Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2019	Jan. 28, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	BEAZER HOMES USA INC
Entity Central Index Key	0000915840
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2020
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		31,384,758

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
ASSETS
Cash and cash equivalents	$ 41,277	$ 106,741
Restricted cash	18,759	16,053
Accounts receivable (net of allowance of $313 and $304, respectively)	19,439	26,395
Income tax receivable	4,612	4,935
Owned inventory	1,574,280	1,504,248
Investments in unconsolidated entities	3,930	3,962
Deferred tax assets, net	247,382	246,957
Property and equipment, net	26,623	27,421
Operating lease right-of-use assets	12,975
Goodwill	11,376	11,376
Other assets	7,451	9,556
Total assets	1,968,104	1,957,644
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	110,153	131,152
Operating lease liabilities	15,158
Other liabilities	95,451	109,429
Total debt (net of debt issuance costs of $12,080 and $12,470, respectively)	1,208,062	1,178,309
Total liabilities	1,428,824	1,418,890
Stockholders’ equity:
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)	0	0
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,383,068 issued and outstanding and 30,933,110 issued and outstanding, respectively)	31	31
Paid-in capital	852,055	854,275
Accumulated deficit	(312,806)	(315,552)
Total stockholders’ equity	539,280	538,754
Total liabilities and stockholders’ equity	$ 1,968,104	$ 1,957,644

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
ASSETS
Allowances for accounts receivable	$ 313	$ 304
LIABILITIES AND STOCKHOLDERS’ EQUITY
Debt issuance costs	$ 12,080	$ 12,470
Preferred stock, par value (in US$ per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in US$ per share)	$ 0.001	$ 0.001
Common stock, shares authorized	63,000,000	63,000,000
Common stock, shares issued	31,383,068	30,933,110
Common stock, shares outstanding	31,383,068	30,933,110

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Total revenue	$ 417,804	$ 402,040
Home construction and land sales expenses	354,667	340,378
Inventory impairments and abandonments	0	1,007
Gross profit	63,137	60,655
Commissions	16,065	15,737
General and administrative expenses	39,699	38,642
Depreciation and amortization	3,427	2,770
Operating income	3,946	3,506
Equity in loss of unconsolidated entities	(13)	(64)
Other expense, net	(1,340)	(42)
Income from continuing operations before income taxes	2,593	3,400
Benefit from income taxes	(211)	(3,922)
Income from continuing operations	2,804	7,322
Loss from discontinued operations, net of tax	(58)	(11)
Net income	$ 2,746	$ 7,311
Weighted average number of shares:
Basic (in shares)	29,746	31,801
Diluted (in shares)	30,138	32,055
Basic income per share:
Continuing Operations (in dollars per share)	$ 0.09	$ 0.23
Discontinued Operations (in dollars per share)	0.00	0.00
Total (in dollars per share)	0.09	0.23
Diluted income per share:
Continuing operations (in dollars per share)	0.09	0.23
Discontinued operations (in dollars per share)	0.00	0.00
Total (in dollars per share)	$ 0.09	$ 0.23

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Sep. 30, 2018		33,522,000
Beginning balance at Sep. 30, 2018	$ 644,027	$ 34	$ 880,025	$ (236,032)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income and comprehensive income (loss)	7,311			7,311
Amortization of nonvested stock awards	2,114		2,114
Exercises of stock options (in shares)		1,000
Exercises of stock options	7		7
Shares issued under employee stock plans, net (in shares)		910,000
Forfeiture and other settlements of restricted stock (in shares)		(28,000)
Common stock redeemed for tax liability (in shares)		(176,000)
Common stock redeemed for tax liability	(1,850)		(1,850)
Share repurchases (in shares)		(1,554,000)
Share repurchases	(16,500)	$ (1)	(16,499)
Ending balance (in shares) at Dec. 31, 2018		32,675,000
Ending balance at Dec. 31, 2018	635,109	$ 33	863,797	(228,721)
Beginning balance (in shares) at Sep. 30, 2018		33,522,000
Beginning balance at Sep. 30, 2018	644,027	$ 34	880,025	(236,032)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share repurchases	(34,600)
Ending balance (in shares) at Sep. 30, 2019		30,933,000
Ending balance at Sep. 30, 2019	538,754	$ 31	854,275	(315,552)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income and comprehensive income (loss)	2,746			2,746
Amortization of nonvested stock awards	2,311		2,311
Exercises of stock options (in shares)		47,000
Exercises of stock options	173		173
Shares issued under employee stock plans, net (in shares)		574,000
Forfeiture and other settlements of restricted stock (in shares)		(1,000)
Forfeiture and other settlements of restricted stock	(2,058)		(2,058)
Common stock redeemed for tax liability (in shares)		(170,000)
Common stock redeemed for tax liability	$ (2,646)		(2,646)
Share repurchases (in shares)	0
Ending balance (in shares) at Dec. 31, 2019		31,383,000
Ending balance at Dec. 31, 2019	$ 539,280	$ 31	$ 852,055	$ (312,806)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 2,746	$ 7,311
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,427	2,770
Stock-based compensation expense	2,311	2,114
Inventory impairments and abandonments	0	1,007
Deferred and other income tax benefit	(228)	(4,070)
Gain on sale of fixed assets	(63)	(35)
Change in allowance for doubtful accounts	9	0
Equity in loss of unconsolidated entities	13	65
Cash distributions of income from unconsolidated entities	0	320
Changes in operating assets and liabilities:
Decrease in accounts receivable	6,947	5,298
Decrease in income tax receivable	303	0
Increase in inventory	(68,999)	(29,722)
Decrease in other assets	1,978	1,430
Decrease in trade accounts payable	(20,999)	(26,568)
Decrease in other liabilities	(11,975)	(14,610)
Net cash used in operating activities	(84,530)	(54,690)
Cash flows from investing activities:
Capital expenditures	(2,632)	(6,354)
Proceeds from sale of fixed assets	66	54
Return of capital from unconsolidated entities	19	0
Net cash used in investing activities	(2,547)	(6,300)
Cash flows from financing activities:
Repayment of debt	(1,150)	(1,479)
Repayment of borrowings from credit facility	(95,000)	(75,000)
Borrowings from credit facility	125,000	100,000
Debt issuance costs	0	(400)
Repurchase of common stock	0	(16,500)
Tax payments for stock-based compensation awards	(2,646)	(1,850)
Stock option exercises and other financing activities	(1,885)	7
Net cash provided by financing activities	24,319	4,778
Decrease in cash, cash equivalents, and restricted cash	(62,758)	(56,212)
Cash, cash equivalents, and restricted cash at beginning of period	122,794	153,248
Cash, cash equivalents, and restricted cash at end of period	$ 60,036	$ 97,036

Description of Business	3 Months Ended
Description of Business	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [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. For an additional description of our business, refer to Item 1 within our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 (2019 Annual Report).

Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2019 Annual Report. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. The results of the Company's consolidated operations presented herein for the three months ended December 31, 2019 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonal variations in our operations and other factors.

Basis of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts 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 unaudited condensed consolidated statements of operations for all periods presented (see Note 17 for a further discussion of our discontinued operations).

Our fiscal year 2020 began on October 1, 2019 and ends 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 condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates.

Share Repurchase Program

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 repurchased common stock during fiscal 2019 through open market transactions, 10b5-1 plans, and accelerated share repurchase (ASR) agreements.

All shares have been retired upon repurchase during fiscal 2019. The aggregate reduction to stockholders’ equity related to share repurchases during the fiscal year ended September 30, 2019 was $34.6 million. The Company made no share repurchases during the three months ended December 31, 2019. As of December 31, 2019, the remaining availability of the share repurchase program was $15.4 million.

Inventory Valuation

Inventory assets are assessed for recoverability no less than quarterly in accordance with the policies described in Notes 2 and 5 to the audited consolidated financial statements within our 2019 Annual Report. Homebuilding inventories that are accounted for as held for development (projects in progress) include land and home construction assets grouped together as communities. Homebuilding inventories held for development are stated at cost (including direct construction costs, capitalized indirect costs, capitalized interest, and real estate taxes) unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. For communities that have been idled (land held for future development), all applicable interest and real estate taxes are expensed as incurred, and the inventory is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We record land held for sale at the lower of the carrying value or fair value less costs to sell.

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 Accounting Standards Codification Topic 606.


•	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:



	Three Months Ended
	December 31,
in thousands	2019		2018
Homebuilding revenue	$	417,399	$	400,982
Land sales and other revenue	405		1,058
Total revenue ^(a)	$	417,804	$	402,040

^(a) Please see Note 15 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 in escrow for our benefit, typically for less than five days, and are considered deposits in-transit and classified as cash. Contract liabilities include customer deposits related to sold but undelivered homes and totaled 13.9 million and 11.5 million as of December 31, 2019 and September 30, 2019, respectively. Of the customer liabilities outstanding as of September 30, 2019, $6.1 million was recognized in revenue during the three months ended December 31, 2019 upon closing of the related homes, and $0.2 million was refunded to or forfeited by the buyer. The remaining balance of $5.2 million remains included within customer deposits as of December 31, 2019.

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. In some periods, we also have other revenue related to broker fees as well as fees received for general contractor services that we perform on behalf of third parties. Revenue for broker and general contractor services are typically immaterial and are generally recognized as performance obligations are satisfied.

Recent Accounting Pronouncements

Leases. On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC 842, Leases (ASC 842). ASC 842 requires lessees to record most leases on their balance sheets by recognize a right-of-use asset, representing the right to use the identified asset during the lease term, and a corresponding lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the previous accounting rules. ASC 842 also requires significantly enhanced disclosures around an entity's leases and the related accounting. As part of our adoption of ASC 842, we applied a modified retrospective approach, whereby prior year financial statements were not recast. We also elected the package of transition practical expedients, which allowed us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. In addition, we elected the practical expedient that allows lessees to account for lease and non-lease components together as a single component for all leases. 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. The adoption of ASC 842 did not have any impact on our retained earnings. See Note 8 for additional discussion of our operating leases.

Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework (ASU 2018-13). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted for any removed or modified disclosures. We are currently assessing the impact of adopting the updated provisions.

Internal-Use Software. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures.

Supplemental Cash Flow Information

3 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Elements [Abstract]

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:



	Three Months Ended
	December 31,
in thousands	2019		2018
Supplemental disclosure of non-cash activity:
Beginning operating lease right-of-use asset (ASC 842 adoption)	$	13,895	—
Beginning operating lease right-of-use liability (ASC 842 adoption)	16,028		—
Supplemental disclosure of cash activity:
Interest payments	$	15,954	$	13,986
Income tax payments	—		121
Tax refunds received	303		1,148
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	41,277	$	84,399
Restricted cash	18,759		12,637
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	60,036	$	97,036

Investments in Unconsolidated Entities

3 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Unconsolidated Entities

As of December 31, 2019, 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 December 31, 2019 and September 30, 2019:



in thousands	December 31, 2019		September 30, 2019
Investment in unconsolidated entities	$	3,930	$	3,962
Total equity of unconsolidated entities	8,501		9,969
Total outstanding borrowings of unconsolidated entities	12,618		12,658

Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented:



	Three Months Ended
	December 31,
in thousands	2019			2018
Equity in loss of unconsolidated entities	$	(13	)	$	(64	)

For the three months ended December 31, 2019 and 2018, 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 December 31, 2019 and September 30, 2019, 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 the three months ended December 31, 2019 and 2018, 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 December 31, 2019, no liability was recorded for the contingent aspects of any guarantees that were determined to be reasonably possible but not probable.

Inventory

3 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Inventory

The components of our owned inventory are as follows as of December 31, 2019 and September 30, 2019:



in thousands	December 31, 2019		September 30, 2019
Homes under construction	$	580,580	$	507,542
Development projects in progress	732,380		738,201
Land held for future development	28,531		28,531
Land held for sale	11,443		12,662
Capitalized interest	137,010		136,565
Model homes	84,336		80,747
Total owned inventory	$	1,574,280	$	1,504,248

Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including the cost of the underlying lot. We had 267 (with a cost of $90.2 million) and 238 (with a cost of $82.2 million) substantially completed homes that were not subject to a sales contract (spec homes) as of December 31, 2019 and September 30, 2019, respectively.

Development projects in progress 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 interest and real estate taxes on land held for future development 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.

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 development projects in progress 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 December 31, 2019 and September 30, 2019:



in thousands	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
December 31, 2019
West Segment	$	733,525	$	3,483	$	4,235	$	741,243
East Segment	270,930		14,077		3,810		288,817
Southeast Segment	333,623		10,971		3,398		347,992
Corporate and unallocated ^(b)	196,228		—		—		196,228
Total	$	1,534,306	$	28,531	$	11,443	$	1,574,280
September 30, 2019
West Segment	$	723,094	$	3,483	$	5,160	$	731,737
East Segment	228,937		14,077		4,104		247,118
Southeast Segment	318,737		10,971		3,398		333,106
Corporate and unallocated ^(b)	192,287		—		—		192,287
Total	$	1,463,055	$	28,531	$	12,662	$	1,504,248

^(a)Projects in progress include homes under construction, development projects in progress, capitalized interest, and model home categories from the preceding table.

^(b)Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment.

Inventory Impairments

When conducting our community level review for the recoverability of inventory related to projects in progress, we establish a quarterly “watch list” comprised of communities that carry profit margins in backlog or in our forecast that are below a minimum threshold of profitability, as well as recent closings that have gross margins less than a specified threshold. Each community is first evaluated qualitatively to determine if there are temporary factors driving the low profitability levels. Following our qualitative evaluation, communities with more than ten homes remaining to close are subjected to additional financial and operational review that considers the competitive environment and other factors contributing to gross margins below our watch list threshold. Our assumptions about future home sales prices and absorption rates require significant judgment because the residential homebuilding industry is cyclical and is highly sensitive to changes in economic conditions. For certain communities, it may be prudent to reduce sales prices or further increase sales incentives in response to a variety of factors, including competitive market conditions in those specific submarkets for the product and locations of these communities. For communities where the current competitive and market dynamics indicate that assets may not be recoverable, a formal impairment analysis is performed. The formal impairment analysis consists of both qualitative considerations and quantitative analyses reflecting market and asset specific information.

As of December 31, 2019, there were four communities on our quarterly watch list. However, none of these communities required further analysis to be performed after considering certain quantitative and qualitative factors.

As of December 31, 2018, there were four communities on our quarterly watch list that required further analysis to be performed after considering the lots remaining in each community and certain other qualitative factors. This additional analysis led to a $1 million impairment charge for one of these communities, principally due to a reduction in price that is other than temporary based on competitive and market dynamics.

Impairments on land held for sale generally represent write downs of these properties to net realizable value and are based on current market conditions and our review of recent comparable transactions. 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.

From time-to-time, we also determine that the proper course of action with respect to a community is to not exercise an option and to write off the deposit securing the option takedown and the related pre-acquisition costs, as applicable. In determining whether to abandon lots or lot option contracts, our evaluation is primarily based upon the expected cash flows from the property. Additionally, in certain limited instances, we are forced to abandon lots due to 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 a charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. Abandonment charges generally relate to our decision to abandon lots or not exercise certain option contracts that are not projected to produce adequate results, no longer fit with our long-term strategic plan or, in limited circumstances, are not suitable for building due to regulatory or environmental restrictions that are enacted.

Lot Option Agreements and Variable Interest Entities (VIE)

As previously discussed, we also have access to land inventory through lot option contracts, which generally 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 contracts 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 of time at a specified price. Under lot option contracts, purchase of the properties is contingent upon satisfaction of certain requirements by us and the sellers. Our liability under option contracts is generally limited to forfeiture of the non-refundable deposits, letters of credit, and other non-refundable amounts incurred. 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 December 31, 2019 and September 30, 2019:



in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of December 31, 2019
Unconsolidated lot option agreements	$	74,836	$	386,762
As of September 30, 2019
Unconsolidated lot option agreements	$	78,202	$	389,705

Interest

3 Months Ended

Dec. 31, 2019

Real Estate [Abstract]

Interest

Interest capitalized during the three months ended December 31, 2019 and 2018 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:



	Three Months Ended December 31,
in thousands	2019			2018
Capitalized interest in inventory, beginning of period	$	136,565		$	144,645
Interest incurred	21,556			24,921
Capitalized interest impaired	—			(115		)
Interest expense not qualified for capitalization and included as other expense ^(a)	(1,442		)	(242		)
Capitalized interest amortized to home construction and land sales expenses ^(b)	(19,669		)	(17,323		)
Capitalized interest in inventory, end of period	$	137,010		$	151,886

^(a)The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. The qualified inventory balance includes the majority of homes under construction and development projects in progress 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.

Borrowings

3 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Borrowings

The Company's debt, net of unamortized debt issuance costs consisted of the following as of December 31, 2019 and September 30, 2019:



in thousands	Final Maturity Date	December 31, 2019			September 30, 2019
Senior Unsecured Term Loan (Term Loan)	September 2022	$	150,000		$	150,000
6 3/4% Senior Notes (2025 Notes)	March 2025	229,555			229,555
5 7/8% Senior Notes (2027 Notes)	October 2027	394,000			394,000
7 1/4% Senior Notes (2029 Notes)	October 2029	350,000			350,000
Unamortized debt issuance costs		(12,080		)	(12,470		)
Total Senior Notes, net		1,111,475			1,111,085
Junior Subordinated Notes (net of unamortized accretion of $34,186 and $34,703, respectively)	July 2036	66,587			66,070
Revolving Credit Facility	February 2022	30,000			—
Other Secured Notes payable	Various Dates	—			1,154
Total debt, net		$	1,208,062		$	1,178,309

Secured Revolving Credit Facility

The Secured Revolving Credit Facility (the Facility) provides working capital and letter of credit capacity of $250.0 million with four lenders. For additional discussion of the Facility, refer to Note 8 to the audited consolidated financial statements within our 2019 Annual Report.

As of December 31, 2019, $30.0 million of borrowings and no letters of credit were outstanding under the Facility, resulting in a remaining capacity of $220.0 million. As of September 30, 2019, no borrowings and no letters of credit were outstanding under the Facility. The Facility requires compliance with certain covenants, including negative covenants and financial maintenance covenants. As of December 31, 2019, the Company 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 Term Loan) in an aggregate principal amount of up to $150.0 million. The Term Loan will (1) mature in September 2022, with $50.0 million annual repayment installments in September 2020 and September 2021; (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 December 31, 2019, the Company 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 December 31, 2019 and September 30, 2019, the Company had letters of credit outstanding under these additional facilities of $16.6 million and $14.1 million, respectively, all of which were secured by cash collateral in restricted accounts. 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"). The Bilateral Facility will terminate on June 10, 2021. As of December 31, 2019, the total stated amount of performance letters of credit issued under the reimbursement agreement was $33.8 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. See Note 16 for further information.

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 is in compliance with the covenants contained in the indentures of all of its Senior Notes as of December 31, 2019.

For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes:



Senior Note Description	Issuance Date	Maturity Date	Redemption Terms
6 3/4% Senior Notes	March 2017	March 2025	On or prior to March 15, 2020, we may redeem up to 35% of the aggregate principal amount of the 2025 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 106.75% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2025 Notes originally issued remains outstanding immediately after such redemption.
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 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.
5 7/8% Senior Notes	October 2017	October 2027	On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2027 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 105.875% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2027 Notes originally issued remains outstanding immediately after such redemption.
5 7/8% Senior Notes	October 2017	October 2027	Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.
7 1/4% Senior Notes	September 2019	October 2029	On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption.
7 1/4% Senior Notes	September 2019	October 2029	Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.

