Segment Information

12 Months Ended

Sep. 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 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.

The following tables contain our revenue, operating income (loss), and depreciation and amortization by segment for the periods presented:


	Fiscal Year Ended September 30,
in thousands	2020		2019		2018
Revenue
West	$	1,183,339	$	1,014,702	$	1,014,803
East	477,624		514,961		524,563
Southeast	466,114		558,076		567,767

Total revenue	$	2,127,077	$	2,087,739	$	2,107,133


	Fiscal Year Ended September 30,
in thousands	2020		2019		2018
Operating income (loss) (a)
West	$	161,786	$	(5,492)	$	142,310
East	56,319		51,576		57,372
Southeast	40,746		40,165		45,950

Segment total	258,851		86,249		245,632
Corporate and unallocated (b)	(179,744)		(176,145)		(164,084)
Total operating income (loss)	$	79,107	$	(89,896)	$	81,548

(a) Operating income (loss) is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5 for further information). For the year ended September 30, 2020, September 30, 2019, and September 30, 2018, we recognized $1.7 million, $131.7 million and $4.2 million of inventory impairment and abandonment charges, respectively, at our three reportable segments.

(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. For the year ended September 30, 2020, September 30, 2019, and September 30, 2018, we wrote off $1.2 million, $16.9 million, and $2.3 million of capitalized interest and capitalized indirect costs, respectively (see Note 5 for further information).


	Fiscal Year Ended September 30,
in thousands	2020		2019		2018
Depreciation and amortization
West	$	8,227	$	6,456	$	7,062
East	2,458		3,250		2,619
Southeast	2,857		3,455		3,053

Segment total	13,542		13,161		12,734
Corporate and unallocated (a)	2,098		1,598		1,073
Total depreciation and amortization	$	15,640	$	14,759	$	13,807

(a) 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:


	Fiscal Year Ended September 30,
in thousands	2020		2019		2018
Capital Expenditures
West	$	5,063	$	11,635	$	8,152
East	2,237		2,518		2,234
Southeast	2,985		3,086		3,112

Corporate and unallocated	357		4,117		3,522
Total capital expenditures	$	10,642	$	21,356	$	17,020

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


in thousands	September 30, 2020		September 30, 2019
Assets
West	$	658,909	$	751,110
East	267,050		286,340
Southeast	301,827		359,431

Corporate and unallocated (a)	779,694		560,763
Total assets	$	2,007,480	$	1,957,644

(a) Corporate and unallocated total assets 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.