Segment Information

6 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

We currently operate in 15 states which are grouped into three homebuilding segments based on geography. Revenues in our homebuilding segments are derived from the sale of homes which 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 the three reportable segments as follows:

West: Arizona, California, Nevada and Texas

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

Southeast: Florida, Georgia, North Carolina (Raleigh) and South Carolina

Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding, land sale and other revenues less home construction, land development and land sale expense, commission expense, depreciation and amortization and certain general and administrative expenses which are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are described in Note 1 to our consolidated financial statements in our 2014 Annual Report.

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

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2015		2014		2015		2014
Revenue
West	$	115,381	$	121,886	$	202,846	$	244,462
East	103,179		83,366		207,992		190,955
Southeast	80,799		64,769		154,285		127,774
Total revenue	$	299,359	$	270,021	$	565,123	$	563,191

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(In thousands)	2015			2014			2015			2014
Operating income (loss)
West	$	10,599		$	14,338		$	17,382		$	30,100
East	5,744			2,994			13,113			11,229
Southeast	7,051			4,162			818			9,790
Segment total	23,394			21,494			31,313			51,119
Corporate and unallocated (a)	(16,958		)	(15,877		)	(34,367		)	(33,970		)
Total operating income (loss)	$	6,436		$	5,617		$	(3,054	)	$	17,149

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2015		2014		2015		2014
Depreciation and amortization
West	$	1,265	$	1,304	$	2,032	$	2,686
East	526		556		1,194		1,248
Southeast	539		358		1,024		749
Segment total	2,330		2,218		4,250		4,683
Corporate and unallocated (a)	451		613		872		1,055
Depreciation and amortization - continuing operations	$	2,781	$	2,831	$	5,122	$	5,738

^(a) Corporate and unallocated operating loss includes amortization of capitalized interest and expenses related to numerous shared services functions including information technology, treasury, corporate finance, legal, branding and other national marketing costs that benefit all segments, the costs of which are not allocated to the operating segments reported above. Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by corporate functions that benefit all segments.

The following table contains our capital expenditures by segment for the periods presented:

	Six Months Ended
	March 31,
(In thousands)	2015		2014
Capital Expenditures
West	$	2,659	$	2,661
East	2,067		1,546
Southeast	1,899		1,022
Corporate and unallocated	853		1,412
Total capital expenditures	$	7,478	$	6,641

The following table contains our asset balance by segment as of March 31, 2015 and September 30, 2014:

(In thousands)	March 31, 2015		September 30, 2014
Assets
West	$	835,345	$	756,575
East	466,764		433,032
Southeast	336,106		299,215
Corporate and unallocated (a)	394,038		577,398
Total assets	$	2,032,253	$	2,066,220

^(a) Primarily consists of cash and cash equivalents, consolidated inventory not owned, deferred taxes, capitalized interest and other items that are not allocated to the segments.