Junior Subordinated Notes

The Company's unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036. The Junior Subordinated Notes are redeemable at par and paid interest at a fixed rate of 7.987% for the first ten years ending July 30, 2016. The securities now have a floating interest rate as defined in the Junior Subordinated Notes Indenture, which was a weighted-average of 4.39% as of December 31, 2019. The obligations relating to these notes are subordinated to the Facility and the Senior Notes. In January 2010, the Company modified the terms of $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 December 31, 2019, the unamortized accretion was $34.2 million and will be amortized over the remaining life of the notes. As of December 31, 2019, the Company was in compliance with all covenants under the Junior Subordinated Notes.

Other Secured Notes Payable

The Company periodically acquires land through the issuance of notes payable. As of September 30, 2019, the Company had outstanding notes payable of $1.2 million, primarily related to land acquisitions. During the three months ended December 31, 2019, we redeemed the remaining balance outstanding on these land acquisition related notes payable.

Contingencies

3 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

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 one 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. In addition, we maintain insurance coverage related to our construction efforts that can result in recoveries of warranty and construction defect costs above certain specified limits.

Warranty reserves are included in other liabilities within the condensed consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the condensed 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. Such analysis considers 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. 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.

Changes in warranty reserves are as follows for the periods presented:



	Three Months Ended
	December 31,
in thousands	2019			2018
Balance at beginning of period	$	13,388		$	15,331
Accruals for warranties issued ^(a)	1,665			2,305
Changes in liability related to warranties existing in prior periods	67			(1,874		)
Payments made	(2,474		)	(2,330		)
Balance at end of period	$	12,646		$	13,432

^(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 condensed 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 condensed 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 allege breaches of fiduciary duty, unjust enrichment and violations of the federal securities laws. The plaintiffs seek, among other things, monetary damages, disgorgement of profits and attorneys’ and experts’ fees, but do not specify any specific amounts. We believe the allegations are without merit and intend to vigorously defend against the claims. However, because the outcome of these legal proceedings cannot be predicted with certainty, we have determined that the amount of any possible losses or range of possible losses in connection with these matters is not reasonably estimable.

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. In our opinion, based on our current assessment, the ultimate resolution of these matters will not have a material adverse effect on our financial condition, results of operations, or cash flows.

We have an accrual of $3.5 million and $3.4 million in other liabilities on our condensed consolidated balance sheets related to litigation and other matters, excluding warranty, as of December 31, 2019 and September 30, 2019, respectively.

We had outstanding letters of credit and performance bonds of approximately $50.4 million and $276.1 million, respectively, as of December 31, 2019, related principally to our obligations to local governments to construct roads and other improvements in various developments.

Operating Leases

3 Months Ended

Dec. 31, 2019

Leases [Abstract]

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 condensed consolidated statements of operations. For the three months ended December 31, 2019, we recorded operating lease expense of $1.2 million. Cash payments on lease liabilities during the three months ended December 31, 2019 totaled $1.1 million. Sublease income and variable lease expenses are de minimis.

At December 31, 2019, weighted-average remaining lease term and discount rate were as follows:



Weighted-average remaining lease term	4.4 years
Weighted-average discount rate	4.94%

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of December 31, 2019:



Fiscal Years Ending September 30,
in thousands
2020 ^(a)	$	3,474
2021	4,217
2022	3,378
2023	2,560
2024	1,435
Thereafter	1,838
Total lease payments ^(b)	$	16,902
Less: Imputed interest	$	1,744
Total operating lease liabilities	$	15,158

^(a)Remaining lease payments are for the period beginning January 1, 2020 through September 30, 2020.

^(b)Lease payments excludes $4.0 million legally binding minimum lease payments for an office lease signed but not yet commenced at December 31, 2019. The related ROU asset and operating lease liability are not reflected on the Company’s condensed consolidated balance sheet as of December 31, 2019.

At September 30, 2019, under ASC 840, Leases (“ASC 840”), the future minimum rental commitments totaled $20.1 million under non-cancelable operating leases as follows: 2020 - $4.7 million; 2021 - $4.5 million; 2022 - $3.6 million; 2023 - $2.9 million; 2024 - $1.8 million; and $2.6 million thereafter.

Fair Value Measurements

3 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

As of the dates presented, we had assets on our condensed 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. The fair value of our investments in unconsolidated entities is determined primarily using a discounted cash flow model to value the underlying net assets of the respective entities. 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 three months ended December 31, 2019, we recognized no impairments on development projects in progress or land held for sale compared to $1.0 million impairments on development projects in progress and no impairments on land held for sale during the three months ended December 31, 2018.

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:



in thousands	Level 1		Level 2		Level 3			Total
As of December 31, 2019
Deferred compensation plan assets ^(a)	$	—	$	2,136	$	—		$	2,136
As of September 30, 2019
Deferred compensation plan assets ^(a)	$	—	$	1,970	$	—		$	1,970
Development projects in progress ^(b)	—		—		84,982		^(c)	84,982
Land held for sale ^(b)	—		—		5,207		^(c)	5,207

^(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 development projects in progress and 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, amounts due under the Facility (if outstanding), and other secured notes payable 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 December 31, 2019 and September 30, 2019:



	As of December 31, 2019				As of September 30, 2019
in thousands	Carrying Amount ^(a)		Fair Value		Carrying Amount ^(a)		Fair Value
Senior Notes ^(b)	$	1,111,475	$	1,167,303	$	1,111,085	$	1,115,011
Junior Subordinated Notes ^(c)	66,587		66,587		66,070		66,070
Total	$	1,178,062	$	1,233,890	$	1,177,155	$	1,181,081

^(a)Carrying amounts are net of unamortized debt premiums/discounts, debt issuance costs, or accretion.

^(b) The estimated fair value for our publicly-held Senior Notes has 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes	3 Months Ended
Income Taxes	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income Tax Provision The Company's income tax provision for quarterly interim periods is based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items. The total income tax provision, including discontinued operations, was a tax benefit of $0.2 million for the three months ended December 31, 2019, compared to an income tax benefit of $3.9 million for the three months ended December 31, 2018. The current fiscal year income tax benefit was substantially driven by (1) the completion of work necessary to claim an additional $0.7 million in tax credits related to prior fiscal years (2) the discrete impact related to stock-based compensation expense as a result of current period activity; partially offset by (3) income from continuing operations. The tax benefit for the three months ended December 31, 2018 was primarily driven by (1) the completion of work necessary to claim an additional $5.3 million in tax credits related to prior fiscal years; partially offset by (2) income from continuing operations; and (3) the discrete impact related to our stock-based compensation expense. Deferred Tax Assets and Liabilities As of December 31, 2019, the net deferred tax asset is comprised of various tax attributes that include $4.6 million of minimum tax credit carryforwards. Beginning in our fiscal 2019, the Company started making cash refund claims for significant portions of these credits due to the elimination of the alternative minimum tax in the Tax Cuts and Jobs Act. The Company continues to evaluate its deferred tax assets each period to determine if a valuation allowance is required based on whether it is more likely than not that some portion of these deferred tax assets will not be realized. As of December 31, 2019, management concluded that it is more likely than not that a substantial portion of our deferred tax assets will be realized. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in the estimate of our deferred tax assets that may be realized in the future. Our conclusions on the valuation allowance and Internal Revenue Code Section 382 limitations related to our deferred tax assets remain consistent with the determinations we made during the period ended September 30, 2019, and such conclusions are based on similar company specific and industry factors to those discussed in Note 13 to the audited consolidated financial statements within our 2019 Annual Report.

Stock-based Compensation

3 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. We recognized $2.3 million and $2.1 million of stock-based compensation expense related to stock options and restricted stock awards for the three months ended December 31, 2019 and December 31, 2018, respectively.

Stock Options

Following is a summary of stock option activity for the three months ended December 31, 2019:



	Three Months Ended
	December 31, 2019
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	523,754		$	14.34
Granted	—		—
Exercised	(123,367	)	11.08
Cancelled	(100	)	15.47
Outstanding at end of period	400,287		$	15.35
Exercisable at end of period	363,931		$	15.64
Vested or expected to vest in the future	398,358		$	15.38

As of December 31, 2019 and September 30, 2019, total unrecognized compensation cost related to unvested stock options was $0.1 million and $0.1 million, respectively. The remaining cost as of December 31, 2019 is expected to be recognized over a weighted-average period of 0.95 years.

Restricted Stock Awards

During the three months ended December 31, 2019, the Company issued time-based restricted stock awards that vest ratably over three years on each anniversary from the grant date and performance-based restricted stock awards with a payout subject to the achievement of performance and market conditions over a three-year period.

Following is a summary of restricted stock activity for the three months ended December 31, 2019:



	Three Months Ended December 31, 2019
	Performance-Based Restricted Shares		Time-Based Restricted Shares		Total Restricted Shares
Beginning of period	778,814		611,607		1,390,421
Granted	260,131		313,829		573,960
Vested	(242,921	)	(289,648	)	(532,569	)
Forfeited	—		(1,202	)	(1,202	)
End of period	796,024		634,586		1,430,610

Each of our performance-based restricted 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. During the three months ended December 31, 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 in the past, and we have no current plans to cash settle any additional performance-based restricted shares in the future.

As of December 31, 2019 and September 30, 2019, total unrecognized compensation cost related to unvested restricted stock awards was $16.0 million and $9.0 million, respectively. The remaining cost as of December 31, 2019 is expected to be recognized over a weighted average period of 2.15 years.

