Supplemental Guarantor Information

3 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor information

Supplemental Guarantor Information

As discussed in Note 7, our obligations to pay principal, premium, if any, and interest under certain debt 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, Term Loan 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 condensed consolidated financial statements separated by amounts related to the parent issuer, guarantor subsidiaries, non-guarantor subsidiaries and consolidating adjustments as of or for the periods presented.

Beazer Homes USA, Inc.

Unaudited Condensed Consolidating Balance Sheet Information

December 31, 2016

(In thousands)

	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	159,886	$	4,292	$	853	$	(6,408	)	$	158,623
Restricted cash	14,683		1,280		—		—			15,963
Accounts receivable (net of allowance of $350)	—		51,797		—		—			51,797
Income tax receivable	288		—		—		—			288
Owned inventory	—		1,618,544		—		—			1,618,544
Investments in unconsolidated entities	773		4,292		—		—			5,065
Deferred tax assets, net	312,666		—		—		—			312,666
Property and equipment, net	—		19,335		—		—			19,335
Investments in subsidiaries	713,629		—		—		(713,629		)	—
Intercompany	789,502		—		2,376		(791,878		)	—
Other assets	822		5,040		—		—			5,862
Total assets	$	1,992,249	$	1,704,580	$	3,229	$	(1,511,915	)	$	2,188,143
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	86,730	$	—	$	—		$	86,730
Other liabilities	25,014		96,345		352		—			121,711
Intercompany	2,376		795,910		—		(798,286		)	—
Total debt (net of premium and debt issuance costs)	1,321,640		14,843		—		—			1,336,483
Total liabilities	1,349,030		993,828		352		(798,286		)	1,544,924
Stockholders’ equity	643,219		710,752		2,877		(713,629		)	643,219
Total liabilities and stockholders’ equity	$	1,992,249	$	1,704,580	$	3,229	$	(1,511,915	)	$	2,188,143

Beazer Homes USA, Inc.

Unaudited Condensed Consolidating Balance Sheet Information

September 30, 2016

(In thousands)

	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	215,646	$	16,866	$	859	$	(4,500	)	$	228,871
Restricted cash	12,867		1,538		—		—			14,405
Accounts receivable (net of allowance of $354)	—		53,225		1		—			53,226
Income tax receivable	292		—		—		—			292
Owned inventory	—		1,569,279		—		—			1,569,279
Investments in unconsolidated entities	773		9,697		—		—			10,470
Deferred tax assets, net	309,955		—		—		—			309,955
Property and equipment, net	—		19,138		—		—			19,138
Investments in subsidiaries	701,931		—		—		(701,931		)	—
Intercompany	734,766		—		2,574		(737,340		)	—
Other assets	577		6,930		15		—			7,522
Total assets	$	1,976,807	$	1,676,673	$	3,449	$	(1,443,771	)	$	2,213,158
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	104,174	$	—	$	—		$	104,174
Other liabilities	11,315		122,561		377		—			134,253
Intercompany	2,574		739,266		—		(741,840		)	—
Total debt (net of premium and debt issuance costs)	1,320,065		11,813		—		—			1,331,878
Total liabilities	1,333,954		977,814		377		(741,840		)	1,570,305
Stockholders’ equity	642,853		698,859		3,072		(701,931		)	642,853
Total liabilities and stockholders’ equity	$	1,976,807	$	1,676,673	$	3,449	$	(1,443,771	)	$	2,213,158

Beazer Homes USA, Inc.

Unaudited Consolidating Statements of Income (Loss) and Unaudited Comprehensive Income (Loss)

(In thousands)

