ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer Identification no.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ¨ | ☒ | |||||||||
Non-accelerated filer | ¨ | Smaller reporting company | |||||||||
Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ | |||||||||||
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b) by the registered public accounting firm that prepared or issued its audit report. | |||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES |
Class | Outstanding at November 5, 2021 | |||||||
Common Stock, $0.001 par value |
Segment/State | Market(s) | |||||||
West: | ||||||||
Arizona | Phoenix | |||||||
California | Los Angeles County, Placer County, Riverside County, Sacramento County, San Bernardino County, San Diego County, Tulare County | |||||||
Nevada | Las Vegas | |||||||
Texas | Dallas/Ft. Worth, Houston | |||||||
East: | ||||||||
Indiana | Indianapolis | |||||||
Maryland/Delaware | Anne Arundel County, Baltimore County, Howard County, Sussex County | |||||||
Tennessee | Nashville | |||||||
Virginia | Arlington County, Fairfax County, Loudoun County, Prince William County, Stafford County | |||||||
Southeast: | ||||||||
Florida | Orlando, Tampa/St. Petersburg | |||||||
Georgia | Atlanta, Savannah | |||||||
North Carolina | Raleigh/Durham | |||||||
South Carolina | Charleston, Myrtle Beach |
Fiscal Year Ended September 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
($ in thousands) | Closings | Average Selling Price | Closings | Average Selling Price | Closings | Average Selling Price | |||||||||||||||||||||||||||||
West | 2,945 | $ | 377.0 | 3,206 | $ | 368.2 | 2,859 | $ | 354.3 | ||||||||||||||||||||||||||
East | 1,185 | 477.6 | 1,045 | 455.7 | 1,092 | 463.7 | |||||||||||||||||||||||||||||
Southeast | 1,157 | 390.2 | 1,241 | 370.8 | 1,549 | 360.2 | |||||||||||||||||||||||||||||
Total Company | 5,287 | $ | 402.4 | 5,492 | $ | 385.5 | 5,500 | $ | 377.7 | ||||||||||||||||||||||||||
As of September 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Units in Backlog | Dollar Value in Backlog (in millions) | Units in Backlog | Dollar Value in Backlog (in millions) | Units in Backlog | Dollar Value in Backlog (in millions) | ||||||||||||||||||||||||||||||
West | 1,653 | $ | 736.0 | 1,365 | $ | 493.7 | 982 | $ | 362.5 | ||||||||||||||||||||||||||
East | 611 | 302.0 | 624 | 301.1 | 341 | 155.1 | |||||||||||||||||||||||||||||
Southeast | 522 | 246.0 | 520 | 200.5 | 385 | 147.5 | |||||||||||||||||||||||||||||
Total Company | 2,786 | $ | 1,284.0 | 2,509 | $ | 995.3 | 1,708 | $ | 665.1 | ||||||||||||||||||||||||||
ASP in backlog (in thousands) | $ | 460.9 | $ | 396.7 | $ | 389.4 |
Lots Owned | |||||||||||||||||||||||||||||||||||||||||||||||
Lots with Homes Under Construction (a) | Finished Lots | Lots Under Development | Lots Held for Future Development | Lots Held for Sale | Total Lots Owned | Total Lots Under Contract | Total Lots Controlled | ||||||||||||||||||||||||||||||||||||||||
West | |||||||||||||||||||||||||||||||||||||||||||||||
Arizona | 326 | 205 | 85 | — | — | 616 | 693 | 1,309 | |||||||||||||||||||||||||||||||||||||||
California | 354 | 218 | 744 | — | 45 | 1,361 | 505 | 1,866 | |||||||||||||||||||||||||||||||||||||||
Nevada | 175 | 286 | 315 | 66 | — | 842 | 708 | 1,550 | |||||||||||||||||||||||||||||||||||||||
Texas | 1,076 | 1,142 | 1,426 | — | 168 | 3,812 | 3,843 | 7,655 | |||||||||||||||||||||||||||||||||||||||
Total West | 1,931 | 1,851 | 2,570 | 66 | 213 | 6,631 | 5,749 | 12,380 | |||||||||||||||||||||||||||||||||||||||
East | |||||||||||||||||||||||||||||||||||||||||||||||
Indiana | 138 | 124 | 287 | — | 2 | 551 | 317 | 868 | |||||||||||||||||||||||||||||||||||||||
Maryland/Delaware | 186 | 503 | 207 | — | 1 | 897 | 743 | 1,640 | |||||||||||||||||||||||||||||||||||||||
New Jersey | — | — | — | 117 | — | 117 | — | 117 | |||||||||||||||||||||||||||||||||||||||
Tennessee | 161 | 138 | 211 | — | 2 | 512 | 1,332 | 1,844 | |||||||||||||||||||||||||||||||||||||||
Virginia | 90 | 34 | 85 | — | — | 209 | 266 | 475 | |||||||||||||||||||||||||||||||||||||||
Total East | 575 | 799 | 790 | 117 | 5 | 2,286 | 2,658 | 4,944 | |||||||||||||||||||||||||||||||||||||||
Southeast | |||||||||||||||||||||||||||||||||||||||||||||||
Florida | 177 | 62 | 233 | — | — | 472 | 646 | 1,118 | |||||||||||||||||||||||||||||||||||||||
Georgia | 163 | 464 | 191 | — | — | 818 | 290 | 1,108 | |||||||||||||||||||||||||||||||||||||||
North Carolina | 83 | 169 | 179 | 21 | 41 | 493 | 556 | 1,049 | |||||||||||||||||||||||||||||||||||||||
South Carolina | 198 | 222 | 773 | 68 | 34 | 1,295 | 93 | 1,388 | |||||||||||||||||||||||||||||||||||||||
Total Southeast | 621 | 917 | 1,376 | 89 | 75 | 3,078 | 1,585 | 4,663 | |||||||||||||||||||||||||||||||||||||||
Total | 3,127 | 3,567 | 4,736 | 272 | 293 | 11,995 | 9,992 | 21,987 |
in thousands | Land Under Development | Land Held for Future Development | Land Held for Sale | ||||||||||||||
West | $ | 377,516 | $ | 3,483 | $ | 4,478 | |||||||||||
East | 135,255 | 10,888 | 584 | ||||||||||||||
Southeast | 135,633 | 5,508 | 4,117 | ||||||||||||||
Total | $ | 648,404 | $ | 19,879 | $ | 9,179 |
Plan Category | Number of Common Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Common Shares Remaining Available for Future Issuance Under Equity Compensation Plans | |||||||||||||||||
Equity compensation plans approved by stockholders | 114,259 | $17.89 | 1,949,496 |
Fiscal Year Ended September 30, | ||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||
u | Beazer Homes USA, Inc. | 160.72 | 90.05 | 127.78 | 113.20 | 147.94 | ||||||||||||||
g | S&P 500 Index | 118.61 | 139.85 | 145.80 | 167.89 | 218.26 | ||||||||||||||
p | S&P 500 Homebuilding Index | 131.67 | 127.26 | 164.71 | 221.89 | 249.18 |
New Orders (Net of Cancellations) | |||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | |||||||||||||||||||||||||
2021 | 1,442 | 1,854 | 1,199 | 1,069 | 5,564 | ||||||||||||||||||||||||
2020 | 1,251 | 1,661 | 1,372 | 2,009 | 6,293 | ||||||||||||||||||||||||
2019 | 976 | 1,598 | 1,544 | 1,458 | 5,576 | ||||||||||||||||||||||||
Closings | |||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | |||||||||||||||||||||||||
2021 | 1,114 | 1,388 | 1,378 | 1,407 | 5,287 | ||||||||||||||||||||||||
2020 | 1,112 | 1,277 | 1,366 | 1,737 | 5,492 | ||||||||||||||||||||||||
2019 | 1,083 | 1,134 | 1,269 | 2,014 | 5,500 |
Fiscal Year Ended September 30, | |||||||||||||||||
$ in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Revenue: | |||||||||||||||||
Homebuilding | $ | 2,127,700 | $ | 2,116,910 | $ | 2,077,245 | |||||||||||
Land sales and other | 12,603 | 10,167 | 10,494 | ||||||||||||||
Total | $ | 2,140,303 | $ | 2,127,077 | $ | 2,087,739 | |||||||||||
Gross profit (loss): | |||||||||||||||||
Homebuilding | $ | 401,720 | $ | 348,110 | $ | 206,034 | |||||||||||
Land sales and other | 2,535 | (470) | (39,998) | ||||||||||||||
Total | $ | 404,255 | $ | 347,640 | $ | 166,036 | |||||||||||
Gross margin: | |||||||||||||||||
Homebuilding (a) | 18.9 | % | 16.4 | % | 9.9 | % | |||||||||||
Land sales and other (b) | 20.1 | % | (4.6) | % | (381.2) | % | |||||||||||
Total | 18.9 | % | 16.3 | % | 8.0 | % | |||||||||||
Commissions | $ | 80,125 | $ | 82,507 | $ | 79,802 | |||||||||||
General and administrative expenses (G&A) | $ | 163,285 | $ | 170,386 | $ | 161,371 | |||||||||||
SG&A (commissions plus G&A) as a percentage of total revenue | 11.4 | % | 11.9 | % | 11.6 | % | |||||||||||
G&A as a percentage of total revenue | 7.6 | % | 8.0 | % | 7.7 | % | |||||||||||
Depreciation and amortization | $ | 13,976 | $ | 15,640 | $ | 14,759 | |||||||||||
Operating income (loss) | $ | 146,869 | $ | 79,107 | $ | (89,896) | |||||||||||
Operating income (loss) as a percentage of total revenue | 6.9 | % | 3.7 | % | (4.3) | % | |||||||||||
Effective tax rate (c) | 15.0 | % | 25.2 | % | 31.9 | % | |||||||||||
Inventory impairments and abandonments | $ | 853 | $ | 2,903 | $ | 148,618 | |||||||||||
Loss on extinguishment of debt, net | $ | (2,025) | $ | — | $ | (24,920) |
Fiscal Year Ended September 30, | |||||||||||||||||||||||||||||
in thousands | 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||
Net income (loss) | $ | 122,021 | $ | 52,226 | $ | (79,520) | $ | (45,375) | $ | 31,813 | |||||||||||||||||||
Expense (benefit) from income taxes | 21,501 | 17,664 | (37,245) | 94,373 | 2,621 | ||||||||||||||||||||||||
Interest amortized to home construction and land sales expenses and capitalized interest impaired | 87,290 | 95,662 | 108,941 | 93,113 | 88,820 | ||||||||||||||||||||||||
Interest expense not qualified for capitalization | 2,781 | 8,468 | 3,109 | 5,325 | 15,636 | ||||||||||||||||||||||||
EBIT | 233,593 | 174,020 | (4,715) | 147,436 | 138,890 | ||||||||||||||||||||||||
Depreciation and amortization | 13,976 | 15,640 | 14,759 | 13,807 | 14,014 | ||||||||||||||||||||||||
EBITDA | 247,569 | 189,660 | 10,044 | 161,243 | 152,904 | ||||||||||||||||||||||||
Stock-based compensation expense | 12,167 | 10,036 | 10,526 | 10,258 | 8,159 | ||||||||||||||||||||||||
Loss on extinguishment of debt | 2,025 | — | 24,920 | 27,839 | 12,630 | ||||||||||||||||||||||||
Inventory impairments and abandonments (a) | 853 | 2,111 | 134,711 | 4,988 | 2,389 | ||||||||||||||||||||||||
Litigation settlement in discontinued operations | 120 | 1,260 | — | — | — | ||||||||||||||||||||||||
Restructuring and severance expenses | (10) | 1,317 | — | — | — | ||||||||||||||||||||||||
Joint venture impairment and abandonment charges | — | — | — | 341 | — | ||||||||||||||||||||||||
Write-off of deposit on legacy land investment | — | — | — | — | 2,700 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 262,724 | $ | 204,384 | $ | 180,201 | $ | 204,669 | $ | 178,782 |
New Orders, net | Cancellation Rates | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 21 v 20 | 20 v 19 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
West | 3,233 | 3,589 | 2,983 | (9.9) | % | 20.3 | % | 12.0 | % | 16.5 | % | 16.7 | % | ||||||||||||||||||||||||||||||||||
East | 1,172 | 1,328 | 1,152 | (11.7) | % | 15.3 | % | 9.6 | % | 14.5 | % | 16.0 | % | ||||||||||||||||||||||||||||||||||
Southeast | 1,159 | 1,376 | 1,441 | (15.8) | % | (4.5) | % | 10.2 | % | 15.1 | % | 15.2 | % | ||||||||||||||||||||||||||||||||||
Total | 5,564 | 6,293 | 5,576 | (11.6) | % | 12.9 | % | 11.1 | % | 15.8 | % | 16.1 | % |
As of September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 21 v 20 | 20 v 19 | |||||||||||||||||||||||||
Backlog Units: | |||||||||||||||||||||||||||||
West | 1,653 | 1,365 | 982 | 21.1 | % | 39.0 | % | ||||||||||||||||||||||
East | 611 | 624 | 341 | (2.1) | % | 83.0 | % | ||||||||||||||||||||||
Southeast | 522 | 520 | 385 | 0.4 | % | 35.1 | % | ||||||||||||||||||||||
Total | 2,786 | 2,509 | 1,708 | 11.0 | % | 46.9 | % | ||||||||||||||||||||||
Aggregate dollar value of homes in backlog (in millions) | $ | 1,284.0 | $ | 995.3 | $ | 665.1 | 29.0 | % | 49.6 | % | |||||||||||||||||||
ASP in backlog (in thousands) | $ | 460.9 | $ | 396.7 | $ | 389.4 | 16.2 | % | 1.9 | % |
Homebuilding Revenue | Average Selling Price | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ in thousands | 2021 | 2020 | 2019 | 21 v 20 | 20 v 19 | 2021 | 2020 | 2019 | 21 v 20 | 20 v 19 | |||||||||||||||||||||||||||||||||||||||||||||||||
West | $ | 1,110,208 | $ | 1,180,577 | $ | 1,012,977 | (6.0) | % | 16.5 | % | $ | 377.0 | $ | 368.2 | $ | 354.3 | 2.4 | % | 3.9 | % | |||||||||||||||||||||||||||||||||||||||
East | 565,989 | 476,167 | 506,389 | 18.9 | % | (6.0) | % | 477.6 | 455.7 | 463.7 | 4.8 | % | (1.7) | % | |||||||||||||||||||||||||||||||||||||||||||||
Southeast | 451,503 | 460,166 | 557,879 | (1.9) | % | (17.5) | % | 390.2 | 370.8 | 360.2 | 5.2 | % | 2.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,127,700 | $ | 2,116,910 | $ | 2,077,245 | 0.5 | % | 1.9 | % | $ | 402.4 | $ | 385.5 | $ | 377.7 | 4.4 | % | 2.1 | % |
Closings | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 21 v 20 | 20 v 19 | |||||||||||||||||||||||||
West | 2,945 | 3,206 | 2,859 | (8.1) | % | 12.1 | % | ||||||||||||||||||||||
East | 1,185 | 1,045 | 1,092 | 13.4 | % | (4.3) | % | ||||||||||||||||||||||
Southeast | 1,157 | 1,241 | 1,549 | (6.8) | % | (19.9) | % | ||||||||||||||||||||||
Total | 5,287 | 5,492 | 5,500 | (3.7) | % | (0.1) | % |
$ in thousands | Fiscal Year Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
HB Gross Profit (Loss) | HB Gross Margin | Impairments & Abandonments (I&A) | HB Gross Profit (Loss) excluding I&A | HB Gross Margin excluding I&A | Interest Amortized to COS (Interest) | HB Gross Profit (Loss) excluding I&A and Interest | HB Gross Margin excluding I&A and Interest | ||||||||||||||||||||||||||||||||||||||||
West | $ | 270,671 | 24.4 | % | $ | — | $ | 270,671 | 24.4 | % | $ | — | $ | 270,671 | 24.4 | % | |||||||||||||||||||||||||||||||
East | 125,928 | 22.2 | % | 465 | 126,393 | 22.3 | % | — | 126,393 | 22.3 | % | ||||||||||||||||||||||||||||||||||||
Southeast | 98,525 | 21.8 | % | 388 | 98,913 | 21.9 | % | — | 98,913 | 21.9 | % | ||||||||||||||||||||||||||||||||||||
Corporate & unallocated (a) | (93,404) | — | (93,404) | 87,037 | (6,367) | ||||||||||||||||||||||||||||||||||||||||||
Total homebuilding | $ | 401,720 | 18.9 | % | $ | 853 | $ | 402,573 | 18.9 | % | $ | 87,037 | $ | 489,610 | 23.0 | % | |||||||||||||||||||||||||||||||
$ in thousands | Fiscal Year Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
HB Gross Profit (Loss) | HB Gross Margin | Impairments & Abandonments (I&A) | HB Gross Profit (Loss) excluding I&A | HB Gross Margin excluding I&A | Interest Amortized to COS (Interest) | HB Gross Profit excluding I&A and Interest | HB Gross Margin excluding I&A and Interest | ||||||||||||||||||||||||||||||||||||||||
West | $ | 258,675 | 21.9 | % | $ | 923 | $ | 259,598 | 22.0 | % | $ | — | $ | 259,598 | 22.0 | % | |||||||||||||||||||||||||||||||
East | 98,446 | 20.7 | % | 82 | 98,528 | 20.7 | % | — | 98,528 | 20.7 | % | ||||||||||||||||||||||||||||||||||||
Southeast | 87,935 | 19.1 | % | 641 | 88,576 | 19.2 | % | — | 88,576 | 19.2 | % | ||||||||||||||||||||||||||||||||||||
Corporate & unallocated (a) | (96,946) | — | (96,946) | 94,844 | (2,102) | ||||||||||||||||||||||||||||||||||||||||||
Total homebuilding | $ | 348,110 | 16.4 | % | $ | 1,646 | $ | 349,756 | 16.5 | % | $ | 94,844 | $ | 444,600 | 21.0 | % | |||||||||||||||||||||||||||||||
$ in thousands | Fiscal Year Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
HB Gross Profit (Loss) | HB Gross Margin | Impairments & Abandonments (I&A) | HB Gross Profit (Loss) excluding I&A | HB Gross Margin excluding I&A | Interest Amortized to COS (Interest) | HB Gross Profit excluding I&A and Interest | HB Gross Margin excluding I&A and Interest | ||||||||||||||||||||||||||||||||||||||||
West | $ | 119,624 | 11.8 | % | $ | 92,912 | $ | 212,536 | 21.0 | % | $ | — | $ | 212,536 | 21.0 | % | |||||||||||||||||||||||||||||||
East | 96,008 | 19.0 | % | — | 96,008 | 19.0 | % | — | 96,008 | 19.0 | % | ||||||||||||||||||||||||||||||||||||
Southeast | 95,603 | 17.1 | % | 858 | 96,461 | 17.3 | % | — | 96,461 | 17.3 | % | ||||||||||||||||||||||||||||||||||||
Corporate & unallocated (a) | (105,201) | 16,259 | (88,942) | 93,875 | 4,933 | ||||||||||||||||||||||||||||||||||||||||||
Total homebuilding | $ | 206,034 | 9.9 | % | $ | 110,029 | $ | 316,063 | 15.2 | % | $ | 93,875 | $ | 409,938 | 19.7 | % | |||||||||||||||||||||||||||||||
Homebuilding Gross Margin from previously impaired communities: | |||||
Pre-impairment turn gross margin | 6.3 | % | |||
Impact of interest amortized to COS related to these communities | 3.9 | % | |||
Pre-impairment turn gross margin, excluding interest amortization | 10.2 | % | |||
Impact of impairment turns | 16.9 | % | |||
Gross margin (post impairment turns), excluding interest amortization | 27.1 | % |
$ in thousands | Land Sales and Other Revenue | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 21 v 20 | 20 v 19 | |||||||||||||||||||||||||
West | $ | 8,370 | $ | 2,762 | $ | 1,725 | 203.0 | % | 60.1 | % | |||||||||||||||||||
East | 3,846 | 1,457 | 8,572 | 164.0 | % | (83.0) | % | ||||||||||||||||||||||
Southeast | 387 | 5,948 | 197 | (93.5) | % | 2,919.3 | % | ||||||||||||||||||||||
Total | $ | 12,603 | $ | 10,167 | $ | 10,494 | 24.0 | % | (3.1) | % | |||||||||||||||||||
$ in thousands | Land Sales and Other Gross Profit (Loss) | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 21 v 20 | 20 v 19 | |||||||||||||||||||||||||
West | $ | 2,330 | $ | 417 | $ | (37,854) | 458.8 | % | 101.1 | % | |||||||||||||||||||
East | 440 | 111 | 208 | 296.4 | % | (46.6) | % | ||||||||||||||||||||||
Southeast | 73 | 200 | (65) | (63.5) | % | 407.7 | % | ||||||||||||||||||||||
Corporate and unallocated (a) | (308) | (1,198) | (2,287) | 74.3 | % | 47.6 | % | ||||||||||||||||||||||
Total | $ | 2,535 | $ | (470) | $ | (39,998) | 639.4 | % | 98.8 | % |
Fiscal Year Ended September 30, | |||||||||||||||||||||||||||||
in thousands | 2021 | 2020 | 2019 | 21 v 20 | 20 v 19 | ||||||||||||||||||||||||
West | $ | 181,303 | $ | 161,786 | $ | (5,492) | $ | 19,517 | $ | 167,278 | |||||||||||||||||||
East | 84,630 | 56,319 | 51,576 | 28,311 | 4,743 | ||||||||||||||||||||||||
Southeast | 57,581 | 40,746 | 40,165 | 16,835 | 581 | ||||||||||||||||||||||||