Earnings Per Share

3 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

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:



	Three Months Ended December 31,
in thousands, except per share data	2019			2018
Numerator:
Income from continuing operations	$	2,804		$	7,322
Loss from discontinued operations, net of tax	(58		)	(11		)
Net income	$	2,746		$	7,311

Denominator:
Basic weighted-average shares	29,746			31,801
Dilutive effect of restricted stock awards	353			243
Dilutive effect of stock options	39			11
Diluted weighted-average shares ^(a)	30,138			32,055

Basic income per share:
Continuing operations	$	0.09		$	0.23
Discontinued operations	—			—
Total	$	0.09		$	0.23

Diluted income per share:
Continuing operations	$	0.09		$	0.23
Discontinued operations	—			—
Total	$	0.09		$	0.23

^(a) The following potentially dilutive shares were excluded from the calculation of diluted income per share as a result of their anti-dilutive effect.



	Three Months Ended December 31,
in thousands	2019	2018
Stock options	210,509	493
Time-based restricted stock	—	195

Segment Information

3 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

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 to the consolidated financial statements within our 2019 Annual Report.

The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented:



	Three Months Ended
	December 31,
in thousands	2019		2018
Revenue
West	$	254,398	$	208,944
East	78,040		88,746
Southeast	85,366		104,350
Total revenue	$	417,804	$	402,040



	Three Months Ended
	December 31,
in thousands	2019			2018
Operating income ^(a)
West	$	30,331		$	24,261
East	5,321			5,395
Southeast	3,156			1,380
Segment total	38,808			31,036
Corporate and unallocated ^(b)	(34,862		)	(27,530		)
Total operating income	$	3,946		$	3,506



	Three Months Ended
	December 31,
in thousands	2019		2018
Depreciation and amortization
West	$	1,808	$	1,278
East	554		538
Southeast	540		610
Segment total	2,902		2,426
Corporate and unallocated ^(b)	525		344
Total depreciation and amortization	$	3,427	$	2,770

^(a) Operating income is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5).

^(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. 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:



	Three Months Ended
	December 31,
in thousands	2019		2018
Capital Expenditures
West	$	1,484	$	2,651
East	452		762
Southeast	516		859
Corporate and unallocated	180		2,082
Total capital expenditures	$	2,632	$	6,354

The following table presents assets by segment as of December 31, 2019 and September 30, 2019:



in thousands	December 31, 2019		September 30, 2019
Assets
West	$	764,868	$	751,110
East	298,389		286,340
Southeast	368,332		359,431
Corporate and unallocated ^(a)	536,515		560,763
Total assets	$	1,968,104	$	1,957,644

^(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.

Supplemental Guarantor Information

3 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Supplemental Guarantor Information

As discussed in Note 7, the Company's obligations to pay principal, premium, if any, and interest under certain debt agreements are guaranteed on a joint and several basis by substantially all of the Company's subsidiaries. Some of the immaterial subsidiaries do not guarantee the Senior Notes or the Facility. The guarantees are full and unconditional, and the guarantor subsidiaries are 100% owned by Beazer Homes USA, Inc. The following unaudited financial information presents the line items of the Company's unaudited condensed consolidated financial statements separated by amounts related to the parent issuer, guarantor subsidiaries, non-guarantor subsidiaries, and consolidating adjustments as of or for the periods presented.

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

December 31, 2019

(Unaudited)



in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	35,258	$	6,007	$	12	$	—		$	41,277
Restricted cash	17,847		912		—		—			18,759
Accounts receivable (net of allowance of $313)	—		19,439		—		—			19,439
Income tax receivable	4,612		—		—		—			4,612
Owned inventory	—		1,574,280		—		—			1,574,280
Investments in unconsolidated entities	773		3,157		—		—			3,930
Deferred tax assets, net	247,382		—		—		—			247,382
Property and equipment, net	—		26,623		—		—			26,623
Operating lease right-of-use assets	—		12,975		—		—			12,975
Investments in subsidiaries	711,246		—		—		(711,246		)	—
Intercompany	748,246		—		1,676		(749,922		)	—
Goodwill	—		11,376		—		—			11,376
Other assets	1,098		6,353		—		—			7,451
Total assets	$	1,766,462	$	1,661,122	$	1,688	$	(1,461,168	)	$	1,968,104
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	110,153	$	—	$	—		$	110,153
Operating lease liabilities	—		15,158		$	—	$	—		$	15,158
Other liabilities	17,444		77,991		16		—			95,451
Intercompany	1,676		748,246		—		(749,922		)	—
Total debt (net of premium and debt issuance costs)	1,208,062		—		—		—			1,208,062
Total liabilities	1,227,182		951,548		16		(749,922		)	1,428,824
Stockholders’ equity	539,280		709,574		1,672		(711,246		)	539,280
Total liabilities and stockholders’ equity	$	1,766,462	$	1,661,122	$	1,688	$	(1,461,168	)	$	1,968,104

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

September 30, 2019

(Unaudited)



in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	70,617	$	36,115	$	9	$	—		$	106,741
Restricted cash	14,847		1,206		—		—			16,053
Accounts receivable (net of allowance of $304)	—		26,394		1		—			26,395
Income tax receivable	4,935		—		—		—			4,935
Owned inventory	—		1,504,248		—		—			1,504,248
Investments in unconsolidated entities	773		3,189		—		—			3,962
Deferred tax assets, net	246,957		—		—		—			246,957
Property and equipment, net	—		27,421		—		—			27,421
Investments in subsidiaries	636,791		—		—		(636,791		)	—
Intercompany	753,769		—		1,680		(755,449		)	—
Goodwill	—		11,376		—		—			11,376
Other assets	1,235		8,317		4		—			9,556
Total assets	$	1,729,924	$	1,618,266	$	1,694	$	(1,392,240	)	$	1,957,644
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	131,152	$	—	$	—		$	131,152
Other liabilities	12,335		97,081		13		—			109,429
Intercompany	1,680		753,769		—		(755,449		)	—
Total debt (net of premium and debt issuance costs)	1,177,155		1,154		—		—			1,178,309
Total liabilities	1,191,170		983,156		13		(755,449		)	1,418,890
Stockholders’ equity	538,754		635,110		1,681		(636,791		)	538,754
Total liabilities and stockholders’ equity	$	1,729,924	$	1,618,266	$	1,694	$	(1,392,240	)	$	1,957,644

Beazer Homes USA, Inc.

Condensed Consolidating Statements of Operations

(Unaudited)



in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2019
Total revenue	$	—		$	417,804		$	—		$	—		$	417,804
Home construction and land sales expenses	19,669			334,998			—			—			354,667
Gross (loss) profit	(19,669		)	82,806			—			—			63,137
Commissions	—			16,065			—			—			16,065
General and administrative expenses	—			39,699			—			—			39,699
Depreciation and amortization	—			3,427			—			—			3,427
Operating (loss) income	(19,669		)	23,615			—			—			3,946
Equity in income of unconsolidated entities	—			(13		)	—			—			(13		)
Other (expense) income, net	(1,442		)	102			—			—			(1,340		)
(Loss) income from continuing operations before income taxes	(21,111		)	23,704			—			—			2,593
(Benefit) expense from income taxes	(1,900		)	1,689			—			—			(211		)
Equity in income of subsidiaries	22,015			—			—			(22,015		)	—
Income from continuing operations	2,804			22,015			—			(22,015		)	2,804
Loss from discontinued operations, net of tax	—			(49		)	(9		)	—			(58		)
Equity in loss of subsidiaries from discontinued operations	(58		)	—			—			58			—
Net income (loss)	$	2,746		$	21,966		$	(9	)	$	(21,957	)	$	2,746

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Total revenue	$	—		$	402,040		$	115		$	(115	)	$	402,040
Home construction and land sales expenses	17,323			323,170			—			(115		)	340,378
Inventory impairments and abandonments	115			892			—			—			1,007
Gross (loss) profit	(17,438		)	77,978			115			—			60,655
Commissions	—			15,737			—			—			15,737
General and administrative expenses	—			38,646			(4		)	—			38,642
Depreciation and amortization	—			2,770			—			—			2,770
Operating (loss) income	(17,438		)	20,825			119			—			3,506
Equity in income of unconsolidated entities	—			(64		)	—			—			(64		)
Other (expense) income, net	(242		)	204			(4		)	—			(42		)
(Loss) income from continuing operations before income taxes	(17,680		)	20,965			115			—			3,400
Expense (benefit) from income taxes	20,385			(24,336		)	29			—			(3,922		)
Equity in income of subsidiaries	45,387			—			—			(45,387		)	—
Income from continuing operations	7,322			45,301			86			(45,387		)	7,322
Loss from discontinued operations, net of tax	—			(7		)	(4		)	—			(11		)
Equity in loss of subsidiaries from discontinued operations	(11		)	—			—			11			—
Net income	$	7,311		$	45,294		$	82		$	(45,376	)	$	7,311

Beazer Homes USA, Inc.

