Inventory (Tables)

9 Months Ended

Jun. 30, 2014



(In thousands)	June 30, 2014		September 30, 2013
Homes under construction	$	384,795	$	262,476
Development projects in progress	690,557		578,453
Land held for future development	309,516		341,986
Land held for sale	74,365		31,331
Capitalized interest	84,083		52,562
Model homes	44,638		37,886
Total owned inventory	$	1,587,954	$	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
June 30, 2014
West Segment	$	442,694	$	262,481	$	19,192	$	724,367
East Segment	382,234		28,787		34,608		445,629
Southeast Segment	259,530		18,248		13,205		290,983
Unallocated and Other	119,615		—		7,360		126,975
Total	$	1,204,073	$	309,516	$	74,365	$	1,587,954
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 June 30, 2014
West	3	2	$	12,215	103.7	%
East	—	—	—		n/a
Southeast	1	—	—		n/a
Unallocated	—	—	—		n/a
Total	4	2	$	12,215	103.7	%

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, 2014 and 2013, as applicable:



	Three Months Ended June 30,				Nine Months Ended June 30,
(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	201		—		232		—
Southeast	—		—		28		1,778
Subtotal	$	201	$	—	$	260	$	1,778
Lot Option Abandonments
West	$	—	$	—	$	—	$	104
East	156		—		156		20
Southeast	1,653		—		2,505		268
Unallocated	—		—		—		—
Subtotal	$	1,809	$	—	$	2,661	$	392
Continuing Operations	$	2,010	$	—	$	2,921	$	2,229
Discontinued Operations
Held for Development	$	—	$	—	$	—	$	—
Land Held for Sale	—		—		—		17
Lot Option Abandonments	—		—		—		—
Subtotal	$	—	$	—	$	—	$	17
Total Company	$	2,010	$	—	$	2,921	$	2,246

Summary of Interests in Lot Option Agreements

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



(In thousands)	Deposits & Non-refundable Preacquisition Costs Incurred		Remaining Obligation		Land Not Owned Under Option Agreements
As of June 30, 2014
Consolidated VIEs	$	4,572	$	3,016	$	7,588
Unconsolidated lot option agreements	38,055		414,217		—
Total lot option agreements	$	42,627	$	417,233	$	7,588
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