Inventory

12 Months Ended

Sep. 30, 2020

Inventory Impairments and Land Option Cost Write-Offs [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. As of September 30, 2020, the Company performed detailed impairment evaluations of communities with a combined carrying value of $36.1 million and determined that no communities were impaired. Impairment charges during fiscal 2020, 2019 and 2018 were $1.7 million, $25.7 million and $11.8 million, respectively.

During fiscal 2020, 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 $22.1 million, $28.3 million and $14.1 million, respectively. Total inventory and land option charges for fiscal 2018 also included a charge of $24.5 million related to the settlement of an outstanding dispute associated with a land transaction. Inventory impairments and land option charges are included in cost of sales in the consolidated statements of operations.