Segment Information

6 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

We currently operate in 13 states that are grouped into three homebuilding segments based on geography. Revenue from our homebuilding segments is 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				Six Months Ended
	March 31,				March 31,
(In thousands)	2018		2017		2018		2017
Revenue
West	$	234,510	$	185,155	$	412,481	$	356,904
East	107,412		116,640		196,265		200,799
Southeast	113,256		123,673		218,921		207,006
Total revenue	$	455,178	$	425,468	$	827,667	$	764,709

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(In thousands)	2018			2017			2018			2017
Operating income (a)
West	$	31,715		$	20,779		$	52,825		$	41,794
East (b)	8,926			10,532			16,322			12,089
Southeast	7,897			12,574			14,807			17,589
Segment total	48,538			43,885			83,954			71,472
Corporate and unallocated (c)	(34,713		)	(36,374		)	(63,448		)	(62,686		)
Total operating income	$	13,825		$	7,511		$	20,506		$	8,786

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2018		2017		2018		2017
Depreciation and amortization
West	$	1,697	$	1,545	$	2,953	$	2,793
East	551		598		990		1,127
Southeast	542		656		1,121		1,122
Segment total	2,790		2,799		5,064		5,042
Corporate and unallocated (c)	276		356		509		790
Total depreciation and amortization	$	3,066	$	3,155	$	5,573	$	5,832

^(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 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 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 capital expenditures by segment for the periods presented:

	Six Months Ended
	March 31,
(In thousands)	2018		2017
Capital Expenditures
West	$	4,238	$	3,165
East	1,133		1,446
Southeast	1,185		875
Corporate and unallocated	1,636		191
Total capital expenditures	$	8,192	$	5,677

The following table contains our asset balance by segment as of March 31, 2018 and September 30, 2017:

(In thousands)	March 31, 2018		September 30, 2017
Assets
West	$	830,572	$	779,964
East	318,984		298,532
Southeast	365,975		331,618
Corporate and unallocated (a)	591,972		810,881
Total assets	$	2,107,503	$	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.