
Smaller reporting company ☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued
its audit report. •
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by
any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐
No •
As of March 28, 2024, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was approximately $53.3 billion
based on the closing price as reported on the New York Stock Exchange.
As of November 14, 2024, there were 321,169,526 shares of the registrant’s common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement for the 2025 Annual Meeting of Stockholders are incorporated herein by reference (to the extent
indicated) in Part III.

D.R. HORTON, INC. AND SUBSIDIARIES
2024 ANNUAL REPORT ON FORM 10-K
TABLE OF CONTENTS
Page
PART I
ITEM 1.
Business........................................................................................................................................
1
ITEM 1A.
Risk Factors..................................................................................................................................
13
ITEM 1B.
Unresolved Staff Comments ........................................................................................................
25
ITEM 1C.
Cybersecurity ...............................................................................................................................
26
ITEM 2.
Properties......................................................................................................................................
28
ITEM 3.
Legal Proceedings ........................................................................................................................
28
ITEM 4.
Mine Safety Disclosures...............................................................................................................
28
PART II
ITEM 5.
Market for Registrant’s Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities...............................................................................
29
ITEM 6.
[Reserved] ....................................................................................................................................
30
ITEM 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations ......
31
ITEM 7A.
Quantitative and Qualitative Disclosures About Market Risk .....................................................
63
ITEM 8.
Financial Statements and Supplementary Data............................................................................
64
ITEM 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure......
109
ITEM 9A.
Controls and Procedures ..............................................................................................................
109
ITEM 9B.
Other Information.........................................................................................................................
109
ITEM 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.........................................
109
PART III
ITEM 10.
Directors, Executive Officers and Corporate Governance...........................................................
110
ITEM 11.
Executive Compensation..............................................................................................................
110
ITEM 12.
Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters ............................................................................................
110
ITEM 13.
Certain Relationships and Related Transactions, and Director Independence.............................
111
ITEM 14.
Principal Accountant Fees and Services ......................................................................................
111
PART IV
ITEM 15.
Exhibits and Financial Statement Schedules................................................................................
112
ITEM 16.
10-K Summary .............................................................................................................................
117
SIGNATURES .......................................................................................................................................................
118

PART I
ITEM 1.
BUSINESS
D.R. Horton, Inc. is the largest homebuilding company in the United States as measured by number of homes closed. We
construct and sell homes through our operating divisions in 125 markets across 36 states. Our common stock is included in the
S&P 500 Index and listed on the New York Stock Exchange (NYSE) under the ticker symbol “DHI.” Unless the context otherwise
requires, the terms “D.R. Horton,” the “Company,” “we” and “our” used herein refer to D.R. Horton, Inc., a Delaware corporation,
and its predecessors and subsidiaries.
Our homebuilding business began in 1978 in Fort Worth, Texas, and our common stock has been publicly traded since 1992.
We have expanded and diversified our homebuilding operations geographically over the years by investing capital and building
teams of people in our existing markets, start-up operations in new markets and acquisitions of other homebuilding companies. We
have closed more than 1.1 million homes during our 46-year history, and we have been the largest volume homebuilder in the
United States each year since 2002.
Our business operations consist of homebuilding, rental, a majority-owned residential lot development company, financial
services and other activities. Our homebuilding operations are our core business, generating 92% of consolidated revenues of $36.8
billion in fiscal 2024, 90% of consolidated revenues of $35.5 billion in fiscal 2023 and 95% of consolidated revenues of $33.5
billion in fiscal 2022. Our homebuilding operations generate most of their revenues from the sale of completed homes and to a
lesser extent from the sale of land and lots. Approximately 87% of our home sales revenue in fiscal 2024 was generated from the
sale of single-family detached homes, with the remainder from the sale of attached homes, such as townhomes, duplexes and
triplexes. Our product offerings include a broad range of homes for entry-level, move-up, active adult and luxury buyers. Our
homes generally range in size from 1,000 to 4,000 square feet and in price from $200,000 to more than $1,000,000. For the year
ended September 30, 2024, our homebuilding operations closed 89,690 homes with an average closing price of $378,000.
Our rental segment consists of single-family and multi-family rental operations. The single-family rental operations construct
and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The
multi-family rental operations develop, construct, lease and sell residential rental properties, the majority of which are apartment
communities. For the year ended September 30, 2024, our rental operations closed 3,970 single-family rental homes and 2,202
multi-family rental units.
At September 30, 2024, we owned 62% of the outstanding shares of Forestar Group Inc. (Forestar), a publicly traded
residential lot development company listed on the NYSE under the ticker symbol “FOR.” Forestar operates across many of our
homebuilding operating markets and is a key part of our homebuilding strategy to maintain relationships with land developers and
to control a large portion of our land and lot position through land purchase contracts. For the year ended September 30, 2024,
Forestar sold 15,068 lots to homebuilders, including 13,267 lots sold to D.R. Horton.
Our financial services operations provide mortgage financing and title agency services to homebuyers in many of our
homebuilding markets. DHI Mortgage, our wholly-owned subsidiary, provides mortgage financing services primarily to our
homebuyers and sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers after
origination. For the year ended September 30, 2024, DHI Mortgage originated or brokered 70,693 mortgage loans. Our wholly
owned subsidiary title companies serve as title insurance agents by providing title insurance policies, examination, underwriting
and closing services primarily to our homebuilding customers.
In addition to our homebuilding, rental, Forestar and financial services operations, we engage in other business activities
through our subsidiaries. We conduct insurance-related operations, own water rights and other water-related assets and own non
residential real estate including ranch land and improvements. The results of these operations are immaterial for separate reporting
and therefore are grouped together and presented as other.
1

Available Information
We make available, as soon as reasonably practicable, on our website, www.drhorton.com, all of our reports filed with or
furnished to the Securities and Exchange Commission (SEC). These reports can be found on the “Investor Relations” section of our
website under “Financial Information” and include our annual and quarterly reports on Form 10-K and 10-Q, current reports on
Form 8-K, beneficial ownership reports on Forms 3, 4, and 5, proxy statements and amendments to such reports. Our SEC filings
are also available to the public on the SEC’s website at www.sec.gov. In addition to our SEC filings, our corporate governance
documents, including our Code of Ethical Conduct for the Chief Executive Officer, Chief Financial Officer and senior financial
officers, are available on the “Investor Relations” section of our website under “ESG.” Our stockholders may also obtain these
documents in paper format free of charge upon request made to our Investor Relations department.
Our principal executive offices are located at 1341 Horton Circle, Arlington, Texas 76011, and our telephone number is
(817) 390-8200. Information on or linked to our website is not incorporated by reference into this annual report on Form 10-K
unless expressly noted.
OPERATING STRUCTURE AND PROCESSES
Following is an overview of our company’s operating structure and the significant processes that support our business
controls, strategies and performance.
Homebuilding Markets
Our homebuilding business operates in 125 markets across 36 states, which provides us with geographic diversification in our
homebuilding inventory investments and our sources of revenues and earnings. We believe our geographic diversification lowers
our operational risks by mitigating the effects of local and regional economic cycles, and it also enhances our earnings potential by
providing more diverse opportunities to invest in our business.
2

We conduct our homebuilding operations in the geographic regions, states and markets listed below. Our homebuilding
operating divisions are aggregated into six reporting segments, also referred to as reporting regions, which comprise the markets
below. Our financial statements and the notes thereto contain additional information regarding segment performance.
State
Reporting Region/Market

Northwest Region
Colorado
Colorado Springs
Denver

Fort Collins

Oregon
Bend
Eugene/Springfield
Medford

Portland/Salem
Utah
Salt Lake City
St. George

Washington
Bremerton

Central Washington
Kennewick/Pasco/Richland

Seattle/Tacoma/Everett/Olympia
Spokane
Vancouver

Southwest Region
Arizona
Phoenix

Tucson
California
Bakersfield

Bay Area
Fresno/Tulare
Los Angeles County
Modesto/Merced/Stockton

Redding/Chico/Yuba City
Riverside County

Sacramento
San Bernardino County
Hawaii
Oahu
Nevada
Las Vegas
Reno
New Mexico Albuquerque
Santa Fe
South Central Region
Arkansas
Little Rock
Northwest Arkansas

Oklahoma
Oklahoma City
Tulsa
Texas
Abilene
Austin
Beaumont
Bryan/College Station

Corpus Christi
Dallas

East Texas

Fort Worth

Houston

Killeen/Temple/Waco
Lubbock
Midland/Odessa
New Braunfels/San Marcos
San Antonio
State
Alabama
Florida
Louisiana
Mississippi
Georgia
North Carolina
South Carolina
Tennessee
Reporting Region/Market
Southeast Region
Baldwin County
Birmingham

Huntsville
Mobile
Montgomery

Tuscaloosa

Fort Myers/Naples
Gainesville
Jacksonville
Lakeland
Melbourne/Vero Beach
Miami/Fort Lauderdale

Ocala

Orlando
Panama City
Pensacola
Port St. Lucie
Tallahassee

Tampa/Sarasota
Volusia County

Baton Rouge
Lake Charles/Lafayette
Gulf Coast

Hattiesburg
Jackson

East Region
Atlanta
Augusta
Central Georgia
Savannah
Valdosta
Asheville
Charlotte
Greensboro/Winston-Salem
New Bern/Greenville
Raleigh/Durham/Fayetteville
Wilmington
Charleston
Columbia
Greenville/Spartanburg
Hilton Head
Myrtle Beach
Chattanooga
Knoxville
Memphis
Nashville
Northeast Tennessee
State
Reporting Region/Market
North Region
Delaware
Northern Delaware
Southern Delaware
Illinois
Chicago
Indiana
Fort Wayne
Indianapolis
Northwest Indiana
Iowa
Des Moines
Iowa City/Cedar Rapids
Kansas/Missouri Kansas City
Kentucky
Louisville
Maryland
Baltimore
Eastern Maryland
Suburban Washington, D.C.
Western Maryland
Minnesota
Minneapolis/St. Paul
Nebraska
Omaha
New Jersey
Northern New Jersey
Southern New Jersey
Ohio
Cincinnati/Dayton
Columbus
Pennsylvania
Central Pennsylvania
Philadelphia
Pittsburgh
Virginia
Northern Virginia
Richmond
Virginia Beach/Williamsburg
Western Virginia
West Virginia
Eastern West Virginia
Northern West Virginia
Wisconsin
Southeast Wisconsin
3

When evaluating new or existing homebuilding markets for purposes of capital allocation, we consider local, market-specific
factors, including among others:
•
Economic conditions;
•
Employment levels and job growth;
•
Income level of potential homebuyers;
•
Local housing affordability and typical mortgage products utilized;
•
Market for homes at our targeted price points;
•
Availability of land and lots in desirable locations on acceptable terms;
•
Land entitlement and development processes;
•
Availability of qualified subcontractors;
•
New and secondary home sales activity;
•
Competition;
•
Prevailing housing products, features, cost and pricing; and
•
Performance capabilities of our local management team.
Economies of Scale
We are the largest homebuilding company in the United States as measured by number of homes closed in fiscal 2024, and
we are also one of the largest builders in most of the markets in which we operate. We believe that our national, regional and local
scale of operations provides us with benefits that may not be available to the same degree to some other smaller homebuilders,
such as:
•
Greater access to and lower cost of capital due to our balance sheet strength and our lending and capital markets
relationships;
•
Volume discounts and rebates from national, regional and local materials suppliers and lower labor rates from certain
subcontractors; and
•
Enhanced leverage of our general and administrative activities, which allows us flexibility to adjust to changes in
market conditions and compete effectively across our markets.
Decentralized Homebuilding Operations
We view homebuilding as a local business; therefore, most of our direct homebuilding activities are decentralized to provide
flexibility to our local managers in making operational decisions. We believe that our local management teams, who are familiar
with local market conditions, have the best information to make many decisions regarding their operations. At September 30, 2024,
we had 88 separate homebuilding operating divisions, many of which operate in more than one market area. Generally, each
operating division consists of a division president; a controller and accounting personnel; land entitlement, acquisition and
development personnel; a sales manager and sales and marketing personnel; a construction manager and construction
superintendents; customer service personnel; a purchasing manager and office staff. Our division presidents receive performance
based compensation if they achieve targeted financial and operating metrics related to their operating divisions. Following is a
summary of our homebuilding activities that are decentralized in our local operating divisions and the control and oversight
functions that are centralized in our regional and corporate offices.
4

Operating Division Responsibilities
Each homebuilding operating division is responsible for:
•
Site selection, which involves
— A feasibility study;
— Soil and environmental reviews;
— Review of existing zoning and other governmental requirements;
— Review of the need for and extent of offsite work required to obtain project entitlements; and
— Financial analysis of the potential project;
•
Negotiating lot purchase, land acquisition and related contracts;
•
Obtaining all necessary land development and home construction approvals;
•
Selecting subcontractors and ensuring their work meets our contracted scopes;
•
Selecting building and architectural plans;
•
Planning and managing home construction schedules;
•
Determining the pricing for each house plan and options in a given community;
•
Developing and implementing local marketing and sales plans;
•
Coordinating all interactions with customers and real estate brokers during the sales, construction and home closing
processes; and
•
Ensuring the quality and timeliness of post-closing service and warranty repairs provided to customers.
Centralized Controls
We centralize many important risk elements of our homebuilding business through our regional and corporate offices. We
have separate homebuilding regional offices, which generally consist of a region president, a chief financial officer, legal counsel
and other operational and office support staff. Each of our region presidents and their management teams are responsible for
oversight of the operations of a number of homebuilding operating divisions, including:
•
Review and approval of division business plans and budgets;
•
Review and approval of all land and lot acquisition contracts;
•
Review of all business and financial analysis for potential land and lot inventory investments;
•
Oversight of land and home inventory levels;
•
Monitoring division financial and operating performance; and
•
Review of major personnel decisions and division incentive compensation plans.
5

Our corporate executives and corporate office departments are responsible for establishing our operational policies and
internal control standards and for monitoring compliance with established policies and controls throughout our operations. The
corporate office also has primary responsibility for direct management of certain key risk elements and initiatives through the
following centralized functions:
•
Financing;
•
Cash management;
•
Allocation of capital;
•
Issuance and monitoring of inventory investment guidelines;
•
Approval and funding of land and lot acquisitions;
•
Monitoring and analysis of profitability, returns, costs and inventory levels;
•
Risk and litigation management;
•
Environmental assessments of land and lot acquisitions;
•
Technology systems to support management of operations, marketing and financial information, including preventing,
monitoring and reporting of cybersecurity issues;
•
Accounting and management reporting;
•
Income taxes;
•
Internal audit;
•
Public reporting and investor and media relations;
•
Administration of payroll and employee benefits;
•
Negotiation of national purchasing contracts;
•
Administration, reporting and monitoring of customer surveys and resolutions of issues; and
•
Approval of major personnel decisions and management incentive compensation plans.
Land/Lot Acquisition and Inventory Management
We acquire land for use in our operations after we have completed due diligence and generally after we have obtained the
rights (known as entitlements) to begin development or construction work resulting in an acceptable number of residential lots.
Before we acquire lots or tracts of land, we complete a feasibility study, which includes soil tests, independent environmental
studies, other engineering work and financial analysis. We also evaluate the status of necessary zoning and other governmental
entitlements required to develop and use the property for home construction.
We also enter into land/lot contracts, in which we obtain the right, but generally not the obligation, to buy land or lots at
predetermined prices on a defined schedule commensurate with anticipated home closings or planned development. These
contracts generally are non-recourse, which limits our financial exposure to our earnest money deposited into escrow under the
terms of the contract and any pre-acquisition due diligence costs we incur. This enables us to control land and lot positions with
limited capital investment, which substantially reduces the risks associated with land ownership.
6

We attempt to mitigate our exposure to real estate inventory risks by:
•
Controlling our level of inventory investment and managing our supply of land/lots owned and controlled through
purchase contracts to match the expected housing demand in each of our operating markets;
•
Monitoring local market and demographic trends, housing preferences and related economic developments, including
the identification of desirable housing submarkets based on the quality of local schools, new job opportunities, local
growth initiatives and personal income trends;
•
Utilizing land/lot purchase contracts and seeking to acquire developed lots which are substantially ready for home
construction, where possible; and
•
Monitoring and managing the number of speculative homes (homes under construction without an executed sales
contract) built in each subdivision.
Land Development and Home Construction
Substantially all of our land development and home construction work is performed by subcontractors. Subcontractors
typically are selected after a competitive bidding process and are retained for a specific subdivision or series of house plans
pursuant to a contract that obligates the subcontractor to complete the scope of work at an agreed-upon price. We employ land
development and construction personnel to monitor construction activities, participate in major building decisions, coordinate the
activities of subcontractors and suppliers, review the work of subcontractors for quality and cost controls and monitor compliance
with zoning and building codes. In addition, our construction personnel interact with our homebuyers during the construction
process and instruct buyers on post-closing home maintenance.
Our home designs are selected or prepared in each of our markets to appeal to local homebuyers’ expectations for
affordability, home size and features, and our local management teams adjust product offerings to meet buyer demand as
necessary. In some communities, we offer optional interior and exterior features to homebuyers for an additional charge.
We typically do not maintain significant inventories of land development or construction materials, except for work in
progress materials for active development projects and homes under construction. Generally, the construction materials used in our
operations have been readily available from numerous sources, and we have contracts exceeding one year with certain suppliers of
building materials that are cancelable at our option. Construction time for our homes depends on the availability of labor, materials
and supplies, the weather, the size of the home and other factors. We completed the construction of most homes in two to five
months in fiscal 2024.
We are subject to governmental regulations that affect our land development and construction operations. We frequently
experience delays in receiving the necessary approvals from municipalities or other government agencies, which often delays our
anticipated development and construction activities.
Cost Controls
We control construction costs by designing our homes efficiently, utilizing common house plans as consistently as possible
and obtaining competitive bids for construction materials and labor. We also negotiate pricing from our subcontractors and
suppliers based on the volume of services and products we purchase on a local, regional and national basis. We monitor our land
development expenditures and construction costs versus budgets for each house and community, and we review our inventory
levels, margins, expenses, profitability and returns for each operating market compared to both its business plan and our
performance expectations.
We control overhead costs by centralizing certain accounting and administrative functions, monitoring staffing and
compensation levels and by applying technology to business processes to improve productivity where practical. We review other
general and administrative costs to identify efficiencies and savings opportunities in our operating divisions and our regional and
corporate offices. We also direct most of our promotional activities toward digital marketing initiatives and local real estate
brokers, which we believe are efficient uses of our marketing expenditures.
7

Marketing and Sales
We primarily use the D.R. Horton brand name to market and sell our homes. We offer various floor plans and product types
with a primary focus on the first time and first time move-up homebuyer, which account for the majority of our home closings. We
also offer entry-level homes for buyers focused on affordability, higher-end move-up and luxury homes and homes for active adult
buyers seeking a low-maintenance lifestyle.
We market and sell our homes primarily through commissioned employees, and the majority of our home closings also
involve an independent real estate broker. We typically conduct home sales from sales offices located in furnished model homes in
each subdivision, and we generally do not offer our model homes for sale until the completion of a subdivision. Our sales
personnel assist prospective homebuyers by providing floor plans and pricing information, demonstrating the features and layouts
of our homes and assisting with the selection of options, if available. We train and inform our sales personnel regarding
construction schedules and marketing and advertising plans. As market conditions warrant, we may provide potential homebuyers
with a variety of incentives to be competitive in a particular market or to attain our targeted sales pace.
We market our homes and communities to prospective homebuyers and real estate brokers digitally, through email, search
engine marketing, social media and our company website and other real estate websites. We also use billboards, radio, television
and print media and advertising locally as necessary. We attempt to position our subdivisions in locations that are desirable to
potential homebuyers and convenient to or visible from local traffic patterns. Model homes play an important role in our marketing
efforts, and we strive to create an attractive atmosphere in our model homes.
We also build speculative homes in essentially all of our communities, which allow us to compete effectively with existing
homes available in the market and improve our returns. These homes enhance our marketing and sales efforts to prospective
homebuyers who are renters or who are relocating to these markets and require a home within a short time frame, as well as to
independent brokers who represent these homebuyers. We determine our speculative homes strategy in each market based on local
market factors, such as new job growth and relocations, housing demand and supply, seasonality, current sales contract
cancellation trends and our past experience in the market. We attempt to maintain a level of speculative home inventory in each
community based on our current and planned sales pace, and we monitor and adjust speculative home inventory on an ongoing
basis.
Sales Contracts and Backlog
Our sales contracts require an earnest money deposit which varies in amount across our markets and communities.
Additionally, customers are generally required to pay additional deposits if they select options or upgrade features for their homes.
Our sales contracts include a financing contingency which permits customers to cancel and receive a refund of their deposit if they
cannot obtain mortgage financing at prevailing or specified interest rates within a defined period. Our contracts may include other
contingencies, such as the sale of the customer’s existing home. We either retain or refund customer deposits on cancelled sales
contracts, depending upon the applicable provisions of the contract or other circumstances.
Sales order backlog represents homes under contract but not yet closed at the end of the period. At September 30, 2024, the
value of our backlog of sales orders was $4.8 billion (12,180 homes), a decrease of 19% from $5.9 billion (15,197 homes) at
September 30, 2023. The average sales price of homes in backlog was $391,700 at September 30, 2024, up from the $389,800
average at September 30, 2023. Many of the contracts in our sales order backlog are subject to contingencies, such as those
described above, which can result in cancellations. As a percentage of gross sales orders, cancellations of sales contracts were 18%
in fiscal 2024 compared to 20% in fiscal 2023.
The length of time between the signing of a sales contract for a home and delivery of the home to the buyer (closing) is
generally from one to four months; therefore, substantially all of the homes in our sales backlog at September 30, 2024 are
scheduled to close in fiscal 2025.
8

Customer Service and Quality Control
Our homebuilding operating divisions are responsible for pre-closing quality control inspections and responding to
customers’ post-closing needs. We believe that a prompt and courteous response to homebuyers’ needs during and after
construction reduces post-closing repair costs, enhances our reputation for quality and service and ultimately leads to repeat and
referral business from the real estate community and homebuyers. We typically provide our homebuyers with a ten-year limited
warranty for major defects in structural elements such as framing components and foundation systems, a two-year limited warranty
on major mechanical systems and a one-year limited warranty on other construction components. The subcontractors who perform
the actual construction also provide us with warranties on workmanship and are expected to respond to us and the homeowner in a
timely manner. In addition, some of our suppliers provide manufacturer’s warranties on specified products installed in the home.
Rental Properties
Our single-family rental operations construct and lease single-family homes within a community and then generally market
each community for a bulk sale of rental homes. We sold 3,970 single-family rental homes in fiscal 2024 compared to 6,175 homes
in fiscal 2023. Our multi-family rental operations develop, construct, lease and sell residential rental properties. We primarily focus
on constructing garden style apartment communities in high growth suburban markets. We sold 2,202 multi-family rental units in
fiscal 2024 compared to 2,112 units in fiscal 2023.
Forestar Residential Lot Development Operations
We own approximately 62% of the outstanding shares of Forestar, a publicly traded residential lot development company
with operations in 59 markets across 24 states as of September 30, 2024. Forestar is a key part of our homebuilding strategy to
maintain relationships with land developers and to control a large portion of our land and lot position through land purchase
contracts. Forestar is investing in land acquisition and development to expand its residential lot development business across a
geographically diversified national platform and consolidate market share in the fragmented U.S. lot development industry. Our
homebuilding operations acquire finished lots from Forestar in accordance with the master supply agreement between the two
companies. A shared services agreement is in place whereby we provide Forestar certain administrative, compliance, operational
and procurement services. As the controlling shareholder, we have significant influence in guiding the strategic direction and
operations of Forestar.
Customer Mortgage Financing
We provide mortgage financing services primarily to purchasers of our homes in the majority of our homebuilding markets
through DHI Mortgage, our wholly-owned subsidiary. DHI Mortgage assists in the sales transaction by coordinating the mortgage
application, mortgage commitment and home closing processes to facilitate a timely and efficient experience for our homebuyers.
During the year ended September 30, 2024, DHI Mortgage provided mortgage financing services for 78% of the homes closed by
our homebuilding operations, and those loans accounted for virtually all of DHI Mortgage’s total loan volume. Our homebuilding
divisions may also work with additional mortgage lenders that offer a range of mortgage financing programs to our homebuyers.
To limit the risks associated with our mortgage operations, DHI Mortgage originates loan products that we believe can be
sold to third-party purchasers of mortgage loans, the majority of which are eligible for sale to Federal National Mortgage
Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or Government National Mortgage
Association (Ginnie Mae). DHI Mortgage sells substantially all of the loans and the related servicing rights to third-party
purchasers after origination with limited recourse provisions. DHI Mortgage centralizes most of its control and oversight functions,
including those related to loan underwriting, quality control, regulatory compliance, secondary marketing of loans, hedging
activities, accounting and financial reporting.
Title Services
Through our subsidiary title companies, we serve as a title insurance agent in many of our homebuilding markets by
providing title insurance policies, examination, underwriting and closing services primarily to our homebuilding customers.
9

Human Capital Resources
People and Culture
As of September 30, 2024, we employed 14,766 people, of whom 10,071 work in our homebuilding operations, 3,149 in our
financial services operations, 596 at our corporate office, 505 in our rental operations, 393 at our Forestar subsidiary and 52 in our
other businesses. Of our homebuilding employees, 3,897 are involved in construction, 2,779 are sales and marketing personnel and
3,395 are office personnel.
We believe the people who work for our company are our most important resources and are critical to our continued success.
We focus significant attention toward attracting and retaining talented and experienced individuals to manage and support our
operations. Our people are expected to exhibit and promote honest, ethical and respectful conduct in the workplace. All of our
employees must certify annually to their understanding of and adhere to a code of conduct that sets standards for appropriate
behavior and includes required internal training on preventing, identifying, reporting and stopping any type of discrimination.
Recruitment, Development and Retention
We are committed to hiring, developing and supporting an energetic, diverse workforce and maintaining a productive,
positive and inclusive workplace. We believe diversity in the workplace produces unique perspectives and fresh ideas and helps us
better serve our customers. We have an active recruiting team that partners with college campuses and external organizations to
identify strong new hires and experienced professionals. Our paid internship program provides college students and recent
graduates an opportunity to work alongside some of the most experienced professionals in the homebuilding industry. Our
management team also supports a culture of developing future leaders from our existing workforce, enabling us to promote from
within for many leadership positions. We believe this provides long-term focus and continuity to our operations while also
providing opportunities for the growth and advancement of our employees. During fiscal 2024, we held specialized trainings for
employees within key business functions of our homebuilding operations, such as purchasing, construction, sales and financial
management, as well as our Leadership Development Program, which provides internal training for future leaders across all of our
operations. During the fiscal year, 17 employees were placed into a new homebuilding market leadership position, and of those
100% were promoted from within the organization.
The long-term retention of our employees provides us with an experienced, cohesive workforce, which has been vital to
achieving our goals. Our focus on retention is evident in the length of service of our executive, regional and divisional management
teams. The average tenure of our executive team is 27 years, our homebuilding region presidents and vice presidents is 20 years
and our homebuilding division presidents and city managers is 13 years. Our Board of Directors (Board) is actively involved in our
company’s executive leadership succession planning and is equally committed to our culture of promoting rising talent from
within.
Compensation and Benefits
We believe our compensation package and benefits are competitive with others in our industry. In addition to base pay,
eligible employees may participate in our incentive bonus and stock compensation plans, which align their compensation to the
interests of our shareholders. A substantial portion of our executive and senior operating leadership’s total compensation is
variable, at-risk pay based on our company’s performance. We also offer our employees a broad range of benefits, including paid
vacation, holidays, sick time and parental leave; medical, dental and vision healthcare insurance; and life insurance and disability
coverage. Additional benefits offered include a 401(k) savings plan, employee stock purchase plan and access to professional
resources to support employees with their mental and physical health, financial planning, identity theft protection and legal needs.
We are committed to supporting our employees in their health, wellness and financial planning goals. We host events and
challenges, both virtually and in person, to encourage our employees to stay active and healthy. Additional information about our
compensation and employee benefit plans is included in Note K to the accompanying financial statements.
10

Workplace Safety and Wellness
The safety and well-being of our employees is our first priority. We take workplace safety seriously at our construction sites
and in our offices. We provide third-party training for our field personnel to become certified by the Occupational Safety and
Health Administration. We also provide our teams with many safety resources, including safety checklists, policies, procedures and
best practices, and we communicate with all of our employees through a monthly safety newsletter to inform and reinforce our
commitment to and concern for their well-being. Additionally, because substantially all of our land development and home
construction work is performed by subcontractors, we require that our subcontractors maintain safety programs as well.
Additional information regarding human capital is available in the “ESG” section of our Investor Relations website at
investor.drhorton.com.
Environmental, Social & Governance (ESG)
We publish consistent and relevant ESG information on an annual basis. Our most recent ESG report published in January
2024 includes data aligned with the homebuilders industry reporting standards prepared by the Sustainability Accounting
Standards Board, now a part of the International Sustainability Standards Board. Our ESG report is not considered part of or
incorporated by reference in this Annual Report. The report also covers topics that are of significant importance to our company
and our stakeholders, including, but not limited to:
•
Risk management;
•
Board oversight, ethics, diversity and independence;
•
Home affordability and community impact;
•
Home energy efficiency, quality and safety;
•
Workplace health and safety;
•
Talent retention and employee well-being;
•
Diversity, equity and inclusion;
•
Responsible land development;
•
Water management and efficiency; and
•
Greenhouse gas emissions.
Business Acquisitions
We routinely evaluate opportunities to profitably expand our operations, including potential acquisitions of other
homebuilding or related businesses. Acquisitions of homebuilding and related businesses usually provide us with immediate land
and home inventories and control of additional land and lot positions through purchase contracts. Also, employees of acquired
businesses generally have specialized knowledge of local market conditions, including existing relationships with municipalities,
land owners, developers, subcontractors and suppliers. These inventory positions and local market knowledge and relationships
could take us several years to develop through our own efforts. We seek to limit the risks associated with acquiring other
companies by conducting extensive operational, financial and legal due diligence on each acquisition and by performing financial
analysis to determine that each acquisition is expected to have a positive impact on our earnings, returns and strategic position.
Competition
We operate as a provider of residential housing in both the for sale and rental markets, which are highly competitive. We
compete not only for homebuyers and renters, but also for desirable properties, raw materials, skilled labor and financing. We
compete with local, regional and national homebuilding and rental companies and also with existing home sales and rental
properties. We compete on the basis of price, location, quality and design of our homes and on mortgage financing terms.
11

The competitors to our financial services businesses include other mortgage lenders and title companies, including national,
regional and local mortgage banks and other financial institutions. Some of these competitors are subject to fewer governmental
regulations and have greater access to capital than we do, may operate with different lending criteria and/or may offer a broader or
more attractive array of financing and other products and services to potential customers. We strive to provide flexible, fairly
priced financing alternatives subject to applicable regulations.
Our businesses compete with other companies across all industries to attract and retain highly skilled and experienced
employees, managers and executives. Competition for the services of these individuals increases as business conditions improve in
the industries in which we operate and in the general economy.
Governmental Regulations and Environmental Matters
We operate in industries that are subject to extensive and complex regulations. We and the subcontractors we use must
comply with many federal, state and local laws and regulations. These include zoning, density and development requirements and
building, environmental, advertising, labor and real estate sales rules and regulations. These regulations and requirements affect
substantially all aspects of our land development and home design, construction and sales processes in varying degrees across our
markets. Our homes are inspected by local authorities where required, and homes eligible for insurance or guarantees provided by
the Federal Housing Administration (FHA) and the U.S. Department of Veteran Affairs (VA) are subject to inspection by them.
These regulations often provide broad discretion to the administering governmental authorities. In addition, our new housing
developments may be subject to various assessments for schools, parks, streets, utilities and other public improvements.
Our construction and land development activities are also subject to an extensive array of local, state and federal statutes,
ordinances, rules and regulations concerning protection of health, safety and the environment. The particular compliance
requirements for each site vary greatly according to location, environmental condition and the present and former uses of the site
and adjoining properties. We believe that we are in compliance in all material respects with existing environmental regulations
applicable to our business. Additionally, our compliance with such regulations has not had, nor is it expected to have, a material
adverse effect on our consolidated financial position, results of operations or cash flows. However, changes in regulations, such as
the Minimum Energy Standards recently adopted by the U.S. Department of Housing and Urban Development and the U.S.
Department of Agriculture (USDA), the climate-related disclosure legislation recently enacted by the State of California and the
climate-related disclosure rules adopted by the SEC, which are currently under judicial review, could increase our costs to comply
with such regulations, as discussed in “Item 1A. Risk Factors.”
Our mortgage company must comply with extensive state and federal laws and regulations, which are administered by
numerous agencies, including the Consumer Financial Protection Bureau, Federal Housing Finance Agency, U.S. Department of
Housing and Urban Development, FHA, VA, USDA, Fannie Mae, Freddie Mac and Ginnie Mae. These laws and regulations
include many compliance requirements, including licensing, consumer disclosures, fair lending and real estate settlement
procedures. As a result, our operations are subject to regular, extensive examinations by the applicable agencies.
Seasonality
Although significant changes in market conditions have impacted our seasonal patterns in the past and could do so again in
the future, we generally close more homes in our homebuilding operations and generate greater revenues and pre-tax income in the
third and fourth quarters of our fiscal year. The seasonal nature of our business can also cause significant variations in the working
capital requirements for our operations. As a result of seasonal activity, our quarterly results of operations and financial position at
the end of a particular fiscal quarter are not necessarily representative of the balance of our fiscal year.
12

ITEM 1A.
RISK FACTORS
Discussion of our business and operations included in this annual report on Form 10-K should be read together
with the risk factors set forth below. They describe various risks and uncertainties we are or may become subject to,
many of which are difficult to predict or beyond our control. Although the risks are organized and described separately,
many of the risks are interrelated. These risks and uncertainties, together with other factors described elsewhere in this
report, have the potential to affect our business, financial condition, results of operations, cash flows, strategies or
prospects in a material and adverse manner.
Risks Related to our Business Operations
Our homebuilding, rental and land development operations are cyclical and affected by changes in economic, real
estate or other conditions that could adversely affect our business and financial results.
Our homebuilding, rental and land development operations are cyclical and are significantly affected by changes in
general and local economic and real estate conditions, such as:
•
employment levels;
•
consumer confidence and spending;
•
housing demand;
•
availability of financing for homebuyers;
•
availability of financing for companies that purchase our rental properties;
•
interest rates;
•
inflation;
•
availability and prices of new homes and existing homes for sale and availability and market values of rental
properties; and
•
demographic trends.
Adverse changes in these general and local economic conditions or deterioration in the broader economy may
negatively impact our business and financial results and increase the risk for asset impairments and write-offs. Changes
in these economic conditions may affect some of our regions or markets more than others. If adverse conditions affect
our larger markets, they could have a proportionately greater impact on us than on some other companies.
The federal government’s fiscal policies and the Federal Reserve’s monetary policies may negatively impact the
financial markets and consumer confidence and could hurt the U.S. economy and the housing and rental markets and in
turn, could adversely affect the operating results of our businesses. In response to increased inflation, the Federal
Reserve has raised interest rates significantly in recent years, which, notwithstanding the recent reduction, has resulted in
higher mortgage interest rates. The increase in mortgage interest rates has reduced the affordability of our homes and has
required us to use pricing adjustments and incentives to adapt to current market conditions. Prolonged periods of
elevated mortgage interest rates or further increases in mortgage interest rates could have an adverse impact on our
business and financial results.
Deployments of U.S. military personnel to foreign regions, terrorist attacks, other acts of violence or threats to
national security and any corresponding response by the United States or others, domestic or international instability or
social or political unrest may cause an economic slowdown in the markets where we operate, which could adversely
affect our business.
If we experience any of the foregoing, potential customers may be less willing or able to buy our homes or our
rental properties. Additionally, cancellations of home sales contracts in backlog may increase if homebuyers do not
honor their contracts due to any of the factors discussed above. Our pricing and product strategies may also be limited by
market conditions. We may be unable to change the pricing or mix of our home or rental offerings, reduce the costs of
the homes or properties we build, offer more affordable homes or rental properties or satisfactorily address changing
market conditions in other ways without adversely affecting our profits and returns.
13

