Inventory (Tables)

12 Months Ended

Sep. 30, 2017

The components of our owned inventory are as follows as of September 30, 2017 and September 30, 2016:



(In thousands)	September 30, 2017		September 30, 2016
Homes under construction	$	419,312	$	377,191
Development projects in progress	785,777		742,417
Land held for future development	112,565		213,006
Land held for sale	17,759		29,696
Capitalized interest	139,203		138,108
Model homes	68,191		68,861
Total owned inventory	$	1,542,807	$	1,569,279

Schedule of total inventory by segment

Total owned inventory, by reportable segment, is presented in the table below as of September 30, 2017 and September 30, 2016:



(In thousands)	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
September 30, 2017
West Segment	$	673,828	$	87,231	$	3,848	$	764,907
East Segment	250,002		14,391		11,578		275,971
Southeast Segment	301,268		10,943		1,233		313,444
Corporate and unallocated ^(b)	187,385		—		1,100		188,485
Total	$	1,412,483	$	112,565	$	17,759	$	1,542,807
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

^(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 our Corporate and unallocated segment. 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, 2017 and 2016 (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, 2017
West	4	2	$	15,801	94.4	%
Southeast	2	—	—		—	%
Corporate and unallocated ^(e)	—	—	3,337		N/A ^(f)
Total	6	2	$	19,138
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

^(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 ten closings remaining.

^(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 the 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.

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, 2017
West	1	46	$	1,625	$	3,791
Corporate and unallocated ^(a)	—	—	68		—
Total	1	46	$	1,693	$	3,791
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

^(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	2017	2016
Average selling price (in thousands) ^(a)	$405	$355 - $560
Closings per community per month	1 - 4	2 - 4
Discount rate	12.83%	14.15% - 15.33%

^(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)	2017		2016		2015
Projects in Progress:
West	$	1,625	$	6,729	$	—
East	—		5,894		—
Corporate and unallocated ^(a)	68		1,101		—
Total impairment charges on projects in progress	$	1,693	$	13,724	$	—
Land Held for Sale:
West	$	94	$	119	$	—
East	470		280		1,433
Southeast	—		371		—
Total impairment charges on land held for sale	$	564	$	770	$	1,433
Abandonments:
East	$	188	$	—	$	1,676
Southeast	—		788		—
Total abandonments charges	$	188	$	788	$	1,676
Total impairment and abandonment charges	$	2,445	$	15,282	$	3,109

Summary of interests in lot option agreements

The following table provides a summary of our interests in lot option agreements as of September 30, 2017 and September 30, 2016:



(In thousands)	Deposits & Non-refundable Preacquisition Costs Incurred		Remaining Obligation
As of September 30, 2017
Unconsolidated lot option agreements	$	91,854	$	408,300
As of September 30, 2016
Unconsolidated lot option agreements	$	80,433	$	446,414