Inventory

3 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

INVENTORY

INVENTORIES

At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land inventories for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. At December 31, 2019, the Company performed detailed impairment evaluations of communities and land inventories with a combined carrying value of $34.2 million and determined that no communities or land inventories were impaired. Accordingly, no impairment charges were recorded during the three months ended December 31, 2019 compared to $4.2 million of impairment charges recorded in the prior year period. Inventory impairments and the land option charges discussed below are included in cost of sales in the consolidated statements of operations.

During the three months ended December 31, 2019 and 2018, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $3.8 million in both periods.