Our financial services business is closely related to our homebuilding business, as it originates mortgage loans
principally to purchasers of the homes we build. A decrease in the demand for our homes because of the foregoing
matters will also adversely affect the financial results of this segment of our business. An increase in the default rate on
the mortgages we originate may adversely affect our ability to sell the mortgages or the pricing we receive upon the sale
of mortgages or may increase our recourse obligations for previous originations. We may be responsible for losses
associated with mortgage loans originated and sold to third-party purchasers in the event of errors or omissions relating
to certain representations and warranties that the loans sold meet certain requirements, including representations as to
underwriting standards, the type of collateral, the existence of primary mortgage insurance, and the validity of certain
borrower representations in the connection with the loan, and we may be required to repurchase certain of those
mortgage loans or provide indemnification. Repurchased mortgage loans and/or the settlement of claims associated with
such loans could adversely affect our business and financial results. We establish reserves for estimated losses and future
repurchase obligations for mortgage loans we have sold; however, actual future obligations related to these mortgages
could differ significantly from our current estimated amounts. Additionally, we may retain mortgage servicing rights on
our originations. As servicer for these loans, we may incur losses by having to advance payments to the mortgage-backed
securities (MBS) bondholders to the extent there are insufficient collections to satisfy the required principal and interest
remittances of the underlying MBS.
Adverse developments affecting the capital markets and financial institutions could limit our ability to access capital,
increase our cost of capital and impact our liquidity and capital resources.
During past economic and housing downturns, the credit markets constricted and reduced some sources of liquidity
that were previously available to us. Consequently, we relied principally on our cash on hand to meet our working capital
needs and repay outstanding indebtedness during those times. Adverse developments affecting the capital markets and
financial institutions, or concerns or rumors about such events, may limit our ability to access the public debt markets or
obtain bank financing or may increase our cost of capital. The failure of a bank or other adverse conditions impacting
financial institutions where we have cash balances could adversely impact our liquidity and capital resources.
Our homebuilding operations utilize a $2.19 billion senior unsecured revolving credit facility with an uncommitted
accordion feature that could increase the size of the facility to $3.0 billion, subject to certain conditions and availability
of additional bank commitments. Our homebuilding revolving credit facility also provides for the issuance of letters of
credit with a sublimit equal to 100% of the total revolving credit commitments. The maturity date of the facility is
October 28, 2027. Our homebuilding revolving credit facility and our homebuilding senior unsecured notes are
guaranteed by D.R. Horton, Inc.’s significant wholly-owned homebuilding subsidiaries.
Forestar has a $410 million senior unsecured revolving credit facility with an uncommitted accordion feature that
could increase the size of the facility to $600 million, subject to certain conditions and availability of additional bank
commitments. The Forestar revolving credit facility also provides for the issuance of letters of credit with a sublimit
equal to the greater of $100 million and 50% of the total revolving credit commitments. The maturity date of the facility
is October 28, 2026. The Forestar revolving credit facility is guaranteed by Forestar’s wholly-owned subsidiaries that are
not immaterial subsidiaries and have not been designated as unrestricted subsidiaries. The Forestar revolving credit
facility is not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding,
rental or financial services operations.
Our rental subsidiary, DRH Rental, has a $1.05 billion senior unsecured revolving credit facility with an
uncommitted accordion feature that could increase the size of the facility to $2.0 billion, subject to certain conditions and
availability of additional bank commitments. Availability under the rental revolving credit facility is subject to a
borrowing base calculation based on the book value of DRH Rental’s real estate assets and unrestricted cash. The rental
revolving credit facility also provides for the issuance of letters of credit with a sublimit equal to the greater of
$100 million and 50% of the total revolving credit commitments. The maturity date of the facility is October 10, 2027.
The rental revolving credit facility is guaranteed by DRH Rental’s wholly-owned subsidiaries that are not immaterial
subsidiaries and have not been designated as unrestricted subsidiaries. The rental revolving credit facility is not
guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, Forestar or
financial services operations.
14

Our mortgage subsidiary, DHI Mortgage, utilizes a $1.6 billion committed mortgage repurchase facility to finance
the majority of the loans it originates. Adverse changes in market conditions could make the renewal of this facility more
difficult or could result in an increase in the cost of this facility or a decrease in the committed amounts. Such changes
affecting our mortgage repurchase facility may also make it more difficult or costly to sell the mortgages that we
originate. The maturity date of the committed mortgage repurchase facility is May 9, 2025. DHI Mortgage also utilizes
an uncommitted mortgage repurchase facility, which had a capacity of $500 million at September 30, 2024. The
mortgage repurchase facilities are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt
of our homebuilding, rental or Forestar operations.
We regularly assess our projected capital requirements to fund growth in our business, repay debt obligations, pay
dividends, repurchase our common stock under our $4.0 billion stock repurchase authorization and support other general
corporate and operational needs, and we regularly evaluate our opportunities to raise additional capital. D.R. Horton, Inc.
has an automatically effective universal shelf registration statement filed with the SEC in July 2024, registering debt and
equity securities that may be issued from time to time in amounts to be determined. Forestar also has an effective shelf
registration statement filed with the SEC in September 2024, registering $750 million of equity securities. As market
conditions permit, we may issue new debt or equity securities through the capital markets or obtain additional bank
financing to fund our projected capital requirements or provide additional liquidity. We believe that our existing cash
resources, together with the homebuilding, rental and Forestar revolving credit facilities, mortgage repurchase facilities
and ability to access the capital markets or obtain additional financing will provide sufficient liquidity to fund our near-
term working capital needs and debt obligations. Adverse changes in economic, homebuilding or capital market
conditions could negatively affect our business, liquidity and financial results, restrict our ability to obtain additional
capital or increase our costs of capital.
Reductions in the availability of mortgage financing provided by government agencies, changes in government
financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage
interest rates could decrease our buyers’ ability to obtain financing and adversely affect our business and financial
results.
The mortgage loans originated by our financial services operations are primarily eligible for sale to Fannie Mae,
Freddie Mac or Ginnie Mae and are typically sold to third-party purchasers. The secondary market for mortgage loans
continues to primarily desire securities backed by Fannie Mae, Freddie Mac or Ginnie Mae, and we believe the liquidity
these agencies provide to the mortgage industry is important to the housing market. Any significant change regarding the
long-term structure and viability of Fannie Mae and Freddie Mac could result in adjustments to the size of their loan
portfolios and to guidelines for their loan products. Additionally, a reduction in the availability of financing provided by
these institutions could adversely affect interest rates, mortgage availability and sales of new homes and mortgage loans.
During fiscal 2024, approximately 73% of our mortgage loans were sold directly to Fannie Mae, Freddie Mac or into
securities backed by Ginnie Mae, and 26% were sold to one other major financial entity. On an ongoing basis, we seek to
establish loan purchase arrangements with additional financial entities. If we are unable to sell mortgage loans to
purchasers on attractive terms, our ability to originate and sell mortgage loans at competitive prices could be limited,
which would negatively affect our profitability.
The FHA insures mortgage loans that generally have lower credit requirements and is an important source for
financing the sale of our homes. Changes, restrictions or significant premium increases in FHA programs in the future
may negatively affect the availability or affordability of FHA financing, which could adversely affect our ability to sell
homes.
Some of our customers may qualify for 100% financing through programs offered by the VA and the USDA and
certain other housing finance agencies. These programs are subject to changes in regulations, lending standards and
government funding levels. There can be no assurances that these programs or other programs will continue to be
available in our homebuilding markets or that they will be as attractive to our customers as the programs currently
offered, which could negatively affect our sales.
Mortgage interest rates have increased significantly in recent years, and market conditions and government actions
could cause mortgage rates to rise even further in the future. When interest rates increase, the cost of owning a home
increases, which reduces the number of potential homebuyers who can obtain mortgage financing and can result in a
decline in the demand for our homes.
15

The risks associated with our land, lot and rental inventory could adversely affect our business and financial results.
Inventory risks are substantial for our homebuilding, rental and Forestar businesses. There are risks inherent in
controlling, owning and developing land. If housing demand declines, we may not be able to sell homes or rental
properties profitably in some of our communities, and we may not be able to fully recover the costs of some of the land
and lots we own. Also, the values of our owned undeveloped land, lots and inventories may fluctuate significantly due to
changes in market conditions. As a result, our deposits for lots controlled through purchase contracts may be put at risk,
we may have to sell homes, rental properties or land for a lower profit margin or record inventory impairment charges on
our land and lots. A significant deterioration in economic or homebuilding industry conditions may result in substantial
inventory impairment charges.
We cannot make any assurances that our growth strategies, acquisitions, investments or other strategic initiatives will
be successful or will not expose us to additional risks or other negative consequences.
In recent years, we have primarily grown our business by increasing our investments in land, lot and home
inventories in our existing homebuilding markets. We have also expanded through investments in new product offerings,
new geographic markets and the growth of our rental property operations. Investments in land, lots, home inventories
and rental properties can expose us to risks of economic loss and asset impairments if housing conditions weaken or if
we are unsuccessful in implementing our growth strategies.
We have acquired the operations of several companies in recent years, and we may make strategic acquisitions of
or investments in other companies, operations or assets in the future. Such acquisitions and investments may have risks
similar to those related to land, lots and home inventories, but they may also expose us to additional risks or other
negative consequences. These transactions, or our other strategic initiatives, may not advance our business strategy,
provide a satisfactory return on our investment or provide other benefits we anticipate. Also, the integration of these
transactions may not be successful and may require significant time and resources, which may divert management’s
attention from other operations. Acquisitions and investments could also raise new compliance-related obligations or
expose us to material liabilities not discovered in the due diligence process that may lead to litigation. If these
transactions under-perform our expectations or are unsuccessful, we may incur significant expenses or write-offs of
inventory, other assets or intangible assets such as goodwill. Acquisitions and investments can result in dilution to
existing stockholders if we issue our common stock as consideration and can increase our debt levels or reduce our
liquidity if we purchase them with cash. The magnitude, timing and nature of any future acquisitions or investments will
depend on a number of factors, including our ability to identify suitable additional markets or acquisition candidates, the
negotiation of acceptable terms, our financial position and general economic and business conditions. We also may seek
to divest an investment or a business and may have difficulty selling such investment or business on acceptable terms in
a timely manner.
Our business and financial results could be adversely affected by significant inflation, higher interest rates or
deflation.
During the past three years, the economy has experienced significant inflationary pressures. Inflation can adversely
affect us by increasing costs of land, materials, labor and our cost of capital. In an effort to lower the rate of inflation, the
Federal Reserve raised interest rates significantly, which has resulted in higher mortgage interest rates. The increase in
mortgage interest rates has reduced the affordability of our homes and has required us to use pricing adjustments and
incentives to adapt to current market conditions, which result in lower gross margins. If inflation and mortgage interest
rates remain high or increase, housing affordability may be further impacted, which could reduce our profit margins and
have an adverse impact on our business and financial results.
Alternatively, a significant period of deflation could cause a decrease in overall spending and borrowing levels.
This could lead to deterioration in economic conditions, including an increase in the rate of unemployment. Deflation
could also cause the value of our inventories to decline or reduce the value of existing homes below the related mortgage
loan balance, which could potentially increase the supply of existing homes. These or other factors related to deflation
could have a negative impact on our business and financial results.
16

Supply shortages and other risks related to acquiring land, building materials and skilled labor and obtaining
regulatory approvals could increase our costs and delay deliveries.
The homebuilding and lot development industries have from time to time experienced significant difficulties that
can affect the cost or timing of construction, including:
•
difficulty in acquiring land suitable for residential building at affordable prices in locations where our
potential customers want to live;
•
delays in receiving the necessary approvals from municipalities or other government agencies;
•
shortages of qualified subcontractors;
•
reliance on local subcontractors, manufacturers, distributors and land developers who may be inadequately
capitalized;
•
shortages of materials; and
•
significant increases in the cost of materials, particularly increases in the price of lumber, drywall and cement,
which are significant components of home construction costs.
During the last few years, we experienced multiple disruptions in our supply chain, which resulted in shortages of
certain building materials and tightness in the labor market. This caused our construction cycle to lengthen and costs of
building materials to increase. We began to see improvements in our construction cycle time in fiscal 2023 and our cycle
times have recently normalized; however, if shortages and cost increases in building materials and tightness in the labor
market increase, our construction cycle time and profit margins could be adversely impacted.
In addition, tariffs, duties and/or trade restrictions imposed or increased on imported materials and goods that are
used in connection with the construction and delivery of our homes, including steel, aluminum and lumber, may raise our
costs for these items or for the products made with them. These factors may cause construction delays or cause us to
incur more costs building our homes.
Public health issues such as a major epidemic or pandemic could adversely affect our business and financial results.
The U.S. and other countries have experienced, and may experience in the future, outbreaks of contagious diseases
that affect public health and public perception of health risk. In the event of a widespread, prolonged, actual or perceived
outbreak of any contagious disease, such as COVID-19, our operations could be negatively impacted. Such events have
had, and could in the future have, an effect on our operations, including a reduction in customer traffic, a disruption in
our supply chain, tightness in the labor market or other factors, all of which could reduce demand for our homes. These
or other repercussions of a public health crisis that affect the global economy could have an adverse impact on our results
of operations and financial condition.
Our business and financial results could be adversely affected by weather conditions and natural disasters.
Physical risks, including weather conditions and natural disasters, such as hurricanes, tornadoes, earthquakes,
volcanic activity, droughts, floods, hailstorms, heavy or prolonged precipitation, wildfires and others, can harm our
business. Additionally, the physical impacts of climate change may cause these occurrences to increase in frequency,
severity and duration. Any such events can temporarily delay our development work, home construction and home
closings, unfavorably affect the cost or availability of materials or labor, damage homes under construction, lead to
changing consumer preferences and/or negatively impact demand for new homes in affected areas. We have experienced
temporary delays in production and short-term impacts on our sales and closings activity from weather events in recent
years. There have been no material lasting impacts on our business from these events or material permanent operational
challenges resulting from these events, but they could adversely affect our business in the future. The climates and
geology of many of the states in which we operate, including California, Florida, Texas and other coastal areas where we
have some of our larger operations and which have experienced recent natural disasters, present increased risks of
adverse weather or natural disasters.
17

Homebuilding is subject to home warranty and construction defect claims in the ordinary course of business that can
be significant.
We are subject to home warranty and construction defect claims arising in the ordinary course of our homebuilding
business. We rely on subcontractors to perform the actual construction of our homes, and in many cases, to select and
obtain construction materials. Despite our detailed specifications and monitoring of the construction process, our
subcontractors occasionally do not meet adequate quality standards in the construction of our homes. When we find these
issues, we repair them in accordance with our warranty obligations. We spend significant resources to repair items in
homes we have sold to fulfill the warranties we issued to our homebuyers. Additionally, we are subject to construction
defect claims which can be costly to defend and resolve in the legal system. Warranty and construction defect matters
can also result in negative publicity which can damage our reputation and adversely affect our ability to sell homes.
Based on the large number of homes we have sold over the years, our potential liabilities related to warranty and
construction defect claims are significant. Consequently, we have generally maintained product liability insurance each
year, and we seek to obtain indemnities and certificates of insurance from subcontractors covering claims related to their
workmanship and materials. We establish warranty and other reserves for the homes we sell based on historical
experience in our markets and our judgment of the qualitative risks associated with the types of homes built. Because of
the uncertainties inherent to these matters, we cannot provide assurance that our insurance coverage, our subcontractor
arrangements and our reserves will be adequate to address all of our future warranty and construction defect claims.
Contractual indemnities can be difficult to enforce, we may be responsible for applicable self-insured retentions and
some types of claims may not be covered by insurance or may exceed applicable coverage limits. Additionally, the
coverage offered by and the availability of product liability insurance for construction defects is limited and costly. We
have responded to increases in insurance costs and coverage limitations by self-insuring our risk in recent years and by
increasing our self-insured retentions and claim reserves. There can be no assurance that coverage will not be further
restricted or become more costly. If costs to resolve our future warranty and construction defect claims exceed our
estimates, our financial results and liquidity could be adversely affected.
A health and safety incident relating to our operations could be costly in terms of potential liability and reputational
damage.
Building and land development sites are inherently dangerous, and operating in this industry poses certain inherent
health and safety risks. Due to health and safety regulatory requirements and the number of homes we construct, health
and safety performance is critical to the success of our business. Any failure in health and safety performance may result
in penalties for non-compliance with relevant regulatory requirements, and a failure that results in a major or significant
health and safety incident is likely to be costly and could expose us to liability that could be costly. Such an incident
could generate significant negative publicity and have a corresponding impact on our reputation, our relationships with
relevant regulatory agencies or governmental authorities, and our ability to attract customers and employees, which in
turn could have a material adverse effect on our financial results and liquidity.
We are required to obtain performance bonds, the unavailability of which could adversely affect our results of
operations and cash flows.
We often are required to provide surety bonds to secure our performance or obligations under construction
contracts, development agreements and other arrangements. At September 30, 2024, we had $3.5 billion of outstanding
surety bonds. Our ability to obtain surety bonds primarily depends upon our credit rating, financial condition, past
performance and other factors, including the capacity of the surety market and the underwriting practices of surety bond
issuers. The ability to obtain surety bonds also can be impacted by the willingness of insurance companies to issue
performance bonds for construction and development activities. If we are unable to obtain surety bonds when required,
our results of operations and cash flows could be adversely affected.
18

Increases in the costs of owning a home could prevent potential customers from buying our homes and adversely
affect our business and financial results.
Significant expenses of owning a home, including mortgage loan interest and state and local income and property
taxes, have historically been deductible expenses for an individual’s federal income taxes, subject to various limitations.
The Tax Cuts and Jobs Act of 2017 established new limits on these federal tax deductions. Further changes in income tax
laws by the federal or state government to eliminate or substantially reduce income tax benefits associated with
homeownership could adversely affect demand for and sales prices of new homes.
In addition, increases in property tax rates by local governmental authorities, as experienced in some areas in
response to reduced federal and state funding, could adversely affect the amount of financing our potential customers
could obtain or their desire to purchase new homes.
Further, existing and prospective regulatory and societal initiatives intended to reduce potential climate change
impacts may increase the upfront costs of purchasing a home, costs to maintain the home and its systems, energy and
utility costs and the cost to obtain homeowner and various hazard and flood insurance, or limit homeowners’ ability to
obtain these insurance policies altogether. Although these items have had no material effect on our business, they could
adversely affect our business in the future.
Information technology failures, data security breaches, and the failure to satisfy privacy and data protection laws
and regulations could harm our business.
We use information technology and other computer resources to carry out important operational and marketing
activities and to maintain our business records. These information technology systems are dependent upon global
communications providers, web browsers, third-party software and data storage providers and other aspects of the
Internet infrastructure that have experienced security breaches, cyber incidents, ransomware attacks, significant systems
failures and service outages in the past. Additionally, phishing attacks, whereby perpetrators attempt to fraudulently
induce employees, customers, vendors or other users of a company’s systems to disclose sensitive information to gain
access to its data, have increased significantly in recent years. With the use of artificial intelligence, these phishing
attacks may contain highly convincing language making them difficult to distinguish from legitimate messages. The use
of remote work environments and virtual platforms may increase our risk of cyber incidents or data security breaches.
Further, geopolitical tensions or conflicts may create a heightened risk of cyber incidents or other data security breaches.
Our normal business activities involve collecting and storing information specific to our homebuyers, renters, employees,
vendors and suppliers and maintaining operational and financial information related to our business, both in an office
setting and remote locations as needed. A material breach in the security of our information technology systems or other
data security controls, or those of the third parties we work with, could include the theft or release of this information.
The unintended or unauthorized disclosure of personal identifying and confidential information as a result of a security
breach by any means could lead to litigation or other proceedings against us by the affected individuals or business
partners, or by regulators. The outcome of such proceedings, which could include penalties or fines, could have a
significant negative impact on our business.
We may also be required to incur significant costs to protect against damages caused by information technology
failures, security breaches, and the failure to satisfy privacy and data protection laws and regulations in the future as legal
requirements continue to increase. The European Union and other international regulators, as well as state governments,
have enacted or enhanced data privacy regulations, such as the California Privacy Rights Act, and other governments are
considering establishing similar or stronger protections. These regulations impose certain obligations for handling
specified personal information in our systems, including notifying individuals regarding information we have collected
from them. We have incurred costs in an effort to comply with these requirements, but our costs may increase
significantly if new requirements are enacted and based on how individuals exercise their rights. Any loss of sensitive
information and failure to comply with these requirements or other applicable laws and regulations in this area could
result in substantial penalties, reputational damage or litigation.
19

We routinely utilize information technology security experts to assist us in our evaluations of the effectiveness of
the security of our information technology systems, and we regularly enhance our security measures, which include
multiple redundant safeguards, to protect our systems and data. We use various encryption, tokenization and
authentication technologies to mitigate cybersecurity risks and have increased our monitoring capabilities to enhance
early detection and rapid response to potential cyber threats. However, because the techniques used to obtain
unauthorized access, disable or degrade systems change frequently and increasingly leverage sophisticated technologies
such as artificial intelligence, they often are not recognized until launched against a target. As such, we may be unable to
anticipate these techniques, to implement adequate preventative measures or to identify and investigate cybersecurity
incidents. We may also incur costs to adapt our cybersecurity program to the evolving threat landscape and to investigate
and remediate vulnerabilities or other identified risks.
Although past cybersecurity incidents have not had a material effect on our business or operations to date, in the
future, a data security breach, a significant and extended disruption in the functioning of our information technology
systems or a breach of any of our data security controls could disrupt our business operations, damage our reputation and
cause us to lose customers. Additionally, if a cybersecurity incident is determined to be material, we are subject to
additional reporting requirements. We cannot provide assurances that a security breach, cyber incident, data theft or other
significant systems or security failures will not occur in the future, and such occurrences could have a material and
adverse effect on our consolidated results of operations or financial position.
Governmental regulations and environmental matters could increase the cost and limit the availability of our land
development and housing projects and adversely affect our business and financial results.
We are subject to extensive and complex regulations that affect land development and home construction, including
zoning, density restrictions, building design and building standards. These regulations often provide broad discretion to
the administering governmental authorities as to the conditions we must meet prior to development or construction being
approved, if approved at all. We are subject to determinations by these authorities as to the adequacy of water or sewage
facilities, roads or other local services. New housing developments may also be subject to various assessments for
schools, parks, streets and other public improvements. In addition, government authorities in many markets have
implemented no growth or growth control initiatives. Any of these may limit, delay or increase the costs of development
or home construction.
We are also subject to a significant number and variety of local, state and federal laws and regulations concerning
protection of health, safety, labor standards and the environment. The impact of environmental laws varies depending
upon the prior uses of the building site or adjoining properties and may be greater in areas with less supply where
undeveloped land or desirable alternatives are less available. These matters may result in delays, may cause us to incur
substantial compliance, remediation, mitigation and other costs, and can prohibit or severely restrict development and
homebuilding activity in environmentally sensitive regions or areas. Government agencies also routinely initiate audits,
reviews or investigations of our business practices to ensure compliance with these laws and regulations, which can
cause us to incur costs or create other disruptions in our business that can be significant.
In recent years, advocacy groups, government agencies and the general public have expressed growing concerns
regarding the effects of climate change on the environment. Transition risks, such as government restrictions, standards
or regulations intended to reduce greenhouse gas emissions and potential climate change impacts, are emerging and may
increase in the future in the form of restrictions or additional requirements on land development and home construction
in certain areas. Such restrictions and requirements could increase our operating and compliance costs or require
additional technology and capital investment, which could adversely affect our results of operations. This is a particular
concern in the western United States, where some of the most extensive and stringent environmental laws and residential
building construction standards in the country have been enacted, and where we have business operations. We believe we
are in compliance in all material respects with existing climate-related government restrictions, standards and regulations
applicable to our business, and such compliance has not had a material impact on our business. However, given the
rapidly changing nature of environmental laws and matters that may arise that are not currently known, we cannot predict
our future exposure concerning such matters, and our future costs to achieve compliance or remedy potential violations
could be significant.
20

Additionally, actual or perceived ESG and other sustainability matters and our response to these matters could
harm our business. Increasing governmental and societal attention to ESG matters, including expanding mandatory and
voluntary reporting, diligence and disclosure on topics such as climate change, human capital, labor, cybersecurity and
risk oversight, could expand the nature, scope, and complexity of matters that we are required to control, assess and
report. In March 2024, the SEC adopted new rules regarding climate-related disclosures. Though these rules are currently
being challenged in legal proceedings and their effectiveness has been stayed by the SEC, these rules, if they become
effective, would require public companies to make a wide range of climate-related disclosures. Similarly, the State of
California has recently enacted its own legislation requiring extensive climate-related disclosures for companies deemed
to be doing business in California, and other states are considering similar laws. Any of the above factors may alter the
environment in which we do business and may increase the ongoing costs of compliance and adversely impact our
results of operations and cash flows. If we are unable to adequately address such ESG matters or fail to comply with all
laws, regulations, policies and related interpretations, it could negatively impact our reputation and our business results.
The subcontractors we rely on to perform the actual construction of our homes are also subject to a significant
number of local, state and federal laws and regulations, including laws involving matters that are not within our control.
If the subcontractors who construct our homes fail to comply with all applicable laws, we can suffer reputational
damage, and may be exposed to possible liability.
We are also subject to an extensive number of laws and regulations because our common stock and debt securities
and the common stock and debt securities of our Forestar subsidiary are publicly traded in the capital markets. These
regulations govern our communications with our shareholders and the capital markets, our financial statement
disclosures and our legal processes, and they also impact the work required to be performed by our independent
registered public accounting firm and our legal counsel. Changes in these laws and regulations, including the subsequent
implementation of rules by the administering government authorities, may require us to incur additional compliance
costs, and such costs may be significant.
Governmental regulation of our financial services operations could adversely affect our business and financial
results.
Our financial services operations are subject to extensive state and federal laws and regulations, which are
administered by numerous agencies, including but not limited to the Consumer Financial Protection Bureau, Federal
Housing Finance Agency, U.S. Department of Housing and Urban Development, FHA, VA, USDA, Fannie Mae,
Freddie Mac and Ginnie Mae. These laws and regulations include many compliance requirements, including but not
limited to licensing, consumer disclosures, fair lending and real estate settlement procedures. As a result, our operations
are subject to regular, extensive examinations by the applicable agencies. Additional future regulations or changing rule
interpretations and examinations by regulatory agencies may result in more stringent compliance standards and could
adversely affect the results of our operations.
We operate in competitive industries, and competitive conditions could adversely affect our business and financial
results.
We operate in the residential housing industry, which is highly competitive. We compete not only for homebuyers
and renters, but also for desirable properties, raw materials, skilled labor and financing. We compete with local, regional
and national homebuilding and rental companies and also with existing home sales and rental properties. These
competitive conditions can negatively affect our sales volumes, selling prices, leased occupancy levels, rental rates and
incentive levels, reduce our profit margins, and cause the value of our inventory or other assets to be impaired.
Competition can also affect our ability to acquire suitable land, raw materials and skilled labor at acceptable prices or
terms, or cause delays in land development or in construction.
The competitors to our financial services businesses include other mortgage lenders and title companies, including
national, regional and local mortgage banks and other financial institutions. Some of these competitors are subject to
fewer governmental regulations and have greater access to capital than we do, may operate with different lending criteria
and/or may offer a broader or more attractive array of financing and other products and services to potential customers.
Our businesses compete with other companies across all industries to attract and retain highly skilled and
experienced employees, managers and executives. If we are unable to attract and retain key employees, managers or
executives, our business could be adversely affected.
21

Risks Related to our Indebtedness
We have significant amounts of debt and may incur additional debt, which could affect our financial health and our
ability to raise additional capital to fund our operations or potential acquisitions.
As of September 30, 2024, our consolidated debt was $5.9 billion, which consisted of $2.9 billion related to our
homebuilding segment, $1.5 billion related to our financial services segment, $751 million related to our rental segment
and $706 million related to our Forestar segment. The indenture governing our homebuilding senior notes does not
restrict the incurrence of future unsecured debt by us or our homebuilding subsidiaries or the incurrence of secured or
unsecured debt by our non-guarantor subsidiaries, and the agreement governing our homebuilding revolving credit
facility allows us to incur a substantial amount of future unsecured debt. Also, the indenture governing our homebuilding
senior notes and the agreement governing our homebuilding revolving credit facility impose restrictions on our ability
and on that of the guarantors under our homebuilding senior notes and our homebuilding revolving credit facility to incur
debt secured by certain assets, but still permit us and our homebuilding subsidiaries to incur significant amounts of
additional secured debt. The rental revolving credit facility imposes restrictions on the ability of DRH Rental and its
restricted subsidiaries to incur secured and unsecured debt, but still permits DRH Rental and its restricted subsidiaries to
incur a substantial amount of future secured and unsecured debt, and does not restrict the incurrence of future secured
and unsecured debt by DRH Rental’s unrestricted subsidiaries. The Forestar revolving credit facility and the indentures
governing Forestar’s senior notes impose restrictions on the ability of Forestar and its restricted subsidiaries to incur
secured and unsecured debt, but still permit Forestar and its restricted subsidiaries to incur a substantial amount of future
secured and unsecured debt, and do not restrict the incurrence of future secured and unsecured debt by Forestar’s
unrestricted subsidiaries. The mortgage repurchase facilities impose restrictions on the ability of DHI Mortgage and its
restricted subsidiaries to incur secured and unsecured debt, but still permit DHI Mortgage and its restricted subsidiaries
to incur a substantial amount of future secured and unsecured debt, and do not restrict the incurrence of future secured
and unsecured debt by DHI Mortgage’s unrestricted subsidiaries.
The amount and the maturities of our debt and the debt of our subsidiaries could have important consequences. For
example, possible consequences for our homebuilding, rental, Forestar and financial services operations each with
respect to their individual debt obligations, could:
•
require the dedication of a substantial portion of cash flow from operations to payment of debt and reduce the
ability to use cash flow for other operating or investing purposes;
•
limit the flexibility to adjust to changes in business or economic conditions; and
•
limit the ability to obtain future financing for working capital, capital expenditures, acquisitions, debt service
requirements or other requirements.
Servicing our debt requires a significant amount of cash, and we or our subsidiaries may not have sufficient cash
flow from our respective businesses to pay our substantial debt.
Our ability and that of our subsidiaries to meet our respective debt service obligations will depend, in part, upon
our and our subsidiaries’ future financial performance. Future results are subject to the risks and uncertainties described
in this report. Our revenues and earnings vary with the level of general economic activity in the markets we serve. Our
businesses are also affected by financial and political events and other factors, many of which are beyond our control.
The factors that affect our ability to generate cash can also affect our ability to raise additional funds for these purposes
through the sale of debt or equity, the refinancing of debt or the sale of assets. Changes in prevailing interest rates may
affect the cost of our debt service obligations, because borrowings under the homebuilding, rental and Forestar revolving
credit facilities and mortgage repurchase facilities bear interest at floating rates.
The instruments governing our and our subsidiaries’ indebtedness impose certain restrictions on our and our
subsidiaries’ business, and the ability of us and our subsidiaries to comply with related covenants, restrictions or
limitations could adversely affect our and our subsidiaries’ financial condition or operating flexibility.
The restrictions imposed by our and certain of our subsidiaries’ indebtedness could limit our or our subsidiaries’
ability to plan for or react to market or economic conditions or meet capital needs or otherwise restrict our activities or
business plans and adversely affect our or our subsidiaries’ ability to finance our operations, acquisitions, investments or
strategic alliances or other capital needs or to engage in other business activities that would be in our interest.
22

The agreements governing our indebtedness contain restrictions on our and our guarantor subsidiaries’ ability to,
among other things, engage in sale and leaseback transactions with respect to certain assets, incur secured debt, create
liens, pay dividends and make other distributions on or redeem or repurchase equity securities, sell certain assets and
engage in mergers, consolidations or sales of all or substantially all of our assets. The applicable instruments governing
each of DRH Rental’s indebtedness and Forestar’s indebtedness contain restrictions on the ability of DRH Rental and
Forestar, as applicable, and certain of their respective subsidiaries to, among other things, incur additional indebtedness,
create liens, pay dividends and make other distributions on or redeem or repurchase equity securities, sell certain assets,
enter into affiliate transactions and engage in mergers, consolidations or sales of all or substantially all of DRH Rental’s
or Forestar’s assets, as applicable.
In addition, the agreements governing certain of our and our subsidiaries’ debt instruments contain the following
financial covenants:
Homebuilding revolving credit facility. Our homebuilding revolving credit facility contains financial covenants
requiring the maintenance of a maximum allowable leverage ratio and a borrowing base restriction if our leverage ratio
exceeds a certain level. A failure to comply with these financial covenants could allow the lending banks to terminate the
availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable
prior to maturity.
Rental and Forestar revolving credit facilities. The rental and Forestar revolving credit facilities each contain
financial covenants requiring the maintenance by DRH Rental or Forestar, as applicable, of a minimum level of tangible
net worth, a minimum level of liquidity, a maximum allowable leverage ratio and a borrowing base restriction based on
the book value of DRH Rental’s or Forestar’s real estate assets and unrestricted cash. A failure to comply with these
financial covenants could allow the lending banks to terminate the availability of funds under the applicable revolving
credit facility or cause any outstanding borrowings to become due and payable prior to maturity.
Mortgage repurchase facilities and other restrictions. The mortgage repurchase facilities for our mortgage
subsidiary require the maintenance of a minimum level of tangible net worth, a maximum allowable indebtedness to
tangible net worth ratio and a minimum level of liquidity by our mortgage subsidiary. A failure to comply with these
requirements could allow the lending banks to terminate the availability of funds to our mortgage subsidiary or cause any
outstanding borrowings to become due and payable prior to maturity. Any difficulty experienced in complying with these
covenants could make the renewal of the facilities more difficult or costly.
In addition, although our financial services business is conducted through subsidiaries that are not restricted by the
indentures governing our and Forestar’s senior unsecured notes or the agreements governing the homebuilding, rental
and Forestar revolving credit facilities, the ability of our financial services subsidiaries to distribute funds to our
homebuilding operations would be restricted in the event such distribution would cause an event of default under the
mortgage repurchase facilities or if an event of default had occurred under these facilities. Moreover, our right to receive
assets from our financial services subsidiaries upon their liquidation or recapitalization is subject to the prior claims of
the creditors of these subsidiaries. Any claims we may have to funds from our financial services subsidiaries would be
subordinate to subsidiary indebtedness to the extent of any security for such indebtedness and to any indebtedness
otherwise recognized as senior to our claims.
Our access to capital and our ability to obtain additional financing could be affected by any downgrade of our debt
ratings.
Our homebuilding senior unsecured debt is currently rated investment grade by all three major rating agencies;
however, there can be no assurance that we will be able to maintain these ratings. Any lowering of our debt ratings could
make accessing the public capital markets or obtaining additional credit from banks more difficult and/or more
expensive. Any lowering of Forestar’s debt ratings could also make Forestar’s ability to access the public capital markets
or obtain additional credit from banks more difficult and/or more expensive.
23

The instruments governing our indebtedness contain change of control provisions which could affect the timing of
repayment.
Change of control purchase options under our homebuilding senior notes and change of control default under our
homebuilding revolving credit facility. Upon the occurrence of both a change of control and a ratings downgrade event,
each as defined in the indenture governing our homebuilding senior notes, we will be required to offer to repurchase such
notes at 101% of their principal amount, together with all accrued and unpaid interest, if any. Moreover, a change of
control (as defined in our homebuilding revolving credit facility) would constitute an event of default under our
homebuilding revolving credit facility, which could result in the acceleration of the repayment of any borrowings
outstanding under the facility, a requirement to cash collateralize all letters of credit outstanding thereunder and the
termination of the commitments thereunder. If repayment of more than $50 million outstanding under our homebuilding
revolving credit facility were accelerated and such acceleration were not rescinded or such indebtedness were not
satisfied, in either case within 30 days, an event of default would result under the indenture governing our homebuilding
senior notes, entitling the trustee for the notes or holders of at least 25% in principal amount of the relevant series of
notes then outstanding to declare all such notes to be due and payable immediately. If purchase offers were required
under the indenture for our homebuilding senior notes, repayment of the borrowings under our homebuilding revolving
credit facility were required, or if the senior notes were accelerated, we can give no assurance that we would have
sufficient funds to pay the required amounts.
Change of control purchase option under Forestar’s notes and change of control default under the Forestar
revolving credit facility. Upon the occurrence of a change of control triggering event (as defined in the indentures
governing Forestar’s notes), Forestar will be required to offer to repurchase Forestar’s notes at 101% of their principal
amount, together with all accrued and unpaid interest, if any. A change of control (as defined in the Forestar revolving
credit facility) with respect to Forestar would constitute an event of default under the Forestar revolving credit facility,
which could result in the acceleration of the repayment of any borrowings outstanding under the Forestar revolving credit
facility, a requirement to cash collateralize all letters of credit outstanding thereunder and the termination of the
commitments thereunder. If the maturity of the Forestar revolving credit facility and/or other indebtedness of Forestar
and its restricted subsidiaries together having an aggregate principal amount outstanding of $40 million or more is
accelerated, an event of default would result under the indentures governing the Forestar notes, entitling the trustee for
the Forestar notes or holders of at least 25% in aggregate principal amount of the then outstanding Forestar notes to
declare all such Forestar notes to be due and payable immediately. If purchase offers were required under the indentures
for Forestar’s notes, repayment of the borrowings under Forestar’s revolving credit facility were required, or if Forestar’s
notes were accelerated, we can give no assurance that Forestar would have sufficient funds to pay the required amounts.
Change of control default under the rental revolving credit facility. A change of control (as defined in the rental
revolving credit facility agreement) with respect to DRH Rental would constitute an event of default under the rental
revolving credit facility, which could result in the acceleration of the repayment of any borrowings outstanding under the
rental revolving credit facility, a requirement to cash collateralize all letters of credit outstanding thereunder and the
termination of the commitments thereunder. If repayment of the borrowings under the rental revolving credit facility
were required, we can give no assurance that DRH Rental would have sufficient funds to pay the required amounts.
Change of control default under mortgage repurchase facilities. A change of control (as defined in the mortgage
repurchase facility agreements) with respect to DHI Mortgage would constitute an event of default under the mortgage
repurchase facilities, which could result in the acceleration of the repurchase of any loans outstanding under the facilities
and an increase in the repurchase price of such loans. If repayments of the loans under DHI Mortgage’s mortgage
repurchase facilities were required, we can give no assurance that DHI Mortgage would have sufficient funds to pay the
required amounts.
24

General Risk Factors
Damage to our corporate reputation or brands from negative publicity could adversely affect our business, financial
results and/or stock price.
Adverse publicity related to our company, industry, personnel, operations or business performance may cause
damage to our corporate reputation or brands and may generate negative sentiment, potentially affecting the performance
of our business or our stock price, regardless of its accuracy or inaccuracy. Our reputation could be adversely affected by
actual or perceived failures or concerns related to ethics, compliance, product quality and safety, environmental matters,
privacy, diversity and inclusion, human rights, compensation and benefits and corporate governance, among other things.
Negative publicity can be disseminated rapidly through digital platforms, including social media, websites, blogs and
newsletters. Customers and other interested parties value readily available information and often act on such information
without further investigation and without regard to its accuracy. The harm may be immediate without affording us an
opportunity for redress or correction, and our success in preserving our brand image depends on our ability to recognize,
respond to and effectively manage negative publicity in a rapidly changing environment. Adverse publicity or
unfavorable commentary from any source could damage our reputation, reduce the demand for our homes or negatively
impact the morale and performance of our employees, which could adversely affect our business.
Our business could be adversely affected by the loss of key personnel.
We rely on our key personnel to effectively operate and manage our businesses. Specifically, our success depends
heavily on the performance of our homebuilding division and region presidents and their management teams, our rental
housing management team, our financial services management team, our corporate office management teams, our
Forestar management team and our executive officers. These key personnel have significant experience and skills as well
as leadership and management abilities that are vital to our success. Our ability to attract and retain our key personnel
may be impacted by matters involving reputation, culture, diversity and inclusion, compensation and benefits and our
management of executive succession. We seek to retain our key personnel, to have succession and transition plans in
place to address the potential loss of key personnel, and to manage personnel transitions due to retirements, promotions,
transfers and other circumstances. However, if our retention, succession and transition implementation efforts are
unsuccessful, the loss of key personnel could adversely affect our business.
Our business could be negatively impacted as a result of actions by activist stockholders or others.
We may be subject to actions or proposals from activist stockholders or others that may not align with our business
strategies or the interests of our other stockholders. Responding to such actions could be costly and time-consuming,
disrupt our business and operations and/or divert the attention of our Board and senior management from the pursuit of
our business strategies. Activist stockholders may create perceived uncertainties as to the future direction of our business
or strategy, including with respect to our ESG efforts, which may be exploited by our competitors and may make it more
difficult to attract and retain qualified personnel, potential homebuyers and business partners and may affect our
relationships with current homebuyers, subcontractors, investors and other third parties. In addition, actions of activist
stockholders may cause periods of fluctuation in our stock price based on temporary or speculative market perceptions or
other factors that do not necessarily reflect the underlying fundamentals and prospects of our business.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
25

