Segment Information

9 Months Ended

Jun. 30, 2023

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 held a one-third ownership stake for the previous 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 to the consolidated financial statements within our 2022 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	2023		2022		2023		2022
Revenue
West	$	328,347	$	324,679	$	933,575	$	885,837
East	133,096		112,519		339,357		359,623
Southeast	111,101		89,468		288,448		243,861
Total revenue	$	572,544	$	526,666	$	1,561,380	$	1,489,321

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2023		2022		2023		2022
Operating income
West	$	55,629	$	65,106	$	138,499	$	165,933
East	16,415		20,935		41,921		64,866
Southeast	16,930		14,476		39,126		32,683
Segment total	88,974		100,517		219,546		263,482
Corporate and unallocated(a)	(41,074)		(33,278)		(104,352)		(100,693)
Total operating income	$	47,900	$	67,239	$	115,194	$	162,789

(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.

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2023		2022		2023		2022
Depreciation and amortization
West	$	1,750	$	2,067	$	5,294	$	5,476
East	402		311		1,063		1,113
Southeast	421		371		1,149		1,144
Segment total	2,573		2,749		7,506		7,733
Corporate and unallocated(a)	334		440		934		1,368
Total depreciation and amortization	$	2,907	$	3,189	$	8,440	$	9,101

(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:

	Nine Months Ended
	June 30,
in thousands	2023		2022
Capital expenditures
West	$	6,840	$	6,353
East	1,975		723
Southeast	1,273		843
Corporate and unallocated	4,034		3,273
Total capital expenditures	$	14,122	$	11,192

The following table presents assets by segment as of June 30, 2023 and September 30, 2022:

in thousands	June 30, 2023		September 30, 2022
Assets
West	$	961,637	$	995,339
East	364,157		334,323
Southeast	315,993		305,443
Corporate and unallocated(a)	676,811		616,858
Total assets	$	2,318,598	$	2,251,963

(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.