Condensed Consolidating Statements of Cash Flow Information

(Unaudited)



in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2019
Net cash used in operating activities	$	(35,926	)	$	(48,490	)	$	(114	)	$	—		$	(84,530	)
Cash flows from investing activities:
Capital expenditures	—			(2,632		)	—			—			(2,632		)
Proceeds from sale of fixed assets	—			66			—			—			66
Return of capital from unconsolidated entities	—			19			—			—			19
Advances to/from subsidiaries	(21,906		)	—			117			21,789			—
Net cash (used in) provided by investing activities	(21,906		)	(2,547		)	117			21,789			(2,547		)
Cash flows from financing activities:
Repayment of debt	—			(1,150		)	—			—			(1,150		)
Repayment of borrowings from credit facility	(95,000		)	—			—			—			(95,000		)
Borrowings from credit facility	125,000			—			—			—			125,000
Tax payments for stock-based compensation awards	(2,646		)	—			—			—			(2,646		)
Stock option exercises and other financing activities	(1,885		)	—			—			—			(1,885		)
Advances to/from subsidiaries	—			21,789			—			(21,789		)	—
Net cash provided by financing activities	25,469			20,639			—			(21,789		)	24,319
Decrease in cash, cash equivalents, and restricted cash	(32,363		)	(30,398		)	3			—			(62,758		)
Cash, cash equivalents, and restricted cash at beginning of period	85,464			37,321			9			—			122,794
Cash, cash equivalents, and restricted cash at end of period	$	53,101		$	6,923		$	12		$	—		$	60,036

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Net cash used in operating activities	$	(31,908	)	$	(22,756	)	$	(26	)	$	—		$	(54,690	)
Cash flows from investing activities:
Capital expenditures	—			(6,354		)	—			—			(6,354		)
Proceeds from sale of fixed assets	—			54			—			—			54
Return of capital from unconsolidated entities	532			—			(532		)	—			—
Advances to/from subsidiaries	21,204			—			—			(21,204		)	—
Net cash provided by (used in) investing activities	21,736			(6,300		)	(532		)	(21,204		)	(6,300		)
Cash flows from financing activities:
Repayment of debt	(11		)	(1,468		)	—			—			(1,479		)
Proceeds from issuance of new debt	—			—			—			—			—
Borrowings from credit facility	100,000			—			—			—			100,000
Repurchase of common stock	(16,500		)	—			—			—			(16,500		)
Repayment of borrowings from credit facility	(75,000		)	—			—			—			(75,000		)
Debt issuance costs	(400		)	—			—			—			(400		)
Tax payments for stock-based compensation awards	(1,850		)	—			—			—			(1,850		)
Stock option exercises and other financing activities	7			—			—			—			7
Advances to/from subsidiaries	—			(21,204		)	—			21,204			—
Net cash provided by (used in) financing activities	6,246			(22,672		)	—			21,204			4,778
Decrease in cash, cash equivalents, and restricted cash	(3,926		)	(51,728		)	(558		)	—			(56,212		)
Cash, cash equivalents, and restricted cash at beginning of period	104,796			47,877			575			—			153,248
Cash, cash equivalents, and restricted cash at end of period	$	100,870		$	(3,851	)	$	17		$	—		$	97,036

Discontinued Operations

3 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

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. 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, the results of our New Jersey division are not included in the discontinued operations information shown below.

We have classified the results of operations of our discontinued operations separately in the accompanying condensed consolidated statements of operations for all periods presented. There were no material assets or liabilities related to our discontinued operations as of December 31, 2019 or September 30, 2019. Discontinued operations were not segregated in the condensed consolidated statements of cash flows. Therefore, amounts for certain captions in the condensed consolidated statements of cash flows will not agree with the respective data in the condensed consolidated statements of operations. The results of our discontinued operations in the condensed consolidated statements of operations for the periods presented were as follows:



	Three Months Ended
	December 31,
in thousands	2019			2018
Total revenue	$	—		$	55
Home construction and land sales expenses	1			33
Gross (loss) profit	(1		)	22
General and administrative expenses	74			33
Operating loss	(75		)	(11		)
Equity in loss of unconsolidated entities	—			(1		)
Other expense, net	—			(1		)
Loss from discontinued operations before income taxes	(75		)	(13		)
Benefit from income taxes	(17		)	(2		)
Loss from discontinued operations, net of tax	$	(58	)	$	(11	)

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Consolidation

Our fiscal year 2020 began on October 1, 2019 and ends on September 30, 2020. Our fiscal year 2019 began on October 1, 2018 and ended on September 30, 2019.

Use of Estimates

Share Repurchase Program

All shares have been retired upon repurchase during fiscal 2019.

Inventory Valuation

Revenue Recognition

Homebuilding revenue

Land sales and other revenue

Revenue Recognition


•	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

Recent Accounting Pronouncements

Fair Value Measurements


•	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).

Investments in Unconsolidated Entities (Tables)

3 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

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 December 31, 2019 and September 30, 2019:



in thousands	December 31, 2019		September 30, 2019
Investment in unconsolidated entities	$	3,930	$	3,962
Total equity of unconsolidated entities	8,501		9,969
Total outstanding borrowings of unconsolidated entities	12,618		12,658

Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented:



	Three Months Ended
	December 31,
in thousands	2019			2018
Equity in loss of unconsolidated entities	$	(13	)	$	(64	)

Inventory (Tables)

3 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Schedule of inventory

The components of our owned inventory are as follows as of December 31, 2019 and September 30, 2019:



in thousands	December 31, 2019		September 30, 2019
Homes under construction	$	580,580	$	507,542
Development projects in progress	732,380		738,201
Land held for future development	28,531		28,531
Land held for sale	11,443		12,662
Capitalized interest	137,010		136,565
Model homes	84,336		80,747
Total owned inventory	$	1,574,280	$	1,504,248

Schedule of total owned inventory, by segment

Total owned inventory by reportable segment is presented in the table below as of December 31, 2019 and September 30, 2019:



in thousands	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
December 31, 2019
West Segment	$	733,525	$	3,483	$	4,235	$	741,243
East Segment	270,930		14,077		3,810		288,817
Southeast Segment	333,623		10,971		3,398		347,992
Corporate and unallocated ^(b)	196,228		—		—		196,228
Total	$	1,534,306	$	28,531	$	11,443	$	1,574,280
September 30, 2019
West Segment	$	723,094	$	3,483	$	5,160	$	731,737
East Segment	228,937		14,077		4,104		247,118
Southeast Segment	318,737		10,971		3,398		333,106
Corporate and unallocated ^(b)	192,287		—		—		192,287
Total	$	1,463,055	$	28,531	$	12,662	$	1,504,248

^(a)Projects in progress include homes under construction, development projects in progress, capitalized interest, and model home categories from the preceding table.

^(b)Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment.

Summary of interests in lot option agreements

The following table provides a summary of our interests in lot option agreements as of December 31, 2019 and September 30, 2019:



in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of December 31, 2019
Unconsolidated lot option agreements	$	74,836	$	386,762
As of September 30, 2019
Unconsolidated lot option agreements	$	78,202	$	389,705

Borrowings (Tables)

3 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

The Company's debt, net of unamortized debt issuance costs consisted of the following as of December 31, 2019 and September 30, 2019:



in thousands	Final Maturity Date	December 31, 2019			September 30, 2019
Senior Unsecured Term Loan (Term Loan)	September 2022	$	150,000		$	150,000
6 3/4% Senior Notes (2025 Notes)	March 2025	229,555			229,555
5 7/8% Senior Notes (2027 Notes)	October 2027	394,000			394,000
7 1/4% Senior Notes (2029 Notes)	October 2029	350,000			350,000
Unamortized debt issuance costs		(12,080		)	(12,470		)
Total Senior Notes, net		1,111,475			1,111,085
Junior Subordinated Notes (net of unamortized accretion of $34,186 and $34,703, respectively)	July 2036	66,587			66,070
Revolving Credit Facility	February 2022	30,000			—
Other Secured Notes payable	Various Dates	—			1,154
Total debt, net		$	1,208,062		$	1,178,309

Debt Instrument Redemption

For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes:



Senior Note Description	Issuance Date	Maturity Date	Redemption Terms
6 3/4% Senior Notes	March 2017	March 2025	On or prior to March 15, 2020, we may redeem up to 35% of the aggregate principal amount of the 2025 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 106.75% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2025 Notes originally issued remains outstanding immediately after such redemption.
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 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.
5 7/8% Senior Notes	October 2017	October 2027	On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2027 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 105.875% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2027 Notes originally issued remains outstanding immediately after such redemption.
5 7/8% Senior Notes	October 2017	October 2027	Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.
7 1/4% Senior Notes	September 2019	October 2029	On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption.
7 1/4% Senior Notes	September 2019	October 2029	Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Contingencies (Tables)

3 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Warranty reserves

Changes in warranty reserves are as follows for the periods presented:



	Three Months Ended
	December 31,
in thousands	2019			2018
Balance at beginning of period	$	13,388		$	15,331
Accruals for warranties issued ^(a)	1,665			2,305
Changes in liability related to warranties existing in prior periods	67			(1,874		)
Payments made	(2,474		)	(2,330		)
Balance at end of period	$	12,646		$	13,432

Operating Leases (Tables)

3 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease, Cost

At December 31, 2019, weighted-average remaining lease term and discount rate were as follows:



Weighted-average remaining lease term	4.4 years
Weighted-average discount rate	4.94%

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 December 31, 2019:



Fiscal Years Ending September 30,
in thousands
2020 ^(a)	$	3,474
2021	4,217
2022	3,378
2023	2,560
2024	1,435
Thereafter	1,838
Total lease payments ^(b)	$	16,902
Less: Imputed interest	$	1,744
Total operating lease liabilities	$	15,158

^(a)Remaining lease payments are for the period beginning January 1, 2020 through September 30, 2020.

Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of fair value assets measured on a recurring and non-recurring basis



in thousands	Level 1		Level 2		Level 3			Total
As of December 31, 2019
Deferred compensation plan assets ^(a)	$	—	$	2,136	$	—		$	2,136
As of September 30, 2019
Deferred compensation plan assets ^(a)	$	—	$	1,970	$	—		$	1,970
Development projects in progress ^(b)	—		—		84,982		^(c)	84,982
Land held for sale ^(b)	—		—		5,207		^(c)	5,207

^(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 development projects in progress and land held for sale assets that were impaired during the period indicated.

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 December 31, 2019 and September 30, 2019:



	As of December 31, 2019				As of September 30, 2019
in thousands	Carrying Amount ^(a)		Fair Value		Carrying Amount ^(a)		Fair Value
Senior Notes ^(b)	$	1,111,475	$	1,167,303	$	1,111,085	$	1,115,011
Junior Subordinated Notes ^(c)	66,587		66,587		66,070		66,070
Total	$	1,178,062	$	1,233,890	$	1,177,155	$	1,181,081

^(a)Carrying amounts are net of unamortized debt premiums/discounts, debt issuance costs, or accretion.

^(b) The estimated fair value for our publicly-held Senior Notes has been determined using quoted market rates (Level 2).

