Segment Information

12 Months Ended

Sep. 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, 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(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, 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.

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

	Fiscal Year Ended September 30,
in thousands	2023		2022		2021
Revenue
West	$	1,297,005	$	1,331,553	$	1,118,578
East	505,844		560,747		569,835
Southeast	403,936		424,688		451,890
Total revenue	$	2,206,785	$	2,316,988	$	2,140,303

	Fiscal Year Ended September 30,
in thousands	2023		2022		2021
Operating income
West	$	205,850	$	253,961	$	181,303
East	65,021		102,146		84,630
Southeast	57,326		68,726		57,581
Segment total	328,197		424,833		323,514
Corporate and unallocated(a)	(150,944)		(152,342)		(176,645)
Total operating income	$	177,253	$	272,491	$	146,869

(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.

	Fiscal Year Ended September 30,
in thousands	2023		2022		2021
Depreciation and amortization
West	$	7,550	$	8,178	$	7,250
East	1,662		1,649		2,207
Southeast	1,655		1,843		2,552
Segment total	10,867		11,670		12,009
Corporate and unallocated(a)	1,331		1,690		1,967
Total depreciation and amortization	$	12,198	$	13,360	$	13,976

(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:

	Fiscal Year Ended September 30,
in thousands	2023		2022		2021
Capital expenditures
West	$	9,909	$	7,755	$	6,924
East	2,578		1,208		1,549
Southeast	1,452		1,215		1,447
Corporate and unallocated	6,395		4,870		4,725
Total capital expenditures	$	20,334	$	15,048	$	14,645

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

in thousands	September 30, 2023		September 30, 2022
Assets
West	$	994,597	$	995,339
East	356,020		334,323
Southeast	320,430		305,443
Corporate and unallocated(a)	739,986		616,858
Total assets	$	2,411,033	$	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.