Table of Contents 28 Stock Performance Graph
## Table 0 ##
* $100 invested on 11/17/11 in our stock or 10/31/11 in the relevant index, including reinvestment of dividends.
Fiscal year ending December 31, 2015.
(1) Delphi Automotive PLC (2) S&P 500 – Standard & Poor’s 500 Total Return Index (3) Automotive Supplier Peer Group – Russell 3000 Auto Parts Index, including American Axle & Manufacturing, BorgWarner Inc. , Cooper Tire & Rubber Company, Dana Holding Corp. , Delphi Automotive PLC, Dorman Products Inc. , Federal-Mogul Corp. , Ford Motor Co. , Fuel Systems Solutions Inc. , General Motors Co. , Gentex Corp. , Gentherm Inc. , Genuine Parts Co. , Johnson Controls Inc. , Lear Corp. , LKQ Corp. , Meritor Inc. , Standard Motor Products Inc. , Stoneridge Inc. , Superior Industries International, Tenneco Inc. , Tesla Motors Inc. , The Goodyear Tire & Rubber Co. , Tower International Inc. , Visteon Corp. , and WABCO Holdings Inc.
Dividends The Company has declared and paid cash dividends of $0.25 per ordinary share in each quarter of 2014 and 2015.
In addition, in January 2016, the Board of Directors increased the annual dividend rate to $1.16 per ordinary share, and declared a regular quarterly cash dividend of $0.29 per ordinary share, payable on February 29, 2016 to shareholders of record at the close of business on February 17, 2016.
ITEM 6.
SELECTED FINANCIAL DATA The following selected consolidated financial data are derived from our Consolidated Financial Statements.
The data should be read in conjunction with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” Item 1A, “Risk Factors,” Item 8, “Financial Statements and Supplementary Data,” and all other financial data contained in this annual report on Form 10-K.
These historical results are not necessarily indicative of the results to be expected in the future.
## Table 1 ##
September 30,
## Table 2 ##
(1) The income tax benefit in fiscal 2012 reflects a $753.2 million reduction of our deferred tax asset valuation allowance during the year.
The income tax benefit in fiscal 2011 was due to receiving a favorable result from the Internal Revenue Service on a ruling request concerning capitalization of inventory costs.
(2) At September 30, 2013, we recorded an out-of-period adjustment which increased both our deferred income taxes and the valuation allowance on our deferred income taxes by $23.9 million.
The out-of-period adjustment had no impact on our statement of operations during fiscal 2013.
Had deferred income taxes related to the state net operating loss carryforwards of each of our legal entities been reflected at state specific tax rates as of September 30, 2012, our deferred income taxes would have increased by $31.6 million and the corresponding valuation allowance on our deferred income taxes would have increased by $37.6 million.
This would have resulted in a decrease in our income tax benefit of $6.0 million in fiscal 2012, which would have reversed and decreased our income tax expense by $6.0 million in fiscal 2013.
The unadjusted amounts from fiscal 2012 were not material to our financial statements for fiscal 2012, and the out-of-period adjustment recorded in fiscal 2013 was not material to our financial statements for fiscal 2013.
(3) Cash balances of our captive insurance subsidiary, which are expected to be used to pay future anticipated legal claims, have been correctly presented within cash and cash equivalents rather than other assets as classified in prior years.
These balances were $40.5 million, $43.3 million, $40.9 million, $39.1 million and $37.9 million at September 30, 2015, 2014, 2013, 2012 and 2011, respectively.
(4) As described in Note A to the consolidated financial statements, we have adopted Accounting Standards Update 2015-03, which changes the presentation of debt issuance costs in the balance sheet from an asset to a direct reduction of the carrying amount of the related debt.
In accordance with its provisions, we have applied this guidance at September 30, 2015 and retrospectively to all periods presented.
As a result, total assets and notes payable were reduced by $17.3 million, $17.1 million, $18.0 million, $12.0 million and $7.8 million at September 30, 2015, 2014, 2013, 2012 and 2011, respectively.
(5) Notes payable includes both homebuilding notes payable and any amounts outstanding on our mortgage repurchase facility
Homebuilding Operating Margin Analysis
## Table 3 ##
Home Sales Gross Profit Gross profit from home sales increased 33%, to $1.7 billion in 2014, from $1.3 billion in 2013, and increased 50 basis points, to 21.3% as a percentage of home sales revenues.
Approximately 40 basis points of the increase in the home sales gross profit percentage resulted from the average selling price of our homes closed increasing by more than the average home cost, 20 basis points of the increase resulted from a decrease in the amortization of capitalized interest and property taxes as a percentage of homes sales revenues and 10 basis points of the increase resulted from lower costs for warranty and construction defect claims as a percentage of home sales revenue.
Partially offsetting these increases was a 20 basis point decrease from purchase accounting adjustments related to the acquisitions of Crown Communities and Regent Homes.