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Stock-based Compensation (Tables)

3 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of stock options outstanding

Following is a summary of stock option activity for the three months ended December 31, 2019:



	Three Months Ended
	December 31, 2019
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	523,754		$	14.34
Granted	—		—
Exercised	(123,367	)	11.08
Cancelled	(100	)	15.47
Outstanding at end of period	400,287		$	15.35
Exercisable at end of period	363,931		$	15.64
Vested or expected to vest in the future	398,358		$	15.38

Schedule of nonvested stock awards activity

Following is a summary of restricted stock activity for the three months ended December 31, 2019:



	Three Months Ended December 31, 2019
	Performance-Based Restricted Shares		Time-Based Restricted Shares		Total Restricted Shares
Beginning of period	778,814		611,607		1,390,421
Granted	260,131		313,829		573,960
Vested	(242,921	)	(289,648	)	(532,569	)
Forfeited	—		(1,202	)	(1,202	)
End of period	796,024		634,586		1,430,610

Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2019

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:



	Three Months Ended December 31,
in thousands, except per share data	2019			2018
Numerator:
Income from continuing operations	$	2,804		$	7,322
Loss from discontinued operations, net of tax	(58		)	(11		)
Net income	$	2,746		$	7,311

Denominator:
Basic weighted-average shares	29,746			31,801
Dilutive effect of restricted stock awards	353			243
Dilutive effect of stock options	39			11
Diluted weighted-average shares ^(a)	30,138			32,055

Basic income per share:
Continuing operations	$	0.09		$	0.23
Discontinued operations	—			—
Total	$	0.09		$	0.23

Diluted income per share:
Continuing operations	$	0.09		$	0.23
Discontinued operations	—			—
Total	$	0.09		$	0.23

^(a) The following potentially dilutive shares were excluded from the calculation of diluted income per share as a result of their anti-dilutive effect.

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three Months Ended December 31,
in thousands	2019	2018
Stock options	210,509	493
Time-based restricted stock	—	195

Segment Information (Tables)

3 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of segment reporting information

The following table presents capital expenditures by segment for the periods presented:



	Three Months Ended
	December 31,
in thousands	2019		2018
Capital Expenditures
West	$	1,484	$	2,651
East	452		762
Southeast	516		859
Corporate and unallocated	180		2,082
Total capital expenditures	$	2,632	$	6,354

The following table presents assets by segment as of December 31, 2019 and September 30, 2019:



in thousands	December 31, 2019		September 30, 2019
Assets
West	$	764,868	$	751,110
East	298,389		286,340
Southeast	368,332		359,431
Corporate and unallocated ^(a)	536,515		560,763
Total assets	$	1,968,104	$	1,957,644

^(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.

The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented:



	Three Months Ended
	December 31,
in thousands	2019		2018
Revenue
West	$	254,398	$	208,944
East	78,040		88,746
Southeast	85,366		104,350
Total revenue	$	417,804	$	402,040



	Three Months Ended
	December 31,
in thousands	2019			2018
Operating income ^(a)
West	$	30,331		$	24,261
East	5,321			5,395
Southeast	3,156			1,380
Segment total	38,808			31,036
Corporate and unallocated ^(b)	(34,862		)	(27,530		)
Total operating income	$	3,946		$	3,506



	Three Months Ended
	December 31,
in thousands	2019		2018
Depreciation and amortization
West	$	1,808	$	1,278
East	554		538
Southeast	540		610
Segment total	2,902		2,426
Corporate and unallocated ^(b)	525		344
Total depreciation and amortization	$	3,427	$	2,770

^(a) Operating income is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5).

Supplemental Guarantor Information (Tables)

3 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Unaudited Condensed Consolidating Balance Sheet Information

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

December 31, 2019

(Unaudited)



in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	35,258	$	6,007	$	12	$	—		$	41,277
Restricted cash	17,847		912		—		—			18,759
Accounts receivable (net of allowance of $313)	—		19,439		—		—			19,439
Income tax receivable	4,612		—		—		—			4,612
Owned inventory	—		1,574,280		—		—			1,574,280
Investments in unconsolidated entities	773		3,157		—		—			3,930
Deferred tax assets, net	247,382		—		—		—			247,382
Property and equipment, net	—		26,623		—		—			26,623
Operating lease right-of-use assets	—		12,975		—		—			12,975
Investments in subsidiaries	711,246		—		—		(711,246		)	—
Intercompany	748,246		—		1,676		(749,922		)	—
Goodwill	—		11,376		—		—			11,376
Other assets	1,098		6,353		—		—			7,451
Total assets	$	1,766,462	$	1,661,122	$	1,688	$	(1,461,168	)	$	1,968,104
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	110,153	$	—	$	—		$	110,153
Operating lease liabilities	—		15,158		$	—	$	—		$	15,158
Other liabilities	17,444		77,991		16		—			95,451
Intercompany	1,676		748,246		—		(749,922		)	—
Total debt (net of premium and debt issuance costs)	1,208,062		—		—		—			1,208,062
Total liabilities	1,227,182		951,548		16		(749,922		)	1,428,824
Stockholders’ equity	539,280		709,574		1,672		(711,246		)	539,280
Total liabilities and stockholders’ equity	$	1,766,462	$	1,661,122	$	1,688	$	(1,461,168	)	$	1,968,104

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

September 30, 2019

(Unaudited)



in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	70,617	$	36,115	$	9	$	—		$	106,741
Restricted cash	14,847		1,206		—		—			16,053
Accounts receivable (net of allowance of $304)	—		26,394		1		—			26,395
Income tax receivable	4,935		—		—		—			4,935
Owned inventory	—		1,504,248		—		—			1,504,248
Investments in unconsolidated entities	773		3,189		—		—			3,962
Deferred tax assets, net	246,957		—		—		—			246,957
Property and equipment, net	—		27,421		—		—			27,421
Investments in subsidiaries	636,791		—		—		(636,791		)	—
Intercompany	753,769		—		1,680		(755,449		)	—
Goodwill	—		11,376		—		—			11,376
Other assets	1,235		8,317		4		—			9,556
Total assets	$	1,729,924	$	1,618,266	$	1,694	$	(1,392,240	)	$	1,957,644
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	131,152	$	—	$	—		$	131,152
Other liabilities	12,335		97,081		13		—			109,429
Intercompany	1,680		753,769		—		(755,449		)	—
Total debt (net of premium and debt issuance costs)	1,177,155		1,154		—		—			1,178,309
Total liabilities	1,191,170		983,156		13		(755,449		)	1,418,890
Stockholders’ equity	538,754		635,110		1,681		(636,791		)	538,754
Total liabilities and stockholders’ equity	$	1,729,924	$	1,618,266	$	1,694	$	(1,392,240	)	$	1,957,644

Unaudited Condensed Consolidating Statements of Income (Loss) and Unaudited Comprehensive Income (Loss)

Beazer Homes USA, Inc.

Condensed Consolidating Statements of Operations

(Unaudited)



in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2019
Total revenue	$	—		$	417,804		$	—		$	—		$	417,804
Home construction and land sales expenses	19,669			334,998			—			—			354,667
Gross (loss) profit	(19,669		)	82,806			—			—			63,137
Commissions	—			16,065			—			—			16,065
General and administrative expenses	—			39,699			—			—			39,699
Depreciation and amortization	—			3,427			—			—			3,427
Operating (loss) income	(19,669		)	23,615			—			—			3,946
Equity in income of unconsolidated entities	—			(13		)	—			—			(13		)
Other (expense) income, net	(1,442		)	102			—			—			(1,340		)
(Loss) income from continuing operations before income taxes	(21,111		)	23,704			—			—			2,593
(Benefit) expense from income taxes	(1,900		)	1,689			—			—			(211		)
Equity in income of subsidiaries	22,015			—			—			(22,015		)	—
Income from continuing operations	2,804			22,015			—			(22,015		)	2,804
Loss from discontinued operations, net of tax	—			(49		)	(9		)	—			(58		)
Equity in loss of subsidiaries from discontinued operations	(58		)	—			—			58			—
Net income (loss)	$	2,746		$	21,966		$	(9	)	$	(21,957	)	$	2,746

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Total revenue	$	—		$	402,040		$	115		$	(115	)	$	402,040
Home construction and land sales expenses	17,323			323,170			—			(115		)	340,378
Inventory impairments and abandonments	115			892			—			—			1,007
Gross (loss) profit	(17,438		)	77,978			115			—			60,655
Commissions	—			15,737			—			—			15,737
General and administrative expenses	—			38,646			(4		)	—			38,642
Depreciation and amortization	—			2,770			—			—			2,770
Operating (loss) income	(17,438		)	20,825			119			—			3,506
Equity in income of unconsolidated entities	—			(64		)	—			—			(64		)
Other (expense) income, net	(242		)	204			(4		)	—			(42		)
(Loss) income from continuing operations before income taxes	(17,680		)	20,965			115			—			3,400
Expense (benefit) from income taxes	20,385			(24,336		)	29			—			(3,922		)
Equity in income of subsidiaries	45,387			—			—			(45,387		)	—
Income from continuing operations	7,322			45,301			86			(45,387		)	7,322
Loss from discontinued operations, net of tax	—			(7		)	(4		)	—			(11		)
Equity in loss of subsidiaries from discontinued operations	(11		)	—			—			11			—
Net income	$	7,311		$	45,294		$	82		$	(45,376	)	$	7,311

Unaudited Condensed Consolidating Statements of Cash Flow Information

Beazer Homes USA, Inc.

