Segment Information

9 Months Ended

Jun. 30, 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(a)

East: Delaware, Indiana, Maryland, New Jersey(b), Tennessee, and Virginia

Southeast: Florida, Georgia, North Carolina, and South Carolina

(a) On May 20, 2022, we acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder. The results of our San Antonio operations are reported herein within our West reportable segment.

(b) 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				Nine Months Ended
	June 30,				June 30,
in thousands	2022		2021		2022		2021
Revenue
West	$	324,679	$	297,073	$	885,837	$	812,673
East	112,519		162,156		359,623		413,691
Southeast	89,468		111,703		243,861		322,996
Total revenue	$	526,666	$	570,932	$	1,489,321	$	1,549,360

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2022		2021		2022		2021
Operating income
West	$	65,106	$	52,295	$	165,933	$	128,086
East	20,935		27,437		64,866		61,254
Southeast	14,476		14,981		32,683		40,363
Segment total	100,517		94,713		263,482		229,703
Corporate and unallocated (a)	(33,278)		(46,020)		(100,693)		(129,704)
Total operating income	$	67,239	$	48,693	$	162,789	$	99,999

(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				Nine Months Ended
	June 30,				June 30,
in thousands	2022		2021		2022		2021
Depreciation and amortization
West	$	2,067	$	1,924	$	5,476	$	5,397
East	311		602		1,113		1,648
Southeast	371		628		1,144		1,899
Segment total	2,749		3,154		7,733		8,944
Corporate and unallocated (a)	440		535		1,368		1,550
Total depreciation and amortization	$	3,189	$	3,689	$	9,101	$	10,494

(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:

	Nine Months Ended
	June 30,
in thousands	2022		2021
Capital expenditures
West	$	6,353	$	4,359
East	723		1,334
Southeast	843		987
Corporate and unallocated	3,273		3,639
Total capital expenditures	$	11,192	$	10,319

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

in thousands	June 30, 2022		September 30, 2021
Assets
West	$	1,026,635	$	819,317
East	361,148		286,133
Southeast	347,640		296,581
Corporate and unallocated (a)	482,977		676,779
Total assets	$	2,218,400	$	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.