Segment Information

12 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s 39 homebuilding operating divisions and its financial services operation are its operating segments. The homebuilding operating segments are aggregated into six reporting segments and the financial services operating segment is its own reporting segment. The Company’s reportable homebuilding segments are: East, Midwest, Southeast, South Central, Southwest and West. These reporting segments have homebuilding operations located in the following states:

East:	Delaware, Georgia (Savannah only), Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina and Virginia
Midwest:	Colorado, Illinois, Indiana and Minnesota
Southeast:	Alabama, Florida, Georgia, Mississippi and Tennessee
South Central:	Louisiana, Oklahoma and Texas
Southwest:	Arizona and New Mexico
West:	California, Hawaii, Nevada, Oregon, Utah and Washington

Homebuilding is the Company’s core business, generating 98% of consolidated revenues in both fiscal 2015 and 2014, and 97% of consolidated revenues in fiscal 2013. The Company’s homebuilding segments are primarily engaged in the acquisition and development of land and the construction and sale of residential homes in 27 states and 79 markets in the United States. The homebuilding segments generate most of their revenues from the sale of completed homes, and to a lesser extent, from the sale of land and lots.

The Company’s financial services segment provides mortgage financing and title agency services primarily to the Company’s homebuilding customers. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers. The financial services segment generates its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services.

The accounting policies of the reporting segments are described throughout Note A. Financial information relating to the Company's reporting segments is as follows:

	Year Ended September 30,
	2015		2014			2013
			(In millions)
Revenues
Homebuilding revenues:
East	$	1,333.6	$	954.7		$	686.3
Midwest	666.1		483.5			471.5
Southeast	2,890.6		2,167.0			1,520.7
South Central	2,725.2		1,971.2			1,526.2
Southwest	336.1		285.2			327.7
West	2,607.4		1,996.9			1,553.5
Homebuilding revenues	10,559.0		7,858.5			6,085.9
Financial services revenues	265.0		166.4			173.4
Total revenues	$	10,824.0	$	8,024.9		$	6,259.3
Inventory Impairments
East	$	14.3	$	17.7		$	0.1
Midwest	—		49.3			—
Southeast	8.8		3.1			—
South Central	1.4		—			1.0
Southwest	—		—			—
West	20.4		5.1			20.2
Total inventory impairments	$	44.9	$	75.2		$	21.3
Income Before Income Taxes (1)
Homebuilding pre-tax income (loss):
East	$	94.2	$	45.2		$	48.3
Midwest	49.8		(9.5		)	38.9
Southeast	278.7		218.0			148.4
South Central	296.6		208.0			149.0
Southwest	13.1		25.5			26.3
West	285.9		281.6			181.4
Homebuilding pre-tax income	1,018.3		768.8			592.3
Financial services pre-tax income	105.1		45.4			65.5
Income before income taxes	$	1,123.4	$	814.2		$	657.8

____________

(1) Expenses maintained at the corporate level consist primarily of interest and property taxes, which are capitalized and amortized to cost of sales or expensed directly, and the expenses related to operating the Company’s corporate office. The amortization of capitalized interest and property taxes is allocated to each segment based on the segment’s cost of sales, while those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances.

	September 30,
	2015		2014
	(In millions)
Homebuilding Inventories (1):
East	$	817.3	$	842.7
Midwest	474.5		477.6
Southeast	1,876.7		1,943.0
South Central	1,909.0		1,742.5
Southwest	312.4		292.9
West	2,165.3		2,169.4
Corporate and unallocated (2)	251.8		232.4
Total homebuilding inventories	$	7,807.0	$	7,700.5

____________

(1) Homebuilding inventories are the only assets included in the measure of homebuilding segment assets used by the Company’s chief operating decision makers.

(2) Corporate and unallocated consists primarily of capitalized interest and property taxes.