Discontinued Operations

9 Months Ended

Jun. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

(13) Discontinued Operations

We continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase shareholder value. This review entails an evaluation of both external market factors and our position in each market and over time, has resulted in the decision to discontinue certain of our homebuilding operations. During fiscal 2008 and 2009, we discontinued our homebuilding operations in Charlotte, NC, Cincinnati/Dayton, OH, Columbia, SC, Columbus, OH, Lexington, KY, Denver, CO and Fresno, CA. During the fourth quarter of fiscal 2010, we substantially completed our homebuilding operations in Jacksonville, Florida and Albuquerque, New Mexico, which were historically reported in our Southeast and West segments, respectively. During the third quarter of fiscal 2011, we decided to discontinue our homebuilding operations in Northwest Florida which have historically been reported in our Southeast segment.

Up until September 30, 2010, we offered title services to our homebuyers in several of our markets. Effective September 30, 2010, we had sold or discontinued all of our title services operations. The operating results of our title services operations were previously reported in our Financial Services segment.

We have classified the results of operations of our mortgage origination services, title services and our exit markets as discontinued operations in the accompanying consolidated statements of operations for all periods presented. Discontinued operations were not segregated in the consolidated balance sheets or statements of cash flows. Therefore, amounts for certain captions in the consolidated statements of cash flows will not agree with the respective data in the consolidated statements of operations. The results of our discontinued operations in the Consolidated Statements of Operations for the three and nine months ended June 30, 2011 and 2010 were as follows (in thousands):

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Total revenue	$	4,717		$	18,280		$	14,627		$	35,390
Home construction and land sales expenses		4,002			14,629			11,236			28,929
Inventory impairments and lot option abandonments		2,494			152			2,814			978
Gross (loss) profit		(1,779	)		3,499			577			5,483
Selling, general and administrative expenses		1,137			2,442			3,553			6,666
Depreciation and amortization		282			271			406			537
Operating income (loss)		(3,198	)		786			(3,382	)		(1,720	)
Equity in loss of unconsolidated joint ventures		(164	)		(12,482	)		(513	)		(15,226	)
Other income, net		—			33			26			105
Loss from discontinued operations before income taxes		(3,362	)		(11,663	)		(3,869	)		(16,841	)
Provision (benefit) from income taxes		3			(7,231	)		9			(14,773	)
Loss from discontinued operations, net of tax	$	(3,365	)	$	(4,432	)	$	(3,878	)	$	(2,068	)

Assets and liabilities from discontinued operations at June 30, 2011 and September 30, 2010, consist of the following (in thousands):

	June 30,		September 30,
	2011		2010
ASSETS
Cash and cash equivalents	$	—	$	411
Accounts receivable		358		2,214
Inventory		36,746		46,280
Other assets		613		900
Assets of discontinued operations	$	37,717	$	49,805
LIABILITIES
Trade accounts payable and other liabilities	$	3,983	$	8,727
Accrued warranty expenses		4,568		6,279
Other secured notes payable		—		857
Liabilities of discontinued operations	$	8,551	$	15,863