Inventory (Tables)

9 Months Ended

Jun. 30, 2015

The components of our owned inventory are as follows as of June 30, 2015 and September 30, 2014:



(In thousands)	June 30, 2015		September 30, 2014
Homes under construction	$	508,853	$	282,095
Development projects in progress	792,662		786,768
Land held for future development	270,619		301,048
Land held for sale	56,203		51,672
Capitalized interest	123,712		87,619
Model homes	70,041		48,294
Total owned inventory	$	1,822,090	$	1,557,496

Schedule of Total Owned Inventory, by Segment

Total owned inventory, by reportable segment, is presented in the table below as of June 30, 2015 and September 30, 2014:



(In thousands)	Projects in Progress ^(a)			Land Held for Future Development		Land Held for Sale		Total Owned Inventory
June 30, 2015
West Segment	$	626,772		$	230,481	$	8,268	$	865,521
East Segment	392,716			29,215		32,057		453,988
Southeast Segment	303,225			10,923		14,778		328,926
Corporate and unallocated	172,555		^(b)	—		1,100		173,655
Total	$	1,495,268		$	270,619	$	56,203	$	1,822,090
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
Corporate and unallocated	123,566		^(b)	—		2,295		125,861
Total	$	1,204,776		$	301,048	$	51,672	$	1,557,496

^(a) Projects in progress include homes under construction, development projects in progress, capitalized interest, and model home categories from the preceding table.

^(b)Includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated.

Recoverability Schedule of Inventory Assets Held for Development, by Reportable Segment

The following table represent the results, by reportable segment, of our community level review of the recoverability of our inventory assets related to projects in progress as of June 30, 2014:



(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	%
Southeast	1	—	—		—	%
Total	4	2

Schedule of Inventory Impairments and Lot Option Abandonment Charges, by Reportable Homebuilding Segment

The following table presents, by reportable homebuilding segment, our land held for sale inventory impairments and lot option abandonment charges for the periods presented:




	Three Months Ended June 30,				Nine Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Land Held for Sale
East	$	249	$	201	$	249	$	232
Southeast	—		—		—		28
Subtotal	$	249	$	201	$	249	$	260
Lot Option Abandonments
East	$	—	$	156	$	—	$	156
Southeast	—		1,653		—		2,505
Subtotal	—		1,809		—		2,661
Total Company	$	249	$	2,010	$	249	$	2,921

Summary of Interests in Lot Option Agreements

The following provides a summary of our interests in lot option agreements as of June 30, 2015 and September 30, 2014:



(In thousands)	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation		Land Not Owned Under Option Agreements
As of June 30, 2015
Unconsolidated lot option agreements	$	51,971	$	448,809	N/A ^(a)
Total lot option agreements	$	51,971	$	448,809	$	—
As of September 30, 2014
Consolidated VIEs	$	941	$	2,916	$	3,857
Unconsolidated lot option agreements	42,588		417,618		N/A
Total lot option agreements	$	43,529	$	420,534	$	3,857

^(a) N/A - not applicable.