8-KOther EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Corporate Update (Feb 8, 2010)

Filed February 8, 2010For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) filed this Form 8-K on February 8, 2010, to report an accounting change effective October 1, 2009. The company adopted new authoritative guidance, ASC 470-20-65-1, which requires the separate accounting for the liability and equity components of convertible debt instruments. This change specifically impacts the company's 2.0% convertible senior notes due in 2014, which were issued in May 2009. The adoption is retrospective, meaning it affects the financial information for the year ended September 30, 2009, as presented in the company's prior Form 10-K filing. This adjustment aims to reflect the company's nonconvertible debt borrowing rate at the time of issuance when recognizing future interest costs. Investors should note that this filing is not an amendment or restatement of the 2009 10-K but rather an adjustment to specific sections of that report to comply with the new accounting standard.

Key Highlights

  • 1D.R. Horton adopted new accounting guidance (ASC 470-20-65-1) effective October 1, 2009.
  • 2The adoption impacts the accounting for the company's 2.0% convertible senior notes due in 2014.
  • 3The new guidance requires separate accounting for the liability and equity components of convertible debt.
  • 4Interest cost recognition in the future will reflect the company's nonconvertible debt borrowing rate at issuance.
  • 5The adoption is retrospective, affecting financial data for the year ended September 30, 2009.
  • 6This filing is not a restatement or amendment of the 2009 Form 10-K, but an adjustment to specific sections.
  • 7Key sections of the 2009 Form 10-K are being retrospectively adjusted, including Financial Statements and MD&A.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to report D.R. Horton's adoption of a new accounting standard, ASC 470-20-65-1, which impacts how convertible debt is accounted for. This filing ensures that the company's financial statements, particularly those related to its convertible notes, are presented in compliance with the new guidance.

The accounting change requires D.R. Horton to separately account for the liability and equity components of its 2.0% convertible senior notes. This retrospective adoption means that the financial information for the year ended September 30, 2009, has been adjusted to reflect this change. Future interest expense recognition will be based on the company's nonconvertible debt borrowing rate at the time the notes were issued.

No, this filing is not an amendment or restatement of the 2009 Form 10-K and does not purport to update the financial results reported therein for subsequent events. It is specifically an adjustment to certain sections of the 2009 Form 10-K to comply with the new accounting guidance related to convertible debt. For more current information, investors should refer to the company's subsequent filings, such as the Form 10-Q for the quarter ended December 31, 2009.

The filing indicates that several items within the 2009 Form 10-K are being adjusted retrospectively. These include Risk Factors, Selected Financial Data, Management's Discussion and Analysis of Financial Condition and Results of Operations, Quantitative and Qualitative Disclosures about Market Risk, Financial Statements and Supplementary Data, and the Computation of Ratio of Earnings to Fixed Charges.