Segment Information

3 Months Ended

Dec. 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 2017 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)	2017		2016
Revenue
West	$	177,971	$	171,749
East	88,853		84,159
Southeast	105,665		83,333
Total revenue	$	372,489	$	339,241

	Three Months Ended
	December 31,
(In thousands)	2017			2016
Operating income (a)
West	$	21,110		$	21,015
East (b)	7,396			1,557
Southeast	6,910			5,015
Segment total	35,416			27,587
Corporate and unallocated (c)	(28,735		)	(26,312		)
Total operating income	$	6,681		$	1,275

	Three Months Ended
	December 31,
(In thousands)	2017		2016
Depreciation and amortization
West	$	1,256	$	1,248
East	439		529
Southeast	579		466
Segment total	2,274		2,243
Corporate and unallocated (c)	233		434
Total depreciation and amortization	$	2,507	$	2,677

^(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 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 uncollectible.

^(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)	2017		2016
Capital Expenditures
West	$	1,776	$	1,184
East	595		771
Southeast	743		618
Corporate and unallocated	588		301
Total capital expenditures	$	3,702	$	2,874

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

(In thousands)	December 31, 2017		September 30, 2017
Assets
West	$	810,232	$	779,964
East	303,429		298,532
Southeast	354,659		331,618
Corporate and unallocated (a)	609,662		810,881
Total assets	$	2,077,982	$	2,220,995

^(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.