Segment Information

12 Months Ended

Sep. 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 in which the Company has held a one-third ownership stake for the past 16 years. 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.

The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented:

	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Revenue
West	$	1,331,553	$	1,118,578	$	1,183,339
East	560,747		569,835		477,624
Southeast	424,688		451,890		466,114
Total revenue	$	2,316,988	$	2,140,303	$	2,127,077

	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Operating income
West	$	253,961	$	181,303	$	161,786
East	102,146		84,630		56,319
Southeast	68,726		57,581		40,746
Segment total	424,833		323,514		258,851
Corporate and unallocated(a)	(152,342)		(176,645)		(179,744)
Total operating income	$	272,491	$	146,869	$	79,107

(a) 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.

	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Depreciation and amortization
West	$	8,178	$	7,250	$	8,227
East	1,649		2,207		2,458
Southeast	1,843		2,552		2,857
Segment total	11,670		12,009		13,542
Corporate and unallocated(a)	1,690		1,967		2,098
Total depreciation and amortization	$	13,360	$	13,976	$	15,640

(a) 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	2022		2021		2020
Capital expenditures
West	$	7,755	$	6,924	$	5,063
East	1,208		1,549		2,237
Southeast	1,215		1,447		2,985
Corporate and unallocated	4,870		4,725		357
Total capital expenditures	$	15,048	$	14,645	$	10,642

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

in thousands	September 30, 2022		September 30, 2021
Assets
West	$	995,339	$	819,317
East	334,323		286,133
Southeast	305,443		296,581
Corporate and unallocated(a)	616,858		676,779
Total assets	$	2,251,963	$	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.