Segment Information

12 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

(14)   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 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. The following information is in thousands:

	2011		2010		2009
Revenue
West	$	233,133	$	364,530	$	409,168
East		343,826		451,162		374,619
Southeast		165,107		175,460		178,098
Pre-Owned		339		—		—
Continuing Operations	$	742,405	$	991,152	$	961,885

	Fiscal Year Ended September 30,
	2011			2010			2009
Operating income (loss)
West	$	(28,406	)	$	1,120		$	(31,889	)
East		11,611			11,329			(2,723	)
Southeast		(2,740	)		(130	)		(30,070	)
Pre-Owned		(724	)		—			—
Segment total		(20,259	)		12,319			(64,682	)
Corporate and unallocated(a)		(111,986	)		(125,753	)		(174,709	)
Total operating loss		(132,245	)		(113,434	)		(239,391	)
Equity in income (loss) of unconsolidated joint ventures		560			(8,807	)		(12,112	)
(Loss) gain on extinguishment of debt		(2,909	)		43,901			144,503
Other expense, net		(62,224	)		(69,585	)		(74,781	)
Loss from continuing operations before income taxes	$	(196,818	)	$	(147,925	)	$	(181,781	)

	Fiscal Year Ended September 30,
	2011		2010		2009
Depreciation and amortization
West	$	3,651	$	5,161	$	6,692
East		2,621		3,665		5,469
Southeast		885		1,496		2,385
Pre-Owned		69		—		—
Segment total		7,226		10,322		14,546
Corporate and unallocated(a)		3,027		2,347		3,743
Continuing Operations	$	10,253	$	12,669	$	18,289

	September 30,		September 30,
	2011		2010
Assets
West	$	649,057	$	630,376
East		372,984		333,648
Southeast		162,135		161,392
Pre-Owned		12,315		—
Corporate and unallocated(b)		765,747		727,681
Discontinued operations		15,239		49,805
Consolidated total	$	1,977,477	$	1,902,902

	Fiscal Year Ended September 30,
	2011		2010
Capital Expenditures
West	$	4,041	$	3,939
East		2,051		1,734
Southeast		1,631		1,184
Pre-Owned		11,415		—
Corporate and unallocated		1,334		3,866
Discontinued operations		42		126
Consolidated total	$	20,514	$	10,849

a. Corporate and unallocated includes the 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. Fiscal 2011, fiscal 2010 and fiscal 2009 include $3.8 million, $10.2 million and $8.3 million of support-related costs related to the Company’s assistance in on-going government investigations (see Note 13), respectively. Fiscal 2009 also includes $16 million for obligations related to the government investigation and $16.1 million of non-cash goodwill impairment charges to write-off all of the goodwill allocated to certain underperforming markets (see Note 1).

b. Primarily consists of cash and cash equivalents, consolidated inventory not owned, income tax receivable, deferred taxes, and capitalized interest and other corporate items that are not allocated to the segments.