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 2019 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	2019		2018
Revenue
West	$	254,398	$	208,944
East	78,040		88,746
Southeast	85,366		104,350
Total revenue	$	417,804	$	402,040



	Three Months Ended
	December 31,
in thousands	2019			2018
Operating income ^(a)
West	$	30,331		$	24,261
East	5,321			5,395
Southeast	3,156			1,380
Segment total	38,808			31,036
Corporate and unallocated ^(b)	(34,862		)	(27,530		)
Total operating income	$	3,946		$	3,506



	Three Months Ended
	December 31,
in thousands	2019		2018
Depreciation and amortization
West	$	1,808	$	1,278
East	554		538
Southeast	540		610
Segment total	2,902		2,426
Corporate and unallocated ^(b)	525		344
Total depreciation and amortization	$	3,427	$	2,770

^(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 indirect costs, 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	2019		2018
Capital Expenditures
West	$	1,484	$	2,651
East	452		762
Southeast	516		859
Corporate and unallocated	180		2,082
Total capital expenditures	$	2,632	$	6,354

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



in thousands	December 31, 2019		September 30, 2019
Assets
West	$	764,868	$	751,110
East	298,389		286,340
Southeast	368,332		359,431
Corporate and unallocated ^(a)	536,515		560,763
Total assets	$	1,968,104	$	1,957,644

^(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments.