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 (loss) income. Operating (loss) 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 (loss) income, and depreciation and amortization by segment for the periods presented:



	Three Months Ended				Six Months Ended
	March 31,				March 31,
in thousands	2019		2018		2019		2018
Revenue
West	$	210,430	$	234,510	$	419,374	$	412,481
East	94,066		107,412		182,812		196,265
Southeast	116,764		113,256		221,114		218,921
Total revenue	$	421,260	$	455,178	$	823,300	$	827,667



	Three Months Ended						Six Months Ended
	March 31,						March 31,
in thousands	2019			2018			2019			2018
Operating (loss) income ^(a)
West	$	(107,018	)	$	31,715		$	(82,757	)	$	52,825
East	6,929			8,926			12,324			16,322
Southeast	7,324			7,897			8,704			14,807
Segment total	(92,765		)	48,538			(61,729		)	83,954
Corporate and unallocated ^(b)	(46,185		)	(34,713		)	(73,715		)	(63,448		)
Total operating (loss) income	$	(138,950	)	$	13,825		$	(135,444	)	$	20,506



	Three Months Ended				Six Months Ended
	March 31,				March 31,
in thousands	2019		2018		2019		2018
Depreciation and amortization
West	$	1,263	$	1,697	$	2,541	$	2,953
East	547		551		1,085		990
Southeast	731		542		1,341		1,121
Segment total	2,541		2,790		4,967		5,064
Corporate and unallocated ^(b)	359		276		703		509
Total depreciation and amortization	$	2,900	$	3,066	$	5,670	$	5,573

^(a) Operating (loss) 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:



	Six Months Ended
	March 31,
in thousands	2019		2018
Capital Expenditures
West	$	5,338	$	4,238
East	1,286		1,133
Southeast	2,055		1,185
Corporate and unallocated	2,829		1,636
Total capital expenditures	$	11,508	$	8,192

The following table presents assets by segment as of March 31, 2019 and September 30, 2018:



in thousands	March 31, 2019		September 30, 2018
Assets
West	$	758,627	$	835,230
East	315,728		335,474
Southeast	400,954		414,685
Corporate and unallocated ^(a)	580,032		542,713
Total assets	$	2,055,341	$	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.