Corporate and Unallocated (a) | (176,645) | (179,744) | (176,145) | 3,099 | (3,599) | ||||||||||||||||||||||||
Operating income (loss) (b) | $ | 146,869 | $ | 79,107 | $ | (89,896) | $ | 67,762 | $ | 169,003 |
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Cash provided by operating activities | $ | 31,656 | $ | 289,095 | $ | 113,635 | |||||||||||
Cash used in investing activities | (14,189) | (10,164) | (25,125) | ||||||||||||||
Cash used in financing activities | (85,852) | (59,197) | (118,964) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (68,385) | $ | 219,734 | $ | (30,454) |
As of September 30, | |||||||||||
in thousands | 2021 | 2020 | |||||||||
Due from non-guarantor subsidiary | $ | 1,532 | $ | 417 | |||||||
Total assets | $ | 2,075,518 | $ | 2,006,611 | |||||||
Total liabilities | $ | 1,353,734 | $ | 1,414,105 |
Fiscal Year Ended September 30, | |||||||||||
in thousands | 2021 | 2020 | |||||||||
Total revenues | $ | 2,137,976 | $ | 2,126,660 | |||||||
Gross profit | $ | 402,646 | $ | 347,387 | |||||||
Income from continuing operations | $ | 120,571 | $ | 53,909 | |||||||
Net income | $ | 121,372 | $ | 52,861 |
Payments Due by Period | |||||||||||||||||||||||||||||
in thousands | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | ||||||||||||||||||||||||
Senior notes, term loan, and junior subordinated notes (a) | $ | 1,093,583 | $ | 50,000 | $ | — | $ | 229,555 | $ | 814,028 | |||||||||||||||||||
Interest commitments under senior notes, term loan, and junior subordinated notes (b) | 454,363 | 68,501 | 134,564 | 123,733 | 127,565 | ||||||||||||||||||||||||
Obligations related to lots under option | 676,148 | 318,447 | 278,122 | 78,835 | 744 | ||||||||||||||||||||||||
Operating leases | 15,808 | 4,335 | 6,062 | 3,626 | 1,785 | ||||||||||||||||||||||||
Uncertain tax positions (c) | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 2,239,902 | $ | 441,283 | $ | 418,748 | $ | 435,749 | $ | 944,122 |
in thousands (except share and per share data) | September 30, 2021 | September 30, 2020 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable (net of allowance of $ | |||||||||||
Income tax receivable | |||||||||||
Owned inventory | |||||||||||
Investments in unconsolidated entities | |||||||||||
Deferred tax assets, net | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Trade accounts payable | $ | $ | |||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total debt (net of debt issuance costs of $ | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock (par value $ | |||||||||||
Common stock (par value $ | |||||||||||
Paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands (except per share data) | 2021 | 2020 | 2019 | ||||||||||||||
Total revenue | $ | $ | $ | ||||||||||||||
Home construction and land sales expenses | |||||||||||||||||
Inventory impairments and abandonments | |||||||||||||||||
Gross profit | |||||||||||||||||
Commissions | |||||||||||||||||
General and administrative expenses | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||
Equity in income of unconsolidated entities | |||||||||||||||||
Loss on extinguishment of debt, net | ( | ( | |||||||||||||||
Other expense, net | ( | ( | ( | ||||||||||||||
Income (loss) from continuing operations before income taxes | ( | ||||||||||||||||
Expense (benefit) from income taxes | ( | ||||||||||||||||
Income (loss) from continuing operations | ( | ||||||||||||||||
Loss from discontinued operations, net of tax | ( | ( | ( | ||||||||||||||
Net income (loss) | $ | $ | $ | ( | |||||||||||||
Weighted-average number of shares: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted | |||||||||||||||||
Basic income (loss) per share: | |||||||||||||||||
Continuing operations | $ | $ | $ | ( | |||||||||||||
Discontinued operations | ( | ( | ( | ||||||||||||||
Total | $ | $ | $ | ( | |||||||||||||
Diluted income (loss) per share: | |||||||||||||||||
Continuing operations | $ | $ | $ | ( | |||||||||||||
Discontinued operations | ( | ( | |||||||||||||||
Total | $ | $ | $ | ( |
Common Stock | Paid-in Capital | Accumulated Deficit | |||||||||||||||||||||||||||
in thousands | Shares | Amount | Total | ||||||||||||||||||||||||||
Balance as of September 30, 2018 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Net loss and comprehensive loss | — | — | — | ( | ( | ||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Exercises of stock options | — | ||||||||||||||||||||||||||||
Shares issued under employee stock plans, net | — | — | — | — | |||||||||||||||||||||||||
Forfeiture of restricted stock | ( | — | — | — | — | ||||||||||||||||||||||||
Common stock redeemed for tax liability | ( | — | ( | — | ( | ||||||||||||||||||||||||
Share Repurchases | ( | ( | ( | — | ( | ||||||||||||||||||||||||
Balance as of September 30, 2019 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Net income and comprehensive income | — | — | — | ||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Exercises of stock options | — | — | |||||||||||||||||||||||||||
Shares issued under employee stock plans, net | — | — | — | — | |||||||||||||||||||||||||
Forfeiture and other settlements of restricted stock | ( | — | ( | — | ( | ||||||||||||||||||||||||
Common stock redeemed for tax liability | ( | — | ( | — | ( | ||||||||||||||||||||||||
Share repurchases | ( | ( | — | ( | |||||||||||||||||||||||||
Balance as of September 30, 2020 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Net income and comprehensive income | — | — | — | ||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Exercises of stock options | — | — | |||||||||||||||||||||||||||
Shares issued under employee stock plans, net | — | — | — | — | |||||||||||||||||||||||||
Forfeiture and other settlements of restricted stock | ( | — | — | ||||||||||||||||||||||||||
Common stock redeemed for tax liability | ( | — | ( | — | ( | ||||||||||||||||||||||||
Balance as of September 30, 2021 | $ | $ | $ | ( | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | $ | $ | ( | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Stock-based compensation expense | |||||||||||||||||
Inventory impairments and abandonments | |||||||||||||||||
Deferred and other income tax expense (benefit) | ( | ||||||||||||||||
Gain on sale of fixed assets | ( | ( | ( | ||||||||||||||
Change in allowance for doubtful accounts | ( | ( | |||||||||||||||
Equity in income of unconsolidated entities | ( | ( | ( | ||||||||||||||
Cash distributions of income from unconsolidated entities | |||||||||||||||||
Loss on extinguishment of debt, net | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
(Increase) decrease in accounts receivable | ( | ( | |||||||||||||||
Decrease in income tax receivable | |||||||||||||||||
(Increase) decrease in inventory | ( | ||||||||||||||||
(Increase) decrease in other assets | ( | ||||||||||||||||
Increase in trade accounts payable | |||||||||||||||||
Increase (decrease) in other liabilities | ( | ||||||||||||||||
Net cash provided by operating activities | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||
Proceeds from sale of fixed assets | |||||||||||||||||
Acquisition, net of cash acquired | ( | ||||||||||||||||
Return of capital from unconsolidated entities | |||||||||||||||||
Net cash used in investing activities | ( | ( | ( | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayment of debt | ( | ( | ( | ||||||||||||||
Proceeds from issuance of new debt | |||||||||||||||||
Repayment of borrowings from credit facility | ( | ( | |||||||||||||||
Borrowings from credit facility | |||||||||||||||||
Debt issuance costs | ( | ( | ( | ||||||||||||||
Repurchase of common stock | ( | ( | |||||||||||||||
Tax payments for stock-based compensation awards | ( | ( | ( | ||||||||||||||
Stock option exercises and other financing activities | ( | ||||||||||||||||
Net cash used in financing activities | ( | ( | ( | ||||||||||||||
(Decrease) increase in cash, cash equivalents, and restricted cash | ( | ( | |||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | $ |
in thousands | Deposits & Non-refundable Pre-acquisition Costs Incurred | Remaining Obligation, Net of Cash Deposits | |||||||||
As of September 30, 2021 | |||||||||||
Unconsolidated lot option agreements | $ | $ | |||||||||
As of September 30, 2020 | |||||||||||
Unconsolidated lot option agreements | $ | $ | |||||||||
Asset Class | Useful Lives | |||||||
Buildings | ||||||||
Information systems | Lesser of estimated useful life of the asset or | |||||||
Furniture, fixtures and computer and office equipment | ||||||||
Model and sales office improvements | Lesser of estimated useful life of the asset or estimated life of the community | |||||||
Leasehold improvements | Lesser of the lease term or the estimated useful life of the asset |
Fiscal Year Ended | |||||||||||||||||
September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Homebuilding revenue | $ | $ | $ | ||||||||||||||
Land sales and other revenue | |||||||||||||||||
Total revenue (a) | $ | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Supplemental disclosure of non-cash activity: | |||||||||||||||||
Beginning operating lease right-of-use assets (ASC 842 adoption)(a) | $ | — | $ | $ | — | ||||||||||||
Beginning operating lease liabilities (ASC 842 adoption)(a) | — | — | |||||||||||||||
Increase in operating lease right-of-use assets (b) | $ | ||||||||||||||||
Increase in operating lease liabilities (b) | |||||||||||||||||
Supplemental disclosure of cash activity: | |||||||||||||||||
Interest payments | $ | $ | $ | ||||||||||||||
Income tax payments | |||||||||||||||||
Tax refunds received | |||||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Restricted cash | |||||||||||||||||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ | $ | $ |
in thousands | September 30, 2021 | September 30, 2020 | |||||||||
Investment in unconsolidated entities | $ | $ | |||||||||
Total equity of unconsolidated entities | |||||||||||
Total outstanding borrowings of unconsolidated entities | |||||||||||
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Equity in income of unconsolidated entities | $ | $ | $ | ||||||||||||||
in thousands | September 30, 2021 | September 30, 2020 | |||||||||
Homes under construction | $ | $ | |||||||||
Land under development | |||||||||||
Land held for future development | |||||||||||
Land held for sale | |||||||||||
Capitalized interest | |||||||||||
Model homes | |||||||||||
Total owned inventory | $ | $ |
in thousands | Projects in Progress (a) | Land Held for Future Development | Land Held for Sale | Total Owned Inventory | |||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
West | $ | $ | $ | $ | |||||||||||||||||||
East | |||||||||||||||||||||||
Southeast | |||||||||||||||||||||||
Corporate and unallocated (b) | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
West | $ | $ | $ | $ | |||||||||||||||||||
East | |||||||||||||||||||||||
Southeast | |||||||||||||||||||||||
Corporate and unallocated (b) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Projects in Progress: | |||||||||||||||||
West | $ | $ | $ | ||||||||||||||
Southeast | |||||||||||||||||
Corporate and unallocated (a) | |||||||||||||||||
Total impairment charges on projects in progress | $ | $ | $ | ||||||||||||||
Land Held for Sale: | |||||||||||||||||
West | $ | $ | $ | ||||||||||||||
Southeast | |||||||||||||||||
Corporate and unallocated (a) | |||||||||||||||||
Total impairment charges on land held for sale | $ | $ | $ | ||||||||||||||
Abandonments: | |||||||||||||||||
West | $ | $ | $ | ||||||||||||||
East | |||||||||||||||||
Southeast | |||||||||||||||||
Total abandonment charges | $ | $ | $ | ||||||||||||||
Total impairment and abandonment charges | $ | $ | $ |
Results of Discounted Cash Flow Analyses Prepared | |||||||||||||||||||||||
$ in thousands | # of Communities Impaired | # of Lots Impaired | Impairment Charge | Estimated Fair Value of Impaired Inventory at Time of Impairment | |||||||||||||||||||
Year Ended September 30, 2019 | |||||||||||||||||||||||
West | $ | $ | |||||||||||||||||||||
Southeast | |||||||||||||||||||||||
Corporate and unallocated (a) | |||||||||||||||||||||||
Total | $ | $ | |||||||||||||||||||||
Unobservable Inputs | |||||
Average selling price (in thousands) | $ | ||||
Closings per community per month | |||||
Discount rate |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Capitalized interest in inventory, beginning of period | $ | $ | $ | ||||||||||||||
Interest incurred | |||||||||||||||||
Capitalized interest impaired | ( | ( | |||||||||||||||
Interest expense not qualified for capitalization and included as other expense (a) | ( | ( | ( | ||||||||||||||
Capitalized interest amortized to home construction and land sales expenses (b) | ( | ( | ( | ||||||||||||||
Capitalized interest in inventory, end of period | $ | $ | $ |
in thousands | September 30, 2021 | September 30, 2020 | |||||||||
Model furnishings and sales office improvements | $ | $ | |||||||||
Information systems | |||||||||||
Furniture, fixtures and office equipment | |||||||||||
Leasehold improvements | |||||||||||
Buildings and improvements | |||||||||||
Property and equipment, gross | |||||||||||
Less: Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
in thousands | Maturity Date | September 30, 2021 | September 30, 2020 | |||||||||||
Senior Unsecured Term Loan | September 2022 | $ | $ | |||||||||||
6 3/4% Senior Notes (2025 Notes) | March 2025 | |||||||||||||
5 7/8% Senior Notes (2027 Notes) | October 2027 | |||||||||||||
7 1/4% Senior Notes (2029 Notes) | October 2029 | |||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||
Total Senior Notes, net | ||||||||||||||
Junior Subordinated Notes (net of unamortized accretion of $ | July 2036 | |||||||||||||
Revolving Credit Facility | February 2024 | |||||||||||||
Total debt, net | $ | $ |
Fiscal Year Ended September 30, | |||||
in thousands | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Senior Note Description | Issuance Date | Maturity Date | Redemption Terms | |||||||||||||||||
6 3/4% Senior Notes | March 2017 | March 2025 | Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to | |||||||||||||||||
5 7/8% Senior Notes | October 2017 | October 2027 | On or prior to October 15, 2022, we may redeem up to | |||||||||||||||||
Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to | ||||||||||||||||||||
7 1/4% Senior Notes | September 2019 | October 2029 | On or prior to October 15, 2022, we may redeem up to | |||||||||||||||||
Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to | ||||||||||||||||||||
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Balance at beginning of period | $ | $ | $ | ||||||||||||||
Accruals for warranties issued (a) | |||||||||||||||||
Changes in liability related to warranties existing in prior periods | ( | ( | |||||||||||||||
Payments made | ( | ( | ( | ||||||||||||||
Balance at end of period | $ | $ | $ |
in thousands | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
As of September 30, 2021 | |||||||||||||||||||||||
Deferred compensation plan assets (a) | $ | $ | $ | $ | |||||||||||||||||||
As of September 30, 2020 | |||||||||||||||||||||||
Deferred compensation plan assets (a) | $ | $ | $ | $ | |||||||||||||||||||
Land held for sale (b) | (c) | ||||||||||||||||||||||
As of September 30, 2019 | |||||||||||||||||||||||
Deferred compensation plan assets (a) | $ | $ | $ | $ | |||||||||||||||||||
Projects in progress (b) | (c) | ||||||||||||||||||||||
Land held for sale (b) | (c) | ||||||||||||||||||||||
As of September 30, 2021 | As of September 30, 2020 | ||||||||||||||||||||||
in thousands | Carrying Amount (a) | Fair Value | Carrying Amount (a) | Fair Value | |||||||||||||||||||
Senior Notes and Term Loan (b) | $ | $ | $ | $ | |||||||||||||||||||
Junior Subordinated Notes (c) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fiscal Year Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Weighted-average remaining lease term | |||||||||||
Weighted-average discount rate |
Fiscal Year Ended September 30, | |||||
in thousands | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: imputed interest | |||||
Total operating lease liabilities | $ |
in thousands | September 30, 2021 | September 30, 2020 | |||||||||
Accrued compensations and benefits | $ | $ | |||||||||
Customer deposits | |||||||||||
Accrued interest | |||||||||||
Accrued warranty expenses | |||||||||||
Litigation accruals | |||||||||||
Income tax liabilities | |||||||||||
Other | |||||||||||
Total | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Current federal (a) | $ | $ | ( | $ | ( | ||||||||||||
Current state | |||||||||||||||||
Deferred federal | ( | ||||||||||||||||
Deferred state | ( | ||||||||||||||||
Total expense (benefit) | $ | $ | $ | ( |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Income tax computed at statutory rate | $ | $ | $ | ( | |||||||||||||
State income taxes, net of federal benefit | ( | ||||||||||||||||
Deferred rate change | ( | ( | |||||||||||||||
Changes in uncertain tax positions | ( | ( | |||||||||||||||
Permanent differences | |||||||||||||||||
Tax credits | ( | ( | ( | ||||||||||||||
Other, net | ( | ||||||||||||||||
Total expense (benefit) | $ | $ | $ | ( |
