Inventory (Tables)

6 Months Ended

Mar. 31, 2014



(In thousands)	March 31, 2014		September 30, 2013
Homes under construction	$	319,758	$	262,476
Development projects in progress	681,665		578,453
Land held for future development	306,119		341,986
Land held for sale	57,537		31,331
Capitalized interest	72,256		52,562
Model homes	43,025		37,886
Total owned inventory	$	1,480,360	$	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
March 31, 2014
West Segment	$	411,823	$	262,399	$	14,470	$	688,692
East Segment	359,553		25,496		30,453		415,502
Southeast Segment	236,496		18,224		10,319		265,039
Unallocated and Other	108,832		—		2,295		111,127
Total	$	1,116,704	$	306,119	$	57,537	$	1,480,360
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



($ 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 March 31, 2014
West	1	—	$	—	n/a
East	1	—	—		n/a
Southeast	2	1	7,478		107.9	%
Unallocated	—	—	—		n/a
Total	4	1	$	7,478	107.9	%
Quarter Ended March 31, 2013
West	—	—	$	—	n/a
East	1	—	—		n/a
Southeast	—	—	—		n/a
Unallocated	—	—	—		n/a
Total	1	—	$	—	n/a

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 six months ended March 31, 2014 and 2013, as applicable:



	Three Months Ended March 31,					Six Months Ended March 31,
(In thousands)	2014		2013			2014		2013
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	28		1,778			28		1,778
Subtotal	$	28	$	1,778		$	59	$	1,778
Lot Option Abandonments
West	$	—	$	30		$	—	$	104
East	—		(2		)	—		20
Southeast	852		219			852		268
Unallocated	—		—			—		—
Subtotal	$	852	$	247		$	852	$	392
Continuing Operations	$	880	$	2,025		$	911	$	2,229
Discontinued Operations
Held for Development	$	—	$	—		$	—	$	—
Land Held for Sale	—		—			—		17
Lot Option Abandonments	—		—			—		—
Subtotal	$	—	$	—		$	—	$	17
Total Company	$	880	$	2,025		$	911	$	2,246

Summary of Interests in Lot Option Agreements

The following provides a summary of our interests in lot option agreements as of March 31, 2014 and September 30, 2013:



(In thousands)	Deposits & Non-refundable Preacquisition Costs Incurred		Remaining Obligation		Land Not Owned Under Option Agreements
As of March 31, 2014
Consolidated VIEs	$	4,604	$	3,147	$	7,751
Unconsolidated lot option agreements	42,463		375,348		—
Total lot option agreements	$	47,067	$	378,495	$	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