Segment Information

3 Months Ended

Dec. 31, 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 to the consolidated financial statements within our 2021 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	2021		2020
Revenue
West	$	257,666	$	236,880
East	118,169		97,964
Southeast	78,314		93,695
Total revenue	$	454,149	$	428,539

	Three Months Ended
	December 31,
in thousands	2021		2020
Operating income (loss)
West	$	42,724	$	33,303
East	19,859		11,368
Southeast	8,200		10,308
Segment total	70,783		54,979
Corporate and unallocated (a)	(29,844)		(37,291)
Total operating income	$	40,939	$	17,688

(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.

	Three Months Ended
	December 31,
in thousands	2021		2020
Depreciation and amortization
West	$	1,599	$	1,537
East	435		471
Southeast	399		595
Segment total	2,433		2,603
Corporate and unallocated (a)	448		519
Total depreciation and amortization	$	2,881	$	3,122

(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:

	Three Months Ended
	December 31,
in thousands	2021		2020
Capital expenditures
West	$	1,333	$	1,636
East	69		434
Southeast	355		234
Corporate and unallocated	1,137		649
Total capital expenditures	$	2,894	$	2,953

The following table presents assets by segment as of December 31, 2021 and September 30, 2021:

in thousands	December 31, 2021		September 30, 2021
Assets
West	$	867,871	$	819,317
East	296,633		286,133
Southeast	304,571		296,581
Corporate and unallocated (a)	591,116		676,779
Total assets	$	2,060,191	$	2,078,810

(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.