Income Taxes (Tables)

12 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

The components of the Company’s income tax expense (benefit) attributable to continuing operations are as follows:

	Year Ended September 30,
	2013			2012			2011
	(In millions)
Current tax expense (benefit):
Federal	$	66.6		$	(7.0	)	$	(53.6	)
State	6.8			3.1			(6.1		)
	73.4			(3.9		)	(59.7		)
Deferred tax expense (benefit):
Federal	146.3			(616.1		)	—
State	(24.6		)	(93.4		)	—
	121.7			(709.5		)	—
Total income tax expense (benefit)	$	195.1		$	(713.4	)	$	(59.7	)

Comparison of income tax expense (benefit) and tax computed at the statutory rate

Differences between income tax expense (benefit) and tax computed by applying the federal statutory rate of 35% to income before income taxes during each year is due to the following:

	Year Ended September 30,
	2013			2012			2011
	(In millions)
Income taxes at federal statutory rate	$	230.2		$	85.0		$	4.2
Increase (decrease) in tax resulting from:
State income taxes, net of federal benefit	6.5			12.1			2.4
Domestic production activities deduction	(6.5		)	—			—
Uncertain tax positions, net of deferred tax	(12.7		)	(2.3		)	(11.2		)
Valuation allowance	(24.1		)	(806.6		)	(54.1		)
Tax credits	(1.1		)	(1.3		)	(2.2		)
Other	2.8			(0.3		)	1.2
Total income tax expense (benefit)	$	195.1		$	(713.4	)	$	(59.7	)

Components of deferred tax assets and liabilities

Components of deferred income taxes are summarized as follows:

	September 30,
	2013			2012
	(In millions)
Deferred tax assets:
Inventory costs	$	74.5		$	68.4
Inventory impairments	267.6			323.4
Warranty and construction defect costs	114.5			116.7
Net operating loss carryforwards	99.3			188.9
Tax credit carryforwards	5.9			7.0
Incentive compensation plans	69.9			53.1
Deferral of profit on home sales	1.9			1.7
Other	21.5			31.8
Total deferred tax assets	655.1			791.0
Valuation allowance	(31.0		)	(41.9		)
Total deferred tax assets, net of valuation allowance	624.1			749.1
Deferred tax liabilities	37.5			39.6
Deferred income taxes, net	$	586.6		$	709.5

Rollforward of unrecognized tax benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

	Year Ended September 30,
	2013			2012			2011
	(In millions)
Unrecognized tax benefits, beginning of year	$	14.1		$	16.3		$	65.0
Reductions attributable to tax positions taken in prior years	(2.4		)	(1.6		)	(48.7		)
Reductions attributable to lapse of statute of limitations	(7.5		)	(0.6		)	—
Unrecognized tax benefits, end of year	$	4.2		$	14.1		$	16.3