ITEM 1C. CYBERSECURITY
Risk Management and Strategy
We have processes in place for assessing, identifying, and managing risks from cybersecurity threats that may
result in material adverse effects to the confidentiality, integrity and availability of our systems, operations and data.
These processes are a part of our overall risk assessment process. Risks from cybersecurity threats include, among other
things, unauthorized access, data theft, computer viruses, ransomware, malicious software and other disruptions. We
have implemented systems and processes utilizing a multilayered, proactive approach to identify, evaluate, mitigate and
prevent potential cybersecurity threats. Each of these layers contain multiple levels of protection and leverage industry
standard framework including the National Institute of Standards and Technology (NIST) Cybersecurity Framework. At
the management level, these systems and processes are overseen primarily by our Chief Information Officer (CIO) and
our Cyber Security Risk Officer (CSRO).
We have implemented processes to assess, identify, and manage risks from cybersecurity threats, including the
following:
•
Muti-factor Authentication: We secure access to our network and systems through multi-factor
authentication.
•
Layered Email Protection: We have adopted a layered approach to email protection.
•
Zero-Trust Security Model: We are working towards a zero-trust security model, utilizing group-based
access controls to manage network resources.
•
Continuous Monitoring: We continuously monitor our systems for security anomalies, to help enable early
detection of issues and facilitating a rapid response.
•
Regular Scans: We conduct weekly and monthly scans to identify and prioritize the mitigation of the most
critical vulnerabilities.
•
Quarterly Penetration Testing: We engage third-party consultants to perform quarterly penetration testing,
examining our environment from various perspectives, including end-user and employee use cases, to
thoroughly assess system vulnerabilities.
•
Collaborative Evaluation and Remediation: In collaboration with our third-party consultants, we evaluate
the outcomes of our testing, address and remediate any identified issues, and subsequently re-test the
environment to confirm that the mitigations have effectively resolved the vulnerabilities.
•
Regular Assessments and Gap Analyses: Our cybersecurity team regularly meets with the third-party
consultants to assess overall risk and conduct gap analyses, ensuring the effectiveness of our current
cybersecurity measures.
•
Comprehensive Risk Assessment: Our comprehensive risk assessment includes evaluating potential security
risks associated with the use of external service providers.
•
Incident Response Readiness: We maintain a documented incident response readiness process that details
the procedures to follow in the event of a security incident.
•
Data Backup: We maintain comprehensive backups of all system files to facilitate data recovery during a
security incident.
In addition to the above-described technology controls, we have implemented mandatory training and awareness
programs designed to educate our employees on cybersecurity risks. These include periodic exercises to help employees
identify phishing schemes and other social engineering tactics, and we provide various methods for them to report
suspicious activity that may give rise to a cybersecurity incident.
To date, we have not identified any risks from known cybersecurity threats, including as a result of any previous
cybersecurity incidents, that have materially affected or are reasonably likely to materially affect our business strategy,
results of operations or financial condition. However, because the sophistication of cybersecurity threats continues to
increase with rapidly evolving techniques to overcome security measures, the preventative actions we have taken and
will continue to take to reduce the risks may not successfully protect our systems against a future cybersecurity incident.
For more information on how cybersecurity risk could materially affect our business, please refer to Item 1A, “Risk
Factors.”
26

Governance
Our Board considers cybersecurity and other information technology risk as part of its risk oversight function. The
members of our Board receive reports on our cybersecurity risks and risk management on at least an annual basis from
our CIO and CSRO. These reports include reviewing current trends, processes and systems used to mitigate the risk of
cybersecurity threats. Our internal audit department also conducts cybersecurity reviews as part of its audit procedures
and presents any findings to the Board. We have protocols by which certain cybersecurity incidents would be escalated
within the Company and, where appropriate, reported to the Board in a timely manner.
We invest a considerable amount of resources in training, tools and other resources to manage risks from
cybersecurity threats. Our cybersecurity program is led by an experienced team that creates cybersecurity policies and
procedures and possesses expert knowledge related to controls and safeguards related to cybersecurity. Led by our CIO,
our cybersecurity team is responsible for assessing and managing risks from cybersecurity threats. The CIO receives
reports on cybersecurity threats from the cybersecurity team on an ongoing basis and in conjunction with the CSRO,
regularly reviews risk management measures implemented by the Company to identify and mitigate data protection and
cybersecurity risks. Our CIO and CSRO work closely with our legal team to oversee compliance with legal, regulatory
and contractual security requirements.
Our CIO has more than 35 years of experience working in information technology including roles in the
commercial software development, healthcare, industrial and professional services sectors. While in those roles, our CIO
has led governance, risk, and compliance technology programs and information security programs. The CIO currently
reports to the CFO.
Our CSRO has more than 23 years of experience working in information technology and cybersecurity roles
including software development, identity and access management projects, privilege account management and multi
factor authentication implementations. While in those roles, our CSRO has led projects and implementations for a variety
of organizations that assess and create solutions for security concerns. The CSRO currently reports to the CIO.
Supporting the CIO and CSRO is a dedicated cybersecurity team that designs and monitors our cybersecurity
control framework as well as implements cybersecurity control systems and solutions. Our cybersecurity team
collectively holds the following degrees and certifications: Master’s in Cybersecurity, Certified Information Systems
Security Professional, Security+, Network+, AQS Certified Cloud Practitioner and Certified Information Systems
Auditor.
27

ITEM 2.
PROPERTIES
Our homebuilding and lot development operations own inventories of land, lots and homes, and our rental
operations own rental properties that are both completed and under construction as part of the ordinary course of our
business. We also own office buildings totaling approximately 1.8 million square feet, and we lease approximately
750,000 square feet of office space under leases expiring through August 2032. These properties are located in our
various operating markets to house our homebuilding, rental, Forestar and financial services operating divisions and our
regional and corporate offices.
We own ranch land and improvements totaling 94,200 acres, most of which has been owned for over 20 years. We
use this land to conduct ranching and agricultural activities and to host company meetings and events.
ITEM 3.
LEGAL PROCEEDINGS
We are involved in lawsuits and other contingencies in the ordinary course of business. While the outcome of such
contingencies cannot be predicted with certainty, we believe that the liabilities arising from these matters will not have a
material adverse effect on our consolidated financial position, results of operations or cash flows. However, to the extent
the liability arising from the ultimate resolution of any matter exceeds our estimates reflected in the recorded reserves
relating to such matter, we could incur additional charges that could be significant.
With respect to administrative or judicial proceedings involving the environment, we have determined that we will
disclose any such proceeding if we reasonably believe such proceeding will result in monetary sanctions, exclusive of
interest and costs, at or in excess of $1 million.
In fiscal 2014, we received Notices of Violation from the United States Environmental Protection Agency (EPA),
the Alabama Department of Environmental Management and the State of South Carolina Department of Health and
Environmental Control related to stormwater compliance at certain of our sites in the southeastern United States within
EPA Region 4. Since 2014, we have enhanced our practices and procedures related to stormwater compliance, and this
matter has been resolved with each of these governmental entities through a consent decree issued in April 2024
(Consent Decree) and entered by the court in August 2024. In addition to a stipulated monetary penalty, we agreed to
complete a supplemental environmental project intended to provide a tangible environmental benefit. Collectively, the
cost of the penalty and the project is not expected to exceed $1 million. The Consent Decree also provides for ongoing
reporting obligations and stipulated penalties for any future noncompliance with the Consent Decree in EPA Region 4.
We do not believe it is reasonably possible that any future obligations related to this matter would result in a loss that
would have a material effect on our consolidated financial position, results of operations or cash flows.
ITEM 4.
MINE SAFETY DISCLOSURES
Not applicable.
28

PART II
ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock is listed on the NYSE under the symbol “DHI.” As of November 14, 2024, the closing price of
our common stock on the NYSE was $163.74, and there were approximately 240 holders of record.
In October 2024, our Board of Directors approved a quarterly cash dividend of $0.40 per common share, payable
on November 19, 2024 to stockholders of record on November 12, 2024. The declaration of future cash dividends is at
the discretion of our Board and will depend upon, among other things, our future earnings, cash flows, capital
requirements, financial condition and general business conditions.
We may repurchase shares of our common stock from time to time pursuant to our $4.0 billion common stock
repurchase authorization, which was approved by our Board effective July 18, 2024 and replaced our prior $1.5 billion
common stock repurchase authorization that was effective as of October 31, 2023. The authorization has no expiration
date. During fiscal 2024, we purchased 12.5 million shares of our common stock at a total cost, including commissions
and excise taxes, of $1.8 billion, of which $1.4 billion was repurchased under previous authorizations. At September 30,
2024, there was $3.6 billion remaining on the repurchase authorization. The following table sets forth information
concerning our common stock repurchases during the three months ended September 30, 2024.
Approximate
Dollar Value of
Total Number of
Shares Purchased as
Shares that may yet
be Purchased
Period
Total Number of
Shares
Purchased
Average Price
Paid per Share
Part of Publicly
Announced Plans or
Programs
Under the Plans or
Programs
(In millions)
July 2024 (1).................................................
1,985,844
$
151.73
1,985,844
$
3,896.6
August 2024.............................................
1,155,312
178.73
1,155,312
3,690.1
September 2024 .......................................
281,800
189.71
281,800
3,636.7
Total ......................................................
3,422,956
$
163.97
3,422,956
$
3,636.7
_________________________
(1) Our $4.0 billion common stock repurchase authorization was in effect for much of the quarter; however, share repurchases
in July 2024 included 1,404,544 shares purchased for $197.9 million under the previous authorization.
The share repurchases may be effected through Rule 10b5-1 plans or open market purchases, each in compliance
with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (Exchange Act). Shares repurchased in July
2024 included 1,404,544 shares purchased pursuant to a trading plan under Rule 10b5-1 of the Exchange Act.
During fiscal years 2024, 2023 and 2022, we did not sell any equity securities that were not registered under the
Securities Act of 1933, as amended (Securities Act).
The information required by this item with respect to equity compensation plans is set forth under Item 12 of this
annual report on Form 10-K and is incorporated herein by reference.
29

Stock Performance Graph
The following graph illustrates the cumulative total stockholder return on D.R. Horton common stock for the last
five fiscal years through September 30, 2024, compared to the S&P 500 Index and the S&P 1500 Homebuilding Index.
The comparison assumes a hypothetical investment in D.R. Horton common stock and in each of the foregoing indices of
$100 at September 30, 2019 and assumes that all dividends were reinvested. Shareholder returns over the indicated
period are based on historical data and should not be considered indicative of future shareholder returns. The graph and
related disclosure in no way reflect our forecast of future financial performance.
Comparison of Five-Year Cumulative Total Return
Among D.R. Horton, Inc., S&P 500 Index and S&P 1500 Homebuilding Index
$400
$300
$200
$100
$—
Sep-19
Sep-20
Sep-21
Sep-22
Sep-23
Sep-24
D.R. Horton, Inc.
S&P 500 Index
S&P 1500 Homebuilding Index
September 30,
2019
2020
2021
2022
2023
2024
D.R. Horton, Inc.
$
100.00 $
145.26 $
162.81 $
132.03 $
212.75 $
380.76
S&P 500 Index
100.00
115.15
149.70
126.54
153.89
209.83
S&P 1500 Homebuilding Index
100.00
133.20
149.58
118.48
193.38
342.07
This performance graph shall not be deemed to be incorporated by reference into our SEC filings and should not
constitute soliciting material or otherwise be considered filed under the Securities Act or the Exchange Act.
ITEM 6.
[Reserved]
30

ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to
promote an understanding of our financial condition, results of operations, liquidity and certain other factors that may
affect future results. MD&A is provided as a supplement to, and should be read in conjunction with our consolidated
financial statements and notes to those statements that appear elsewhere in this Form 10-K. This section discusses the
results of operations for fiscal 2024 compared to 2023. For similar operating and financial data and discussion of our
fiscal 2023 results compared to our fiscal 2022 results, refer to Item 7, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” under Part II of our annual report on Form 10-K for the fiscal year ended
September 30, 2023, which was filed with the SEC on November 17, 2023.
The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Actual
results could differ materially from those discussed in the forward-looking statements. Factors that could cause or
contribute to any differences include, but are not limited to, those discussed under the caption “Forward-Looking
Statements” and under Item 1A, “Risk Factors.”
Results of Operations — Overview
Fiscal 2024 Operating Results
In fiscal 2024, our number of homes closed and home sales revenues increased 8% and 7%, respectively, compared
to the prior year, and our consolidated revenues increased 4% to $36.8 billion compared to $35.5 billion in the prior year.
Our pre-tax income was $6.3 billion in both fiscal 2024 and 2023, and our pre-tax operating margin was 17.1% compared
to 17.8%. Net income was $4.8 billion in both years, and our diluted earnings per share was $14.34 compared to $13.82.
Consolidated net cash provided by operating activities was $2.2 billion in fiscal 2024 and $4.3 billion in fiscal
2023, and cash provided by our homebuilding operations was $2.2 billion in fiscal 2024 compared to $3.1 billion in fiscal
2023. In fiscal 2024, our return on equity (ROE) was 19.9% compared to 22.7% in fiscal 2023, our homebuilding pre-tax
return on inventory (ROI) was 27.8% compared to 29.7%, and our return on assets (ROA) was 13.9% compared to
15.1%. ROE is calculated as net income attributable to D.R. Horton for the year divided by average stockholders’ equity,
where average stockholders’ equity is the sum of ending stockholders’ equity balances for the trailing five quarters
divided by five. Homebuilding ROI is calculated as homebuilding pre-tax income for the year divided by average
inventory, where average inventory is the sum of ending homebuilding inventory balances for the trailing five quarters
divided by five. ROA is calculated as net income attributable to D.R. Horton for the year divided by average consolidated
assets, where average consolidated assets is the sum of total asset balances for the trailing five quarters divided by five.
Despite elevated mortgage interest rates and inflationary pressures during fiscal 2024, demand for new homes
remained solid, and our net sales orders increased 10% compared to fiscal 2023. The disruptions in the supply chain for
certain building materials and tightness in the labor market we experienced in recent years have largely subsided, and our
average construction cycle time has returned to historical norms. The supply of both new and existing homes at
affordable price points is still limited, and demographics supporting housing demand remain favorable; however, we are
continuing to use incentives and pricing adjustments to adapt to current market conditions. We believe we are well
positioned to meet changing market conditions with our affordable product offerings and lot supply and will manage our
home pricing, sales incentives and number of homes in inventory based on the level of homebuyer demand. We expect
our incentive levels to remain elevated, assuming similar market conditions and no significant changes in mortgage
interest rates.
We remain focused on our relationships with land developers across the country in order to maximize our returns
and capital efficiency. Within our homebuilding land and lot portfolio, our lots controlled through purchase contracts
represent 76% of the lots owned and controlled at September 30, 2024 compared to 75% at September 30, 2023. We are
prioritizing the purchase of finished lots from Forestar and other land developers when possible. During fiscal 2024, 63%
of the homes we closed were on lots developed by either Forestar or a third party.
We believe our strong balance sheet and liquidity provide us with the flexibility to operate effectively through
changing economic conditions. We plan to generate strong cash flows from our operations and manage our product
offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on our inventory investments in
each of our communities based on local housing market conditions.
31

Strategy
Our operating strategy focuses on consistently enhancing long-term value to our shareholders by leveraging our
financial and competitive position to maximize the returns on our inventory investments and generate consistent,
sustainable profitability and cash flows, while managing risk and maintaining financial flexibility to navigate changing
economic conditions. Our strategy includes the following initiatives:
•
Developing and retaining highly experienced and productive teams of personnel throughout our company that
are aligned and focused on continuous improvement in our operational execution and financial performance.
•
Maintaining a significant cash balance and strong overall liquidity position while controlling our level of
debt.
•
Allocating and actively managing our inventory investments across our operating markets to diversify our
geographic risk.
•
Offering new home communities that appeal to a broad range of entry-level, move-up, active adult and luxury
homebuyers based on consumer demand in each market.
•
Modifying product offerings, sales pace, home prices and incentives as necessary in each of our markets to
meet consumer demand and maintain affordability.
•
Delivering high quality homes and a positive experience to our customers both during and after the sale.
•
Managing our inventory of homes under construction relative to demand in each of our markets, including
starting construction on unsold homes to capture new home demand and actively controlling the number of
unsold, completed homes in inventory.
•
Investing in lots, land and land development in desirable markets, while controlling the level of land and lots
we own in each market relative to the local new home demand.
•
Controlling a significant portion of our land and finished lot position through purchase contracts and
prioritizing the purchase of finished lots from Forestar and other land developers when possible.
•
Controlling the cost of labor and goods provided by subcontractors and vendors.
•
Improving the efficiency of our land development, construction, sales and other key operational activities.
•
Controlling our selling, general and administrative (SG&A) expense infrastructure to match production
levels.
•
Ensuring that our financial services business provides high quality mortgage and title services to homebuyers
efficiently and effectively.
•
Investing in the construction and leasing of single-family and multi-family rental properties to meet rental
demand in high growth suburban markets and selling these properties profitably.
•
Opportunistically evaluating potential acquisitions to enhance our operating platform.
We believe our operating strategy, which has produced positive results in recent years, will allow us to successfully
operate through changing economic conditions and maintain our strong financial performance and competitive position.
However, we cannot provide any assurances that the initiatives listed above will continue to be successful, and we may
need to adjust parts of our strategy to meet future market conditions.
32

Key Results
Key financial results as of and for our fiscal year ended September 30, 2024, as compared to fiscal 2023, were as
follows:
Consolidated Results:
•
Consolidated revenues increased 4% to $36.8 billion compared to $35.5 billion.
•
Consolidated pre-tax income was $6.3 billion in both years.
•
Consolidated pre-tax income was 17.1% of consolidated revenues compared to 17.8%.
•
Income tax expense was $1.5 billion in both years, and our effective tax rate was 23.5% compared to 24.1%.
•
Net income attributable to D.R. Horton was $4.8 billion compared to $4.7 billion.
•
Diluted net income per common share attributable to D.R. Horton increased 4% to $14.34 compared to
$13.82.
•
Net cash provided by operations was $2.2 billion compared to $4.3 billion.
•
Stockholders’ equity was $25.3 billion compared to $22.7 billion.
•
Book value per common share increased to $78.12 compared to $67.78.
•
Debt to total capital was 18.9% compared to 18.3%, and net debt to total capital was 5.2% compared to 5.1%.
Homebuilding:
•
Homebuilding revenues increased 7% to $34.0 billion compared to $31.7 billion.
•
Homes closed increased 8% to 89,690 homes, while the average closing price of those homes decreased 1%
to $378,000.
•
Net sales orders increased 10% to 86,561 homes, and the value of net sales orders increased 11% to $32.7
billion.
•
Sales order backlog decreased 20% to 12,180 homes, and the value of sales order backlog decreased 19% to
$4.8 billion.
•
Home sales gross margin was 23.5% in both years.
•
Homebuilding SG&A expense was 7.5% of homebuilding revenues compared to 7.1%.
•
Homebuilding pre-tax income was $5.5 billion compared to $5.3 billion.
•
Homebuilding pre-tax income was 16.1% of homebuilding revenues compared to 16.6%.
•
Homebuilding pre-tax return on inventory was 27.8% compared to 29.7%.
•
Net cash provided by homebuilding operations was $2.2 billion compared to $3.1 billion.
•
Homebuilding cash and cash equivalents totaled $3.6 billion compared to $2.9 billion.
•
Homebuilding inventories totaled $20.0 billion compared to $18.2 billion.
•
Homes in inventory totaled 37,400 compared to 42,000.
•
Owned lots totaled 152,500 compared to 141,100, and lots controlled through purchase contracts totaled
480,400 compared to 427,300.
•
Homebuilding debt was $2.9 billion compared to $2.3 billion.
33

Rental:
•
Rental revenues were $1.7 billion compared to $2.6 billion.
•
Rental pre-tax income was $228.7 million compared to $524.2 million.
•
Rental inventory totaled $2.9 billion compared to $2.7 billion.
•
Single-family rental homes closed totaled 3,970 compared to 6,175.
•
Multi-family rental units closed totaled 2,202 compared to 2,112.
Forestar:
•
Forestar’s revenues increased 5% to $1.5 billion compared to $1.4 billion. Revenues in fiscal 2024 and 2023
included $1.3 billion and $1.2 billion, respectively, of revenue from land and lot sales to our homebuilding
segment.
•
Forestar’s lots sold increased 7% to 15,068 compared to 14,040. Lots sold to D.R. Horton totaled 13,267
compared to 12,249.
•
Forestar’s pre-tax income was $270.1 million compared to $221.6 million.
•
Forestar’s pre-tax income was 17.9% of revenues compared to 15.4%.
•
Forestar’s cash and cash equivalents totaled $481.2 million compared to $616.0 million.
•
Forestar’s inventories totaled $2.3 billion compared to $1.8 billion.
•
Forestar’s owned and controlled lots totaled 95,100 compared to 79,200. Of these lots, 37,700 were under
contract to sell to or subject to a right of first offer with D.R. Horton compared to 31,400.
•
Forestar’s debt was $706.4 million compared to $695.0 million.
•
Forestar’s debt to total capital was 30.7% compared to 33.7%, and Forestar’s net debt to total capital was
12.4% compared to 5.5%.
Financial Services:
•
Financial services revenues increased 10% to $882.5 million compared to $801.5 million.
•
Financial services pre-tax income increased 10% to $311.2 million compared to $283.3 million.
•
Financial services pre-tax income was 35.3% of financial services revenues in both years.
34

Results of Operations — Homebuilding
Our operating segments are our 88 homebuilding divisions, our rental operations, our majority-owned Forestar
residential lot development operations, our financial services operations and our other business activities. The homebuilding
operating segments are aggregated into six reporting segments. These reporting segments, which we also refer to as reporting
regions, have homebuilding operations located in the following states:
Northwest:
Colorado, Oregon, Utah and Washington
Southwest:
Arizona, California, Hawaii, Nevada and New Mexico
South Central:
Arkansas, Oklahoma and Texas
Southeast:
Alabama, Florida, Louisiana and Mississippi
East:
Georgia, North Carolina, South Carolina and Tennessee
North:
Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri,
Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia and Wisconsin
The following tables and related discussion set forth key operating and financial data for our homebuilding operations
by reporting segment as of and for the fiscal years ended September 30, 2024 and 2023.
Net Sales Orders (1)
Year Ended September 30,
Net Homes Sold
Value (In millions)
Average Selling Price
%
%
%
2024
2023
Change
2024
2023
Change
2024
2023
Change
Northwest ...........
5,391
4,622
17 % $ 2,750.8 $ 2,425.1
13 % $
510,300 $ 524,700
(3)%
Southwest ...........
9,942
8,470
17 %
4,855.6
4,023.1
21 %
488,400
475,000
3 %
South Central......
22,549
20,716
9 %
7,285.5
6,735.9
8 % 323,100
325,200
(1)%
Southeast ............
22,982
21,683
6 %
8,115.2
7,812.0
4 % 353,100
360,300
(2)%
East .....................
16,425
15,013
9 %
5,830.8
5,361.4
9 % 355,000
357,100
(1)%
North...................
9,272
7,838
18 %
3,876.1
3,170.4
22 %
418,000
404,500
3 %
86,561
78,342
10 % $
32,714.0 $29,527.9
11 % $
377,900 $ 376,900
— %
_____________
(1)
Net sales orders represent the number and dollar value of new sales contracts executed with customers (gross sales orders), net of
cancelled sales orders.
Sales Order Cancellations
Year Ended September 30,
Cancelled Sales Orders
Value (In millions)
Cancellation Rate (1)
2024
2023
2024
2023
2024
2023
Northwest............
852
949
$
456.2 $
514.5
14 %
17 %
Southwest............
1,726
1,961
827.7
975.7
15 %
19 %
South Central ......
4,805
5,901
1,608.6
2,029.7
18 %
22 %
Southeast.............
5,570
5,840
1,997.0
2,132.8
20 %
21 %
East .....................
3,850
3,379
1,363.7
1,226.4
19 %
18 %
North...................
2,208
1,763
912.5
715.8
19 %
18 %
19,011
19,793
$ 7,165.7 $ 7,594.9
18 %
20 %
_____________
(1)
Cancellation rate represents the number of cancelled sales orders divided by gross sales orders.
35

Net Sales Orders
The number of net sales orders increased 10% during 2024 compared to 2023, and the value of net sales orders
increased 11% to $32.7 billion (86,561 homes) in 2024 from $29.5 billion (78,342 homes) in 2023. The average selling price
of net sales orders during 2024 was $377,900, up slightly from the prior year.
During fiscal 2024, the markets contributing most to the increase in sales order volume were the Portland and Salt Lake
City markets in the Northwest, the Nevada markets in the Southwest, the Dallas market in the South Central, the Tampa
market in the Southeast, the North Carolina markets in the East and the suburban Washington, D.C. market in the North.
Despite elevated mortgage interest rates and inflationary pressures during fiscal 2024, demand for new homes remained
solid, and our net sales orders increased 10% compared to fiscal 2023. The disruptions in the supply chain for certain building
materials and tightness in the labor market we experienced in recent years have largely subsided, and our average
construction cycle time has returned to historical norms. The supply of both new and existing homes at affordable price
points is still limited, and demographics supporting housing demand remain favorable; however, we are continuing to use
incentives and pricing adjustments to adapt to current market conditions. We believe we are well-positioned to meet changing
market conditions with our affordable product offerings and lot supply and will manage our home pricing, sales incentives
and number of homes in inventory based on the level of homebuyer demand. We expect our incentive levels to remain
elevated, assuming similar market conditions and no significant changes in mortgage interest rates.
Our sales order cancellation rate (cancelled sales orders divided by gross sales orders for the period) was 18% in 2024
compared to 20% in 2023.
Sales Order Backlog
As of September 30,
Homes in Backlog
Value (In millions)
Average Selling Price
%
%
%
2024
2023
Change
2024
2023
Change
2024
2023
Change
Northwest.........
535
547
(2)% $
284.2 $
278.1
2 % $ 531,200 $ 508,400
4 %
Southwest.........
1,214
1,407
(14)%
623.6
681.3
(8)%
513,700
484,200
6 %
South Central....
2,709
3,588
(24)%
872.4
1,220.1
(28)%
322,000
340,100
(5)%
Southeast ..........
3,095
4,816
(36)%
1,135.5
1,873.7
(39)%
366,900
389,100
(6)%
East...................
2,744
3,381
(19)%
1,012.3
1,252.4
(19)%
368,900
370,400
— %
North ................
1,883
1,458
29 %
842.3
617.7
36 %
447,300
423,700
6 %
12,180
15,197
(20)% $ 4,770.3 $ 5,923.3
(19)% $ 391,700 $ 389,800
— %
Sales Order Backlog
Sales order backlog represents homes under contract but not yet closed at the end of the period. Many of the contracts in
our sales order backlog are subject to contingencies, including mortgage loan approval and buyers selling their existing
homes, which can result in cancellations. A portion of the contracts in backlog will not result in closings due to cancellations.
36

Homes Closed and Revenue
Year Ended September 30,
Homes Closed
Home Sales Revenue (In millions)
Average Selling Price
%
%
%
2024
2023
Change
2024
2023
Change
2024
2023
Change
Northwest ...........
5,403
4,799
13 % $ 2,744.6 $ 2,574.1
7 % $ 508,000 $ 536,400
(5)%
Southwest ...........
10,135
8,823
15 %
4,913.3
4,246.7
16 %
484,800
481,300
1 %
South Central......
23,467
22,923
2 %
7,639.6
7,598.1
1 % 325,500
331,500
(2)%
Southeast ............
24,703
23,905
3 %
8,853.4
8,756.5
1 % 358,400
366,300
(2)%
East .....................
17,062
14,718
16 %
6,070.9
5,323.9
14 %
355,800
361,700
(2)%
North...................
8,920
7,749
15 %
3,681.8
3,141.7
17 %
412,800
405,400
2 %
89,690
82,917
8 % $33,903.6 $31,641.0
7 % $ 378,000 $ 381,600
(1)%
Home Sales Revenue
Revenues from home sales increased 7% to $33.9 billion (89,690 homes closed) in 2024 from $31.6 billion (82,917
homes closed) in 2023. The number of homes closed increased 8% compared to the prior year. The average selling price of
homes closed during 2024 was $378,000, down 1% from the prior year.
The markets contributing most to the increase in closings volume were the Portland and Salt Lake City markets in the
Northwest, the California and Nevada markets in the Southwest, the North Carolina markets in the East and the suburban
Washington, D.C. market in the North.
Homebuilding Operating Margin Analysis
Percentages of Related Revenues
Year Ended September 30,
2024
2023
Gross profit — home sales.....................................................................................................
23.5 %
23.5 %
Gross profit — land/lot sales and other..................................................................................
31.3 %
47.4 %
Inventory and land option charges .........................................................................................
(0.2)%
(0.2)%
Gross profit — total homebuilding ........................................................................................
23.3 %
23.4 %
Selling, general and administrative expense ..........................................................................
7.5 %
7.1 %
Other (income) expense .........................................................................................................
(0.3)%
(0.2)%
Homebuilding pre-tax income................................................................................................
16.1 %
16.6 %
Home Sales Gross Profit
Gross profit from home sales increased to $8.0 billion in 2024 from $7.4 billion in 2023 and was 23.5% of home sales
revenues in both years. We remain focused on managing the pricing, incentives and sales pace in each of our communities to
optimize the returns on our inventory investments and adjust to local market conditions and new home demand. To adjust to
changes in market conditions during fiscal 2023 and 2024, we have used a higher level of incentives and reduced home prices
and sizes of our home offerings where necessary to provide better affordability to homebuyers. We expect our incentive
levels to remain elevated, assuming similar market conditions and no significant changes in mortgage interest rates.
37

Land/Lot Sales and Other Revenues
Land/lot sales and other revenues from our homebuilding operations were $58.2 million and $102.2 million in fiscal
2024 and 2023, respectively. We continually evaluate our land and lot supply, and fluctuations in revenues and profitability
from land sales occur based on how we manage our inventory levels in various markets. We generally purchase land and lots
with the intent to build and sell homes on them. However, some of the land that we purchase includes commercially zoned
parcels that we may sell to commercial developers. We may also sell residential lots or land parcels to manage our supply or
for other strategic reasons. As of September 30, 2024, our homebuilding operations had $12.7 million of land held for sale
that we expect to sell in the next twelve months.
Inventory and Land Option Charges
At the end of each quarter, we review the performance and outlook for all of our communities and land inventories for
indicators of potential impairment and perform detailed impairment evaluations and analyses when necessary. As a result of
this review, there were $8.3 million of impairments recorded in our homebuilding segment during the three months ended
September 30, 2024. During fiscal 2024, impairment charges related to our homebuilding segment totaled $14.0 million
compared to $7.7 million in fiscal 2023.
As we manage our inventory investments across our operating markets to optimize returns and cash flows, we may
modify our pricing and incentives, construction and development plans or land sale strategies in individual active
communities and land held for development, which could result in the affected communities being evaluated for potential
impairment. If the housing market or economic conditions are adversely affected for a prolonged period, we may be required
to evaluate additional communities for potential impairment. These evaluations could result in impairment charges, which
could be significant.
During fiscal 2024 and 2023, earnest money and pre-acquisition cost write-offs related to our homebuilding segment’s
land purchase contracts that we have terminated or expect to terminate were $54.9 million and $53.0 million, respectively.
Selling, General and Administrative (SG&A) Expense
SG&A expense from homebuilding activities increased 14% to $2.6 billion in fiscal 2024 from $2.2 billion in fiscal
2023. SG&A expense as a percentage of homebuilding revenues was 7.5% and 7.1% in fiscal 2024 and 2023, respectively.
Employee compensation and related costs were $2.1 billion and $1.9 billion in fiscal 2024 and 2023, respectively,
representing 82% and 85% of SG&A costs in those years. These costs increased 10% in fiscal 2024 from the prior year. Our
homebuilding operations employed 10,071 and 9,190 people at September 30, 2024 and 2023, respectively.
We attempt to control our homebuilding SG&A costs while ensuring that our infrastructure adequately supports our
operations; however, we cannot make assurances that we will be able to maintain or improve upon the current SG&A
expense as a percentage of revenues.
Interest Incurred
We capitalize interest costs incurred to inventory during active development and construction (active inventory).
Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. Interest incurred by our
homebuilding operations decreased 27% to $50.5 million in fiscal 2024 from $68.8 million in fiscal 2023, primarily due to an
11% decrease in our average homebuilding debt. Interest charged to cost of sales was 0.4% of homebuilding cost of sales
(excluding inventory and land option charges) in both years.
Other Income
Other income, net of other expenses, included in our homebuilding operations increased to $107.6 million in fiscal 2024
compared to $78.8 million in fiscal 2023, primarily due to an increase in interest income. Other income also consists of
various other types of ancillary income, gains, expenses and losses not directly associated with sales of homes, land and lots.
The activities that result in this ancillary income are not significant, either individually or in the aggregate.
38

Homebuilding Results by Reporting Region
Year Ended September 30,
2024
2023
Homebuilding
Revenues
Homebuilding
Pre-tax
Income (1)
% of
Revenues
Homebuilding
Revenues
Homebuilding
Pre-tax
Income (1)
% of
Revenues
(In millions)
Northwest...................... $
2,761.7
$
420.8
15.2 %
$

2,582.4
$
391.1
15.1 %
Southwest......................
4,914.7
703.5
14.3 %
4,282.8
489.3
11.4 %
South Central ................
7,652.1
1,331.4
17.4 %
7,612.6
1,388.3
18.2 %
Southeast.......................
8,876.8
1,441.4
16.2 %
8,760.8
1,711.1
19.5 %
East................................
6,073.1
1,059.6
17.4 %
5,325.3
935.7
17.6 %
North .............................
3,683.4
498.4
13.5 %
3,179.3
350.8
11.0 %
$
33,961.8
$
5,455.1
16.1 %
$
31,743.2
$
5,266.3
16.6 %
________
(1) Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and
amortized to cost of sales or expensed directly, and the expenses related to operating our corporate office. The amortization
of capitalized interest and property taxes is allocated to each segment based on the segment’s cost of sales, while expenses
associated with the corporate office are allocated to each segment based on the segment’s inventory balances.
Northwest Region — Homebuilding revenues increased 7% in fiscal 2024 compared to fiscal 2023, due to increases
in the number of homes closed in our Portland and Salt Lake City markets, partially offset by a decrease in the average
selling price of homes closed in most of the region’s markets. The region generated pre-tax income of $420.8 million in
2024 compared to $391.1 million in 2023. Gross profit from home sales as a percentage of home sales revenue (home
sales gross profit percentage) increased by 50 basis points in 2024 compared to 2023, primarily due to the average cost of
homes closed decreasing by more than the average selling price of those homes. As a percentage of homebuilding
revenues, SG&A expenses increased by 60 basis points in 2024 compared to 2023, primarily due to an increase in SG&A
expenses.
Southwest Region — Homebuilding revenues increased 15% in fiscal 2024 compared to fiscal 2023, primarily due
to increases in the number of homes closed, particularly in our California and Nevada markets. The region generated pre
tax income of $703.5 million in 2024 compared to $489.3 million in 2023. Home sales gross profit percentage increased
by 270 basis points in 2024 compared to 2023, primarily due to the average selling price of homes closed increasing
while the average cost of those homes decreased. As a percentage of homebuilding revenues, SG&A expenses decreased
by 20 basis points in 2024 compared to 2023, primarily due to the increase in homebuilding revenues.
South Central Region — Homebuilding revenues increased 1% in fiscal 2024 compared to fiscal 2023. The region
generated pre-tax income of $1.3 billion in 2024 compared to $1.4 billion in 2023. Home sales gross profit percentage
decreased by 20 basis points in 2024 compared to 2023, primarily due to the average selling price of homes closed
decreasing by more than the average cost of those homes. As a percentage of homebuilding revenues, SG&A expenses
increased by 70 basis points in 2024 compared to 2023, primarily due to an increase in SG&A expenses.
Southeast Region — Homebuilding revenues increased 1% in fiscal 2024 compared to fiscal 2023. The region
generated pre-tax income of $1.4 billion in 2024 compared to $1.7 billion in 2023. Home sales gross profit percentage
decreased by 260 basis points in 2024 compared to 2023, primarily due to the average selling price of homes closed
decreasing while the average cost of those homes increased. As a percentage of homebuilding revenues, SG&A expenses
increased by 60 basis points in 2024 compared to 2023, primarily due to an increase in SG&A expenses.
39

