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 sales and other revenue 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 to the consolidated financial statements within our 2018 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	2018		2017
Revenue
West	$	208,944	$	177,971
East	88,746		88,853
Southeast	104,350		105,665
Total revenue	$	402,040	$	372,489



	Three Months Ended
	December 31,
in thousands	2018			2017
Operating income ^(a)
West	$	24,261		$	21,110
East	5,395			7,396
Southeast	1,380			6,910
Segment total	31,036			35,416
Corporate and unallocated ^(b)	(27,530		)	(28,735		)
Total operating income	$	3,506		$	6,681



	Three Months Ended
	December 31,
in thousands	2018		2017
Depreciation and amortization
West	$	1,278	$	1,256
East	538		439
Southeast	610		579
Segment total	2,426		2,274
Corporate and unallocated ^(b)	344		233
Total depreciation and amortization	$	2,770	$	2,507

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

^(b)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 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 presents capital expenditures by segment for the periods presented:



	Three Months Ended
	December 31,
in thousands	2018		2017
Capital Expenditures
West	$	2,651	$	1,776
East	762		595
Southeast	859		743
Corporate and unallocated	2,082		588
Total capital expenditures	$	6,354	$	3,702

The following table presents assets by segment as of December 31, 2018 and September 30, 2018:



in thousands	December 31, 2018		September 30, 2018
Assets
West	$	855,823	$	835,230
East	305,232		335,474
Southeast	390,934		414,685
Corporate and unallocated ^(a)	551,401		542,713
Total assets	$	2,103,390	$	2,128,102

^(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.