DHID. R. Horton

We note you changed your presentation of cash flows for the single and multi-family rental operations from investing activities to operating activities in your consolidated statements of cash flows beginning in the third quarter of your fiscal year ended September 30, 2021. Please address the following: • Please tell us how you determined that such activities are now deemed to be operating activities.

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Please refer to ASC 230-10-45 in your response. • Please tell us how you determined that such activities were previously deemed to be investing activities. Please refer to ASC 230-10-45 in your response. • Please tell us how you determined it was appropriate to change your cash flow statement presentation on a prospective basis. Within your response, please reference the authoritative accounting literature management relied upon.

In order to provide finished lots to its homebuilding operations for the construction of new homes, the Company acquires and develops a substantial amount of raw land each year. Periodically, the Company acquires land that is partially zoned for multi-family construction. Prior to fiscal 2016, the undeveloped land related to these multi-family sites was sold to multi-family developers because the Company did not have the resources or expertise to develop and construct multi-family housing.

During fiscal 2016, the Company identified three owned multi-family sites and designated internal

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resources to begin development and construction and pursue operating these sites as rental properties. At that time, no decisions had been made regarding how long to hold the rental assets upon completion or if the Company would market the assets for sale. The Company determined that a decision of whether to sell the asset or rent it on a longer-term basis would be made based on current market conditions when the asset reached a stabilized level of leased occupancy. These assets were deemed not to be part of the Company’s ongoing major or central

Securities and Exchange Commission operations (as defined in the then effective ASC 605). Accordingly, these assets were considered long-term productive assets (property and equipment), with the rents collected classified as revenue and the cash inflows and outflows from sales and construction activity treated as investing activities on the statement of cash flows. Gains upon sale of the properties were recognized as other income. In accordance with ASC 230-10-45-12(c) and ASC 230-10-45-13(c), we determined that the cash flow activities for these productive assets should be classified as investing activities. During fiscal 2016 through fiscal 2018, the rental operations were immaterial relative to the Company's operations and consisted of assets of $24.8 million, $106.1 million and $173.2 million at the end of fiscal 2016, 2017 and 2018, respectively, compared to the Company's total assets of $11.6 billion, $12.2 billion and $14.1 billion. There were no sales of rental properties in fiscal 2016, 2017 or 2018.

Upon the adoption of ASC 606 in fiscal 2019 and consistent with our prior evaluation, we determined that sales from our multi-family operations did not qualify as revenue as they were not “ordinary activities in exchange for consideration” (ASC 606-10-15-3). Also, we determined that accounting for the cash flow activities of these productive assets as investing activities in accordance with ASC 230-10-45-12(c) and ASC 230-10-45-13(c) remained appropriate based on the Company's strategy at that time.

During fiscal 2019, the Company also began developing and constructing single-family rental properties. In fiscal 2019, the Company added six single-family rental projects and added four additional projects during fiscal 2020. Additionally, the Company had six multi-family projects under construction or complete during both fiscal 2019 and 2020. However, the activity in our rental operations remained immaterial relative to the Company’s consolidated operations during both fiscal 2019 and 2020. The Company sold two rental properties in both fiscal 2019 and 2020. Gains on the sale of rental assets were $51.9 million and $59.4 million in fiscal 2019 and 2020, respectively, compared to the Company's pre-tax income of $2.1 billion and $3.0 billion, and total rental assets were $223.6 million and $333.5 million at the end of fiscal 2019 and 2020, respectively, compared to the Company's total assets of $15.6 billion and $18.9 billion. Based on the limited sale activity, the Company had not concluded on a definitive strategy for its rental operations and continued to evaluate whether to rent or sell these properties based on market conditions.

During fiscal 2021, the single-family and multi-family rental market strengthened, and the Company noted increased expected selling prices for its rental assets based on offers from potential buyers and discussions with third-party brokers. It became clear the Company could generate higher returns by selling its rental properties shortly after the properties had reached a stabilized level of leased occupancy. In the third quarter of fiscal 2021, the Company changed its strategic focus for its rental operations by increasing the level of activity during that quarter and planning for significant future investment. Additionally, the Company decided to exclusively pursue the strategy of constructing single-family and multi-family properties, achieving a stabilized rental occupancy and then selling the properties to third-party investors instead of holding them as long-term rentals. With the change in focus and strategy during the third quarter of fiscal 2021, the Company determined that its rental operations had become part of the Company’s ordinary activities. ASC 606 requires recognition of revenue for an entity’s “ordinary activities in exchange for consideration” (ASC 606-10-15-3). Accordingly, the Company began recognizing sales as revenue and assets as inventory. Additionally, because these operations were now ordinary activities and the predominance of the cash flow was expected to be realized from the sale of the assets in accordance with ASC 230-10-45-22A, the Company determined that cash flow activities were receipts from sales of goods or payments to acquire materials for manufacture of goods for resale and should be classified as operating activities in accordance with ASC 230-10-45-16(a) and ASC 230-10-45-17(a).

c.Please tell us how you determined it was appropriate to change your cash flow statement presentation on a prospective basis. Within your response, please reference the authoritative accounting literature management relied upon.