East Region — Homebuilding revenues increased 14% in fiscal 2024 compared to fiscal 2023, due to increases in
the number of homes closed, particularly in our North Carolina markets. The region generated pre-tax income of $1.1
billion in 2024 compared to $935.7 million in 2023. Home sales gross profit percentage increased by 30 basis points in
2024 compared to 2023, primarily due to the average cost of homes closed decreasing by more than the average selling
price of those homes. As a percentage of homebuilding revenues, SG&A expenses increased by 50 basis points in 2024
compared to 2023, primarily due to an increase in SG&A expenses.
North Region — Homebuilding revenues increased 16% in fiscal 2024 compared to fiscal 2023, due to increases in
the number of homes closed, particularly in our suburban Washington, D.C. market. The region generated pre-tax
income of $498.4 million in 2024 compared to $350.8 million in 2023. Home sales gross profit percentage increased by
290 basis points in 2024 compared to 2023, primarily due to the average cost of homes closed decreasing while the
average selling price of those homes increased. As a percentage of homebuilding revenues, SG&A expenses increased by
10 basis points in 2024 compared to 2023.
40

_____________
Homebuilding Inventories, Land and Lot Position and Homes in Inventory
We routinely enter into contracts to purchase land or developed residential lots at predetermined prices on a defined
schedule commensurate with planned development or anticipated new home demand. At the time of purchase, the
undeveloped land is generally vested with the rights to begin development or construction work, and we plan and coordinate
the development of our land into residential lots for use in our homebuilding business. We manage our inventory of owned
land and lots and homes under construction relative to demand in each of our markets, including starting construction on
unsold homes to capture new home demand and actively controlling the number of unsold, completed homes in inventory.
Our homebuilding segment’s inventories at September 30, 2024 and 2023 are summarized as follows:
September 30, 2024
Residential
Construction
in Progress and
Finished
Land/Lots
Developed
and Under
Land Held
for
Land Held
Total
Homes
Development
Development
for Sale
Inventory
(In millions)
Northwest............................................... $
719.6 $
1,215.6 $
— $
— $
1,935.2
Southwest...............................................
1,378.1
1,889.3
6.8
4.7
3,278.9
South Central .........................................
1,701.5
2,024.5
0.3
1.7
3,728.0
Southeast................................................
2,146.9
2,124.3
13.1
0.2
4,284.5
East ........................................................
1,626.4
2,347.3
—
4.5
3,978.2
North......................................................
1,287.6
1,262.2
—
1.4
2,551.2
Corporate and unallocated (1) ...............
126.0
148.5
0.3
0.2
275.0
$
8,986.1 $
11,011.7 $
20.5 $
12.7 $
20,031.0
September 30, 2023
Residential
Construction
Land/Lots
in Progress and
Developed
Land Held
Finished
and Under
for
Land Held
Total
Homes
Development
Development
for Sale
Inventory
(In millions)
Northwest............................................... $
819.5 $
1,087.5 $
— $
0.5 $
1,907.5
Southwest...............................................
1,280.0
1,845.0
6.7
1.3
3,133.0
South Central .........................................
2,040.2
1,769.6
0.3
0.4
3,810.5
Southeast................................................
2,390.5
1,549.8
13.2
5.0
3,958.5
East ........................................................
1,393.5
1,630.4
—
0.8
3,024.7
North......................................................
1,083.7
993.7
—
0.6
2,078.0
Corporate and unallocated (1) ...............
126.9
116.3
0.3
0.1
243.6
$
9,134.3 $
8,992.3 $
20.5 $
8.7 $
18,155.8
(1) Corporate and unallocated inventory consists primarily of capitalized interest and property taxes.
41

Our land and lot position and homes in inventory at September 30, 2024 and 2023 are summarized as follows:
September 30, 2024
Lots Controlled
Through
Land and Lot
Total Land/Lots
Land/Lots
Purchase
Owned and
Homes in
Owned (1)
Contracts (2)(3)
Controlled
Inventory (4)
Northwest ...................................................................
13,000
18,600
31,600
2,100
Southwest ...................................................................
22,200
29,200
51,400
4,200
South Central..............................................................
39,000
109,600
148,600
9,000
Southeast ....................................................................
29,500
134,300
163,800
9,700
East.............................................................................
32,500
129,300
161,800
7,500
North ..........................................................................
16,300
59,400
75,700
4,900
152,500
480,400
632,900
37,400
24 %
76 %
100 %
September 30, 2023
Lots Controlled
Land/Lots
Owned (1)
Through
Land and Lot
Purchase
Contracts (2)(3)
Total Land/Lots
Owned and
Controlled
Homes in
Inventory (4)
Northwest ...................................................................
14,100
20,300
34,400
2,800
Southwest ...................................................................
22,600
30,500
53,100
4,700
South Central..............................................................
36,700
69,500
106,200
10,800
Southeast ....................................................................
24,700
132,900
157,600
12,100
East.............................................................................
27,700
118,400
146,100
7,100
North ..........................................................................
15,300
55,700
71,000
4,500
141,100
427,300
568,400
42,000
25 %
75 %
100 %
_________________________
(1)
Land/lots owned included approximately 64,400 and 50,300 owned lots that are fully developed and ready for home construction at
September 30, 2024 and 2023, respectively.
(2)
The total remaining purchase price of lots controlled through land and lot purchase contracts at September 30, 2024 and 2023 was
$25.2 billion and $21.1 billion, respectively, secured by earnest money deposits of $2.2 billion and $1.8 billion, respectively. The
total remaining purchase price of lots controlled through land and lot purchase contracts at September 30, 2024 and 2023 included
$1.9 billion and $1.3 billion, respectively, related to lot purchase contracts with Forestar, secured by $193.3 million and $139.1
million, respectively, of earnest money.
(3)
Lots controlled at September 30, 2024 included approximately 37,700 lots owned by Forestar, 20,500 of which our homebuilding
divisions had under contract to purchase and 17,200 of which our homebuilding divisions had a right of first offer to purchase. Of
these, approximately 10,600 lots were in our Southeast region, 7,400 lots were in our East region, 7,000 lots were in our North
region, 6,900 lots were in our South Central region, 3,600 lots were in our Southwest region and 2,200 lots were in our Northwest
region. Lots controlled at September 30, 2023 included approximately 31,400 lots owned by Forestar, 14,400 of which our
homebuilding divisions had under contract to purchase and 17,000 of which our homebuilding divisions had a right of first offer to
purchase.
(4)
Approximately 25,700 and 27,000 of our homes in inventory were unsold at September 30, 2024 and 2023, respectively. At
September 30, 2024, approximately 10,300 of our unsold homes were completed, of which approximately 1,100 homes had been
completed for more than six months. At September 30, 2023, approximately 7,000 of our unsold homes were completed, of which
approximately 620 homes had been completed for more than six months. Homes in inventory exclude approximately 2,400 and
2,100 model homes at September 30, 2024 and 2023, respectively.
42

Results of Operations — Rental
Our rental segment consists of single-family and multi-family rental operations. The single-family rental operations
construct and lease single-family homes within a community and then generally market each community for a bulk sale of
rental homes. The multi-family rental operations develop, construct, lease and sell residential rental properties, with a primary
focus on constructing garden style apartment communities in high growth suburban markets. Single-family and multi-family
rental property sales are recognized as revenues, and rental income is recognized as other income. The following tables
provide further information regarding our rental operations as of and for the fiscal years ended September 30, 2024 and 2023.
Rental Homes/Units Closed and Revenue
Year Ended September 30,
Homes/Units Closed
Rental Revenue (In millions)
Average Selling Price
%
%
%
2024
2023
Change
2024
2023
Change
2024
2023
Change
Single-family......
3,970
6,175
(36)% $ 1,177.4 $ 2,014.8
(42)% $
296,600 $ 326,300
(9)%
Multi-family .......
2,202
2,112
4 %
499.7
590.7
(15)%
226,900
279,700
(19)%
6,172
8,287
(26)% $ 1,677.1 $ 2,605.5
(36)% $
271,700 $ 314,400
(14)%
Year Ended September 30,
2024
2023
(In millions)
Revenues
Single-family rental ............................................................................................................ $
1,177.4 $
2,014.8
Multi-family rental and other .............................................................................................
507.7
590.7
Total revenues.................................................................................................................
1,685.1
2,605.5
Cost of sales
Single-family rental ............................................................................................................
926.0
1,504.8
Multi-family rental and other .............................................................................................
389.9
382.0
Inventory and land option charges......................................................................................
5.8
6.7
Total cost of sales............................................................................................................
1,321.7
1,893.5
Selling, general and administrative expense ..........................................................................
236.2
290.2
Other (income) expense .........................................................................................................
(101.5)
(102.4)
Income before income taxes ............................................................................................. $
228.7 $
524.2
Rental Operating Margin Analysis
Percentages of Related Revenues
Year Ended September 30,
2024
2023
Gross profit — rental .............................................................................................................
21.6 %
27.3 %
Selling, general and administrative expense ..........................................................................
14.0 %
11.1 %
Other (income) expense .........................................................................................................
(6.0)%
(3.9)%
Rental pre-tax income ............................................................................................................
13.6 %
20.1 %
Revenues from our rental operations decreased to $1.7 billion in fiscal 2024 from $2.6 billion in fiscal 2023, and pre-tax
income decreased to $228.7 million from $524.2 million. The decline in rental revenues and pre-tax income was primarily
due to a decrease in the number of single-family homes closed and a decrease in the average selling price of multi-family
units closed.
43

At September 30, 2024, our rental property inventory of $2.9 billion included $800.3 million of inventory related to our
single-family rental operations and $2.1 billion of inventory related to our multi-family rental operations. At September 30,
2023, our rental property inventory of $2.7 billion included $1.3 billion of inventory related to our single-family rental
operations and $1.4 billion of inventory related to our multi-family rental operations. Single-family rental homes and lots and
multi-family rental units at September 30, 2024 and 2023 consisted of the following:
Rental Inventory
September 30,
2024
2023
Single-family rental homes (1).......................................................................................
Single-family rental lots (2) ...........................................................................................
Multi-family rental units (3)...........................................................................................
1
3,140
1,910
1,960
5,630
3,380
9,150
________________________
(1)
Single-family rental homes at September 30, 2024 consist of 340 homes under construction and 2,800 completed homes compared to
1,260 homes under construction and 4,370 completed homes at September 30, 2023.
(2)
Single-family rental lots at September 30, 2024 consist of 910 undeveloped lots and 1,000 finished lots compared to 2,210
undeveloped lots and 1,170 finished lots at September 30, 2023.
(3)
Multi-family rental units at September 30, 2024 consist of 7,900 units under construction and 4,060 units that were substantially
complete and in the lease-up phase compared to 7,200 units under construction and 1,950 units that were substantially complete at
September 30, 2023.
44

p
Results of Operations — Forestar
At September 30, 2024, we owned 62% of the outstanding shares of Forestar. Forestar is a publicly traded residential
lot development company with operations in 59 markets across 24 states as of September 30, 2024. (See Note B to the
accompanying financial statements for additional Forestar segment information.)
Results of operations for the Forestar segment for the fiscal years ended September 30, 2024 and 2023 were as
follows:
Year Ended September 30,
2024
2023
(In millions)
Total revenues..................................................................................................................... $
1,509.4 $
1,436.9
Cost of land/lot sales and other...........................................................................................
1,145.9
1,108.9
Inventory and land option charges......................................................................................
4.1
24.0
Total cost of sales ........................................................................................................
1,150.0
1,132.9
Selling, general and administrative expense.......................................................................
118.5
97.7
Other (income) expense......................................................................................................
(29.2)
(15.3)
Income before income taxes.......................................................................................... $
270.1 $
221.6
Forestar’s revenues are primarily derived from sales of single-family residential lots to local, regional and national
homebuilders and land bankers for homebuilders. The following tables provide further information regarding Forestar’s
revenues and lot position as of and for the fiscal years ended September 30, 2024 and 2023.
Year Ended September 30,
Lots Sold
Value (In millions)
2024
2023
2024
2023
Residential single-family lots sold
Lots sold to D.R. Horton ...........................................
13,267
12,249 $
1,274.3 $
1,094.7
Total lots sold ............................................................
15,068
14,040 $
1,459.3 $
1,275.7
Tract acres sold to D.R. Horton ....................................
32
820 $
15.2 $
114.1
September 30,
2024
2023
Residential single-family lots in inventory and under contract
Lots owned......................................................................................................................
57,800
52,400
Lots controlled through land purchase contracts ............................................................
37,300
26,800
Total lots owned and controlled ..................................................................................
95,100
79,200
Owned lots under contract to sell to D.R. Horton...........................................................
20,500
14,400
Owned lots under contract to customers other than D.R. Horton ...................................
500
Total owned lots under contract ..................................................................................
21,000
15,000
Owned lots subject to right of first offer with D.R. Horton............................................
17,200
17,000
Owned lots fully developed ............................................................................................
6,300
6,400
45
600

At September 30, 2024 and 2023, Forestar’s inventory, which includes land and lots developed, under development
and held for development, totaled $2.3 billion and $1.8 billion, respectively.
Forestar’s inventory and land option charges consisted of $4.1 million of earnest money and pre-acquisition cost
write-offs in fiscal 2024 and $19.4 million of impairment charges and $4.6 million of earnest money and pre-acquisition
cost write-offs in fiscal 2023.
SG&A expense for fiscal 2024 and 2023 included charges of $5.6 million and $3.8 million, respectively, related to
the shared services agreement between Forestar and D.R. Horton whereby D.R. Horton provides Forestar with certain
administrative, compliance, operational and procurement services.
46

Results of Operations — Financial Services
The following tables and related discussion set forth key operating and financial data for our financial services
operations, comprising DHI Mortgage and our subsidiary title companies, for the fiscal years ended September 30, 2024
and 2023.
Number of first-lien loans originated or brokered by
DHI Mortgage for D.R. Horton homebuyers ...........................................
Number of homes closed by D.R. Horton ...................................................
Percentage of D.R. Horton homes financed by DHI Mortgage...................
Loans sold by DHI Mortgage to third parties ..............................................
Loan origination and other fees ...................................................................
Gains on sale of mortgage loans and mortgage servicing rights .................
Servicing income .........................................................................................
Total mortgage operations revenues ............................................................
Title policy premiums..................................................................................
Total revenues..............................................................................................
General and administrative expense ............................................................
Other (income) expense...............................................................................
Financial services pre-tax income................................................................
Year Ended September 30,
2024
2023
% Change
70,308
89,690
78 %

70,877
62,699
82,917
76 %
62,350
12 %
8 %
14 %
Year Ended September 30,
2024
2023
% Change
(In millions)
$
88.3 $
71.8
23 %
589.9
538.4
10 %
3.4
6.1
(44)%
681.6
616.3
11 %
200.9
185.2
8 %
882.5
801.5
10 %
672.4
594.9
13 %
(101.1)
(76.7)
32 %
$
311.2 $
283.3
10 %
Financial Services Operating Margin Analysis
Percentages of
Financial Services Revenues
Year Ended September 30,
2024
2023
General and administrative expense...............................................................................
76.2 %
74.2 %
Other (income) expense..................................................................................................
(11.5)%
(9.6)%
Financial services pre-tax income ..................................................................................
35.3 %
35.3 %
47

Mortgage Loan Activity
DHI Mortgage’s primary focus is to originate loans for our homebuilding operations, and those loan originations
account for virtually all of its total loan volume. In fiscal 2024, the volume of first-lien loans originated or brokered by
DHI Mortgage for our homebuyers increased 12%, primarily due to the 8% increase in the number of homes closed by
our homebuilding operations, as well as an increase in the percentage of homes closed for which DHI Mortgage handled
our homebuyers’ financing. The percentage of homes closed for which DHI Mortgage handled our homebuyers’
financing was 78% in fiscal 2024, up from 76% in fiscal 2023. This increase reflects DHI Mortgage’s ongoing efforts to
align their business with our homebuilding operations by offering competitive products and pricing.
The number of loans sold increased 14% in fiscal 2024 compared to the prior year. Virtually all of the mortgage
loans held for sale on September 30, 2024 were eligible for sale to Fannie Mae, Freddie Mac or Ginnie Mae. During
fiscal 2024, approximately 73% of our mortgage loans were sold directly to Fannie Mae, Freddie Mac or into securities
backed by Ginnie Mae, and 26% were sold to one other major financial entity. Changes in market conditions could result
in a greater concentration of our mortgage sales in future periods to fewer financial entities and directly to Fannie Mae,
Freddie Mac or Ginnie Mae, and we may need to make other adjustments to our mortgage operations.
Financial Services Revenues and Expenses
Total loan origination volume increased 12% during fiscal 2024, and revenues from our mortgage operations
increased 11% to $681.6 million from $616.3 million in fiscal 2023. Revenues from our title operations increased 8% to
$200.9 million in fiscal 2024 from $185.2 million in fiscal 2023.
General and administrative (G&A) expense related to our financial services operations increased 13% to $672.4
million in fiscal 2024 from $594.9 million in the prior year. G&A expenses increased in fiscal 2024 due to increased loan
origination volume. As a percentage of financial services revenues, G&A expense was 76.2% in fiscal 2024 compared to
74.2% in the prior year. Fluctuations in financial services G&A expense as a percentage of revenues can occur because
some components of revenue fluctuate differently than loan volumes, and some expenses are not directly related to
mortgage loan volume or to changes in the amount of revenue earned. Our financial services operations employed 3,149
and 2,895 people at September 30, 2024 and 2023, respectively.
Other income, net of other expense, included in our financial services operations consists primarily of the interest
income of our mortgage subsidiary. Other income increased 32% to $101.1 million in fiscal 2024 from $76.7 million in
the prior year, primarily due to an increase in interest income on our loan origination volume.
Results of Operations — Other Businesses
In addition to our homebuilding, rental, Forestar and financial services operations, we engage in other business
activities through our subsidiaries. We conduct insurance-related operations, own water rights and other water-related
assets and own non-residential real estate including ranch land and improvements. The pre-tax income of all of our
subsidiaries engaged in other business activities was $73.4 million in fiscal 2024 compared to $32.4 million in fiscal
2023. The pre-tax income in fiscal 2024 includes other income of $27.9 million related to a sale of mineral rights.
48

Results of Operations — Consolidated
Income before Income Taxes
Pre-tax income was $6.3 billion in both fiscal 2024 and 2023. In fiscal 2024, our homebuilding, rental, financial
services and Forestar businesses generated pre-tax income of $5.5 billion, $228.7 million, $311.2 million and $270.1
million, respectively, compared to $5.3 billion, $524.2 million, $283.3 million and $221.6 million, respectively, in fiscal
2023.
Income Taxes
Our income tax expense was $1.5 billion in both fiscal 2024 and 2023, and our effective tax rate was 23.5% and
24.1%, respectively, in those years. The effective tax rates for both years include an expense for state income taxes and
tax benefits related to stock-based compensation and federal energy efficient homes tax credits.
Our deferred tax assets, net of deferred tax liabilities, were $182.4 million at September 30, 2024 compared to
$202.0 million at September 30, 2023. We have a valuation allowance of $14.9 million and $14.8 million at
September 30, 2024 and 2023, respectively, related to deferred tax assets for state net operating loss (NOL) and tax
credit carryforwards that are expected to expire before being realized. We will continue to evaluate both the positive and
negative evidence in determining the need for a valuation allowance with respect to our remaining state NOL and tax
credit carryforwards. Any reversal of the valuation allowance in future periods will impact our effective tax rate.
49

Capital Resources and Liquidity
We have historically funded our operations with cash flows from operating activities, borrowings under bank credit
facilities and the issuance of new debt securities. Our current levels of cash, borrowing capacity and balance sheet
leverage provide us with the operational flexibility to adjust to changes in economic and market conditions.
We are making investments in our homebuilding and rental inventories to expand our operations and consolidate
market share. We are also returning capital to our shareholders through repurchases of our common stock and dividend
payments. We are maintaining significant homebuilding cash balances and liquidity to support the increased scale and
level of activity in our business and to provide flexibility to adjust to changing conditions and opportunities.
At September 30, 2024, we had outstanding notes payable with varying maturities totaling an aggregate principal
amount of $5.9 billion. $2.2 billion was payable within 12 months, including $1.5 billion which is outstanding under our
mortgage repurchase facilities and $500 million principal amount of 2.5% homebuilding senior notes that were repaid at
maturity in October 2024. Future interest payments associated with the outstanding notes total $745.5 million, of which
$251.7 million is payable within 12 months.
At September 30, 2024, our ratio of debt to total capital (notes payable divided by stockholders’ equity plus notes
payable) was 18.9% compared to 18.3% at September 30, 2023. Our net debt to total capital (notes payable net of cash
divided by stockholders’ equity plus notes payable net of cash) was 5.2% at September 30, 2024 compared to 5.1% at
September 30, 2023. Over the long term, we intend to maintain our ratio of debt to total capital around or slightly below
20%.
At September 30, 2024, we had outstanding letters of credit of $242.9 million and surety bonds of $3.5 billion,
issued by third parties to secure performance under various contracts. We expect that our performance obligations
secured by these letters of credit and bonds will generally be completed in the ordinary course of business and in
accordance with the applicable contractual terms. When we complete our performance obligations, the related letters of
credit and bonds are generally released shortly thereafter, leaving us with no continuing obligations. We have no material
third-party guarantees.
We regularly assess our projected capital requirements to fund growth in our business, repay debt obligations, pay
dividends, repurchase our common stock and maintain sufficient cash and liquidity levels to support our other
operational needs, and we regularly evaluate our opportunities to raise additional capital. D.R. Horton has an
automatically effective universal shelf registration statement filed with the SEC in July 2024, registering debt and equity
securities that may be issued from time to time in amounts to be determined. Forestar also has an effective shelf
registration statement filed with the SEC in September 2024, registering $750 million of equity securities. As market
conditions permit, we may issue new debt or equity securities through the capital markets or obtain additional bank
financing to fund our projected capital requirements or provide additional liquidity. We believe that our existing cash
resources, revolving credit facilities, mortgage repurchase facilities and ability to access the capital markets or obtain
additional bank financing will provide sufficient liquidity to fund our near-term working capital needs and debt
obligations for the next 12 months and for the foreseeable future thereafter.
Capital Resources - Homebuilding
Cash and Cash Equivalents — At September 30, 2024, cash and cash equivalents of our homebuilding segment
totaled $3.6 billion.
Bank Credit Facility — We have a $2.19 billion senior unsecured homebuilding revolving credit facility with an
uncommitted accordion feature that could increase the size of the facility to $3.0 billion, subject to certain conditions and
availability of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit
equal to 100% of the total revolving credit commitments. Letters of credit issued under the facility reduce the available
borrowing capacity. The maturity date of the facility is October 28, 2027. At September 30, 2024, there were no
borrowings outstanding and $210.1 million of letters of credit issued under the revolving credit facility, resulting in
available capacity of $1.98 billion.
50

Our homebuilding revolving credit facility imposes restrictions on our operations and activities, including requiring
the maintenance of a maximum allowable leverage ratio and a borrowing base restriction if our leverage ratio exceeds a
certain level. These covenants are measured as defined in the credit agreement governing the facility and are reported to
the lenders quarterly. A failure to comply with these financial covenants could allow the lending banks to terminate the
availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable
prior to maturity. The credit agreement governing the facility imposes restrictions on the creation of secured debt and
liens. At September 30, 2024, we were in compliance with all of the covenants, limitations and restrictions of our
homebuilding revolving credit facility.
Public Unsecured Debt — At September 30, 2024, we had $2.8 billion principal amount of homebuilding senior
notes outstanding that were scheduled to mature from October 2024 through October 2034. In August 2024, we issued
$700 million principal amount of 5.0% senior notes due October 15, 2034, with interest payable semi-annually. The
annual effective interest rate of these notes after giving effect to the amortization of the discount and financing costs is
5.2%. In October 2024, we repaid $500 million principal amount of our 2.5% senior notes at maturity. The indenture
governing our senior notes imposes restrictions on the creation of secured debt and liens. At September 30, 2024, we
were in compliance with all of the limitations and restrictions associated with our public debt obligations.
Our homebuilding revolving credit facility and homebuilding senior unsecured notes are guaranteed by D.R.
Horton, Inc.’s significant wholly-owned homebuilding subsidiaries.
Debt and Stock Repurchase Authorizations — In July 2024, our Board of Directors authorized the repurchase of up
to $500 million of our debt securities. Effective July 18, 2024, our Board authorized the repurchase of up to $4.0 billion
of our common stock, replacing the previous authorization that was effective as of October 31, 2023. During fiscal 2024,
we repurchased 12.5 million shares at a total cost, including commissions and excise taxes, of $1.8 billion, of which $1.4
billion was repurchased under previous authorizations. At September 30, 2024, the full amount of the debt repurchase
authorization was remaining, and $3.6 billion of the stock repurchase authorization was remaining. The debt and stock
repurchase authorizations have no expiration date.
Capital Resources - Rental
During the past few years, we have made significant investments in our rental operations. The inventory in our
rental segment totaled $2.9 billion and $2.7 billion at September 30, 2024 and 2023, respectively.
Cash and Cash Equivalents — At September 30, 2024, cash and cash equivalents of our rental segment totaled
$157.6 million.
Bank Credit Facility — Our rental subsidiary, DRH Rental, has a $1.05 billion senior unsecured revolving credit
facility with an uncommitted accordion feature that could increase the size of the facility to $2.0 billion, subject to
certain conditions and availability of additional bank commitments. Availability under the rental revolving credit facility
is subject to a borrowing base calculation based on the book value of DRH Rental’s real estate assets and unrestricted
cash. The facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million
and 50% of the total revolving credit commitments. The maturity date of the facility is October 10, 2027. Borrowings
and repayments under the facility totaled $1.4 billion and $1.1 billion, respectively, during fiscal 2024. At September 30,
2024, there were $745 million of borrowings outstanding at a 6.9% annual interest rate and no letters of credit issued
under the facility, resulting in available capacity of $305 million.
The rental revolving credit facility includes customary affirmative and negative covenants, events of default and
financial covenants. The financial covenants require DRH Rental to maintain a minimum level of tangible net worth, a
minimum level of liquidity and a maximum allowable leverage ratio. These covenants are measured as defined in the
credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial
covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause
any outstanding borrowings to become due and payable prior to maturity. At September 30, 2024, DRH Rental was in
compliance with all of the covenants, limitations and restrictions of its revolving credit facility.
51

The rental revolving credit facility is guaranteed by DRH Rental’s wholly-owned subsidiaries that are not
immaterial subsidiaries and have not been designated as unrestricted subsidiaries. The rental revolving credit facility is
not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, Forestar or
financial services operations.
Capital Resources - Forestar
The achievement of Forestar’s long-term growth objectives will depend on its ability to obtain financing and
generate sufficient cash flows from operations. As market conditions permit, Forestar may issue new debt or equity
securities through the capital markets or obtain additional bank financing to provide capital for future growth and
additional liquidity. At September 30, 2024, Forestar’s ratio of debt to total capital (notes payable divided by
stockholders’ equity plus notes payable) was 30.7% compared to 33.7% at September 30, 2023. Forestar’s ratio of net
debt to total capital (notes payable net of cash divided by stockholders’ equity plus notes payable net of cash) was 12.4%
compared to 5.5% at September 30, 2023.
Cash and Cash Equivalents — At September 30, 2024, Forestar had cash and cash equivalents of $481.2 million.
Bank Credit Facility — Forestar has a $410 million senior unsecured revolving credit facility with an uncommitted
accordion feature that could increase the size of the facility to $600 million, subject to certain conditions and availability
of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to
the greater of $100 million and 50% of the total revolving credit commitments. Borrowings under the revolving credit
facility are subject to a borrowing base calculation based on the book value of Forestar’s real estate assets and
unrestricted cash. Letters of credit issued under the facility reduce the available borrowing capacity. The maturity date of
the facility is October 28, 2026. At September 30, 2024, there were no borrowings outstanding and $32.8 million of
letters of credit issued under the revolving credit facility, resulting in available capacity of $377.2 million.
The Forestar revolving credit facility includes customary affirmative and negative covenants, events of default and
financial covenants. The financial covenants require Forestar to maintain a minimum level of tangible net worth, a
minimum level of liquidity and a maximum allowable leverage ratio. These covenants are measured as defined in the
credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial
covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause
any outstanding borrowings to become due and payable prior to maturity.
Unsecured Debt — As of September 30, 2024, Forestar had $700 million principal amount of senior notes issued
pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, which represent unsecured
obligations of Forestar. These notes include $400 million principal amount of 3.85% senior notes that mature in May
2026 and $300 million principal amount of 5.0% senior notes that mature in March 2028.
At September 30, 2024, Forestar was in compliance with all of the covenants, limitations and restrictions of its
revolving credit facility and senior note obligations.
Forestar’s revolving credit facility and its senior unsecured notes are guaranteed by Forestar’s wholly-owned
subsidiaries that are not immaterial subsidiaries and have not been designated as unrestricted subsidiaries. They are not
guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of our homebuilding, rental or financial
services operations.
Debt Repurchase Authorization — In April 2020, Forestar’s Board of Directors authorized the repurchase of up to
$30 million of Forestar’s debt securities. All of the $30 million authorization was remaining at September 30, 2024, and
the authorization has no expiration date.
Issuance of Common Stock — During fiscal 2024, Forestar issued 546,174 shares of common stock under its at-the
market equity offering (ATM) program for proceeds of $19.7 million, net of commissions and other issuance costs
totaling $0.4 million. In September 2024, Forestar filed a new shelf registration statement, which became effective in
October 2024, registering $750 million of equity securities. At the time of filing the new registration statement, $728.1
million of equity securities remained available for issuance under Forestar’s prior shelf registration statement, which has
since expired. Forestar’s ATM program expired in October 2024, and Forestar anticipates entering into a new ATM
program under its September 2024 shelf registration statement.
52

Capital Resources - Financial Services
Cash and Cash Equivalents — At September 30, 2024, cash and cash equivalents of our financial services segment
totaled $242.3 million.
Mortgage Repurchase Facilities — Our mortgage subsidiary, DHI Mortgage, has two mortgage repurchase
facilities, one of which is committed and the other of which is uncommitted, that provide financing and liquidity to DHI
Mortgage by facilitating purchase transactions in which DHI Mortgage transfers eligible loans to counterparties upon
receipt of funds from the counterparties. DHI Mortgage then has the right and obligation to repurchase the purchased
loans upon their sale to third-party purchasers in the secondary market or within specified time frames in accordance
with the terms of the mortgage repurchase facilities.
In August 2024, the committed mortgage repurchase facility was amended to extend its maturity date to May 9,
2025. The facility has a total capacity of $1.6 billion, which can be increased to $2.0 billion subject to the availability of
additional commitments. At September 30, 2024, DHI Mortgage had an obligation of $1.2 billion under the committed
mortgage repurchase facility at a 6.5% annual interest rate.
At September 30, 2024, the uncommitted mortgage repurchase facility had a borrowing capacity of $500 million,
of which DHI Mortgage had an obligation of $304.5 million at a 6.1% annual interest rate.
At September 30, 2024, $2.09 billion of mortgage loans held for sale with a collateral value of $2.05 billion were
pledged under the committed mortgage repurchase facility, and $322.3 million of mortgage loans held for sale with a
collateral value of $310.8 million were pledged under the uncommitted mortgage repurchase facility.
The facilities contain financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its
maximum allowable indebtedness to tangible net worth ratio and its minimum required liquidity. At September 30, 2024,
DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facilities.
These mortgage repurchase facilities are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that
guarantee the debt of our homebuilding, rental or Forestar operations.
In the past, DHI Mortgage has been able to renew or extend its committed mortgage repurchase facility at a
sufficient capacity and on satisfactory terms prior to its maturity and obtain temporary additional commitments through
amendments to the facility during periods of higher than normal volumes of mortgages held for sale. The liquidity of our
financial services business depends upon its continued ability to renew and extend the committed mortgage repurchase
facility or to obtain other additional financing in sufficient capacities.
Operating Cash Flow Activities
In fiscal 2024, net cash provided by operating activities was $2.2 billion compared to $4.3 billion in fiscal 2023.
Cash provided by operating activities in the current year primarily consisted of cash provided by our homebuilding
segment. The most significant source of cash provided by operating activities in both years was net income.
Cash provided by a decrease in construction in progress and finished home inventory was $141.3 million in fiscal
2024 compared to $861.8 million in fiscal 2023, due to a decrease in our homes in inventory. Cash used to increase
residential land and lots was $2.6 billion and $1.2 billion in fiscal 2024 and 2023, respectively.
Investing Cash Flow Activities
In fiscal 2024, net cash used in investing activities was $190.6 million compared to $310.2 million in fiscal 2023.
In fiscal 2024, uses of cash included purchases of property and equipment totaling $165.3 million. In fiscal 2023, uses of
cash included the acquisitions of the homebuilding operations of Riggins Custom Homes for $107 million and Truland
Homes for $110 million and purchases of property and equipment totaling $148.6 million.
53

Financing Cash Flow Activities
We expect the short-term financing needs of our operations will be funded with existing cash, cash generated from
operations and borrowings under our credit facilities. Long-term financing needs for our operations may be funded with
the issuance of senior unsecured debt securities or equity securities through the capital markets.
In fiscal 2024, net cash used in financing activities was $1.4 billion, consisting primarily of cash used to repurchase
shares of our common stock of $1.8 billion, payment of cash dividends totaling $395.2 million and net payments on our
mortgage repurchase facilities of $135.8 million. These uses of cash were partially offset by note proceeds from our
issuance of $700 million principal amount of 5.0% homebuilding senior notes and net borrowings on our rental revolving
credit facility of $345 million.
In fiscal 2023, net cash used in financing activities was $2.7 billion, consisting primarily of cash used to repurchase
shares of our common stock of $1.2 billion, repayment of $300 million principal amount of our 4.75% homebuilding
senior notes and $400 million principal amount of our 5.75% homebuilding senior notes, net payments on our rental
revolving credit facility of $400 million and payment of cash dividends totaling $341.2 million. These uses of cash were
partially offset by net advances on our mortgage repurchase facilities of $51.3 million.
Our Board of Directors approved and we paid quarterly cash dividends of $0.30 per common share in fiscal 2024
and $0.25 per common share in fiscal 2023. In October 2024, our Board approved a quarterly cash dividend of $0.40 per
common share, payable on November 19, 2024 to stockholders of record on November 12, 2024. The declaration of
future cash dividends is at the discretion of our Board and will depend upon, among other things, our future earnings,
cash flows, capital requirements, financial condition and general business conditions.
54

Supplemental Guarantor Financial Information
As of September 30, 2024, D.R. Horton, Inc. had $2.8 billion principal amount of homebuilding senior unsecured
notes outstanding due through October 2034 and no amounts outstanding on its homebuilding revolving credit facility.
All of the homebuilding senior notes and the homebuilding revolving credit facility are fully and unconditionally
guaranteed, on a joint and several basis, by certain subsidiaries of D.R. Horton, Inc. (Guarantors or Guarantor
Subsidiaries). Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by D.R. Horton, Inc. Our
subsidiaries associated with the single-family and multi-family rental operations, Forestar lot development operations,
financial services operations and certain other subsidiaries do not guarantee the homebuilding senior notes or the
homebuilding revolving credit facility (collectively, Non-Guarantor Subsidiaries). The guarantees are senior unsecured
obligations of each Guarantor and rank equal with all existing and future senior debt of such Guarantor and senior to all
subordinated debt of such Guarantor. The guarantees are effectively subordinated to any secured debt of such Guarantor
to the extent of the value of the assets securing such debt. The guarantees will be structurally subordinated to
indebtedness and other liabilities of Non-Guarantor Subsidiaries of the Guarantors.
The guarantees by a Guarantor Subsidiary will be automatically and unconditionally released and discharged upon:
(1) the sale or other disposition of its common stock whereby it is no longer a subsidiary of ours; (2) the sale or other
disposition of all or substantially all of its assets (other than to us or another Guarantor); (3) its merger or consolidation
with an entity other than us or another Guarantor; or (4) its ceasing to guarantee any of our publicly traded debt securities
and ceasing to guarantee any of our obligations under our homebuilding revolving credit facility.
The enforceability of the obligations of the Guarantor Subsidiaries under their guarantees may be subject to review
under applicable federal or state laws relating to fraudulent conveyance or transfer, voidable preference and similar laws
affecting the rights of creditors generally. In certain circumstances, a court could void the guarantees, subordinate
amounts owing under the guarantees or order other relief detrimental to the holders of our guaranteed obligations. The
indenture governing our homebuilding senior notes contains a “savings clause,” which limits the liability of each
Guarantor on its guarantee to the maximum amount that such Guarantor can incur without risk that its guarantee will be
subject to avoidance as a fraudulent transfer. This provision may not be effective to protect such guarantees from
fraudulent transfer challenges or, if it does, it may reduce such Guarantor’s obligation such that the remaining amount
due and collectible under the guarantees would not suffice, if necessary, to pay the notes in full when due.
55

The following tables present summarized financial information for D.R. Horton, Inc. and the Guarantor
Subsidiaries on a combined basis after intercompany transactions and balances have been eliminated among D.R.
Horton, Inc. and the Guarantor Subsidiaries, as well as their investment in, and equity in earnings from the Non-
Guarantor Subsidiaries.
D.R. Horton, Inc. and Guarantor Subsidiaries
Summarized Balance Sheet Data
September 30,
2024
(In millions)
Assets
Cash ..................................................................................................................................................... $
3,542.4
Inventories ...........................................................................................................................................
20,152.9
Amount due from Non-Guarantor Subsidiaries ..................................................................................
1,393.2
Total assets ..........................................................................................................................................
28,865.7
Liabilities & Stockholders’ Equity
Notes payable ...................................................................................................................................... $
2,926.8
Total liabilities.....................................................................................................................................
6,455.0
Stockholders’ equity............................................................................................................................
22,410.7
Year Ended
Summarized Statement of Operations Data
September 30,
2024
(In millions)
Revenues ................................................................................................................................................. $
33,756.1
Cost of sales ............................................................................................................................................
25,896.3
Selling, general and administrative expense ...........................................................................................
2,497.2
Income before income taxes ...................................................................................................................
5,423.0
Net income ..............................................................................................................................................
4,148.9
56

Seasonality
Although significant changes in market conditions have impacted our seasonal patterns in the past and could do so
again in the future, we generally close more homes and generate greater revenues and pre-tax income in the third and
fourth quarters of our fiscal year. The seasonal nature of our business can also cause significant variations in the working
capital requirements for our homebuilding, lot development, financial services and rental operations. As a result of
seasonal activity, our quarterly results of operations and financial position at the end of a particular fiscal quarter are not
necessarily representative of the balance of our fiscal year.
57

