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Segment Information
 9 Months Ended
Jun. 30, 2016
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 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. 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 G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are described in Note 2 to the consolidated financial statements within our 2015 Annual Report.
The following tables contain our revenue, operating income (loss) and depreciation and amortization by segment for the periods presented:
 
Three Months Ended
 
Nine Months Ended
 
June 30,
 
June 30,
(In thousands)
2016
 
2015
 
2016
 
2015
Revenue
 
 
 
 
 
 
 
West
$
205,983

 
$
149,129

 
$
543,109

 
$
351,975

East
140,717

 
155,160

 
348,109

 
363,152

Southeast
113,237

 
125,149

 
298,775

 
279,434

Total revenue
$
459,937

 
$
429,438

 
$
1,189,993

 
$
994,561


 
Three Months Ended
 
Nine Months Ended
 
June 30,
 
June 30,
(In thousands)
2016
 
2015
 
2016
 
2015
Operating income
 
 
 
 
 
 
 
West
$
23,822

 
$
16,246

 
$
59,535

 
$
33,628

East
7,097

 
15,344

 
19,577

 
28,457

Southeast (a)
10,022

 
14,382

 
28,417

 
15,200

Segment total
40,941

 
45,972

 
107,529

 
77,285

Corporate and unallocated (b)
(24,632
)
 
(28,276
)
 
(79,042
)
 
(62,643
)
Total operating income
$
16,309

 
$
17,696

 
$
28,487

 
$
14,642


 
Three Months Ended
 
Nine Months Ended
 
June 30,
 
June 30,
(In thousands)
2016
 
2015
 
2016
 
2015
Depreciation and amortization
 
 
 
 
 
 
 
West
$
1,475

 
$
1,267

 
$
4,025

 
$
3,299

East
764

 
900

 
2,195

 
2,094

Southeast
603

 
793

 
1,599

 
1,817

Segment total
2,842

 
2,960

 
7,819

 
7,210

Corporate and unallocated (b)
545

 
537

 
1,615

 
1,409

Total depreciation and amortization
$
3,387

 
$
3,497

 
$
9,434

 
$
8,619

(a) Operating income for our Southeast segment for the nine months ended June 30, 2016 and 2015 was impacted by unexpected warranty costs related to the Florida stucco issues, net of expected insurance recoveries. This impact was a credit of $3.6 million in the current year period, and expense of $13.6 million in the prior year period.
(b) Corporate and unallocated operating loss includes amortization of capitalized interest; movement in capitalized indirects; 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. For the three and nine months ended June 30, 2016, the Corporate and unallocated operating loss includes a $15.5 million reduction in cost of sales resulting from an agreement entered into during the current quarter with our third-party insurer to resolve certain issues related to the extent of our insurance coverage (refer to Note 8).
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:
 
Nine Months Ended
 
June 30,
(In thousands)
2016
 
2015
Capital Expenditures
 
 
 
West
$
5,189

 
$
4,959

East
1,928

 
2,996

Southeast
2,323

 
2,653

Corporate and unallocated
278

 
1,822

Total capital expenditures
$
9,718

 
$
12,430

The following table contains our asset balance by segment as of June 30, 2016 and September 30, 2015:
(In thousands)
June 30, 2016
 
September 30, 2015
Assets
 
 
 
West
$
855,537

 
$
843,564

East
380,897

 
436,346

Southeast
365,610

 
317,295

Corporate and unallocated (a)
716,583

 
823,998

Total assets
$
2,318,627

 
$
2,421,203


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