GUARANTEES AND WARRANTIES In April 2015, we entered into joint venture arrangements in Saudi Arabia.
An equity bridge loan has been provided to the joint venture until 2020 to fund equity commitments, and we guaranteed the repayment of our 25% share of this loan.
Our venture partner guaranteed repayment of their share.
Our maximum exposure under the guarantee is approximately $100.
As of 30 September 2015, we recorded a noncurrent liability of $67.5 for our obligation to make future equity contributions based on the equity bridge loan.
Air Products has also entered into a sale of equipment contract with the joint venture to engineer, procure, and construct the industrial gas facilities that will supply gases to Saudi Aramco.
We will provide bank guarantees to the joint venture of up to $326 to support our performance under the contract.
We are party to an equity support agreement and operations guarantee related to an air separation facility constructed in Trinidad for a venture in which we own 50%.
At 30 September 2015, maximum potential payments under joint and several guarantees were $30.0.
Exposures under the guarantee decline over time and will be completely extinguished by 2024.
During the first quarter of 2014, we sold the remaining portion of our Homecare business and entered into an operations guarantee related to obligations under certain homecare contracts assigned in connection with the transaction.
Our maximum potential payment under the guarantee is ￡20 million (approximately $30 at 30 September 2015), and our exposure will be extinguished by 2020.
To date, no equity contributions or payments have been made since the inception of these guarantees.
The fair value of the above guarantees is not material.
We, in the normal course of business operations, have issued product warranties related to equipment sales.
Also, contracts often contain standard terms and conditions which typically include a warranty and indemnification to the buyer that the goods and services purchased do not infringe on third-party intellectual property rights.
The provision for estimated future costs relating to warranties is not material to the consolidated financial statements.
We do not expect that any sum we may have to pay in connection with guarantees and warranties will have a material adverse effect on our consolidated financial condition, liquidity, or results of operations.
UNCONDITIONAL PURCHASE OBLIGATIONS We are obligated to make future payments under unconditional purchase obligations as summarized below:
## Table 0 ##
Approximately $390 of our long-term unconditional purchase obligations relate to feedstock supply for numerous HyCO (hydrogen, carbon monoxide, and syngas) facilities.
The price of feedstock supply is principally related to the price of natural gas.
However, long-term take-or-pay sales contracts to HyCO customers are generally matched to the term of the feedstock supply obligations and provide recovery of price increases in the feedstock supply.
Due to the matching of most long-term feedstock supply obligations to customer sales contracts, we do not believe these purchase obligations would have a material effect on our financial condition or results of operations.
The unconditional purchase obligations also include other product supply and purchase commitments and electric power and natural gas supply purchase obligations, which are primarily pass-through contracts with our customers.
Purchase commitments to spend approximately $540 for additional plant and equipment are included in the unconditional purchase obligations in 2016.
D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) In accordance with SFAS No.144, valuation adjustments are recorded on finished homes when events or circumstances indicate that the carrying value is less than the fair value less costs to sell the home.
During fiscal 2006, several communities under development that demonstrated potential impairment indicators were evaluated for potential impairment.
The Company’s analyses of these projects generally assumed flat to reduced revenues as compared with current sales orders for the particular project or revenues realized from comparable projects.
It was determined that projects with a carrying value of $459.3 million, the majority of which were in California, were impaired.
Consequently, an impairment charge of $146.2 million was recorded to reduce the carrying value of the impaired projects to their estimated fair value.
The remaining projects with impairment indicators are primarily in California.
It is possible that the estimate of undiscounted cash flows from these projects may change and could result in a future need to record an impairment charge to write these assets down to fair value.
Additionally, if conditions in the homebuilding industry worsen in the future, the Company may be required to evaluate additional projects for potential impairment which may result in additional impairment charges and such charges could be significant.
From time to time, the Company writes off earnest money deposits and pre-acquisition costs related to land and lot option contracts which it no longer plans to pursue.
During fiscal 2006, 2005 and 2004, the Company wrote off $124.7 million, $17.1 million and $20.1 million, respectively, of earnest money deposits and pre-acquisition costs related to land option contracts which it decided not to pursue.
Homebuilding Interest The Company capitalizes homebuilding interest costs to inventory during development and construction.
Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer.
The following table summarizes the Company’s homebuilding interest costs incurred, capitalized, charged to cost of sales and expensed directly during the years ended September 30, 2006, 2005 and 2004:
## Table 1 ##
Consolidated Land Inventory Not Owned The Company accounts for its land and lot option purchase contracts in accordance with the provisions of FIN 46.
FIN 46 provides guidance for the financial accounting and reporting of interests in certain variable interest entities, which FIN 46 defines as certain business entities that either have equity investors with no voting rights or have equity investors that do not provide sufficient financial resources for the entities to support their activities.
