Supplemental Guarantor Information

9 Months Ended

Jun. 30, 2017

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 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

June 30, 2017

(In thousands)

	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	169,331	$	5,540	$	878	$	(7,368	)	$	168,381
Restricted cash	11,348		1,387		—		—			12,735
Accounts receivable (net of allowance of $176)	—		39,814		2		—			39,816
Income tax receivable	380		—		—		—			380
Owned inventory	—		1,655,853		—		—			1,655,853
Investments in unconsolidated entities	773		3,077		—		—			3,850
Deferred tax assets, net	312,370		—		—		—			312,370
Property and equipment, net	—		18,658		—		—			18,658
Investments in subsidiaries	753,894		—		—		(753,894		)	—
Intercompany	749,285		—		2,352		(751,637		)	—
Other assets	667		8,900		15		—			9,582
Total assets	$	1,998,048	$	1,733,229	$	3,247	$	(1,512,899	)	$	2,221,625
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	119,408	$	—	$	—		$	119,408
Other liabilities	27,078		92,177		399		—			119,654
Intercompany	2,352		756,653		—		(759,005		)	—
Total debt (net of premium and debt issuance costs)	1,320,678		13,945		—		—			1,334,623
Total liabilities	1,350,108		982,183		399		(759,005		)	1,573,685
Stockholders’ equity	647,940		751,046		2,848		(753,894		)	647,940
Total liabilities and stockholders’ equity	$	1,998,048	$	1,733,229	$	3,247	$	(1,512,899	)	$	2,221,625

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 June 30, 2017
Total revenue	$	—		$	478,588		$	24		$	(24	)	$	478,588
Home construction and land sales expenses	21,895			377,804			—			(24		)	399,675
Inventory impairments and abandonments	—			470			—			—			470
Gross profit (loss)	(21,895		)	100,314			24			—			78,443
Commissions	—			18,773			—			—			18,773
General and administrative expenses	—			40,767			27			—			40,794
Depreciation and amortization	—			3,307			—			—			3,307
Operating income (loss)	(21,895		)	37,467			(3		)	—			15,569
Equity in income of unconsolidated entities	—			158			—			—			158
Other (expense) income, net	(2,934		)	71			(8		)	—			(2,871		)
Income (loss) before income taxes	(24,829		)	37,696			(11		)	—			12,856
Expense (benefit) from income taxes	(9,100		)	14,846			(4		)	—			5,742
Equity in income of subsidiaries	22,843			—			—			(22,843		)	—
Income (loss) from continuing operations	7,114			22,850			(7		)	(22,843		)	7,114
Income (loss) from discontinued operations	—			17			(8		)	—			9
Equity in income of subsidiaries from discontinued operations	9			—			—			(9		)	—
Net income (loss) and comprehensive income (loss)	$	7,123		$	22,867		$	(15	)	$	(22,852	)	$	7,123
	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended June 30, 2016
Total revenue	$	—		$	459,937		$	28		$	(28	)	$	459,937
Home construction and land sales expenses	20,080			350,315			—			(28		)	370,367
Inventory impairments and abandonments	626			11,291			—			—			11,917
Gross profit (loss)	(20,706		)	98,331			28			—			77,653
Commissions	—			17,500			—			—			17,500
General and administrative expenses	—			40,435			22			—			40,457
Depreciation and amortization	—			3,387			—			—			3,387
Operating income (loss)	(20,706		)	37,009			6			—			16,309
Equity in income of unconsolidated entities	—			62			—			—			62
Gain on extinguishment of debt	429			—			—			—			429
Other (expense) income, net	(5,406		)	63			(1		)	—			(5,344		)
Income (loss) before income taxes	(25,683		)	37,134			5			—			11,456
Expense (benefit) from income taxes	(12,533		)	17,880			2			—			5,349
Equity in income of subsidiaries	19,257			—			—			(19,257		)	—
Income from continuing operations	6,107			19,254			3			(19,257		)	6,107
Loss from discontinued operations	—			(322		)	(3		)	—			(325		)
Equity in loss of subsidiaries from discontinued operations	(325		)	—			—			325			—
Net income and comprehensive income	$	5,782		$	18,932		$	—		$	(18,932	)	$	5,782

