Segment Information

12 Months Ended

Sep. 30, 2021

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. 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.

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	2021		2020		2019
Revenue
West	$	1,118,578	$	1,183,339	$	1,014,702
East	569,835		477,624		514,961
Southeast	451,890		466,114		558,076
Total revenue	$	2,140,303	$	2,127,077	$	2,087,739

	Fiscal Year Ended September 30,
in thousands	2021		2020		2019
Operating income (loss) (a)
West	$	181,303	$	161,786	$	(5,492)
East	84,630		56,319		51,576
Southeast	57,581		40,746		40,165
Segment total	323,514		258,851		86,249
Corporate and unallocated (b)	(176,645)		(179,744)		(176,145)
Total operating income (loss)	$	146,869	$	79,107	$	(89,896)

(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, 2021, September 30, 2020, and September 30, 2019, we recognized $0.9 million, $1.7 million and $131.7 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, 2021, there were no impairments of capitalized interest and capitalized indirect costs. For the year ended September 30, 2020, and September 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).

	Fiscal Year Ended September 30,
in thousands	2021		2020		2019
Depreciation and amortization
West	$	7,250	$	8,227	$	6,456
East	2,207		2,458		3,250
Southeast	2,552		2,857		3,455
Segment total	12,009		13,542		13,161
Corporate and unallocated (a)	1,967		2,098		1,598
Total depreciation and amortization	$	13,976	$	15,640	$	14,759

(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	2021		2020		2019
Capital expenditures
West	$	6,924	$	5,063	$	11,635
East	1,549		2,237		2,518
Southeast	1,447		2,985		3,086
Corporate and unallocated	4,725		357		4,117
Total capital expenditures	$	14,645	$	10,642	$	21,356

The following table presents assets by segment as of September 30, 2021 and 2020:

in thousands	September 30, 2021		September 30, 2020
Assets
West	$	819,317	$	658,909
East	286,133		267,050
Southeast	296,581		301,827
Corporate and unallocated (a)	676,779		779,694
Total assets	$	2,078,810	$	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.