Segment Information

6 Months Ended

Mar. 31, 2024

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 or 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				Six Months Ended
	March 31,				March 31,
in thousands	2024		2023		2024		2023
Revenue
West	$	347,338	$	330,413	$	584,431	$	605,228
East	111,844		120,071		186,621		206,261
Southeast	82,358		93,424		157,306		177,347
Total revenue	$	541,540	$	543,908	$	928,358	$	988,836

	Three Months Ended				Six Months Ended
	March 31,				March 31,
in thousands	2024		2023		2024		2023
Operating income
West	$	46,030	$	45,513	$	74,369	$	82,870
East	12,282		16,244		18,638		25,506
Southeast	10,953		11,517		20,093		22,196
Segment total	69,265		73,274		113,100		130,572
Corporate and unallocated(a)	(33,274)		(34,482)		(56,844)		(63,278)
Total operating income	$	35,991	$	38,792	$	56,256	$	67,294

(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.

Below operating income, we recognized a gain on sale of investment of $8.6 million during the three and six months ended March 31, 2024 within other income, net. We previously held a minority interest in a technology company specializing in digital marketing for new home communities, which was sold during the quarter ended March 31, 2024. In exchange for the previously held investment, we received cash in escrow along with a minority partnership interest in the acquiring company, which was recorded within other assets in our condensed consolidated balance sheets.

	Three Months Ended				Six Months Ended
	March 31,				March 31,
in thousands	2024		2023		2024		2023
Depreciation and amortization
West	$	2,452	$	1,939	$	3,763	$	3,544
East	406		388		615		661
Southeast	268		398		588		728
Segment total	3,126		2,725		4,966		4,933
Corporate and unallocated(a)	447		295		840		600
Total depreciation and amortization	$	3,573	$	3,020	$	5,806	$	5,533

(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:

	Six Months Ended
	March 31,
in thousands	2024		2023
Capital expenditures
West	$	6,873	$	3,086
East	865		1,239
Southeast	462		925
Corporate and unallocated	3,301		2,574
Total capital expenditures	$	11,501	$	7,824

The following table presents assets by segment as of March 31, 2024 and September 30, 2023:

in thousands	As of March 31, 2024		As of September 30, 2023
Assets
West	$	1,157,508	$	994,597
East	432,585		356,020
Southeast	372,324		320,430
Corporate and unallocated(a)	552,993		739,986
Total assets	$	2,515,410	$	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.