FIN 46 requires consolidation of such entities by any company that is subject to a majority of the risk of loss from the entities’ activities or is entitled to receive a majority of the entities’ residual returns or both, defined as the primary beneficiary of the variable interest entity.
In the ordinary course of its homebuilding business, the Company enters into land and lot option purchase contracts to procure land or lots for the construction of homes.
Under such option purchase 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 the option purchase contracts, many of the option deposits are not refundable at the Company’s discretion.
Under the requirements of FIN 46,
D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) relative to the value of the underlying mortgage loans.
The fair value change related to the hedging instruments generally offsets the fair value change in the mortgage loans held for sale, which for the years ended September 30, 2011, 2010 and 2009 was not significant, and is recognized in current earnings.
As of September 30, 2011, the Company had $80.9 million in mortgage loans held for sale not committed to third-party purchasers and the notional amounts of the hedging instruments related to those loans totaled $78.4 million.
Other Mortgage Loans and Loss Reserves Mortgage loans are sold with limited recourse provisions which include industry-standard representations and warranties, primarily involving the absence of misrepresentations by the borrower or other parties, insurability if applicable and, depending on the agreement, may include requiring a minimum number of payments to be made by the borrower.
The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market.
Other mortgage loans generally consist of loans repurchased due to these limited recourse obligations.
Typically, these loans are impaired and often become real estate owned through the foreclosure process.
At September 30, 2011 and 2010, the Company’s total other mortgage loans and real estate owned, before loss reserves were as follows:
## Table 2 ##
Based on historical performance and current housing and credit market conditions, the Company has recorded reserves for estimated losses on other mortgage loans, real estate owned and future loan repurchase obligations due to the limited recourse provisions, all of which are recorded as reductions of financial services revenue.
The reserve balances at September 30, 2011 and 2010 were as follows:
## Table 3 ##
Other mortgage loans and real estate owned and the related loss reserves are included in financial services other assets, while loan repurchase obligations are included in financial services accounts payable and other liabilities in the accompanying consolidated balance sheets.
A subsidiary of the Company reinsured a portion of the private mortgage insurance written on loans originated by DHI Mortgage in prior years.
At September 30, 2011 and 2010, reserves for expected future losses under the reinsurance program totaled $0.9 million and $9.7 million, respectively, and are included in financial services accounts payable and other liabilities in the accompanying consolidated balance sheets.
It is possible that future losses may exceed the amount of reserves and, if so, additional charges will be required.
Loan Commitments and Related Derivatives The Company is party to interest rate lock commitments (IRLCs) which are extended to borrowers who have applied for loan funding and meet defined credit and underwriting criteria.
At September 30, 2011, IRLCs, which are accounted for as derivative instruments recorded at fair value, totaled $217.5 million.
Results of Operations — Homebuilding Fiscal Year Ended September 30, 2014 Compared to Fiscal Year Ended September 30, 2013 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, 2014 and 2013.
## Table 4 ##
Sales Order Cancellations Fiscal Year Ended September 30,
## Table 5 ##
(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 27%, to $8,308.6 million (29,709 homes) in 2014 from $6,567.0 million (25,120 homes) in 2013, with significant increases in four of our six regions.
The increases in sales order value in those regions were primarily due to increases in volume as we expanded our operations and increased our market share in many of our markets during fiscal 2014.
To a lesser extent and to varying degrees, increases in selling prices also contributed to the value of net sales orders in each region.
The number of net sales orders increased 18% and the average price of our net sales orders increased 7% to $279,700 during 2014 compared to 2013.
The largest percentage increase in net sales orders occurred in our East region, reflecting the positive impact of our acquisitions of the homebuilding operations of Regent Homes and Crown Communities, which contributed 714 net sales orders to the East region in 2014.
Crown Communities also contributed 508 net sales orders to the Southeast region in 2014.
The decreases in net sales orders that occurred in our Midwest and Southwest regions were primarily due to decreases in sales orders in our Minnesota, Colorado, Phoenix and Albuquerque markets.
D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) The Company’s revolving credit facility imposes restrictions on its operations and activities, including requiring the maintenance of a maximum allowable ratio of debt to tangible net worth and a borrowing base restriction if the Company’s ratio of debt to tangible net worth exceeds a certain level.
These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly.
A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity.
The credit agreement governing the facility and the indenture governing the senior notes also impose restrictions on the creation of secured debt and liens.
At September 30, 2017, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility and public debt obligations.
The Company has an automatically effective universal shelf registration statement filed with the Securities and Exchange Commission (SEC) in August 2015, registering debt and equity securities that the Company may issue from time to time in amounts to be determined.
On May 15, 2017, the Company repaid $350 million principal amount of its 4.75% senior notes, which were due on that date.
The key terms of the Company’s senior notes outstanding as of September 30, 2017 are summarized below.

