Inventory (Tables)

12 Months Ended

Sep. 30, 2019

The components of our owned inventory are as follows as of September 30, 2019 and September 30, 2018:



in thousands	September 30, 2019		September 30, 2018
Homes under construction	$	507,542	$	476,752
Development projects in progress	738,201		907,793
Land held for future development	28,531		83,173
Land held for sale	12,662		7,781
Capitalized interest	136,565		144,645
Model homes	80,747		72,140
Total owned inventory	$	1,504,248	$	1,692,284

Schedule of total inventory by segment

Total owned inventory by reportable segment is presented in the table below as of September 30, 2019 and September 30, 2018:



in thousands	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
September 30, 2019
West Segment	$	723,094	$	3,483	$	5,160	$	731,737
East Segment	228,937		14,077		4,104		247,118
Southeast Segment	318,737		10,971		3,398		333,106
Corporate and unallocated ^(b)	192,287		—		—		192,287
Total	$	1,463,055	$	28,531	$	12,662	$	1,504,248
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

^(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 discounted cash flow analysis

The table below 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, 2019
West	9	839	$	92,912	$	69,449
Southeast	1	15	858		1,367
Corporate and unallocated ^(a)	—	—	16,260		14,166
Total	10	854	$	110,030	$	84,982
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

^(a) Amount represents the capitalized interest and indirect costs that were impaired. Capitalized interest and indirect costs are maintained within our Corporate and unallocated 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	2019		2018		2017
Projects in Progress:
West	$	92,912	$	—	$	1,625
Southeast	858		793		—
Corporate and unallocated ^(a)	16,260		212		68
Total impairment charges on projects in progress	$	110,030	$	1,005	$	1,693
Land Held for Sale:
West ^(b)	$	37,963	$	—	$	94
East	—		168		470
Southeast	—		3,218		—
Corporate and unallocated ^(a)	625		2,108		—
Total impairment charges on land held for sale	$	38,588	$	5,494	$	564
Abandonments:
East	$	—	$	—	$	188
Total abandonments charges	$	—	$	—	$	188
Total continuing operations	$	148,618	$	6,499	$	2,445
Discontinued Operations:
Land Held for Sale	$	—	$	450	$	—
Total discontinued operations	$	—	$	450	$	—
Total impairment and abandonment charges	$	148,618	$	6,949	$	2,445

^(a) Amount represents the capitalized interest and indirect costs that were impaired. Capitalized interest and indirect costs are maintained within our Corporate and unallocated segment.

^(b)Land held for sale impairments during the year ended September 30, 2019 related to six communities representing 732 lots in California that were impaired in the second quarter of fiscal 2019. Two of these parcels were sold in the fourth quarter of fiscal 2019 for amounts approximately equal to their carrying costs. While steps to initiate planned sales of our remaining land held for sale assets have been taken, the timing of completion of such asset dispositions is unknown.

Schedule of quantitative unobservable inputs for inventory impairment

The table below presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities impaired during the periods presented:



		Fiscal Year Ended September 30,
Unobservable Inputs		2019	2018			2017
Average selling price (in thousands)	$	350 - 615	$	356		$	405
Closings per community per month		1 - 4	1 - 6			1 - 4
Discount rate		14.7% - 16.8%	15.11		%	12.83		%

Schedule of interests in lot option agreements

The following table provides a summary of our interests in lot option agreements as of September 30, 2019 and September 30, 2018:



in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of September 30, 2019
Unconsolidated lot option agreements	$	78,202	$	389,705
As of September 30, 2018
Unconsolidated lot option agreements	$	72,191	$	383,150