Forward-Looking Statements
Some of the statements contained in this report, as well as in other materials we have filed or will file with the
Securities and Exchange Commission, statements made by us in periodic press releases and oral statements we make to
analysts, stockholders and the press in the course of presentations about us, may be construed as “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on
management’s beliefs as well as assumptions made by, and information currently available to, management. These
forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “continue,” “could,”
“estimate,” “expect,” “forecast,” “goal,” “intend,” “likely,” “may,” “outlook,” “plan,” “possible,” “potential,” “predict,”
“projection,” “seek,” “should,” “strategy,” “target,” “will,” “would” or other words of similar meaning. Any or all of the
forward-looking statements included in this report and in any other of our reports or public statements may not
approximate actual experience, and the expectations derived from them may not be realized, due to risks, uncertainties
and other factors. As a result, actual results may differ materially from the expectations or results we discuss in the
forward-looking statements. These risks, uncertainties and other factors include, but are not limited to:
•
the cyclical nature of the homebuilding, rental and lot development industries and changes in economic, real
estate or other conditions;
•
adverse developments affecting the capital markets and financial institutions, which could limit our ability to
access capital, increase our cost of capital and impact our liquidity and capital resources;
•
reductions in the availability of mortgage financing provided by government agencies, changes in government
financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in
mortgage interest rates;
•
the risks associated with our land, lot and rental inventory;
•
our ability to effect our growth strategies, acquisitions, investments or other strategic initiatives successfully;
•
the impact of an inflationary, deflationary or higher interest rate environment;
•
risks of acquiring land, building materials and skilled labor and challenges obtaining regulatory approvals;
•
the effects of public health issues such as a major epidemic or pandemic on the economy and our businesses;
•
the effects of weather conditions and natural disasters on our business and financial results;
•
home warranty and construction defect claims;
•
the effects of health and safety incidents;
•
reductions in the availability of performance bonds;
•
increases in the costs of owning a home;
•
the effects of information technology failures, data security breaches, and the failure to satisfy privacy and
data protection laws and regulations;
•
the effects of governmental regulations and environmental matters on our land development and housing
operations;
•
the effects of governmental regulations on our financial services operations;
•
the effects of competitive conditions within the industries in which we operate;
•
our ability to manage and service our debt and comply with related debt covenants, restrictions and
limitations;
•
the effects of negative publicity;
•
the effects of the loss of key personnel; and
•
the effects of actions by activist stockholders.
We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. However, any further disclosures made on related subjects in subsequent reports
on Forms 10-K, 10-Q and 8-K should be consulted. Additional information about issues that could lead to material
changes in performance and risk factors that have the potential to affect us is contained in Item 1A, “Risk Factors” under
Part I of this annual report on Form 10-K.
58

Critical Accounting Policies and Estimates
General — A comprehensive enumeration of the significant accounting policies of D.R. Horton, Inc. and
subsidiaries is presented in Note A to the accompanying financial statements as of September 30, 2024 and 2023, and for
the years ended September 30, 2024, 2023 and 2022. Each of our accounting policies has been chosen based upon
current authoritative literature that collectively comprises U.S. generally accepted accounting principles (GAAP). In
instances where alternative methods of accounting are permissible under GAAP, we have chosen the method that most
appropriately reflects the nature of our business, the results of our operations and our financial condition, and have
consistently applied those methods over each of the periods presented in the financial statements. The Audit Committee
of our Board of Directors has reviewed and approved the accounting policies selected.
We believe the following critical accounting policies describe the more significant judgments and estimates used in
the preparation of our consolidated financial statements.
Revenue Recognition — We generally recognize homebuilding revenue and related profit at the time of the closing
of a sale, when title to and possession of the property are transferred to the buyer. Our performance obligation, to deliver
the agreed-upon home, is generally satisfied in less than one year from the original contract date. Proceeds from home
closings held for our benefit at title companies are included in homebuilding cash and cash equivalents in the
consolidated balance sheets.
When we execute sales contracts with our homebuyers, or when we require advance payment from homebuyers for
custom changes, upgrades or options related to their homes, we record the cash deposits received as liabilities until the
homes are closed or the contracts are cancelled. We either retain or refund to the homebuyer deposits on cancelled sales
contracts, depending upon the applicable provisions of the contract or other circumstances.
Revenues associated with our mortgage operations primarily include net gains on the sale of mortgage loans and
servicing rights. We typically elect the fair value option for our mortgage loan originations whereby mortgage loans held
for sale are recorded at fair value based on either sale commitments or current market quotes and loan values are adjusted
through revenues for subsequent changes in fair value until the loans are sold. Expected gains and losses from the sale of
servicing rights are included in the measurement of all written loan commitments that are accounted for at fair value
through revenues at the time of commitment. We sell substantially all of the mortgages we originate and the related
servicing rights to third-party purchasers. Interest income is earned from the date a mortgage loan is originated until the
loan is sold.
Mortgage loans are sold with limited recourse provisions, which can result in repurchases of loans previously sold
to investors or payments to reimburse investors for loan losses. Based on historical experience, analysis of the volume of
mortgages we originated, discussions with our mortgage purchasers and current housing and credit market conditions, we
estimate and record a loss reserve for mortgage loans held in portfolio and mortgage loans held for sale, as well as
known and projected mortgage loan repurchase requests.
Inventories and Cost of Sales — Inventory includes the costs of direct land acquisition, land development and
construction, capitalized interest, real estate taxes and direct overhead costs incurred during development and
construction. Costs that we incur after projects or homes are substantially complete, such as utilities, maintenance, and
cleaning, are charged to SG&A expense as incurred. All indirect overhead costs, such as compensation of sales
personnel, division and region management, and the costs of advertising and builder’s risk insurance are charged to
SG&A expense as incurred.
Land and development costs are typically allocated to individual residential lots on a pro-rata basis, and the costs of
residential lots are transferred to construction in progress when home construction begins. Home construction costs are
specifically identified and recorded to individual homes. Cost of sales for homes closed includes the specific construction
costs of each home and all applicable land acquisition, land development and related costs (both incurred and estimated
to be incurred) allocated to each residential lot based upon the total number of homes expected to be closed in each
community. Cost of sales for lots sold includes all applicable land acquisition, land development and related costs (both
incurred and estimated to be incurred) allocated to each residential lot in the community. Any changes to the estimated
total development costs subsequent to the initial home or lot closings in a community are generally allocated on a pro
rata basis to the remaining homes or lots in the community associated with the relevant development activity.
59

When a home is closed, we generally have not paid all incurred costs necessary to complete the home. We record a
liability and a corresponding charge to cost of sales for the amount estimated to ultimately be paid related to completed
homes that have been closed. We compare our home construction budgets to actual recorded costs to determine the
additional costs remaining to be paid on each closed home. We monitor the accrual by comparing actual costs incurred
on closed homes in subsequent months to the amounts previously accrued. Although actual costs to be paid in the future
on previously closed homes could differ from our current accruals, such differences have not been significant.
At the end of each quarter, we review the performance and outlook for all of our communities and land inventories
for indicators of potential impairment. We generally review our inventory for impairment indicators at the community
level, and the inventory within each community is categorized as land held for development, residential land and lots
developed and under development, land held for sale, rental properties and construction in progress and finished homes,
based on the stage of production or plans for future development or sale. A particular community often includes
inventory in more than one category. In certain situations, inventory may be analyzed separately for impairment purposes
based on its product type or future plans. In reviewing each of our communities, we determine if impairment indicators
exist on inventory held and used by analyzing a variety of factors including, but not limited to, the following:
•
gross margins on homes closed in recent months;
•
projected gross margins on homes sold but not closed;
•
projected gross margins based on community budgets;
•
projected gross margins of rental property sales;
•
trends in gross margins, average selling prices or cost of sales;
•
sales absorption rates; and
•
performance of other communities in nearby locations.
If indicators of impairment are present for a community, we perform an impairment evaluation of the community,
which includes an analysis to determine if the undiscounted cash flows estimated to be generated by those assets are less
than their carrying amounts. If so, impairment charges are recorded to cost of sales if the fair value of such assets is less
than their carrying amounts. These estimates of cash flows are significantly impacted by community specific factors
including estimates of the amounts and timing of future revenues and estimates of the amount of land development,
materials and labor costs which, in turn, may be impacted by the following local market conditions:
•
supply and availability of new and existing homes;
•
location and desirability of our communities;
•
variety of product types offered in the area;
•
pricing and use of incentives by us and our competitors;
•
alternative uses for our land or communities such as the sale of land, finished lots or home sites to third
parties;
•
amount of land and lots we own or control in a particular market or sub-market; and
•
local economic and demographic trends.
For those assets deemed to be impaired, the impairment to be recognized is measured as the amount by which the
carrying amount of the assets exceeds the fair value of the assets. Our determination of fair value is primarily based on
discounting the estimated cash flows at a rate commensurate with the inherent risks associated with the assets and related
estimated cash flow streams. When an impairment charge for a community is determined, the charge is then allocated to
each lot in the community in the same manner as land and development costs are allocated to each lot. Impairment
charges are also recorded on finished homes in substantially completed communities and completed rental properties
when events or circumstances indicate that the carrying values are greater than the fair values less estimated costs to sell
these homes.
60

We rarely purchase land for resale. However, when we own land or communities under development that do not fit
into our development and construction plans, and we determine that we will sell the asset, the project is accounted for as
land held for sale if certain criteria are met. We record land held for sale at the lesser of its carrying value or fair value
less estimated costs to sell. In performing the impairment evaluation for land held for sale, we consider several factors
including, but not limited to, recent offers received to purchase the property, prices for land in recent comparable sales
transactions and market analysis studies, which include the estimated price a willing buyer would pay for the land. If the
estimated fair value less costs to sell an asset is less than the current carrying value, the asset is written down to its
estimated fair value less costs to sell.
The key assumptions relating to inventory valuations are impacted by local market and economic conditions, and
are inherently uncertain. Although our quarterly assessments reflect management’s best estimates, due to uncertainties in
the estimation process, actual results could differ from such estimates.
Warranty Claims — We typically provide our homebuyers with a ten-year limited warranty for major defects in
structural elements such as framing components and foundation systems, a two-year limited warranty on major
mechanical systems and a one-year limited warranty on other construction components. Since we subcontract our
construction work to subcontractors who typically provide us with an indemnity and a certificate of insurance prior to
receiving payments for their work, claims relating to workmanship and materials are generally the primary responsibility
of the subcontractors. Warranty liabilities have been established by charging cost of sales for each home delivered. The
amounts charged are based on management’s estimate of expected warranty-related costs under all unexpired warranty
obligation periods. Our warranty liability is based upon historical warranty cost experience in each market in which we
operate. Actual future warranty costs could differ from our currently estimated amounts. A 10% change in the historical
warranty rates used to estimate our warranty accrual would not result in a material change in our accrual. For additional
information regarding our warranty liability, see Note L, “Commitments and Contingencies,” to our consolidated
financial statements included elsewhere in this report.
Legal Claims and Insurance — We are named as a defendant in various claims, complaints and other legal actions
in the ordinary course of business. At any point in time, we are managing several hundred individual claims related to
construction defect matters, personal injury claims, employment matters, land development issues, contract disputes and
other matters. We have established reserves for these contingencies based on the estimated costs of pending claims and
the estimated costs of anticipated future claims related to previously closed homes. Approximately 97% of these reserves
related to construction defect matters at both September 30, 2024 and 2023.
Our reserves for construction defect claims include the estimated costs of both known claims and anticipated future
claims. At September 30, 2024 and 2023, we had reserves for approximately 825 and 600 pending construction defect
claims, respectively, and no individual existing claim was material to our financial statements. During fiscal 2024, we
were notified of approximately 600 new construction defect claims and resolved 375 construction defect claims for a
total cost of $55.0 million. We have closed a significant number of homes during recent years, and we may be subject to
future construction defect claims on these homes. Although regulations vary from state to state, construction defect
issues can generally be reported for up to ten years after the home has closed in many states in which we operate.
Historical data and trends regarding the frequency of claims incurred and the costs to resolve claims relative to the types
of products and markets where we operate are used to estimate the construction defect liabilities for both existing and
anticipated future claims. These estimates are subject to ongoing revision as the circumstances of individual pending
claims and historical data and trends change. Adjustments to estimated reserves are recorded in the accounting period in
which the change in estimate occurs.
Historical trends in construction defect claims have been inconsistent, and we believe they may continue to
fluctuate. We also believe that fluctuations in housing market conditions can affect the frequency and cost of
construction defect claims. If the ultimate resolution of construction defect claims resulting from our home closings in
prior years varies from current expectations, it could significantly change our estimates regarding the frequency and
timing of claims incurred and the costs to resolve existing and anticipated future claims, which would impact the
construction defect reserves in the future. If the frequency of claims incurred or costs of existing and future legal claims
significantly exceed our current estimates, they will have a significant negative impact on our future earnings and
liquidity.
61

We estimate and record receivables under the applicable insurance policies related to our estimated contingencies
for known claims and anticipated future construction defect claims on previously closed homes and other legal claims
and lawsuits incurred in the ordinary course of business when recovery is probable. However, because the self-insured
retentions under these policies are significant, we anticipate we will largely be self-insured. Additionally, we may have
the ability to recover a portion of our losses from our subcontractors and their insurance carriers when we have been
named as an additional insured on their insurance policies.
The estimation of losses related to these reserves and the related estimates of recoveries from insurance policies are
subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to our
markets and the types of products built, claim frequency, claim settlement costs and patterns, insurance industry practices
and legal interpretations, among others. Due to the high degree of judgment required in establishing reserves for these
contingencies, actual future costs and recoveries from insurance could differ significantly from current estimated
amounts. A 10% increase in the claim frequency and the average cost per claim used to estimate the reserves would
result in an increase of approximately $172.3 million in our reserves and a $43.3 million increase in our insurance
receivable, resulting in additional expense of $129.0 million. A 10% decrease in the claim frequency and the average
cost per claim would result in a decrease of approximately $154.6 million in our reserves and a $41.5 million decrease in
our insurance receivable, resulting in a reduction in expense of $113.1 million. For additional information regarding our
legal claims reserves, see Note L, “Commitments and Contingencies,” to our consolidated financial statements included
elsewhere in this report.
Pending Accounting Standards
In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, “Segment Reporting -
Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosures. The
ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are
regularly provided to the chief operating decision maker and included within each reported measure of segment profit or
loss. It also requires disclosure of the amount and description of the composition of other segment items and interim
disclosures of a reportable segment’s profit or loss and assets. The standard is effective for our annual periods beginning
in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026 on a retrospective basis to all periods
presented. This standard will impact our disclosures but will not impact our consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures,”
which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the
effective tax rate reconciliation and modifies other income tax related disclosures. The standard is effective for us
beginning October 1, 2025, with early adoption permitted. We are currently evaluating the impact of this standard on our
consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income -
Expense Disaggregation Disclosures,” which requires disclosure of certain costs and expenses on an interim and annual
basis in the notes to the financial statements. The standard is effective for our annual periods beginning in fiscal 2028
and interim periods beginning in the first quarter of fiscal 2029, with early adoption permitted. We are currently
evaluating the impact this standard will have on our disclosures.
62

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are subject to interest rate risk on our long-term debt. We monitor our exposure to changes in interest rates and
utilize both fixed and variable rate debt. For fixed rate debt, changes in interest rates generally affect the fair value of the debt
instrument, but not our earnings or cash flows. Conversely, for variable rate debt, changes in interest rates generally do not
impact the fair value of the debt instrument, but may affect our future earnings and cash flows. Except in very limited
circumstances, we do not have an obligation to prepay fixed-rate debt prior to maturity and, as a result, interest rate risk and
changes in fair value would not have a significant impact on our cash flows related to our fixed-rate debt until such time as
we are required to refinance, repurchase or repay such debt.
We are exposed to interest rate risk associated with our mortgage loan origination services. We manage interest rate risk
through the use of forward sales of MBS, which are referred to as “hedging instruments” in the following discussion. We do
not enter into or hold derivatives for trading or speculative purposes.
Interest rate lock commitments (IRLCs) are extended to borrowers who have applied for loan funding and who meet
defined credit and underwriting criteria. Typically, the IRLCs have a duration of less than six months. Some IRLCs are
committed immediately to a specific purchaser through the use of best-efforts whole loan delivery commitments, while other
IRLCs are funded prior to being committed to third-party purchasers. The hedging instruments related to IRLCs are classified
and accounted for as derivative instruments in an economic hedge, with gains and losses recognized in revenues in the
consolidated statements of operations. Hedging instruments related to funded, uncommitted loans are accounted for at fair
value, with changes recognized in revenues in the consolidated statements of operations, along with changes in the fair value
of the funded, uncommitted loans. The fair value change related to the hedging instruments generally offsets the fair value
change in the uncommitted loans. The net fair value change, which for the years ended September 30, 2024 and 2023 was not
significant, is recognized in current earnings. At September 30, 2024, hedging instruments used to mitigate interest rate risk
related to uncommitted mortgage loans held for sale and uncommitted IRLCs totaled a notional amount of $3.8 billion.
Uncommitted IRLCs totaled a notional amount of approximately $2.0 billion and uncommitted mortgage loans held for sale
totaled a notional amount of approximately $1.9 billion at September 30, 2024.
We also use hedging instruments as part of a program to offer below market interest rate financing to our homebuyers.
At September 30, 2024 and 2023, we had MBS totaling $637.9 million and $1.1 billion, respectively, that did not yet have
IRLCs or closed loans created or assigned and recorded an asset of $2.4 million and $15.7 million, respectively, for the fair
value of such MBS position.
The following table sets forth principal cash flows by scheduled maturity, effective weighted average interest rates and
estimated fair value of our debt obligations as of September 30, 2024. Because the mortgage repurchase facilities are
effectively secured by certain mortgage loans held for sale that are typically sold within 60 days, the outstanding balances
related to those facilities are included in the most current period presented. The interest rate for our variable rate debt
represents the weighted average interest rate in effect at September 30, 2024.
2025
Fiscal Year Ending September 30,
2026
2027
2028
2029
Thereafter
Total
Fair Value at
September 30,
2024
($ in millions)
Debt:
Fixed rate...................... $ 633.6
$

910.3
$

600.4
$ 800.0
$ 17.5
$ 700.0
$3,661.8
$
3,575.5
Average interest rate.....
3.1 %
3.4 %
1.5 %
3.0 %
6.0 %
5.3 %
3.3 %
Variable rate ................. $1,533.8
$
—
$
—
$

745.0
$
—
$
—
$2,278.8
$
2,278.8
Average interest rate......
6.4 %
— %
— %
6.9 %
— %
— %
6.6 %
63

ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42) ................................................
65
Consolidated Balance Sheets .............................................................................................................................
68
Consolidated Statements of Operations .............................................................................................................
69
Consolidated Statements of Total Equity...........................................................................................................
70
Consolidated Statements of Cash Flows............................................................................................................
71
Notes to Consolidated Financial Statements......................................................................................................
73
64

Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of D.R. Horton, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of D.R. Horton, Inc. and subsidiaries (the
Company) as of September 30, 2024 and 2023, the related consolidated statements of operations, total equity and
cash flows for each of the three years in the period ended September 30, 2024, and the related notes (collectively
referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present
fairly, in all material respects, the financial position of the Company at September 30, 2024 and 2023, and the results
of its operations and its cash flows for each of the three years in the period ended September 30, 2024, in conformity
with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the Company's internal control over financial reporting as of September 30, 2024, based on
criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (2013 framework) and our report dated November 19, 2024 expressed an unqualified
opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an
opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with
the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial
statements that was communicated or required to be communicated to the audit committee and that: (1) relates to
accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective or complex judgments. The communication of the critical audit matter does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical
audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which
it relates.
65

Estimation of reserves for construction defect matters
Description of
the Matter
At September 30, 2024, the Company’s reserve for legal claims related to construction defect
matters was $926 million. As explained in Note L to the consolidated financial statements, the
Company has established reserves for construction defect matters based on the estimated costs
of pending legal claims and the estimated costs of anticipated future legal claims related to
previously closed homes, and this liability is included within the accrued expenses and other
liabilities account in the consolidated balance sheet. This reserve estimate is subject to a high
degree of variability and ongoing revision as the circumstances of individual pending claims
and historical data and trends change. Management applies judgment in determining the key
assumptions used in calculating the reserve for construction defect matters.
Auditing the reserve for construction defect matters is complex and especially challenging due
to the judgmental nature of the key assumptions related to projections of the frequency of future
claims and the costs to resolve claims in consideration of historical claims information. These
assumptions are developed by management, are subjective in nature and have a significant
effect on the determined amount of the reserve for construction defect matters.
How We
Addressed the
Matter in Our
Audit
We obtained an understanding, evaluated the design and tested the operating effectiveness of
controls over the Company’s process for estimating the reserve for construction defect matters.
We tested the Company’s controls that address the risk of material misstatement related to the
measurement and valuation of the reserve for construction defect matters, including the key
assumptions related to the projections of the frequency and costs of future claims, and the
completeness and accuracy of data used in the model developed by management.
To test the reserve for construction defect matters, our audit procedures included, among others,
evaluating the methodology used, the key assumptions and the underlying data used by the
Company in developing the reserve estimate. As management utilizes historical trends of
frequency of claims incurred and the average cost to resolve claims relative to the types of
products and markets where the Company operates in measuring the reserve estimate, we
evaluated management’s methodology for determining the frequency and cost of future claims
assumptions by comparing these key assumptions to trends observed in historical Company
claims data and other available information. In addition, we involved an actuarial specialist to
assist with our procedures. Our specialist developed a range of values for the reserve estimate
based on independently selected assumptions, which we compared to management’s recorded
amount to evaluate management’s estimate. We also performed sensitivity analyses to
determine the effect of changes in assumptions, where appropriate. We also tested completeness
and accuracy of underlying claims data used in management’s estimation calculations and
performed recalculations to evaluate the accuracy of the model used by management to
determine the estimate.
/s/ Ernst & Young LLP
We have served as the Company’s auditor since 2018.
Fort Worth, Texas
November 19, 2024
66

Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of D.R. Horton, Inc.
Opinion on Internal Control Over Financial Reporting
We have audited D.R. Horton, Inc. and subsidiaries’ internal control over financial reporting as of September 30,
2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, D.R. Horton,
Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial
reporting as of September 30, 2024, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the consolidated balance sheets of the Company as of September 30, 2024 and 2023, the related
consolidated statements of operations, total equity and cash flows for each of the three years in the period ended
September 30, 2024, and the related notes and our report dated November 19, 2024 expressed an unqualified opinion
thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and
for its assessment of the effectiveness of internal control over financial reporting included in the accompanying
Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on
the Company’s internal control over financial reporting based on our audit. We are a public accounting firm
registered with the PCAOB and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and
the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting
was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
/s/ Ernst & Young LLP
Fort Worth, Texas
November 19, 2024
67

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30,
2024
2023
(In millions)
ASSETS
Cash and cash equivalents............................................................................................................. $
4,516.4 $
3,873.6
Restricted cash...............................................................................................................................
27.6
26.5
Total cash, cash equivalents and restricted cash.......................................................................
4,544.0
3,900.1
Inventories:
Construction in progress and finished homes ...........................................................................
8,875.8
9,001.4
Residential land and lots — developed and under development ..............................................
12,948.1
10,621.9
Land held for development .......................................................................................................
160.6
50.0
Land held for sale......................................................................................................................
12.7
8.7
Rental properties .......................................................................................................................
2,906.0
2,691.3
Total inventory...................................................................................................................
24,903.2
22,373.3
Mortgage loans held for sale.....................................................................................................
2,477.5
2,519.9
Deferred income taxes, net of valuation allowance of $14.9 million
and $14.8 million at September 30, 2024 and 2023, respectively............................................
167.5
187.2
Property and equipment, net..........................................................................................................
531.0
445.4
Other assets....................................................................................................................................
3,317.6
2,993.0
Goodwill........................................................................................................................................
163.5
163.5
Total assets......................................................................................................................... $
36,104.3 $
32,582.4
LIABILITIES
Accounts payable .......................................................................................................................... $
1,345.5 $
1,246.2
Accrued expenses and other liabilities ..........................................................................................
3,016.7
3,103.8
Notes payable ................................................................................................................................
5,917.7
5,094.5
Total liabilities ..........................................................................................................................
10,279.9
9,444.5
Commitments and contingencies (Note L)
EQUITY
Preferred stock, $.10 par value, 30,000,000 shares authorized, no shares issued .........................
—
—
Common stock, $.01 par value, 1,000,000,000 shares authorized,
402,848,342 shares issued and 324,027,360 shares outstanding at September 30, 2024 and
401,202,253 shares issued and 334,848,565 shares outstanding at September 30, 2023.........
4.0
4.0
Additional paid-in capital..............................................................................................................
3,490.7
3,432.2
Retained earnings ..........................................................................................................................
27,951.0
23,589.8
Treasury stock, 78,820,982 shares and 66,353,688 shares
at September 30, 2024 and 2023, respectively, at cost.............................................................
(6,132.9)
(4,329.8)
Stockholders’ equity .................................................................................................................
25,312.8
22,696.2
Noncontrolling interests ................................................................................................................
511.6
441.7
Total equity ...............................................................................................................................
25,824.4
23,137.9
Total liabilities and equity ................................................................................................. $
36,104.3 $
32,582.4
See accompanying notes to consolidated financial statements.
68

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended September 30,
2024
2023
2022
(In millions, except per share data)
Revenues..................................................................................................... $
36,801.4 $
35,460.4 $
33,480.0
Cost of sales ................................................................................................
27,266.0
26,110.0
22,975.9
Selling, general and administrative expense...............................................
3,599.5
3,248.8
2,933.7
Other (income) expense ..............................................................................
(348.8)
(213.1)
(59.3)
Income before income taxes .......................................................................
6,284.7
6,314.7
7,629.7
Income tax expense..............................................................................
1,478.7
1,519.5
1,734.1
Net income..................................................................................................
4,806.0
4,795.2
5,895.6
Net income attributable to noncontrolling interests....................................
49.6
49.5
38.1
Net income attributable to D.R. Horton, Inc............................................... $
4,756.4 $
4,745.7 $
5,857.5
Basic net income per common share attributable to D.R. Horton, Inc. ...... $
14.44 $
13.93 $
16.65
Weighted average number of common shares ............................................
329.5
340.7
351.7
Diluted net income per common share attributable to D.R. Horton, Inc. ... $
14.34 $
13.82 $
16.51
Adjusted weighted average number of common shares .............................
331.6
343.3
354.8
See accompanying notes to consolidated financial statements.
69

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF TOTAL EQUITY
Additional
Non-
Common
Paid-in
Retained
Treasury
controlling
Total
Stock
Capital
Earnings
Stock
Interests
Equity
(In millions, except common stock share data)
Balances at September 30, 2021
(356,015,843 shares) ......................................... $
4.0
$
3,274.8
$ 13,644.3
$ (2,036.6) $
329.7
$ 15,216.2
Net income .......................................................
—
—
5,857.5
—
38.1
5,895.6
Exercise of stock options
(292,290 shares) ............................................
—
7.0
—
—
—
7.0
Stock issued under employee benefit plans
(1,690,547 shares) .........................................
—
26.2
—
—
—
26.2
Cash paid for shares withheld for taxes ...........
—
(62.0)
—
—
—
(62.0)
Stock-based compensation expense .................
—
105.1
—
—
—
105.1
Cash dividends declared ($0.90 per share) ......
—
—
(316.5)
—
—
(316.5)
Repurchases of common stock
(14,045,657 shares) .......................................
—
—
—
(1,105.9)
—
(1,105.9)
Change of ownership interest in Forestar.........
—
(1.6)
—
—
3.5
1.9
Noncontrolling interest acquired......................
—
—
—
—
18.0
18.0
Balances at September 30, 2022
(343,953,023 shares) ......................................... $
4.0
$
3,349.5
$ 19,185.3
$ (3,142.5) $
389.3
$ 19,785.6
Net income .......................................................
—
—
4,745.7
—
49.5
4,795.2
Exercise of stock options
(603,823 shares) ............................................
—
14.4
—
—
—
14.4
Stock issued under employee benefit plans
(1,425,493 shares) .........................................
—
16.0
—
—
—
16.0
Cash paid for shares withheld for taxes ...........
—
(56.1)
—
—
—
(56.1)
Stock-based compensation expense .................
—
111.2
—
—
—
111.2
Cash dividends declared ($1.00 per share) ......
—
—
(341.2)
—
—
(341.2)
Repurchases of common stock
(11,133,774 shares) .......................................
—
—
—
(1,187.3)
—
(1,187.3)
Change of ownership interest in Forestar.........
—
(2.8)
—
—
2.9
0.1
Balances at September 30, 2023
(334,848,565 shares) ......................................... $
4.0
$
3,432.2
$ 23,589.8
$ (4,329.8) $
441.7
$ 23,137.9
Net income .......................................................
—
—
4,756.4
—
49.6
4,806.0
Exercise of stock options
(219,663 shares) ............................................
—
5.2
—
—
—
5.2
Stock issued under employee benefit plans
(1,426,426 shares) .........................................
—
20.4
—
—
—
20.4
Cash paid for shares withheld for taxes ...........
—
(83.9)
—
—
—
(83.9)
Stock-based compensation expense .................
—
118.1
—
—
—
118.1
Cash dividends declared ($1.20 per share) ......
—
—
(395.2)
—
—
(395.2)
Repurchases of common stock
(12,467,294 shares) .......................................
—
—
—
(1,803.1)
—
(1,803.1)
Change of ownership interest in Forestar.........
—
(1.3)
—
—
20.3
19.0
Balances at September 30, 2024
(324,027,360 shares) ......................................... $
4.0
$
3,490.7
$ 27,951.0
$ (6,132.9) $
511.6
$ 25,824.4
See accompanying notes to consolidated financial statements.
70

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended September 30,
2024
2023
2022
(In millions)
OPERATING ACTIVITIES
Net income ..................................................................................................................... $
4,806.0
$
4,795.2
$
5,895.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ..................................................................................
87.1
91.6
81.4
Stock-based compensation expense ..........................................................................
118.1
111.2
105.1
Deferred income taxes...............................................................................................
19.0
(45.9)
29.1
Inventory and land option charges ............................................................................
78.8
80.3
70.4
Changes in operating assets and liabilities:
Decrease (increase) in construction in progress and finished homes........................
141.3
861.8
(2,059.0)
Increase in residential land and lots —
developed, under development, held for development and held for sale..............
(2,576.5)
(1,226.4)
(1,402.8)
Increase in rental properties ......................................................................................
(214.6)
(151.8)
(1,723.2)
(Increase) decrease in other assets ............................................................................
(331.4)
23.8
(1,111.5)
Decrease (increase) in mortgage loans held for sale.................................................
42.4
(133.9)
(358.8)
Increase (decrease) in accounts payable, accrued expenses and other liabilities......
19.6
(101.8)
1,035.5
Net cash provided by operating activities......................................................................
2,189.8
4,304.1
561.8
INVESTING ACTIVITIES
Expenditures for property and equipment.................................................................
(165.3)
(148.6)
(148.2)
Proceeds from sale of assets......................................................................................
19.4
52.0
—
Payments related to business acquisitions, net of cash acquired ..............................
(40.4)
(212.9)
(271.5)
Other investing activities...........................................................................................
(4.3)
(0.7)
4.8
Net cash used in investing activities ..............................................................................
(190.6)
(310.2)
(414.9)
FINANCING ACTIVITIES
Proceeds from notes payable.....................................................................................
2,086.3
711.0
4,250.0
Repayment of notes payable .....................................................................................
(1,055.8)
(1,823.9)
(3,801.2)
(Repayment) borrowings on mortgage repurchase facilities, net..............................
(135.8)
51.3
123.7
Proceeds from stock associated with certain employee benefit plans.......................
20.6
25.5
33.2
Cash paid for shares withheld for taxes ....................................................................
(83.9)
(56.1)
(62.0)
Cash dividends paid ..................................................................................................
(395.2)
(341.2)
(316.5)
Repurchases of common stock..................................................................................
(1,787.5)
(1,178.5)
(1,131.5)
Net proceeds from issuance of Forestar common stock............................................
19.7
—
1.7
Net other financing activities ....................................................................................
(23.7)
(54.8)
91.4
Net cash used in financing activities..............................................................................
(1,355.3)
(2,666.7)
(811.2)
Net increase (decrease) in cash, cash equivalents and restricted cash...........................
643.9
1,327.2
(664.3)
Cash, cash equivalents and restricted cash at beginning of year ...................................
3,900.1
2,572.9
3,237.2
Cash, cash equivalents and restricted cash at end of year.............................................. $
4,544.0
$
3,900.1
$
2,572.9
71

D.R. HORTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Year Ended September 30,
2024
2023
2022
(In millions)
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid, net ......................................................................................... $
1,669.7
$
1,442.0
$
1,701.1
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Notes payable issued for inventory ..................................................................... $
43.4
$
54.5
$
64.3
Reduction of notes payable upon deconsolidation of variable interest entity..... $
(127.8) $
—
$
—
Stock issued under employee incentive plans ..................................................... $
174.3
$
111.4
$
130.9
See accompanying notes to consolidated financial statements.
72

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally
accepted accounting principles (GAAP) and include the accounts of D.R. Horton, Inc. and all of its wholly-owned,
majority-owned and controlled subsidiaries, which are collectively referred to as the Company, unless the context
otherwise requires. Noncontrolling interests represent the proportionate equity interests in consolidated entities that are
not 100% owned by the Company. As of September 30, 2024, the Company owns a 62% controlling interest in Forestar
Group Inc. (Forestar) and therefore is required to consolidate 100% of Forestar within its consolidated financial
statements, and the 38% interest the Company does not own is accounted for as noncontrolling interests. All
intercompany accounts, transactions and balances have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ materially from those estimates.
Revenue Recognition
Homebuilding revenue and related profit are generally recognized at the time of the closing of a sale, when title to
and possession of the property are transferred to the buyer. The Company’s performance obligation, to deliver the
agreed-upon home, is generally satisfied in less than one year from the original contract date. Proceeds from home
closings held for the Company’s benefit at title companies are included in homebuilding cash and cash equivalents in the
consolidated balance sheets.
When the Company executes sales contracts with its homebuyers, or when it requires advance payment from
homebuyers for custom changes, upgrades or options related to their homes, the cash deposits received are recorded as
liabilities until the homes are closed or the contracts are cancelled. The Company either retains or refunds to the
homebuyer deposits on cancelled sales contracts, depending upon the applicable provisions of the contract or other
circumstances.
Forestar’s land and lot sales revenue and related profit are generally recognized at the time of the closing of a sale,
when title to and possession of the property are transferred to a third-party buyer. Forestar’s revenues from land and lot
sales to D.R. Horton are eliminated in the consolidated financial statements.
The Company rarely purchases unimproved land for resale, but periodically may elect to sell parcels of land that do
not fit into its strategic operating plans. Revenue from land sales is typically recognized on the closing date, which is
generally when performance obligations are satisfied.
The Company’s rental operations develop, construct, lease and sell residential multi-family and single-family rental
properties. Revenue is recognized from the sale of these properties on the closing date, which is when performance
obligations are satisfied. Rental income from these properties is recognized as other income.
Financial services revenues associated with the Company’s title operations are recognized as closing services are
rendered and title insurance policies are issued, both of which generally occur simultaneously as each home is closed.
Revenues associated with the Company’s mortgage operations primarily include net gains on the sale of mortgage loans
and servicing rights. The Company typically elects the fair value option for its mortgage loan originations whereby
mortgage loans held for sale are recorded at fair value based on either sale commitments or current market quotes and
loan values are adjusted through revenues for subsequent changes in fair value until the loans are sold. Expected gains
and losses from the sale of servicing rights are included in the measurement of all written loan commitments that are
73

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
accounted for at fair value through revenues at the time of commitment. The Company sells substantially all of the
mortgages it originates and the related servicing rights to third-party purchasers, typically within 60 days of origination.
Interest income is earned from the date a mortgage loan is originated until the loan is sold.
Cash and Cash Equivalents
The Company considers all highly liquid investments with an initial maturity of three months or less when
purchased to be cash equivalents. Proceeds from home closings held for the Company’s benefit at title companies, which
totaled $304.9 million and $301.8 million at September 30, 2024 and 2023, respectively, are included in homebuilding
cash and cash equivalents in the consolidated balance sheets.
Cash balances of the Company’s captive insurance subsidiary, which are expected to be used to fund the
subsidiary’s operations and pay future anticipated legal claims, were $78.4 million and $70.2 million at September 30,
2024 and 2023, respectively, and are included in cash and cash equivalents in the consolidated balance sheets.
Restricted Cash
The Company has cash that is restricted as to its use. Restricted cash related to homebuilding and land development
operations includes customer deposits that are temporarily restricted in accordance with regulatory requirements.
Restricted cash related to financial services is mortgagor related funds held by the Company for taxes and insurance on
an interim basis until the loans are sold.
Inventories and Cost of Sales
Inventory includes the costs of direct land acquisition, land development and construction, capitalized interest, real
estate taxes and direct overhead costs incurred during development and construction. Costs incurred after projects or
homes are substantially complete, such as utilities, maintenance, and cleaning, are charged to selling, general and
administrative (SG&A) expense as incurred. All indirect overhead costs, such as compensation of sales personnel,
division and region management, and the costs of advertising and builder’s risk insurance are charged to SG&A expense
as incurred.
Land and development costs are typically allocated to individual residential lots on a pro-rata basis, and the costs of
residential lots are transferred to construction in progress when home construction begins. Home construction costs are
specifically identified and recorded to individual homes. Cost of sales for homes closed includes the specific construction
costs of each home and all applicable land acquisition, land development and related costs (both incurred and estimated
to be incurred) allocated to each residential lot based upon the total number of homes expected to be closed in each
community. Cost of sales for lots sold includes all applicable land acquisition, land development and related costs (both
incurred and estimated to be incurred) allocated to each residential lot in the community. Any changes to the estimated
total development costs subsequent to the initial home or lot closings in a community are generally allocated on a pro
rata basis to the remaining homes or lots in the community associated with the relevant development activity.
Development and construction costs incurred related to the rental operations are recorded as rental property inventory.
Cost of sales related to the rental operations include the specific construction costs and all applicable land acquisition,
land development and related costs for each rental project.
When a home is closed, the Company generally has not paid all incurred costs necessary to complete the home. A
liability and a corresponding charge to cost of sales are recorded for the amount estimated to ultimately be paid related to
completed homes that have been closed. Home construction budgets are compared to actual recorded costs to determine
the additional costs remaining to be paid on each closed home.
The Company rarely purchases land for resale. However, when the Company owns land or communities under
development that do not fit into its development and construction plans, and the Company determines that it will sell the
asset, the project is accounted for as land held for sale if certain criteria are met. The Company records land held for sale
at the lesser of its carrying value or fair value less estimated costs to sell.
74