<table><tr><td>2016</td><td>$917</td></tr><tr><td>2017</td><td>117</td></tr><tr><td>2018</td><td>63</td></tr><tr><td>2019</td><td>55</td></tr><tr><td>2020</td><td>54</td></tr><tr><td>Thereafter</td><td>164</td></tr><tr><td>Total</td><td>$1,370</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended September 30,</td></tr><tr><td></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td></td><td colspan="3">(In millions)</td></tr><tr><td>Capitalized interest, beginning of year</td><td>$200.6</td><td>$152.7</td><td>$168.4</td></tr><tr><td>Interest incurred — homebuilding</td><td>343.3</td><td>277.3</td><td>236.7</td></tr><tr><td>Interest expensed</td><td></td><td></td><td></td></tr><tr><td>Directly — homebuilding</td><td>-17.9</td><td>-4.4</td><td>-3.4</td></tr><tr><td>Amortized to cost of sales</td><td>-237.1</td><td>-225.0</td><td>-249.0</td></tr><tr><td>Capitalized interest, end of year</td><td>$288.9</td><td>$200.6</td><td>$152.7</td></tr></table>
<table><tr><td></td><td colspan="2"> September 30,</td></tr><tr><td></td><td> 2011</td><td> 2010</td></tr><tr><td></td><td colspan="2"> (In millions)</td></tr><tr><td>Other mortgage loans</td><td>$42.8</td><td>$43.0</td></tr><tr><td>Real estate owned</td><td>0.9</td><td>4.9</td></tr><tr><td></td><td>$43.7</td><td>$47.9</td></tr></table>
<table><tr><td></td><td colspan="2"> September 30,</td></tr><tr><td></td><td> 2011</td><td> 2010</td></tr><tr><td></td><td colspan="2"> (In millions)</td></tr><tr><td>Loss reserves related to:</td><td></td><td></td></tr><tr><td>Other mortgage loans</td><td>$6.2</td><td>$9.0</td></tr><tr><td>Real estate owned</td><td>0.4</td><td>1.8</td></tr><tr><td>Loan repurchase and settlement obligations — known and expected</td><td>26.4</td><td>28.2</td></tr><tr><td></td><td>$33.0</td><td>$39.0</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>2014</td><td>2013</td><td>%Change</td><td>2014</td><td>2013</td><td>%Change</td><td>2014</td><td>2013</td><td>%Change</td></tr><tr><td>East</td><td>3,867</td><td>2,624</td><td>47%</td><td>$1,074.2</td><td>$723.6</td><td>48%</td><td>$277,800</td><td>$275,800</td><td>1%</td></tr><tr><td>Midwest</td><td>1,413</td><td>1,480</td><td>-5%</td><td>514.9</td><td>503.2</td><td>2%</td><td>364,400</td><td>340,000</td><td>7%</td></tr><tr><td>Southeast</td><td>8,529</td><td>7,408</td><td>15%</td><td>2,164.4</td><td>1,759.2</td><td>23%</td><td>253,800</td><td>237,500</td><td>7%</td></tr><tr><td>South Central</td><td>9,707</td><td>8,074</td><td>20%</td><td>2,144.5</td><td>1,683.1</td><td>27%</td><td>220,900</td><td>208,500</td><td>6%</td></tr><tr><td>Southwest</td><td>1,298</td><td>1,381</td><td>-6%</td><td>285.2</td><td>288.9</td><td>-1%</td><td>219,700</td><td>209,200</td><td>5%</td></tr><tr><td>West</td><td>4,895</td><td>4,153</td><td>18%</td><td>2,125.4</td><td>1,609.0</td><td>32%</td><td>434,200</td><td>387,400</td><td>12%</td></tr><tr><td></td><td>29,709</td><td>25,120</td><td>18%</td><td>$8,308.6</td><td>$6,567.0</td><td>27%</td><td>$279,700</td><td>$261,400</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>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>East</td><td>1,106</td><td>807</td><td>$288.2</td><td>$207.6</td><td>22%</td><td>24%</td></tr><tr><td>Midwest</td><td>271</td><td>248</td><td>97.0</td><td>79.1</td><td>16%</td><td>14%</td></tr><tr><td>Southeast</td><td>2,955</td><td>2,369</td><td>701.2</td><td>513.1</td><td>26%</td><td>24%</td></tr><tr><td>South Central</td><td>3,136</td><td>2,794</td><td>686.8</td><td>547.7</td><td>24%</td><td>26%</td></tr><tr><td>Southwest</td><td>517</td><td>738</td><td>104.6</td><td>141.6</td><td>28%</td><td>35%</td></tr><tr><td>West</td><td>1,072</td><td>795</td><td>471.5</td><td>290.1</td><td>18%</td><td>16%</td></tr><tr><td></td><td>9,057</td><td>7,751</td><td>$2,349.3</td><td>$1,779.2</td><td>23%</td><td>24%</td></tr></table>

Question: In the year with the most East, what is the growth rate of Midwest?
Answer: -0.04742