PART II ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange (NYSE) under the symbol “DHI.
” The following table sets forth, for the periods indicated, the range of high and low sales prices for our common stock, as reported by the NYSE, and the quarterly cash dividends declared per common share.
## Table 0 ##
As of November 16, 2007, the closing price of our common stock on the NYSE was $12.16, and there were approximately 642 holders of record.
The declaration of future cash dividends is at the discretion of our Board of Directors and will depend upon, among other things, future earnings, cash flows, capital requirements, our financial condition and general business conditions.
We are required to comply with certain covenants contained in the bank agreements and our senior subordinated note indenture.
In July 2007, through amendment to the revolving credit facility agreement, a restriction that limited our ability to pay cash dividends on our common stock in an amount, on a cumulative basis, not to exceed 50% of consolidated net income was removed.
Under the amended agreement, payment of dividends is permitted provided there is no payment default under the facility, we are in compliance with certain financial covenants under the agreement, and such payments do not cause us not to be in compliance with those financial covenants.
However, payment of cash dividends is still limited to the extent our total restricted payments are limited.
At September 30, 2007, under the most restrictive debt covenants in effect, approximately $2.3 billion was available for all restricted payments.
The information required by this item with respect to equity compensation plans is set forth under Item 12 of this annual report on Form 10-K and is incorporated herein by reference.
During fiscal years 2007, 2006 and 2005, we did not sell any securities that were not registered under the Securities Act of 1933, as amended.
In November 2005, our Board of Directors authorized the repurchase of up to $500 million of our common stock, replacing the previous common stock repurchase authorization.
During fiscal 2006, we repurchased 1,000,000 shares of our common stock at a total cost of $36.8 million.
In November 2006, our Board of Directors extended the remaining $463.2 million common stock repurchase authorization to November 30, 2007.
We made no repurchases of common stock under the share repurchase program during fiscal 2007, and therefore, all of the $463.2 million authorization was remaining at September 30, 2007.
In November 2007, our Board of Directors extended the $463.2 million common stock repurchase authorization to November 30, 2008.
During the third quarter of fiscal 2007, we repurchased 2,433 shares of our common stock, representing shares delivered by employees to satisfy the exercise price of stock options as authorized by our 1991 Stock Incentive Plan.
These shares were not purchased under our share repurchase program and, therefore, had no effect on the remaining stock repurchase authorization.
There were no such transactions during the fourth quarter of fiscal 2007.
Results of Operations — Homebuilding Fiscal Year Ended September 30, 2012 Compared to Fiscal Year Ended September 30, 2011 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, 2012 and 2011.
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Sales Order Cancellations Fiscal Year Ended September 30,
## Table 2 ##
(1) Net sales orders represent the number and dollar value of new sales contracts executed with customers (gross sales orders), net of cancelled sales orders.
(2) Cancellation rate represents the number of cancelled sales orders divided by gross sales orders.
Net Sales Orders The value of net sales orders increased 29%, to $4,803.3 million (21,048 homes) in 2012 from $3,727.6 million (17,421 homes) in 2011.
The number of net sales orders increased 21% in fiscal 2012 compared to fiscal 2011, reflecting an increase in sales demand for our homes.
While the improvement in our sales reflected improvement in new home demand and market conditions, overall demand for new homes remained at a historically low level.
In comparing fiscal 2012 to fiscal 2011, the volume of net sales orders increased in all six of our market regions.
The largest percentage increases occurred in our Southeast and Southwest regions as a result of improved market conditions in the majority of our Florida markets and in our Phoenix market.
Sales orders in our Southeast region were also positively impacted by our acquisition of the homebuilding operations of Breland Homes during the fourth quarter of fiscal 2012, which added 118 homes and $24.3 million to our net sales in fiscal 2012 subsequent to the acquisition date.
Changes in the value of net sales orders were generally due to the change in the number of homes sold in each respective region and, to a lesser extent, to increases in the average selling price of those homes, reflective of the improved market conditions.
D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Financial Services: The Company’s mortgage subsidiary, DHI Mortgage, has a mortgage repurchase facility that is accounted for as a secured financing.
The mortgage repurchase facility provides financing and liquidity to DHI Mortgage by facilitating purchase transactions in which DHI Mortgage transfers eligible loans to the counterparties against the transfer of funds by the counterparties, thereby becoming purchased loans.
DHI Mortgage then has the right and obligation to repurchase the purchased loans upon their sale to third-party purchasers in the secondary market or within specified time frames from 45 to 60 days in accordance with the terms of the mortgage repurchase facility.
The total capacity of the facility is $600 million; however, the capacity increases, without requiring additional commitments, to $725 million for approximately 30 days at each quarter end and to $800 million for approximately 45 days at fiscal year end.
The capacity can also be increased to $1.0 billion subject to the availability of additional commitments.
The maturity date of the facility is February 22, 2019.
As of September 30, 2018, $758.6 million of mortgage loans held for sale with a collateral value of $735.6 million were pledged under the mortgage repurchase facility.
As a result of advance paydowns totaling $97.9 million, DHI Mortgage had an obligation of $637.7 million outstanding under the mortgage repurchase facility at September 30, 2018 at a 4.1% annual interest rate.
The mortgage repurchase facility is not guaranteed by D. R.  Horton, Inc.  or any of the subsidiaries that guarantee the Company’s homebuilding debt.
The facility contains financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable ratio of debt to tangible net worth and its minimum required liquidity.
These covenants are measured and reported to the lenders monthly.
