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

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 (loss). Operating income (loss) 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 2019 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	2020		2019		2020		2019
Revenue
West	$	267,731	$	210,430	$	522,129	$	419,374
East	110,941		94,066		188,981		182,812
Southeast	110,741		116,764		196,107		221,114
Total revenue	$	489,413	$	421,260	$	907,217	$	823,300



	Three Months Ended						Six Months Ended
	March 31,						March 31,
in thousands	2020			2019			2020			2019
Operating income (loss) ^(a)
West	$	33,223		$	(107,018	)	$	63,554		$	(82,757	)
East	11,513			6,929			16,834			12,324
Southeast	8,814			7,324			11,970			8,704
Segment total	53,550			(92,765		)	92,358			(61,729		)
Corporate and unallocated ^(b)	(37,126		)	(46,185		)	(71,988		)	(73,715		)
Total operating income (loss)	$	16,424		$	(138,950	)	$	20,370		$	(135,444	)



	Three Months Ended				Six Months Ended
	March 31,				March 31,
in thousands	2020		2019		2020		2019
Depreciation and amortization
West	$	1,851	$	1,263	$	3,659	$	2,541
East	551		547		1,105		1,085
Southeast	700		731		1,240		1,341
Segment total	3,102		2,541		6,004		4,967
Corporate and unallocated ^(b)	525		359		1,050		703
Total depreciation and amortization	$	3,627	$	2,900	$	7,054	$	5,670

^(a) Operating income (loss) is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5). For the three and six months ended March 31, 2019, we recognized $92.9 million inventory impairment charge related to nine communities within our West segment. For the six months ended March 31, 2019, we recognized $0.9 million inventory impairment charge related to one community within our Southeast segment.

^(b)Corporate and unallocated operating loss 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. Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. For the three and six months ended March 31, 2019, we wrote off $16.1 million capitalized interest and capitalized indirect costs associated with the nine impaired communities within our West segment. An additional $0.1 million capitalized interest and capitalized indirect costs were written off during the six months ended March 31, 2019 relating to the one impaired community within our Southeast segment.

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



	Six Months Ended
	March 31,
in thousands	2020		2019
Capital Expenditures
West	$	2,667	$	5,338
East	1,136		1,286
Southeast	1,310		2,055
Corporate and unallocated	365		2,829
Total capital expenditures	$	5,478	$	11,508

The following table presents assets by segment as of March 31, 2020 and September 30, 2019:



in thousands	March 31, 2020		September 30, 2019
Assets
West	$	780,130	$	751,110
East	308,095		286,340
Southeast	371,731		359,431
Corporate and unallocated ^(a)	779,039		560,763
Total assets	$	2,238,995	$	1,957,644

^(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.