	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2017
Total revenue	$	—		$	1,243,297		$	84		$	(84	)	$	1,243,297
Home construction and land sales expenses	57,358			985,767			—			(84		)	1,043,041
Inventory impairments and abandonments	—			752			—			—			752
Gross profit (loss)	(57,358		)	256,778			84			—			199,504
Commissions	—			48,728			—			—			48,728
General and administrative expenses	—			117,204			78			—			117,282
Depreciation and amortization	—			9,139			—			—			9,139
Operating income (loss)	(57,358		)	81,707			6			—			24,355
Equity in income of unconsolidated entities	—			213			—			—			213
Loss on extinguishment of debt	(15,563		)	—			—			—			(15,563		)
Other (expense) income, net	(12,231		)	241			(17		)	—			(12,007		)
Income (loss) before income taxes	(85,152		)	82,161			(11		)	—			(3,002		)
Expense (benefit) from income taxes	(31,148		)	29,890			(4		)	—			(1,262		)
Equity in income of subsidiaries	52,264			—			—			(52,264		)	—
Income (loss) from continuing operations	(1,740		)	52,271			(7		)	(52,264		)	(1,740		)
Loss from discontinued operations	—			(84		)	(17		)	—			(101		)
Equity in loss of subsidiaries from discontinued operations	(101		)	—			—			101			—
Net income (loss) and comprehensive income (loss)	$	(1,841	)	$	52,187		$	(24	)	$	(52,163	)	$	(1,841	)
	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2016
Total revenue	$	—		$	1,189,993		$	128		$	(128	)	$	1,189,993
Home construction and land sales expenses	49,520			930,702			—			(128		)	980,094
Inventory impairments and abandonments	710			14,388			—			—			15,098
Gross profit (loss)	(50,230		)	244,903			128			—			194,801
Commissions	—			45,856			—			—			45,856
General and administrative expenses	—			110,944			80			—			111,024
Depreciation and amortization	—			9,434			—			—			9,434
Operating income (loss)	(50,230		)	78,669			48			—			28,487
Equity in income of unconsolidated entities	—			71			—			—			71
Loss on extinguishment of debt	(2,030		)	—			—			—			(2,030		)
Other (expense) income, net	(19,471		)	1,006			(2		)	—			(18,467		)
Income (loss) before income taxes	(71,731		)	79,746			46			—			8,061
Expense (benefit) from income taxes	(34,592		)	36,642			17			—			2,067
Equity in income of subsidiaries	43,133			—			—			(43,133		)	—
Income from continuing operations	5,994			43,104			29			(43,133		)	5,994
Loss from discontinued operations	—			(437		)	(10		)	—			(447		)
Equity in loss of subsidiaries and discontinued operations	(447		)	—			—			447			—
Net income and comprehensive income	$	5,547		$	42,667		$	19		$	(42,686	)	$	5,547

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.
Nine Months Ended June 30, 2017
Net cash (used in) provided by operating activities	$	(40,966	)	$	1,061		$	(3	)	$	—		$	(39,908	)
Cash flows from investing activities:
Capital expenditures	—			(8,661		)	—			—			(8,661		)
Proceeds from sale of fixed assets	—			126			—			—			126
Investments in unconsolidated entities	—			(3,005		)	—			—			(3,005		)
Return of capital from unconsolidated entities	—			1,621			—			—			1,621
Increases in restricted cash	(3,428		)	(4,056		)	—			—			(7,484		)
Decreases in restricted cash	4,946			4,208			—			—			9,154
Advances to/from subsidiaries	1,293			—			22			(1,315		)	—
Net cash provided by (used in) investing activities	2,811			(9,767		)	22			(1,315		)	(8,249		)
Cash flows from financing activities:
Repayment of debt	(253,000		)	(4,173		)	—			—			(257,173		)
Proceeds from issuance of new debt	250,000			—			—			—			250,000
Repayment of borrowings from credit facility	(25,000		)	—			—			—			(25,000		)
Borrowings from credit facility	25,000			—			—			—			25,000
Debt issuance costs	(4,757		)	—			—			—			(4,757		)
Advances to/from subsidiaries	—			1,553			—			(1,553		)	—
Other financing activities	(403		)	—			—			—			(403		)
Net cash used in financing activities	(8,160		)	(2,620		)	—			(1,553		)	(12,333		)
Decrease in cash and cash equivalents	(46,315		)	(11,326		)	19			(2,868		)	(60,490		)
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	$	169,331		$	5,540		$	878		$	(7,368	)	$	168,381
	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2016
Net cash (used in) provided by operating activities	$	(50,272	)	$	19,547		$	(144	)	$	—		$	(30,869	)
Cash flows from investing activities:
Capital expenditures	—			(9,718		)	—			—			(9,718		)
Proceeds from sale of fixed assets	—			2,549			—			—			2,549
Investments in unconsolidated entities	—			(3,138		)	—			—			(3,138		)
Return of capital from unconsolidated entities	—			1,142			—			—			1,142
Increases in restricted cash	(2,292		)	(2,387		)	—			—			(4,679		)
Decreases in restricted cash	22,368			2,366			—			—			24,734
Advances to/from subsidiaries	26,409			—			—			(26,409		)	—
Net cash provided by (used in) investing activities	46,485			(9,186		)	—			(26,409		)	10,890
Cash flows from financing activities:
Repayment of debt	(233,429		)	(5,883		)	—			—			(239,312		)
Proceeds from issuance of new debt	137,900			—			—			—			137,900
Borrowings from credit facility	50,000			—			—			—			50,000
Repayment of borrowings from credit facility	(50,000		)	—			—			—			(50,000		)
Debt issuance costs	(2,545		)	—			—			—			(2,545		)
Advances to/from subsidiaries	—			(24,319		)	11			24,308			—
Other financing activities	(438		)	—			—			—			(438		)
Net cash (used in) provided by financing activities	(98,512		)	(30,202		)	11			24,308			(104,395		)
Decrease in cash and cash equivalents	(102,299		)	(19,841		)	(133		)	(2,101		)	(124,374		)
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	$	129,927		$	1,702		$	873		$	(5,293	)	$	127,209