in thousands | September 30, 2021 | September 30, 2020 | |||||||||
Deferred tax assets: | |||||||||||
Federal and state net operating loss carryforwards | $ | $ | |||||||||
Inventory adjustments | |||||||||||
Incentive compensation | |||||||||||
Intangible assets | |||||||||||
Warranty and other reserves | |||||||||||
Property, equipment and other assets | |||||||||||
Uncertain tax positions | |||||||||||
Other | |||||||||||
Total deferred tax assets | |||||||||||
Valuation allowance | ( | ( | |||||||||
Deferred tax assets, net | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Balance at beginning of year | $ | $ | $ | ||||||||||||||
Additions for tax positions related to current year | |||||||||||||||||
Additions for tax positions related to prior years | |||||||||||||||||
Reductions in tax positions of prior years | |||||||||||||||||
Lapse of statute of limitations | ( | ( | ( | ||||||||||||||
Balance at end of year | $ | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Stock options expense | $ | $ | $ | ||||||||||||||
Restricted stock awards expense | |||||||||||||||||
Stock-based compensation expense | $ | $ | $ |
Fiscal Year Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Expected life of options | ||||||||||||||
Expected volatility | % | % | ||||||||||||
Expected dividends | ||||||||||||||
Weighted-average risk-free interest rate | % | % | ||||||||||||
Weighted-average fair value | $ | $ |
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | ||||||||||||||||||||||||||||||
Outstanding at beginning of period | $ | $ | $ | ||||||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||||||||
Exercised | ( | ( | ( | ||||||||||||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||||||||||||||
Outstanding at end of period | $ | $ | $ | ||||||||||||||||||||||||||||||||
Exercisable at end of period | $ | $ | $ | ||||||||||||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||||||||||||||||||
Range of Exercise Price | Number Outstanding | Weighted-Average Contractual Remaining Life (Years) | Weighted-Average Exercise Price | Number Exercisable | Weighted-Average Contractual Remaining Life (Years) | Weighted-Average Exercise Price | |||||||||||||||||||||||||||||
$ | $ | $ | |||||||||||||||||||||||||||||||||
$ | |||||||||||||||||||||||||||||||||||
$ | |||||||||||||||||||||||||||||||||||
$ | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Intrinsic value of options exercised | $ | $ | $ | ||||||||||||||
Fair market value of options vested |
Fiscal Year Ended September 30, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Expected volatility | |||||||||||||||||
Risk-free interest rate | % | % | % | ||||||||||||||
Dividend yield | |||||||||||||||||
Grant-date stock price | $ | $ | $ |
Year Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||
Performance-Based(a) | Time-Based | Total | |||||||||||||||||||||||||||||||||
Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | ||||||||||||||||||||||||||||||
Beginning of period | $ | $ | $ | ||||||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||||||||
Vested | ( | ( | ( | ||||||||||||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||||||||||||||
End of period | $ | $ | $ |
Year Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Performance-Based | Time-Based | Total | |||||||||||||||||||||||||||||||||
Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | ||||||||||||||||||||||||||||||
Beginning of period | $ | $ | $ | ||||||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||||||||
Vested | ( | ( | ( | ||||||||||||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||||||||||||||
End of period | $ | $ | $ |
Year Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Performance-Based(a) | Time-Based | Total | |||||||||||||||||||||||||||||||||
Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | ||||||||||||||||||||||||||||||
Beginning of period | $ | $ | $ | ||||||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||||||||
Vested | ( | ( | ( | ||||||||||||||||||||||||||||||||
Forfeited | ( | ( | ( | ||||||||||||||||||||||||||||||||
End of period | $ | $ | $ |
Fiscal Year Ended September 30, | ||||||||||||||||||||
in thousands (except per share data) | 2021 | 2020 | 2019 | |||||||||||||||||
Numerator: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | $ | $ | ( | ||||||||||||||||
Loss from discontinued operations, net of tax | ( | ( | ( | |||||||||||||||||
Net income (loss) | $ | $ | $ | ( | ||||||||||||||||
Denominator: | ||||||||||||||||||||
Basic weighted-average shares | ||||||||||||||||||||
Dilutive effect of restricted stock awards | ||||||||||||||||||||
Dilutive effect of stock options | ||||||||||||||||||||
Diluted weighted-average shares (a) | ||||||||||||||||||||
Basic income (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | $ | $ | ( | ||||||||||||||||
Discontinued operations | ( | ( | ( | |||||||||||||||||
Total | $ | $ | $ | ( | ||||||||||||||||
Diluted income (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | $ | $ | ( | ||||||||||||||||
Discontinued operations | ( | ( | ||||||||||||||||||
Total | $ | $ | $ | ( |
Fiscal Year Ended September 30, | ||||||||||||||||||||
in thousands | 2021 | 2020 | 2019 | |||||||||||||||||
Stock options | ||||||||||||||||||||
Time-based restricted stock | ||||||||||||||||||||
Performance-based restricted stock |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Revenue | |||||||||||||||||
West | $ | $ | $ | ||||||||||||||
East | |||||||||||||||||
Southeast | |||||||||||||||||
Total revenue | $ | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Operating income (loss) (a) | |||||||||||||||||
West | $ | $ | $ | ( | |||||||||||||
East | |||||||||||||||||
Southeast | |||||||||||||||||
Segment total | |||||||||||||||||
Corporate and unallocated (b) | ( | ( | ( | ||||||||||||||
Total operating income (loss) | $ | $ | $ | ( |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Depreciation and amortization | |||||||||||||||||
West | $ | $ | $ | ||||||||||||||
East | |||||||||||||||||
Southeast | |||||||||||||||||
Segment total | |||||||||||||||||
Corporate and unallocated (a) | |||||||||||||||||
Total depreciation and amortization | $ | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Capital expenditures | |||||||||||||||||
West | $ | $ | $ | ||||||||||||||
East | |||||||||||||||||
Southeast | |||||||||||||||||
Corporate and unallocated | |||||||||||||||||
Total capital expenditures | $ | $ | $ |
in thousands | September 30, 2021 | September 30, 2020 | |||||||||
Assets | |||||||||||
West | $ | $ | |||||||||
East | |||||||||||
Southeast | |||||||||||
Corporate and unallocated (a) | |||||||||||
Total assets | $ | $ |
Fiscal Year Ended September 30, | |||||||||||||||||
in thousands | 2021 | 2020 | 2019 | ||||||||||||||
Total revenue | $ | $ | $ | ||||||||||||||
Home construction and land sales expenses (a) | |||||||||||||||||
Gross loss | ( | ( | ( | ||||||||||||||
General and administrative expenses | |||||||||||||||||
Operating loss | ( | ( | ( | ||||||||||||||
Equity in loss of unconsolidated entities | ( | ||||||||||||||||
Other income, net | |||||||||||||||||
Loss from discontinued operations before income taxes | ( | ( | ( | ||||||||||||||
Benefit from income taxes | ( | ( | ( | ||||||||||||||
Loss from discontinued operations, net of tax | $ | ( | $ | ( | $ | ( |
(a) | 1. Financial Statements |
Page Herein | |||||
2. Financial Statement Schedules | |||||
None required. |
3. Exhibits | |||||
All exhibits were filed under File No. 001-12822, except as otherwise indicated below. |
Exhibit Number | Exhibit Description | ||||||||||
3.1 | — | ||||||||||
3.2 | — | ||||||||||
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3.9 | — | ||||||||||
4.1 | — | ||||||||||
4.2 | — | ||||||||||
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4.4 | — | Reserved. |
4.5 | — | Reserved. | |||||||||
4.6 | — | ||||||||||
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4.8 | — | ||||||||||
4.9 | — | ||||||||||
4.10 | — | Reserved. | |||||||||
4.11 | — | ||||||||||
4.12 | — | Reserved. | |||||||||
4.15 | — | ||||||||||
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4.22 | — | ||||||||||
4.23 | — | Reserved. | |||||||||
4.24 | — | Reserved. | |||||||||
4.25 | — | Reserved. | |||||||||
4.31 | — | ||||||||||
4.32 | — | ||||||||||
4.33 | — |
4.34 | — | ||||||||||
4.35 | — | ||||||||||
4.36 | — | ||||||||||
4.37 | — | ||||||||||
10.1* | — | ||||||||||
10.2* | — | ||||||||||
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10.14* | — | ||||||||||
10.15* | — | ||||||||||
10.16* | — | ||||||||||
10.17* | — | ||||||||||
10.18* | — | Reserved. | |||||||||
10.19* | — | Reserved. | |||||||||
10.20* | — | Reserved. | |||||||||
10.21* | — |
10.22* | — | ||||||||||
10.23* | — | ||||||||||
10.24* | — | ||||||||||
10.25* | — | ||||||||||
10.26* | — | ||||||||||
10.27* | — | ||||||||||
10.28* | — | ||||||||||
10.29* | — | ||||||||||
10.30* | — | ||||||||||
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10.32 | — | ||||||||||
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10.35 | — | ||||||||||
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10.37 | — | ||||||||||
10.38 | — | ||||||||||
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10.44 | — | ||||||||||
10.45 | — | ||||||||||
10.46* | — | ||||||||||
10.47 | — | ||||||||||
10.48 | — | ||||||||||
21 | — | ||||||||||
22 | — | ||||||||||
23 | — | ||||||||||
31.1 | — | ||||||||||
31.2 | — | ||||||||||
32.1 | — | ||||||||||
32.2 | — | ||||||||||
101.INS | — | Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||
101.SCH | — | Inline XBRL Taxonomy Extension Schema Document | |||||||||
101.CAL | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||
101.LAB | — | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||
101.PRE | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||
101.DEF | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||
104 | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
(b) | Exhibits | ||||
Reference is made to Item 15(a)3 above. The following is a list of exhibits, included in item 15(a)3 above, that are filed concurrently with this report. |
4.37 | — | ||||||||||
21 | — | ||||||||||
22 | — | ||||||||||
23 | — | ||||||||||
31.1 | — | ||||||||||
31.2 | — | ||||||||||
32.1 | — | ||||||||||
32.2 | — | ||||||||||
101.INS | — | Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||
101.SCH | — | Inline XBRL Taxonomy Extension Schema Document | |||||||||
101.CAL | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||
101.LAB | — | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||
101.PRE | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||
101.DEF | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
(c) | Financial Statement Schedules | ||||
Reference is made to Item 15(a)2 above. |
Date: | November 10, 2021 | Beazer Homes USA, Inc. | ||||||||||||
By: | /s/ Allan P. Merrill | |||||||||||||
Name: | Allan P. Merrill | |||||||||||||
Chairman, President and Chief Executive Officer |
Date: | November 10, 2021 | By: | /s/ Allan P. Merrill | |||||||||||
Name: | Allan P. Merrill | |||||||||||||
Chairman, President, Chief Executive Officer and Director |
Date: | November 10, 2021 | By: | /s/ David I. Goldberg | |||||||||||
Name: | David I. Goldberg | |||||||||||||
Senior Vice President and Chief Financial Officer |
Date: | November 10, 2021 | By: | /s/ Elizabeth S. Acton | |||||||||||
Name: | Elizabeth S. Acton | |||||||||||||
Director |
Date: | November 10, 2021 | By: | /s/ Lloyd E. Johnson | |||||||||||
Name: | Lloyd E. Johnson | |||||||||||||
Director |
Date: | November 10, 2021 | By: | /s/ Peter M. Orser | |||||||||||
Name: | Peter M. Orser | |||||||||||||
Director |
Date: | November 10, 2021 | By: | /s/ Norma A. Provencio | |||||||||||
Name: | Norma A. Provencio | |||||||||||||
Director |
Date: | November 10, 2021 | By: | /s/ Danny R. Shepherd | |||||||||||
Name: | Danny R. Shepherd | |||||||||||||
Director |
Date: | November 10, 2021 | By: | /s/ David J. Spitz | |||||||||||
Name: | David J. Spitz | |||||||||||||
Director |
Date: | November 10, 2021 | By: | /s/ C. Christian Winkle | |||||||||||
Name: | C. Christian Winkle | |||||||||||||
Director |
Name | Jurisdiction of Incorporation | |||||||
Beazer Charity Foundation, Inc. | Delaware | |||||||
Beazer Clarksburg, LLC | Maryland | |||||||
Beazer Employee Disaster Assistance Corp. | Georgia | |||||||
Beazer Gain, LLC | Delaware | |||||||
Beazer General Services, Inc. | Delaware | |||||||
Beazer Homes Capital Trust I | Delaware | |||||||
Beazer Homes Holdings, LLC | Delaware | |||||||
Beazer Homes Indiana Holdings Corp. | Delaware | |||||||
Beazer Homes Indiana LLP | Indiana | |||||||
Beazer Homes Investments, LLC | Delaware | |||||||
Beazer Homes, LLC | Delaware | |||||||
Beazer Homes Sales, Inc. | Delaware | |||||||
Beazer Homes Texas Holdings, Inc. | Delaware | |||||||
Beazer Homes Texas, L.P. | Delaware | |||||||
Beazer Mortgage Corporation | Delaware | |||||||
Beazer Realty Corp. | Georgia | |||||||
Beazer Realty Los Angeles, Inc. | Delaware | |||||||
Beazer Realty Services, LLC | Delaware | |||||||
BH Building Products, LP | Delaware | |||||||
BH Procurement Services, LLC | Delaware | |||||||
Charity Title Agency, LLC | Texas | |||||||
Charity Title Group, LLC | Delaware | |||||||
Clarksburg Arora, LLC | Maryland | |||||||
Clarksburg Skylark, LLC | Maryland | |||||||
Dove Barrington Development LLC | Delaware | |||||||
Gatherings, LLC | Delaware | |||||||
Marshfield Land, LLC | Delaware |
As of September 30, 2021, the following subsidiaries of Beazer Homes USA, Inc., a Delaware corporation (the “Company”), jointly and severally and fully and unconditionally, guaranteed the Company’s (i) 6 3/4% Senior Notes due 2025, (ii) 5 7/8% Senior Notes due 2027, and (iii) 7 1/4% Senior Notes due 2029: | ||||||||
Name of Guarantor Subsidiary | Jurisdiction of Incorporation | |||||||
Beazer Clarksburg, LLC | Maryland | |||||||
Beazer Gain, LLC | Delaware | |||||||
Beazer General Services, Inc. | Delaware | |||||||
Beazer Homes Holdings, LLC | Delaware | |||||||
Beazer Homes Indiana Holdings Corp. | Delaware | |||||||
Beazer Homes Indiana LLP | Indiana | |||||||
Beazer Homes Investments, LLC | Delaware | |||||||
Beazer Homes Sales, Inc. | Delaware | |||||||
Beazer Homes Texas Holdings, Inc. | Delaware | |||||||
Beazer Homes Texas, L.P. | Delaware | |||||||
Beazer Homes, LLC | Delaware | |||||||
Beazer Mortgage Corporation | Delaware | |||||||
Beazer Realty Corp. | Georgia | |||||||
Beazer Realty Los Angeles, Inc. | Delaware | |||||||
Beazer Realty Services, LLC | Delaware | |||||||
BH Building Products, LP | Delaware | |||||||
BH Procurement Services, LLC | Delaware | |||||||
Clarksburg Arora LLC | Maryland | |||||||
Clarksburg Skylark, LLC | Maryland | |||||||
Dove Barrington Development LLC | Delaware |
Date: | November 10, 2021 | |||||||
/s/ Allan P. Merrill | ||||||||
Allan P. Merrill | ||||||||
President and Chief Executive Officer |
Date: | November 10, 2021 | |||||||
/s/ David I. Goldberg | ||||||||
David I. Goldberg | ||||||||
Senior Vice President and Chief Financial Officer |
Date: | November 10, 2021 | |||||||
/s/ Allan P. Merrill | ||||||||
Allan P. Merrill | ||||||||
President and Chief Executive Officer |
Date: | November 10, 2021 | |||||||
/s/ David I. Goldberg | ||||||||
David I. Goldberg | ||||||||
Senior Vice President and Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
ASSETS | ||
Allowances for accounts receivable | $ 290 | $ 358 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Debt issuance costs | $ 8,983 | $ 10,891 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 63,000,000 | 63,000,000 |
Common stock, shares issued (in shares) | 31,294,198 | 31,012,326 |
Common stock, shares outstanding (in shares) | 31,294,198 | 31,012,326 |
Description of Business |
12 Months Ended |
---|---|
Sep. 30, 2021 | |
Description of Business [Abstract] | |
Description of Business | Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast. Our homes are designed to appeal to homeowners at different price points across various demographic segments, and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate exceptional value and quality, while seeking to maximize our return on invested capital over the course of a housing cycle.
|
