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Inventory (Tables)
 12 Months Ended
Sep. 30, 2016
Real Estate [Abstract]  
Schedule of inventory
The components of our owned inventory are as follows as of September 30, 2016 and September 30, 2015:
(In thousands)
September 30, 2016
 
September 30, 2015
Homes under construction
$
377,191

 
$
377,281

Development projects in progress
742,417

 
809,900

Land held for future development
213,006

 
270,990

Land held for sale
29,696

 
44,555

Capitalized interest
138,108

 
123,457

Model homes
68,861

 
71,407

Total owned inventory
$
1,569,279

 
$
1,697,590
Schedule of total inventory by segment
Total owned inventory, by reportable segment, is presented in the table below as of September 30, 2016 and September 30, 2015:
(In thousands)
Projects in
Progress (a)
 
Land Held for Future
Development
 
Land Held
for Sale
 
Total Owned
Inventory
September 30, 2016
 
 
 
 
 
 
 
West Segment
$
586,420

 
$
172,015

 
$
6,577

 
$
765,012

East Segment
276,785

 
30,036

 
20,930

 
327,751

Southeast Segment
276,385

 
10,955

 
1,090

 
288,430

Corporate and unallocated (b)
186,987

 
—

 
1,099

 
188,086

Total
$
1,326,577

 
$
213,006

 
$
29,696

 
$
1,569,279

September 30, 2015
 
 
 
 
 
 
 
West Segment
$
583,210

 
$
230,778

 
$
6,941

 
$
820,929

East Segment
353,054

 
29,280

 
30,927

 
413,261

Southeast Segment
277,351

 
10,932

 
5,587

 
293,870

Corporate and unallocated (b)
168,430

 
—

 
1,100

 
169,530

Total
$
1,382,045

 
$
270,990

 
$
44,555

 
$
1,697,590


(a) Projects in progress include homes under construction, development projects in progress, capitalized interest and model home categories from the preceding table.
(b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within Corporate and unallocated. Land held for sale amount includes parcels held by our discontinued operations.
Schedule of inventory assets held for development by reportable segment
The table below summarizes the results of our undiscounted cash flow analysis by reportable segment, where applicable, for the periods ended September 30, 2016 and 2014 (the years that such analyses were required):
($ in thousands)
 
 
Undiscounted Cash Flow Analyses Prepared
Segment (a)
Number of
Communities
on Watch List (b)
 
Number of
Communities (c)
 
Pre-analysis
Book Value
(BV)
 
Aggregate Undiscounted Cash Flow as a % of BV (d)
Year Ended September 30, 2016
 
 
 
 
 
 
 
West
9

 
6

 
$
75,028

 
114.0
%
East
4

 
1

 
22,469

 
88.5
%
Southeast
1

 
—

 
—

 
—
%
Corporate and unallocated (e)
—

 
—

 
3,899

 
N/A (f)

Total
14

 
7

 
$
101,396

 
 
Year Ended September 30, 2014
 
 
 
 
 
 
 
West
5

 
3

 
$
25,191

 
90.9
%
East (g)
1

 
—

 
—

 
—
%
Southeast
2

 
1

 
7,479

 
120.2
%
Corporate and unallocated (e)
—

 
—

 
2,558

 
N/A

Total
8

 
4

 
$
35,228

 
 

(a) 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.
(b) Number of communities in this column excludes communities that are closing out and have less than 10 closings remaining. As of September 30, 2016, six of these communities still remain on our watch list.
(c) Number of communities in this column is lower than the number of communities on our watch list because it excludes communities due to certain qualitative considerations that would imply that the low profitability levels are temporary in nature.
(d) An aggregate undiscounted cash flow as a percentage of book value under 100% would indicate a possible impairment and is consistent with our "watch list" methodology. While this metric for the communities in the West segment was above 100% for the year ended September 30, 2016 in total, for the two communities that we ultimately impaired, the metric was below 100%, while the metric for communities we did not impair was above 100%.
(e) Amount represents capitalized interest and indirects balance related to communities for which an undiscounted cash flow analysis was prepared. Capitalized interest and indirects are maintained within our Corporate and unallocated segment.
(f) N/A - not applicable.
(g) During the year ended September 30, 2014, we recorded an impairment charge of $0.1 million in our East segment on a single community. The community had less than 10 lots remaining to close at the time of the analysis and therefore, consistent with our policy, we did not prepare an undiscounted or discounted cash flow analysis related to this community. However, the community is shown here to list all communities for which an impairment was eventually recorded.
Summary of discounted cash flow analysis
The following table presents, by reportable segment, details around the impairment charges taken on projects in progress for the periods presented (no impairment were recorded on projects in progress during our fiscal 2015):
($ 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 time of Impairment
Year Ended September 30, 2016
West
2

 
213

 
$
6,729

 
$
16,345

East
1

 
78

 
5,894

 
18,073

Corporate and unallocated (a)
—

 
—

 
1,101

 
—

Total
3

 
291

 
$
13,724

 
$
34,418

Year Ended September 30, 2014
 
 
 
West
2

 
180

 
$
4,948

 
$
14,379

Corporate and unallocated (a)
—

 
—

 
373

 
—

Total
2

 
180

 
$
5,321

 
$
14,379


(a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment.
Quantitative unobservable inputs for inventory impairment
The following table presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities we impaired during the periods presented (the years that such analyses were required):
 
 
Fiscal Year Ended September 30,
Unobservable Inputs
 
2016
 
2014
Average selling price (in thousands) (a)
 
$355 - $560
 
$260 - $280

Closings per community per month
 
2 - 4
 
1 - 4

Discount rate
 
14.15% - 15.33%
 
14.97
%
(a) For the fiscal year ended September 30, 2016, the lower end of this ASP range was related to the communities we impaired in our West segment, while the higher end of the ASP range was for the community we impaired in our East segment.
Schedule of inventory impairments and lot option abandonment charges,
The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented:
 
Fiscal Year Ended September 30,
(In thousands)
2016
 
2015
 
2014
Projects in Progress:
 
 
 
 
 
West
$
6,729

 
$
—

 
$
4,948

East
5,894

 
—

 
100

Corporate and unallocated
1,101

 
—

 
373

Total impairment charges on projects in progress
$
13,724

 
$
—

 
$
5,421

Land Held for Sale:
 
 
 
 
 
West
$
119

 
$
—

 
$
—

East
$
280

 
$
1,433

 
$
232

Southeast
371

 
—

 
28

Total impairment charges on land held for sale
$
770

 
$
1,433

 
$
260

Abandonments:
 
 
 
 
 
East
$
—

 
$
1,676

 
$
131

Southeast
788

 
—

 
2,495

Total abandonments charges
$
788

 
$
1,676

 
$
2,626

Total impairment and abandonment charges
$
15,282

 
$
3,109

 
$
8,307
Summary of interests in lot option agreements
The following table provides a summary of our interests in lot option agreements as of September 30, 2016 and September 30, 2015:
(In thousands)
Deposits &
Non-refundable
Preacquisition
Costs Incurred
 
Remaining
Obligation
As of September 30, 2016
 
 
 
Unconsolidated lot option agreements
$
80,433

 
$
446,414

As of September 30, 2015
 
 
 
Unconsolidated lot option agreements
$
51,475

 
$
420,070