Segment Information

9 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company is a national homebuilder that is engaged in the acquisition and development of land and the construction and sale of residential homes on the land, with operations in 79 markets in 27 states across the United States. The Company designs, builds and sells single-family detached homes on lots it develops and on finished lots purchased ready for home construction. To a lesser extent, the Company also builds and sells attached homes, such as town homes, duplexes, triplexes and condominiums. Periodically, the Company sells land and lots to other developers and homebuilders where it has excess land and lot positions. 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 also provides mortgage financing and title agency services, primarily to its homebuilding customers, and generally sells the mortgages it originates and the 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 Company’s 35 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, Indiana and Minnesota
Southeast:	Alabama, Florida, Georgia, Mississippi and Tennessee
South Central:	Louisiana, New Mexico (Las Cruces only), Oklahoma and Texas
Southwest:	Arizona and New Mexico
West:	California, Hawaii, Nevada, Oregon, Utah and Washington

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, 2013. Financial information relating to the Company's reporting segments is as follows:

	Three Months Ended June 30,					Nine Months Ended June 30,
	2014			2013		2014			2013
	(In millions)
Revenues
Homebuilding revenues:
East	$	251.3		$	163.3	$	644.6		$	454.4
Midwest	133.1			147.6		338.8			329.9
Southeast	584.4			425.6		1,503.0			1,050.3
South Central	533.3			414.5		1,384.9			1,089.1
Southwest	74.1			86.1		207.8			241.0
West	526.7			407.4		1,356.0			1,103.4
Homebuilding revenues	2,102.9			1,644.5		5,435.1			4,268.1
Financial services revenues	44.1			48.3		117.4			131.3
Total revenues	$	2,147.0		$	1,692.8	$	5,552.5		$	4,399.4
Inventory Impairments
East	$	2.0		$	—	$	2.0		$	—
Midwest	48.8			—		48.8			—
Southeast	0.7			—		2.8			—
South Central	—			—		—			—
Southwest	—			—		—			—
West	3.2			—		3.4			—
Total inventory impairments	$	54.7		$	—	$	57.0		$	—
Income Before Income Taxes (1)
Homebuilding pre-tax income:
East	$	13.3		$	11.4	$	39.0		$	26.9
Midwest	(37.2		)	15.6		(18.1		)	23.5
Southeast	52.3			48.5		156.0			96.1
South Central	54.0			44.7		143.0			102.4
Southwest	8.2			7.7		19.7			24.6
West	68.0			57.5		192.6			129.5
Homebuilding pre-tax income	158.6			185.4		532.2			403.0
Financial services pre-tax income	13.2			19.7		31.2			52.1
Income before income taxes	$	171.8		$	205.1	$	563.4		$	455.1

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(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 those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances.

	June 30, 2014		September 30, 2013
	(In millions)
Homebuilding Inventories (1)
East	$	845.2	$	742.9
Midwest	440.0		412.2
Southeast	1,860.3		1,508.5
South Central	1,643.9		1,443.6
Southwest	282.9		262.4
West	2,079.4		1,668.2
Corporate and unallocated (2)	223.9		159.6
Total homebuilding inventory	$	7,375.6	$	6,197.4

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(1) Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision makers.

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