Supplemental Guarantor Information

9 Months Ended

Jun. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor information

Supplemental Guarantor Information

As discussed in Note 8, our obligations to pay principal, premium, if any, and interest under certain debt issuances are guaranteed on a joint and several basis by substantially all of our subsidiaries. Certain of our immaterial subsidiaries do not guarantee our Senior Notes or the Facility. The guarantees are full and unconditional and the guarantor subsidiaries are 100% owned by Beazer Homes USA, Inc. The following unaudited financial information presents the line items of our unaudited consolidated financial statements separated by amounts related to our parent company, guarantor subsidiaries, non-guarantor subsidiaries, and consolidating adjustments as of or for the periods presented.

Beazer Homes USA, Inc.

Unaudited Consolidating Balance Sheet Information

June 30, 2015

(In thousands)

	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	112,142	$	17,881	$	970	$	(2,241	)	$	128,752
Restricted cash	36,221		1,590		—		—			37,811
Accounts receivable (net of allowance of $1,292)	—		44,878		4		—			44,882
Income tax receivable	262		—		—		—			262
Owned inventory	—		1,822,090		—		—			1,822,090
Investments in unconsolidated entities and marketable securities	773		10,634		—		—			11,407
Deferred tax assets, net	46		—		—		—			46
Property and equipment, net	—		22,683		—		—			22,683
Investments in subsidiaries	275,514		—		—		(275,514		)	—
Intercompany	1,385,184		—		2,381		(1,387,565		)	—
Other assets	13,643		8,506		90		—			22,239
Total assets	$	1,823,785	$	1,928,262	$	3,445	$	(1,665,320	)	$	2,090,172
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	127,063	$	—	$	—		$	127,063
Other liabilities	20,758		114,924		610		—			136,292
Intercompany	—		1,389,806		—		(1,389,806		)	—
Total debt (net of discounts of $3,829)	1,530,417		23,790		—		—			1,554,207
Total liabilities	1,551,175		1,655,583		610		(1,389,806		)	1,817,562
Stockholders’ equity	272,610		272,679		2,835		(275,514		)	272,610
Total liabilities and stockholders’ equity	$	1,823,785	$	1,928,262	$	3,445	$	(1,665,320	)	$	2,090,172

Beazer Homes USA, Inc.

Unaudited Consolidating Balance Sheet Information

September 30, 2014

(In thousands)

	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	301,980	$	22,034	$	1,614	$	(1,474	)	$	324,154
Restricted cash	61,945		996		—		—			62,941
Accounts receivable (net of allowance of $1,245)	—		34,428		1		—			34,429
Income tax receivable	46		—		—		—			46
Owned inventory	—		1,557,496		—		—			1,557,496
Consolidated inventory not owned	—		3,857		—		—			3,857
Investments in marketable securities and unconsolidated entities	773		37,568		—		—			38,341
Deferred tax assets, net	2,823		—		—		—			2,823
Property and equipment, net	—		18,673		—		—			18,673
Investments in subsidiaries	253,540		—		—		(253,540		)	—
Intercompany	1,195,349		—		2,405		(1,197,754		)	—
Other assets	17,226		6,144		90		—			23,460
Total assets	$	1,833,682	$	1,681,196	$	4,110	$	(1,452,768	)	$	2,066,220
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	106,237	$	—	$	—		$	106,237
Other liabilities	38,871		102,833		812		—			142,516
Intercompany	2,405		1,196,823		—		(1,199,228		)	—
Obligations related to land not owned under option agreements	—		2,916		—		—			2,916
Total debt (net of discounts of $4,399)	1,513,288		22,145		—		—			1,535,433
Total liabilities	1,554,564		1,430,954		812		(1,199,228		)	1,787,102
Stockholders’ equity	279,118		250,242		3,298		(253,540		)	279,118
Total liabilities and stockholders’ equity	$	1,833,682	$	1,681,196	$	4,110	$	(1,452,768	)	$	2,066,220

Beazer Homes USA, Inc.