Condensed Consolidating Statements of Cash Flow Information

(Unaudited)



in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2019
Net cash used in operating activities	$	(35,926	)	$	(48,490	)	$	(114	)	$	—		$	(84,530	)
Cash flows from investing activities:
Capital expenditures	—			(2,632		)	—			—			(2,632		)
Proceeds from sale of fixed assets	—			66			—			—			66
Return of capital from unconsolidated entities	—			19			—			—			19
Advances to/from subsidiaries	(21,906		)	—			117			21,789			—
Net cash (used in) provided by investing activities	(21,906		)	(2,547		)	117			21,789			(2,547		)
Cash flows from financing activities:
Repayment of debt	—			(1,150		)	—			—			(1,150		)
Repayment of borrowings from credit facility	(95,000		)	—			—			—			(95,000		)
Borrowings from credit facility	125,000			—			—			—			125,000
Tax payments for stock-based compensation awards	(2,646		)	—			—			—			(2,646		)
Stock option exercises and other financing activities	(1,885		)	—			—			—			(1,885		)
Advances to/from subsidiaries	—			21,789			—			(21,789		)	—
Net cash provided by financing activities	25,469			20,639			—			(21,789		)	24,319
Decrease in cash, cash equivalents, and restricted cash	(32,363		)	(30,398		)	3			—			(62,758		)
Cash, cash equivalents, and restricted cash at beginning of period	85,464			37,321			9			—			122,794
Cash, cash equivalents, and restricted cash at end of period	$	53,101		$	6,923		$	12		$	—		$	60,036

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Net cash used in operating activities	$	(31,908	)	$	(22,756	)	$	(26	)	$	—		$	(54,690	)
Cash flows from investing activities:
Capital expenditures	—			(6,354		)	—			—			(6,354		)
Proceeds from sale of fixed assets	—			54			—			—			54
Return of capital from unconsolidated entities	532			—			(532		)	—			—
Advances to/from subsidiaries	21,204			—			—			(21,204		)	—
Net cash provided by (used in) investing activities	21,736			(6,300		)	(532		)	(21,204		)	(6,300		)
Cash flows from financing activities:
Repayment of debt	(11		)	(1,468		)	—			—			(1,479		)
Proceeds from issuance of new debt	—			—			—			—			—
Borrowings from credit facility	100,000			—			—			—			100,000
Repurchase of common stock	(16,500		)	—			—			—			(16,500		)
Repayment of borrowings from credit facility	(75,000		)	—			—			—			(75,000		)
Debt issuance costs	(400		)	—			—			—			(400		)
Tax payments for stock-based compensation awards	(1,850		)	—			—			—			(1,850		)
Stock option exercises and other financing activities	7			—			—			—			7
Advances to/from subsidiaries	—			(21,204		)	—			21,204			—
Net cash provided by (used in) financing activities	6,246			(22,672		)	—			21,204			4,778
Decrease in cash, cash equivalents, and restricted cash	(3,926		)	(51,728		)	(558		)	—			(56,212		)
Cash, cash equivalents, and restricted cash at beginning of period	104,796			47,877			575			—			153,248
Cash, cash equivalents, and restricted cash at end of period	$	100,870		$	(3,851	)	$	17		$	—		$	97,036

Discontinued Operations (Tables)

3 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Results of Discontinued Operations

The results of our discontinued operations in the condensed consolidated statements of operations for the periods presented were as follows:



	Three Months Ended
	December 31,
in thousands	2019			2018
Total revenue	$	—		$	55
Home construction and land sales expenses	1			33
Gross (loss) profit	(1		)	22
General and administrative expenses	74			33
Operating loss	(75		)	(11		)
Equity in loss of unconsolidated entities	—			(1		)
Other expense, net	—			(1		)
Loss from discontinued operations before income taxes	(75		)	(13		)
Benefit from income taxes	(17		)	(2		)
Loss from discontinued operations, net of tax	$	(58	)	$	(11	)

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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+ Details

Basis of Presentation and Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Accounting Policies [Abstract]
Authorized amount repurchase of common stock	$ 50,000,000.0
Share repurchases		$ 16,500,000	$ 34,600,000
Completed common stock repurchase (in shares)	0
Remaining authorized repurchase amount	$ 15,400,000

Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 417,804	$ 402,040
Customer deposits	13,910		$ 11,539
Contract with customer, liability, revenue recognized	6,100
Refunded by buyer	200
Contract with customer, liability, remaining liability	5,200
Homebuilding revenue
Disaggregation of Revenue [Line Items]
Total revenue	417,399	400,982
Land sales and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 405	$ 1,058

Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Oct. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 12,975
Operating lease liabilities	$ 15,158
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 13,900
Operating lease liabilities		$ 16,028

Supplemental Cash Flow Information - Supplemental Disclosure of Non-cash Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Oct. 01, 2019	Sep. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 12,975
Operating lease liabilities	15,158
Supplemental disclosure of cash activity:
Interest payments	15,954	$ 13,986
Income tax payments	0	121
Tax refunds received	303	1,148
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	41,277	84,399		$ 106,741
Restricted cash	18,759	12,637		$ 16,053
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 60,036	$ 97,036
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets			$ 13,900
Operating lease liabilities			$ 16,028

Investments in Unconsolidated Entities - Outstanding Borrowings of Unconsolidated Entities and Equity in Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Investment in unconsolidated entities	$ 3,930		$ 3,962
Total equity of unconsolidated entities	8,501		9,969
Total outstanding borrowings of unconsolidated entities	12,618		$ 12,658
Equity in loss of unconsolidated entities	$ (13)	$ (64)

Investments in Unconsolidated Entities - Narrative (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Impairment of unconsolidated entity investments	$ 0	$ 0
Financial Guarantee
Schedule of Equity Method Investments [Line Items]
Outstanding guarantees	$ 0		$ 0

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Inventory Disclosure [Abstract]
Homes under construction	$ 580,580	$ 507,542
Development projects in progress	732,380	738,201
Land held for future development	28,531	28,531
Land held for sale	11,443	12,662
Capitalized interest	137,010	136,565	$ 151,886	$ 144,645
Model homes	84,336	80,747
Total owned inventory	$ 1,574,280	$ 1,504,248

Inventory - Narrative (Details) $ in Thousands	3 Months Ended
Inventory - Narrative (Details) $ in Thousands	Dec. 31, 2019 USD ($) home Community	Dec. 31, 2018 USD ($) Community	Sep. 30, 2019 USD ($) home
Inventory Disclosure [Abstract]
Number of substantially completed homes unsold \| home	267		238
Total value of substantially completed homes \| $	$ 90,200		$ 82,200
Threshold number of homes below a minimum threshold of profitability \| home	10
Number of communities on watch list \| Community	4	4
Inventory impairments and abandonments \| $	$ 0	$ 1,007
Number of impaired communities \| Community		1

Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Segment Reporting Information [Line Items]
Projects in progress	$ 1,534,306	$ 1,463,055
Land held for future development	28,531	28,531
Land held for sale	11,443	12,662
Total owned inventory	1,574,280	1,504,248
Corporate and unallocated
Segment Reporting Information [Line Items]
Projects in progress	196,228	192,287
Land held for future development	0	0
Land held for sale	0	0
Total owned inventory	196,228	192,287
West Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	733,525	723,094
Land held for future development	3,483	3,483
Land held for sale	4,235	5,160
Total owned inventory	741,243	731,737
East Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	270,930	228,937
Land held for future development	14,077	14,077
Land held for sale	3,810	4,104
Total owned inventory	288,817	247,118
Southeast Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	333,623	318,737
Land held for future development	10,971	10,971
Land held for sale	3,398	3,398
Total owned inventory	$ 347,992	$ 333,106

Interest - Schedule of Capitalized Interest (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Capitalized interest in inventory, beginning of period	$ 136,565	$ 144,645
Interest incurred	21,556	24,921
Capitalized interest impaired	0	(115)
Interest expense not qualified for capitalization and included as other expense	(1,442)	(242)
Capitalized interest amortized to home construction and land sales expenses	(19,669)	(17,323)
Capitalized interest in inventory, end of period	$ 137,010	$ 151,886

Borrowings - Schedule of Long-term Debt (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019	Jul. 30, 2016
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (12,080,000)	$ (12,470,000)
Total debt, net	1,208,062,000	1,178,309,000
Senior Notes
Debt Instrument [Line Items]
Senior Unsecured Term Loan (Term Loan)	150,000,000	150,000,000
Unamortized debt issuance costs	(12,080,000)	(12,470,000)
Total debt, net	1,111,475,000	1,111,085,000
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Total debt, net	$ 229,555,000	229,555,000
Stated interest rate on debt instrument (percent)	6.75%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Total debt, net	$ 394,000,000	394,000,000
Stated interest rate on debt instrument (percent)	5.875%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029
Debt Instrument [Line Items]
Total debt, net	$ 350,000,000	350,000,000
Stated interest rate on debt instrument (percent)	7.25%
Junior Subordinated Notes
Debt Instrument [Line Items]
Total debt, net	$ 66,587,000	66,070,000
Stated interest rate on debt instrument (percent)			7.987%
Unamortized accretion	34,186,000	34,703,000
Other Secured Notes payable
Debt Instrument [Line Items]
Total debt, net	0	1,154,000
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility	$ 30,000,000	$ 0
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	6.75%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	5.88%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	7.25%