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land
inventories for indicators of potential impairment. If indicators of impairment are present for a community, the Company
performs an impairment evaluation of the community, which includes an analysis to determine if the undiscounted cash
flows estimated to be generated by those assets are less than their carrying amounts. The Company’s estimate of
undiscounted cash flows from communities analyzed may change and could result in a future need to record impairment
charges to adjust the carrying value of these assets to their estimated fair value. There are several factors which could
lead to changes in the estimates of undiscounted future cash flows for a given community. The most significant of these
includes pricing and incentive levels actually realized by the community, the rate at which the homes are sold and the
costs incurred to develop the lots and construct the homes. Pricing and incentive levels are often interrelated with sales
pace in a community, such that a price reduction is typically expected to increase the sales pace. Further, both of these
factors are heavily influenced by the competitive pressures facing a given community from both new and existing homes.
If conditions in the broader economy, homebuilding industry or specific markets in which the Company operates worsen,
and as the Company evaluates specific community pricing and incentives, construction and development plans, and its
overall land sale strategies, it may be required to evaluate additional communities for potential impairment. This may
result in impairment charges which could be significant.
When events or circumstances indicate that the carrying values on finished homes in substantially completed
communities and completed rental properties are greater than the fair values less estimated costs to sell these homes,
impairment charges are also recorded. The key assumptions relating to inventory valuations are impacted by local market
and economic conditions and are inherently uncertain. Due to uncertainties in the estimation process, actual results could
differ from such estimates. See Note C.
Capitalized Interest
The Company capitalizes interest costs incurred to inventory during active development and construction (active
inventory). Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. During
periods in which the Company’s active inventory is lower than its debt level, a portion of the interest incurred is reflected
as interest expense in the period incurred. During fiscal 2024, 2023 and 2022, the Company’s active inventory exceeded
its debt level, and all interest incurred was capitalized to inventory. See Note E.
Land and Lot Purchase Contracts
The Company enters into land and lot purchase contracts to acquire land or lots for the construction of homes.
Under these contracts, the Company will fund a stated deposit in consideration for the right, but not the obligation, to
purchase land or lots at a future point in time with predetermined terms. Under the terms of many of the purchase
contracts, the deposits are not refundable in the event the Company elects to terminate the contract. Land purchase
contract deposits and capitalized pre-acquisition costs are expensed to cost of sales when the Company believes it is
probable that it will not acquire the property under contract and will not be able to recover these costs through other
means. See Notes C and L.
Variable Interests
Land purchase contracts can result in the creation of a variable interest in the entity holding the land parcel under
contract. There was one variable interest entity consolidated for $118.8 million in the Company’s balance sheet at
September 30, 2023. During fiscal 2024, the Company determined that it no longer controlled the activities that most
significantly impacted the variable interest entity’s economic performance, and the variable interest entity is no longer
consolidated.
The maximum exposure to losses related to the Company’s unconsolidated variable interest entities is limited to the
amounts of the Company’s related deposits. At September 30, 2024 and 2023, the deposits related to these contracts
totaled $1.9 billion and $1.6 billion, respectively, and are included in other assets in the consolidated balance sheets.
75

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Repairs and maintenance costs are
expensed as incurred. Depreciation generally is recorded using the straight-line method over the estimated useful life of
the asset. The depreciable life of model home furniture is 2 years, depreciable lives of other furniture and equipment
typically range from 2 to 5 years, and depreciable lives of buildings and improvements typically range from 5 to 30
years. See Note F.
Business Acquisitions
The Company accounts for acquisitions of businesses by allocating the purchase price of the business to the various
assets acquired and liabilities assumed at their respective fair values. Any excess of the purchase price over the estimated
fair values of the identifiable net assets acquired is recorded as goodwill. Significant judgment is often required in
estimating the fair value of assets acquired, particularly intangible assets. These estimates and assumptions are based on
historical experience, information obtained from the management of the acquired companies and the Company’s
estimates of significant assumptions that a market participant would use when determining fair value. While the
Company believes the estimates and assumptions are reasonable, they are inherently uncertain. Unanticipated market or
macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and
assumptions. There were no material business acquisitions made in fiscal 2024.
Goodwill
The Company records goodwill associated with its acquisitions of businesses when the purchase price of the
business exceeds the fair value of the identifiable net assets acquired. Goodwill balances are evaluated for potential
impairment on at least an annual basis by performing a qualitative assessment to determine whether the existence of
events or circumstances leads to a determination that it is more likely than not that the fair value of an operating segment
with goodwill is less than its carrying amount. If the qualitative assessment indicates that additional impairment testing is
required, then a quantitative assessment is performed to determine the operating segment’s fair value. The estimated fair
value is determined by discounting the future cash flows of the operating segment to present value. If the carrying value
of the operating segment exceeds its fair value, the Company records a goodwill impairment by the amount that an
operating segment’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. As a result of
the qualitative assessments performed in fiscal 2024, 2023 and 2022, no impairment charges were indicated or recorded.
The Company’s goodwill balances by reporting segment were as follows:
September 30,
2024
2023
(In millions)
Northwest .............................................................................................................................. $
2.2 $
2.2
Southwest ..............................................................................................................................
—
—
South Central.........................................................................................................................
15.9
15.9
Southeast................................................................................................................................
6.0
6.0
East ........................................................................................................................................
60.5
60.5
North......................................................................................................................................
49.7
49.7
Forestar .................................................................................................................................
29.2
29.2
Total goodwill .................................................................................................................. $
163.5 $
163.5
76

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Warranty Claims
The Company provides its homebuyers with a ten-year limited warranty for major defects in structural elements
such as framing components and foundation systems, a two-year limited warranty on major mechanical systems and a
one-year limited warranty on other construction components. Since the Company subcontracts its construction work to
subcontractors who typically provide it with an indemnity and a certificate of insurance prior to receiving payments for
their work, claims relating to workmanship and materials are generally the primary responsibility of the subcontractors.
Warranty liabilities have been established by charging cost of sales for each home delivered. The amounts charged are
based on management’s estimate of the warranty-related costs expected to be incurred in the future. The Company’s
warranty liability is based upon historical warranty cost experience in each market in which it operates. See Note L.
Legal Claims and Insurance
The Company records expenses and liabilities for legal claims related to construction defect matters, personal
injury claims, employment matters, land development issues, contract disputes and other matters. The amounts recorded
for these contingencies are based on the estimated costs of pending claims and the estimated costs of anticipated future
claims related to previously closed homes. The Company estimates and records receivables under its applicable
insurance policies for these legal claims when recovery is probable. However, because the self-insured retentions under
these policies are significant, the Company anticipates it will largely be self-insured. Additionally, the Company may
have the ability to recover a portion of its losses from its subcontractors and their insurance carriers when the Company
has been named as an additional insured on their insurance policies. See Note L.
Advertising Costs
The Company expenses advertising costs as incurred. Advertising expense was approximately $72.3 million, $64.7
million and $41.7 million in fiscal 2024, 2023 and 2022, respectively, and is included in SG&A expense in the
consolidated statements of operations.
Income Taxes
The Company’s income tax expense is calculated using the asset and liability method, under which deferred tax
assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between
the financial statement amounts of assets and liabilities and their respective tax bases and attributable to net operating
losses and tax credit carryforwards. When assessing the realizability of deferred tax assets, management considers
whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. The realization of
deferred tax assets is dependent upon the generation of sufficient taxable income in future periods and in the jurisdictions
in which those temporary differences become deductible. The Company records a valuation allowance when it
determines it is more likely than not that a portion of the deferred tax assets will not be realized. The accounting for
deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these
future results could have a material impact on the Company’s consolidated results of operations or financial position.
Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation of the
Company’s deferred tax assets and liabilities. See Note H.
Interest and penalties related to unrecognized tax benefits are recognized in the financial statements as a component
of income tax expense. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its
uncertain tax positions on a quarterly basis. The evaluations are based upon a number of factors, including changes in
facts or circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective
settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in increases
or decreases in the Company’s income tax expense in the period in which the change is made. The Company had no
unrecognized tax benefits at September 30, 2024 and $1.4 million of unrecognized tax benefits at September 30, 2023.
77

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Earnings Per Share
Basic earnings per share is based on the weighted average number of shares of common stock outstanding during
each year. Diluted earnings per share is based on the weighted average number of shares of common stock and dilutive
securities outstanding during each year. See Note I.
Stock-Based Compensation
The Company’s stockholders formally authorize shares of its common stock to be available for future grants of
stock-based compensation awards. From time to time, the Compensation Committee of the Company’s Board of
Directors (Compensation Committee) authorizes the grant of stock-based compensation to its employees and directors
from these available shares. At September 30, 2024, all outstanding stock-based compensation awards were in the form
of restricted stock units. Grants of restricted stock units vest over a certain number of years as determined by the
Compensation Committee. Restricted stock units outstanding at September 30, 2024 have a remaining vesting period up
to 4.9 years. Compensation expense for restricted stock unit awards is based on the fair value of the award (the
Company’s stock price on the date of grant), and is recognized on a straight-line basis over the remaining vesting period.
See Note K.
Fair Value Measurements
The Financial Accounting Standards Board’s authoritative guidance for fair value measurements establishes a
three-level hierarchy based upon the inputs to the valuation model of an asset or liability. When available, the Company
uses quoted market prices in active markets to determine fair value. The Company considers the principal market and
nonperformance risk associated with the Company’s counterparties when determining the fair value measurements, if
applicable. Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage servicing rights,
interest rate lock commitments and other derivative instruments on a recurring basis and are used for inventories, other
mortgage loans and real estate owned on a nonrecurring basis, when events and circumstances indicate that the carrying
value is not recoverable. See Note N.
Pending Accounting Standards
In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, “Segment Reporting -
Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosures. The
ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are
regularly provided to the chief operating decision maker and included within each reported measure of segment profit or
loss. It also requires disclosure of the amount and description of the composition of other segment items and interim
disclosures of a reportable segment’s profit or loss and assets. The standard is effective for the Company’s annual
periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026 on a retrospective basis
to all periods presented. This standard will impact the Company’s disclosures but will not impact its consolidated
financial statements.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures,”
which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the
effective tax rate reconciliation and modifies other income tax related disclosures. The standard is effective for the
Company beginning October 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of
this standard on its consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income -
Expense Disaggregation Disclosures,” which requires disclosure of certain costs and expenses on an interim and annual
basis in the notes to the financial statements. The standard is effective for the Company’s annual periods beginning in
fiscal 2028 and interim periods beginning in the first quarter of fiscal 2029, with early adoption permitted. The Company
is currently evaluating the impact this standard will have on its disclosures.
78

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE B – SEGMENT INFORMATION
The Company’s operating segments are its 88 homebuilding divisions, its rental operations, its majority-owned Forestar
residential lot development operations, its financial services operations and its other business activities. The Company’s
reporting segments are its homebuilding reporting segments, its Forestar lot development segment, its financial services
segment and its rental operations segment.
Homebuilding
The homebuilding operating segments are aggregated into six reporting segments. The reporting segments and the states
in which the Company has homebuilding operations are as follows:
Northwest:
Colorado, Oregon, Utah and Washington
Southwest:
Arizona, California, Hawaii, Nevada and New Mexico
South Central:
Arkansas, Oklahoma and Texas
Southeast:
Alabama, Florida, Louisiana and Mississippi
East:
Georgia, North Carolina, South Carolina and Tennessee
North:
Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri,
Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia and Wisconsin
Homebuilding is the Company’s core business, generating 92%, 90% and 95% of consolidated revenues in fiscal 2024,
2023 and 2022, respectively. The Company’s homebuilding divisions are primarily engaged in the acquisition and development
of land and the construction and sale of residential homes, with operations in 125 markets across 36 states. Most of the revenue
generated by the Company’s homebuilding operations is from the sale of completed homes and to a lesser extent from the sale
of land and lots.
Rental
The Company’s rental segment consists of single-family and multi-family rental operations. The single-family rental
operations construct and lease single-family homes within a community and then generally market each community for a bulk
sale of rental homes. The multi-family rental operations develop, construct, lease and sell residential rental properties that are
primarily apartment communities.
Forestar
The Forestar segment is a residential lot development company with operations in 59 markets across 24 states. The
Company’s homebuilding divisions acquire finished lots from Forestar in accordance with the master supply agreement
between the two companies. Forestar’s segment results are presented on their historical cost basis, consistent with the manner in
which management evaluates segment performance.
Financial Services
The Company’s financial services segment provides mortgage financing and title agency services to homebuyers in many
of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and
selling mortgages and collecting fees for title insurance agency and closing services. The Company sells substantially all of the
mortgages it originates and the related servicing rights to third-party purchasers, typically within 60 days of origination.
Other
In addition to its homebuilding, rental, Forestar and financial services operations, the Company engages in other business
activities through its subsidiaries. The Company conducts insurance-related operations, owns water rights and other water
related assets and owns non-residential real estate including ranch land and improvements. The results of these operations are
immaterial for separate reporting and therefore are grouped together and presented in the Eliminations and Other column in the
tables that follow.
79

_____________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The accounting policies of the reporting segments are described throughout Note A. Financial information relating to the
Company’s reporting segments is as follows:
September 30, 2024
Financial
Eliminations
Homebuilding
Rental
Forestar
Services
and Other (1)
Consolidated
(In millions)
Assets
Cash and cash equivalents....................... $
3,623.0
$
157.6
$
481.2
$
242.3
$
12.3
$
4,516.4
Restricted cash.........................................
4.8
2.2
—
20.6
—
27.6
Inventories:
Construction in progress and finished
homes...............................................
8,986.1
—
—
—
(110.3)
8,875.8
Residential land and lots —
developed and under development ..
11,011.7
—
2,126.1
—
(189.7)
12,948.1
Land held for development..................
20.5
—
140.1
—
—
160.6
Land held for sale ................................
12.7
—
—
—
—
12.7
Rental properties..................................
—
2,902.4
—
—
3.6
2,906.0
20,031.0
2,902.4
2,266.2
—
(296.4)
24,903.2
Mortgage loans held for sale ...................
—
—
—
2,477.5
—
2,477.5
Deferred income taxes, net......................
211.6
(14.7)
—
—
(29.4)
167.5
Property and equipment, net....................
500.2
1.1
7.1
4.0
18.6
531.0
Other assets..............................................
2,976.5
74.5
85.6
212.3
(31.3)
3,317.6
Goodwill..................................................
134.3
—
—
—
29.2
163.5
$
27,481.4
$
3,123.1
$
2,840.1
$
2,956.7
$
(297.0) $
36,104.3
Liabilities
Accounts payable .................................... $
1,046.1
$
474.2
$
85.9
$
0.8
$
(261.5) $ 1,345.5
Accrued expenses and other liabilities ....
2,552.0
67.8
452.8
234.6
(290.5)
3,016.7
Notes payable ..........................................
2,926.8
750.7
706.4
1,533.8
—
5,917.7
$
6,524.9
$
1,292.7
$
1,245.1
$
1,769.2
$
(552.0) $
10,279.9
(1) Amounts include the balances of the Company’s other businesses and the elimination of intercompany transactions.
80

_____________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
September 30, 2023
Financial
Eliminations
Homebuilding
Rental
Forestar
Services
and Other (1)
Consolidated
(In millions)
Assets
Cash and cash equivalents....................... $
2,920.2
$
136.1
$
616.0
$
189.1
$
12.2
$
3,873.6
Restricted cash.........................................
6.5
3.3
—
16.7
—
26.5
Inventories:
Construction in progress and finished
homes...............................................
9,134.3
—
—
—
(132.9)
9,001.4
Residential land and lots —
developed and under development ..
8,992.3
—
1,760.8
—
(131.2)
10,621.9
Land held for development..................
20.5
—
29.5
—
—
50.0
Land held for sale ................................
8.7
—
—
—
—
8.7
Rental properties..................................
—
2,708.4
—
—
(17.1)
2,691.3
18,155.8
2,708.4
1,790.3
—
(281.2)
22,373.3
Mortgage loans held for sale ...................
—
—
—
2,519.9
—
2,519.9
Deferred income taxes, net......................
229.8
(19.9)
—
—
(22.7)
187.2
Property and equipment, net....................
415.0
2.4
5.9
4.1
18.0
445.4
Other assets..............................................
2,838.5
29.8
58.5
250.3
(184.1)
2,993.0
Goodwill..................................................
134.3
—
—
—
29.2
163.5
$
24,700.1
$
2,860.1
$
2,470.7
$
2,980.1
$
(428.6) $
32,582.4
Liabilities
Accounts payable .................................... $
1,033.7
$
698.6
$
68.4
$
0.1
$
(554.6) $
1,246.2
Accrued expenses and other liabilities ....
2,585.5
43.2
337.4
280.4
(142.7)
3,103.8
Notes payable ..........................................
2,329.9
400.0
695.0
1,669.6
—
5,094.5
$
5,949.1
$
1,141.8
$
1,100.8
$
1,950.1
$
(697.3) $
9,444.5
(1) Amounts include the balances of the Company’s other businesses, the elimination of intercompany transactions and, to a lesser
extent, purchase accounting adjustments.
81

_____________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Year Ended September 30, 2024
Financial
Eliminations
Homebuilding
Rental
Forestar
Services
and Other (1)
Consolidated
(In millions)
Revenues
Home sales .............................................. $
33,903.6
$
—
$
—
$
—
$
—
$
33,903.6
Land/lot sales and other...........................
58.2
—
1,509.4
—
(1,237.4)
330.2
Rental property sales ...............................
—
1,685.1
—
—
—
1,685.1
Financial services ....................................
—
—
—
882.5
—
882.5
33,961.8
1,685.1
1,509.4
882.5
(1,237.4)
36,801.4
Cost of sales
Home sales (2).........................................
25,952.1
—
—
—
(262.9)
25,689.2
Land/lot sales and other...........................
40.0
—
1,145.9
—
(989.8)
196.1
Rental property sales ...............................
—
1,315.9
—
—
(14.0)
1,301.9
Inventory and land option charges ..........
68.9
5.8
4.1
—
—
78.8
26,061.0
1,321.7
1,150.0
—
(1,266.7)
27,266.0
Selling, general and
administrative expense ............................
2,553.3
236.2
118.5
672.4
19.1
3,599.5
Other (income) expense ..............................
(107.6)
(101.5)
(29.2)
(101.1)
(9.4)
(348.8)
Income before income taxes........................ $
5,455.1
$
228.7
$
270.1
$
311.2
$
19.6
$
6,284.7
Summary Cash Flow Information
Depreciation and amortization ................ $
79.4
$
2.4
$
3.0
$
1.8
$
0.5
$
87.1
Cash provided by (used in)
operating activities............................... $
2,239.0
$
(231.0) $
(158.6) $
281.6
$
58.8
$
2,189.8
(1) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding
segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding
segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to
homebuyers.
82

_____________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Year Ended September 30, 2023
Financial
Eliminations
Homebuilding
Rental
Forestar
Services
and Other (1)
Consolidated
(In millions)
Revenues
Home sales .............................................. $
31,641.0
$
—
$
—
$
—
$
—
$
31,641.0
Land/lot sales and other...........................
102.2
—
1,436.9
—
(1,126.7)
412.4
Rental property sales ...............................
—
2,605.5
—
—
—
2,605.5
Financial services ....................................
—
—
—
801.5
—
801.5
31,743.2
2,605.5
1,436.9
801.5
(1,126.7)
35,460.4
Cost of sales
Home sales (2).........................................
24,201.3
—
—
—
(248.5)
23,952.8
Land/lot sales and other...........................
53.8
—
1,108.9
—
(959.9)
202.8
Rental property sales ...............................
—
1,886.8
—
—
(12.7)
1,874.1
Inventory and land option charges ..........
60.7
6.7
24.0
—
(11.1)
80.3
24,315.8
1,893.5
1,132.9
—
(1,232.2)
26,110.0
Selling, general and
administrative expense ............................
2,239.9
290.2
97.7
594.9
26.1
3,248.8
Other (income) expense ..............................
(78.8)
(102.4)
(15.3)
(76.7)
60.1
(213.1)
Income before income taxes........................ $
5,266.3
$
524.2
$
221.6
$
283.3
$
19.3
$
6,314.7
Summary Cash Flow Information
Depreciation and amortization ................ $
64.0
$
2.4
$
3.0
$
2.1
$
20.1
$
91.6
Cash provided by operating activities ..... $
3,078.4
$
739.2
$
364.1
$
13.2
$
109.2
$
4,304.1
(1) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding
segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding
segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to
homebuyers.
83

_____________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Year Ended September 30, 2022
Financial
Eliminations
Homebuilding
Rental
Forestar
Services
and Other (1)
Consolidated
(In millions)
Revenues
Home sales .............................................. $
31,861.7
$
—
$
—
$
—
$
—
$
31,861.7
Land/lot sales and other...........................
61.4
—
1,519.1
—
(1,267.4)
313.1
Rental property sales ...............................
—
510.2
—
—
—
510.2
Financial services ....................................
—
—
—
795.0
—
795.0
31,923.1
510.2
1,519.1
795.0
(1,267.4)
33,480.0
Cost of sales
Home sales (2).........................................
22,715.6
—
—
—
(197.9)
22,517.7
Land/lot sales and other...........................
39.1
—
1,182.7
—
(1,072.3)
149.5
Rental property sales ...............................
—
243.4
—
—
(5.1)
238.3
Inventory and land option charges ..........
57.2
0.8
12.4
—
—
70.4
22,811.9
244.2
1,195.1
—
(1,275.3)
22,975.9
Selling, general and
administrative expense ............................
2,186.7
91.1
93.6
547.6
14.7
2,933.7
Other (income) expense ..............................
(16.4)
(27.1)
(5.4)
(43.2)
32.8
(59.3)
Income before income taxes........................ $
6,940.9
$
202.0
$
235.8
$
290.6
$
(39.6) $
7,629.7
Summary Cash Flow Information
Depreciation and amortization ................ $
62.5
$
1.0
$
2.7
$
1.9
$
13.3
$
81.4
Cash provided by (used in)
operating activities............................... $
1,916.7
$
(1,391.0) $
108.7
$
(10.5) $
(62.1) $
561.8
(1) Amounts include the results of the Company’s other businesses and the elimination of intercompany transactions.
(2) Amount in the Eliminations and Other column represents the recognition of profit on lots sold from Forestar to the homebuilding
segment. Intercompany profit is eliminated in the consolidated financial statements when Forestar sells lots to the homebuilding
segment and is recognized in the consolidated financial statements when the homebuilding segment closes homes on the lots to
homebuyers.
84

______________________________________________
______________________________________________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Homebuilding Inventories by Reporting Segment (1)
September 30,
2024
2023
(In millions)
Northwest................................................................................................................................ $
1,935.2 $
1,907.5
Southwest................................................................................................................................
3,278.9
3,133.0
South Central ..........................................................................................................................
3,728.0
3,810.5
Southeast.................................................................................................................................
4,284.5
3,958.5
East..........................................................................................................................................
3,978.2
3,024.7
North .......................................................................................................................................
2,551.2
2,078.0
Corporate and unallocated (2).................................................................................................
275.0
243.6
$
20,031.0 $
18,155.8
(1)
Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief
operating decision makers.
(2)
Corporate and unallocated consists primarily of homebuilding capitalized interest and property taxes.
Homebuilding Results by Reporting Segment
Year Ended September 30,
2024
2023
2022
(In millions)
Revenues
Northwest .................................................................................................... $
2,761.7 $
2,582.4 $
2,658.4
Southwest ....................................................................................................
4,914.7
4,282.8
4,840.7
South Central...............................................................................................
7,652.1
7,612.6
8,192.3
Southeast .....................................................................................................
8,876.8
8,760.8
7,951.2
East..............................................................................................................
6,073.1
5,325.3
5,318.1
North ...........................................................................................................
3,683.4
3,179.3
2,962.4
$
33,961.8 $
31,743.2 $
31,923.1
Inventory and Land Option Charges
Northwest .................................................................................................... $
4.4 $
6.6 $
7.0
Southwest ....................................................................................................
12.7
11.3
6.3
South Central...............................................................................................
11.4
7.6
9.9
Southeast .....................................................................................................
18.4
14.6
13.5
East..............................................................................................................
11.9
8.4
12.1
North ...........................................................................................................
10.1
12.2
8.4
$
68.9 $
60.7 $
57.2
Income before Income Taxes (1)
Northwest .................................................................................................... $
420.8 $
391.1 $
560.8
Southwest ....................................................................................................
703.5
489.3
968.3
South Central...............................................................................................
1,331.4
1,388.3
1,910.7
Southeast .....................................................................................................
1,441.4
1,711.1
1,918.5
East..............................................................................................................
1,059.6
935.7
1,126.3
North ...........................................................................................................
498.4
350.8
456.3
$
5,455.1 $
5,266.3 $
6,940.9
(1)
Expenses maintained at the corporate level consist primarily of homebuilding interest and property taxes, which are capitalized and
amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization
of capitalized interest and property taxes is allocated to each homebuilding segment based on the segment’s cost of sales, while
expenses associated with the corporate office are allocated to each homebuilding segment based on the segment’s inventory balances.
85

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE C – INVENTORIES
At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land
inventories for indicators of potential impairment and performs detailed impairment evaluations and analyses when
necessary. As of September 30, 2024, the Company performed detailed impairment evaluations of communities and land
inventories and determined that communities with a combined carrying value of $76.4 million were impaired. As a
result, impairment charges of $8.3 million were recorded during the three months ended September 30, 2024 to reduce
the carrying value of the related inventory to fair value. During fiscal 2024, impairment charges totaled $14.0 million
compared to $19.0 million and $3.8 million in fiscal 2023 and 2022, respectively.
During fiscal 2024, 2023 and 2022, earnest money and pre-acquisition cost write-offs related to land purchase
contracts that the Company has terminated or expects to terminate were $64.8 million, $61.3 million and $66.6 million,
respectively. Inventory impairments and land option charges are included in cost of sales in the consolidated statements
of operations.
86

_____________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE D – NOTES PAYABLE
The Company’s notes payable at their carrying amounts consist of the following:
September 30,
2024
2023
(In millions)
Homebuilding
Revolving credit facility........................................................................................... $
— $
—
2.5% senior notes due 2024 (1)................................................................................
500.0
499.0
2.6% senior notes due 2025 (1)................................................................................
499.0
498.0
1.3% senior notes due 2026 (1)................................................................................
597.7
596.6
1.4% senior notes due 2027 (1)................................................................................
497.4
496.5
5.0% senior notes due 2034 (1)................................................................................
686.5
—
Other notes ...............................................................................................................
146.2
239.8
2,926.8
2,329.9
Rental
Revolving credit facility...........................................................................................
745.0
400.0
Other notes ...............................................................................................................
5.7
—
750.7
400.0
Forestar
Revolving credit facility...........................................................................................
—
—
3.85% senior notes due 2026 (2)..............................................................................
398.4
397.4
5.0% senior notes due 2028 (2)................................................................................
298.1
297.6
Other notes ...............................................................................................................
9.9
—
706.4
695.0
Financial Services
Mortgage repurchase facilities:
Committed facility..............................................................................................
1,229.3
1,373.3
Uncommitted facility ..........................................................................................
304.5
296.3
1,533.8
1,669.6
Total notes payable ................................................................................. $
5,917.7 $
5,094.5
(1)
Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $11.7 million and
$8.4 million at September 30, 2024 and 2023, respectively.
(2)
Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $3.5 million and $5.0 million
at September 30, 2024 and 2023, respectively.
As of September 30, 2024, maturities of consolidated notes payable, assuming the mortgage repurchase facility is
not extended or renewed, are $2.2 billion in fiscal 2025, $910.3 million in fiscal 2026, $600.4 million in fiscal 2027, $1.5
billion in fiscal 2028, $17.5 million in fiscal 2029 and $700 million thereafter.
87

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Homebuilding
The Company has a $2.19 billion senior unsecured homebuilding revolving credit facility with an uncommitted
accordion feature that could increase the size of the facility to $3.0 billion, subject to certain conditions and availability
of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to
100% of the total revolving credit commitments. Letters of credit issued under the facility reduce the available borrowing
capacity. The maturity date of the facility is October 28, 2027. At September 30, 2024, there were no borrowings
outstanding and $210.1 million of letters of credit issued under the revolving credit facility, resulting in available
capacity of $1.98 billion.
The Company’s homebuilding revolving credit facility imposes restrictions on its operations and activities,
including requiring the maintenance of a maximum allowable leverage ratio and a borrowing base restriction if the
leverage ratio exceeds a certain level. These covenants are measured as defined in the credit agreement governing the
facility and are reported to the lenders quarterly. A failure to comply with these financial covenants could allow the
lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding
borrowings to become due and payable prior to maturity. The credit agreement governing the facility and the indenture
governing the senior notes also impose restrictions on the creation of secured debt and liens. At September 30, 2024, the
Company was in compliance with all of the covenants, limitations and restrictions of its homebuilding revolving credit
facility and public debt obligations.
D.R. Horton has an automatically effective universal shelf registration statement filed with the SEC in July 2024,
registering debt and equity securities that the Company may issue from time to time in amounts to be determined.
In August 2024, the Company issued $700 million principal amount of 5.0% senior notes due October 15, 2034,
with interest payable semi-annually. The annual effective interest rate of these notes after giving effect to the
amortization of the discount and financing costs is 5.2%.
The key terms of the Company’s homebuilding senior unsecured notes outstanding as of September 30, 2024 are
summarized below.
Redeemable
Notes Payable
Principal
Amount
Date Issued
Date Due
Prior to
Maturity (1)
Effective
Interest Rate (2)
(In millions)
2.5% senior notes ................
$500
October 2019
October 15, 2024
Yes
2.7%
2.6% senior notes ................
$500
May 2020
October 15, 2025
Yes
2.8%
1.3% senior notes ................
$600
August 2021
October 15, 2026
Yes
1.5%
1.4% senior notes ................
$500
October 2020
October 15, 2027
Yes
1.6%
5.0% senior notes ................
$700
August 2024
October 15, 2034
Yes
5.2%
___________
(1) The Company may redeem the notes in whole at any time or in part from time to time, at a redemption price equal to the
greater of 100% of their principal amount or the present value of the remaining scheduled payments discounted to the
redemption date, plus accrued and unpaid interest. In October 2024, the Company repaid $500 million principal amount of
its 2.5% senior notes at maturity. The 2.6% senior notes and the 1.3% senior notes are redeemable at a redemption price of
100% of their principal amount, plus accrued and unpaid interest, on or after the date that is one month prior to the final
maturity date of the notes. The 1.4% senior notes are redeemable at a redemption price of 100% of their principal amount,
plus accrued and unpaid interest, on or after the date that is two months prior to the final maturity of the notes. The 5.0%
senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on
or after the date that is three months prior to the final maturity of the notes.
(2) Interest is payable semi-annually on each of the series of senior notes. The annual effective interest rate is calculated after
giving effect to the amortization of debt issuance costs and the discount, if applicable.
88

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
All series of homebuilding senior notes and borrowings under the homebuilding revolving credit facility are senior
obligations and rank pari passu in right of payment to all existing and future unsecured indebtedness and senior to all
existing and future indebtedness expressly subordinated to them. The homebuilding senior notes and borrowings under
the homebuilding revolving credit facility are guaranteed by entities that hold approximately 76% of the Company’s
assets at September 30, 2024. Upon the occurrence of both a change of control of the Company and a ratings downgrade
event, as defined in the indenture governing its senior notes, the Company would be required in certain circumstances to
offer to repurchase these notes at 101% of their principal amount, along with accrued and unpaid interest. Also, a change
of control as defined in the revolving credit facility would constitute an event of default under the revolving credit
facility, which could result in the acceleration of any borrowings outstanding under the facility and the termination of the
commitments thereunder.
The Company’s homebuilding revolving credit facility and homebuilding senior unsecured notes are guaranteed by
D.R. Horton, Inc.’s significant wholly-owned homebuilding subsidiaries.
In July 2024, the Board of Directors authorized the repurchase of up to $500 million of the Company’s debt
securities. The authorization has no expiration date. All of the $500 million authorization was remaining at
September 30, 2024.
Rental
The Company’s rental subsidiary, DRH Rental, has a $1.05 billion senior unsecured revolving credit facility with
an uncommitted accordion feature that could increase the size of the facility to $2.0 billion, subject to certain conditions
and availability of additional bank commitments. Availability under the rental revolving credit facility is subject to a
borrowing base calculation based on the book value of DRH Rental’s real estate assets and unrestricted cash. The facility
also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 million and 50% of the total
revolving credit commitments. The maturity date of the facility is October 10, 2027. Borrowings and repayments under
the facility totaled $1.4 billion and $1.1 billion, respectively, during fiscal 2024. At September 30, 2024, there were
$745 million of borrowings outstanding at a 6.9% annual interest rate and no letters of credit issued under the facility,
resulting in available capacity of $305 million.
The rental revolving credit facility includes customary affirmative and negative covenants, events of default and
financial covenants. The financial covenants require DRH Rental to maintain a minimum level of tangible net worth, a
minimum level of liquidity and a maximum allowable leverage ratio. These covenants are measured as defined in the
credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial
covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause
any outstanding borrowings to become due and payable prior to maturity. At September 30, 2024, DRH Rental was in
compliance with all of the covenants, limitations and restrictions of its revolving credit facility.
The rental revolving credit facility is guaranteed by DRH Rental’s wholly-owned subsidiaries that are not
immaterial subsidiaries and have not been designated as unrestricted subsidiaries. The rental revolving credit facility is
not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of the Company’s homebuilding,
Forestar or financial services operations.
Forestar
Forestar has a $410 million senior unsecured revolving credit facility with an uncommitted accordion feature that
could increase the size of the facility to $600 million, subject to certain conditions and availability of additional bank
commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100
million and 50% of the total revolving credit commitments. Borrowings under the revolving credit facility are subject to
a borrowing base calculation based on the book value of Forestar’s real estate assets and unrestricted cash. Letters of
credit issued under the facility reduce the available borrowing capacity. The maturity date of the facility is October 28,
2026. At September 30, 2024, there were no borrowings outstanding and $32.8 million of letters of credit issued under
the revolving credit facility, resulting in available capacity of $377.2 million.
89

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
As of September 30, 2024, Forestar had $700 million principal amount of senior notes issued pursuant to Rule
144A and Regulation S under the Securities Act of 1933, as amended, which represent unsecured obligations of Forestar.
These notes include $400 million principal amount of 3.85% senior notes that mature May 15, 2026 and $300 million
principal amount of 5.0% senior notes that mature March 1, 2028. The annual effective interest rate of the notes after
giving effect to the amortization of financing costs is 4.1% and 5.2%, respectively. Forestar’s senior notes may be
redeemed prior to maturity, subject to certain limitations and premiums defined in the indenture agreements.
The Forestar revolving credit facility includes customary affirmative and negative covenants, events of default and
financial covenants. The financial covenants require Forestar to maintain a minimum level of tangible net worth, a
minimum level of liquidity and a maximum allowable leverage ratio. These covenants are measured as defined in the
credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial
covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause
any outstanding borrowings to become due and payable prior to maturity. At September 30, 2024, Forestar was in
compliance with all of the covenants, limitations and restrictions of its revolving credit facility and senior note
obligations.
Forestar’s revolving credit facility and its senior unsecured notes are guaranteed by Forestar’s wholly-owned
subsidiaries that are not immaterial subsidiaries and have not been designated as unrestricted subsidiaries. They are not
guaranteed by D.R. Horton, Inc. or any of the subsidiaries that guarantee the debt of the Company’s homebuilding, rental
or financial services operations.
In April 2020, Forestar’s Board of Directors authorized the repurchase of up to $30 million of Forestar’s debt
securities. The authorization has no expiration date. All of the $30 million authorization was remaining at September 30,
2024.
Financial Services
The Company’s mortgage subsidiary, DHI Mortgage, has two mortgage repurchase facilities, one of which is
committed and the other of which is uncommitted, that provide financing and liquidity to DHI Mortgage by facilitating
purchase transactions in which DHI Mortgage transfers eligible loans to counterparties upon receipt of funds from the
counterparties. DHI Mortgage then has the right and obligation to repurchase the purchased loans upon their sale to third
party purchasers in the secondary market or within specified time frames in accordance with the terms of the mortgage
repurchase facilities.
In August 2024, the committed mortgage repurchase facility was amended to extend its maturity date to May 9,
2025. The facility has a total capacity of $1.6 billion, which can be increased to $2.0 billion subject to the availability of
additional commitments. At September 30, 2024, DHI Mortgage had an obligation of $1.2 billion under the committed
mortgage repurchase facility at a 6.5% annual interest rate.
At September 30, 2024, the uncommitted mortgage repurchase facility had a borrowing capacity of $500 million,
of which DHI Mortgage had an obligation of $304.5 million at a 6.1% annual interest rate.
As of September 30, 2024, $2.09 billion of mortgage loans held for sale with a collateral value of $2.05 billion
were pledged under the committed mortgage repurchase facility, and $322.3 million of mortgage loans held for sale with
a collateral value of $310.8 million were pledged under the uncommitted mortgage repurchase facility.
The facilities contain financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its
maximum allowable indebtedness to tangible net worth ratio and its minimum required liquidity. At September 30, 2024,
DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facilities.
These mortgage repurchase facilities are not guaranteed by D.R. Horton, Inc. or any of the subsidiaries that
guarantee the debt of the Company’s homebuilding, rental or Forestar operations.
90

