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Segment Information
 9 Months Ended
Jun. 30, 2017
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 townhomes, 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 operations generate most of their revenues from the sale of completed homes, with a lesser amount 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 its 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 Company’s operating segments are its 41 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
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, 2016. Financial information relating to the Company’s reporting segments is as follows:
 
 
Three Months Ended 
 June 30,
 
Nine Months Ended 
 June 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
(In millions)
Revenues
 
 
 
 
 
 
 
 
Homebuilding revenues:
 
 
 
 
 
 
 
 
East
 
$
482.2

 
$
391.2

 
$
1,160.7

 
$
998.3

Midwest
 
202.2

 
179.9

 
522.0

 
465.2

Southeast
 
1,136.3

 
913.3

 
2,988.7

 
2,436.9

South Central
 
924.8

 
816.1

 
2,497.1

 
2,123.4

Southwest
 
152.6

 
93.0

 
387.8

 
246.8

West
 
786.4

 
755.3

 
2,118.7

 
1,940.2

Homebuilding revenues
 
3,684.5

 
3,148.8

 
9,675.0

 
8,210.8

Financial services revenues
 
91.9

 
83.1

 
256.9

 
205.4

Total revenues
 
$
3,776.4

 
$
3,231.9

 
$
9,931.9

 
$
8,416.2

Inventory Impairments
 
 
 
 
 
 
 
 
East
 
$
—

 
$
4.2

 
$
5.8

 
$
7.4

Midwest
 
1.0

 
—

 
1.0

 
—

Southeast
 
—

 
—

 
—

 
0.2

South Central
 
—

 
1.0

 
1.4

 
1.0

Southwest
 
—

 
—

 
—

 
—

West
 
—

 
—

 
2.2

 
0.3

Total inventory impairments
 
$
1.0

 
$
5.2

 
$
10.4

 
$
8.9

Income Before Income Taxes (1) (2)
 
 
 
 
 
 
 
 
Homebuilding pre-tax income:
 
 
 
 
 
 
 
 
East
 
$
54.2

 
$
40.3

 
$
106.4

 
$
90.6

Midwest
 
17.9

 
13.4

 
28.8

 
29.4

Southeast
 
128.6

 
107.6

 
341.3

 
279.0

South Central
 
119.1

 
109.3

 
321.4

 
262.6

Southwest
 
14.8

 
0.9

 
26.0

 
5.6

West
 
80.6

 
76.9

 
207.6

 
192.1

Homebuilding pre-tax income
 
415.2

 
348.4

 
1,031.5

 
859.3

Financial services pre-tax income
 
33.9

 
31.3

 
92.7

 
64.6

Homebuilding and financial services pre-tax income
 
449.1

 
379.7

 
1,124.2

 
923.9

Other pre-tax loss
 
(4.6
)
 
(1.1
)
 
(7.7
)
 
(3.5
)
Income before income taxes
 
$
444.5

 
$
378.6

 
$
1,116.5

 
$
920.4

___________________
(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 are now grouped together and presented as other. The operating results of these subsidiaries are immaterial for separate reporting. The prior year amounts have been reclassified to conform to the current year presentation.

 
 
June 30,
2017
 
September 30,
2016
 
 
(In millions)
Homebuilding Inventories (1)
 
 
 
 
East
 
$
1,077.1

 
$
891.1

Midwest
 
483.2

 
441.2

Southeast
 
2,370.3

 
2,070.3

South Central
 
2,227.6

 
2,075.6

Southwest
 
547.9

 
371.1

West
 
2,611.2

 
2,247.6

Corporate and unallocated (2)
 
236.7

 
244.0

Total homebuilding inventories
 
$
9,554.0

 
$
8,340.9

______________

(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.