Unaudited Consolidating Statements of Income and Unaudited Comprehensive Income

(In thousands)

	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended June 30, 2015
Total revenue	$	—		$	429,438		$	33		$	(33	)	$	429,438
Home construction and land sales expenses	13,548			339,566			—			(33		)	353,081
Inventory impairments and option contract abandonments	—			249			—			—			249
Gross (loss) profit	(13,548		)	89,623			33			—			76,108
Commissions	—			17,246			—			—			17,246
General and administrative expenses	—			37,641			28			—			37,669
Depreciation and amortization	—			3,497			—			—			3,497
Operating (loss) income	(13,548		)	31,239			5			—			17,696
Equity in income of unconsolidated entities	—			153			—			—			153
Other (expense) income, net	(5,955		)	193			(1		)	—			(5,763		)
(Loss) income before income taxes	(19,503		)	31,585			4			—			12,086
(Benefit from) provision for income taxes	(7,204		)	7,067			2			—			(135		)
Equity in income of subsidiaries	24,520			—			—			(24,520		)	—
Income (loss) from continuing operations	12,221			24,518			2			(24,520		)	12,221
Loss from discontinued operations	—			(43		)	(3		)	—			(46		)
Equity in loss of subsidiaries from discontinued operations	(46		)	—			—			46			—
Net income (loss) and comprehensive income (loss)	$	12,175		$	24,475		$	(1	)	$	(24,474	)	$	12,175
	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended June 30, 2014
Total revenue	$	—		$	354,671		$	100		$	(100	)	$	354,671
Home construction and land sales expenses	9,430			274,527			—			(100		)	283,857
Inventory impairments and option contract abandonments	—			2,010			—			—			2,010
Gross (loss) profit	(9,430		)	78,134			100			—			68,804
Commissions	—			14,322			—			—			14,322
General and administrative expenses	—			35,967			27			—			35,994
Depreciation and amortization	—			3,400			—			—			3,400
Operating (loss) income	(9,430		)	24,445			73			—			15,088
Equity in loss of unconsolidated entities	—			(81		)	—			—			(81		)
Loss on extinguishment of debt	(19,764		)	—			—			—			(19,764		)
Other (expense) income, net	(10,421		)	216			—			—			(10,205		)
(Loss) income before income taxes	(39,615		)	24,580			73			—			(14,962		)
(Benefit from) provision for income taxes	(4,730		)	2,935			26			—			(1,769		)
Equity in income of subsidiaries	21,692			—			—			(21,692		)	—
(Loss) income from continuing operations	(13,193		)	21,645			47			(21,692		)	(13,193		)
Income (loss) from discontinued operations	—			842			(4		)	—			838
Equity in income of subsidiaries from discontinued operations	838			—			—			(838		)	—
Net (loss) income and comprehensive (loss) income	$	(12,355	)	$	22,487		$	43		$	(22,530	)	$	(12,355	)

Beazer Homes USA, Inc.

Unaudited Consolidating Statements of Income and Unaudited Comprehensive Income

(In thousands)

	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2015
Total revenue	$	—		$	994,561		$	165		$	(165	)	$	994,561
Home construction and land sales expenses	31,524			797,714			—			(165		)	829,073
Inventory impairments and option contract abandonments	—			249			—			—			249
Gross (loss) profit	(31,524		)	196,598			165			—			165,239
Commissions	—			40,141			—			—			40,141
General and administrative expenses	—			101,749			88			—			101,837
Depreciation and amortization	—			8,619			—			—			8,619
Operating (loss) income	(31,524		)	46,089			77			—			14,642
Equity in income of unconsolidated entities	—			377			—			—			377
Other (expense) income, net	(23,396		)	(270		)	(4		)	—			(23,670		)
(Loss) income before income taxes	(54,920		)	46,196			73			—			(8,651		)
(Benefit from) provision for income taxes	(20,286		)	19,533			27			—			(726		)
Equity in income of subsidiaries	26,709			—			—			(26,709		)	—
(Loss) income from continuing operations	(7,925		)	26,663			46			(26,709		)	(7,925		)
Loss from discontinued operations	—			(4,226		)	(10		)	—			(4,236		)
Equity in loss of subsidiaries from discontinued operations	(4,236		)	—			—			4,236			—
Net (loss) income	$	(12,161	)	$	22,437		$	36		$	(22,473	)	$	(12,161	)
Change in unrealized loss related to available-for-sale securities	1,276			—			—			—			1,276
Comprehensive (loss) income	$	(10,885	)	$	22,437		$	36		$	(22,473	)	$	(10,885	)
	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2014
Total revenue	$	—		$	917,862		$	279		$	(279	)	$	917,862
Home construction and land sales expenses	23,944			715,630			—			(279		)	739,295
Inventory impairments and option contract abandonments	—			2,921			—			—			2,921
Gross (loss) profit	(23,944		)	199,311			279			—			175,646
Commissions	—			37,239			—			—			37,239
General and administrative expenses	—			96,944			88			—			97,032
Depreciation and amortization	—			9,138			—			—			9,138
Operating (loss) income	(23,944		)	55,990			191			—			32,237
Equity in income of unconsolidated entities	—			221			—			—			221
Loss on extinguishment of debt	(19,917		)	—			—			—			(19,917		)
Other (expense) income, net	(41,112		)	1,427			(4		)	—			(39,689		)
(Loss) income before income taxes	(84,973		)	57,638			187			—			(27,148		)
(Benefit from) provision for income taxes	(4,928		)	3,079			66			—			(1,783		)
Equity in income of subsidiaries	54,680			—			—			(54,680		)	—
(Loss) income from continuing operations	(25,365		)	54,559			121			(54,680		)	(25,365		)
Loss from discontinued operations	—			(88		)	(11		)	—			(99		)
Equity in loss of subsidiaries and discontinued operations	(99		)	—			—			99			—
Net (loss) income and comprehensive (loss) income	$	(25,464	)	$	54,471		$	110		$	(54,581	)	$	(25,464	)

