Notes Payable (Tables)

12 Months Ended

Sep. 30, 2013

Summary of notes payable at principal amounts, net of unamortized discounts

The Company’s notes payable at their principal amounts, net of any unamortized discounts, consist of the following:



	September 30,
	2013		2012
	(In millions)
Homebuilding:
Unsecured:
Revolving credit facility, maturing 2018	$	—	$	—
6.875% senior notes due 2013	—		171.7
6.125% senior notes due 2014, net	145.8		145.5
2% convertible senior notes due 2014, net	478.7		447.0
5.625% senior notes due 2014, net	137.8		137.6
5.25% senior notes due 2015, net	157.5		157.4
5.625% senior notes due 2016, net	169.7		169.6
6.5% senior notes due 2016, net	372.5		372.4
4.75% senior notes due 2017	350.0		350.0
3.625% senior notes due 2018	400.0		—
4.375% senior notes due 2022	350.0		350.0
4.75% senior notes due 2023	300.0		—
5.75% senior notes due 2023	400.0		—
Other secured	8.4		4.1
	$	3,270.4	$	2,305.3
Financial Services:
Mortgage repurchase facility, maturing 2014	$	238.6	$	187.8

Summary of notes payable terms

The key terms of each of the Company’s senior notes outstanding as of September 30, 2013 are summarized below.



Note Payable	Principal Amount	Date Issued	Date Due	Redeemable Prior to Maturity		Effective Interest Rate (1)
	(In millions)
6.125% senior	$145.9	July 2004	January 15, 2014	No		6.3%
2% convertible senior (3)	$500.0	May 2009	May 15, 2014	No		9.9%
5.625% senior	$137.9	September 2004	September 15, 2014	No		5.8%
5.25% senior	$157.7	February 2005	February 15, 2015	Yes	(2)	5.4%
5.625% senior	$170.2	December 2004	January 15, 2016	Yes	(2)	5.8%
6.5% senior	$372.7	April 2006	April 15, 2016	Yes	(2)	6.6%
4.75% senior	$350.0	May 2012	May 15, 2017	Yes	(2)	5.0%
3.625% senior	$400.0	February 2013	February 15, 2018	Yes	(2)	3.8%
4.375% senior	$350.0	September 2012	September 15, 2022	Yes	(2)	4.5%
4.75% senior	$300.0	February 2013	February 15, 2023	Yes	(2)	4.9%
5.75% senior	$400.0	August 2013	August 15, 2023	Yes	(2)	5.9%

______________


(1)	Interest is payable semi-annually on each of the series of senior and convertible senior notes. The annual effective interest rate is calculated after giving effect to the amortization of the financing costs and any discount associated with the note issuance.


(2)	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 on the redemption date, plus accrued interest.

(3)

Holders of the 2% convertible senior notes may convert all or any portion of their notes at their option at any time prior to maturity. The conversion rate is subject to adjustment in certain events, which include the payment of cash dividends in excess of $0.0375 per share in any fiscal quarter, but will not be adjusted for accrued interest, including any additional interest. As a result of the cash dividend of $0.15 per share which was paid in the first quarter of fiscal 2013 (see Note I), the conversion rate of the 2% convertible senior notes increased from 76.5697 to 77.18004 shares of the Company's common stock per $1,000 principal amount of senior notes. The new conversion rate is equivalent to a conversion price of approximately $12.96 per share of common stock, compared to the initial conversion price of $13.06 per share. If all of the 2% convertible senior notes due 2014 were converted into the Company's common stock, the Company would issue 38.6 million shares of its common stock as a result of the conversion. If the convertible senior notes are eligible for conversion at maturity, the Company may redeem them with cash, shares of its common stock or a combination thereof at its election. The effective interest rate of the convertible senior notes is 9.9% after giving effect to the amortization of the discount and financing costs.