Our gross profit margins during fiscal 2013 and throughout the first half of fiscal 2014 benefited significantly from favorable market conditions that allowed us to increase sales prices across most of our markets, while we limited increases in construction costs.
Our gross profit margins also benefited from reduced interest amortized to cost of sales as our average borrowing costs declined.
The increases in our average sales prices moderated in the second half of fiscal 2014, and we managed the sales pace in each of our communities by adjusting the pricing, incentives and product mix to optimize the returns on our inventory investments.
These factors caused our gross profit margins in the third and fourth quarters of fiscal 2014 to decline as compared to the prior year quarters and to the first two quarters of fiscal 2014.
Land Sales and Other Revenues Land sales and other revenues were $53.8 million in fiscal 2014, compared to $61.1 million in 2013.
Revenues in fiscal 2013 included revenue of $20.0 million from a long-term construction project for which we served as the general contractor.
Inventory and Land Option Charges As of September 30, 2014, we performed detailed impairment evaluations of communities and land inventories with a combined carrying value of $359.8 million, and we recorded impairment charges of $18.1 million during the fourth quarter to reduce the carrying value of impaired communities to their estimated fair value.
Total impairment charges during fiscal 2014 and 2013 were $75.2 million and $21.3 million, respectively.
Of the total impairment charges in fiscal 2014, $49.3 million occurred in our Midwest region, primarily related to communities in Chicago that were purchased predominantly in 2004 through 2007 and had been previously impaired.
During the third quarter of fiscal 2014, we reduced home prices and identified land parcels we intended to sell in these Chicago communities in an effort to increase sales pace, reduce inventories and improve cash flows and returns.
In contrast to most of our markets during fiscal 2014, the Chicago housing market remained weak with sales absorptions and returns in these communities performing below our expectations given the size of our investments.
D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 72 Capitalized Interest The Company capitalizes interest costs incurred to inventory during active development and construction (active inventory).
Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer.
During periods in which the Company’s active inventory is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred.
During fiscal 2015 and 2014, the Company's active inventory has exceeded its debt level, and all interest incurred has been capitalized to inventory.
See Note E.  Land Option Deposits and Pre-Acquisition Costs The Company enters into land and lot option purchase contracts to acquire land or lots for the construction of homes.
Under these contracts, the Company will fund a stated deposit in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms.
Under the terms of many of the option purchase contracts, the option deposits are not refundable in the event the Company elects to terminate the contract.
Option deposits and capitalized pre-acquisition costs are expensed to cost of sales when the Company believes it is probable that it will not acquire the property under option and will not be able to recover these costs through other means.
See Note C.  Variable Interests Option purchase contracts can result in the creation of a variable interest in the entity holding the land parcel under option.
There were no variable interest entities included in the consolidated balance sheets at September 30, 2015 and 2014 because the Company determined it did not control the activities that most significantly impact the variable interest entity’s economic performance, and it did not have an obligation to absorb losses of or the right to receive benefits from the entity.
The maximum exposure to losses related to the Company’s variable interest entities is limited to the amounts of the Company’s related option deposits.
At September 30, 2015 and 2014, the option deposits related to these contracts totaled $74.4 million and $55.7 million, respectively, and are included in homebuilding other assets in the consolidated balance sheets.
Property and Equipment Property and equipment are stated at cost less accumulated depreciation.
Repairs and maintenance costs are expensed as incurred.
Depreciation generally is recorded using the straight-line method over the estimated useful life of the asset.
The depreciable life of model home furniture is 2 years, depreciable lives of office furniture and equipment typically range from 2 to 5 years, and depreciable lives of buildings and improvements typically range from 5 to 20 years.
The Company's property and equipment balances and the related accumulated depreciation at September 30, 2015 and 2014 were as follows:
## Table 4 ##
(1) Includes $2.9 million at both September 30, 2015 and 2014, of property and equipment related to the Company's financial services subsidiaries which is included in financial services other assets in the consolidated balance sheets.
D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) The Company measures and recognizes compensation expense for stock options at an amount equal to the fair value of the options.
The weighted average fair value of options granted in fiscal 2014 and 2013 was $11.21 per share and $10.92 per share, respectively.
