XML 22 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 6 Months Ended
Mar. 31, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information
We have three homebuilding segments operating in 16 states and beginning in the second quarter of fiscal 2011, we introduced our Pre-Owned Homes division which operates in Arizona and Nevada. Revenues in our homebuilding segments are derived from the sale of homes which we construct and from land and lot sales. Revenues from our Pre-Owned segment are derived from the rental and ultimate sale of previously owned homes purchased and improved by the Company. Our reportable segments have been determined on a basis that is used internally by management for evaluating segment performance and resource allocations. During the third quarter of fiscal 2011, in order to further optimize capital and resource allocations and based on our evaluation of both external market factors and our position in each market, we decided to discontinue our homebuilding operations in Northwest Florida. As a result, the information below for continuing operations and the Southeast segment, excludes results from our Northwest Florida market. The reportable homebuilding segments and all other homebuilding operations, not required to be reported separately, include operations conducting business in the following states:
West: Arizona, California, Nevada and Texas
East: Delaware, Indiana, Maryland, New Jersey, New York, Pennsylvania, Tennessee (Nashville) and Virginia
Southeast: Florida, Georgia, North Carolina (Raleigh) and South Carolina
Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding, land sale and other revenues less home construction, land development and land sales expense, commission expense, depreciation and amortization and certain general and administrative expenses which are incurred by or allocated to our homebuilding segments. Operating income for our Pre-Owned segment is defined as rental and home sale revenues less home repairs and operating expenses, home sales expense, depreciation and amortization and certain general and administrative expenses which are incurred by or allocated to the segment. The accounting policies of our segments are those described in Note 1 above and Note 1 to our consolidated financial statements in our 2011 Annual Report. The following information is in thousands:

 
Three Months Ended
 
Six Months Ended
 
March 31,
 
March 31,
 
2012
 
2011
 
2012
 
2011
Revenue
 
 
 
 
 
 
 
West
$
77,857

 
$
36,791

 
$
148,634

 
$
76,339

East
75,192

 
58,418

 
157,010

 
108,632

Southeast
38,070

 
30,507

 
73,638

 
49,697

Pre-Owned
524

 
—

 
909

 
—

Continuing Operations
$
191,643

 
$
125,716

 
$
380,191

 
$
234,668


 
Three Months Ended
 
Six Months Ended
 
March 31,
 
March 31,
 
2012
 
2011
 
2012
 
2011
Operating income/(loss)
 
 
 
 
 
 
 
West
$
3,377

 
$
(22,853
)
 
$
2,786

 
$
(26,025
)
East
(659
)
 
(503
)
 
147

 
(443
)
Southeast
1,180

 
294

 
1,965

 
(813
)
Pre-Owned
(62
)
 
(243
)
 
(200
)
 
(243
)
Segment total
3,836

 
(23,305
)
 
4,698

 
(27,524
)
Corporate and unallocated (a)
(21,530
)
 
(21,402
)
 
(39,091
)
 
(45,319
)
Total operating loss
(17,694
)
 
(44,707
)
 
(34,393
)
 
(72,843
)
Equity in income (loss) of unconsolidated joint ventures
4

 
71

 
(73
)

309

Loss on extinguishment of debt
(2,747
)
 
(102
)
 
(2,747
)
 
(3,004
)
Other expense, net (d)
(18,265
)
 
(11,466
)
 
(36,538
)
 
(29,531
)
Loss from continuing operations before income taxes
$
(38,702
)
 
$
(56,204
)
 
$
(73,751
)
 
$
(105,069
)

 
Three Months Ended
 
Six Months Ended
 
March 31,
 
March 31,
 
2012
 
2011
 
2012
 
2011
Depreciation and amortization
 
 
 
 
 
 
 
West
$
1,090

 
$
570

 
$
1,870

 
$
1,122

East
805

 
470

 
1,310

 
973

Southeast
374

 
132

 
713

 
251

Pre-Owned
154

 
1

 
273

 
1

Segment total
2,423

 
1,173

 
4,166

 
2,347

Corporate and unallocated (a)
767

 
889

 
1,427

 
1,620

Continuing Operations
$
3,190

 
$
2,062

 
$
5,593

 
$
3,967


 
Six Months Ended
 
March 31,
 
2012
 
2011
Capital Expenditures
 
 
 
West
$
1,415

 
$
1,830

East
1,883

 
1,242

Southeast
1,078

 
825

Pre-Owned (b)
7,906

 
—

Corporate and unallocated
206

 
1,104

Consolidated total
$
12,488

 
$
5,001


 
March 31, 2012
 
September 30, 2011
Assets
 
 
 
West
$
640,769

 
$
649,057

East
361,404

 
372,984

Southeast
176,373

 
162,135

Pre-Owned (b)
20,451

 
12,315

Corporate and unallocated (c)
658,947

 
780,986

Consolidated total
$
1,857,944

 
$
1,977,477


(a)
Corporate and unallocated includes amortization of capitalized interest and numerous shared services functions that benefit all segments, the costs of which are not allocated to the operating segments reported above including information technology, national sourcing and purchasing, treasury, corporate finance, legal, branding and other national marketing costs. For the six months ended March 31, 2012, corporate and unallocated also includes an $11 million recovery related to old water intrusion warranty and related legal expenditures.
(b)
Pre-owned assets include the cost of previously owned homes, net of accumulated depreciation, totaling $19.0 million (190 homes) and $11.3 million (120 homes) as of March 31, 2012 and September 30, 2011, respectively. Capital expenditures represent the purchase of previously owned homes during the quarter.
(c)
Primarily consists of cash and cash equivalents, consolidated inventory not owned, deferred taxes, capitalized interest and other corporate items that are not allocated to the segments.
(d)
The three and six months ended March 31, 2011, includes a $6.8 million benefit related to the cash reimbursement from our former CEO in connection with his consent agreement with the Securities and Exchange Commission.