Basis of Presentation and Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and present the consolidated financial position, income, stockholders' equity, and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income (loss) is equivalent to our comprehensive income (loss), so we have not presented a separate statement of comprehensive income (loss). In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying consolidated statements of operations for all periods presented (see Note 19 for a further discussion of our discontinued operations). Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. Our fiscal year 2020 began on October 1, 2019 and ended on September 30, 2020. Our fiscal year 2019 began on October 1, 2018 and ended on September 30, 2019. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. Cash and Cash Equivalents and Restricted Cash We consider highly liquid investments with maturities of three months or less when acquired to be cash equivalents. As of September 30, 2021, the majority of our cash and cash equivalents were on demand deposits with major banks. These assets were valued at par and had no withdrawal restrictions. Restricted cash includes cash restricted by state law or a contractual requirement, including cash collateral for our outstanding cash-secured letters of credit (refer to Note 8). Accounts Receivable and Allowance Accounts receivable include escrow deposits to be received from title companies associated with closed homes, receivables from municipalities related to the development of utilities or other infrastructure, land banker reimbursements to be received related to land development costs, rebates to be received from our suppliers and other miscellaneous receivables. Generally, we receive cash from title companies within a few days of the home being closed. We regularly review our receivable balances for collectability and record an allowance against any receivable for which collectability is deemed to be uncertain. Owned Inventory Owned inventory includes land acquisition costs, land development costs, home construction costs, capitalized interest, real estate taxes, direct overhead costs and capitalized indirect costs incurred during land development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and other common costs (both incurred and estimated to be incurred) are allocated to individual lots on a pro-rata basis, and the cost of individual lots is transferred to homes under construction when home construction begins. Changes in estimated land and other common costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. Home construction costs are accumulated on a per-home basis. Cost of home closings includes the specific construction costs of the home and the allocated lot costs. Refer to Note 5 for a further discussion and detail of our inventory balance. Inventory Valuation - Projects in Progress Projects in progress inventory includes homes under construction and land under development grouped together as communities. Generally, upon the commencement of land development activities, it may take to five years (depending on, among other things, the size of the community and its sales pace) to fully develop, sell, construct and close all the homes in a typical community. Projects in progress are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. We evaluate, among other things, the average sales price and margins on recent home closings, homes in backlog and expected future home sales for each community. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. This undiscounted cash flow analysis requires important assumptions including, among other things, the current and future home sale prices, margins and the pace of closings to occur into the future. For those communities whose carrying values exceed the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. The fair value of the community is estimated using the present value of the estimated future cash flows using discount rates commensurate with the risk associated with the underlying community. Should the estimates or expectations used in determining estimated fair values deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to these assets, and such amounts could be material. Inventory Valuation - Land Held for Future Development Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for future development is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, such as the future enactment of a development plan or the occurrence of outside events. We evaluate the potential plans for each community in land held for future development if changes in facts and circumstances occur that would give rise to a more detailed analysis for a change in the status of a community. Inventory Valuation - Land Held for Sale Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets. We record land held for sale at the lower of the asset's carrying value or fair value less costs to sell (net realizable value). Land is classified as held for sale when the following criteria are met: •management has the authority and commits to a plan to sell the land; •the land is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of land assets; •there is an active program to locate a buyer and the plan to sell the property has been initiated; •the sale of the land is probable within one year; •the property is being actively marketed at a reasonable sale price relative to its current fair value; and •it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We evaluate the net realizable value of a land held for sale asset when indicators of impairment are present. In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals, any recent legitimate offers and listing prices of similar properties. If the current carrying value of the asset exceeds the estimated fair value less cost to sell, the asset is impaired and written down to its estimated fair value less cost to sell. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our analysis. Our assumptions about land sales prices require significant judgment because the market is highly sensitive to changes in economic conditions. We calculate the estimated fair values of land held for sale based on current market conditions and assumptions made by management, which may differ materially from actual results and may result in additional impairments if market conditions deteriorate. Lot Option Agreements and Variable Interest Entities (VIE) In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option contracts. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all. The following table provides a summary of our interests in lot option agreements as of September 30, 2021 and September 30, 2020:
In accordance with Accounting Standards Codification (ASC) Topic 810, Consolidation (ASC 810), if the entity holding the land under option is a variable VIE, the Company's deposit represents a variable interest in that entity. ASC 810 requires a company consolidate a VIE if the company is determined to be the primary beneficiary. To determine whether we are the primary beneficiary of the VIE, we first evaluate whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to, (1) the ability to determine the budget and scope of land development work, if any; (2) the ability to control financing decisions for the VIE; (3) the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with Beazer; and (4) the ability to change or amend the existing option contract with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE and thus do not consolidate the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE's losses or, if no party absorbs the majority of such losses, if we will benefit from potentially a significant amount of the VIE's expected gains. If we are the primary beneficiary of the VIE, we will consolidate the VIE even though creditors of the VIE have no recourse against the Company. For those we consolidate, we record the remaining contractual purchase price under the applicable lot option agreement, net of option deposits already paid, to consolidated inventory not owned with an offsetting increase to obligations related to consolidated inventory not owned on our consolidated balance sheets. Also, to reflect the total purchase price of this inventory on a consolidated basis, we present the related option deposits as consolidated inventory not owned. No VIEs required consolidation as of September 2021 and 2020 because we have determined that we were not the primary beneficiary of any VIEs. Investments in Unconsolidated Entities We participate in a number of joint ventures and other investments in which we have less than a controlling interest. We enter into the majority of these investments with land developers, other homebuilders and financial partners to acquire attractive land positions, to manage our risk profile and to leverage our capital base. The land positions are developed into finished lots for sale to the unconsolidated entity's members or other third parties. We recognize our share of equity in income (loss) and profits (losses) from the sale of lots to other buyers. Our share of profits from lots we purchase from the unconsolidated entities is deferred and treated as a reduction of the cost of the land purchased from the unconsolidated entity. Such profits are subsequently recognized at the time the home closes and title passes to the homebuyer. We evaluate our investments in unconsolidated entities for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of our investment in the unconsolidated entity has occurred that is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value, which is determined primarily using a discounted cash flow model. Our unconsolidated entities typically obtain secured acquisition, development and construction financing. We account for our interest in unconsolidated entities under the equity method. For additional discussion of these entities, refer to Note 4. Property and Equipment, Net Our property and equipment is recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis based on estimated useful lives as follows:
Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets from the businesses that we acquire. The Company's entire goodwill balance is recorded in our Southeast reportable segment. The Company evaluates goodwill for impairment at the reporting unit level annually during the fourth quarter or more often if indicators of impairment exist. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of the reporting unit is less than the carrying value, then a quantitative assessment is performed. The fair value of the reporting unit is estimated using a combination of the income approach, utilizing the discounted cash flow method, and the market approach, utilizing readily available market valuation multiples. If the estimated fair value of the reporting unit is less than its carrying value, an impairment will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Determining the fair value of a reporting unit under the quantitative goodwill impairment assessment requires the Company to make estimates and assumptions regarding future operating results, cash flows (including timing), discount rates, expected growth rates, capital expenditures and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of the factors used in assessing fair value are outside the control of management, and these assumptions and estimates may change in future periods. During the fourth quarter of 2021, the Company performed its annual goodwill impairment analysis and concluded our goodwill was not impaired. Other Assets Our other assets principally include prepaid expenses, unamortized debt issuance costs on our Secured Revolving Credit Facility, and assets related to our deferred compensation plan (refer to Note 15 for a discussion of our deferred compensation plan). Other Liabilities Our other liabilities principally include accrued compensations and benefits, accrued interest on our outstanding borrowings, customer deposits, accrued warranty expense, litigation accruals, income tax liabilities and other accruals related to our operations. Refer to Note 12 for a detail of our other liabilities. Income Taxes Our provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities result from deductible or taxable amounts in future years when such assets and liabilities are recovered or settled, and are measured using the enacted tax rates and laws that are expected to be in effect when the assets and liabilities are recovered or settled. We include any estimated interest and penalties on tax related matters in income taxes payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. We record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. Changes in recognition of measurement are recorded in the period in which the change in judgment occurs. Refer to Note 13 for a detailed discussion of our tax provision, deferred tax assets and valuation allowance. Our income tax receivable includes the refundable portion of our alternative minimum tax credit. The alternative minimum tax credit became a refundable credit when the alternative minimum tax was eliminated with the enactment of the Tax Cuts and Jobs Act on December 22, 2017. During fiscal 2019, we recorded our initial refund claim of $4.6 million, or half of our outstanding $9.2 million credit. During fiscal 2020, the enactment of the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27, 2020 enabled us to claim the entire $9.2 million alternative minimum tax credit with the filing of our fiscal 2019 return. As a result, we reduced our deferred tax asset by the remaining $4.6 million of alternative minimum tax credits and increased our tax receivable for the refund we expect to receive. Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in ASC Topic 606, Revenue from Contracts with Customers. •Identify the contract(s) with a customer •Identify the performance obligations •Determine the transaction price •Allocate the transaction price •Recognize revenue when the performance obligations are met The following table presents our total revenue disaggregated by revenue stream:
(a) Please see Note 18 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $28.5 million and $18.9 million as of September 30, 2021 and September 30, 2020, respectively. Of the customer liabilities outstanding as of September 30, 2020, $18.1 million was recognized in revenue during the year ended September 30, 2021, upon closing of the related homes, and $0.8 million was refunded to or forfeited by the buyer. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Home Construction Expenses Home construction expenses includes the specific construction costs of the home and the allocated lot costs (land acquisition, land development and other common costs are allocated to individual lots on a pro-rata basis based on the number of lots remaining to close). All home closing costs are charged to home construction expenses in the period when the revenues from home closing are recognized. Sales discounts and incentives include cash discounts, discounts on home building options, option upgrades and seller-paid financing or closing costs. Cash discounts are accounted for as a reduction in the sale price of the home, thereby decreasing the amount of revenue we recognize on that closing. All sales incentives other than cash discounts are recognized as a cost of selling the home and are included in home construction expenses. Estimated future warranty costs are charged to home construction expense in the period when the revenues from home closings are recognized. Such estimated warranty costs generally range from 0.3% to 1.0% of total revenue recognized for each home closed. Additional warranty costs are charged to home construction expenses as necessary based on management's estimate of the costs to remediate existing claims. See Note 9 for a more detailed discussion of warranty costs and related reserves. Advertising Costs Advertising costs related to continuing operations of $14.0 million, $15.9 million, and $17.9 million for our fiscal years 2021, 2020 and 2019, respectively, were expensed as incurred and were included in general and administrative (G&A) expenses in the consolidated statements of operations. Fair Value Measurements Certain of our assets are required to be recorded at fair value on a recurring basis, for example, the fair value of our deferred compensation plan assets are based on market-corroborated inputs (level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recovered (level 3). For example, we review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value is based on estimated cash flows discounted for market risks associated with the long-lived assets. The fair value of certain of our financial instruments approximates their carrying amounts due to the short maturity of these assets and liabilities or the variable interest rates on such obligations. The fair value of our publicly-held debt is generally estimated based on quoted bid prices for these instruments (level 2). Certain of our other financial liabilities are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. See Note 10 for additional discussion of our fair value measurements. Stock-Based Compensation We use the Black-Scholes option-pricing model to value our stock option grants. Restricted stock awards with market conditions are valued using the Monte Carlo valuation method. Other restricted stock awards without market conditions are valued based on the market price of the Company's common stock on the date of the grant. In addition, we reflect the benefits of tax deductions in excess of recognized compensation cost as an operating cash outflow. Compensation cost arising from all stock-based compensation awards is recognized as expense using the straight-line method over the vesting period and is included in G&A in our consolidated statements of operations. See Note 16 for additional discussion of our stock-based compensation. Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the effect of adopting the new guidance on its consolidated financial statements and related disclosures.
