Segment Information

3 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

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 (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 2020 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	2020		2019
Revenue
West	$	236,880	$	254,398
East	97,964		78,040
Southeast	93,695		85,366
Total revenue	$	428,539	$	417,804

	Three Months Ended
	December 31,
in thousands	2020		2019
Operating income (loss)
West	$	33,303	$	30,331
East	11,368		5,321
Southeast	10,308		3,156
Segment total	54,979		38,808
Corporate and unallocated (a)	(37,291)		(34,862)
Total operating income	$	17,688	$	3,946

	Three Months Ended
	December 31,
in thousands	2020		2019
Depreciation and amortization
West	$	1,537	$	1,808
East	471		554
Southeast	595		540
Segment total	2,603		2,902
Corporate and unallocated (a)	519		525
Total depreciation and amortization	$	3,122	$	3,427

(a) 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	2020		2019
Capital Expenditures
West	$	1,636	$	1,484
East	434		452
Southeast	234		516
Corporate and unallocated	649		180
Total capital expenditures	$	2,953	$	2,632

The following table presents assets by segment as of December 31, 2020 and September 30, 2020:

in thousands	December 31, 2020		September 30, 2020
Assets
West	$	673,605	$	658,909
East	305,980		267,050
Southeast	312,123		301,827
Corporate and unallocated (a)	692,766		779,694
Total assets	$	1,984,474	$	2,007,480

(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.