The Company determined it was appropriate to change its cash flow statement presentation on a prospective basis when the Company's strategy for its rental operations changed in the third quarter of fiscal 2021 as discussed above. The Company did consider the provisions of ASC 250, “Accounting Changes and Error Corrections.” However, the Company determined the change was a change in strategy and not a change in accounting principle, a change in accounting estimate or a change in the reporting entity and thus could not be applied retrospectively.

In connection with the Company’s response to the Staff’s comments, the Company hereby acknowledges that the Company is responsible for the accuracy and adequacy of its disclosures, notwithstanding any review, comments, action or absence of action by the Staff. If you have any questions or comments regarding the foregoing, please contact Bill W. Wheat, Executive Vice President and Chief Financial Officer of the Company, by telephone at (817) 390-8200 or by email at bwheat@drhorton.com or Thomas B. Montaño, Corporate and Securities Counsel of the Company, by telephone at (817) 390-8200 or by email at tbmontano@drhorton.com.

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Please revise your disclosure to identify any material past and/or future capital expenditures for climate-related projects. If material, please quantify these expenditures.

There were no material capital expenditures for climate-related projects in any of the periods presented in our Form 10-K for the fiscal year ended September 30, 2020. There have been no material capital expenditures in our fiscal year ending September 30, 2021 ("fiscal 2021"), and there are no material future capital expenditures for climate-related projects currently planned. Read in the reply ↗

To the extent material, discuss the indirect consequences of climate-related regulation or business trends, such as the following: • decreased demand for goods or services that produce significant greenhouse gas emissions or are related to carbon-based energy sources; • increased demand for goods that result in lower emissions than competing products; • increased competition to develop innovative new products that

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result in lower emissions; • increased demand for generation and transmission of energy from alternative energy sources; and • any anticipated reputational risks resulting from operations or products that produce material greenhouse gas emissions.

In the Risk Factors section of our Form 10-K for the fiscal year ended September 30, 2020 (page 19), we disclosed that governmental regulations and environmental matters could increase the cost and limit the availability of our land development and homebuilding projects and adversely affect our business or financial

Securities and Exchange Commission results.

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Specifically related to the indirect consequences of climate-related regulation, we disclosed the following:

Government restrictions, standards, or regulations intended to reduce greenhouse gas emissions or potential climate change impacts are likely to result in restrictions on land development in certain areas and may increase energy, transportation, or raw material costs, which could reduce our profit margins and 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.

During the periods presented in our Form 10-K for the fiscal year ended September 30, 2020, as well as during fiscal 2021, climate-related regulations and business trends had no material impact on the products used in our homes, the demand for our homes, our costs or profit margins, the availability of our land development and homebuilding projects or our business reputation, nor do we reasonably believe that they are reasonably likely to have a material impact in the foreseeable future. We will continue to monitor and evaluate additional climate-related regulations and business trends, and in the event that they are reasonably likely to have a material impact, we will include the necessary disclosures in future periodic reports consistent with Item 303 of Regulation S-K or any other applicable disclosure requirement that may be in effect at the time.

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If material, discuss the significant physical effects of climate change on your operations and results. This disclosure may include the following: • quantification of material weather-related damages to your property or operations; • potential for indirect weather-related impacts that have affected or may affect your major customers or suppliers; and • any weather-related impacts on the cost or availability of

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insurance.

In the Risk Factors section of our Form 10-K for the fiscal year ended September 30, 2020 (page 14), we disclosed that weather conditions and natural disasters could adversely affect our business. Specifically, we disclosed the following:

Weather conditions and natural disasters, such as hurricanes, tornadoes, earthquakes, volcanic activity, droughts and floods, heavy or prolonged precipitation or wildfires, can harm our business.

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These can delay our development work, home construction and home closings, adversely affect the cost or availability of materials or labor or damage homes under construction. 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.

During the periods presented in our Form 10-K for the fiscal year ended September 30, 2020, as well as during fiscal 2021, the physical effects of climate change did not have a material impact on our operations or results. We will include in future periodic reports disclosures of any such impacts to the extent material and consistent with the requirements of Item 303 of Regulation S-K and any other applicable disclosure requirement that may be in effect at the time.

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Disclose any material litigation risks related to climate change and the potential impact to the company.

We currently have no pending litigation related to climate change. As we evaluate our risk factor disclosures for inclusion in our Form 10-K for the fiscal year ending September 30, 2021, we will adjust them as necessary to reflect the potential for future litigation risks, changes in regulations and future non-compliance with rules and regulations related to climate change. Read in the reply ↗

Quantify any material increased compliance costs related to climate change.