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented:
(a) On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC Topic 842, Leases (ASC 842). Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets. (b) Represents additional leases that commenced during the year ended September 30, 2021 and September 30, 2020.
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Investments in Unconsolidated Entities |
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Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Unconsolidated Entities As of September 30, 2021, the Company participated in certain joint ventures and had investments in unconsolidated entities in which it had less than a controlling interest. The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2021 and September 30, 2020:
Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented:
For the fiscal years ended September 30, 2021, September 30, 2020 and September 30, 2019, there were no impairments related to investments in unconsolidated entities. Guarantees Historically, the Company's joint ventures typically obtained secured acquisition, development, and construction financing. In addition, the Company and its joint venture partners provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of September 30, 2021 and September 30, 2020, the Company had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities. The Company and its joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate the Company to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During our fiscal years ended September 30, 2021 and 2020, the Company was not required to make any payments related to environmental indemnities. In assessing the need to record a liability for these guarantees, the Company considers its historical experience in being required to perform under the guarantees, the fair value of the collateral underlying these guarantees, and the financial condition of the applicable unconsolidated entities. In addition, the fair value of the collateral of unconsolidated entities is monitored to ensure that the related borrowings do not exceed the specified percentage of the value of the property securing the borrowings. As of September 30, 2021, no liability was recorded for the contingent aspects of any guarantees that were determined to be reasonably possible but not probable.
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Owned Inventory |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Owned Inventory | Inventory The components of our owned inventory are as follows as of September 30, 2021 and September 30, 2020:
Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including costs of the underlying lot, direct construction costs and capitalized indirect costs. As of September 30, 2021, we had 2,912 homes under construction, including 576 spec homes totaling $116.4 million (542 in-process spec homes totaling $105.2 million, and 34 finished spec homes totaling $11.2 million). As of September 30, 2020, we had 2,562 homes under construction, including 649 spec homes totaling $135.7 million (516 in-process spec units totaling $93.5 million, and 133 finished spec units totaling $42.2 million). Land under development consist principally of land acquisition, land development and other common costs. These land related costs are allocated to individual lots on a pro-rata basis, and the lot costs are transferred to homes under construction when home construction begins for the respective lots. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract. Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2). These assets are recorded at the lower of the carrying value or fair value less costs to sell (net realizable value). The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and land under development but excludes land held for future development and land held for sale (see Note 6 for additional information on capitalized interest). Total owned inventory by reportable segment is presented in the table below as of September 30, 2021 and September 30, 2020:
(a) Projects in progress include homes under construction, land under development, 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. Inventory Impairments The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented:
(a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. Projects in Progress Impairments We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. If the aggregate undiscounted cash flows are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the carrying value exceeds the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. During the years ended September 30, 2021 and September 30, 2020, we performed our quarterly projects in progress impairment assessments and determined that no community required an undiscounted cash flow analysis. No project in progress impairments were recognized during fiscal 2021 and 2020. During the year ended September 30, 2019, we performed discounted cash flow analyses on ten communities, nine in the West segment and one in the Southeast segment, and recognized a total of $110.0 million impairment charges related to our projects in progress. The table below presents, by reportable segment, details of the impairment charges taken on projects in progress for fiscal 2019:
(a) Amount represents the capitalized interest and indirect cost that were impaired. Capitalized interest and indirect costs are maintained within our Corporate and unallocated segment. During the second quarter of fiscal 2019, we recognized impairment charges of $147.6 million related to fifteen communities in our California submarkets, all of which were previously land held for future development assets. As of the beginning of the quarter, nine of these communities were included in projects in progress due to their activation for development in prior periods, while the remaining six communities were classified as land held for future development and were subsequently reclassified to land held for sale during the second quarter of fiscal 2019 (refer to below section titled "Land Held for Sale Impairments" for further discussion). We performed discounted cash flow analyses for the nine communities in projects in progress and recognized $109.0 million impairment charges, principally due to a reduction in price that is other than temporary based on competitive and market dynamics. Valuation assumptions for communities tested for impairment are specific to each community. The discount rate used depends on the development stage and expected duration of the project, local market conditions, and other specific factors. The estimated future cash flows for each community were determined based on the expected pace of closings and average sales price of the community less expected costs for land acquisition and land development, direct construction, overhead, and interest. 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 fiscal 2019:
Land Held for Sale Impairments Impairments on land held for sale generally represent write downs of these properties to net realizable value based on sales contracts, letters of intent, current market conditions and recent comparable land sale transactions, as applicable. Absent an executed sales contract, our assumptions related to land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results. During the fiscal year ended September 30, 2021, we recognized no land held for sales impairment charges compared to $1.3 million land held for sales impairment charges recognized during the fiscal year ended September 30, 2020. During the second quarter of fiscal 2019, concurrent with the California projects in progress impairment analyses described above, we performed a strategic review of our remaining land held for future development assets in California and determined to sell these parcels. As a consequence of change in strategy with respect to the future use of these assets, we recognized land held for sale impairments totaling $38.6 million for six communities in our West segment. AbandonmentsFrom time-to-time, we may determine to abandon lots or not exercise certain option contracts that are not projected to produce adequate results, or no longer fit with our long-term strategic plan. Additionally, in certain limited instances, we are forced to abandon lots due to seller non-performance, or permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record an abandonment charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. During the fiscal year ended September 30, 2021 and September 30, 2020, we recognized $0.9 million and $1.6 million abandonment charges, respectively. There were no abandonment charges recognized during our fiscal year ended September 30, 2019.
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Interest |
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Real Estate Inventory Capitalized Interest Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest | Interest Interest capitalized during the fiscal years ended September 30, 2021, 2020 and 2019 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:
(a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors.
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment The following table presents our property and equipment as of September 30, 2021 and September 30, 2020:
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Borrowings |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2021 and September 30, 2020:
As of September 30, 2021, the future maturities of our borrowings were as follows:
Secured Revolving Credit Facility The Secured Revolving Credit Facility provides working capital and letter of credit capacity of $250.0 million. The Facility is currently with four lenders. On September 24, 2021, the Company executed a Tenth Amendment (the ""Amendment") to the Facility. The Tenth Amendment, among other things, extended the termination date of the Facility from February 15, 2023 to February 15, 2024. The Facility allows us to issue letters of credit against the undrawn capacity. Subject to our option to cash collateralize our obligations under the Facility upon certain conditions, our obligations under the Facility are secured by liens on substantially all of our personal property and a significant portion of our owned real property. We also pledged approximately $1.1 billion of inventory assets to the Facility to collateralize potential future borrowings or letters of credit (in addition to the letters of credit already issued under the Facility, if any). As of September 30, 2021 and September 30, 2020, no borrowings and no letters of credit were outstanding under the Facility, resulting in a remaining capacity of $250.0 million. The Facility requires compliance with certain covenants, including negative covenants and financial covenants. As of September 30, 2021, the Company believes it was in compliance with all such covenants. Senior Unsecured Term Loan On September 9, 2019, the Company entered into a term loan agreement, which provides for a Senior Unsecured Term Loan. The principal balance as of September 30, 2021 is $50.0 million. The Term Loan will (1) mature in September 2022, with the remaining $50.0 million annual repayment installment due in September 2022; (2) bears interest at a fixed rate of 4.875%; and (3) includes an option to prepay, subject to certain conditions and the payment of certain premiums. The Term Loan contains covenants generally consistent with the covenants contained in the Facility. As of September 30, 2021, the Company believes it was in compliance with all such covenants. Letter of Credit Facilities The Company has entered into stand-alone, cash-secured letter of credit agreements with banks to maintain pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Facility). As of September 30, 2021 and September 30, 2020, the Company had letters of credit outstanding under these additional facilities of $21.8 million and $12.7 million, respectively, all of which were secured by cash collateral in restricted accounts totaling $22.3 million and $12.9 million, respectively. The Company may enter into additional arrangements to provide additional letter of credit capacity. In May 2018, the Company entered into a reimbursement agreement, which provides for the issuance of performance letters of credit, and an unsecured credit agreement that provides for the issuance of up to $50.0 million of standby letters of credit to backstop the Company's obligations under the reimbursement agreement (collectively, the "Bilateral Facility"). On June 17, 2020, the Company executed an Amendment No. 1 to the Bilateral Facility that extends the termination date of the agreement from June 10, 2021 to June 10, 2022. As of September 30, 2021, the total stated amount of performance letters of credit issued under the reimbursement agreement was $11.8 million (and the stated amount of the backstop standby letter of credit issued under the credit agreement was $40.0 million). The Company may enter into additional arrangements to provide greater letter of credit capacity. Senior Notes The Company's Senior Notes are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Facility. Each guarantor subsidiary is a 100% owned subsidiary of Beazer Homes. All unsecured Senior Notes rank equally in right of payment with all existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, including indebtedness under the Facility, if outstanding, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes, but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture. The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company believes it was in compliance with the covenants contained in the indentures of all of its Senior Notes as of September 30, 2021. During the fiscal year ended September 30, 2021, we repurchased $30.7 million of our outstanding 2027 Notes using cash on hand, resulting in a loss on extinguishment of debt of $2.0 million. We had no loss on extinguishment of debt during the fiscal year ended September 30, 2020. For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes:
Junior Subordinated Notes The Company's unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036 and have an aggregate principal balance of $100.8 million as of September 30, 2021. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, which was a weighted-average of 3.82% as of September 30, 2021. The obligations relating to these notes are subordinated to the Facility and the Senior Notes. In January 2010, the Company restructured $75.0 million of these notes and recorded them at their then estimated fair value. Over the remaining life of the Junior Subordinated Notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of September 30, 2021, the unamortized accretion was $30.6 million and will be amortized over the remaining life of the notes. The remaining $25.8 million of these notes are subject to the terms of the original agreement, have a floating interest rate equal to three-month LIBOR plus 2.45% per annum, resetting quarterly, and are redeemable in whole or in part at par value. The material terms of the $75.0 million restructured notes are identical to the terms of the original agreement except that the floating interest rate is subject to a floor of 4.25% and a cap of 9.25%. In addition, beginning on June 1, 2012, the Company has the option to redeem the $75.0 million principal balance in whole or in part at 75% of par value; beginning on June 1, 2022, the redemption price will increase by 1.785% annually. As of September 30, 2021, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes.
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Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingencies | Contingencies Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated. Warranty Reserves We currently provide a limited warranty ranging from to two years covering workmanship and materials per our defined quality standards. In addition, we provide a limited warranty for up to ten years covering only certain defined structural element failures. Our homebuilding work is performed by subcontractors who typically must agree to indemnify us with regard to their work and provide certificates of insurance demonstrating that they have met our insurance requirements and have named us as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. Warranty reserves are included in other liabilities within the consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review includes a quarterly analysis of the historical data and trends in warranty expense by division. An analysis by division allows us to consider market specific factors such as warranty experience, the number of home closings, the prices of homes, product mix, and other data in estimating warranty reserves. In addition, the analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in historical data and trends that may need to be separately estimated based on management's judgment of the ultimate cost of repair for that specific issue. While estimated warranty liabilities are adjusted each reporting period based on the results of our quarterly analyses, we may not accurately predict actual warranty costs, which could lead to significant changes in the reserve. In addition, we maintain third-party insurance, subject to applicable self-insured retentions, for most construction defects that we encounter in the normal course of business. We believe that our warranty and litigation accruals and third-party insurance are adequate to cover the ultimate resolution of our potential liabilities associated with known and anticipated warranty and construction defect related claims and litigation. However, there can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers; that we will be able to renew our insurance coverage or renew it at reasonable rates; that we will not be liable for damages, the cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence, or building related claims; or that claims will not arise out of events or circumstances not covered by insurance and/or not subject to effective indemnification agreements with our subcontractors. Changes in warranty reserves are as follows for the periods presented:
(a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home. Insurance Recoveries The Company has insurance policies that provide for the reimbursement of certain warranty costs incurred above specified thresholds for each period covered. Amounts recorded for anticipated insurance recoveries are reflected within the consolidated statements of income as a reduction of home construction expenses. Amounts not yet received from our insurer are recorded on a gross basis, without any reduction for the associated warranty expense, within accounts receivable on our consolidated balance sheets. Litigation In the normal course of business, we are subject to various lawsuits. We cannot predict or determine the timing or final outcome of these lawsuits or the effect that any adverse findings or determinations in pending lawsuits may have on us. In addition, an estimate of possible loss or range of loss, if any, cannot presently be made with respect to certain of these pending matters. An unfavorable determination in any of the pending lawsuits could result in the payment by us of substantial monetary damages that may not be fully covered by insurance. Further, the legal costs associated with the lawsuits and the amount of time required to be spent by management and our Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations, or cash flows. Claims Related to Inventory Impairment Charges. During the quarter ended March 31, 2019, we recognized inventory impairment charges related to 15 communities in California, all of which were previously land held for future development assets. Related to these inventory impairment charges, on June 5, 2019, a putative class action lawsuit was filed against Beazer Homes USA, Inc. and certain of our officers in the U.S. District Court for the Southern District of New York. The proposed class consisted of all persons and entities that acquired our securities between August 1, 2014 and May 2, 2019. On October 18, 2019, the plaintiffs filed a notice of voluntary dismissal of this case, and the Court subsequently entered an order dismissing the case. Beginning June 25, 2019, several shareholder derivative lawsuits relating to the same inventory impairment charges discussed above were filed against Beazer Homes USA, Inc., certain of our officers and members of our Board of Directors in the U.S. District Court for the Northern District of Georgia. The plaintiffs in these cases alleged breaches of fiduciary duty, unjust enrichment and violations of the federal securities laws. These federal actions were consolidated into a single derivative action. Additionally, a substantially similar derivative action was filed in the Superior Court of Fulton County, Georgia. On October 5, 2020, the Court granted a motion to dismiss the consolidated federal action but provided the plaintiffs an opportunity to attempt to amend their complaint. An amended complaint was filed in late October, and a motion to dismiss was filed thereafter. On March 30, 2021, the Court granted the motion to dismiss the consolidated federal action and dismissed the plaintiffs’ claims with prejudice. The plaintiffs then filed a notice of appeal but subsequently dismissed the appeal. On August 9, 2021, the plaintiffs in the Fulton County action voluntarily dismissed their complaint. Other Matters We and certain of our subsidiaries have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance. We have an accrual of $8.3 million and $5.0 million in other liabilities on our consolidated balance sheets related to litigation and other matters, excluding warranty, as of September 30, 2021 and 2020, respectively. We had outstanding letters of credit and surety bonds of $33.6 million and $282.3 million, respectively, as of September 30, 2021, related principally to our obligations to local governments to construct roads and other improvements in various developments.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements As of the dates presented, we had assets on our consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: •Level 1 – Quoted prices in active markets for identical assets or liabilities; •Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and •Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. Certain of our assets are required to be recorded at fair value on a recurring basis. The fair value of our deferred compensation plan assets is based on market-corroborated inputs (Level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recovered. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value on assets deemed to be impaired is determined based upon the type of asset being evaluated. Fair value of our owned inventory assets, when required to be calculated, is further discussed within Notes 2 and 5. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3. During the fiscal year ended September 30, 2021, we recognized no impairments on projects in progress and land held for sale. During the fiscal year ended September 30, 2020, we recognized no impairments on projects in progress and $1.3 million on land held for sale. During the fiscal year ended September 30, 2019, we recognized impairments of $110.0 million on projects in progress and $38.6 million on land held for sale. Determining within which hierarchical level an asset or liability falls requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table presents the period-end balances of assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented:
(a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirect costs related to the asset. (c) Amount represents the impairment-date fair value of the projects in progress land held for sale assets that were impaired during the period indicated. The fair value of cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, and amounts due under the Facility (if outstanding) approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value. The following table presents the carrying value and estimated fair value of certain other financial liabilities as of September 30, 2021 and September 30, 2020:
(a) Carrying amounts are net of unamortized debt issuance costs or accretion. (b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange.
