Inventory (Tables)

12 Months Ended

Sep. 30, 2018

The components of our owned inventory are as follows as of September 30, 2018 and September 30, 2017:



(In thousands)	September 30, 2018		September 30, 2017
Homes under construction	$	476,752	$	419,312
Development projects in progress	907,793		785,777
Land held for future development	83,173		112,565
Land held for sale	7,781		17,759
Capitalized interest	144,645		139,203
Model homes	72,140		68,191
Total owned inventory	$	1,692,284	$	1,542,807

Schedule of total inventory by segment

Total owned inventory by reportable segment is presented in the table below as of September 30, 2018 and September 30, 2017:



(In thousands)	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
September 30, 2018
West Segment	$	763,453	$	58,125	$	—	$	821,578
East Segment	280,761		14,077		4,580		299,418
Southeast Segment	358,126		10,971		3,177		372,274
Corporate and unallocated ^(b)	198,990		—		24		199,014
Total	$	1,601,330	$	83,173	$	7,781	$	1,692,284
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

^(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 analyses by reportable segment, where applicable, for the periods ended September 30, 2018 and 2017 (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, 2018
West	2	—	$	—	—	%
Southeast	2	2	4,360		99.0	%
Corporate and unallocated ^(e)	—	—	1,307		N/A ^(f)
Total	4	2	$	5,667
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

^(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.

^(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 of the impairment charges taken on projects in progress for the periods presented:



($ 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, 2018
Southeast	1	25	$	793	$	1,312
Corporate and unallocated ^(a)	—	—	212		—
Total	1	25	$	1,005	$	1,312
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:



	Fiscal Year Ended September 30,
Unobservable Inputs	2018			2017
Average selling price (in thousands)	$	356		$	405
Closings per community per month	1 - 6			1 - 4
Discount rate	15.11		%	12.83%

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)	2018		2017		2016
Projects in Progress:
West	$	—	$	1,625	$	6,729
East	—		—		5,894
Southeast	793		—		—
Corporate and unallocated ^(a)	212		68		1,101
Total impairment charges on projects in progress	$	1,005	$	1,693	$	13,724
Land Held for Sale:
West	$	—	$	94	$	119
East	168		470		280
Southeast	3,218		—		371
Corporate and unallocated ^(a)	2,108		—		—
Total impairment charges on land held for sale	$	5,494	$	564	$	770
Abandonments:
East	$	—	$	188	$	—
Southeast	—		—		788
Total abandonments charges	$	—	$	188	$	788
Total continuing operations	$	6,499	$	2,445	$	15,282
Discontinued Operations:
Land Held for Sale	$	450	$	—	$	—
Total discontinued operations	$	450	$	—	$	—
Total impairment and abandonment charges	$	6,949	$	2,445	$	15,282

^(a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment.

Summary of interests in lot option agreements

The following table provides a summary of our interests in lot option agreements as of September 30, 2018 and September 30, 2017:



(In thousands)	Deposits & Non-refundable Preacquisition Costs Incurred		Remaining Obligation
As of September 30, 2018
Unconsolidated lot option agreements	$	72,191	$	383,150
As of September 30, 2017
Unconsolidated lot option agreements	$	91,854	$	408,300