The compliance costs we have incurred related to climate change are not material to our financial position or results from operations and we do not reasonably expect such costs to be material to our financial position or results from operations in fiscal 2021 or in the foreseeable future. Read in the reply ↗

If applicable and material, provide disclosure about any purchase or sale of carbon credits or offsets and any material effects on your business, financial condition, and results of operations.

Not applicable. We have not purchased or sold any carbon credits or offsets.

In connection with the Company’s response to the Staff’s comments, the Company hereby acknowledges that the Company is responsible for the adequacy and accuracy of its disclosures, notwithstanding any review, comments, action or absence of action by the Staff. If you have any questions or comments regarding the foregoing, please contact Bill W. Wheat, Executive Vice President and Chief Financial Officer of the Company, by telephone at (817) 390-8200 or by email at bwheat@drhorton.com or Thomas B.

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Montaño, Corporate and Securities Counsel of the Company, by telephone at (817) 390-8200 or by email at tbmontano@drhorton.com.

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Refer to prior comment 1. Please tell us in quantified terms what your capital expenditures for climate related projects were for the years ended September 30, 2020 and September 30, 2021. In your response, please describe the nature of the climate-related projects you considered, including any planned future expenditures, and explain how you determined that the amounts were not material.

During the years ended September 30, 2021 and 2020, we have evaluated potential investments in solarand wind-related clean energy projects. We are still performing due diligence and have expended less than $200,000 related to these projects. The determination of any future planned investment related to these projects will depend upon the results of our due diligence.

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We determined the due diligence expenditures related to these projects were immaterial since they were less than 0.004% of our consolidated pre-tax income for fiscal year 2021.

We consider these clean energy projects to be our only climate-related capital projects. As discussed in comment 2 below, we use a variety of energy efficient materials in the construction of the homes we sell. The costs of these materials and the extent to which they are used vary across our operating markets and are a normal part of our ongoing operations. We do not consider the cost of energy efficient materials in our homes as capital expenditures for climate-related projects.

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Your response to prior comment 2 states that you have not experienced material indirect consequences of climate-related regulation or business trends and that you do not believe that they are reasonably likely to have a material impact on the specific aspects of your business that you referenced.

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It appears that your response is conclusory in nature and does not adequately address the individual items in our prior comment. Please describe the climate-related regulations or business trends and the indirect consequences from them that you considered in your analysis and explain how you concluded they were not material.

In our previous response, we noted climate-related regulations and business trends had no material impact on the products used in our homes, the demand for our homes, our costs or profit margins, the availability of our land development and homebuilding projects or our business reputation. We believe the most prevalent climate-related regulation and business trend in the homebuilding industry relates to improving the energy efficiency of new homes, which reduces the cost of owning a home by lowering the utility costs of homeowners and can contribute to reducing greenhouse gas emissions by

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reducing energy demand over the life of the home. This industry trend has been supported by the New Energy Efficient Homes Credit, which provides federal income tax credits to homebuilders who sell new homes that meet the energy efficient certification required by Internal Revenue Code Section 45L – New Energy Efficient Homes Credit ("IRC Section 45L"). We estimate that approximately 60% of our 81,965 homes closed during fiscal 2021 will be certified to meet the energy efficient certification required by IRC Section 45L, and in fiscal 2020 approximately 50% of our 65,388 homes closed met this energy efficient certification. We recognized $116.3 million and $93.4 million of tax benefits related to energy efficient home credits in fiscal year 2021 and 2020, respectively.

We consider the cost of all materials used in our homes, including energy efficient materials, to be a normal part of our ongoing operations and any increased use of energy efficient materials used in our homes did not have a material impact on our operations. The materials used in our homes are impacted by local regulations and building codes and vary across the 31 states and 98 markets in which we operate. Also, the available supply of certain materials and customer preferences for those materials vary across our markets. The energy efficiency of our homes is not typically a noticeable factor impacting homebuyer demand, as many other factors, such as the home price, location and quality of schools, are typically significantly more important drivers of homebuyer demand. Including certain energy efficient materials in our homes may increase the cost of the home. However, in recent years any increased costs related to these materials have been insignificant to the total cost of our homes, and due to strong housing market conditions, the average selling price of our homes has increased faster than the average cost of our homes, resulting in increases in the gross profit margins of our homebuilding operations.

