Inventory (Tables)

12 Months Ended

Sep. 30, 2012



(In thousands)	September 30, 2012		September 30, 2011
Homes under construction	$	251,828	$	277,331
Development projects in progress	391,019		424,055
Land held for future development	367,102		384,761
Land held for sale	10,149		12,837
Capitalized interest	38,190		45,973
Model homes	40,844		47,423
Total owned inventory	$	1,099,132	$	1,192,380

Schedule of Total Owned Inventory, by Segment

Total owned inventory, by reportable segment, is set forth in the table below. Inventory located in California, the state with our largest concentration of inventory, was $350.9 million and $367.8 million at September 30, 2012 and 2011, respectively



(In thousands)	Projects in Progress		Held for Future Development		Land Held for Sale		Total Owned Inventory
September 30, 2012
West Segment	$	261,239	$	318,351	$	2,553	$	582,143
East Segment	279,954		25,130		3,204		308,288
Southeast Segment	118,853		23,621		1,675		144,149
Unallocated & Other	61,835		—		2,717		64,552
Total	$	721,881	$	367,102	$	10,149	$	1,099,132
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 September 30, 2012, 2011, and 2010 ($ 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
Year Ended September 30, 2012
West	14	8	$	28,467	94.7	%
East	12	8	30,052		91.8	%
Southeast	5	3	9,247		116.5	%
Unallocated	—	—	5,193		100.0	%
Total	31	19	$	72,959	96.7	%

Year Ended Ended September 30, 2011
West	18	15	$	58,848	88.4	%
East	7	5	16,436		94.6	%
Southeast	4	3	11,017		60.3	%
Unallocated	1	—	9,707		100.0	%
Total	30	23	$	96,008	87.4	%

Year Ended September 30, 2010
West	20	20	$	80,270	90.8	%
East	12	10	43,655		79.7	%
Southeast	6	5	16,394		80.8	%
Discontinued Operations	5	5	7,882		93.8	%
Unallocated	—	—	13,728		100.0	%
Total	43	40	$	161,929	87.7	%

Summary of Discounted Cash Flow Analysis

The table below summarizes the results of our discounted cash flow analysis for the fiscal years ended September 30, 2012, 2011 and 2010. 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)	Results of Discounted Cash Flow Analyses Prepared
Segment	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at Period End
Year Ended September 30, 2012
West	2	116	$	3,902	$	11,058
East	2	93	4,316		7,342
Southeast	1	37	796		2,457
Unallocated	—	—	473		—
Continuing Operations	5	246	9,487		20,857
Discontinued Operations	—	—	60		—
Total	5	246	$	9,547	$	20,857

Year Ended Ended September 30, 2011
West	12	859	$	20,150	$	33,066
East	4	86	1,611		10,671
Southeast	3	278	5,182		6,022
Unallocated	—	—	2,362		—
Continuing Operations	19	1,223	29,305		49,759
Discontinued Operations	—	—	276		—
Total	19	1,223	$	29,581	$	49,759

Year Ended September 30, 2010
West	14	618	$	18,056	$	38,830
East	6	847	18,703		17,020
Southeast	5	362	7,510		10,984
Unallocated	—	—	3,404		—
Continuing Operations	25	1,827	47,673		66,834
Discontinued Operations	4	68	1,244		5,972
Total	29	1,895	$	48,917	$	72,806

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 fiscal years ended September 30, 2012, 2011, and 2010 (in thousands) :



	Fiscal Year Ended September 30,
	2012		2011			2010
Development projects and homes in process (Held for Development)
West	$	3,902	$	20,150		18,056
East	4,316		1,611			18,703
Southeast	796		5,182			7,510
Unallocated	473		2,362			3,404
Subtotal	$	9,487	$	29,305		$	47,673
Land Held for Sale
West	$	—	$	(51	)	1,061
East	100		193			—
Southeast	208		169			—
Subtotal	$	308	$	311		$	1,061
Lot Option Abandonments
West	$	301	$	405		783
East	1,320		2,048			35
Southeast	792		390			14
Unallocated	2		—			—
Subtotal	$	2,415	$	2,843		$	832
Continuing Operations	$	12,210	$	32,459		$	49,566
Discontinued Operations
Held for Development	$	60	$	276		1,244
Land Held for Sale	503		78			1,003
Lot Option Abandonments	16		2,552			26
Subtotal	$	579	$	2,906		$	2,273
Total Company	$	12,789	$	35,365		$	51,839

Summary of Interests in Lot Option Agreements

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



	Deposits & Non-refundable Preacquisition Costs Incurred		Remaining Obligation		Land Not Owned - Under Option Agreements
As of September 30, 2012
Consolidated VIEs	$	7,203	$	3,346	$	10,549
Other consolidated lot option agreements (a)	430		1,441		$	1,871
Unconsolidated lot option agreements	17,290		193,711		—
Total lot option agreements	$	24,923	$	198,498	$	12,420
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.