Segment Information

6 Months Ended

Mar. 31, 2017

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				Six Months Ended
	March 31,				March 31,
(In thousands)	2017		2016		2017		2016
Revenue
West	$	185,155	$	179,930	$	356,904	$	337,126
East	116,640		106,835		200,799		207,392
Southeast	123,673		98,842		207,006		185,538
Total revenue	$	425,468	$	385,607	$	764,709	$	730,056

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(In thousands)	2017			2016			2017			2016
Operating income
West	$	20,779		$	18,927		$	41,794		$	35,713
East (a)	10,532			8,333			12,089			12,480
Southeast (b)	12,574			7,738			17,589			18,395
Segment total	43,885			34,998			71,472			66,588
Corporate and unallocated (c)	(36,374		)	(31,968		)	(62,686		)	(54,410		)
Total operating income	$	7,511		$	3,030		$	8,786		$	12,178

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2017		2016		2017		2016
Depreciation and amortization
West	$	1,545	$	1,332	$	2,793	$	2,550
East	598		634		1,127		1,431
Southeast	656		547		1,122		996
Segment total	2,799		2,513		5,042		4,977
Corporate and unallocated (c)	356		543		790		1,070
Total depreciation and amortization	$	3,155	$	3,056	$	5,832	$	6,047

^(a) Operating income for our East segment for the six months ended March 31, 2017 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 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.

^(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:

	Six Months Ended
	March 31,
(In thousands)	2017		2016
Capital Expenditures
West	$	3,165	$	2,906
East	1,446		1,273
Southeast	875		1,622
Corporate and unallocated	191		216
Total capital expenditures	$	5,677	$	6,017

The following table contains our asset balance by segment as of March 31, 2017 and September 30, 2016:

(In thousands)	March 31, 2017		September 30, 2016
Assets
West	$	807,218	$	778,521
East	335,172		344,898
Southeast	343,125		333,501
Corporate and unallocated (a)	689,686		756,238
Total assets	$	2,175,201	$	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.