_________________________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE E – CAPITALIZED INTEREST
The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the years
ended September 30, 2024, 2023 and 2022.
Year Ended September 30,
2024
2023
2022
(In millions)
Capitalized interest, beginning of year ....................................................... $
286.4 $
237.4 $
217.7
Interest incurred (1).....................................................................................
203.7
203.5
162.5
Interest charged to cost of sales ..................................................................
(135.0)
(154.5)
(142.8)
Capitalized interest, end of year.................................................................. $
355.1 $
286.4 $
237.4
(1)
Interest incurred in fiscal 2024, 2023 and 2022 includes interest on the Company's mortgage repurchase facilities of $58.6
million, $45.9 million and $18.9 million, respectively, and Forestar interest of $32.7 million, $32.8 million and $32.9 million,
respectively. Interest incurred in fiscal 2024 and 2023 also includes interest on the rental revolving credit facility of $61.9
million and $56.0 million, respectively.
NOTE F – PROPERTY AND EQUIPMENT
The Company’s property and equipment balances and the related accumulated depreciation at September 30, 2024
and 2023 are summarized below.
September 30,
2024
2023
(In millions)
Homebuilding
Buildings and improvements ........................................................................................... $
483.2 $
414.6
Model home furniture ......................................................................................................
171.2
147.0
Office furniture and equipment........................................................................................
111.1
113.5
Land .................................................................................................................................
57.7
39.1
Accumulated depreciation ...............................................................................................
(323.0)
(299.2)
Total homebuilding..................................................................................................
500.2
415.0
Rental, net.............................................................................................................................
1.1
2.4
Forestar, net ..........................................................................................................................
7.1
5.9
Financial services, net...........................................................................................................
4.0
4.1
Other businesses and eliminations, net.................................................................................
18.6
18.0
Property and equipment, net .................................................................................... $
531.0 $
445.4
Depreciation expense was $78.5 million, $82.9 million and $72.0 million in fiscal 2024, 2023 and 2022,
respectively.
91

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE G – MORTGAGE LOANS
Mortgage Loans Held for Sale and Related Derivatives
Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying
property. The Company typically sells the servicing rights for the majority of loans when the loans are sold. Servicing
rights retained are typically sold within six months of loan origination. At September 30, 2024, mortgage loans held for
sale of $2.5 billion had an aggregate outstanding principal balance of $2.5 billion. At September 30, 2023, mortgage
loans held for sale of $2.5 billion had an aggregate outstanding principal balance of $2.6 billion. During the years ended
September 30, 2024, 2023 and 2022, mortgage loans originated totaled $24.0 billion, $21.2 billion and $19.5 billion,
respectively, and mortgage loans sold totaled $24.0 billion, $21.0 billion and $18.9 billion, respectively. The Company
had gains on sales of loans and servicing rights of $589.9 million, $538.4 million and $561.7 million during the years
ended September 30, 2024, 2023 and 2022, respectively. Net gains on sales of loans and servicing rights are included in
revenues in the consolidated statements of operations. During fiscal 2024, approximately 73% of the Company’s
mortgage loans were sold directly to Fannie Mae, Freddie Mac or into securities backed by Ginnie Mae, and 26% were
sold to one other major financial entity.
To manage the interest rate risk inherent in its mortgage operations, the Company hedges its risk using derivative
instruments, generally forward sales of mortgage-backed securities (MBS), which are referred to as “hedging
instruments” in the following discussion. The Company does not enter into or hold derivatives for trading or speculative
purposes.
Newly originated loans that have been closed but not committed to third-party purchasers are hedged to mitigate
the risk of changes in their fair value. Hedged loans are committed to third-party purchasers typically within three days
after origination. The notional amounts of the hedging instruments used to hedge mortgage loans held for sale may vary
in relationship to the underlying loan amounts, depending on the movements in the value of each hedging instrument
relative to the value of the underlying mortgage loans. The fair value change related to the hedging instruments generally
offsets the fair value change in the mortgage loans held for sale. The net fair value change, which for the years ended
September 30, 2024, 2023 and 2022 was not significant, is recognized in revenues in the consolidated statements of
operations. At September 30, 2024 and 2023, the Company’s mortgage loans held for sale that were not committed to
third-party purchasers totaled $1.9 billion and $1.7 billion, respectively.
The Company also uses hedging instruments as part of a program to offer below market interest rate financing to its
homebuyers. At September 30, 2024 and 2023, the Company had MBS totaling $637.9 million and $1.1 billion,
respectively, that did not yet have interest rate lock commitments (IRLCs) or closed loans created or assigned and
recorded an asset of $2.4 million and $15.7 million, respectively, for the fair value of such MBS position.
Loan Commitments and Related Derivatives
The Company is party to IRLCs, which are extended to borrowers who have applied for loan funding and meet
defined credit and underwriting criteria. At September 30, 2024 and 2023, the notional amount of IRLCs, which are
accounted for as derivative instruments recorded at fair value, totaled $2.0 billion and $2.7 billion, respectively.
The Company manages interest rate risk related to its IRLCs through the use of best-efforts whole loan delivery
commitments and hedging instruments. These instruments are considered derivatives in an economic hedge and are
accounted for at fair value with gains and losses recognized in revenues in the consolidated statements of operations. At
September 30, 2024 and 2023, the notional amount of best-efforts whole loan delivery commitments totaled $11.5
million and $18.9 million, respectively, and the notional amount of hedging instruments related to the remaining IRLCs
totaled $1.9 billion and $2.6 billion, respectively.
92

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Other Mortgage Loans and Loss Reserves
Mortgage loans are sold with limited recourse provisions derived from industry-standard representations and
warranties in the relevant agreements. These representations and warranties primarily involve the absence of
misrepresentations by the borrower or other parties, the appropriate underwriting of the loan and in some cases, a
required minimum number of payments to be made by the borrower. The Company generally does not retain any other
continuing interest related to mortgage loans sold in the secondary market. The majority of other mortgage loans consists
of loans repurchased due to these limited recourse obligations. Typically, these loans are impaired, and some result in
real estate owned through the foreclosure process. At September 30, 2024 and 2023, the Company’s total other mortgage
loans and real estate owned, before loss reserves, totaled $18.9 million and $14.9 million, respectively.
The Company has recorded reserves for estimated losses on other mortgage loans, real estate owned and future loan
repurchase obligations due to the limited recourse provisions, all of which are recorded as reductions of revenue. The
loss reserve for loan repurchase and settlement obligations is estimated based on historical experience, analysis of the
volume of mortgages originated, discussions with mortgage purchasers and current housing and credit market conditions,
as well as known and projected mortgage loan repurchase requests. The reserve balances at September 30, 2024 and
2023 totaled $12.3 million and $9.9 million, respectively.
Other mortgage loans and real estate owned net of the related loss reserves are included in other assets, while loan
repurchase obligations are included in accrued expenses and other liabilities in the Company’s consolidated balance
sheets.
93

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE H – INCOME TAXES
Income Tax Expense
The components of the Company’s income tax expense are as follows:
Year Ended September 30,
2024
2023
2022
(In millions)
Current tax expense:
Federal.............................................................................................. $
1,200.9 $
1,293.0 $
1,448.9
State ..................................................................................................
258.8
272.4
256.1
1,459.7
1,565.4
1,705.0
Deferred tax expense (benefit):
Federal..............................................................................................
15.5
(39.0)
21.2
State ..................................................................................................
3.5
(6.9)
7.9
19.0
(45.9)
29.1
Total income tax expense...................................................................... $
1,478.7 $
1,519.5 $
1,734.1
The Company’s effective tax rate was 23.5%, 24.1% and 22.7% in fiscal 2024, 2023 and 2022, respectively. The
effective tax rates for all years include an expense for state income taxes and tax benefits related to stock-based
compensation and federal energy efficient homes tax credits.
Reconciliation of Expected Income Tax Expense
Differences between income tax expense and tax computed by applying the federal statutory rate of 21% to income
before income taxes during each year is due to the following:
Year Ended September 30,
2024
2023
2022
(In millions)
Income taxes at federal statutory rate ................................................... $
1,319.8 $
1,326.1 $
1,602.2
Increase (decrease) in tax resulting from:
State income taxes, net of federal benefit.........................................
205.8
208.1
210.0
Valuation allowance .........................................................................
0.1
(3.1)
(2.1)
Tax credits ........................................................................................
(70.4)
(44.4)
(100.8)
Excess tax benefit from stock-based compensation .........................
(42.7)
(25.6)
(20.1)
Tax contingencies.............................................................................
(1.4)
(1.5)
—
Other.................................................................................................
67.5
59.9
44.9
Total income tax expense...................................................................... $
1,478.7 $
1,519.5 $
1,734.1
94

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Deferred Income Taxes
Deferred tax assets and liabilities reflect the tax consequences of temporary differences between the financial
statement bases of assets and liabilities and their tax bases, tax losses and credit carryforwards. Components of deferred
income taxes are summarized as follows:
September 30,
2024
2023
(In millions)
Deferred tax assets:
Inventory costs ............................................................................................................. $
87.3 $
67.8
Inventory impairments .................................................................................................
8.7
5.8
Warranty and construction defect costs .......................................................................
316.2
281.2
Net operating loss carryforwards .................................................................................
38.9
42.2
Tax credit carryforwards..............................................................................................
6.9
6.8
Incentive compensation plans ......................................................................................
93.7
88.0
Other ............................................................................................................................
14.0
7.0
Total deferred tax assets ...................................................................................................
565.7
498.8
Valuation allowance.....................................................................................................
(14.9)
(14.8)
Total deferred tax assets, net of valuation allowance.......................................................
550.8
484.0
Deferred tax liabilities:
Deferral of profit on home closings .............................................................................
226.4
163.6
Depreciation of fixed assets .........................................................................................
44.8
46.3
Deferral of income .......................................................................................................
29.3
23.4
Undistributed earnings of subsidiary ...........................................................................
77.4
51.7
Other ............................................................................................................................
5.4
11.8
Total deferred tax liabilities..............................................................................................
383.3
296.8
Deferred income taxes, net ............................................................................................... $
167.5 $
187.2
The Company has $27.1 million of tax benefits for a federal net operating loss (NOL) carryforward. The utilization
of the federal NOL is subject to IRC Section 382 limitations; however, it is expected that all of the federal NOL will be
utilized within the carryforward period. D.R. Horton has $10.9 million of tax benefits for state NOL carryforwards that
expire at various times depending on the tax jurisdiction. Of this amount, $5.2 million of the tax benefits expire over the
next ten years and the remaining $5.7 million expire from fiscal years 2035 to 2044. Forestar has $0.9 million of tax
benefits for state NOL carryforwards that expire at various times depending on the tax jurisdiction.
The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and
actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations
or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and
the valuation of the Company’s deferred tax assets.
95

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Valuation Allowance
The Company has a valuation allowance of $14.9 million and $14.8 million at September 30, 2024 and 2023,
respectively, related to deferred tax assets for state NOL and tax credit carryforwards that are expected to expire before
being realized. The Company will continue to evaluate both the positive and negative evidence in determining the need
for a valuation allowance with respect to the remaining state NOL and tax credit carryforwards. Any reversal of the
valuation allowance in future periods will impact the Company’s effective tax rate.
Unrecognized Tax Benefits
Unrecognized tax benefits are the differences between tax positions taken or expected to be taken in a tax return
and the benefits recognized in the financial statements. A reconciliation of the beginning and ending amounts of
unrecognized tax benefits for fiscal 2024 and 2023 is as follows:
Year Ended September 30,
2024
2023
(In millions)
Unrecognized tax benefits, beginning of year .............................................................. $
1.4 $
2.9
Decreases for tax positions taken in the current or prior years ................................
(1.4)
—
Settlements ...............................................................................................................
—
(1.5)
Unrecognized tax benefits, end of year......................................................................... $
— $
1.4
All $1.4 million of the unrecognized tax benefits recognized in fiscal 2024 impacted the effective tax rate. The
Company had no accrued interest or penalties related to unrecognized tax benefits in fiscal 2024 or 2023. The Company
classifies interest expense and penalties on income taxes as income tax expense.
Regulations and Legislation
D.R. Horton is subject to federal income tax and state income tax in multiple jurisdictions. The statute of
limitations for D.R. Horton’s major tax jurisdictions remains open for examination for fiscal years 2019 and 2021
through 2024. Fiscal year 2019 is open with respect to a federal refund claim related to additional energy efficient tax
credits. This refund claim is currently under audit by the Internal Revenue Service. D.R. Horton is under audit by various
states; however, the Company is not aware of any significant findings by the state taxing authorities.
Forestar is subject to federal income tax and state income tax in multiple jurisdictions. The statute of limitations for
Forestar’s federal income tax remains open for examination for fiscal years 2021 through 2024. The statute of limitations
for Forestar’s major state tax jurisdictions generally remains open for examination for fiscal years 2019 through 2024.
Forestar is not currently under audit for federal income taxes. Forestar is under audit by various states; however, Forestar
is not aware of any significant findings by the state taxing authorities.
96

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE I – EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share.
Year Ended September 30,
2024
2023
2022
(In millions)
Numerator:
Net income attributable to D.R. Horton, Inc. ...................................... $
4,756.4 $
4,745.7 $
5,857.5
Denominator:
Denominator for basic earnings per share —
weighted average common shares....................................................
329.5
340.7
351.7
Effect of dilutive securities:
Employee stock awards....................................................................
2.1
2.6
3.1
Denominator for diluted earnings per share —
adjusted weighted average common shares .....................................
331.6
343.3
354.8
Basic net income per common share attributable to D.R. Horton, Inc. ...... $
14.44 $
13.93 $
16.65
Diluted net income per common share attributable to D.R. Horton, Inc. ... $
14.34 $
13.82 $
16.51
NOTE J – STOCKHOLDERS’ EQUITY
D.R. Horton has an automatically effective universal shelf registration statement, filed with the SEC in July 2024,
registering debt and equity securities that it may issue from time to time in amounts to be determined. At September 30,
2024, the Company had 402,848,342 shares of common stock issued and 324,027,360 shares outstanding. No shares of
preferred stock were issued or outstanding.
In July 2024, the Board of Directors authorized the repurchase of up to $4.0 billion of the Company’s common
stock, replacing the previous authorization. The authorization has no expiration date. During fiscal 2024, the Company
repurchased 12.5 million shares of its common stock at a total cost, including commissions and excise taxes, of $1.8
billion, of which $1.4 billion was repurchased under previous authorizations. At September 30, 2024, there was $3.6
billion remaining on the repurchase authorization.
The Board of Directors approved and the Company paid quarterly cash dividends of $0.30 per common share in
fiscal 2024 and $0.25 per common share in fiscal 2023. In October 2024, the Board approved a quarterly cash dividend
of $0.40 per common share, payable on November 19, 2024 to stockholders of record on November 12, 2024. Cash
dividends declared and paid in fiscal 2024 totaled $395.2 million.
Forestar had an effective shelf registration statement, filed with the SEC in October 2021, registering $750 million
of equity securities, of which $300 million was reserved for sales under an at-the-market equity offering (ATM)
program. During fiscal 2024, Forestar issued 546,174 shares of common stock under its ATM program for proceeds of
$19.7 million, net of commissions and other issuance costs totaling $0.4 million. In September 2024, Forestar filed a new
shelf registration statement, which became effective in October 2024, registering $750 million of equity securities. At the
time of filing the new registration statement, $728.1 million of equity securities remained available for issuance under
Forestar’s prior registration statement, which has since expired. Forestar’s ATM program expired in October 2024, and
Forestar anticipates entering into a new ATM program under its September 2024 shelf registration statement.
97

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE K – EMPLOYEE BENEFIT PLANS
The Company offers its employees a comprehensive compensation and benefits package, which includes a broad
range of benefits, including medical, dental and vision healthcare insurance and paid parental leave. In addition to base
pay, eligible employees may participate in the Company’s 401(k) plan, employee stock purchase plan, short-term
incentive bonus program and/or its stock compensation plans as described below.
Deferred Compensation Plans
The Company has a 401(k) plan for all employees who have been with the Company for a period of six months or
more. The Company matches portions of employees’ voluntary contributions. The Company recorded $43.8 million,
$40.2 million and $35.4 million of expense for matching contributions in fiscal 2024, 2023 and 2022, respectively.
The Company’s Supplemental Executive Retirement Plan (SERP) is a non-qualified deferred compensation
program that provides benefits payable to certain management employees upon retirement, death or termination of
employment. Under the SERP, the Company accrues an unfunded benefit based on a percentage of the eligible
employees’ salaries, as well as an interest factor based upon a predetermined formula. The Company’s liabilities related
to the SERP were $56.8 million and $58.9 million at September 30, 2024 and 2023, respectively. The Company recorded
$8.9 million, $8.3 million and $7.7 million of expense for this plan in fiscal 2024, 2023 and 2022, respectively.
The Company has a deferred compensation plan available to a select group of employees which allows
participating employees to contribute compensation into the plan on a before tax basis and defer income taxation on the
contributions until the funds are withdrawn from the plan. The participating employees designate investments for their
contributions; however, the Company is not required to invest the contributions in the designated investments. The
Company’s net liabilities related to the deferred compensation plan were $184.5 million and $148.2 million at
September 30, 2024 and 2023, respectively. The Company records as SG&A expense the amount that the employee
contributions would have earned had the funds been invested in the designated investments. Related to this plan, the
Company recorded a charge to expense of $36.5 million and $17.0 million in fiscal 2024 and 2023, respectively, and a
credit to expense of $24.0 million in fiscal 2022.
Employee Stock Purchase Plan
The Company’s Employee Stock Purchase Plan provides eligible employees the opportunity to purchase common
stock of the Company at a discounted price of 85% of the fair market value of the stock on the designated dates of
purchase. The price to eligible employees may be further discounted depending on the average fair market value of the
stock during the period and certain other criteria. Under the terms of the plan, the total fair market value of common
stock that an eligible employee may purchase each year is limited to the lesser of 15% of the employee’s annual
compensation or $25,000. Under the plan, employees purchased 137,347 shares for $15.3 million in fiscal 2024,
143,960 shares for $11.0 million in fiscal 2023 and 164,193 shares for $10.7 million in fiscal 2022. At September 30,
2024, the Company had 2.3 million shares of common stock reserved for issuance pursuant to the Employee Stock
Purchase Plan.
Incentive Bonus Plan
The Company’s Incentive Bonus Plan provides for the Compensation Committee to award short-term performance
bonuses to senior management based upon the level of achievement of certain criteria. For fiscal 2024, 2023 and 2022,
the Compensation Committee approved awards whereby certain executive officers could earn performance bonuses
based upon percentages of the Company’s pre-tax income. Compensation expense related to these plans was $29.9
million, $35.4 million and $40.5 million in fiscal 2024, 2023 and 2022, respectively.
98

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Stock-Based Compensation
The Company’s Stock Incentive Plan provides for the granting of stock options and restricted stock units to
executive officers, other key employees and non-management directors. Restricted stock unit (RSU) awards may be
based on service over a requisite time period (time-based) or on performance (performance-based). RSU equity awards
represent the contingent right to receive one share of the Company’s common stock per RSU if the vesting conditions
and/or performance criteria are satisfied. The RSUs have no dividend or voting rights until vested. During fiscal 2024,
the Board of Directors and the Company’s stockholders authorized an increase of 18.9 million shares to the common
stock reserved for issuance under the Stock Incentive Plan. At September 30, 2024, the Company had 21.3 million shares
of common stock reserved for issuance and 19.7 million shares available for future grants under the Stock Incentive Plan.
Time-Based Restricted Stock Unit Equity Awards
During fiscal 2024, 2023 and 2022, time-based RSUs were granted to the Company’s executive officers, other key
employees and non-management directors (collectively, approximately 1,470, 1,380 and 1,200 recipients, respectively).
These awards vest annually in equal installments over periods of three to five years.
The following table provides additional information related to time-based RSU activity during fiscal 2024, 2023
and 2022. The number of RSUs vested includes shares of common stock withheld by the Company on behalf of
employees to satisfy the tax withholding requirements.
Year Ended September 30,
2024
2023
2022
Number of
Restricted
Weighted
Average
Grant Date
Number of
Restricted
Weighted
Average
Grant Date
Number of
Restricted
Weighted
Average
Grant Date
Stock Units
Fair Value
Stock Units
Fair Value
Stock Units
Fair Value
Outstanding at beginning of year......
2,966,925 $
70.85
3,466,094 $
57.50
3,817,265 $
46.16
Granted .............................................
663,860
147.79
877,131
93.44
1,153,124
74.96
Vested ............................................... (1,233,866)
65.51
(1,251,785)
50.61
(1,402,642)
41.44
Cancelled ..........................................
(87,182)
85.12
(124,515)
61.95
(101,653)
51.22
Outstanding at end of year................
2,309,737 $
95.28
2,966,925 $
70.85
3,466,094 $
57.50
The total fair value of shares vested on the vesting date during fiscal 2024, 2023 and 2022 was $184.7 million,
$115.2 million and $120.1 million, respectively. For fiscal 2024, 2023 and 2022, compensation expense related to time
based RSUs was $77.3 million, $65.7 million and $63.6 million, respectively. At September 30, 2024, there was $170.1
million of unrecognized compensation expense related to unvested time-based RSU awards. This expense is expected to
be recognized over a weighted average period of 2.6 years.
Performance-Based Restricted Stock Unit Equity Awards
During fiscal 2024, 2023 and 2022, performance-based RSU equity awards that vest at the end of three-year
performance periods were granted to the Company’s executive officers. The number of units that ultimately vest depends
on the Company’s relative position as compared to its peers in achieving certain performance criteria and can range from
0% to 200% of the number of units granted. The performance criteria for the awards issued in fiscal 2022 and 2023 were
total shareholder return, return on investment, SG&A expense containment and homebuilding gross profit. The
performance criteria for the awards issued in fiscal 2024 were total shareholder return, return on assets and operating
margin. Compensation expense related to these grants is based on the Company’s performance against a market index or
its peer group, the elapsed portion of the performance period and the grant date fair value of the award.
99

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table provides additional information related to the performance-based RSUs outstanding at
September 30, 2024.
Target Number
of Performance
Grant Date
Fair Value
Compensation Expense
Year Ended September 30,
Grant Date
Vesting Date
Units
per Unit
2024
2023
2022
(In millions)
October 2021 (1)
September 2024
430,000
$
80.58 $
7.0 $
14.3 $
14.3
October 2022
September 2025
600,000
79.97
10.0
11.6
—
October 2023 (2)
September 2026
277,779
146.72
13.1
—
—
$
30.1 $
25.9 $
14.3
_________________________
(1)
The performance RSUs granted in October 2021 totaled 390,000; however, in March 2022, the Compensation Committee
approved an amendment and restatement of this award to increase the RSUs granted from 390,000 to 430,000. Concurrent with
this change, the Compensation Committee amended the executive officer short-term performance bonus plan to reduce the
amount of the award that could be earned.
(2)
The performance RSUs granted in October 2023 were subsequently modified in December 2023 to change the performance
criteria to total shareholder return, return on assets and operating margin.
In October 2024, the Compensation Committee approved the issuance of the performance-based RSUs that vested
in September 2024 in the form of 545,558 shares of common stock to satisfy the awards.
Stock Options
Stock options are granted at exercise prices which equal the market value of the Company’s common stock at the
date of the grant. The Company has not granted stock options in recent years and there were no options outstanding as of
September 30, 2024.
The following table provides additional information related to stock option activity during fiscal 2024, 2023 and
2022.
Year Ended September 30,
2024
2023
2022
Stock
Weighted
Average
Exercise
Stock
Weighted
Average
Exercise
Stock
Weighted
Average
Exercise
Options
Price
Options
Price
Options
Price
Outstanding at beginning of year ......
219,663 $
23.86
823,486 $
23.84
1,115,776 $
23.84
Exercised ...........................................
(219,663)
23.86
(603,823)
23.83
(292,290)
23.83
Cancelled or expired..........................
—
—
—
—
—
—
Outstanding at end of year ................
—
$

—
219,663 $
23.86
823,486 $
23.84
Exercisable at end of year .................
—
$

—
219,663 $
23.86
823,486 $
23.84
The aggregate intrinsic value of options exercised during fiscal 2024, 2023 and 2022 was $26.5 million, $47.2
million and $23.0 million, respectively. The intrinsic value of a stock option is the amount by which the market value of
the underlying stock exceeds the option exercise price.
100

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE L – COMMITMENTS AND CONTINGENCIES
Warranty Claims
The Company provides its homebuyers with warranties for defects in structural elements, mechanical systems and
other construction components of the home. Warranty liabilities are established by charging cost of sales for each home
delivered based on management’s estimate of expected warranty-related costs and by accruing for existing warranty
claims. The Company’s warranty liability is based upon historical warranty cost experience in each market in which it
operates. The estimation of these costs is subject to variability due to uncertainties related to these factors. Due to the
judgment required in establishing the liability for warranty claims, actual future costs could differ from current estimated
amounts, and it is not possible for the Company to make a reasonable estimate of the possible loss or range of loss in
excess of its warranty liability.
Changes in the Company’s warranty liability during fiscal 2024 and 2023 were as follows:
September 30,
2024
2023
(In millions)
Warranty liability, beginning of year.................................................................................... $
512.4 $
454.3
Warranties issued..................................................................................................................
210.6
191.2
Changes in liability for pre-existing warranties....................................................................
(36.0)
(4.7)
Settlements made ..................................................................................................................
(120.1)
(128.4)
Warranty liability, end of year.............................................................................................. $
566.9 $
512.4
Legal Claims and Insurance
The Company is named as a defendant in various claims, complaints and other legal actions in the ordinary course
of business. At any point in time, the Company is managing several hundred individual claims related to construction
defect matters, personal injury claims, employment matters, land development issues, contract disputes and other
matters. The Company has established reserves for these contingencies based on the estimated costs of pending claims
and the estimated costs of anticipated future claims related to previously closed homes. The estimated liabilities for these
contingencies were $949.6 million and $858.9 million at September 30, 2024 and 2023, respectively, and are included in
accrued expenses and other liabilities in the consolidated balance sheets. Approximately 97% of these reserves related to
construction defect matters at both September 30, 2024 and 2023. Expenses related to the Company’s legal contingencies
were $164.0 million, $139.7 million and $138.0 million in fiscal 2024, 2023 and 2022, respectively.
The Company’s reserves for construction defect claims include the estimated costs of both known claims and
anticipated future claims. As of September 30, 2024, no individual existing claim was material to the Company’s
financial statements. The Company has closed a significant number of homes during recent years and may be subject to
future construction defect claims on these homes. Although regulations vary from state to state, construction defect
issues can generally be reported for up to ten years after the home has closed in many states in which the Company
operates. Historical data and trends regarding the frequency of claims incurred and the costs to resolve claims relative to
the types of products and markets where the Company operates are used to estimate the construction defect liabilities for
both existing and anticipated future claims. These estimates are subject to ongoing revision as the circumstances of
individual pending claims and historical data and trends change. Adjustments to estimated reserves are recorded in the
accounting period in which the change in estimate occurs.
101

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Historical trends in construction defect claims have been inconsistent, and the Company believes they may
continue to fluctuate. The Company also believes that fluctuations in housing market conditions can affect the frequency
and cost of construction defect claims. If the ultimate resolution of construction defect claims resulting from the
Company’s home closings in prior years varies from current expectations, it could significantly change the Company’s
estimates regarding the frequency and timing of claims incurred and the costs to resolve existing and anticipated future
claims, which would impact the construction defect reserves in the future. If the frequency of claims incurred or costs of
existing and future legal claims significantly exceed the Company’s current estimates, they will have a significant
negative impact on its future earnings and liquidity.
Changes in the Company’s legal claims reserves during fiscal 2024 and 2023 were as follows:
September 30,
2024
2023
(In millions)
Reserves for legal claims, beginning of year........................................................................ $
858.9 $
729.1
Increase in reserves...............................................................................................................
169.7
179.9
Payments...............................................................................................................................
(79.0)
(50.1)
Reserves for legal claims, end of year .................................................................................. $
949.6 $
858.9
Prior to June 1, 2021, in the majority of states in which it operates, the Company has general liability insurance
policies to provide risk transfer against a portion of the risk of loss from construction defect and other claims. The
Company also contractually requires major subcontractors in most markets to have general liability insurance which
includes construction defect coverage. The Company estimates and records receivables under these policies for known
claims and anticipated future construction defect claims on previously closed homes and other legal claims and lawsuits
incurred in the ordinary course of business when recovery is probable. However, because the self-insured retentions
under these policies are significant and the limits of the policies are finite, the Company anticipates it may be in large
part self-insured. After June 1, 2021, except for contractual risk transfer, the Company is almost exclusively self-insured
for construction defect exposures. The Company’s estimated insurance receivables from estimated losses for pending
legal claims and anticipated future claims related to previously closed homes totaled $156.8 million and $165.8 million
at September 30, 2024 and 2023, respectively, and are included in other assets in the consolidated balance sheets.
In some states where the Company believes it is too difficult or expensive for its subcontractors to obtain general
liability insurance, the Company has waived its normal subcontractor general liability insurance requirements to obtain
lower costs from subcontractors. In these states, the Company purchases insurance policies from either third-party
carriers or its wholly-owned captive insurance subsidiary and names certain subcontractors as additional insureds. The
policies issued by the captive insurance subsidiary and the policies issued on or after June 1, 2020 by third-party carriers
essentially represent self-insurance of these risks by the Company.
The Company is self-insured for the deductible amounts under its workers’ compensation insurance policies. The
deductibles vary by policy year, but in no years exceed $0.5 million per occurrence. The deductible for the 2023, 2024
and 2025 policy years is $0.5 million per occurrence.
The estimation of losses related to these reserves and the related estimates of recoveries from insurance policies are
subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to the
Company’s markets and the types of products built, claim frequency, claim settlement costs and patterns, insurance
industry practices and legal interpretations, among others. Due to the high degree of judgment required in establishing
reserves for these contingencies, actual future costs and recoveries from insurance could differ significantly from current
estimated amounts, and it is not possible for the Company to make a reasonable estimate of the possible loss or range of
loss in excess of its reserves.
102

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Land and Lot Purchase Contracts
The Company enters into land and lot purchase contracts to acquire land or lots for the construction of homes. At
September 30, 2024, the Company had total deposits of $2.15 billion, consisting of cash deposits of $2.03 billion and
promissory notes and surety bonds of $126.8 million, related to contracts to purchase land and lots with a total remaining
purchase price of approximately $25.2 billion. The majority of land and lots under contract are currently expected to be
purchased within three years. Of these amounts, $193.3 million of the deposits related to contracts with Forestar to
purchase land and lots with a remaining purchase price of $1.9 billion. A limited number of the homebuilding land and
lot purchase contracts at September 30, 2024, representing $226.3 million of remaining purchase price, were subject to
specific performance provisions that may require the Company to purchase the land or lots upon the land sellers meeting
their respective contractual obligations. Of the $226.3 million remaining purchase price subject to specific performance
provisions, $204.7 million related to contracts between the homebuilding segment and Forestar.
During fiscal 2024 and 2023, Forestar reimbursed the homebuilding segment $27.5 million and $10.9 million,
respectively, for previously paid earnest money and $22.9 million and $21.8 million, respectively, for pre-acquisition and
other due diligence costs related to land purchase contracts whereby the homebuilding segment assigned its rights under
contract to Forestar.
Other Commitments
At September 30, 2024, the Company had outstanding surety bonds of $3.5 billion and letters of credit of $242.9
million to secure performance under various contracts. Of the total letters of credit, $210.1 million were issued under the
homebuilding revolving credit facility and $32.8 million were issued under Forestar’s revolving credit facility.
The Company leases office space and equipment under non-cancelable operating leases. At September 30, 2024,
the future minimum annual lease payments under these agreements are as follows (in millions):
Fiscal 2025........................................................... $
27.7
Fiscal 2026...........................................................
15.9
Fiscal 2027...........................................................
7.4
Fiscal 2028...........................................................
4.0
Fiscal 2029...........................................................
2.2
Thereafter.............................................................
0.8
$
58.0
Rent expense was $44.3 million, $44.7 million and $38.1 million for fiscal 2024, 2023 and 2022, respectively.
103

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE M – OTHER ASSETS, ACCRUED EXPENSES AND OTHER LIABILITIES
The Company’s other assets at September 30, 2024 and 2023 were as follows:
September 30,
2024
2023
(In millions)
Earnest money and refundable deposits ............................................................................... $
2,210.6 $
1,859.6
Water rights and other water-related assets ..........................................................................
319.1
319.6
Insurance receivables............................................................................................................
156.8
165.8
Other receivables ..................................................................................................................
147.1
167.2
Prepaid assets........................................................................................................................
117.9
93.0
Contract assets - insurance agency commissions .................................................................
117.5
93.9
Margin deposits related to hedging instruments...................................................................
71.3
—
Lease right of use assets .......................................................................................................
51.4
46.6
Interest rate lock commitments.............................................................................................
44.5
2.3
Mortgage servicing rights.....................................................................................................
5.9
11.1
Mortgage hedging instruments and commitments................................................................
2.8
153.6
Other .....................................................................................................................................
72.7
80.3
$
3,317.6 $
2,993.0
The Company’s accrued expenses and other liabilities at September 30, 2024 and 2023 were as follows:
September 30,
2024
2023
(In millions)
Reserves for legal claims...................................................................................................... $
949.6 $
858.9
Employee compensation and related liabilities ....................................................................
569.7
531.0
Warranty liability..................................................................................................................
566.9
512.4
Inventory related accruals.....................................................................................................
451.2
353.6
Customer deposits.................................................................................................................
99.7
147.1
Accrued property taxes .........................................................................................................
77.6
69.2
Mortgage hedging instruments and commitments................................................................
63.0
15.7
Lease liabilities .....................................................................................................................
53.3
48.1
Accrued interest ....................................................................................................................
34.8
33.6
Federal and state income tax liabilities.................................................................................
27.7
233.8
Broker deposits related to hedging instruments....................................................................
—
118.9
Interest rate lock commitments.............................................................................................
—
33.9
Other .....................................................................................................................................
123.2
147.6
$
3,016.7 $
3,103.8
104

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE N – FAIR VALUE MEASUREMENTS
Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage servicing rights, IRLCs and
other derivative instruments on a recurring basis and are used for inventories, other mortgage loans and real estate owned on a
nonrecurring basis, when events and circumstances indicate that the carrying value is not recoverable. The fair value hierarchy
and its application to these Company assets and liabilities is as follows:
•
Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. The Company does not
currently have any assets or liabilities measured at fair value using Level 1 inputs.
•
Level 2 – Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for
identical or similar instruments in markets that are not active, or by model-based techniques in which all significant
inputs are observable in the market. The Company’s assets and liabilities measured at fair value using Level 2 inputs on a
recurring basis are as follows:
◦ Mortgage loans held for sale - The fair value of these loans is generally calculated by reference to quoted prices in
secondary markets for commitments to sell mortgage loans with similar characteristics. Closed mortgage loans are
typically sold shortly after origination, which limits exposure to nonperformance by loan buyer counterparties to a
short time period. In addition, the Company actively monitors the financial strength of its counterparties.
◦ Loan sale commitments and hedging instruments - The fair values of best-efforts and mandatory loan sale
commitments and derivative instruments such as forward sales of MBS that are utilized as hedging instruments are
calculated by reference to quoted prices for similar assets. The Company mitigates exposure to nonperformance risk
associated with derivative instruments by limiting the number of counterparties and actively monitoring their
financial strength and creditworthiness. Further, the Company’s derivative contracts typically have short-term
durations with maturities from one to four months. Accordingly, the Company’s risk of nonperformance relative to its
derivative positions is not significant.
The Company’s assets measured at fair value using Level 2 inputs on a nonrecurring basis are a limited number of
mortgage loans held for sale with some degree of impairment affecting their marketability and are reported at the lower
of carrying value or fair value. When available, fair value is determined by reference to quoted prices in the secondary
markets for such assets.
After consideration of nonperformance risk, no additional adjustments were made to the fair value measurements of
mortgage loans held for sale or hedging instruments.
105

D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
•
Level 3 – Valuation is typically derived from model-based techniques in which at least one significant input is
unobservable and based on the Company’s own estimates about the assumptions that market participants would use to
value the asset or liability.
The Company’s assets measured at fair value using Level 3 inputs on a recurring basis are as follows:
◦ Mortgage loans held for sale - For a limited number of mortgage loans held for sale with some degree of impairment
affecting their marketability and for which reference to quoted prices in the secondary markets is not available, the
fair value is calculated using an income approach whereby the net present value of the discounted cash flows is
modeled using both a prepayment and a liquidation disposition. The cash flow is then adjusted based on the
probability of each disposition.
◦ Mortgage servicing rights - The fair value of mortgage servicing rights is derived utilizing a third-party model which
calculates the present value of estimated future cash flows associated with the servicing asset. Key assumptions to the
model include prepayment rate, discount rate and delinquency rate.
◦ IRLCs - The fair value of IRLCs is calculated by reference to quoted prices in secondary markets for commitments to
sell mortgage loans with similar characteristics. These valuations do not contain adjustments for expirations as any
expired commitments are excluded from the fair value measurement. The Company generally only issues IRLCs for
products that meet specific purchaser guidelines. Should any purchaser become insolvent, the Company would not be
required to close the transaction based on the terms of the commitment. Since not all IRLCs will become closed
loans, the Company further adjusts its fair value measurements for the estimated amount of IRLCs that will not close.
The Company’s assets measured at fair value using Level 3 inputs that are typically reported at the lower of carrying
value or fair value on a nonrecurring basis are as follows:
◦ Inventory held and used - In assessing impairment indicators of its inventory held and used, the Company performs
an analysis of the undiscounted cash flows estimated to be generated by those assets. The most significant factors
used to estimate undiscounted future cash flows include pricing and incentive levels actually realized by the
community, the rate at which the homes are sold and the costs incurred to develop the lots and construct the homes.
Inventory held and used measured at fair value represents those communities for which the estimated undiscounted
cash flows are less than their carrying amounts and therefore, the Company recorded impairments during the period
to record the inventory at fair value calculated based on its discounted estimated future cash flows.
◦ Inventory available for sale - The factors considered in determining fair values of the Company’s land held for sale
primarily include actual sale contracts and recent offers received from outside third parties, and may also include
prices for land in recent comparable sales transactions and other market analysis. If the estimated fair value less the
costs to sell an asset is less than the asset’s current carrying value, the asset is written down to its estimated fair value
less costs to sell.
◦ Certain mortgage loans held for sale - A limited number of mortgage loans held for sale have some degree of
impairment affecting their marketability. For some of these loans, quoted prices in the secondary market are not
available and therefore, a cash flow valuation model is used to determine fair value.
◦ Certain other mortgage loans and real estate owned - Other mortgage loans include performing and nonperforming
mortgage loans, which often become real estate owned through the foreclosure process. The fair values of other
mortgage loans and real estate owned are determined based on the Company’s assessment of the value of the
underlying collateral or the value of the property, as applicable. The Company uses different methods to assess the
value of the properties, which may include broker price opinions, appraisals or cash flow valuation models.
106

