Segment Information

3 Months Ended

Dec. 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 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 described in Note 2 to the consolidated financial statements within our 2016 Annual Report.

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

	Three Months Ended
	December 31,
(In thousands)	2016		2015
Revenue
West	$	171,749	$	157,196
East	84,159		100,557
Southeast	83,333		86,696
Total revenue	$	339,241	$	344,449

	Three Months Ended
	December 31,
(In thousands)	2016			2015
Operating income
West	$	21,015		$	16,786
East (a)	1,557			4,147
Southeast (b)	5,015			10,657
Segment total	27,587			31,590
Corporate and unallocated (c)	(26,312		)	(22,442		)
Total operating income	$	1,275		$	9,148

	Three Months Ended
	December 31,
(In thousands)	2016		2015
Depreciation and amortization
West	$	1,248	$	1,218
East	529		797
Southeast	466		449
Segment total	2,243		2,464
Corporate and unallocated (b)	434		527
Total depreciation and amortization	$	2,677	$	2,991

^(a) Operating income for our East segment for the three months ended December 31, 2016 was impacted by a charge to G&A of $2.7 million related to the write-off of a deposit on a legacy investment in a development site that we deemed noncollectible.

^(b) Operating income for our Southeast segment for the three months ended December 31,2015 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.

^(c) 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.

Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments.

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

	Three Months Ended
	December 31,
(In thousands)	2016		2015
Capital Expenditures
West	$	1,184	$	1,133
East	771		467
Southeast	618		969
Corporate and unallocated	301		94
Total capital expenditures	$	2,874	$	2,663

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

(In thousands)	December 31, 2016		September 30, 2016
Assets
West	$	796,962	$	778,521
East	346,524		344,898
Southeast	344,074		333,501
Corporate and unallocated (a)	700,583		756,238
Total assets	$	2,188,143	$	2,213,158

^(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.