Segment Information

12 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s operating segments are its 39 homebuilding divisions, its financial services operations and its other business activities. The homebuilding operating segments are aggregated into six reporting segments and the financial services 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

Homebuilding is the Company’s core business, generating 98% of consolidated revenues in fiscal 2016, 2015 and 2014. The Company’s homebuilding segments are primarily engaged in the acquisition and development of land and the construction and sale of residential homes in 26 states and 78 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 to homebuyers in many of the Company’s homebuilding markets. The segment generates the substantial majority of its revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. The Company sells substantially all of the mortgages it originates and the related servicing rights to third-party purchasers.

In addition to the Company’s core homebuilding and financial services operations, the Company has subsidiaries that engage in other business activities. These subsidiaries conduct insurance-related operations, construct and own income-producing rental properties, own non-residential real estate including ranch land and improvements and own and operate oil and gas related assets.

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,
	2016			2015		2014
				(In millions)
Revenues
Homebuilding revenues:
East	$	1,446.5		$	1,333.6	$	954.7
Midwest	651.7			666.1		483.5
Southeast	3,463.5			2,890.6		2,167.0
South Central	2,995.1			2,725.2		1,971.2
Southwest	388.1			336.1		285.2
West	2,916.9			2,607.4		1,996.9
Homebuilding revenues	11,861.8			10,559.0		7,858.5
Financial services revenues	295.6			265.0		166.4
Total revenues	$	12,157.4		$	10,824.0	$	8,024.9
Inventory Impairments
East	$	12.3		$	14.3	$	17.7
Midwest	—			—		49.3
Southeast	0.7			8.8		3.1
South Central	1.0			1.4		—
Southwest	6.0			—		—
West	0.3			20.4		5.1
Total inventory impairments	$	20.3		$	44.9	$	75.2
Income Before Income Taxes (1) (2)
Homebuilding pre-tax income (loss):
East	$	138.7		$	94.2	$	45.2
Midwest	44.3			49.8		(9.6		)
Southeast	388.4			278.7		217.9
South Central	374.8			296.6		207.9
Southwest	7.3			13.1		25.5
West	310.9			285.9		281.6
Homebuilding pre-tax income	1,264.4			1,018.3		768.5
Financial services pre-tax income	98.1			105.1		45.4
Homebuilding and financial services pre-tax income	1,362.5			1,123.4		813.9
Other pre-tax income (loss)	(9.0		)	—		0.3
Income before income taxes	$	1,353.5		$	1,123.4	$	814.2

_____________

(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 expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances.

(2) The operating results of certain subsidiaries that were previously included with the Company’s homebuilding operations and are immaterial for separate reporting, are now grouped together and presented as other. The prior year amounts have been reclassified to conform to the current year presentation.

	September 30,
	2016		2015
	(In millions)
Homebuilding Inventories (1):
East	$	891.1	$	817.3
Midwest	441.2		474.5
Southeast	2,070.3		1,876.7
South Central	2,075.6		1,909.0
Southwest	371.1		312.4
West	2,247.6		2,165.3
Corporate and unallocated (2)	244.0		251.8
Total homebuilding inventories	$	8,340.9	$	7,807.0

_____________

(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.