5.	Segment information

The Company's Homebuilding operating segments are engaged in the acquisition and development of land primarily for residential purposes within the continental United States and the construction of housing on such land. As part of its ongoing efforts to structure the Company for profitability in the face of challenging market conditions, the Company realigned its organizational structure during the second quarter of 2011, which reduced the number of reportable segments from four to three. The operating data by segment provided in this note have been reclassified to conform to the current presentation. Accordingly, the Company's reportable Homebuilding segments are as follows:


East:		Connecticut, Delaware, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia

Gulf Coast:		Florida, Texas

West:		Arizona, California, Colorado, Hawaii, Illinois, Indiana, Michigan, Minnesota, Missouri, Nevada, New Mexico, Ohio, Oregon, Washington

The Company also has one reportable segment for its financial services operations, which consist of mortgage banking and title operations. The Company's Financial Services segment operates generally in the same markets as the Company's Homebuilding segments.

Evaluation of segment performance is based on operating earnings before provision for income taxes which, for the Homebuilding segments, is defined as home sale revenues and land sale revenues less home sale cost of revenues, land sale cost of revenues, and certain selling, general, and administrative and other expenses, plus equity income from unconsolidated entities, attributable to the Homebuilding segments. Operating earnings for the Financial Services segment is defined as revenues less costs associated with the Company's mortgage and title operations and certain selling, general, and administrative expenses incurred by or allocated to the Financial Services segment. Each reportable segment generally follows the same accounting policies described in Note 1 – "Summary of Significant Accounting Policies" to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010.


	Operating Data by Segment ($000's omitted)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Revenues:
East	$	379,662		$	321,817		$	951,918		$	1,108,220
Gulf Coast		342,860			277,699			878,448			881,906
West		391,505			431,239			972,259			1,300,156

		1,114,027			1,030,755			2,802,625			3,290,282
Financial Services		27,904			27,009			71,720			93,738

Consolidated revenues	$	1,141,931		$	1,057,764		$	2,874,345		$	3,384,020


Income (loss) before income taxes:
East	$	14,941		$	3,797		$	29,392		$	45,081
Gulf Coast		30,068			(17,075	)		47,310			(3,336	)
West		33,444			(21,276	)		11,500			4,946
Other homebuilding (a)		(285,936	)		(985,695	)		(364,325	)		(1,066,977	)

		(207,483	)		(1,020,249	)		(276,123	)		(1,020,286	)
Financial Services (b)		8,683			3,463			(6,987	)		350
Other non-operating (c)		(3,700	)		(7,051	)		(18,115	)		(24,135	)

Consolidated income (loss) before income taxes	$	(202,500	)	$	(1,023,837	)	$	(301,225	)	$	(1,044,071	)

(a)

Other homebuilding primarily includes the amortization of intangible assets, goodwill impairment, and amortization of capitalized interest.

(b)

Financial Services income before income taxes includes interest expense of $0.8 million and $1.9 million for the three and nine months ended September 30, 2010, respectively. Interest income included in Financial Services income before income taxes totaled $1.4 million and $3.4 million for the three and nine months ended September 30, 2011, respectively, and $1.6 million and $4.5 million for the three and nine months ended September 30, 2010, respectively.

(c)

Other non-operating includes the costs of certain shared services that benefit all operating segments, a portion of which are not allocated to the operating segments reported above.


	Valuation Adjustments and Write-Offs by Segment ($000's omitted)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011			2010
Land and community valuation adjustments:
East	$	526	$	4,974	$	795		$	5,451
Gulf Coast		—		20,938		—			28,965
West		—		23,926		1,818			39,294
Other homebuilding (a)		968		7,615		2,284			13,826

	$	1,494	$	57,453	$	4,897		$	87,536

Net realizable value adjustments—land held for sale:
East	$	—	$	—	$	—		$	—
Gulf Coast		143		186		143			507
West		—		462		(249	)		521

	$	143	$	648	$	(106	)	$	1,028

Write-off of deposits and pre-acquisition costs:
East	$	533	$	894	$	2,724		$	1,109
Gulf Coast		103		53		282			548
West		1,660		186		3,622			2,328

	$	2,296	$	1,133	$	6,628		$	3,985

Impairments of investments in unconsolidated joint ventures:
East	$	—	$	—	$	—		$	—
Gulf Coast		—		—		—			—
West		—		—		—			1,908

	$	—	$	—	$	—		$	1,908

Total valuation adjustments and write-offs	$	3,933	$	59,234	$	11,419		$	94,457

(a)

Primarily write-offs of capitalized interest related to land and community valuation adjustments.

Total assets and inventory by reportable segment were as follows ($000's omitted):


	September 30, 2011
	Homes Under Construction		Land Under Development		Land Held for Future Development		Total Inventory		Total Assets
East	$	508,909	$	761,701	$	256,517	$	1,527,127	$	1,691,242
Gulf Coast		309,122		585,266		208,545		1,102,933		1,245,297
West		570,875		954,944		315,364		1,841,183		2,020,661
Other homebuilding (a)		56,407		280,943		81,075		418,425		585,373

		1,445,313		2,582,854		861,501		4,889,668		5,542,573
Financial Services		—		—		—		—		207,379
Other non-operating (b)		—		—		—		—		1,478,702

	$	1,445,313	$	2,582,854	$	861,501	$	4,889,668	$	7,228,654


	December 31, 2010
	Homes Under Construction		Land Under Development		Land Held for Future Development		Total Inventory		Total Assets
East	$	455,637	$	762,778	$	262,653	$	1,481,068	$	1,682,442
Gulf Coast		313,734		555,384		239,950		1,109,068		1,294,738
West		518,427		963,259		329,108		1,810,794		1,966,986
Other homebuilding (a)		43,820		260,408		76,655		380,883		798,285

		1,331,618		2,541,829		908,366		4,781,813		5,742,451
Financial Services		—		—		—		—		222,989
Other non-operating (b)		—		—		—		—		1,733,936

	$	1,331,618	$	2,541,829	$	908,366	$	4,781,813	$	7,699,376

(a)

Other homebuilding primarily includes capitalized interest, goodwill, and intangibles.

(b)

Other non-operating primarily includes cash and equivalents, income taxes receivable, and other corporate items that are not allocated to the operating segments.