The fair values of the options were determined on the date of grant using the BlackScholes option pricing model based on the following weighted average assumptions:

<table><tr><td>Company Index</td><td>November 17, 2011</td><td>December 31, 2011</td><td>December 31, 2012</td><td>December 31, 2013</td><td>December 31, 2014</td><td>December 31, 2015</td></tr><tr><td>Delphi Automotive PLC -1</td><td>$100.00</td><td>$100.98</td><td>$179.33</td><td>$285.81</td><td>$350.82</td><td>$418.67</td></tr><tr><td>S&P 500 -2</td><td>100.00</td><td>100.80</td><td>116.93</td><td>154.80</td><td>175.99</td><td>178.43</td></tr><tr><td>Automotive Supplier Peer Group -3</td><td>100.00</td><td>89.62</td><td>109.96</td><td>166.26</td><td>176.25</td><td>171.91</td></tr></table>
<table><tr><td></td><td colspan="5">Year Ended September 30,</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td></td><td></td><td colspan="3">(In millions, except per share data)</td><td></td></tr><tr><td>Operating Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Homebuilding</td><td>$10,559.0</td><td>$7,858.5</td><td>$6,085.9</td><td>$4,236.2</td><td>$3,549.6</td></tr><tr><td>Financial Services</td><td>265.0</td><td>166.4</td><td>173.4</td><td>117.8</td><td>87.2</td></tr><tr><td>Inventory and land option charges</td><td>60.3</td><td>85.2</td><td>31.1</td><td>6.2</td><td>45.4</td></tr><tr><td>Gross profit — Homebuilding</td><td>2,023.3</td><td>1,589.9</td><td>1,232.4</td><td>743.8</td><td>526.3</td></tr><tr><td>Income (loss) before income taxes:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Homebuilding</td><td>1,018.3</td><td>768.8</td><td>592.3</td><td>203.7</td><td>-7.0</td></tr><tr><td>Financial Services</td><td>105.1</td><td>45.4</td><td>65.5</td><td>39.2</td><td>19.1</td></tr><tr><td>Income tax expense (benefit) (1) (2)</td><td>372.7</td><td>280.7</td><td>195.1</td><td>-713.4</td><td>-59.7</td></tr><tr><td>Net income</td><td>750.7</td><td>533.5</td><td>462.7</td><td>956.3</td><td>71.8</td></tr><tr><td>Net income per share:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>2.05</td><td>1.57</td><td>1.44</td><td>3.01</td><td>0.23</td></tr><tr><td>Diluted</td><td>2.03</td><td>1.50</td><td>1.33</td><td>2.77</td><td>0.23</td></tr><tr><td>Cash dividends declared per common share</td><td>0.25</td><td>0.1375</td><td>0.1875</td><td>0.15</td><td>0.15</td></tr></table>
<table><tr><td></td><td colspan="5">September 30,</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td></td><td colspan="5">(In millions)</td></tr><tr><td>Balance Sheet Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents and marketable securities -3</td><td>$1,383.8</td><td>$661.8</td><td>$977.4</td><td>$1,384.8</td><td>$1,068.1</td></tr><tr><td>Inventories</td><td>7,807.0</td><td>7,700.5</td><td>6,197.4</td><td>4,165.2</td><td>3,449.7</td></tr><tr><td>Total assets -4</td><td>11,151.0</td><td>10,185.4</td><td>8,838.4</td><td>7,236.2</td><td>5,350.6</td></tr><tr><td>Notes payable -4 (5)</td><td>3,811.5</td><td>3,665.7</td><td>3,491.0</td><td>2,481.1</td><td>1,696.8</td></tr><tr><td>Total equity</td><td>5,895.4</td><td>5,119.7</td><td>4,061.4</td><td>3,594.7</td><td>2,623.5</td></tr></table>
<table><tr><td></td><td colspan="2">Percentages ofRelated Revenues Fiscal Year Ended September 30,</td></tr><tr><td></td><td>2014</td><td>2013</td></tr><tr><td>Gross profit — Home sales</td><td>21.3%</td><td>20.8%</td></tr><tr><td>Gross profit — Land/lot sales and other</td><td>17.7%</td><td>16.7%</td></tr><tr><td>Inventory and land option charges</td><td>-1.1%</td><td>-0.5%</td></tr><tr><td>Gross profit — Total homebuilding</td><td>20.2%</td><td>20.3%</td></tr><tr><td>Selling, general and administrative expense</td><td>10.6%</td><td>10.7%</td></tr><tr><td>Interest expense</td><td>—%</td><td>0.1%</td></tr><tr><td>Other (income)</td><td>-0.2%</td><td>-0.2%</td></tr><tr><td>Homebuilding pre-tax income</td><td>9.8%</td><td>9.7%</td></tr></table>
<table><tr><td></td><td colspan="2">September 30,</td></tr><tr><td></td><td>2015</td><td>2014</td></tr><tr><td></td><td colspan="2">(In millions)</td></tr><tr><td>Buildings and improvements</td><td>$115.7</td><td>$112.8</td></tr><tr><td>Model home furniture</td><td>97.2</td><td>86.7</td></tr><tr><td>Office furniture and equipment</td><td>74.2</td><td>68.4</td></tr><tr><td>Land</td><td>26.7</td><td>66.9</td></tr><tr><td>Total property and equipment</td><td>313.8</td><td>334.8</td></tr><tr><td>Accumulated depreciation</td><td>-166.9</td><td>-141.1</td></tr><tr><td>Property and equipment, net -1</td><td>$146.9</td><td>$193.7</td></tr></table>

Question: In which year is Homebuilding smaller than Financial Services of Income (loss) before income taxes?
Answer: 2011