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Operating Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases | Operating Leases The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Certain of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expense that do not depend on an index or rate. We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date. Operating lease expense is included as a component of general and administrative expenses in our consolidated statements of operations. For the fiscal years ended September 30, 2021 and September 30, 2020, we recorded operating lease expense of $4.3 million and $4.5 million, respectively. Under ASC Topic 840, Leases (ASC 840), the Company’s total rental expense was $5.8 million for the fiscal year ended September 30, 2019. Cash payments on lease liabilities during the fiscal years ended September 30, 2021 and September 30, 2020 totaled $4.8 million and $4.6 million, respectively. Sublease income and variable lease expenses are de minimis. At September 30, 2021 and September 30, 2020, weighted-average remaining lease term and discount rate were as follows:
The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2021:
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Other Liabilities |
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Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other Liabilities Other liabilities include the following as of September 30, 2021 and September 30, 2020:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented:
(a) Fiscal 2020 federal current benefit is primarily driven by the expected refund of our remaining alternative minimum tax credit balance due to the enactment of the CARES Act. Fiscal 2019 federal current benefit is primarily driven by the expected refund of half of our outstanding alternative minimum tax credit that became refundable due to the enactment of the Tax Cuts and Jobs Act. See Note 2 for further discussion. The expense from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented:
The principal differences between our effective tax rate and the U.S. federal statutory rate for fiscals 2021, 2020 and 2019 relate to state taxes, permanent differences and tax credits. Due to the effects of changes in our valuation allowance on our deferred tax balance, tax credits and changes in our unrecognized tax benefits, our effective tax rates in fiscal 2021, 2020, and 2019 are not meaningful metrics, as our income tax amounts were not directly correlated to the amount of our pretax income (loss) for those periods. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2021 and September 30, 2020:
As of September 30, 2021, our gross deferred tax assets above included $100.3 million for federal net operating loss carryforwards, $45.7 million for federal tax credits, and $34.9 million for state net operating loss carryforwards. The majority of our federal net operating loss carryforwards expire at various dates through our fiscal 2033, and the federal tax credits and majority of our state net operating losses expire at various dates through our fiscal 2041. As of September 30, 2021, valuation allowance of $29.1 million remains on various state attributes for which the Company has concluded it is not more likely than not that these attributes would be realized at that time. We experienced an “ownership change” as defined in Section 382 of the Internal Revenue Code (Section 382) as of January 12, 2010. Section 382 contains rules that limit the ability of a company that undergoes an “ownership change” to utilize its net operating loss carryforwards, tax credits and certain built-in losses or deductions recognized during the five-year period after the ownership change to offset future taxable income. Because the five-year period has expired, we have determined the actual impact and final classification of those amounts, which are properly reflected in the amounts presented above. There can be no assurance that another ownership change, as defined in the tax law, will not occur. If another “ownership change” occurs, a new annual limitation on the utilization of net operating loss carryforwards, tax credits and built-in losses would be determined as of that date. This limitation, should one be required in the future, is subject to assumptions and estimates that could differ from actual results. Valuation Allowance A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, we assess the need to establish valuation allowances for deferred tax assets periodically based on the more-likely-than-not realization threshold criterion. In our assessment, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, the Company's experience with operating loss carryforwards and tax credit carryforwards not expiring unused, the Section 382 limitation on our ability to carryforward pre-ownership change net operating losses, recognized built-in losses or deductions and tax planning alternatives. Our assessment, while rooted in actual Company performance, are highly subjective and rely on certain estimates, including forecasts, which could differ materially from actual results. In fiscal 2021, our conclusions about our ability to more likely than not realize all of our federal and certain state tax attributes remain consistent with our prior determinations. We considered positive factors including significant increases in our current earnings, interest savings from our debt reduction strategies, housing demand and price appreciation, and our backlog. The negative factors included the overall health of the broader economy, labor shortages and unemployment levels, as well as potential increases in mortgage interest rates. As of September 30, 2021, the Company will have to cumulatively generate approximately $927.4 million in pre-tax income over the course of its carryforward period to realize its deferred tax assets prior to their expiration, which, as previously discussed, is the Company's fiscal 2041. Unrecognized Tax Benefits A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented:
If we were to recognize our $3.4 million of gross unrecognized tax benefits remaining as of September 30, 2021, substantially all would impact our effective tax rate. Additionally, we had no accrued interest and penalties as of September 30, 2021 and September 30, 2020. If applicable, we would record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. In the normal course of business, we are subject to audits by federal and state tax authorities regarding various tax liabilities. The statute of limitations for our major tax jurisdictions remains open for examination for fiscal year 2007 and subsequent years. As of September 30, 2021, we do not expect that any of our uncertain tax positions will reverse within the next twelve months.
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Stockholders' Equity |
12 Months Ended |
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Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock The Company currently has no shares of preferred stock outstanding. Common Stock As of September 30, 2021, the Company had 63,000,000 shares of common stock authorized and 31,294,198 shares both issued and outstanding. Common Stock Repurchases During the first quarter of fiscal 2019, the Company's Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. As part of this program, the Company has repurchased common stock during fiscal 2019 and 2020 through open market transactions, 10b5-1 plans, and accelerated share repurchase (ASR) agreements. All shares have been retired upon repurchase. The aggregate reduction to stockholders’ equity related to share repurchases during the fiscal year ended September 30, 2020 and September 30, 2019 was $3.3 million and $34.6 million, respectively. No share repurchases were made during fiscal 2021. As of September 30, 2021, the remaining availability of the share repurchase program was $12.0 million. Dividends The indentures under which our Senior Notes were issued contain certain restrictive covenants, including limitations on our payment of dividends. There were no dividends paid during our fiscal 2021, 2020, or 2019. Section 382 Rights Agreement Prior to fiscal 2019, the Company’s stockholders had approved amendments to the Company’s Certificate of Incorporation (the Protective Amendment) designed to preserve the value of certain tax assets associated with net operating loss carryforwards under Section 382. In February 2019, the Company’s stockholders approved an extension of the term of the Protective Amendment and approved a Section 382 Rights Agreement that was adopted by our Board of Directors. These instruments are intended to act as deterrents to any person or group, together with their affiliates and associates, from being or becoming the beneficial owner of 4.95% or more of the Company’s common stock.
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Retirement and Deferred Compensation Plan |
12 Months Ended |
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Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement and Deferred Compensation Plan | Retirement and Deferred Compensation Plans 401(k) Retirement Plan The Company sponsors a defined-contribution plan that is a tax-qualified retirement plan under section 401(k) of the Internal Revenue Code (the Plan). Substantially all employees are eligible for participation in the Plan. Participants may defer and contribute from 1% to 80% of their salary to the Plan, with certain limitations on highly compensated individuals. The Company matches 50% of the first 6% of the participant's contributions. The participant's contributions vest immediately, while the Company's contributions vest over five years. The total Company contributions for the fiscal years ended September 30, 2021, 2020, and 2019 were approximately $3.2 million, $3.4 million, and $3.6 million, respectively. During fiscal 2021, 2020, and 2019, participants forfeited $0.8 million, $1.0 million, and $0.7 million, respectively, of unvested matching contributions. Deferred Compensation Plan The Beazer Homes USA, Inc. Deferred Compensation Plan (the DCP) is a non-qualified deferred compensation plan for a select group of executives and highly compensated employees. The DCP allows the executives to defer current compensation on a pre-tax basis to a future year, until termination of employment. The objectives of the DCP are to assist executives with financial planning and capital accumulation and to provide the Company with a method of attracting, rewarding and retaining executives. Participation in the DCP is voluntary. Beazer Homes may voluntarily make a contribution to the participants' DCP accounts. Deferred compensation assets of $2.7 million and $2.3 million as of September 30, 2021 and 2020, respectively, are included in other assets on our consolidated balance sheets and are recorded at fair value. Deferred compensation liabilities of $7.2 million and $5.6 million as of September 30, 2021 and 2020, respectively, are included in other liabilities on our consolidated balance sheets. For the years ended September 30, 2021, 2020 and 2019, the Company contributed approximately $0.2 million, $0.2 million, and $0.2 million, respectively, to the DCP in the form of voluntary contributions.
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based CompensationThe Company has shares available for grant under the Amended and Restated 2014 Beazer Homes USA, Inc. Long-Term Incentive Plan (the 2014 Plan). We issue new shares upon the exercise of stock options and the vesting of restricted stock awards. In cases of forfeitures and cancellations, those shares are returned to the share pool for future issuance. As of September 30, 2021, we had 2.1 million shares of common stock for issuance under our various equity incentive plans, of which 1.9 million shares are available for future grants. Stock-based compensation expense is included in general and administrative expenses in our consolidated statements of operations. The following table summarizes stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2021, 2020, and 2019, respectively.
Stock Options Stock options have an exercise price equal to the fair market value of the common stock on the grant date, generally vest or three years after the date of grant, and may be exercised thereafter until their expiration, subject to forfeiture upon termination of employment as provided in the applicable plan. Under certain conditions of retirement, eligible participants may receive a partial vesting of stock options. Stock options generally expire on the eighth anniversary from the date such options were granted, depending on the terms of the award. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model (Black-Scholes Model). As of September 30, 2021, the intrinsic value of our stock options outstanding and vested and exercisable were $0.1 million and $0.1 million, respectively. As of both September 30, 2021 and September 30, 2020, there was less than $0.1 million of total unrecognized compensation cost related to unvested stock options. The cost remaining as of September 30, 2021 is expected to be recognized over a weighted-average period of 0.4 years. During fiscal 2018, the Compensation Committee of our Board of Directors approved the Employee Stock Option Program (ESOP). This program is available to all full-time employees and is designed to enable employees to share in potential price appreciation of the Company's stock. The ESOP matches stock purchases made by eligible employees meeting certain conditions with an option to purchase an additional share of the Company's shares on a one-to-one basis. The exercise price of the options granted is equal to the closing price of the Company's stock on the day the underlying shares are purchased by the employee, which is also the ESOP grant date. The options will vest on the second anniversary of the date of grant but are forfeited if (1) the eligible employee no longer works for the Company or (2) the underlying shares are sold before the two-year vesting period is over. The total number of options available under the ESOP is limited to 100,000, of which 31,732 options were granted through the end of fiscal 2021. During the year ended September 30, 2021, we issued no stock options. We used the following valuation assumptions for stock options granted for the following prior periods presented:
We relied upon a combination of the observed exercise behavior of our prior grants with similar characteristics, the vesting schedule of the current grants, and an index of peer companies with similar grant characteristics to determine the expected life of the options granted. We considered historic returns of our stock and the implied volatility of our publicly-traded options in determining expected volatility. We assumed no dividends would be paid since our Board of Directors has suspended payment of dividends indefinitely and payment of dividends is restricted under our Senior Note covenants. The risk-free interest rate is based on the term structure of interest rates at the time of the option grant. A summary of stock option activity for the periods presented is as follows:
The following table summarizes information about stock options outstanding and exercisable as of September 30, 2021:
Information pertaining to the intrinsic value of options exercised and the fair market value of options that vested is below:
Restricted Stock Awards The fair value of each restricted stock award with market conditions is estimated on the date of grant using the Monte Carlo valuation method. The fair value of restricted stock awards without market conditions is based on the market price of the Company's common stock on the date of grant. If applicable, the cash-settled component of any awards granted to employees is accounted for as a liability, which is adjusted to fair value each reporting period until vested. Compensation cost arising from restricted stock awards granted to employees is recognized as an expense using the straight-line method over the vesting period. As of September 30, 2021 and September 30, 2020, there was $7.2 million and $9.0 million, respectively, of total unrecognized compensation cost related to unvested restricted stock awards. The cost remaining as of September 30, 2021 is expected to be recognized over a weighted-average period of 1.4 years. During fiscal 2021, we issued time-based restricted stock awards and performance-based restricted stock awards with a payout subject to certain performance and market conditions. Each award type is discussed below. Performance-Based Restricted Stock Awards During the year ended September 30, 2021, we issued 103,366 shares of performance-based restricted stock (2021 Performance Shares) to our executive officers and certain other employees that also have market conditions. The 2021 Performance Shares are structured to be awarded based on the Company's performance under three pre-determined financial and operational metrics at the end of the three-year performance period. After determining the number of shares earned based on the financial and operational metrics, which can range from 0% to 175% of the targeted number of shares, the award will be subject to further upward or downward adjustment by as much as 20% based on the Company's relative total shareholder return (TSR) compared against the S&P Homebuilders Select Industry Index during the three-year performance period. The 2021 Performance Shares were valued using the Monte Carlo valuation model due to the existence of the TSR market condition and had an estimated fair value of $15.24 per share on the date of grant. A Monte Carlo valuation model requires the following inputs: (1) the expected dividend yield on the underlying stock; (2) the expected price volatility of the underlying stock; (3) the risk-free interest rate for the period corresponding with the expected term of the award; and (4) the fair value of the underlying stock. For the Company and each member of the peer group, the following inputs were used, as applicable, in the Monte Carlo valuation model to determine the fair value as of the grant date for performance-based restricted stock granted in each of the fiscal years ended. The methodology used to determine these assumptions is similar to the Black-Scholes Model; however, the expected term is determined by the model in the Monte Carlo simulation.
Each of our performance share represents a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2019, we cash settled 135,337 shares earned above target level based on the performance level achieved under our 2017 performance-based award plan. The cash payment totaled $2.1 million, which was reflected as a reduction to paid-in capital in the accompanying condensed consolidated statements of stockholders' equity. We have not cash settled any such performance-based awards prior to or subsequent to the November 2019 transaction, and we have no current plans to cash settle any additional performance-based restricted shares in the future. The performance criteria of the 2019 Performance Share grant were satisfied as of September 30, 2021. Based on the actual performance level achieved, 552,417 performance-based restricted stock awards from the 2019 Performance Share grant cliff vested at the end of the three-year vesting period on November 15, 2021. Of the total $6.8 million compensation cost related to these awards, we have recognized $4.1 million, $1.3 million, and $1.1 million during the fiscal years ended September 30, 2021, 2020, and 2019, respectively. The remaining $0.3 million of unrecognized compensation cost will be recognized in the first quarter of fiscal 2022. Time-Based Restricted Stock Awards During the year ended September 30, 2021, we also issued 251,788 shares of time-based restricted stock (Restricted Shares) to our directors, executive officers, and certain other employees. Restricted Shares are valued based on the market price of the Company's common stock on the date of the grant. The Restricted Shares granted to our non-employee directors vest on the first anniversary of the grant, while the Restricted Shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant. Activity relating to all restricted stock awards for the periods presented is as follows:
(a) Grant and vesting activity during the year ended September 30, 2021 include 60,930 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period.
(a) Grant and vesting activity during the year ended September 30, 2019 include 86,050 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period.
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Earnings Per Share | Earnings Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted income (loss) per share adjusts the basic income (loss) per share for the effects of any potentially dilutive securities in periods in which the Company has net income and such effects are dilutive under the treasury stock method. Following is a summary of the components of basic and diluted income (loss) per share for the periods presented:
(a) The following potentially dilutive shares were excluded from the calculation of diluted income (loss) per share as a result of their anti-dilutive effect. Due to the reported net losses for the year ended September 30, 2019, all common stock equivalents were excluded from the computation of diluted loss per share for fiscal year 2019 because inclusion would have resulted in anti-dilution.
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We currently operate in 13 states that are grouped into three homebuilding segments based on geography. Revenues from our homebuilding segments are derived from the sale of homes that we construct and from land and lot sales. Our reportable segments have been determined on a basis that is used internally by management for evaluating segment performance and resource allocations. We have considered the applicable aggregation criteria, and have combined our homebuilding operations into three reportable segments as follows: West: Arizona, California, Nevada, and Texas East: Delaware, Indiana, Maryland, New Jersey(a), Tennessee, and Virginia Southeast: Florida, Georgia, North Carolina, and South Carolina (a) During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, it is included in this listing because the segment information below continues to include New Jersey. Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding and land sales and other revenue less home construction, land development and land sales expense, commission expense, depreciation and amortization, and certain G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are those described in Note 2. The following tables contain our revenue, operating income (loss), and depreciation and amortization by segment for the periods presented:
(a) Operating income (loss) is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5 for further information). For the year ended September 30, 2021, September 30, 2020, and September 30, 2019, we recognized $0.9 million, $1.7 million and $131.7 million of inventory impairment and abandonment charges, respectively, at our three reportable segments. (b) Corporate and unallocated operating loss includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. For the year ended September 30, 2021, there were no impairments of capitalized interest and capitalized indirect costs. For the year ended September 30, 2020, and September 30, 2019, we wrote off $1.2 million, and $16.9 million of capitalized interest and capitalized indirect costs, respectively (see Note 5 for further information).