At September 30, 2018, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility.
In the past, DHI Mortgage has been able to renew or extend its mortgage credit facility at a sufficient capacity and on satisfactory terms prior to its maturity and obtain temporary additional commitments through amendments to the credit agreement during periods of higher than normal volumes of mortgages held for sale.
The liquidity of the Company’s financial services business depends upon its continued ability to renew and extend the mortgage repurchase facility or to obtain other additional financing in sufficient capacities.
NOTE E – CAPITALIZED INTEREST The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the years ended September 30, 2018, 2017 and 2016.
## Table 3 ##
(1) Interest incurred included interest on the Company's mortgage repurchase facility of $12.1 million, $8.5 million and $8.4 million in fiscal 2018, 2017 and 2016, respectively.
Also included in the fiscal 2018 amount is interest incurred by Forestar of $3.4 million, net of purchase accounting adjustments, from the acquisition date through September 30, 2018.
Sales of Unregistered Securities Not applicable.
Repurchases of Equity Securities The following table provides information regarding our purchases of our equity securities during the period from October 1, 2017 to December 31, 2017.

<table><tr><td></td><td colspan="3"> Year Ended September 30, 2007</td><td colspan="3"> Year Ended September 30, 2006</td></tr><tr><td></td><td> High</td><td> Low</td><td> Declared   Dividends</td><td> High</td><td> Low</td><td> Declared   Dividends</td></tr><tr><td>1st Quarter</td><td>$27.81</td><td>$21.51</td><td>$0.15</td><td>$38.56</td><td>$28.78</td><td>$0.09</td></tr><tr><td>2nd Quarter</td><td>31.13</td><td>21.79</td><td>0.15</td><td>41.66</td><td>30.80</td><td>0.10</td></tr><tr><td>3rd Quarter</td><td>24.49</td><td>19.76</td><td>0.15</td><td>35.27</td><td>22.55</td><td>0.10</td></tr><tr><td>4th Quarter</td><td>20.75</td><td>12.46</td><td>0.15</td><td>25.43</td><td>19.52</td><td>0.15</td></tr></table>
<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>2012</td><td>2011</td><td>%Change</td><td>2012</td><td>2011</td><td>%Change</td><td>2012</td><td>2011</td><td>%Change</td></tr><tr><td>East</td><td>2,244</td><td>2,066</td><td>9%</td><td>$565.3</td><td>$482.6</td><td>17%</td><td>$251,900</td><td>$233,600</td><td>8%</td></tr><tr><td>Midwest</td><td>1,301</td><td>1,005</td><td>29%</td><td>386.2</td><td>272.0</td><td>42%</td><td>296,800</td><td>270,600</td><td>10%</td></tr><tr><td>Southeast</td><td>5,378</td><td>4,019</td><td>34%</td><td>1,101.9</td><td>776.1</td><td>42%</td><td>204,900</td><td>193,100</td><td>6%</td></tr><tr><td>South Central</td><td>6,822</td><td>6,169</td><td>11%</td><td>1,282.3</td><td>1,092.2</td><td>17%</td><td>188,000</td><td>177,000</td><td>6%</td></tr><tr><td>Southwest</td><td>1,715</td><td>1,284</td><td>34%</td><td>327.7</td><td>239.6</td><td>37%</td><td>191,100</td><td>186,600</td><td>2%</td></tr><tr><td>West</td><td>3,588</td><td>2,878</td><td>25%</td><td>1,139.9</td><td>865.1</td><td>32%</td><td>317,700</td><td>300,600</td><td>6%</td></tr><tr><td></td><td>21,048</td><td>17,421</td><td>21%</td><td>$4,803.3</td><td>$3,727.6</td><td>29%</td><td>$228,200</td><td>$214,000</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>2012</td><td>2011</td><td>2012</td><td>2011</td><td>2012</td><td>2011</td></tr><tr><td>East</td><td>655</td><td>689</td><td>$147.7</td><td>$146.7</td><td>23%</td><td>25%</td></tr><tr><td>Midwest</td><td>192</td><td>177</td><td>53.9</td><td>45.9</td><td>13%</td><td>15%</td></tr><tr><td>Southeast</td><td>1,851</td><td>1,531</td><td>351.6</td><td>275.1</td><td>26%</td><td>28%</td></tr><tr><td>South Central</td><td>2,426</td><td>2,763</td><td>436.4</td><td>470.3</td><td>26%</td><td>31%</td></tr><tr><td>Southwest</td><td>705</td><td>639</td><td>120.0</td><td>109.9</td><td>29%</td><td>33%</td></tr><tr><td>West</td><td>828</td><td>769</td><td>256.3</td><td>233.5</td><td>19%</td><td>21%</td></tr><tr><td></td><td>6,657</td><td>6,568</td><td>$1,365.9</td><td>$1,281.4</td><td>24%</td><td>27%</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended September 30,</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td></td><td colspan="3">(In millions)</td></tr><tr><td>Capitalized interest, beginning of year</td><td>$167.9</td><td>$191.2</td><td>$208.0</td></tr><tr><td>Interest incurred -1</td><td>125.4</td><td>129.3</td><td>152.3</td></tr><tr><td>Interest charged to cost of sales</td><td>-130.6</td><td>-152.6</td><td>-169.1</td></tr><tr><td>Capitalized interest, end of year</td><td>$162.7</td><td>$167.9</td><td>$191.2</td></tr></table>

Question: When does Southeast reach the largest value in value?
Answer: 2012