Fiscal Year Ended September 30, 2009 Compared to Fiscal Year Ended September 30, 2008 The following tables and related discussion set forth key operating and financial data for our homebuilding operations by reporting segment as of and for the fiscal years ended September 30, 2009 and 2008.
## Table 0 ##
Sales Order Cancellations
## Table 1 ##
(1) Net sales orders represent the number and dollar value of new sales contracts executed with customers, net of sales contract cancellations.
(2) Cancellation rate represents the number of cancelled sales orders divided by gross sales orders.
Net Sales Orders The value of net sales orders decreased 25%, to $3,498.4 million (17,034 homes) in 2009 from $4,677.2 million (21,251 homes) in 2008.
The number of net sales orders decreased 20% in fiscal 2009 compared to fiscal 2008.
We believe the most significant factors contributing to the slowing of demand for new homes in most of our markets include a continued high level of homes for sale, which includes foreclosed homes for sale; a decrease in the availability of mortgage financing for many potential homebuyers; the continued uncertainty in the financial markets and a decline in homebuyer consumer confidence.
Many prospective homebuyers continue to approach the purchase decision tentatively due to concern over their ability to sell an existing home or obtain mortgage financing, the general uncertainty surrounding the housing market, increasing unemployment and weakness in the overall economy.
However, these factors have led to lower home prices and improved affordability, which combined with various homebuyer tax incentives and low mortgage interest rates, have served to partially offset some of the market softness.
We continue to manage our sales incentives and pricing on a community by community basis in an attempt to optimize the
Revenues from home sales in fiscal 2009 and 2008 were increased by $3.1 million and $26.8 million, respectively, from changes in deferred profit.
The home sales profit related to our mortgage loans held for sale is deferred in instances where a buyer finances a home through our wholly-owned mortgage company and has not made an adequate initial or continuing investment.
The decline in the change in revenues from the prior year is due to the reduced availability of the mortgage types whose use generally resulted in the profit deferral.
As of September 30, 2009, the balance of deferred profit related to such mortgage loans held for sale was $2.7 million, compared to $5.8 million at September 30, 2008.
Homebuilding Operating Margin Analysis
## Table 2 ##
Home Sales Gross Profit Gross profit from home sales decreased by 32%, to $467.5 million in 2009, from $691.2 million in 2008, and, as a percentage of home sales revenues, increased 190 basis points, to 13.1%.
Approximately 230 basis points of the increase in the home sales gross profit percentage was a result of the average cost of our homes declining by more than our average selling prices, caused by a greater portion of our closings occurring in our South Central region, which has experienced more stable housing conditions than our other regions, and the effects of prior inventory impairments on homes closed during the current year.
Approximately 50 basis points of the increase was due to a decrease in the amortization of capitalized interest and property taxes as a percentage of homes sales revenues resulting from reductions in our interest and property taxes incurred and capitalized over the past year.
These increases were partially offset by a decrease of 30 basis points due to the recognition of a lesser amount of previously deferred gross profit during the current year compared to the prior year and by 60 basis points due to an increase in actual and estimated warranty and construction defect costs.
The increase in estimated warranty costs was due in part to a current year adjustment to our estimated warranty liability related to estimated costs to remedy homes which we have found to or suspect may contain allegedly defective drywall manufactured in China (Chinese Drywall) in two of our markets.
Also, we have experienced increases in our construction defect claims self-insured retentions, resulting in additional reserves for estimated claims.
Future changes in gross profit percentages are substantially dependent on our future need for the use of sales incentives and price adjustments to generate an adequate volume of home closings and cannot be predicted in the current housing market.
Land Sales Revenue and Gross Profit Land sales revenues decreased 89% to $40.3 million in 2009, from $354.3 million in 2008.
Of the $40.3 million of revenues in fiscal 2009, $26.9 million related to land sale transactions in the fourth quarter of
The Company paid income taxes of $60,515, $42,116, and $62,965 in 2011, 2010, and 2009, respectively.
At June 30, 2010, the Company had $7,187 of unrecognized tax benefits.
At June 30, 2011, the Company had $8,897 of unrecognized tax benefits, of which, $6,655, if recognized, would affect our effective tax rate.
We had accrued interest and penalties of $1,030 and $890 related to uncertain tax positions at June 30, 2011 and 2010, respectively.