(a) Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented:
The following table presents assets by segment as of September 30, 2021 and 2020:
(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations We continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase stockholder value. This review entails an evaluation of both external market factors and our position in each market, and over time has resulted in the decision to discontinue certain of our homebuilding operations. We have classified the results of operations of our discontinued operations separately in the accompanying consolidated statements of operations for all periods presented. There were no material assets or liabilities related to our discontinued operations as of September 30, 2021 or September 30, 2020. Discontinued operations were not segregated in the consolidated statements of cash flows. Therefore, amounts for certain captions in the consolidated statements of cash flows will not agree with the respective data in the consolidated statements of operations. The results of our discontinued operations in the consolidated statements of operations for the periods presented were as follows:
(a) Home construction and land sales expenses for the year ended September 30, 2020 include a $1.3 million estimated litigation settlement accrual relating to a case regarding past construction defects in our discontinued operations. Pursuant to the settlement agreement, the Company paid $1.4 million during fiscal 2021.
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Selected Quarterly Financial Data (Unaudited) |
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Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited)Quarterly financial data is no longer required as the Company has adopted the changes to Item 302 of Regulation S-K contained in SEC Release No. 33-10890. |
Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and present the consolidated financial position, income, stockholders' equity, and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income (loss) is equivalent to our comprehensive income (loss), so we have not presented a separate statement of comprehensive income (loss). In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying consolidated statements of operations for all periods presented (see Note 19 for a further discussion of our discontinued operations). Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. Our fiscal year 2020 began on October 1, 2019 and ended on September 30, 2020. Our fiscal year 2019 began on October 1, 2018 and ended on September 30, 2019.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates.
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Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted CashWe consider highly liquid investments with maturities of three months or less when acquired to be cash equivalents. As of September 30, 2021, the majority of our cash and cash equivalents were on demand deposits with major banks. These assets were valued at par and had no withdrawal restrictions. Restricted cash includes cash restricted by state law or a contractual requirement, including cash collateral for our outstanding cash-secured letters of credit (refer to Note 8). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivables and Allowance | Accounts Receivable and Allowance Accounts receivable include escrow deposits to be received from title companies associated with closed homes, receivables from municipalities related to the development of utilities or other infrastructure, land banker reimbursements to be received related to land development costs, rebates to be received from our suppliers and other miscellaneous receivables. Generally, we receive cash from title companies within a few days of the home being closed. We regularly review our receivable balances for collectability and record an allowance against any receivable for which collectability is deemed to be uncertain.
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Owned Inventory | Owned InventoryOwned inventory includes land acquisition costs, land development costs, home construction costs, capitalized interest, real estate taxes, direct overhead costs and capitalized indirect costs incurred during land development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and other common costs (both incurred and estimated to be incurred) are allocated to individual lots on a pro-rata basis, and the cost of individual lots is transferred to homes under construction when home construction begins. Changes in estimated land and other common costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. Home construction costs are accumulated on a per-home basis. Cost of home closings includes the specific construction costs of the home and the allocated lot costs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Valuation - Projects in Progress | Inventory Valuation - Projects in Progress Projects in progress inventory includes homes under construction and land under development grouped together as communities. Generally, upon the commencement of land development activities, it may take to five years (depending on, among other things, the size of the community and its sales pace) to fully develop, sell, construct and close all the homes in a typical community. Projects in progress are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. We evaluate, among other things, the average sales price and margins on recent home closings, homes in backlog and expected future home sales for each community. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. This undiscounted cash flow analysis requires important assumptions including, among other things, the current and future home sale prices, margins and the pace of closings to occur into the future. For those communities whose carrying values exceed the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. The fair value of the community is estimated using the present value of the estimated future cash flows using discount rates commensurate with the risk associated with the underlying community. Should the estimates or expectations used in determining estimated fair values deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to these assets, and such amounts could be material.
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Inventory Valuation - Land Held for Future Development and Sale | Inventory Valuation - Land Held for Future Development Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for future development is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, such as the future enactment of a development plan or the occurrence of outside events. We evaluate the potential plans for each community in land held for future development if changes in facts and circumstances occur that would give rise to a more detailed analysis for a change in the status of a community. Inventory Valuation - Land Held for Sale Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets. We record land held for sale at the lower of the asset's carrying value or fair value less costs to sell (net realizable value). Land is classified as held for sale when the following criteria are met: •management has the authority and commits to a plan to sell the land; •the land is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of land assets; •there is an active program to locate a buyer and the plan to sell the property has been initiated; •the sale of the land is probable within one year; •the property is being actively marketed at a reasonable sale price relative to its current fair value; and •it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We evaluate the net realizable value of a land held for sale asset when indicators of impairment are present. In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals, any recent legitimate offers and listing prices of similar properties. If the current carrying value of the asset exceeds the estimated fair value less cost to sell, the asset is impaired and written down to its estimated fair value less cost to sell. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our analysis. Our assumptions about land sales prices require significant judgment because the market is highly sensitive to changes in economic conditions. We calculate the estimated fair values of land held for sale based on current market conditions and assumptions made by management, which may differ materially from actual results and may result in additional impairments if market conditions deteriorate.
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Lot Option Agreements and Variable Interest Entities (VEI) | Lot Option Agreements and Variable Interest Entities (VIE) In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option contracts. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all. The following table provides a summary of our interests in lot option agreements as of September 30, 2021 and September 30, 2020:
In accordance with Accounting Standards Codification (ASC) Topic 810, Consolidation (ASC 810), if the entity holding the land under option is a variable VIE, the Company's deposit represents a variable interest in that entity. ASC 810 requires a company consolidate a VIE if the company is determined to be the primary beneficiary. To determine whether we are the primary beneficiary of the VIE, we first evaluate whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to, (1) the ability to determine the budget and scope of land development work, if any; (2) the ability to control financing decisions for the VIE; (3) the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with Beazer; and (4) the ability to change or amend the existing option contract with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE and thus do not consolidate the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE's losses or, if no party absorbs the majority of such losses, if we will benefit from potentially a significant amount of the VIE's expected gains. If we are the primary beneficiary of the VIE, we will consolidate the VIE even though creditors of the VIE have no recourse against the Company. For those we consolidate, we record the remaining contractual purchase price under the applicable lot option agreement, net of option deposits already paid, to consolidated inventory not owned with an offsetting increase to obligations related to consolidated inventory not owned on our consolidated balance sheets. Also, to reflect the total purchase price of this inventory on a consolidated basis, we present the related option deposits as consolidated inventory not owned. No VIEs required consolidation as of September 2021 and 2020 because we have determined that we were not the primary beneficiary of any VIEs.
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Investments in Unconsolidated Entities | Investments in Unconsolidated EntitiesWe participate in a number of joint ventures and other investments in which we have less than a controlling interest. We enter into the majority of these investments with land developers, other homebuilders and financial partners to acquire attractive land positions, to manage our risk profile and to leverage our capital base. The land positions are developed into finished lots for sale to the unconsolidated entity's members or other third parties. We recognize our share of equity in income (loss) and profits (losses) from the sale of lots to other buyers. Our share of profits from lots we purchase from the unconsolidated entities is deferred and treated as a reduction of the cost of the land purchased from the unconsolidated entity. Such profits are subsequently recognized at the time the home closes and title passes to the homebuyer. We evaluate our investments in unconsolidated entities for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of our investment in the unconsolidated entity has occurred that is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value, which is determined primarily using a discounted cash flow model. Our unconsolidated entities typically obtain secured acquisition, development and construction financing. We account for our interest in unconsolidated entities under the equity method. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and Equipment, Net Our property and equipment is recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis based on estimated useful lives as follows:
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Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets from the businesses that we acquire. The Company's entire goodwill balance is recorded in our Southeast reportable segment. The Company evaluates goodwill for impairment at the reporting unit level annually during the fourth quarter or more often if indicators of impairment exist. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of the reporting unit is less than the carrying value, then a quantitative assessment is performed. The fair value of the reporting unit is estimated using a combination of the income approach, utilizing the discounted cash flow method, and the market approach, utilizing readily available market valuation multiples. If the estimated fair value of the reporting unit is less than its carrying value, an impairment will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Determining the fair value of a reporting unit under the quantitative goodwill impairment assessment requires the Company to make estimates and assumptions regarding future operating results, cash flows (including timing), discount rates, expected growth rates, capital expenditures and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of the factors used in assessing fair value are outside the control of management, and these assumptions and estimates may change in future periods. During the fourth quarter of 2021, the Company performed its annual goodwill impairment analysis and concluded our goodwill was not impaired.
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Other Assets | Other Assets Our other assets principally include prepaid expenses, unamortized debt issuance costs on our Secured Revolving Credit Facility, and assets related to our deferred compensation plan (refer to Note 15 for a discussion of our deferred compensation plan).
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Other Liabilities | Other LiabilitiesOur other liabilities principally include accrued compensations and benefits, accrued interest on our outstanding borrowings, customer deposits, accrued warranty expense, litigation accruals, income tax liabilities and other accruals related to our operations. Refer to Note 12 for a detail of our other liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income TaxesOur provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities result from deductible or taxable amounts in future years when such assets and liabilities are recovered or settled, and are measured using the enacted tax rates and laws that are expected to be in effect when the assets and liabilities are recovered or settled. We include any estimated interest and penalties on tax related matters in income taxes payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. We record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in ASC Topic 606, Revenue from Contracts with Customers. •Identify the contract(s) with a customer •Identify the performance obligations •Determine the transaction price •Allocate the transaction price •Recognize revenue when the performance obligations are met The following table presents our total revenue disaggregated by revenue stream:
(a) Please see Note 18 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $28.5 million and $18.9 million as of September 30, 2021 and September 30, 2020, respectively. Of the customer liabilities outstanding as of September 30, 2020, $18.1 million was recognized in revenue during the year ended September 30, 2021, upon closing of the related homes, and $0.8 million was refunded to or forfeited by the buyer. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Home Construction Expenses Home construction expenses includes the specific construction costs of the home and the allocated lot costs (land acquisition, land development and other common costs are allocated to individual lots on a pro-rata basis based on the number of lots remaining to close). All home closing costs are charged to home construction expenses in the period when the revenues from home closing are recognized. Sales discounts and incentives include cash discounts, discounts on home building options, option upgrades and seller-paid financing or closing costs. Cash discounts are accounted for as a reduction in the sale price of the home, thereby decreasing the amount of revenue we recognize on that closing. All sales incentives other than cash discounts are recognized as a cost of selling the home and are included in home construction expenses. Estimated future warranty costs are charged to home construction expense in the period when the revenues from home closings are recognized. Such estimated warranty costs generally range from 0.3% to 1.0% of total revenue recognized for each home closed. Additional warranty costs are charged to home construction expenses as necessary based on management's estimate of the costs to remediate existing claims. See Note 9 for a more detailed discussion of warranty costs and related reserves.
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Fair Value Measurements | Fair Value Measurements Certain of our assets are required to be recorded at fair value on a recurring basis, for example, the fair value of our deferred compensation plan assets are based on market-corroborated inputs (level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recovered (level 3). For example, we review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value is based on estimated cash flows discounted for market risks associated with the long-lived assets. The fair value of certain of our financial instruments approximates their carrying amounts due to the short maturity of these assets and liabilities or the variable interest rates on such obligations. The fair value of our publicly-held debt is generally estimated based on quoted bid prices for these instruments (level 2). Certain of our other financial liabilities are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. See Note 10 for additional discussion of our fair value measurements.
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Stock-Based Compensation | Stock-Based CompensationWe use the Black-Scholes option-pricing model to value our stock option grants. Restricted stock awards with market conditions are valued using the Monte Carlo valuation method. Other restricted stock awards without market conditions are valued based on the market price of the Company's common stock on the date of the grant. In addition, we reflect the benefits of tax deductions in excess of recognized compensation cost as an operating cash outflow. Compensation cost arising from all stock-based compensation awards is recognized as expense using the straight-line method over the vesting period and is included in G&A in our consolidated statements of operations. See Note 16 for additional discussion of our stock-based compensation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the effect of adopting the new guidance on its consolidated financial statements and related disclosures.
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Basis of Presentation and Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of interests in lot option agreements | The following table provides a summary of our interests in lot option agreements as of September 30, 2021 and September 30, 2020:
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Schedule of estimated useful lives | Depreciation is computed on a straight-line basis based on estimated useful lives as follows:
The following table presents our property and equipment as of September 30, 2021 and September 30, 2020:
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Schedule of revenue recognition | The following table presents our total revenue disaggregated by revenue stream:
(a) Please see Note 18 for total revenue disaggregated by reportable segment.
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Supplemental Cash Flow Information (Tables) |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental disclosure of non-cash activity | The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented:
(a) On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC Topic 842, Leases (ASC 842). Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets. (b) Represents additional leases that commenced during the year ended September 30, 2021 and September 30, 2020.
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Investments in Unconsolidated Entities (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investments in unconsolidated joint ventures, total equity and outstanding borrowings | The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2021 and September 30, 2020:
Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented:
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Owned Inventory (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventory | The components of our owned inventory are as follows as of September 30, 2021 and September 30, 2020:
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Schedule of total inventory by segment | Total owned inventory by reportable segment is presented in the table below as of September 30, 2021 and September 30, 2020:
(a) Projects in progress include homes under construction, land under development, 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.
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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:
(a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment.
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Schedule of Discounted Cash Flow Analysis | The table below presents, by reportable segment, details of the impairment charges taken on projects in progress for fiscal 2019:
(a) Amount represents the capitalized interest and indirect cost that were impaired. Capitalized interest and indirect costs are maintained within our Corporate and unallocated segment.
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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 fiscal 2019:
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Interest (Tables) |
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Real Estate Inventory Capitalized Interest Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of capitalized interest costs | The following table presents certain information regarding interest for the periods presented:
(a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors.
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property and equipment | Depreciation is computed on a straight-line basis based on estimated useful lives as follows:
The following table presents our property and equipment as of September 30, 2021 and September 30, 2020:
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Borrowings (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2021 and September 30, 2020:
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Schedule of maturities of long-term debt | As of September 30, 2021, the future maturities of our borrowings were as follows:
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Schedule of debt instrument redemption | For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes:
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Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of warranty reserves | Changes in warranty reserves are as follows for the periods presented:
(a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home.
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value assets measured on a non-recurring basis | These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented:
(a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirect costs related to the asset. (c) Amount represents the impairment-date fair value of the projects in progress land held for sale assets that were impaired during the period indicated.
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Schedule of carrying values and estimated fair values of other financial assets and liabilities | The following table presents the carrying value and estimated fair value of certain other financial liabilities as of September 30, 2021 and September 30, 2020:
(a) Carrying amounts are net of unamortized debt issuance costs or accretion. (b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange.
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Operating Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease cost | At September 30, 2021 and September 30, 2020, weighted-average remaining lease term and discount rate were as follows:
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Lessee, operating lease, liability, maturity | The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2021:
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Other Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other liabilities | Other liabilities include the following as of September 30, 2021 and September 30, 2020:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of income tax expense (benefit) | The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented:
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Schedule of effective income tax rate reconciliation | The expense from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented:
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Schedule of deferred tax assets and liabilities | The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2021 and September 30, 2020:
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Schedule of unrecognized tax benefits roll forward | A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented:
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of allocation of share-based compensation costs by plan | The following table summarizes stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2021, 2020, and 2019, respectively.
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Schedule of assumptions for stock option activity | We used the following valuation assumptions for stock options granted for the following prior periods presented:
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Schedule of stock options and SSARs outstanding | A summary of stock option activity for the periods presented is as follows:
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Schedule of stock options and SSARS outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable as of September 30, 2021:
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Schedule of stock options exercised and vested | Information pertaining to the intrinsic value of options exercised and the fair market value of options that vested is below:
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Schedule of nonvested stock awards and performance shares | Activity relating to all restricted stock awards for the periods presented is as follows:
(a) Grant and vesting activity during the year ended September 30, 2021 include 60,930 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period.
(a) Grant and vesting activity during the year ended September 30, 2019 include 86,050 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period.
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted earnings per share | Following is a summary of the components of basic and diluted income (loss) per share for the periods presented:
(a) The following potentially dilutive shares were excluded from the calculation of diluted income (loss) per share as a result of their anti-dilutive effect. Due to the reported net losses for the year ended September 30, 2019, all common stock equivalents were excluded from the computation of diluted loss per share for fiscal year 2019 because inclusion would have resulted in anti-dilution.
