Segment Information

12 Months Ended

Sep. 30, 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 from 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 sales 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 those described in Note 2.

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

	Fiscal Year Ended September 30,
(In thousands)	2016		2015		2014
Revenue
West	$	827,907	$	607,515	$	556,741
East	526,949		576,560		552,082
Southeast	467,258		443,338		354,944
Total revenue	$	1,822,114	$	1,627,413	$	1,463,767

	Fiscal Year Ended September 30,
(In thousands)	2016			2015			2014
Operating income
West	$	99,835		$	67,236		$	65,442
East	42,205			52,516			48,127
Southeast (a)	49,250			37,114			31,854
Segment total	191,290			156,866			145,423
Corporate and unallocated (b)	(131,965		)	(105,279		)	(89,734		)
Total operating income	$	59,325		$	51,587		$	55,689

	Fiscal Year Ended September 30,
(In thousands)	2016		2015		2014
Depreciation and amortization
West	$	6,086	$	5,544	$	5,722
East	3,173		3,091		3,447
Southeast	2,451		2,776		2,075
Segment total	11,710		11,411		11,244
Corporate and unallocated (b)	2,084		1,927		2,035
Total depreciation and amortization	$	13,794	$	13,338	$	13,279

^(a) Operating income for our Southeast segment for the years ended September 30, 2016, 2015 and 2014 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 fiscal 2016, and expense of $13.6 million and $4.3 million in fiscal 2015 and 2014, respectively.

^(b) Corporate and unallocated operating loss includes amortization of capitalized interest; movement in capitalized indirects; expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing; and certain other amounts that are not allocated to our operating segments. For the year ended September 30, 2016, the Corporate and unallocated operating loss includes a $15.5 million reduction in home construction expenses resulting from an agreement entered into during the current fiscal year with our third-party insurer to resolve certain issues related to the extent of our insurance coverage (refer to Note 9).

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:

	Fiscal Year Ended September 30,
(In thousands)	2016		2015		2014
Capital Expenditures
West	$	6,570	$	7,348	$	6,660
East	2,441		3,692		3,050
Southeast	2,747		3,379		2,979
Corporate and unallocated (a)	461		2,219		1,864
Total capital expenditures	$	12,219	$	16,638	$	14,553

^(a) Amount for fiscal 2015 includes non-cash capital expenditure; refer to Note 3.

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

(In thousands)	September 30, 2016		September 30, 2015
Assets
West	$	778,521	$	843,564
East	344,898		436,346
Southeast	333,501		317,295
Corporate and unallocated (a)	756,238		812,090
Total assets	$	2,213,158	$	2,409,295

^(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.