Discontinued Operations

12 Months Ended

Sep. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

(15)   Discontinued Operations

We continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase shareholder value. This review entails an evaluation of both external market factors and our position in each market and over time, has resulted in the decision to discontinue certain of our homebuilding operations. During fiscal 2008, we discontinued our homebuilding operations in Charlotte, NC, Cincinnati/Dayton, OH, Columbia, SC, Columbus, OH, Lexington, KY, Denver, CO and Fresno, CA. During fiscal 2010, we substantially completed our homebuilding operations in Jacksonville, Florida and Albuquerque, New Mexico. During the third quarter of fiscal 2011, we decided to discontinue our homebuilding operations in Northwest Florida which have historically been reported in our Southeast segment.

Up until September 30, 2010, we offered title services to our homebuyers in several of our markets. Effective September 30, 2010, we had sold or discontinued all of our title services operations.

We have classified the results of operations of our prior mortgage origination services, title services and our exit markets as discontinued operations in the accompanying consolidated statements of operations for all periods presented. Discontinued operations were not segregated in the consolidated balance sheets or statements of cash flows. Therefore, amounts for certain captions in the consolidated statements of cash flows will not agree with the respective data in the consolidated statements of operations. The results of our discontinued operations in the Consolidated Statements of Operations for the fiscal years ended September 30, 2011, 2010, and 2009 were as follows (in thousands):

	Fiscal Year Ended September 30,
	2011			2010			2009
Total revenue	$	42,806		$	51,856		$	61,317
Home construction and land sales expenses		38,157			43,374			51,445
Inventory impairments and lot option abandonments		2,906			2,273			13,522
Gross profit (loss)		1,743			6,209			(3,650	)
Commissions		1,167			2,219			2,486
General and administrative expenses		4,270			7,460			10,338
Depreciation and amortization		455			736			595
Operating loss		(4,149	)		(4,206	)		(17,069	)
Equity in loss of unconsolidated joint ventures		(518	)		(15,543	)		(2,163	)
Gain on extinguishment of debt		—			—			3,574
Other income (expense), net		55			437			(1,020	)
Loss from discontinued operations before income taxes		(4,612	)		(19,312	)		(16,678	)
Provision (benefit) from income taxes		63			(14,833	)		(726	)
Loss from discontinued operations, net of tax	$	(4,675	)	$	(4,479	)	$	(15,952	)

Assets and liabilities from discontinued operations at September 30, 2011 and 2010 consist of the following (in thousands):

	2011		2010
ASSETS
Cash and cash equivalents	$	1,110	$	411
Accounts receivable		182		2,214
Inventory		13,351		46,280
Other		596		900
Assets of discontinued operations	$	15,239	$	49,805
LIABILITIES
Trade accounts payable and other liabilities	$	3,329	$	8,727
Accrued warranty expenses		4,413		6,279
Other secured notes payable		—		857
Liabilities of discontinued operations	$	7,742	$	15,863