Segment Information

9 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

We currently operate in 15 states which are grouped into three homebuilding segments based on geography. Revenues in our homebuilding segments are derived from the sale of homes which we construct and from land and lot sales. Our reportable segments have been determined on a basis that is used internally by management for evaluating segment performance and resource allocations. We have considered the applicable aggregation criteria, and have combined our homebuilding operations into the three reportable segments as follows:

West: Arizona, California, Nevada and Texas

East: Delaware, Indiana, Maryland, New Jersey, Pennsylvania, Tennessee (Nashville) and Virginia

Southeast: Florida, Georgia, North Carolina (Raleigh) and South Carolina

Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding, land sale and other revenues less home construction, land development and land sale expense, commission expense, depreciation and amortization and certain G&A expenses which are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are described in Note 1 to our consolidated financial statements in our 2014 Annual Report.

The following tables contain our revenue, operating income (loss) and depreciation and amortization by segment for the periods presented:

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(In thousands)	2015		2014		2015		2014
Revenue
West	$	149,129	$	136,906	$	351,975	$	381,368
East	155,160		128,358		363,152		319,313
Southeast	125,149		89,407		279,434		217,181
Total revenue	$	429,438	$	354,671	$	994,561	$	917,862

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
(In thousands)	2015			2014			2015			2014
Operating income
West	$	16,246		$	18,754		$	33,628		$	48,854
East	15,344			10,438			28,457			21,667
Southeast	14,382			8,235			15,200			18,025
Segment total	45,972			37,427			77,285			88,546
Corporate and unallocated (a)	(28,276		)	(22,339		)	(62,643		)	(56,309		)
Total operating income	$	17,696		$	15,088		$	14,642		$	32,237

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(In thousands)	2015		2014		2015		2014
Depreciation and amortization
West	$	1,267	$	1,427	$	3,299	$	4,113
East	900		890		2,094		2,138
Southeast	793		521		1,817		1,270
Segment total	2,960		2,838		7,210		7,521
Corporate and unallocated (a)	537		562		1,409		1,617
Depreciation and amortization - continuing operations	$	3,497	$	3,400	$	8,619	$	9,138

^(a) Corporate and unallocated operating loss includes amortization of capitalized interest and expenses related to numerous shared services functions including information technology, treasury, corporate finance, legal, branding and other national marketing costs that benefit all segments, the costs of which are not allocated to the operating segments reported above. Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by corporate functions that benefit all segments.

The following table contains our capital expenditures by segment for the periods presented:

	Nine Months Ended
	June 30,
(In thousands)	2015		2014
Capital Expenditures
West	$	4,959	$	3,891
East	2,996		1,827
Southeast	2,653		1,498
Corporate and unallocated	1,822		1,768
Total capital expenditures	$	12,430	$	8,984

The following table contains our asset balance by segment as of June 30, 2015 and September 30, 2014:

(In thousands)	June 30, 2015		September 30, 2014
Assets
West	$	884,235	$	756,575
East	470,189		433,032
Southeast	355,729		299,215
Corporate and unallocated (a)	380,019		577,398
Total assets	$	2,090,172	$	2,066,220

^(a) Primarily consists of cash and cash equivalents, restricted cash, consolidated inventory not owned, deferred taxes, capitalized interest and other items that are not allocated to the segments.