Segment Information

12 Months Ended

Sep. 30, 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 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)	2017		2016		2015
Revenue
West	$	853,230	$	827,907	$	607,515
East	551,422		526,949		576,560
Southeast	511,626		467,258		443,338
Total revenue	$	1,916,278	$	1,822,114	$	1,627,413

	Fiscal Year Ended September 30,
(In thousands)	2017			2016			2015
Operating income (a)
West	$	110,600		$	99,835		$	67,236
East (b)	58,191			42,205			52,516
Southeast (c)	53,905			49,250			37,114
Segment total	222,696			191,290			156,866
Corporate and unallocated (d)	(160,558		)	(131,965		)	(105,279		)
Total operating income	$	62,138		$	59,325		$	51,587

	Fiscal Year Ended September 30,
(In thousands)	2017		2016		2015
Depreciation and amortization
West	$	7,207	$	6,086	$	5,544
East	2,927		3,173		3,091
Southeast	2,564		2,451		2,776
Segment total	12,698		11,710		11,411
Corporate and unallocated (d)	1,311		2,084		1,927
Total depreciation and amortization	$	14,009	$	13,794	$	13,338

^(a) Operating income is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5).

^(b) Operating income for our East segment for the year ended September 30, 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.

^(c) Operating income for our Southeast segment for the year ended September 30, 2016 and 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 in fiscal 2016 and an expense of $13.6 million in fiscal 2015.

^(d) Corporate and unallocated operating loss includes amortization of capitalized interest and 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)	2017		2016		2015
Capital Expenditures
West	$	7,086	$	6,570	$	7,348
East	2,474		2,441		3,692
Southeast	2,539		2,747		3,379
Corporate and unallocated (a)	341		461		2,219
Total capital expenditures	$	12,440	$	12,219	$	16,638

^(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, 2017 and 2016:

(In thousands)	September 30, 2017		September 30, 2016
Assets
West	$	779,964	$	778,521
East	298,532		344,898
Southeast	331,618		333,501
Corporate and unallocated (a)	810,881		756,238
Total assets	$	2,220,995	$	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.