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 0 ##
September 30,
## Table 1 ##
(1) The operating results of certain subsidiaries previously included in our homebuilding operations have been reclassified to our financial services and other operations.
As a result of these reclassifications, our homebuilding pre-tax income in fiscal 2014, 2013, and 2012 was reduced by $0.3 million, $2.5 million and $0.3 million, respectively, with a corresponding increase in the pre-tax income of our financial services and other operations.
In fiscal 2015, the income and expense reclassifications had no impact on our results of operations.
These reclassifications had no effect on our consolidated operating results or balance sheet data.
See Note A.
(2) The income tax benefit in fiscal 2012 reflects a $753.2 million reduction of our deferred tax asset valuation allowance during the year.
(3) Notes payable includes both homebuilding notes payable and amounts outstanding on our mortgage repurchase facility.
The number of homes closed increased 28%, and the average selling price of those homes increased 5% to $285,700 during 2015 compared to 2014.
The increases in our East and Southeast regions reflect the positive impact of our May 2014 acquisition of the homebuilding operations of Crown Communities.
Crown Communities added 585 closings to the East region’s results in 2015, compared to 213 closings in 2014, and added 1,292 closings to the Southeast region’s results in 2015, compared to 508 closings in 2014.
Excluding the impact of Crown Communities, the increase in homes closed in our East region was primarily due to increases in our Carolina markets, and in our Southeast region was primarily due to increases in our Florida markets.
The increase in our Midwest region was due to increases in our Chicago and Denver markets.
In our South Central region, the highest percentage increases in homes closed occurred in our Houston, Austin and Fort Worth markets.
Our Phoenix market contributed the most to the increase in our Southwest region.
The increase in our West region was primarily due to increases in most of our California markets.
Homebuilding Operating Margin Analysis
## Table 2 ##
(1) Prior period percentages for selling, general and administrative expense and other (income) expense reflect certain reclassifications made to the prior year financial statements to conform to the classifications used in the current year.
See Note A.
Home Sales Gross Profit 2016 versus 2015 Gross profit from home sales increased 15% to $2.4 billion in 2016 from $2.1 billion in 2015 and increased 40 basis points to 20.2% as a percentage of home sales revenues.
The 40 basis point increase in the home sales gross profit percentage resulted from improvements of 30 basis points due to the average selling price of our homes closed increasing by more than the average cost and 10 basis points due to a decrease in the amortization of capitalized interest and property taxes as a percentage of home sales revenues.2015 versus 2014 Gross profit from home sales increased 25% to $2.1 billion in 2015 from $1.7 billion in 2014 and decreased 150 basis points to 19.8% as a percentage of home sales revenues.
Approximately 150 basis points of the decrease in the home sales gross profit percentage resulted from the average cost of our homes closed increasing by more than the average selling price.
Additionally, our home sales gross margin decreased approximately 20 basis points due to an increase in warranty and construction defect expenses as a percentage of home sales revenues.
These decreases were partially offset by a 10 basis point improvement from a decrease in the amortization of capitalized interest and property taxes as a percentage of homes sales revenues and a 10 basis point improvement related to a decrease in the amount of purchase accounting adjustments for recent acquisitions.
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 minimum level of tangible net worth, 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.
In addition, the credit agreement governing the facility and the indenture governing the senior notes impose restrictions on the creation of secured debt and liens.
At September 30, 2016, 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 January 15, 2016, the Company repaid $170.2 million principal amount of its 5.625% senior notes, which were due on that date.
On April 15, 2016, the Company repaid $372.7 million principal amount of its 6.5% senior notes, which were due on that date.
The key terms of the Company’s senior notes outstanding as of September 30, 2016 are summarized below.
## Table 3 ##
(1) The Company may redeem the notes in whole at any time or in part from time to time, at a redemption price equal to the greater of 100% of their principal amount or the present value of the remaining scheduled payments on the redemption date, plus accrued interest.
(2) Interest is payable semi-annually on each of the series of senior notes.
The annual effective interest rate is calculated after giving effect to the amortization of debt issuance costs.
