Inventory

3 Months Ended

Dec. 31, 2023

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. As of December 31, 2023, the Company determined that no communities were impaired, and no impairment charges were recorded during the three months ended December 31, 2023. There were $4.8 million of impairment charges recorded in the prior year quarter.

During the three months ended December 31, 2023, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $6.1 million compared to $22.7 million in the same period of fiscal 2023. Inventory impairments and land option charges are included in cost of sales in the consolidated statements of operations.