A reconciliation of the unrecognized tax benefits for the years ended June 30, 2011 and 2010 follows:

<table><tr><td></td><td colspan="9">Net Sales Orders -1 Fiscal Year Ended September 30,</td></tr><tr><td></td><td colspan="3">Net Homes Sold</td><td colspan="3">Value (In millions)</td><td colspan="3">Average Selling Price</td></tr><tr><td></td><td></td><td></td><td>%</td><td></td><td></td><td>%</td><td></td><td></td><td>%</td></tr><tr><td></td><td> 2009</td><td> 2008</td><td>Change</td><td> 2009</td><td> 2008</td><td>Change</td><td> 2009</td><td> 2008</td><td>Change</td></tr><tr><td>East</td><td>1,519</td><td>1,602</td><td>-5%</td><td>$353.7</td><td>$396.3</td><td>-11%</td><td>$232,900</td><td>$247,400</td><td>-6%</td></tr><tr><td>Midwest</td><td>1,198</td><td>1,633</td><td>-27%</td><td>323.5</td><td>425.3</td><td>-24%</td><td>270,000</td><td>260,400</td><td>4%</td></tr><tr><td>Southeast</td><td>3,107</td><td>3,235</td><td>-4%</td><td>560.8</td><td>637.6</td><td>-12%</td><td>180,500</td><td>197,100</td><td>-8%</td></tr><tr><td>South Central</td><td>6,074</td><td>7,266</td><td>-16%</td><td>1,045.9</td><td>1,293.3</td><td>-19%</td><td>172,200</td><td>178,000</td><td>-3%</td></tr><tr><td>Southwest</td><td>1,849</td><td>2,982</td><td>-38%</td><td>314.9</td><td>551.6</td><td>-43%</td><td>170,300</td><td>185,000</td><td>-8%</td></tr><tr><td>West</td><td>3,287</td><td>4,533</td><td>-27%</td><td>899.6</td><td>1,373.1</td><td>-34%</td><td>273,700</td><td>302,900</td><td>-10%</td></tr><tr><td></td><td>17,034</td><td>21,251</td><td>-20%</td><td>$3,498.4</td><td>$4,677.2</td><td>-25%</td><td>$205,400</td><td>$220,100</td><td>-7%</td></tr></table>
<table><tr><td></td><td colspan="6"> Sales Order Cancellations   Fiscal Year Ended September 30,</td></tr><tr><td></td><td colspan="2"> Cancelled Sales Orders</td><td colspan="2"> Value (In millions)</td><td colspan="2"> Cancellation Rate -2</td></tr><tr><td></td><td> 2009</td><td> 2008</td><td> 2009</td><td> 2008</td><td>2009</td><td> 2008</td></tr><tr><td>East</td><td>478</td><td>1,138</td><td>$113.0</td><td>$269.6</td><td>24%</td><td>42%</td></tr><tr><td>Midwest</td><td>240</td><td>464</td><td>64.8</td><td>140.3</td><td>17%</td><td>22%</td></tr><tr><td>Southeast</td><td>1,321</td><td>2,069</td><td>244.5</td><td>469.0</td><td>30%</td><td>39%</td></tr><tr><td>South Central</td><td>2,980</td><td>4,381</td><td>500.8</td><td>751.9</td><td>33%</td><td>38%</td></tr><tr><td>Southwest</td><td>962</td><td>3,742</td><td>175.4</td><td>766.6</td><td>34%</td><td>56%</td></tr><tr><td>West</td><td>1,207</td><td>2,378</td><td>357.3</td><td>851.3</td><td>27%</td><td>34%</td></tr><tr><td></td><td>7,188</td><td>14,172</td><td>$1,455.8</td><td>$3,248.7</td><td>30%</td><td>40%</td></tr></table>
<table><tr><td></td><td colspan="3">Percentages of Related Revenues Fiscal Year Ended September 30,</td></tr><tr><td></td><td>2009</td><td>2008</td><td></td></tr><tr><td>Gross profit — Home sales</td><td>13.1%</td><td></td><td>11.2%</td></tr><tr><td>Gross profit — Land/lot sales</td><td>13.4%</td><td></td><td>8.5%</td></tr><tr><td>Effect of inventory impairments and land option cost write-offs ontotal homebuilding gross profit</td><td>-11.3%</td><td></td><td>-38.1%</td></tr><tr><td>Gross profit (loss) — Total homebuilding</td><td>1.8%</td><td></td><td>-27.0%</td></tr><tr><td>Selling, general and administrative expense</td><td>14.5%</td><td></td><td>12.1%</td></tr><tr><td>Goodwill impairment</td><td>—%</td><td></td><td>1.2%</td></tr><tr><td>Interest expense</td><td>2.7%</td><td></td><td>0.6%</td></tr><tr><td>(Gain) on early retirement of debt</td><td>-0.1%</td><td></td><td>—%</td></tr><tr><td>Other (income)</td><td>-0.4%</td><td></td><td>-0.1%</td></tr><tr><td>Loss before income taxes</td><td>-14.9%</td><td></td><td>-40.9%</td></tr></table>

Question: What is the proportion of East for Net Homes Sold to the total in 2009 ?
Answer: 0.08917