Segment Information

9 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s 30 homebuilding operating divisions and its financial services operation are its operating segments. The homebuilding operating segments are aggregated into six reporting segments and the financial services operating segment is its own reporting segment. The Company’s reportable homebuilding segments are: East, Midwest, Southeast, South Central, Southwest and West. These reporting segments have homebuilding operations located in the following states:

East:	Delaware, Georgia (Savannah only), Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina and Virginia
Midwest:	Colorado, Illinois and Minnesota
Southeast:	Alabama, Florida and Georgia
South Central:	Louisiana, New Mexico (Las Cruces only), Oklahoma and Texas
Southwest:	Arizona and New Mexico
West:	California, Hawaii, Idaho, Nevada, Oregon, Utah and Washington

Homebuilding is the Company’s core business, generating 97% and 98% of consolidated revenues during the nine months ended June 30, 2012 and 2011, respectively. The Company’s homebuilding segments are primarily engaged in the acquisition and development of land and the construction and sale of residential homes on the land, in 25 states and 73 markets in the United States. The homebuilding segments generate most of their revenues from the sale of completed homes, and to a lesser extent from the sale of land and lots.

The Company’s financial services segment provides mortgage financing and title agency services primarily to the Company’s homebuilding customers. The Company generally does not retain or service originated mortgages; rather, it seeks to sell the mortgages and related servicing rights to third-party purchasers. The financial services segment generates its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services.

The accounting policies of the reporting segments are described throughout Note A included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2011.

	Three Months Ended June 30,					Nine Months Ended June 30,
	2012		2011			2012			2011
	(In millions)
Revenues
Homebuilding revenues:
East	$	140.6	$	114.7		$	393.0		$	308.9
Midwest	88.5		74.0			217.9			186.7
Southeast	241.4		194.2			651.5			484.8
South Central	306.7		294.6			833.2			752.6
Southwest	71.3		56.0			180.9			164.1
West	267.7		241.9			660.9			578.4
Total homebuilding revenues	1,116.2		975.4			2,937.4			2,475.5
Financial services revenues	33.8		23.8			80.4			63.0
Consolidated revenues	$	1,150.0	$	999.2		$	3,017.8		$	2,538.5
Inventory Impairments
East	$	0.9	$	0.1		$	1.0		$	2.1
Midwest	—		0.1			—			0.1
Southeast	1.0		5.1			1.6			9.8
South Central	—		—			—			0.2
Southwest	—		0.1			—			2.2
West	—		2.4			—			12.8
Total inventory impairments	$	1.9	$	7.8		$	2.6		$	27.2
Income (Loss) Before Income Taxes (1)
Homebuilding income (loss) before income taxes:
East	$	3.0	$	(1.0	)	$	9.2		$	(13.6	)
Midwest	0.7		0.1			(7.4		)	(13.1		)
Southeast	11.4		(3.0		)	26.9			(16.8		)
South Central	23.7		19.0			52.1			30.1
Southwest	4.9		(0.5		)	9.6			(2.5		)
West	14.6		7.6			27.6			(18.5		)
Total homebuilding income (loss) before income taxes	58.3		22.2			118.0			(34.4		)
Financial services income before income taxes	13.9		6.7			25.7			12.6
Consolidated income (loss) before income taxes	$	72.2	$	28.9		$	143.7		$	(21.8	)

(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 the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s revenue, while interest expense and those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances.

	June 30, 2012		September 30, 2011
	(In millions)
Homebuilding Inventories (1)
East	$	544.2	$	497.3
Midwest	306.3		268.5
Southeast	797.5		692.9
South Central	856.8		768.5
Southwest	186.6		193.6
West	1,077.8		938.4
Corporate and unallocated (2)	92.4		90.5
Total homebuilding inventory	$	3,861.6	$	3,449.7

(1) Homebuilding inventories are the only assets included in the measure of segment assets used by the Company’s chief operating decision maker, its CEO.

(2) Corporate and unallocated consists primarily of capitalized interest and property taxes.