Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

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

	Year Ended September 30,
	2014		2013			2012
	(In millions)
Current tax expense (benefit):
Federal	$	253.6	$	66.6		$	(7.0	)
State	9.1		6.8			3.1
	262.7		73.4			(3.9		)
Deferred tax expense (benefit):
Federal	2.9		146.3			(616.1		)
State	15.1		(24.6		)	(93.4		)
	18.0		121.7			(709.5		)
Total income tax expense (benefit)	$	280.7	$	195.1		$	(713.4	)

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,
	2014			2013			2012
	(In millions)
Income taxes at federal statutory rate	$	285.0		$	230.2		$	85.0
Increase (decrease) in tax resulting from:
State income taxes, net of federal benefit	24.9			6.5			12.1
Domestic production activities deduction	(22.4		)	(6.5		)	—
Uncertain tax positions	(6.4		)	(12.7		)	(2.3		)
Valuation allowance	0.1			(24.1		)	(806.6		)
Tax credits	(0.9		)	(1.1		)	(1.3		)
Other	0.4			2.8			(0.3		)
Total income tax expense (benefit)	$	280.7		$	195.1		$	(713.4	)

Components of deferred tax assets and liabilities

Components of deferred income taxes are summarized as follows:

	September 30,
	2014			2013
	(In millions)
Deferred tax assets:
Inventory costs	$	88.6		$	74.5
Inventory impairments	234.7			267.6
Warranty and construction defect costs	117.3			114.5
Net operating loss carryforwards	84.5			99.3
Tax credit carryforwards	7.6			5.9
Incentive compensation plans	69.3			69.9
Deferral of profit on home sales	1.9			1.9
Other	19.9			21.5
Total deferred tax assets	623.8			655.1
Valuation allowance	(31.1		)	(31.0		)
Total deferred tax assets, net of valuation allowance	592.7			624.1
Deferred tax liabilities	27.7			37.5
Deferred income taxes, net	$	565.0		$	586.6

Rollforward of unrecognized tax benefits

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

	Year Ended September 30,
	2014			2013			2012
	(In millions)
Unrecognized tax benefits, beginning of year	$	4.2		$	14.1		$	16.3
Reductions attributable to tax positions taken in prior years	(4.2		)	(2.4		)	(1.6		)
Reductions attributable to lapse of statute of limitations	—			(7.5		)	(0.6		)
Unrecognized tax benefits, end of year	$	—		$	4.2		$	14.1