Inventory (Tables)

3 Months Ended

Dec. 31, 2013



(In thousands)	December 31, 2013		September 30, 2013
Homes under construction	$	260,359	$	262,476
Development projects in progress	611,736		578,453
Land held for future development	338,512		341,986
Land held for sale	59,924		31,331
Capitalized interest	61,836		52,562
Model homes	42,620		37,886
Total owned inventory	$	1,374,987	$	1,304,694

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
December 31, 2013
West Segment	$	351,217	$	292,835	$	19,791	$	663,843
East Segment	320,416		25,491		29,337		375,244
Southeast Segment	212,435		20,186		8,501		241,122
Unallocated and Other	92,483		—		2,295		94,778
Total	$	976,551	$	338,512	$	59,924	$	1,374,987
September 30, 2013
West Segment	$	339,319	$	292,875	$	16,572	$	648,766
East Segment	331,894		25,491		3,833		361,218
Southeast Segment	178,624		23,620		8,208		210,452
Unallocated and Other	81,540		—		2,718		84,258
Total	$	931,377	$	341,986	$	31,331	$	1,304,694

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 December 31, 2013 and 2012. 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.



($ in thousands)		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 December 31, 2013
West	1	—	$	—	n/a
East	—	—	—		n/a
Southeast	—	—	—		n/a
Unallocated	—	—	—		n/a
Total	1	—	$	—	n/a
Quarter Ended December 31, 2012
West	—	—	$	—	n/a
East	3	3	9,588		107.0	%
Southeast	1	1	5,257		128.6	%
Unallocated	—	—	752		n/a
Total	4	4	$	15,597	114.0	%

Summary of Discounted Cash Flow Analysis

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 months ended December 31, 2013 and 2012, as applicable:



	Three Months Ended December 31,
(In thousands)	2013		2012
Development projects and homes in process (Held for Development)
West	$	—	$	46
East	—		13
Southeast	—		—
Unallocated	—		—
Subtotal	$	—	$	59
Land Held for Sale
West	$	—	$	—
East	31		—
Southeast	—		—
Subtotal	$	31	$	—
Lot Option Abandonments
West	$	—	$	74
East	—		22
Southeast	—		49
Unallocated	—		—
Subtotal	$	—	$	145
Continuing Operations	$	31	$	204
Discontinued Operations
Held for Development	$	—	$	—
Land Held for Sale	—		17
Lot Option Abandonments	—		—
Subtotal	$	—	$	17
Total Company	$	31	$	221

Summary of Interests in Lot Option Agreements

The following provides a summary of our interests in lot option agreements as of December 31, 2013 and September 30, 2013:



(In thousands)	Deposits & Non-refundable Preacquisition Costs Incurred		Remaining Obligation		Land Not Owned Under Option Agreements
As of December 31, 2013
Consolidated VIEs	$	4,604	$	3,147	$	7,751
Unconsolidated lot option agreements	39,697		358,897		—
Total lot option agreements	$	44,301	$	362,044	$	7,751
As of September 30, 2013
Consolidated VIEs	$	4,491	$	4,633	$	9,124
Unconsolidated lot option agreements	32,822		284,005		—
Total lot option agreements	$	37,313	$	288,638	$	9,124