Beazer Homes USA, Inc.

Unaudited Condensed Consolidating Statements of Cash Flow

(In thousands)

	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2015
Net cash used in operating activities	$	(55,814	)	$	(182,157	)	$	(169	)	$	—		$	(238,140	)
Cash flows from investing activities:
Capital expenditures	—			(11,756		)	—			—			(11,756		)
Investments in unconsolidated entities	—			(2,651		)	—			—			(2,651		)
Proceeds from sale of marketable securities and unconsolidated entities	—			24,245			—			—			24,245
Increases in restricted cash	(2,025		)	(1,781		)	—			—			(3,806		)
Decreases in restricted cash	27,750			1,186			—			—			28,936
Advances to/from subsidiaries	(169,563		)	—			25			169,538			—
Net cash (used in) provided by investing activities	(143,838		)	9,243			25			169,538			34,968
Cash flows from financing activities:
Repayment of debt	(10,390		)	(1,544		)	—			—			(11,934		)
Borrowings from credit facility	50,000			—			—			—			50,000
Repayment of borrowings from credit facility	(30,000		)	—			—			—			(30,000		)
Debt issuance costs	(126		)	—			—			—			(126		)
Dividends paid	500			—			(500		)	—			—
Advances to/from subsidiaries	—			170,305			—			(170,305		)	—
Other financing activities	(170		)	—			—			—			(170		)
Net cash provided by (used in) financing activities	9,814			168,761			(500		)	(170,305		)	7,770
Decrease in cash and cash equivalents	(189,838		)	(4,153		)	(644		)	(767		)	(195,402		)
Cash and cash equivalents at beginning of period	301,980			22,034			1,614			(1,474		)	324,154
Cash and cash equivalents at end of period	$	112,142		$	17,881		$	970		$	(2,241	)	$	128,752
	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2014
Net cash (used in) provided by operating activities	$	(90,773	)	$	(198,873	)	$	53		$	—		$	(289,593	)
Cash flows from investing activities:
Capital expenditures	—			(8,984		)	—			—			(8,984		)
Investments in unconsolidated entities	—			(4,567		)	—			—			(4,567		)
Return of capital from unconsolidated entities	—			187			—			—			187
Increases in restricted cash	(8,915		)	(1,166		)	—			—			(10,081		)
Decreases in restricted cash	39			1,057			—			—			1,096
Net cash used in investing activities	(8,876		)	(13,473		)	—			—			(22,349		)
Cash flows from financing activities:
Repayment of debt	(303,448		)	(1,637		)	—			—			(305,085		)
Proceeds from issuance of new debt	325,000			—			—			—			325,000
Debt issuance costs	(5,504		)	—			—			—			(5,504		)
Advances to/from subsidiaries	(214,598		)	216,882			(50		)	(2,234		)	—
Other financing activities	(446		)	—			—			—			(446		)
Net cash (used in) provided by financing activities	(198,996		)	215,245			(50		)	(2,234		)	13,965
Decrease in cash and cash equivalents	(298,645		)	2,899			3			(2,234		)	(297,977		)
Cash and cash equivalents at beginning of period	499,341			6,324			1,637			(2,843		)	504,459
Cash and cash equivalents at end of period	$	200,696		$	9,223		$	1,640		$	(5,077	)	$	206,482