Segment Information

6 Months Ended

Mar. 31, 2022

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				Six Months Ended
	March 31,				March 31,
in thousands	2022		2021		2022		2021
Revenue
West	$	303,492	$	278,720	$	561,158	$	515,600
East	128,935		153,571		247,104		251,535
Southeast	76,079		117,598		154,393		211,293
Total revenue	$	508,506	$	549,889	$	962,655	$	978,428

	Three Months Ended				Six Months Ended
	March 31,				March 31,
in thousands	2022		2021		2022		2021
Operating income
West	$	58,103	$	42,488	$	100,827	$	75,791
East	24,072		22,449		43,931		33,817
Southeast	10,007		15,074		18,207		25,382
Segment total	92,182		80,011		162,965		134,990
Corporate and unallocated (a)	(37,571)		(46,393)		(67,415)		(83,684)
Total operating income	$	54,611	$	33,618	$	95,550	$	51,306

(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				Six Months Ended
	March 31,				March 31,
in thousands	2022		2021		2022		2021
Depreciation and amortization
West	$	1,810	$	1,936	$	3,409	$	3,473
East	367		575		802		1,046
Southeast	374		676		773		1,271
Segment total	2,551		3,187		4,984		5,790
Corporate and unallocated (a)	480		496		928		1,015
Total depreciation and amortization	$	3,031	$	3,683	$	5,912	$	6,805

(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:

	Six Months Ended
	March 31,
in thousands	2022		2021
Capital expenditures
West	$	3,275	$	3,066
East	253		1,001
Southeast	595		378
Corporate and unallocated	2,072		2,069
Total capital expenditures	$	6,195	$	6,514

The following table presents assets by segment as of March 31, 2022 and September 30, 2021:

in thousands	March 31, 2022		September 30, 2021
Assets
West	$	921,217	$	819,317
East	314,973		286,133
Southeast	324,914		296,581
Corporate and unallocated (a)	598,900		676,779
Total assets	$	2,160,004	$	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.