Segment Information

9 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

(11) Segment Information

We have three homebuilding segments operating in 16 states and beginning in the second quarter of fiscal 2011, we have introduced our Pre-Owned Homes division in Arizona and Nevada. Revenues in our homebuilding segments are derived from the sale of homes which we construct and from land and lot sales. Revenues from our Pre-Owned segment are derived from the rental and ultimate sale of previously owned homes purchased and improved by the Company. Our reportable segments have been determined on a basis that is used internally by management for evaluating segment performance and resource allocations. In alignment therewith, during the fourth quarter of fiscal year 2010, we moved our Raleigh, North Carolina market from our East segment to our Southeast segment. During the third quarter of fiscal 2011, in order to further optimize capital and resource allocations and based on our evaluation of both external market factors and our position in each market, we decided to discontinue our homebuilding operations in Northwest Florida. As a result, the information below for continuing operations and the Southeast segment, excludes results from our Northwest Florida market.

The reportable homebuilding segments and all other homebuilding operations, not required to be reported separately, include operations conducting business in the following states:

West: Arizona, California, Nevada and Texas
East: Delaware, Indiana, Maryland, New Jersey, New York, Pennsylvania, Tennessee (Nashville) and Virginia
Southeast: Florida, Georgia, North Carolina (Raleigh), and South Carolina

Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding, land sale and other revenues less home construction, land development and land sales expense, depreciation and amortization and certain selling, general and administrative expenses which are incurred by or allocated to our homebuilding segments. Operating income for our Pre-Owned segment is defined as rental and home sale revenues less home repairs and operating expenses, home sales expense, depreciation and amortization and certain selling, general and administrative expenses which are incurred by or allocated to the segment. The accounting policies of our segments are those described in Note 1 and Note 1 to our 2010 Annual Report. The following information is in thousands:

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Revenue
West	$	55,502	$	117,764	$	131,841	$	284,327
East		77,895		143,855		186,527		312,823
Southeast		39,288		60,229		88,985		125,257
Pre-Owned		144		—		144		—
Continuing Operations	$	172,829	$	321,848	$	407,497	$	722,407

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Operating income/(loss)
West	$	(2,542	)	$	2,486		$	(28,567	)	$	6,128
East		1,905			9,687			1,462			19,996
Southeast		(3,381	)		4,700			(4,194	)		(947	)
Pre-Owned		(75	)		—			(318	)		—
Segment total		(4,093	)		16,873			(31,617	)		25,177
Corporate and unallocated (a)		(31,146	)		(36,259	)		(76,465	)		(95,726	)
Total operating loss		(35,239	)		(19,386	)		(108,082	)		(70,549	)
Equity in income (loss) of unconsolidated joint ventures		63			(10	)		372			(8,819	)
Gain (loss) on extinguishment of debt		95			(9,045	)		(2,909	)		43,901
Other expense, net		(17,085	)		(16,373	)		(46,616	)		(53,939	)
Loss from continuing operations before income taxes	$	(52,166	)	$	(44,814	)	$	(157,235	)	$	(89,406	)

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Depreciation and amortization
West	$	1,160	$	1,425	$	2,282	$	3,869
East		544		839		1,517		2,439
Southeast		222		559		473		1,258
Pre-Owned		12		—		13		—
Segment total		1,938		2,823		4,285		7,566
Corporate and unallocated (a)		722		530		2,342		1,692
Continuing Operations	$	2,660	$	3,353	$	6,627	$	9,258

	Nine Months Ended
	June 30,
	2011		2010
Capital Expenditures
West	$	3,197	$	2,558
East		1,720		1,076
Southeast		1,189		917
Pre-Owned		4,801		—
Corporate and unallocated		1,200		2,002
Discontinued operations		27		105
Consolidated total	$	12,134	$	6,658

	June 30,		September 30,
	2011		2010
Assets
West	$	679,101	$	630,376
East		383,981		333,648
Southeast		181,661		161,392
Pre-Owned		4,843		—
Corporate and unallocated (b)		717,766		727,681
Discontinued operations		37,717		49,805
Consolidated total	$	2,005,069	$	1,902,902

(a)	Corporate and unallocated includes amortization of capitalized interest and numerous shared services functions that benefit all segments, the costs of which are not allocated to the operating segments reported above including information technology, national sourcing and purchasing, treasury, corporate finance, legal, branding and other national marketing costs.
(b)	Primarily consists of cash and cash equivalents, consolidated inventory not owned, deferred taxes, capitalized interest and other corporate items that are not allocated to the segments.