______________________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at
September 30, 2024 and 2023, and the changes in the fair value of the Level 3 assets during fiscal 2024 and 2023.
Fair Value at September 30, 2024
Balance Sheet Location
Level 1
Level 2
Level 3
Total
(In millions)
Mortgage loans held for sale (1) .....................................
Mortgage loans held for sale
$
—
$ 2,421.2
$
10.6
$ 2,431.8
Mortgage servicing rights (2)..........................................
Other assets
—
—
5.9
5.9
Derivatives not designated as hedging instruments (3):
Interest rate lock commitments (4) ..............................
Other assets
—
—
44.5
44.5
Mortgage hedging instruments and commitments (5) . Other assets and other liabilities
—
(60.2)
—
(60.2)
Fair Value at September 30, 2023
Balance Sheet Location
Level 1
Level 2
Level 3
Total
(In millions)
Mortgage loans held for sale (1) .....................................
Mortgage loans held for sale
$
—
$ 2,469.1
$
11.6
$ 2,480.7
Mortgage servicing rights (2)..........................................
Other assets
—
—
11.1
11.1
Derivatives not designated as hedging instruments (3):
Interest rate lock commitments (4) .............................. Other assets and other liabilities
—
—
(31.6)
(31.6)
Mortgage hedging instruments and commitments (5) . Other assets and other liabilities
—
137.9
—
137.9
Level 3 Assets and Liabilities at Fair Value for the Year Ended September 30, 2024
Balance at
Net realized
Net transfers
Balance at
September 30,
and unrealized
Purchases /
Sales and
Principal
to (out of)
September 30,
2023
gains (losses)
Originations
Settlements
Reductions
Level 3
2024
(In millions)
Mortgage loans held for sale (1)...... $
11.6
$
0.1
$
—
$
(0.9) $
—
$
(0.2) $
10.6
Mortgage servicing rights (2)...........
11.1
(1.0)
19.2
(23.4)
—
—
5.9
Interest rate lock commitments (4)...
(31.6)
76.1
—
—
—
—
44.5
Level 3 Assets and Liabilities at Fair Value for the Year Ended September 30, 2023
Balance at
Net realized
Net transfers
Balance at
September 30,
and unrealized
Purchases /
Sales and
Principal
to (out of)
September 30,
2022
gains (losses)
Originations
Settlements
Reductions
Level 3
2023
(In millions)
Mortgage loans held for sale (1)...... $
14.1
$
2.6
$
—
$
(14.8) $
—
$
9.7
$
11.6
Mortgage servicing rights (2)...........
10.6
0.2
52.4
(52.1)
—
—
11.1
Interest rate lock commitments (4)...
(135.8)
104.2
—
—
—
—
(31.6)
(1) The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage
loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3
inputs at September 30, 2024 and 2023 include $10.6 million and $11.6 million, respectively, of loans for which the Company elected the
fair value option upon origination and did not sell into the secondary market. Mortgage loans held for sale totaling $0.2 million were
transferred out of Level 3 to Level 2 during fiscal 2024 due to significant observable inputs used in determining the fair value of these
loans. Mortgage loans held for sale totaling $9.7 million were transferred to Level 3 during fiscal 2023 due to significant unobservable
inputs used in determining the fair value of these loans. The fair value of these mortgage loans held for sale is generally calculated
considering pricing in the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity
risk and prepayment risk. The Company plans to sell these loans as market conditions permit.
(2) Although the majority of the Company’s mortgage loans are sold on a servicing-released basis, when the servicing rights are retained, the
Company records them at fair value using third-party valuations. The valuation at the time the servicing asset is retained is reflected in
the purchases/originations column with subsequent changes in value classified as realized and unrealized gains (losses). The key
assumptions used in the valuation, which are generally unobservable inputs, are mortgage prepayment rates, discount rates and
delinquency rates, which were 13%, 11% and 9%, respectively, at September 30, 2024 and 10%, 11% and 8% at September 30, 2023.
(3) Fair value measurements of these derivatives represent changes in fair value, as calculated by reference to quoted prices for similar
assets, and are reflected in the balance sheet as other assets or accrued expenses and other liabilities. Changes in the fair value of these
derivatives are included in revenues in the consolidated statements of operations. The net fair value change in fiscal 2024 and 2023
recognized in revenues in the consolidated statements of operations was not significant.
107

______________________
______________
D.R. HORTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(4) The fair value of interest rate lock commitments at September 30, 2024 reflects a $44.5 million change in fair value in other assets. The
fair value of interest rate lock commitments at September 30, 2023 reflects a $2.3 million change in fair value in other assets and a $33.9
million change in fair value in other liabilities.
(5) The fair value of mortgage hedging instruments and commitments at September 30, 2024 reflects a $2.8 million change in fair value in
other assets and a $63.0 million change in fair value in other liabilities. The fair value of mortgage hedging instruments and
commitments at September 30, 2023 reflects a $153.6 million change in fair value in other assets and a $15.7 million change in fair value
in other liabilities.
The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at September 30,
2024 and 2023.
Fair Value at September 30,
2024
2023
Balance Sheet Location
Level 2
Level 3
Level 2
Level 3
(In millions)
Inventory held and used (1) (2)...............
Inventories
$
—
$
68.1
$
—
$
28.8
Mortgage loans held for sale (1) (3) ........ Mortgage loans held for sale
9.5
7.0
—
30.7
Other mortgage loans (1) (4) ...................
Other assets
1.3
9.8
—
2.2
Real estate owned (1) (4).........................
Other assets
—
0.4
—
—
(1) The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value as a result of
impairment at September 30, 2024 and 2023, respectively.
(2) In performing its impairment analysis of communities, discount rates ranging from 10% to 14% were used in the periods of impairment.
(3) These mortgage loans have some degree of impairment affecting their marketability and are valued at the lower of carrying value or fair
value. When available, quoted prices in the secondary market are used to determine fair value (Level 2); otherwise, a cash flow valuation
model is used to determine fair value (Level 3).
(4) The fair values of other mortgage loans and real estate owned were determined based on the value of the underlying collateral.
For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both
their respective carrying value and fair value at September 30, 2024 and 2023.
Fair Value at September 30, 2024
Carrying
Value
Level 1
Level 2
Level 3
Total
(In millions)
Cash and cash equivalents (1)................................. $
4,516.4
$
4,516.4
$
—
$
—
$
4,516.4
Restricted cash (1)...................................................
27.6
27.6
—
—
27.6
Notes payable (2) (3)...............................................
5,917.7
—
3,413.7
2,440.6
5,854.3
Fair Value at September 30, 2023
Carrying
Value
Level 1
Level 2
Level 3
Total
(In millions)
Cash and cash equivalents (1)................................. $
3,873.6
$
3,873.6
$
—
$
—
$
3,873.6
Restricted cash (1)...................................................
26.5
26.5
—
—
26.5
Notes payable (2) (3)...............................................
5,094.5
—
2,532.5
2,309.4
4,841.9
(1)
The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are
classified as Level 1 within the fair value hierarchy.
(2)
The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy.
(3)
The fair values of other notes and borrowings on the revolving credit facilities and the mortgage repurchase facilities approximate
carrying value due to their short-term nature or floating interest rate terms, as applicable, and are classified as Level 3 within the fair
value hierarchy.
108

ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this report, an evaluation was performed under the supervision and with the
participation of the Company’s management, including the Chief Executive Officer (CEO) and Chief Financial Officer
(CFO), of the effectiveness of the Company’s disclosure controls and procedures as defined in Rule 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934. Based on that evaluation, the CEO and CFO concluded that the
Company’s disclosure controls and procedures as of September 30, 2024 were effective in providing reasonable
assurance that information required to be disclosed in the reports the Company files, furnishes, submits or otherwise
provides the Securities and Exchange Commission (SEC) under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the SEC’s rules and forms, and that information required to be
disclosed in reports filed by the Company under the Exchange Act is accumulated and communicated to the Company’s
management, including the CEO and CFO, in such a manner as to allow timely decisions regarding the required
disclosure.
There have been no changes in the Company’s internal controls over financial reporting during the quarter ended
September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management is responsible for establishing and maintaining adequate internal control over financial reporting,
as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended. Internal control over financial
reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting and the
preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting
principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on
the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company’s
internal control over financial reporting was effective as of September 30, 2024.
Ernst & Young LLP, an independent registered public accounting firm, has audited the effectiveness of our internal
control over financial reporting as of September 30, 2024, as stated in their report included herein.
ITEM 9B. OTHER INFORMATION
During the three months ended September 30, 2024, no director or Section 16 officer adopted or terminated any
Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of
Regulation S-K).
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT
INSPECTIONS
Not applicable.
109

______________
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by this item is set forth under the captions “Proposal One — Election of Directors,”
“Corporate Governance and Board Matters” and “Delinquent Section 16(a) Reports” in the registrant’s definitive
Proxy Statement for the 2025 Annual Meeting of Stockholders and incorporated herein by reference.
ITEM 11. EXECUTIVE COMPENSATION
The information required by this item is set forth under the captions “Executive Compensation” and “CEO Pay
Ratio” in the registrant’s definitive Proxy Statement for the 2025 Annual Meeting of Stockholders and incorporated
herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Securities Authorized for Issuance under Equity Compensation Plans
The following table summarizes our equity compensation plans as of September 30, 2024.
(c)
(a)
Number of Securities
Number of Shares to
(b)
Remaining Available for
be Issued Upon
Weighted-Average
Future Issuance Under
Exercise of
Exercise Price of
Equity Compensation Plans
Outstanding Options,
Outstanding Options,
(Excluding Securities
Warrants and Rights
Warrants and Rights
Reflected in Column (a))
Plan Category
Equity compensation plans
approved by stockholders ..................
3,617,516 (1)
$
— (2)
5,886,752 (3)
Equity compensation plans
not approved by stockholders ............
—
n/a
—
Total....................................................
3,617,516
$
—
5,886,752
(1)
Amount includes outstanding restricted stock unit awards. The number of outstanding performance-based restricted stock
unit awards is based on the target number of units granted.
(2)
Restricted stock units have no exercise price.
(3)
Amount includes 2,269,236 shares reserved for issuance under the Company’s Employee Stock Purchase Plan. Under the
Employee Stock Purchase Plan, employees purchased 137,347 shares of common stock in fiscal 2024.
The remaining information required by this item is set forth under the caption “Beneficial Ownership of Common
Stock” in the registrant’s definitive Proxy Statement for the 2025 Annual Meeting of Stockholders and incorporated
herein by reference.
110

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
The information required by this item is set forth under the captions “Certain Relationships and Related Person
Transactions” and “Corporate Governance and Board Matters” in the registrant’s definitive Proxy Statement for the
2025 Annual Meeting of Stockholders and incorporated herein by reference.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item is set forth under the caption “Independent Registered Public Accountants”
in the registrant’s definitive Proxy Statement for the 2025 Annual Meeting of Stockholders and incorporated herein by
reference.
111

PART IV
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) The following documents are filed as part of this report.
(1) Financial Statements
Our consolidated financial statements are included in Part II, Item 8 of this Annual Report on Form 10-K.
(2) Financial Statement Schedules
All financial statement schedules are omitted because they are not applicable or the required information is included
in the consolidated financial statements or notes thereto.
(3) Exhibits
The exhibits listed in (b) are filed or incorporated by reference as part of this Annual Report on Form 10-K.
(b) Exhibits
Exhibit
Number
Exhibit
2.1
Agreement and Plan of Merger dated June 29, 2017 by and among the Company, Force Merger Sub, Inc. and
Forestar Group Inc. (incorporated by reference from Exhibit 2.1 to the Company’s Current Report on Form 8-K
filed with the SEC on June 29, 2017).
3.1
Certificate of Amendment of the Amended and Restated Certificate of Incorporation, as amended, of the
Company, dated January 31, 2006, and the Amended and Restated Certificate of Incorporation, as amended, of
the Company dated March 18, 1992 (incorporated by reference from Exhibit 3.1 to the Company’s Quarterly
Report on Form 10-Q for the quarter ended December 31, 2005, filed with the SEC on February 2, 2006).
3.2
Amended and Restated Bylaws of the Company, effective as of August 23, 2024 (incorporated by reference from
Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on August 28, 2024).
4.1
See Exhibit 3.1.
4.2
Senior Debt Securities Indenture, dated as of October 10, 2019, among the Company and Branch Banking and
Trust Company, as trustee (incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form
8-K filed with the SEC on October 10, 2019).
4.3
Second Supplemental Indenture, dated as of May 5, 2020, among the Company, the guarantors named therein and
Branch Banking and Trust Company, as trustee, relating to the 2.600% Senior Notes Due 2025 issued by the
Company (incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with
the SEC on May 5, 2020).
4.4
Third Supplemental Indenture, dated as of October 2, 2020, among the Company, the guarantors named therein
and Truist Bank (formerly known as Branch Banking and Trust Company), as trustee, relating to the 1.400%
Senior Notes Due 2027 issued by the Company (incorporated by reference from Exhibit 4.1 to the Company’s
Current Report on Form 8-K filed with the SEC on October 2, 2020).
4.5
Fourth Supplemental Indenture, dated as of August 5, 2021, among the Company, the guarantors named therein
and Truist Bank (formerly known as Branch Banking and Trust Company), as trustee, relating to the 1.300%
Senior Notes due 2026 of D.R. Horton, Inc. (incorporated by reference from Exhibit 4.1 of the Company’s
Current Report on Form 8-K filed with the SEC on August 5, 2021).
4.6
Fifth Supplemental Indenture, dated as of August 5, 2021, among the Company, the guarantors named therein and
Truist Bank (formerly known as Branch Banking and Trust Company), as trustee (incorporated by reference from
Exhibit 4.3 of the Company’s Current Report on Form 8-K filed with the SEC on August 5, 2021).
4.7
Sixth Supplemental Indenture, dated as of August 14, 2024, among D.R. Horton, Inc., the guarantors named
therein and Truist Bank (formerly known as Branch Banking and Trust Company), as trustee, relating to the
5.000% Senior Notes due 2034 of D.R. Horton, Inc. (incorporated by reference from Exhibit 4.1 of the
Company’s Current Report on Form 8-K filed with the SEC on August 14, 2024).
112

Exhibit
Number
Exhibit
4.8
Indenture, dated as of February 25, 2020, by and among Forestar Group Inc., the subsidiary guarantors party
thereto and U.S. Bank National Association, as trustee (incorporated by reference from Exhibit 4.1 of Forestar’s
Current Report on Form 8-K filed with the SEC on February 25, 2020).
4.9
Indenture, dated as of April 21, 2021, by and among Forestar Group Inc., the subsidiary guarantors party thereto
and U.S. Bank National Association, as trustee (incorporated by reference from Exhibit 4.1 of Forestar’s Current
Report on Form 8-K filed with the SEC on April 21, 2021).
4.10 *
Description of Securities.
10.1
Form of Indemnification Agreement between the Company and each of its directors and executive officers and
schedules of substantially identical documents (incorporated by reference from Exhibit 10.1 to the Company’s
Annual Report on Form 10-K for the fiscal year ended September 30, 1995, filed with the SEC on November 22,
1995 (file number 1-14122); Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 1998, filed with the SEC on August 6, 1998; and Exhibit 10.4 to the Company’s Quarterly Report on
Form 10-Q for the quarter ended March 31, 2001, filed with the SEC on May 15, 2001).
10.2 †
D.R. Horton, Inc. 1991 Stock Incentive Plan, as amended and restated (incorporated by reference from Exhibit
10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed with the SEC
on August 13, 2002).
10.3 †
Amendment No. 1 to 1991 Stock Incentive Plan, as amended and restated (incorporated by reference from Exhibit
10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed with the SEC
on August 13, 2002).
10.4 †
Form of Non-Qualified Stock Option Agreement under the D.R. Horton, Inc. 1991 Stock Incentive Plan (Term
Vesting) (incorporated by reference from Exhibit 10.3 to the Company’s Registration Statement on Form S-1
(Registration No. 3-81856), filed with the SEC on July 22, 1994).
10.5 †
D.R. Horton, Inc. 2006 Stock Incentive Plan (incorporated by reference from Exhibit 10.6 to the Company’s
Quarterly Report on Form 10-Q for the quarter ended December 31, 2005, filed with the SEC on February 2,
2006).
10.6 †
D.R. Horton, Inc. 2006 Stock Incentive Plan, as amended and restated (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 26, 2011).
10.7 †
D.R. Horton, Inc. 2006 Stock Incentive Plan, as amended and restated, effective as of December 11, 2014
(incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC
on January 26, 2015).
10.8 †
Form of Non-Qualified Stock Option Agreement under the D.R. Horton, Inc. 2006 Stock Incentive Plan
(Employee - Term Vesting 2006 Form) (incorporated by reference from Exhibit 10.2 to the Company’s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2006, filed with the SEC on May 8, 2006).
10.9 †
Form of Non-Qualified Stock Option Agreement under the D.R. Horton, Inc. 2006 Stock Incentive Plan (Director
- Term Vesting 2006 Form) (incorporated by reference from Exhibit 10.3 to the Company’s Quarterly Report on
Form 10-Q for the quarter ended March 31, 2006, filed with the SEC on May 8, 2006).
10.10 †
Form of Non-Qualified Stock Option Agreement (Employee-Term Vesting 2008 Form) pursuant to the
Company’s 2006 Stock Incentive Plan (incorporated by reference from Exhibit 10.2 to the Company’s Current
Report on Form 8-K filed with the SEC on February 15, 2008).
10.11 †
Form of Non-Qualified Stock Option Agreement (Outside Director-Term Vesting 2008 Form) pursuant to the
Company’s 2006 Stock Incentive Plan (incorporated by reference from Exhibit 10.3 to the Company’s Current
Report on Form 8-K filed with the SEC on February 15, 2008).
10.12 †
Form of Restricted Stock Unit Agreement pursuant to the Company’s 2006 Stock Incentive Plan (incorporated by
reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on October 6,
2010).
10.13 †
Form of Restricted Stock Unit Agreement pursuant to the Company’s 2006 Stock Incentive Plan, as amended and
restated (incorporated by reference from Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with
the SEC on November 16, 2011).
113

Exhibit
Number
Exhibit
10.14 †
Form of Restricted Stock Unit Agreement (Outside Director) pursuant to the Company’s 2006 Stock Incentive
Plan, as amended and restated (incorporated by reference from Exhibit 10.4 to the Company’s Quarterly Report
on Form 10-Q for the quarter ended December 31, 2012, filed with the SEC on January 29, 2013).
10.15 †
Form of Restricted Stock Unit Agreement (Employees) pursuant to the Company’s 2006 Stock Incentive Plan, as
amended and restated (incorporated by reference from Exhibit 10.4 to the Company’s Current Report on Form 8
K filed with the SEC on November 12, 2014).
10.16 †
Form of Time-Based Restricted Stock Unit Agreement (Employees) pursuant to the Company’s 2006 Stock
Incentive Plan, as amended and restated (incorporated by reference from Exhibit 10.4 to the Company’s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2015, filed with the SEC on April 24, 2015).
10.17 †
Form of Stock Award Agreement pursuant to the Company’s 2006 Stock Incentive Plan (incorporated by
reference from Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on October 6,
2010).
10.18 †
D.R. Horton, Inc. 2024 Stock Incentive Plan, effective as of January 17, 2024 (incorporated by reference from
Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 18, 2024).
10.19 †
D.R. Horton, Inc. Supplemental Executive Retirement Plan No. 1 (incorporated by reference from the Company’s
Transitional Report on Form 10-K for the period from January 1, 1993 to September 30, 1993, filed with the SEC
on December 28, 1993 (file number 1-14122)).
10.20 †
D.R. Horton, Inc. Amended and Restated Deferred Compensation Plan (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 16, 2008).
10.21 †
D.R. Horton, Inc. Amended and Restated Supplemental Executive Retirement Plan No. 2 (incorporated by
reference from Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on December 16,
2008).
10.22 †
D.R. Horton, Inc. 2018 Incentive Bonus Plan, dated November 6, 2018 (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on November 9, 2018).
10.23 †
Summary of Executive Compensation Notification - Executive Vice Chair, CEO, COO and CFO (fiscal 2024)
(incorporated by reference from Exhibit 10.27 to the Company’s Annual Report on Form 10-K for the year ended
September 30, 2023, filed with the SEC on November 17, 2023).
10.24 †
Summary of Director Compensation (fiscal 2024) (incorporated by reference from Exhibit 10.28 to the
Company’s Annual Report on Form 10-K for the year ended September 30, 2023, filed with the SEC on
November 17, 2023).
10.25 *†
Summary of Executive Compensation Notification - Executive Chairman, CEO, COO and CFO (fiscal 2025).
10.26 *†
Summary of Director Compensation (fiscal 2025).
10.27
Grantor Trust Agreement, dated June 21, 2002, by and between the Company and Wachovia Bank, National
Association, as Trustee (incorporated by reference from Exhibit 10.34 to the Company’s Annual Report on Form
10-K for the fiscal year ended September 30, 2002, filed with the SEC on December 13, 2002).
10.28
Credit Agreement, dated September 7, 2012, among the Company, the Lenders named therein and The Royal
Bank of Scotland PLC, as Administrative Agent (incorporated by reference from Exhibit 10.1 to the Company’s
Current Report on Form 8-K filed with the SEC on September 10, 2012).
10.29
Amendment No.1 to Credit Agreement, dated November 1, 2012, among the Company, The Royal Bank of
Scotland PLC, as Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on November 5, 2012).
10.30
Amendment No. 2 to Credit Agreement, dated August 8, 2013, by and among the Company, The Royal Bank of
Scotland PLC, as Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on August 13, 2013).
10.31
Amendment No. 3 to Credit Agreement, dated August 22, 2014, by and among Company, The Royal Bank of
Scotland PLC, as Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on August 25, 2014).
114

Exhibit
Number
Exhibit
10.32
Amendment No. 5 to Credit Agreement, dated August 26, 2015, by and among Company, Mizuho Bank, Ltd., as
successor Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit 10.1 to
the Company’s Current Report on Form 8-K filed with the SEC on August 27, 2015).
10.33
Amendment No. 6 to Credit Agreement, dated September 25, 2017, by and among the Company, Mizuho Bank,
Ltd., as successor Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on September 28, 2017).
10.34
Amendment No. 7 to Credit Agreement, dated September 25, 2018, by and among the Company, Mizuho Bank,
Ltd., as successor Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on September 26, 2018).
10.35
Amendment No. 8 to Credit Agreement, dated February 15, 2019, by and among the Company, Mizuho Bank,
Ltd., as successor Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit
10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, filed with the SEC
on April 30, 2019).
10.36
Amendment No. 9 to Credit Agreement, dated October 2, 2019, by and among the Company, Mizuho Bank, Ltd.,
as successor Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit 10.1
to the Company’s Current Report on Form 8-K filed with the SEC on October 4, 2019).
10.37
Amendment No. 10 to Credit Agreement, dated April 20, 2021, by and among the Company, Mizuho Bank, Ltd.,
as successor Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit 10.1
to the Company’s Current Report on Form 8-K filed with the SEC on April 22, 2021).
10.38
Amendment No. 11 to Credit Agreement, dated October 28, 2022, by and among the Company, Mizuho Bank,
Ltd., as successor Administrative Agent, and the Lenders named therein (incorporated by reference from Exhibit
10.1 to the Company’s Current Report on Form 8-K filed with the SEC on November 1, 2022).
10.39
Second Amended and Restated Master Repurchase Agreement, dated February 27, 2015, among DHI Mortgage
Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book Runner, Lead Arranger,
and a Buyer, and all other buyers (incorporated by reference from Exhibit 10.1 to the Company’s Current Report
on Form 8-K filed with the SEC on March 4, 2015).
10.40
First Amendment to Second Amended and Restated Master Repurchase Agreement, dated February 26, 2016,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on March 2, 2016).
10.41
Third Amendment to Second Amended and Restated Master Repurchase Agreement, dated September 23, 2016,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on September 27, 2016).
10.42
Fourth Amendment to Second Amended and Restated Master Repurchase Agreement, dated February 24, 2017,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on February 28, 2017).
10.43
Fifth Amendment to Second Amended and Restated Master Repurchase Agreement, dated February 23, 2018,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on February 28, 2018).
10.44
Sixth Amendment to Second Amended and Restated Master Repurchase Agreement, dated February 22, 2019,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on February 22, 2019).
10.45
Seventh Amendment to Second Amended and Restated Master Repurchase Agreement, dated March 26, 2019,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.44 to the
Company’s Annual Report on Form 10-K for the year ended September 30, 2019, filed with the SEC on
November 25, 2019).
115

Exhibit
Number
Exhibit
10.46
Eighth Amendment to Second Amended and Restated Master Repurchase Agreement, dated June 21, 2019,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on June 26, 2019).
10.47
Ninth Amendment to Second Amended and Restated Master Repurchase Agreement, dated February 21, 2020,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on February 26, 2020).
10.48
Tenth Amendment to Second Amended and Restated Master Repurchase Agreement, dated May 15, 2020, among
DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book Runner,
Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the Company’s
Current Report on Form 8-K filed with the SEC on May 21, 2020).
10.49
Third Amended and Restated Master Repurchase Agreement, dated February 19, 2021, among DHI Mortgage
Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book Runner, Lead Arranger,
and a Buyer and all other Buyers (incorporated by reference from Exhibit 10.1 to the Company’s Current Report
on Form 8-K filed with the SEC on February 23, 2021).
10.50
Fourth Amended and Restated Master Repurchase Agreement, dated February 18, 2022, among DHI Mortgage
Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book Runner, Lead Arranger,
and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the Company’s Current Report
on Form 8-K filed with the SEC on February 18, 2022).
10.51
First Amendment to Fourth Amended and Restated Master Repurchase Agreement, dated February 17, 2023,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on February 21, 2023).
10.52
Second Amendment to Fourth Amended and Restated Master Repurchase Agreement, dated February 16, 2024,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on February 21, 2024).
10.53
Third Amendment to Fourth Amended and Restated Master Repurchase Agreement, dated August 29, 2024,
among DHI Mortgage Company, Ltd., U.S. Bank National Association, as Administrative Agent, Sole Book
Runner, Lead Arranger, and a Buyer, and all other Buyers (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on September 3, 2024).
10.54
Amended and Restated Custody Agreement, dated March 1, 2013, by and between DHI Mortgage Company, Ltd.
and U.S. Bank National Association, as Administrative Agent and representative of certain buyers (incorporated
by reference from Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on March 4,
2015).
10.55
Master Repurchase Agreement, dated April 4, 2023, between DHI Mortgage Company, Ltd. and Royal Bank of
Canada (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with
the SEC on April 10, 2023).
10.56
Credit Agreement, dated March 4, 2022, among DRH Rental, Inc., Mizuho Bank, Ltd., as Administrative Agent
and the Lenders party thereto (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on
Form 8-K filed with the SEC on March 7, 2022).
10.57
Amendment No. 1 to Credit Agreement, dated October 10, 2023, among DRH Rental, Inc., Mizuho Bank, Ltd., as
Administrative Agent and the Lenders party thereto (incorporated by reference from Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on October 12, 2023).
10.58
Amended and Restated Stockholder’s Agreement, dated October 28, 2024, by and between the Company and
Forestar Group Inc. (incorporated by reference from Exhibit 10.1 to the Company’s Current Report on Form 8-K
filed with the SEC on November 1, 2024).
10.59
Master Supply Agreement, dated June 29, 2017, by and between the Company and Forestar Group Inc.
(incorporated by reference from Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC
on June 29, 2017).
116

_____________________
Exhibit
Number
Exhibit
10.60
Credit Agreement, dated August 16, 2018, among Forestar Group Inc., the lenders party thereto and JPMorgan
Chase Bank, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 of Forestar’s Current Report
on Form 8-K filed with the SEC on August 17, 2018).
10.61
Amendment No. 1 to Credit Agreement, dated October 2, 2019 by and among Forestar Group Inc., JPMorgan
Chase Bank, N.A., as administrative agent, and the Lenders named therein (incorporated by reference from
Exhibit 10.1 to Forestar’s Current Report on Form 8-K filed with the SEC on October 3, 2019).
10.62
Amendment No. 2 to Credit Agreement, dated April 16, 2021 by and among Forestar Group Inc., JPMorgan
Chase Bank, N.A., as administrative agent, and the Lenders named therein (incorporated by reference from
Exhibit 10.1 to Forestar’s Current Report on Form 8-K filed with the SEC on April 20, 2021).
10.63
Amendment No. 3 to Credit Agreement, dated October 28, 2022 by and among Forestar Group Inc., JPMorgan
Chase Bank, N.A., as administrative agent, and the Lenders named therein (incorporated by reference from
Exhibit 10.1 to Forestar’s Current Report on Form 8-K filed with the SEC on November 1, 2022).
19.1 *
Insider Trading Policy.
21.1 *
Subsidiaries of D.R. Horton, Inc.
22.1 *
List of Guarantor Subsidiaries.
23.1 *
Consent of Ernst & Young LLP, Fort Worth, Texas.
31.1 *
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 *
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 *
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 *
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
97.1 †
D.R. Horton, Inc. Clawback Policy (effective October 2, 2023) (incorporated by reference from Exhibit 97.1 to
the Company's Annual Report on Form 10-K for the year ended September 30, 2023, filed with the SEC on
November 17, 2023).
101.INS **
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL
tags are embedded within the Inline XBRL document.
101.SCH **
Inline XBRL Taxonomy Extension Schema Document.
101.CAL **
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF **
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB **
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE **
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104 **
Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101).
*
Filed or furnished herewith.
**
Submitted electronically herewith.
†
Management contract or compensatory plan or arrangement.
ITEM 16. 10-K SUMMARY
None.
117

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
D.R. Horton, Inc.
Date:
November 19, 2024
By: /s/ Bill W. Wheat
Bill W. Wheat
Executive Vice President and Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature
Title
Date
/s/ David V. Auld
David V. Auld
/s/ Paul J. Romanowski

Paul J. Romanowski
/s/ Bill W. Wheat

Bill W. Wheat
/s/ Aron M. Odom
Aron M. Odom
/s/ Barbara K. Allen

Barbara K. Allen
/s/ Brad S. Anderson
Brad S. Anderson
/s/ Michael R. Buchanan
Michael R. Buchanan
/s/ Benjamin S. Carson, Sr.

Benjamin S. Carson, Sr.
/s/ M. Chad Crow

M. Chad Crow
/s/ Elaine D. Crowley
Elaine D. Crowley
/s/ Maribess L. Miller

Maribess L. Miller
/s/ Barbara R. Smith
Barbara R. Smith
Executive Chairman and Director
President and Chief Executive Officer and Director
(Principal Executive Officer)
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Senior Vice President and Controller
(Principal Accounting Officer)
Director

Director
Director
Director

Director

Director
Director

Director
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
November 19, 2024
118

_______________________________
CORPORATE INFORMATION
D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States since 2002 and
has closed more than 1,100,000 homes in its 46-year history. D.R. Horton has operations in 125 markets in 36 states across
the United States and is engaged in the construction and sale of high-quality homes through its diverse product portfolio with
sales prices generally ranging from $200,000 to over $1,000,000. The Company also constructs and sells both single-family
and multi-family rental properties. During its fiscal year ended September 30, 2024, D.R. Horton closed 89,690 homes in its
homebuilding operations, in addition to 3,970 single-family rental homes and 2,202 multi-family rental units in its rental
operations. D.R. Horton also provides mortgage financing, title services and insurance agency services for its homebuyers
and is the majority-owner of Forestar Group Inc., a publicly traded national residential lot development company.
THE BOARD OF DIRECTORS
David V. Auld
Executive Chairman
Paul J. Romanowski
President and Chief Executive Officer
Barbara K. Allen (2)(3)
Former Partner and Analyst of Housing, Construction
and Retailing, Avondale Partners
Brad S. Anderson (1)(2)
Vice Chair of Cushman & Wakefield
Director of KS StateBank
Michael R. Buchanan (3)
Former Managing Director, National Real Estate
Banking Group, Bank of America
Benjamin S. Carson, Sr. (1)(3)
Former Secretary of the U.S. Department of HUD
Retired pediatric neurosurgeon affiliated with the
Johns Hopkins Medical Institutions
Director of Covenant Logistics Group, Inc.
Director of Sinclair Broadcast Group, Inc.
Director of Galectin Therapeutics Inc.
M. Chad Crow (2)
Former President and CEO, Builders FirstSource
Director of LOAR Holdings Inc.
Elaine D. Crowley (1)
Former Executive Vice President and CFO, Mattress
Giant Corporation
Maribess L. Miller (1)(2)
Former Partner, PricewaterhouseCoopers
Director of Triumph Financial, Inc.
Barbara R. Smith (3)
Former Chairman and CEO, Commercial Metals
Company
Director of Comerica Incorporated
Annual Meeting of Stockholders
January 16, 2025
At the corporate offices of D.R. Horton, Inc.
1341 Horton Circle
Arlington, Texas 76011
Investor Relations
Jessica L. Hansen
D.R. Horton, Inc.
1341 Horton Circle
Arlington, Texas 76011
(817) 390-8200
Website
www.drhorton.com
Form 10-K
The Annual Report on Form 10-K of D.R. Horton, Inc.
may be accessed through the “Investor Relations” page
of our website, or a copy is available upon request to our
Investor Relations department at our corporate offices.
Public Debt Ratings
Senior Notes:
A-
Fitch Ratings
Baa1 Moody’s Investors Service
BBB+ S&P Global Ratings
A rating is not a recommendation to buy, sell or hold a
security, and ratings are subject to revision at any time
by the assigning agency.
Transfer Agent and Registrar
Equiniti Trust Company, LLC
55 Challenger Road, Floor 2
Ridgefield Park, New Jersey 07660
(800) 937-5449
Member of the (1) Audit Committee (2) Compensation Committee (3) Nominating and Governance Committee

HOMEBUILDING OPERATIONS
NORTHWEST
Colorado Springs, CO
Denver, CO
Fort Collins, CO
Bend, OR
Eugene/Springfield, OR
Medford, OR
Portland/Salem, OR
Salt Lake City, UT
St. George, UT
Bremerton, WA
Central Washington
Kennewick/Pasco/Richland, WA
Seattle/Tacoma/Everett/
Olympia, WA
Spokane, WA
Vancouver, WA
SOUTHWEST
Phoenix, AZ
Tucson, AZ
Bakersfield, CA
Bay Area, CA
Fresno/Tulare, CA
Los Angeles County, CA
Modesto/Merced/Stockton, CA
Redding/Chico/Yuba City, CA
Riverside County, CA
Sacramento, CA
San Bernardino County, CA
Oahu, HI
Las Vegas, NV
Reno, NV
Albuquerque, NM
Santa Fe, NM
SOUTH CENTRAL
Little Rock, AR
Northwest Arkansas
Oklahoma City, OK
Tulsa, OK
Abilene, TX
Austin, TX
Beaumont, TX
Bryan/College Station, TX
Corpus Christi, TX
Dallas, TX
East Texas
Fort Worth, TX
Houston, TX
Killeen/Temple/Waco, TX
Lubbock, TX
Midland/Odessa, TX
New Braunfels/San Marcos, TX
San Antonio, TX
SOUTHEAST
Baldwin County, AL
Birmingham, AL
Huntsville, AL
Mobile, AL
Montgomery, AL
Tuscaloosa, AL
Fort Myers/Naples, FL
Gainesville, FL
Jacksonville, FL
Lakeland, FL
Melbourne/Vero Beach, FL
Miami/Fort Lauderdale, FL
Ocala, FL
Orlando, FL
SOUTHEAST (continued)
Panama City, FL
Pensacola, FL
Port St. Lucie, FL
Tallahassee, FL
Tampa/Sarasota, FL
Volusia County, FL
Baton Rouge, LA
Lake Charles/Lafayette, LA
Gulf Coast, MS
Hattiesburg, MS
Jackson, MS
EAST
Atlanta, GA
Augusta, GA
Central Georgia
Savannah, GA
Valdosta, GA
Asheville, NC
Charlotte, NC
Greensboro/Winston-Salem, NC
New Bern/Greenville, NC
Raleigh/Durham/Fayetteville, NC
Wilmington, NC
Charleston, SC
Columbia, SC
Greenville/Spartanburg, SC
Hilton Head, SC
Myrtle Beach, SC
Chattanooga, TN
Knoxville, TN
Memphis, TN
Nashville, TN
Northeast Tennessee
NORTH
Northern Delaware
Southern Delaware
Chicago, IL
Fort Wayne, IN
Indianapolis, IN
Northwest Indiana
Des Moines, IA
Iowa City/Cedar Rapids, IA
Kansas City, KS/MO
Louisville, KY
Baltimore, MD
Eastern Maryland
Suburban Washington, D.C.
Western Maryland
Minneapolis/St. Paul, MN
Omaha, NE
Northern New Jersey
Southern New Jersey
Cincinnati/Dayton, OH
Columbus, OH
Central Pennsylvania
Philadelphia, PA
Pittsburgh, PA
Northern Virginia
Richmond, VA
Virginia Beach/Williamsburg, VA
Western Virginia
Eastern West Virginia
Northern West Virginia
Southeast Wisconsin

1341 Horton Circle
Arlington, Texas 76011
(817) 390-8200
www.drhorton.com