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 and 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)	2018		2017		2016
Revenue
West	$	1,014,803	$	853,230	$	827,907
East	524,563		551,422		526,949
Southeast	567,767		511,626		467,258
Total revenue	$	2,107,133	$	1,916,278	$	1,822,114



	Fiscal Year Ended September 30,
(In thousands)	2018			2017			2016
Operating income ^(a)
West	$	142,310		$	110,600		$	99,835
East ^(b)	57,372			58,191			42,205
Southeast ^(c)	45,950			53,905			49,250
Segment total	245,632			222,696			191,290
Corporate and unallocated ^(d)	(164,084		)	(160,558		)	(131,965		)
Total operating income	$	81,548		$	62,138		$	59,325



	Fiscal Year Ended September 30,
(In thousands)	2018		2017		2016
Depreciation and amortization
West	$	7,062	$	7,207	$	6,086
East	2,619		2,927		3,173
Southeast	3,053		2,564		2,451
Segment total	12,734		12,698		11,710
Corporate and unallocated ^(d)	1,073		1,311		2,084
Total depreciation and amortization	$	13,807	$	14,009	$	13,794

^(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 uncollectible.

^(c) Operating income for our Southeast segment for the year ended September 30, 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 in fiscal 2016.

^(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)	2018		2017		2016
Capital Expenditures
West	$	8,152	$	7,086	$	6,570
East	2,234		2,474		2,441
Southeast	3,112		2,539		2,747
Corporate and unallocated	3,522		341		461
Total capital expenditures	$	17,020	$	12,440	$	12,219

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



(In thousands)	September 30, 2018		September 30, 2017
Assets
West	$	835,230	$	779,964
East	335,474		298,532
Southeast	414,685		331,618
Corporate and unallocated ^(a)	542,713		810,881
Total assets	$	2,128,102	$	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.