	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2016
Total revenue	$	—		$	339,241		$	36		$	(36	)	$	339,241
Home construction and land sales expenses	15,644			269,970			—			(36		)	285,578
Gross profit (loss)	(15,644		)	69,271			36			—			53,663
Commissions	—			13,323			—			—			13,323
General and administrative expenses	—			36,365			23			—			36,388
Depreciation and amortization	—			2,677			—			—			2,677
Operating income (loss)	(15,644		)	16,906			13			—			1,275
Equity in income of unconsolidated entities	—			22			—			—			22
Other (expense) income, net	(5,252		)	57			(1		)	—			(5,196		)
Income (loss) before income taxes	(20,896		)	16,985			12			—			(3,899		)
Expense (benefit) from income taxes	(7,569		)	5,025			4			—			(2,540		)
Equity in income of subsidiaries	11,968			—			—			(11,968		)	—
Income (loss) from continuing operations	(1,359		)	11,960			8			(11,968		)	(1,359		)
Loss from discontinued operations	(70		)	—			—			—			(70		)
Equity in loss of subsidiaries from discontinued operations	—			(67		)	(3		)	70			—
Net income (loss) and comprehensive income (loss)	$	(1,429	)	$	11,893		$	5		$	(11,898	)	$	(1,429	)
	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2015
Total revenue	$	—		$	344,449		$	73		$	(73	)	$	344,449
Home construction and land sales expenses	13,367			272,217			—			(73		)	285,511
Inventory impairments and abandonments	—			1,356			—			—			1,356
Gross profit (loss)	(13,367		)	70,876			73			—			57,582
Commissions	—			13,774			—			—			13,774
General and administrative expenses	—			31,642			27						31,669
Depreciation and amortization	—			2,991			—			—			2,991
Operating income (loss)	(13,367		)	22,469			46			—			9,148
Equity in income of unconsolidated entities	—			60			—			—			60
Loss on extinguishment of debt	(828		)	—			—			—			(828		)
Other (expense) income, net	(7,432		)	868			(1		)	—			(6,565		)
Income (loss) before income taxes	(21,627		)	23,397			45			—			1,815
Expense (benefit) from income taxes	(10,143		)	10,742			17			—			616
Equity in income of subsidiaries	12,683			—			—			(12,683		)	—
Income from continuing operations	1,199			12,655			28			(12,683		)	1,199
Loss from discontinued operations	—			(197		)	(3		)	—			(200		)
Equity in loss of subsidiaries from discontinued operations	(200		)	—			—			200			—
Net income and comprehensive income	$	999		$	12,458		$	25		$	(12,483	)	$	999

Beazer Homes USA, Inc.

Unaudited Condensed Consolidating Statements of Cash Flow Information

(In thousands)

	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2016
Net cash used in operating activities	$	(2,902	)	$	(59,928	)	$	(4	)	$	—		$	(62,834	)
Cash flows from investing activities:
Capital expenditures	—			(2,874		)	—			—			(2,874		)
Proceeds from sale of fixed assets	—			46			—			—			46
Investments in unconsolidated entities	—			(1,397		)	—			—			(1,397		)
Return of capital from unconsolidated entities	—			1,621			—			—			1,621
Increases in restricted cash	(1,817		)	(1,829		)	—			—			(3,646		)
Decreases in restricted cash	—			2,088			—			—			2,088
Advances to/from subsidiaries	(50,314		)	—			—			50,314			—
Net cash used in investing activities	(52,131		)	(2,345		)	—			50,314			(4,162		)
Cash flows from financing activities:
Repayment of debt	—			(2,525		)	—			—			(2,525		)
Debt issuance costs	(340		)	—			—			—			(340		)
Advances to/from subsidiaries	—			52,224			(2		)	(52,222		)	—
Other financing activities	(387		)	—			—			—			(387		)
Net cash (used in) provided by financing activities	(727		)	49,699			(2		)	(52,222		)	(3,252		)
Decrease in cash and cash equivalents	(55,760		)	(12,574		)	(6		)	(1,908		)	(70,248		)
Cash and cash equivalents at beginning of period	215,646			16,866			859			(4,500		)	228,871
Cash and cash equivalents at end of period	$	159,886		$	4,292		$	853		$	(6,408	)	$	158,623
	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2015
Net cash used in operating activities	$	(22,794	)	$	(55,038	)	$	(17	)	$	—		$	(77,849	)
Cash flows from investing activities:
Capital expenditures	—			(2,663		)	—			—			(2,663		)
Proceeds from sale of fixed assets	—			2,437			—			—			2,437
Investments in unconsolidated entities	—			(1,779		)	—			—			(1,779		)
Return of capital from unconsolidated entities	—			1,142			—			—			1,142
Increases in restricted cash	—			(1,119		)	—			—			(1,119		)
Decreases in restricted cash	—			669			—			—			669
Advances to/from subsidiaries	(33,119		)	—			—			33,119			—
Net cash used in investing activities	(33,119		)	(1,313		)	—			33,119			(1,313		)
Cash flows from financing activities:
Repayment of debt	(22,875		)	(4,051		)	—			—			(26,926		)
Debt issuance costs	(413		)	—			—			—			(413		)
Advances to/from subsidiaries	—			38,312			(1		)	(38,311		)	—
Other financing activities	(201		)	—			—			—			(201		)
Net cash (used in) provided by financing activities	(23,489		)	34,261			(1		)	(38,311		)	(27,540		)
Decrease in cash and cash equivalents	(79,402		)	(22,090		)	(18		)	(5,192		)	(106,702		)
Cash and cash equivalents at beginning of period	232,226			21,543			1,006			(3,192		)	251,583
Cash and cash equivalents at end of period	$	152,824		$	(547	)	$	988		$	(8,384	)	$	144,881