Segment Information

9 Months Ended

Jun. 30, 2020

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 (loss). Operating income (loss) 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						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Revenue
West	$	303,500	$	238,723	$	825,629	$	658,097
East	108,126		118,356		297,107		301,168
Southeast	121,486		125,659		317,593		346,773
Total revenue	$	533,112	$	482,738	$	1,440,329	$	1,306,038


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Operating income (loss) ^(a)
West	$	42,574	$	29,268	$	106,128	$	(53,489)
East	12,423		11,247		29,257		23,571
Southeast	11,787		8,043		23,757		16,747

Segment total	66,784		48,558		159,142		(13,171)
Corporate and unallocated ^(b)	(43,633)		(39,015)		(115,621)		(112,730)
Total operating income (loss)	$	23,151	$	9,543	$	43,521	$	(125,901)


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Depreciation and amortization
West	$	2,119	$	1,415	$	5,778	$	3,956
East	500		658		1,605		1,743
Southeast	638		776		1,878		2,117

Segment total	3,257		2,849		9,261		7,816
Corporate and unallocated ^(b)	523		393		1,573		1,096
Total depreciation and amortization	$	3,780	$	3,242	$	10,834	$	8,912

^(a)Operating income (loss) is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5). For the nine months ended June 30, 2020 and June 30, 2019, we recognized $1.1 million and $131.7 million of inventory impairment and abandonment charges, respectively.

^(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. For the nine months ended June 30, 2020 and June 30, 2019, we wrote off $1.2 million and $16.9 million of capitalized interest and capitalized indirect costs, respectively (see Note 5 for further information).

The following table presents capital expenditures by segment for the periods presented:


	Nine Months Ended
	June 30,
in thousands	2020		2019
Capital Expenditures
West	$	3,606	$	8,172
East	1,699		2,122
Southeast	1,852		2,564

Corporate and unallocated	353		3,507
Total capital expenditures	$	7,510	$	16,365

The following table presents assets by segment as of June 30, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019
Assets
West	$	720,268	$	751,110
East	317,228		286,340
Southeast	340,654		359,431
Corporate and unallocated ^(a)	624,013		560,763
Total assets	$	2,002,163	$	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.