All series of senior notes and borrowings under the revolving credit facility are senior obligations and rank pari passu in right of payment to all existing and future unsecured indebtedness and senior to all existing and future indebtedness expressly subordinated to them.
The senior notes and borrowings under the revolving credit facility are guaranteed by entities that hold greater than 95% of the Company’s homebuilding assets.
Upon the occurrence of both a change of control of the Company and a ratings downgrade event, as defined in the indenture governing its senior notes, the Company would be required in certain circumstances to offer to repurchase these notes at 101% of their principal amount, along with accrued and unpaid interest.
Also, a change of control as defined in the revolving credit facility would constitute an event of default under the revolving credit facility, which could result in the acceleration of any borrowings outstanding under the facility and the termination of the commitments thereunder.
Performance Graph The table below compares the cumulative total shareholder return on our common stock with the cumulative total return of (i) the Standard & Poor’s 500 Composite Stock Index (“S&P 500 Index”), (ii) The Standard & Poor’s Industrials Index (“S&P Industrials Index”) and (iii) the Standard & Poor’s Consumer Durables & Apparel Index (“S&P Consumer Durables & Apparel Index”), from December 31, 2005 through December 31, 2010, when the closing price of our common stock was $12.66.
The graph assumes investments of $100 on December 31, 2005 in our common stock and in each of the three indices and the reinvestment of dividends.
## Table 4 ##
The table below sets forth the value, as of December 31 for each of the years indicated, of a $100 investment made on December 31, 2005 in each of our common stock, the S&P 500 Index, the S&P Industrials Index and the S&P Consumer Durables & Apparel Index and includes the reinvestment of dividends.
In July 2007, our Board of Directors authorized the purchase of up to 50 million shares of our common stock in open-market transactions or otherwise.
At December 31, 2010, we had remaining authorization to repurchase up to 27 million shares.
During 2010, we repurchased and retired three million shares of our common stock, for cash aggregating $45 million to offset the dilutive impact of the 2010 grant of three million shares of long-term stock awards.
We did not purchase any shares during the three months ended December 31, 2010.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="5">Year Ended September 30,</td></tr><tr><td></td><td>2016</td><td>2015</td><td>2014</td><td>2013</td><td>2012</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>$11,861.8</td><td>$10,559.0</td><td>$7,858.5</td><td>$6,085.9</td><td>$4,236.2</td></tr><tr><td>Financial Services</td><td>295.6</td><td>265.0</td><td>166.4</td><td>173.4</td><td>117.8</td></tr><tr><td>Inventory and land option charges</td><td>31.4</td><td>60.3</td><td>85.2</td><td>31.1</td><td>6.2</td></tr><tr><td>Gross profit — Homebuilding</td><td>2,359.2</td><td>2,023.3</td><td>1,589.9</td><td>1,232.4</td><td>743.8</td></tr><tr><td>Income before income taxes:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Homebuilding -1</td><td>1,264.4</td><td>1,018.3</td><td>768.5</td><td>589.8</td><td>203.4</td></tr><tr><td>Financial Services and other -1</td><td>89.1</td><td>105.1</td><td>45.7</td><td>68.0</td><td>39.5</td></tr><tr><td>Income tax expense (benefit) (2)</td><td>467.2</td><td>372.7</td><td>280.7</td><td>195.1</td><td>-713.4</td></tr><tr><td>Net income</td><td>886.3</td><td>750.7</td><td>533.5</td><td>462.7</td><td>956.3</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>2.39</td><td>2.05</td><td>1.57</td><td>1.44</td><td>3.01</td></tr><tr><td>Diluted</td><td>2.36</td><td>2.03</td><td>1.50</td><td>1.33</td><td>2.77</td></tr><tr><td>Cash dividends declared per common share</td><td>0.32</td><td>0.25</td><td>0.1375</td><td>0.1875</td><td>0.15</td></tr></table>
