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Homebuilding Interest
 9 Months Ended
Jun. 30, 2012
Interest Costs Incurred [Abstract]  
HOMEBUILDING INTEREST
HOMEBUILDING INTEREST

The Company capitalizes homebuilding interest to inventory during active development and construction. Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. Additionally, the Company writes off a portion of the capitalized interest related to communities for which inventory impairments are recorded. The Company’s inventory under active development and construction was lower than its debt level at June 30, 2012 and 2011; therefore, a portion of the interest incurred is reflected as interest expense.

The following table summarizes the Company’s homebuilding interest costs incurred, capitalized, expensed as interest expense, charged to cost of sales and written off during the three and nine months ended June 30, 2012 and 2011:
 
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(In millions)
Capitalized interest, beginning of period
 
$
81.1

 
$
88.6

 
$
79.2

 
$
91.5

Interest incurred
 
31.1

 
31.4

 
87.2

 
100.5

Interest expensed:
 
 
 
 
 
 
 
 
Directly to interest expense
 
(6.2
)
 
(10.1
)
 
(18.7
)
 
(41.0
)
Amortized to cost of sales
 
(24.7
)
 
(25.3
)
 
(66.4
)
 
(65.7
)
Written off with inventory impairments
 
(0.1
)
 
(0.2
)
 
(0.1
)
 
(0.9
)
Capitalized interest, end of period
 
$
81.2

 
$
84.4

 
$
81.2

 
$
84.4