Based on the above discussion, we do not believe that climate-related regulations or business trends or any indirect consequence from them had a significant impact on the results of our operations. We considered this within the context of our overall materiality levels. In fiscal 2021 and 2020, we generated consolidated revenues of $27.8 billion and $20.3 billion and pre-tax income of $5.4 billion and $3.0 billion, respectively. We consider amounts greater than 5% of pre-tax income to be material to investors. To address each individual item from the second comment in your letter dated September 15, 2021 we have reproduced your comment and offer the following responses below:

To the extent material, discuss the indirect consequences of climate-related regulation or business trends, such as the following:

a.decreased demand for goods or services that produce significant greenhouse gas emissions or are related to carbon-based energy sources;

During fiscal 2021 and 2020, demand for our homes was strong. We are not aware of any decrease in demand for our homes based on greenhouse gas emissions or related to carbon-based energy sources used in the materials of our homes. During fiscal 2021 and 2020, we closed 81,965 and 65,388 homes, respectively, the two highest volume years in the Company’s history.

b.increased demand for goods that result in lower emissions than competing products;

We are not aware of any impact to our operations from increased demand for goods that result in lower emissions than competing products.

c.increased competition to develop innovative new products that result in lower emissions;

We are not aware of any impact to our operations from increased competition from other builders or building material manufacturers resulting from their development of new innovative products having lower emissions. Also, we are not aware of any impact to our business operations from any of our suppliers that may be experiencing increased competition related to developing new innovative products that result in lower emissions.

d.increased demand for generation and transmission of energy from alternative energy sources; and

We are not aware of any increased demand for the generation and transmission of energy from alternative energy sources that impacted our business operations.

e.any anticipated reputational risks resulting from operations or products that produce material greenhouse gas emissions.

We are not aware of any adverse impact to our reputation that has resulted from our operations or products that produce material greenhouse gas emissions.

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Refer to prior comment 3. You state that you disclosed in a risk factor that weather conditions and natural disasters could adversely affect your business; however, your response does not appear to discuss the significant physical effects of climate change on your operations and results.

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Accordingly, please discuss the physical effects of climate change on your operations and results or explain in greater detail how you concluded that such effects have been, and are expected to continue to be, immaterial to your operations and results. In order to help us assess your response, please provide a quantification of weather-related damages to your property or operations, a discussion of how weather related impacts have affected or may affect your customers and suppliers and a discussion of any weather-related impacts on the cost or availability of insurance.

Throughout the Company’s 43-year history we have experienced climate-related weather events such as hurricanes, tornadoes, hailstorms, flooding and winter snow/ice storms in certain markets that impacted the Company’s operations. Each of these weather events has been local in nature and has affected only a limited number of our markets. The damages related to all of these events throughout our history have been insignificant to the Company’s results of operations, and the impact of climate-related events on our operations in recent years has been similar to other times in the past.

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Weather impacts typically result in temporary delays in production and short-term impacts on our sales and closings activity in the affected markets, with no long-term sustained impact. We estimate that damages to our properties from weather related incidents, primarily hurricane and hail damage, in fiscal 2021 and 2020 together totaled less than $10 million, which is immaterial to our results, and a large portion of these losses were covered by our builders risk insurance policies. See our response to comment 2 above for a description of our evaluation of materiality. We do not believe weather related impacts have affected our suppliers or customers other than temporary delays in production that were limited to the affected markets or individual communities. These weather events did not significantly impact the cost or availability of insurance.

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In response to prior comment 4 you state that you currently have no pending litigation related to climate change and that you will "adjust your risk factor disclosure as necessary" to reflect the potential for litigation risks. Please tell us how you considered providing disclosure at this time addressing the possibility of climate-related litigation and its potential impact.

In our previous response we stated the following:

We currently have no pending litigation related to climate change. As we evaluate our risk factor disclosures for inclusion in our Form 10-K for the fiscal year ending September 30, 2021, we will adjust them as necessary to reflect the potential for future litigation risks, changes in regulations and future non-compliance with rules and regulations related to climate change.

Because we have no pending litigation related to climate change and no indications that there will be litigation in the near future related to climate change, we have

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concluded it is not necessary to specifically disclose potential litigation risk related to climate change in our Form 10-K for the fiscal year ending September 30, 2021.

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Your response to prior comment 5 states that the compliance costs related to climate change you have incurred are not material to your financial position or results from operations and that you do not reasonably expect such costs to be material in the foreseeable future. Please tell us about the compliance costs you have incurred and explain how you concluded the related amounts were not material.

We have not incurred any direct compliance costs related to climate change, other than those incurred in the ordinary course of our business to comply with existing regulations applicable to our development and construction activities, which we determined were not material to our business as described in our response to comment 2 above.

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We are not able to separately identify or track the specific climate-related compliance costs imbedded in the costs of our development and construction activities.

We will disclose the following related to potential increased costs from changes in regulations and future non-compliance with rules and regulations related to climate change in our Risk Factors in our Form 10-K for the fiscal year ending September 30, 2021.

Recently, there has been growing concern from advocacy groups, government agencies and the general public over 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.

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