<table><tr><td></td><td colspan="5">September 30,</td></tr><tr><td></td><td>2016</td><td>2015</td><td>2014</td><td>2013</td><td>2012</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</td><td>$1,303.2</td><td>$1,383.8</td><td>$661.8</td><td>$977.4</td><td>$1,384.8</td></tr><tr><td>Inventories</td><td>8,340.9</td><td>7,807.0</td><td>7,700.5</td><td>6,197.4</td><td>4,165.2</td></tr><tr><td>Total assets</td><td>11,558.9</td><td>11,151.0</td><td>10,185.4</td><td>8,838.4</td><td>7,236.2</td></tr><tr><td>Notes payable -3</td><td>3,271.3</td><td>3,811.5</td><td>3,665.7</td><td>3,491.0</td><td>2,481.1</td></tr><tr><td>Total equity</td><td>6,793.0</td><td>5,895.4</td><td>5,119.7</td><td>4,061.4</td><td>3,594.7</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>2016</td><td>2015</td><td>2014</td></tr><tr><td>Gross profit — Home sales</td><td>20.2%</td><td>19.8%</td><td>21.3%</td></tr><tr><td>Gross profit — Land/lot sales and other</td><td>13.3%</td><td>8.7%</td><td>17.7%</td></tr><tr><td>Inventory and land option charges</td><td>-0.3%</td><td>-0.6%</td><td>-1.1%</td></tr><tr><td>Gross profit — Total homebuilding</td><td>19.9%</td><td>19.2%</td><td>20.2%</td></tr><tr><td>Selling, general and administrative expense -1</td><td>9.3%</td><td>9.5%</td><td>10.5%</td></tr><tr><td>Goodwill impairment</td><td>0.1%</td><td>0.1%</td><td>—%</td></tr><tr><td>Other (income) expense (1)</td><td>-0.1%</td><td>-0.1%</td><td>-0.1%</td></tr><tr><td>Homebuilding pre-tax income</td><td>10.7%</td><td>9.6%</td><td>9.8%</td></tr></table>
<table><tr><td>Notes Payable</td><td>Principal Amount</td><td>Date Issued</td><td>Date Due</td><td>RedeemablePrior toMaturity -1</td><td>EffectiveInterest Rate -2</td></tr><tr><td></td><td>(In millions)</td><td></td><td></td><td></td><td></td></tr><tr><td>4.75% senior notes</td><td>$350.0</td><td>May 2012</td><td>May 15, 2017</td><td>Yes</td><td>5.0%</td></tr><tr><td>3.625% senior notes</td><td>$400.0</td><td>February 2013</td><td>February 15, 2018</td><td>Yes</td><td>3.8%</td></tr><tr><td>3.75% senior notes</td><td>$500.0</td><td>February 2014</td><td>March 1, 2019</td><td>Yes</td><td>3.9%</td></tr><tr><td>4.0% senior notes</td><td>$500.0</td><td>February 2015</td><td>February 15, 2020</td><td>Yes</td><td>4.2%</td></tr><tr><td>4.375% senior notes</td><td>$350.0</td><td>September 2012</td><td>September 15, 2022</td><td>Yes</td><td>4.5%</td></tr><tr><td>4.75% senior notes</td><td>$300.0</td><td>February 2013</td><td>February 15, 2023</td><td>Yes</td><td>4.9%</td></tr><tr><td>5.75% senior notes</td><td>$400.0</td><td>August 2013</td><td>August 15, 2023</td><td>Yes</td><td>5.9%</td></tr></table>
<table><tr><td></td><td>2006</td><td>2007</td><td>2008</td><td>2009</td><td>2010</td></tr><tr><td>Masco</td><td>$101.79</td><td>$76.74</td><td>$42.81</td><td>$54.89</td><td>$51.51</td></tr><tr><td>S&P 500 Index</td><td>$115.61</td><td>$121.95</td><td>$77.38</td><td>$97.44</td><td>$111.89</td></tr><tr><td>S&P Industrials Index</td><td>$113.16</td><td>$126.72</td><td>$76.79</td><td>$92.30</td><td>$116.64</td></tr><tr><td>S&P Consumer Durables & Apparel Index</td><td>$106.16</td><td>$84.50</td><td>$56.13</td><td>$76.51</td><td>$99.87</td></tr></table>

Question: In which year is Inventory and land option charges smaller than Financial Services ?
Answer: 2012 2013 2014 2015 2016