Segment Information

12 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s 37 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, Oklahoma and Texas
Southwest:	Arizona and New Mexico
West:	California, Hawaii, Nevada, Oregon, Utah and Washington

Homebuilding is the Company’s core business, generating 98% of consolidated revenues in fiscal 2014 and 97% of consolidated revenues in fiscal 2013 and 2012. The Company’s homebuilding segments are primarily engaged in the acquisition and development of land and the construction and sale of residential homes in 27 states and 79 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 sells substantially all of 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 accounting policies of the reporting segments are described throughout Note A. Financial information relating to the Company's reporting segments is as follows:

	Year Ended September 30,
	2014			2013		2012
				(In millions)
Revenues
Homebuilding revenues:
East	$	954.7		$	686.3	$	542.4
Midwest	483.5			471.5		339.3
Southeast	2,167.0			1,520.7		934.6
South Central	1,971.2			1,526.2		1,158.4
Southwest	285.2			327.7		270.7
West	1,996.9			1,553.5		990.8
Homebuilding revenues	7,858.5			6,085.9		4,236.2
Financial services revenues	166.4			173.4		117.8
Total revenues	$	8,024.9		$	6,259.3	$	4,354.0
Inventory Impairments
East	$	17.7		$	0.1	$	1.0
Midwest	49.3			—		—
Southeast	3.1			—		1.6
South Central	—			1.0		0.1
Southwest	—			—		0.5
West	5.1			20.2		—
Total inventory impairments	$	75.2		$	21.3	$	3.2
Income (Loss) Before Income Taxes (1)
Homebuilding pre-tax income (loss):
East	$	45.2		$	48.3	$	16.0
Midwest	(9.5		)	38.9		1.1
Southeast	218.0			148.4		38.0
South Central	208.0			149.0		80.6
Southwest	25.5			26.3		16.8
West	281.6			181.4		51.2
Homebuilding pre-tax income	768.8			592.3		203.7
Financial services pre-tax income	45.4			65.5		39.2
Income before income taxes	$	814.2		$	657.8	$	242.9

____________

(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.

	September 30,
	2014		2013
	(In millions)
Homebuilding Inventories (1):
East	$	842.7	$	742.9
Midwest	477.6		412.2
Southeast	1,943.0		1,508.5
South Central	1,742.5		1,443.6
Southwest	292.9		262.4
West	2,169.4		1,668.2
Corporate and unallocated (2)	232.4		159.6
Total homebuilding inventories	$	7,700.5	$	6,197.4

____________

(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.