Segment Information

9 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE P – SEGMENT INFORMATION

     The Company’s 31 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, Minnesota and Wisconsin
Southeast:	Alabama, Florida and Georgia
South Central:	Louisiana, New Mexico (Las Cruces only), Oklahoma and Texas
Southwest:	Arizona and New Mexico
West:	California, Hawaii, Idaho, Nevada, Oregon, Utah and Washington

     During the three months ended September 30, 2010, a change in the composition of the Company’s operating divisions required that the Las Cruces, New Mexico market, previously included in the Southwest reporting segment, now be included in the South Central reporting segment. Consequently, the Company has restated the prior year segment information provided in this note to conform to the current year presentation.

     Homebuilding is the Company’s core business, generating 98% of consolidated revenues during the nine months ended June 30, 2011 and 2010. The Company’s homebuilding segments are primarily engaged in the acquisition and development of land and the construction and sale of residential homes on the land, in 26 states and 71 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 customers of the Company’s homebuilding segments. The Company generally does not retain or service the mortgages that it originates; rather, it seeks to sell the mortgages and 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 included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2010.

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
				Restated						Restated
	2011			2010			2011			2010
	(In millions)
Revenues
Homebuilding revenues:
East	$	114.7		$	150.6		$	308.9		$	381.8
Midwest		74.0			99.3			186.7			259.2
Southeast		194.2			247.9			484.8			575.8
South Central		294.6			462.8			752.6			1,111.9
Southwest		56.0			112.5			164.1			271.6
West		241.9			305.2			578.4			783.7
Total homebuilding revenues		975.4			1,378.3			2,475.5			3,384.0
Financial services revenues		23.8			27.8			63.0			67.7
Consolidated revenues	$	999.2		$	1,406.1		$	2,538.5		$	3,451.7
Inventory Impairments
East	$	0.1		$	5.3		$	2.1		$	7.4
Midwest		0.1			17.0			0.1			17.0
Southeast		5.1			6.4			9.8			7.9
South Central		—			0.2			0.2			0.4
Southwest		0.1			—			2.2			0.3
West		2.4			0.2			12.8			0.2
Total inventory impairments	$	7.8		$	29.1		$	27.2		$	33.2
Income (Loss) Before Income Taxes (1)
Homebuilding income (loss) before income taxes:
East	$	(1.0	)	$	(4.3	)	$	(13.6	)	$	(6.6	)
Midwest		0.1			(18.8	)		(13.1	)		(23.7	)
Southeast		(3.0	)		4.3			(16.8	)		2.5
South Central		19.0			40.4			30.1			82.1
Southwest		(0.5	)		7.8			(2.5	)		12.8
West		7.6			8.0			(18.5	)		17.5
Total homebuilding income (loss) before income taxes		22.2			37.4			(34.4	)		84.6
Financial services income before income taxes		6.7			8.9			12.6			16.6
Consolidated income (loss) before income taxes	$	28.9		$	46.3		$	(21.8	)	$	101.2

  (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 interest expense and those expenses associated with the corporate office are allocated to each segment based on the segment’s average inventory.

	June 30,		September 30,
	2011		2010
	(In millions)
Homebuilding Inventories (1)
East	$	484.4	$	511.5
Midwest		272.3		297.3
Southeast		691.0		656.4
South Central		780.8		760.1
Southwest		212.6		218.7
West		963.2		898.8
Corporate and unallocated (2)		96.5		106.2
Total homebuilding inventory	$	3,500.8	$	3,449.0

(1)	Homebuilding inventories are the only assets included in the measure of segment assets used by the Company’s chief operating decision maker, its CEO.
(2)	Corporate and unallocated consists primarily of capitalized interest and property taxes.