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Segment Information
 3 Months Ended
Dec. 31, 2011
Segment Information [Abstract]  
Segment Information

(12) 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 now 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
December 31,		  
    2011     2010  

Revenue

                

West

   $ 70,777     $ 39,548  

East

     81,818       50,214  

Southeast

     35,568       19,190  

Pre-Owned

     385       —    
   

 

 

    

 

 

  

Continuing Operations

   $ 188,548     $ 108,952  
   

 

 

    

 

 

  

 

 

                 
    Three Months Ended
December 31,		  
    2011     2010  

Operating income/(loss)

                

West

   $ (591 )    $ (3,172 ) 

East

     806       60  

Southeast

     785       (1,107 ) 

Pre-Owned

     (138 )      —    
   

 

 

    

 

 

  

Segment total

     862       (4,219 ) 

Corporate and unallocated (a)

     (17,561 )      (23,917 ) 
   

 

 

    

 

 

  

Total operating loss

     (16,699 )      (28,136 ) 
   

 

 

    

 

 

  

Equity in (loss) income of unconsolidated joint ventures

     (77 )      238  

Loss on extinguishment of debt

     —         (2,902 ) 

Other expense, net

     (18,273 )      (18,065 ) 
   

 

 

    

 

 

  

Loss from continuing operations before income taxes

   $ (35,049 )    $ (48,865 ) 
   

 

 

    

 

 

  

 

                 
    Three Months Ended
December 31,		  
    2011     2010  

Depreciation and amortization

                

West

   $ 780     $ 552  

East

     505       503  

Southeast

     339       119  

Pre-Owned

     119       —    
   

 

 

    

 

 

  

Segment total

     1,743       1,174  
   

 

 

    

 

 

  

Corporate and unallocated (a)

     660       731  
   

 

 

    

 

 

  

Continuing Operations

   $ 2,403     $ 1,905  
   

 

 

    

 

 

  

 

                 
    Three Months Ended
December 31,		  
    2011     2010  

Capital Expenditures

                

West

   $ 675     $ 684  

East

     815       486  

Southeast

     626       415  

Pre-Owned (b)

     6,375       —    

Corporate and unallocated

     145       820  
   

 

 

    

 

 

  

Consolidated total

   $ 8,636     $ 2,405  
   

 

 

    

 

 

  

 

 

                 
    December 31,
2011		     September 30,
2011		  

Assets

                

West

   $ 644,058     $ 649,057  

East

     356,274       372,984  

Southeast

     165,865       162,135  

Pre-Owned (b)

     19,146       12,315  

Corporate and unallocated (c)

     688,514       780,986  
   

 

 

    

 

 

  

Consolidated total

   $ 1,873,857     $ 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 quarter ended December 31, 2011, 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 $17.6 million (178 homes) and $11.3 million (120 homes) as of December 31, 2011 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.