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Schedule of antidilutive securities |
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information | The following tables contain our revenue, operating income (loss), and depreciation and amortization by segment for the periods presented:
(a) Operating income (loss) is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5 for further information). For the year ended September 30, 2021, September 30, 2020, and September 30, 2019, we recognized $0.9 million, $1.7 million and $131.7 million of inventory impairment and abandonment charges, respectively, at our three reportable segments. (b) Corporate and unallocated operating loss includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. For the year ended September 30, 2021, there were no impairments of capitalized interest and capitalized indirect costs. For the year ended September 30, 2020, and September 30, 2019, we wrote off $1.2 million, and $16.9 million of capitalized interest and capitalized indirect costs, respectively (see Note 5 for further information).
(a) Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented:
The following table presents assets by segment as of September 30, 2021 and 2020:
(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments.
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Discontinued Operations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of results of discontinued operations | The results of our discontinued operations in the consolidated statements of operations for the periods presented were as follows:
(a) Home construction and land sales expenses for the year ended September 30, 2020 include a $1.3 million estimated litigation settlement accrual relating to a case regarding past construction defects in our discontinued operations. Pursuant to the settlement agreement, the Company paid $1.4 million during fiscal 2021.
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Description of Business (Details) |
Sep. 30, 2021
state
region
|
---|---|
Description of Business [Abstract] | |
Number of states in which home building segments operate | state | 13 |
Number of regions in which entity operates | region | 3 |
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Real Estate Properties [Line Items] | ||
Deposits & Non-refundable Pre-acquisition Costs Incurred | $ 114,688 | $ 75,921 |
Remaining Obligation, Net of Cash Deposits | $ 676,149 | $ 395,133 |
Basis of Presentation and Summary of Significant Accounting Policies - Property Plant and Equipment (Details) |
12 Months Ended |
---|---|
Sep. 30, 2021 | |
Buildings | Minimum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 25 years |
Buildings | Maximum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 30 years |
Information systems | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 5 years |
Furniture, fixtures, computer and office equipment | Minimum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Furniture, fixtures, computer and office equipment | Maximum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 7 years |
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | $ 2,140,303 | $ 2,127,077 | $ 2,087,739 |
Homebuilding revenue | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | 2,127,700 | 2,116,910 | 2,077,245 |
Land sales and other revenue | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | $ 12,603 | $ 10,167 | $ 10,494 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Oct. 01, 2019 |
|
Supplemental disclosure of non-cash activity: | ||||
Operating lease right-of-use assets | $ 12,344 | $ 13,103 | ||
Operating lease liabilities | 14,154 | 15,333 | ||
Increase in operating leases right-of-use assets | 2,905 | 3,104 | $ 0 | |
Increase in operating leases liabilities | 2,905 | 3,104 | 0 | |
Supplemental disclosure of cash activity: | ||||
Interest payments | 74,171 | 71,888 | 101,109 | |
Income tax payments | 3,462 | 546 | 766 | |
Tax refunds received | 1,078 | 315 | 12 | |
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 246,715 | 327,693 | 106,741 | |
Restricted cash | 27,428 | 14,835 | 16,053 | |
Cash, Cash Equivalents, and Restricted Cash | $ 274,143 | 342,528 | $ 122,794 | |
Accounting Standards Update 2016-02 | ||||
Supplemental disclosure of non-cash activity: | ||||
Operating lease right-of-use assets | 13,895 | $ 13,900 | ||
Operating lease liabilities | $ 16,028 | $ 16,000 |
Investments in Unconsolidated Entities - Unconsolidated Entities (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated entities | $ 4,464 | $ 4,003 | ||
Total equity of unconsolidated entities | 724,884 | 593,171 | $ 538,754 | $ 644,027 |
Total outstanding borrowings of unconsolidated entities | 12,708 | 8,807 | ||
Equity in income of unconsolidated entities | 594 | 347 | $ 404 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total equity of unconsolidated entities | $ 7,316 | $ 7,079 |
Investments in Unconsolidated Entities - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Schedule of Equity Method Investments [Line Items] | |||
Impairment of unconsolidated entity investment | $ 0 | $ 0 | $ 0 |
Financial Guarantee | |||
Schedule of Equity Method Investments [Line Items] | |||
Outstanding guarantees | $ 0 | $ 0 |
Owned Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
---|---|---|---|---|
Real Estate [Abstract] | ||||
Homes under construction | $ 648,283 | $ 525,021 | ||
Land under development | 648,404 | 589,763 | ||
Land held for future development | 19,879 | 28,531 | ||
Land held for sale | 9,179 | 12,622 | ||
Capitalized interest | 106,985 | 119,659 | $ 136,565 | $ 144,645 |
Model homes | 68,872 | 75,142 | ||
Total owned inventory | $ 1,501,602 | $ 1,350,738 |
Owned Inventory - Quantitative Unobservable Inputs (Details) $ in Thousands |
12 Months Ended |
---|---|
Sep. 30, 2019
USD ($)
contract
| |
Minimum | |
Quantitative unobservable inputs for inventory impairment [Line Items] | |
Average selling price (in thousands) | $ | $ 350 |
Closings per community per month | contract | 1 |
Discount rate | 0.147 |
Maximum | |
Quantitative unobservable inputs for inventory impairment [Line Items] | |
Average selling price (in thousands) | $ | $ 615 |
Closings per community per month | contract | 4 |
Discount rate | 0.168 |
Interest (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Capitalized interest in inventory, beginning of period | $ 119,659 | $ 136,565 | $ 144,645 |
Interest incurred | 77,397 | 87,224 | 103,970 |
Capitalized interest impaired | 0 | (792) | (13,907) |
Interest expense not qualified for capitalization and included as other expense | (2,781) | (8,468) | (3,109) |
Capitalized interest amortized to home construction and land sales expenses | (87,290) | (94,870) | (95,034) |
Capitalized interest in inventory, end of period | $ 106,985 | $ 119,659 | $ 136,565 |
Property and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 54,808 | $ 49,451 |
Less: Accumulated depreciation | (31,923) | (27,171) |
Property and equipment, net | 22,885 | 22,280 |
Model furnishings and sales office improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,617 | 17,604 |
Information systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,628 | 14,930 |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,613 | 10,287 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,279 | 4,959 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,671 | $ 1,671 |
Borrowings - Schedule of Future Debt Maturities (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2022 | $ 50,000 |
2023 | 0 |
2024 | 0 |
2025 | 229,555 |
2026 | 0 |
Thereafter | 814,028 |
Total | $ 1,093,583 |
Contingencies - Narrative (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019
community
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2020
USD ($)
|
|
Loss Contingencies [Line Items] | |||
Standard product warranty length, minimum | 1 year | ||
Standard product warranty length, maximum | 2 years | ||
Limited product warranty length (up to) | 10 years | ||
Legal Reserve | |||
Loss Contingencies [Line Items] | |||
Accrued amounts for litigation and other contingent liabilities | $ 8.3 | $ 5.0 | |
Performance Bonds | |||
Loss Contingencies [Line Items] | |||
Letters of credit secured using cash collateral | 33.6 | ||
Outstanding performance bonds | $ 282.3 | ||
California | |||
Loss Contingencies [Line Items] | |||
Number of communities | community | 15 |
Contingencies - Warranty (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 13,052 | $ 13,388 | $ 15,331 |
Accruals for warranties issued | 10,963 | 10,910 | 11,847 |
Changes in liability related to warranties existing in prior periods | 864 | (1,352) | (1,686) |
Payments made | (11,948) | (9,894) | (12,104) |
Balance at end of period | $ 12,931 | $ 13,052 | $ 13,388 |
Fair Value Measurements - Narrative (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Fair Value Disclosures [Abstract] | ||||
Impairment of projects in process | $ 0 | $ 0 | $ 110,000,000 | |
Impairment of land held for sale | $ 38,600,000 | $ 0 | $ 1,300,000 | $ 38,600,000 |
Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 983,827 | $ 1,062,664 |
Junior Subordinated Notes | 70,203 | 68,137 |
Total debt, net | 1,054,030 | 1,130,801 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 1,046,965 | 1,098,117 |
Junior Subordinated Notes | 70,203 | 68,137 |
Total debt, net | $ 1,117,168 | $ 1,166,254 |
Operating Leases - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Leases [Abstract] | |||
Operating lease expense | $ 4.3 | $ 4.5 | |
Rental expense | $ 5.8 | ||
Operating lease payments | $ 4.8 | $ 4.6 |
Operating Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Leases [Abstract] | ||
Weighted-average remaining lease term | 4 years 9 months 18 days | 5 years 1 month 6 days |
Weighted-average discount rate | 4.56% | 4.87% |
Operating Leases (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2022 | $ 4,335 | |
2023 | 3,592 | |
2024 | 2,470 | |
2025 | 2,122 | |
2026 | 1,504 | |
Thereafter | 1,785 | |
Total lease payments | 15,808 | |
Less: imputed interest | 1,654 | |
Operating lease liabilities | $ 14,154 | $ 15,333 |
Other Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
---|---|---|---|---|
Other Liabilities [Abstract] | ||||
Accrued compensations and benefits | $ 54,606 | $ 50,246 | ||
Customer deposits | 28,526 | 18,937 | ||
Accrued interest | 22,835 | 23,870 | ||
Accrued warranty expenses | 12,931 | 13,052 | $ 13,388 | $ 15,331 |
Litigation accruals | 8,325 | 4,981 | ||
Income tax liabilities | 0 | 584 | ||
Other | 25,128 | 24,313 | ||
Total | $ 152,351 | $ 135,983 |
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Current federal | $ 0 | $ (4,641) | $ (4,935) |
Current state | 1,126 | 485 | 693 |
Deferred federal | 20,331 | 20,639 | (31,291) |
Deferred state | 89 | 1,490 | (1,684) |
Total expense (benefit) | $ 21,546 | $ 17,973 | $ (37,217) |
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Income tax computed at statutory rate | $ 30,182 | $ 14,971 | $ (24,494) |
State income taxes, net of federal benefit | 1,564 | 1,300 | (590) |
Deferred rate change | (904) | 260 | (88) |
Changes in uncertain tax positions | 0 | (2) | (7) |
Permanent differences | 2,433 | 2,177 | 2,908 |
Tax credits | (12,088) | (939) | (14,902) |
Other, net | 359 | 206 | (44) |
Total expense (benefit) | $ 21,546 | $ 17,973 | $ (37,217) |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
---|---|---|---|---|
Tax Credit Carryforward [Line Items] | ||||
Federal net operating loss carryforwards | $ 100,300 | |||
Federal and state net operating loss carryforwards | 177,611 | $ 192,981 | ||
State net operating loss carryforwards | 34,900 | |||
Valuation allowance | (29,059) | (39,185) | ||
Pre-tax income required to realize deferred tax assets prior to expiration | 927,400 | |||
Unrecognized tax benefits | 3,358 | $ 3,441 | $ 3,473 | $ 3,494 |
Federal tax authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal and state net operating loss carryforwards | $ 45,700 |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Deferred tax assets: | ||
Tax credit carryforwards | $ 177,611 | $ 192,981 |
Inventory adjustments | 25,174 | 34,971 |
Incentive compensation | 13,793 | 13,116 |
Intangible assets | 6,016 | 13,993 |
Warranty and other reserves | 6,006 | 5,503 |
Property, equipment and other assets | 2,085 | 2,197 |
Uncertain tax positions | 705 | 723 |
Other | 2,435 | 844 |
Total deferred tax assets | 233,825 | 264,328 |
Valuation allowance | (29,059) | (39,185) |
Deferred tax assets, net | $ 204,766 | $ 225,143 |
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 3,441 | $ 3,473 | $ 3,494 |
Additions for tax positions related to current year | 0 | 0 | 0 |
Additions for tax positions related to prior years | 0 | 0 | 0 |
Reductions in tax positions of prior years | 0 | 0 | 0 |
Lapse of statute of limitations | (83) | (32) | (21) |
Balance at end of year | $ 3,358 | $ 3,441 | $ 3,473 |
Stockholders' Equity - Narrative (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2021 |
Dec. 31, 2018 |
|
Equity [Abstract] | ||||
Preferred stock outstanding (in shares) | 0 | |||
Common stock authorized (in shares) | 63,000,000 | 63,000,000 | ||
Common stock issued (in shares) | 31,012,326 | 31,294,198 | ||
Common stock outstanding (in shares) | 31,012,326 | 31,294,198 | ||
Authorized amount repurchase of common stock | $ 50,000,000 | |||
Aggregate repurchased value | $ 3,327,000 | $ 34,624,000 | ||
Remaining availability repurchase amount | $ 12,000,000 | |||
382 ownership limitation | 4.95% |
Retirement and Deferred Compensation Plan - 401(k) Retirement Plan (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution percentage | 50.00% | ||
Percentage of maximum contributions per employee | 6.00% | ||
Contribution vesting period | 5 years | ||
Employer contribution amount | $ 3.2 | $ 3.4 | $ 3.6 |
Total matching contributions forfeited by plan participants during period | $ 0.8 | $ 1.0 | $ 0.7 |
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee deferral or contribution | 1.00% | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee deferral or contribution | 80.00% |
Retirement and Deferred Compensation Plan - Deferred Compensation Plan (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued compensations and benefits | $ 54,606 | $ 50,246 | |
Deferred Compensation Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan assets | 2,700 | 2,300 | |
Accrued compensations and benefits | 7,200 | 5,600 | |
Employer contribution to deferred compensation plan | $ 200 | $ 200 | $ 200 |
Stock-Based Compensation - Schedule of Compensation Cost for Share-based Payment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 12,167 | $ 10,036 | $ 10,526 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 25 | 133 | 178 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 12,142 | $ 9,903 | $ 10,348 |
Stock-Based Compensation - Schedule of Assumptions for Stock Options Granted (Details) - Stock options - $ / shares |
12 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of options | 5 years 8 months 12 days | 5 years |
Expected volatility | 51.52% | 46.69% |
Expected dividends | 0.00% | 0.00% |
Weighted-average risk-free interest rate | 0.43% | 2.70% |
Weighted average fair value (in dollars per share) | $ 4.99 | $ 4.50 |
Stock-Based Compensation - Schedule of Stock Options Activity (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Shares | |||
Outstanding at beginning of period (in shares) | 392,465 | 523,754 | 533,052 |
Granted (in shares) | 0 | 950 | 30,782 |
Exercised (in shares) | (278,206) | (128,921) | (31,450) |
Forfeited (in shares) | 0 | (3,318) | (8,630) |
Outstanding at end of period (in shares) | 114,259 | 392,465 | 523,754 |
Exercisable at end of period (in shares) | 113,309 | 354,796 | 470,501 |
Weighted- Average Exercise Price | |||
Outstanding at beginning or period (in dollars per share) | $ 15.47 | $ 14.34 | $ 14.26 |
Granted (in dollars per share) | 0 | 10.67 | 10.23 |
Exercised (in dollars per share) | 14.48 | 11.01 | 10.00 |
Forfeited (in dollars per share) | 0 | 9.55 | 10.45 |
Outstanding at end of period (in dollars per share) | 17.89 | 15.47 | 14.34 |
Exercisable at end of period (in dollars per share) | $ 17.95 | $ 15.90 | $ 14.42 |
Stock-Based Compensation - Intrinsic and Fair Market Value of Options (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 1,402 | $ 587 | $ 90 |
Fair market value of options vested | $ 173 | $ 144 | $ 178 |
Stock-Based Compensation - Fair Value Assumptions (Details) - Performance-based restricted stock - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 26.10% | 21.20% | 21.00% |
Expected volatility, maximum | 67.00% | 54.80% | 57.10% |
Risk-free interest rate | 0.23% | 1.61% | 2.92% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Grant-date stock price (in dollars per share) | $ 14.07 | $ 15.62 | $ 9.82 |
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 142 | 375 | 524 |
Time-based restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 46 | 612 |
Performance-based restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 779 |
Discontinued Operations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss from discontinued operations, net of tax | $ (159) | $ (1,090) | $ (99) |
Litigation settlement accrual | 1,300 | ||
Litigation settlement expense | 1,400 | ||
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenue | 0 | 0 | 55 |
Home construction and land sales expenses | 119 | 1,245 | 61 |
Gross loss | (119) | (1,245) | (6) |
General and administrative expenses | 85 | 173 | 125 |
Operating loss | (204) | (1,418) | (131) |
Equity in loss of unconsolidated entities | 0 | 0 | (1) |
Other income, net | 0 | 19 | 5 |
Loss from discontinued operations before income taxes | (204) | (1,399) | (127) |
Benefit from income taxes | (45) | (309) | (28) |
Loss from discontinued operations, net of tax | $ (159) | $ (1,090) | $ (99) |
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