Segment Information

6 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

We currently operate in 13 states that are grouped into three homebuilding segments based on geography. Revenues in our homebuilding segments are derived from the sale of homes that 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 three reportable segments as follows:

West: Arizona, California, Nevada and Texas

East: Delaware, Indiana, Maryland, New Jersey^(a), Tennessee and Virginia

Southeast: Florida, Georgia, North Carolina and South Carolina

^(a) During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, it is included in this listing because the segment information below continues to include New Jersey.

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 that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are described in Note 2 to the consolidated financial statements within our 2015 Annual Report.

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

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2016		2015		2016		2015
Revenue
West	$	179,930	$	115,381	$	337,126	$	202,846
East	106,835		103,179		207,392		207,992
Southeast	98,842		80,799		185,538		154,285
Total revenue	$	385,607	$	299,359	$	730,056	$	565,123

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(In thousands)	2016			2015			2016			2015
Operating income (loss)
West	$	18,927		$	10,599		$	35,713		$	17,382
East	8,333			5,744			12,480			13,113
Southeast (a)	7,738			7,051			18,395			818
Segment total	34,998			23,394			66,588			31,313
Corporate and unallocated (b)	(31,968		)	(16,958		)	(54,410		)	(34,367		)
Total operating income (loss)	$	3,030		$	6,436		$	12,178		$	(3,054	)

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2016		2015		2016		2015
Depreciation and amortization
West	$	1,332	$	1,265	$	2,550	$	2,032
East	634		526		1,431		1,194
Southeast	547		539		996		1,024
Segment total	2,513		2,330		4,977		4,250
Corporate and unallocated (b)	543		451		1,070		872
Depreciation and amortization - continuing operations	$	3,056	$	2,781	$	6,047	$	5,122

^(a) Operating income for our Southeast segment for the six months ended March 31, 2016 was impacted by unexpected warranty costs related to the Florida stucco issues, net of expected insurance recoveries. This impact was a credit of $3.6 million in the current year period, and expense of $13.6 million in the prior year period.

^(b) Corporate and unallocated operating loss includes amortization of capitalized interest, movement in capitalized indirects 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 cost of which is 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:

	Six Months Ended
	March 31,
(In thousands)	2016		2015
Capital Expenditures
West	$	2,906	$	2,659
East	1,273		2,067
Southeast	1,622		1,899
Corporate and unallocated	216		853
Total capital expenditures	$	6,017	$	7,478

The following table contains our asset balance by segment as of March 31, 2016 and September 30, 2015:

(In thousands)	March 31, 2016		September 30, 2015
Assets
West	$	857,178	$	843,564
East	412,276		436,346
Southeast	352,895		317,295
Corporate and unallocated (a)	711,392		823,998
Total assets	$	2,333,741	$	2,421,203

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