XML 98 R20.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 12 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information
We have three homebuilding segments operating in 16 states. Beginning in the second quarter of fiscal 2011, through May 2, 2012, we operated our Pre-Owned Homes business in Arizona and Nevada. The results below include operating results of our Pre-Owned segment through May 2, 2012. Effective May 3, 2012, we contributed our Pre-Owned Homes business for an investment in an unconsolidated entity (see Note 3 for additional information). 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 were derived from the rental 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. 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 was defined as rental 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. The following information is in thousands:
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Revenue
 
 
 
 
 
West
$
391,648

 
$
233,133

 
$
364,530

East
402,466

 
343,826

 
451,162

Southeast
210,449

 
165,107

 
175,460

Pre-Owned
1,114

 
339

 
—

Continuing Operations
$
1,005,677

 
$
742,405

 
$
991,152


 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Operating income/(loss)
 
 
 
 
 
West
$
15,147

 
$
(28,406
)
 
$
1,120

East
9,152

 
11,611

 
11,329

Southeast
14,815

 
(2,740
)
 
(130
)
Pre-Owned
(229
)
 
(724
)
 
—

Segment total
38,885

 
(20,259
)
 
12,319

Corporate and unallocated (a)
(100,943
)
 
(111,986
)
 
(125,753
)
Total operating loss
(62,058
)
 
(132,245
)
 
(113,434
)
Equity in income (loss) of unconsolidated entities
304

 
560

 
(8,807
)
(Loss) gain on extinguishment of debt
(45,097
)
 
(2,909
)
 
43,901

Other expense, net (d)
(69,119
)
 
(62,224
)
 
(69,585
)
Loss from continuing operations before income taxes
$
(175,970
)
 
$
(196,818
)
 
$
(147,925
)

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Depreciation and amortization
 
 
 
 
 
West
$
4,980

 
$
3,651

 
$
5,161

East
3,536

 
2,621

 
3,665

Southeast
1,710

 
885

 
1,496

Pre-Owned
330

 
69

 
—

Segment total
10,556

 
7,226

 
10,322

Corporate and unallocated (a)
2,954

 
3,027

 
2,347

Continuing Operations
$
13,510

 
$
10,253

 
$
12,669


 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Capital Expenditures
 
 
 
 
 
West
$
3,031

 
$
4,041

 
$
3,939

East
3,532

 
2,051

 
1,734

Southeast
1,814

 
1,631

 
1,184

Pre-Owned (b)
7,933

 
11,415

 
—

Corporate and unallocated
1,053

 
1,376

 
3,992

Consolidated total
$
17,363

 
$
20,514

 
$
10,849


 
September 30, 2012
 
September 30, 2011
Assets
 
 
 
West
$
618,805

 
$
649,057

East
320,404

 
372,984

Southeast
160,868

 
162,135

Pre-Owned (b)
—

 
12,315

Corporate and unallocated (c)
882,141

 
780,986

Consolidated total
$
1,982,218

 
$
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 fiscal year ended September 30, 2012, corporate and unallocated also includes an $11 million recovery related to old water intrusion warranty and related legal expenditures.
(b)
Pre-owned assets included the cost of previously owned homes, net of accumulated depreciation, totaling $11.3 million (120 homes) as of September 30, 2011. Capital expenditures represent the purchase of previously owned homes through May 2, 2012 and September 30, 2011, respectively.
(c)
Primarily consists of cash and cash equivalents, consolidated inventory not owned, deferred taxes, capitalized interest and other items that are not allocated to the segments.
(d)
The fiscal year ended September 30, 2011, includes an $8.3 million benefit related to the cash reimbursements from our former CEO and former CFO in connection with their consent agreements with the Securities and Exchange Commission.