Inventory (Tables)

9 Months Ended

Jun. 30, 2012



(In thousands)	June 30, 2012		September 30, 2011
Homes under construction	$	316,117	$	277,331
Development projects in progress	384,991		424,055
Land held for future development	386,353		384,761
Land held for sale	10,852		12,837
Capitalized interest	45,373		45,973
Model homes	43,131		47,423
Total owned inventory	$	1,186,817	$	1,192,380

Schedule of Total Owned Inventory, by Segment

Total owned inventory, by reportable segment, is set forth in the table below:



(In thousands)	Projects in Progress		Held for Future Development		Land Held for Sale		Total Owned Inventory
June 30, 2012
West Segment	$	284,805	$	318,349	$	2,592	$	605,746
East Segment	295,985		44,692		3,505		344,182
Southeast Segment	136,965		23,312		1,675		161,952
Unallocated & Other	71,857		—		3,080		74,937
Total	$	789,612	$	386,353	$	10,852	$	1,186,817
September 30, 2011
West Segment	$	294,208	$	318,732	$	2,681	$	615,621
East Segment	304,648		41,993		5,056		351,697
Southeast Segment	122,126		24,036		75		146,237
Unallocated & Other	73,800		—		5,025		78,825
Total	$	794,782	$	384,761	$	12,837	$	1,192,380

Recoverability Schedule of Inventory assets Held for Development, by Reportable Segment

The following tables represent the results, by reportable segment of our community level review of the recoverability of our inventory assets held for development as of June 30, 2012, and 2011 ($ in thousands). We have elected to aggregate our disclosure at the reportable segment level because we believe this level of disclosure is most meaningful to the readers of our financial statements. The aggregate undiscounted cash flow fair value as a percentage of book value for the communities represented below is consistent with our expectations given our “watch list” methodology.



		Undiscounted Cash Flow Analyses Prepared
Segment	# of Communities on Watch List	# of Communities	Pre-analysis Book Value (BV)		Aggregate Undiscounted Cash Flow as a % of BV
Quarter Ended June 30, 2012
West	5	1	$	6,196	81.3	%
East	4	1	7,144		57.1	%
Southeast	3	1	3,087		79.0	%
Unallocated	—	—	1,228		n/a
Total	12	3	$	17,655	72.4	%
Quarter Ended June 30, 2011
West	8	4	5,079		86.5	%
East	4	2	9,731		96.5	%
Southeast	1	1	5,259		44.0	%
Unallocated	—	—	1,564		n/a
Total	13	7	$	21,633	81.6	%

Summary of Discounted Cash Flow Analysis

The table below summarizes the results of our discounted cash flow analysis for the three and nine months ended June 30, 2012 and 2011. The impairment charges below include impairments taken as a result of these discounted cash flow analyses and also impairment charges recorded for individual homes sold and in backlog with net contribution margins below a minimum threshold of profitability in communities that were not otherwise impaired through our discounted cash flow analyses. The estimated fair value of the impaired inventory is determined immediately after a community’s impairment.



($ in thousands)	Communities Impaired As a Result of Discounted Cash Flow Analyses Prepared
Segment	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at Period End		# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at Period End
Quarter Ended June 30, 2012							Nine Months Ended June 30, 2012
West	1	65	$	1,590	$	4,680	2	116	$	3,788	$	11,058
East	1	68	3,122		4,050		2	93	3,809		7,342
Southeast	1	37	630		2,457		1	37	794		2,457
Unallocated	—	—	389		—		—	—	473		—
Continuing Operations	3	170	5,731		11,187		5	246	8,864		20,857
Discontinued Operations	—	—	42		—		—	—	60		—
Total	3	170	$	5,773	$	11,187	5	246	$	8,924	$	20,857

Quarter Ended June 30, 2011							Nine Months Ended June 30, 2011
West	4	153	$	1,571	$	4,223	9	831	$	17,556	$	31,924
East	1	41	759		5,637		1	41	988		5,637
Southeast	1	176	3,435		1,812		1	176	3,557		1,812
Unallocated	—	—	531		—		—	—	2,139		—
Continuing Operations	6	370	6,296		11,672		11	1,048	24,240		39,373
Discontinued Operations	—	—	—		—		—	—	215		—
Total	6	370	$	6,296	$	11,672	11	1,048	$	24,455	$	39,373

Schedule of Inventory Impairments and Lot Option Abandonment Charges, by Reportable Homebuilding Segment

The following table sets forth, by reportable homebuilding segment, the inventory impairments and lot option abandonment charges recorded for the three and nine months ended June 30, 2012 and 2011 (in thousands) :



	Quarter Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
Development projects and homes in process (Held for Development)
West	$	1,590	$	1,571	$	3,788	$	17,556
East	3,122		759		3,809		988
Southeast	630		3,435		794		3,557
Unallocated	389		531		473		2,139
Subtotal	$	5,731	$	6,296	$	8,864	$	24,240
Land Held for Sale
West	$	—	$	—	$	—	$	(51	)
East	—		—		—		—
Southeast	—		—		208		169
Subtotal	$	—	$	—	$	208	$	118
Lot Option Abandonments
West	$	19	$	32	$	191	$	116
East	10		462		574		595
Southeast	59		80		653		262
Unallocated	—		—		2		—
Subtotal	$	88	$	574	$	1,420	$	973
Continuing Operations	$	5,819	$	6,870	$	10,492	$	25,331
Discontinued Operations
Held for Development	$	42	$	—	$	60	$	215
Land Held for Sale	503		17		503		74
Lot Option Abandonments	—		2,477		16		2,525
Subtotal	$	545	$	2,494	$	579	$	2,814
Total Company	$	6,364	$	9,364	$	11,071	$	28,145

Summary of Interests in Lot Option Agreements

The following provides a summary of our interests in lot option agreements as of June 30, 2012 and September 30, 2011 (in thousands):



	Deposits & Non-refundable Preacquisition Costs Incurred		Remaining Obligation		Land Not Owned - Under Option Agreements
As of June 30, 2012
Consolidated VIEs	$	7,191	$	3,347	$	10,537
Other consolidated lot option agreements (a)	859		2,682		$	3,541
Unconsolidated lot option agreements	16,601		191,272		—
Total lot option agreements	$	24,651	$	197,301	$	14,078
As of September 30, 2011
Consolidated VIEs	$	6,201	$	1,214	$	7,415
Other consolidated lot option agreements (a)	164		4,175		4,338
Unconsolidated lot option agreements	13,732		219,841		—
Total lot option agreements	$	20,097	$	225,230	$	11,753


(a)	Represents lot option agreements with non-VIE entities that we have deemed to be “financing arrangements” pursuant to ASC 470-40, Product Financing Arrangements.