Inventory (Tables)

12 Months Ended

Sep. 30, 2014



(In thousands)	September 30, 2014		September 30, 2013
Homes under construction	$	282,095	$	262,476
Development projects in progress	786,768		578,453
Land held for future development	301,048		341,986
Land held for sale	51,672		31,331
Capitalized interest	87,619		52,562
Model homes	48,294		37,886
Total owned inventory	$	1,557,496	$	1,304,694

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 $426.1 million and $388.1 million at September 30, 2014 and 2013, respectively.



(In thousands)	Projects in Progress		Held for Future Development		Land Held for Sale		Total Owned Inventory
September 30, 2014
West Segment	$	462,508	$	260,898	$	10,026	$	733,432
East Segment	353,859		29,239		34,530		417,628
Southeast Segment	264,843		10,911		4,821		280,575
Unallocated & Other	123,566		—		2,295		125,861
Total	$	1,204,776	$	301,048	$	51,672	$	1,557,496
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 & 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 September 30, 2014, 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
Year Ended September 30, 2014
West	5	3	$	25,191	90.9	%
East (a)	1	—	—		—	%
Southeast	2	1	7,479		120.2	%
Unallocated	—	—	2,558		100.0	%
Total	8	4	$	35,228	97.8	%

Year Ended September 30, 2013
West	1	1	$	11,080	117.6	%
East	3	3	9,588		107.0	%
Southeast	1	1	5,257		128.6	%
Unallocated	—	—	1,755		100.0	%
Total	5	5	$	27,680	114.9	%

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	%

Summary of Discounted Cash Flow Analysis

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, 2014
West	2	180	$	4,948	$	14,379
East (a)	—	—	—		—
Southeast	—	—	—		—
Unallocated	—	—	373		—
Continuing Operations (a)	2	180	5,321		14,379
Discontinued Operations	—	—	—		—
Total (a)	2	180	$	5,321	$	14,379

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

(a) During the year ended September 30, 2014, we recorded an impairment charge of $0.1 million in our East segment. The community had less than 10 lots remaining to close at the time of the analysis and therefore, consistent with our policy, we did not prepare an undiscounted or discounted cash flow analysis related to this community.

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, 2014, 2013 and 2012:



	Fiscal Year Ended September 30,
(In thousands)	2014		2013		2012
Development projects and homes in process (Held for Development)
West	$	4,948	$	46	$	3,902
East	100		13		4,316
Southeast	—		—		796
Unallocated	373		—		473
Subtotal	$	5,421	$	59	$	9,487
Land Held for Sale
West	$	—	$	228	$	—
East	232		123		100
Southeast	28		1,778		208
Subtotal	$	260	$	2,129	$	308
Lot Option Abandonments
West	$	—	$	104	$	301
East	131		20		1,320
Southeast	2,495		321		792
Unallocated	—		—		2
Subtotal	$	2,626	$	445	$	2,415
Continuing Operations	$	8,307	$	2,633	$	12,210
Discontinued Operations
Held for Development	$	—	$	—	$	60
Land Held for Sale	—		17		503
Lot Option Abandonments	—		—		16
Subtotal	$	—	$	17	$	579
Total Company	$	8,307	$	2,650	$	12,789

Summary of Interests in Lot Option Agreements

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



(In thousands)	Deposits & Non-refundable Preacquisition Costs Incurred		Remaining Obligation		Land Not Owned - Under Option Agreements
As of September 30, 2014
Consolidated VIEs	$	941	$	2,916	$	3,857
Unconsolidated lot option agreements	42,588		417,618		—
Total lot option agreements	$	43,529	$	420,534	$	3,857
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