Segment Information

12 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE M — SEGMENT INFORMATION

The Company’s 29 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 and Minnesota
Southeast:	Alabama, Florida and Georgia
South Central:	Louisiana, New Mexico (Las Cruces only), Oklahoma and Texas
Southwest:	Arizona and New Mexico
West:	California, Hawaii, Idaho, Nevada, Oregon, Utah and Washington

Homebuilding is the Company’s core business, generating 98% of consolidated revenues in fiscal 2011, 2010 and 2009. The Company’s homebuilding segments are primarily engaged in the acquisition and development of land and the construction and sale of residential homes on the land, in 25 states and 73 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 generally does not retain or service originated mortgages; rather, it seeks to sell the mortgages and 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.

	Year Ended September 30,
	2011			2010			2009
				(In millions)
Revenues
Homebuilding revenues:
East	$	438.5		$	492.3		$	347.1
Midwest		261.5			331.0			314.5
Southeast		696.8			747.6			570.8
South Central		1,081.0			1,383.5			1,024.6
Southwest		234.8			329.7			382.4
West		837.0			1,025.6			964.5
Total homebuilding revenues		3,549.6			4,309.7			3,603.9
Financial services revenues		87.2			90.5			53.7
Consolidated revenues	$	3,636.8		$	4,400.2		$	3,657.6
Inventory Impairments
East	$	3.5		$	9.0		$	54.3
Midwest		0.1			21.9			46.3
Southeast		15.8			17.0			36.7
South Central		0.2			13.3			17.0
Southwest		4.4			0.6			36.5
West		13.3			0.5			187.0
Total inventory impairments	$	37.3		$	62.3		$	377.8
Income (Loss) Before Income Taxes(1)
Homebuilding income (loss) before income taxes:
East	$	(13.5	)	$	(6.3	)	$	(95.9	)
Midwest		(13.7	)		(31.3	)		(104.9	)
Southeast		(19.9	)		(7.5	)		(73.2	)
South Central		52.4			83.4			4.9
Southwest		(3.8	)		12.0			(45.8	)
West		(8.5	)		27.8			(226.4	)
Total homebuilding income (loss) before income taxes		(7.0	)		78.1			(541.3	)
Financial services income (loss) before income taxes		19.1			21.4			(15.5	)
Consolidated income (loss) before income taxes	$	12.1		$	99.5		$	(556.8	)

(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 revenue, while interest expense and those expenses associated with the corporate office are allocated to each segment based on the segment’s inventory balances.

	September 30,
	2011		2010
	(In millions)
Homebuilding Inventories (1):
East	$	497.3	$	511.5
Midwest		268.5		297.3
Southeast		692.9		656.4
South Central		768.5		760.1
Southwest		193.6		218.7
West		938.4		898.8
Corporate and unallocated (2)		90.5		106.2
Total homebuilding inventory	$	3,449.7	$	3,449.0

(1)	Homebuilding inventories are the only assets included in the measure of segment assets used by the Company’s chief operating decision maker, its CEO.
(2)	Corporate and unallocated consists primarily of capitalized interest and property taxes.