Segment Information

6 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company is a national homebuilder that is primarily engaged in the acquisition and development of land and the construction and sale of residential homes, with operations in 79 markets in 26 states across the United States. The Company designs, builds and sells single-family detached homes on lots it develops and on fully developed lots purchased ready for home construction. To a lesser extent, the Company also builds and sells attached homes, such as town homes, duplexes, triplexes and condominiums. Periodically, the Company sells land and lots to other developers and homebuilders where it has excess land and lot positions or for other strategic reasons. 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 primarily provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers. The financial services segment primarily generates its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services.

The Company’s 39 homebuilding operating divisions and its financial services operations 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 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

The accounting policies of the reporting segments are described throughout Note A included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2015. Financial information relating to the Company’s reporting segments is as follows:

	Three Months Ended   March 31,				Six Months Ended   March 31,
	2016		2015		2016		2015
	(In millions)
Revenues
Homebuilding revenues:
East	$	309.0	$	280.7	$	607.2	$	579.5
Midwest	162.1		145.0		285.4		274.9
Southeast	812.0		646.1		1,523.6		1,265.5
South Central	694.7		628.2		1,307.2		1,207.9
Southwest	79.9		70.9		153.8		146.3
West	643.3		567.6		1,184.9		1,117.4
Homebuilding revenues	2,701.0		2,338.5		5,062.1		4,591.5
Financial services revenues	66.9		59.5		122.2		109.2
Total revenues	$	2,767.9	$	2,398.0	$	5,184.3	$	4,700.7
Inventory Impairments
East	$	3.2	$	—	$	3.2	$	—
Midwest	—		—		—		—
Southeast	—		7.3		0.2		7.3
South Central	—		0.7		—		0.7
Southwest	—		—		—		—
West	—		0.1		0.3		4.0
Total inventory impairments	$	3.2	$	8.1	$	3.7	$	12.0
Income Before Income Taxes (1)
Homebuilding pre-tax income:
East	$	22.8	$	13.0	$	50.5	$	39.4
Midwest	9.0		10.2		16.0		15.0
Southeast	94.8		58.7		171.7		116.7
South Central	89.0		65.1		153.7		126.2
Southwest	2.0		1.2		4.7		3.1
West	65.5		60.4		115.5		114.3
Homebuilding pre-tax income	283.1		208.6		512.1		414.7
Financial services pre-tax income	17.4		21.5		29.7		36.1
Income before income taxes	$	300.5	$	230.1	$	541.8	$	450.8

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(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.

	March 31, 2016		September 30, 2015
	(In millions)
Homebuilding Inventories (1)
East	$	837.6	$	817.3
Midwest	451.5		474.5
Southeast	1,973.1		1,876.7
South Central	2,111.3		1,909.0
Southwest	346.0		312.4
West	2,233.1		2,165.3
Corporate and unallocated (2)	264.0		251.8
Total homebuilding inventories	$	8,216.6	$	7,807.0

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(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.