Segment Information

3 Months Ended

Dec. 31, 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, land and lot sales, and our title operations. Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. We also provide title examinations for our homebuyers in certain markets. 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, land sales expense, title operations 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 2023 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	2023		2022
Revenue
West	$	237,093	$	274,815
East	74,777		86,190
Southeast	74,948		83,923
Total revenue	$	386,818	$	444,928

	Three Months Ended
	December 31,
in thousands	2023		2022
Operating income
West	$	28,339	$	37,357
East	6,356		9,262
Southeast	9,140		10,679
Segment total	43,835		57,298
Corporate and unallocated(a)	(23,570)		(28,796)
Total operating income	$	20,265	$	28,502

(a) Includes amortization of capitalized interest, capitalization and amortization of indirect costs, impairment of capitalized interest and capitalized indirect costs, when applicable, 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 certain other amounts that are not allocated to our operating segments.

	Three Months Ended
	December 31,
in thousands	2023		2022
Depreciation and amortization
West	$	1,311	$	1,605
East	209		273
Southeast	320		330
Segment total	1,840		2,208
Corporate and unallocated(a)	393		305
Total depreciation and amortization	$	2,233	$	2,513

(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:

	Three Months Ended
	December 31,
in thousands	2023		2022
Capital expenditures
West	$	3,600	$	1,510
East	369		533
Southeast	185		717
Corporate and unallocated	1,390		485
Total capital expenditures	$	5,544	$	3,245

The following table presents assets by segment as of December 31, 2023 and September 30, 2023:

in thousands	As of December 31, 2023		As of September 30, 2023
Assets
West	$	1,124,278	$	994,597
East	409,775		356,020
Southeast	342,053		320,430
Corporate and unallocated(a)	513,345		739,986
Total assets	$	2,389,451	$	2,411,033

(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.