Borrowings - Narrative (Details)	Sep. 09, 2019 USD ($)	Jul. 30, 2016	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($) lender	Sep. 01, 2019 USD ($)	May 31, 2018 USD ($)	Jan. 31, 2010 USD ($)
Line of Credit Facility [Abstract]
Amount of available borrowings under the secured revolving credit facility			$ 220,000,000
Senior Notes [Abstract]
Ownership interest In guarantor subsidiaries			100.00%
Secured Debt [Abstract]
Total debt, net			$ 1,208,062,000	$ 1,178,309,000
Senior Notes
Secured Debt [Abstract]
Total debt, net			1,111,475,000	1,111,085,000
Junior Subordinated Notes
Unsecured Debt [Abstract]
Stated interest rate on debt instrument (percent)		7.987%
Junior Subordinated Notes [Abstract]
Effective period of debt instrument interest rate		10 years
Face amount modification							$ 75,000,000
Unamortized accretion			34,186,000	34,703,000
Secured Debt [Abstract]
Total debt, net			66,587,000	66,070,000
Other secured notes payable
Secured Debt [Abstract]
Total debt, net			0	$ 1,154,000
Revolving Credit Facility
Line of Credit Facility [Abstract]
Credit facility borrowing capacity					$ 250,000,000
Number of lenders \| lender				4
Borrowings outstanding			30,000,000	$ 0
Letters of credit secured using cash collateral			0	0
Letter of Credit, Cash Secured
Line of Credit Facility [Abstract]
Letters of credit secured using cash collateral			16,600,000	$ 14,100,000
Standby Letters of Credit \| Standby Letters for Credit Facility
Line of Credit Facility [Abstract]
Credit facility borrowing capacity						$ 50,000,000.0
Letters of credit secured using cash collateral			$ 33,800,000
Standby Letters of Credit \| Backstop Standby Letters of Credit
Line of Credit Facility [Abstract]
Credit facility borrowing capacity						$ 40,000,000.0
Junior Subordinated Notes
Junior Subordinated Notes [Abstract]
Weighted average fixed interest rate of debt (percent)			4.39%
Senior Notes \| Senior Unsecured Term Loans September 2022
Unsecured Debt [Abstract]
Aggregate principal amount of debt	$ 150,000,000
Periodic payment	$ 50,000,000
Stated interest rate on debt instrument (percent)	4.875%

Borrowings - Debt Redemption (Details)	3 Months Ended
Borrowings - Debt Redemption (Details)	Dec. 31, 2019
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	6.75%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	5.875%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	7.25%
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Percentage of principal amount redeemed	35.00%
Stated interest rate on debt instrument (percent)	6.75%
Redemption price (as a percentage)	106.75%
Percentage of principal amount outstanding after redemption	65.00%
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	105.063%
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	103.375%
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.688%
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025 \| Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Percentage of principal amount redeemed	35.00%
Stated interest rate on debt instrument (percent)	5.88%
Redemption price (as a percentage)	105.875%
Percentage of principal amount outstanding after redemption	65.00%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.938%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.958%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.979%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029
Debt Instrument [Line Items]
Percentage of principal amount redeemed	35.00%
Stated interest rate on debt instrument (percent)	7.25%
Redemption price (as a percentage)	107.25%
Percentage of principal amount outstanding after redemption	65.00%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	103.325%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.417%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.208%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%

Contingencies - Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
Contingencies - Warranty (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Standard product warranty length, minimum	1 year
Standard product warranty length, maximum	2 years
Limited product warranty length (up to)	10 years
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 13,388	$ 15,331
Accruals for warranties issued	1,665	2,305
Changes in liability related to warranties existing in prior periods	67	(1,874)
Payments made	(2,474)	(2,330)
Balance at end of period	$ 12,646	$ 13,432

Operating Leases - Additional Information (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019 USD ($)
Leases [Abstract]
Operating lease expense	$ 1.2
Operating lease payments	$ 1.1

Contingencies - Litigation and Other Matters (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 Community	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)
Legal Reserve
Loss Contingencies [Line Items]
Accrued amounts for litigation and other contingent liabilities		$ 3.5	$ 3.4
Performance Bonds
Loss Contingencies [Line Items]
Letters of credit secured using cash collateral		50.4
Outstanding performance bonds		$ 276.1
CALIFORNIA
Loss Contingencies [Line Items]
Number of communities \| Community	15

Operating Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details)	Dec. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term	4 years 4 months 24 days
Weighted-average discount rate	4.94%

Operating Leases - Maturity Analysis of the Annual Undiscounted Cash Flows (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020	$ 3,474
2021	4,217
2022	3,378
2023	2,560
2024	1,435
Thereafter	1,838
Total lease payments	16,902
Less: Imputed interest	1,744
Total operating lease liabilities	15,158
Operating lease not yet commenced, payment	$ 4,000

Operating Leases - Future Minimum Rental Commitments (Details) $ in Millions	Sep. 30, 2019 USD ($)
Leases [Abstract]
Total future minimum rental commitments	$ 20.1
2020	4.7
2021	4.5
2022	3.6
2023	2.9
2024	1.8
Thereafter	$ 2.6

Fair Value Measurements - Fair Value Assets Measured on a Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 2,136	$ 1,970
Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	0	0
Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	2,136	1,970
Fair Value, Measurements, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 0	0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress		84,982
Land held for sale		5,207
Fair Value, Measurements, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress		0
Land held for sale		0
Fair Value, Measurements, Nonrecurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress		0
Land held for sale		0
Fair Value, Measurements, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress		84,982
Land held for sale		$ 5,207

Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 1,178,062	$ 1,177,155
Carrying Amount \| Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,111,475	1,111,085
Carrying Amount \| Junior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	66,587	66,070
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,233,890	1,181,081
Fair Value \| Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,167,303	1,115,011
Fair Value \| Junior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 66,587	$ 66,070

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
(Benefit) expense from income taxes	$ (211)	$ (3,922)
Tax credit	700	$ 5,300
Deferred tax assets, tax credit carryforwards	$ 4,600

Stock-based Compensation - Stock Options Outstanding (Details) - Stock Options	3 Months Ended
	Dec. 31, 2019 $ / shares shares
Shares
Outstanding at beginning of period (shares) \| shares	523,754
Granted (shares) \| shares	0
Exercised (shares) \| shares	(123,367)
Forfeited (shares) \| shares	(100)
Outstanding at end of period (shares) \| shares	400,287
Exercisable at end of period (shares) \| shares	363,931
Vested or expected to vest in the future (shares) \| shares	398,358
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 14.34
Granted (in dollars per share) \| $ / shares	0.00
Exercised (in dollars per share) \| $ / shares	11.08
Forfeited (in dollars per share) \| $ / shares	15.47
Outstanding at end of period (in dollars per share) \| $ / shares	15.35
Exercisable at end of period (in dollars per share) \| $ / shares	15.64
Vested or expected to vest in the future (in dollars per share) \| $ / shares	$ 15.38

Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2.3	$ 2.1
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs related to non-vested stock options award	$ 0.1		$ 0.1
Weighted average period to recognize remaining cost	11 months 12 days
Performance-Based Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Performance based restricted stock settled in cash payment (in shares)	135,337
Cash settlement of performance-based restricted stock	$ 2.1
Nonvested Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period to recognize remaining cost	2 years 1 month 24 days
Unrecognized compensation costs related to non-vested stock awards	$ 16.0		$ 9.0

Stock-based Compensation - Restricted Stock Awards (Details)	3 Months Ended
	Dec. 31, 2019 shares
Restricted Stock
Shares
Beginning of period (in shares)	1,390,421
Granted (in shares)	573,960
Vested (in shares)	(532,569)
Forfeited (in shares)	(1,202)
End of period (in shares)	1,430,610
Performance-Based Restricted Stock Awards
Shares
Beginning of period (in shares)	778,814
Granted (in shares)	260,131
Vested (in shares)	(242,921)
Forfeited (in shares)	0
End of period (in shares)	796,024
Time Based Restricted Stock Awards
Shares
Beginning of period (in shares)	611,607
Granted (in shares)	313,829
Vested (in shares)	(289,648)
Forfeited (in shares)	(1,202)
End of period (in shares)	634,586

Earnings Per Share - Schedule of Earnings Per Share. Basic and Dilutive (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Numerator:
(Loss) income from continuing operations	$ 2,804	$ 7,322
Loss from discontinued operations, net of tax	(58)	(11)
Net income	$ 2,746	$ 7,311
Denominator:
Basic weighted-average shares (in shares)	29,746	31,801
Dilutive effect of restricted stock awards (in shares)	353	243
Dilutive effect of stock options (in shares)	39	11
Dilutive weighted-average shares (in shares)	30,138	32,055
Basic income per share:
Continuing Operations (in dollars per share)	$ 0.09	$ 0.23
Discontinued Operations (in dollars per share)	0.00	0.00
Total (in dollars per share)	0.09	0.23
Diluted income per share:
Continuing operations (in dollars per share)	0.09	0.23
Discontinued operations (in dollars per share)	0.00	0.00
Total (in dollars per share)	$ 0.09	$ 0.23

Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock options
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	210,509	493
Time-based restricted stock
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	195

Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Other Liabilities Disclosure [Abstract]
Accrued bonus and deferred compensation	$ 22,254	$ 36,237
Accrued interest	17,328	12,767
Customer deposits	13,910	11,539
Accrued warranty expense	12,646	13,388	$ 13,432	$ 15,331
Litigation accrual	3,462	3,420
Income tax liabilities	825	648
Other	25,026	31,430
Total	$ 95,451	$ 109,429

Segment Information (Details) $ in Thousands	3 Months Ended
Segment Information (Details) $ in Thousands	Dec. 31, 2019 USD ($) segment state region	Dec. 31, 2018 USD ($)	Sep. 30, 2019 USD ($)
Segment Reporting [Abstract]
Number of states in which home building segments operate \| state	13
Number of regions in which entity operates \| region	3
Number of homebuilding segments \| segment	3
Segment Reporting Information [Line Items]
Revenue	$ 417,804	$ 402,040
Operating income	3,946	3,506
Depreciation and amortization	3,427	2,770
Capital expenditures	2,632	6,354
Assets	1,968,104		$ 1,957,644
Operating Segments
Segment Reporting Information [Line Items]
Operating income	38,808	31,036
Depreciation and amortization	2,902	2,426
Corporate and unallocated
Segment Reporting Information [Line Items]
Operating income	(34,862)	(27,530)
Depreciation and amortization	525	344
Capital expenditures	180	2,082
Assets	536,515		560,763
West Segment
Segment Reporting Information [Line Items]
Revenue	254,398	208,944
West Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	30,331	24,261
Depreciation and amortization	1,808	1,278
Capital expenditures	1,484	2,651
Assets	764,868		751,110
East Segment
Segment Reporting Information [Line Items]
Revenue	78,040	88,746
East Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	5,321	5,395
Depreciation and amortization	554	538
Capital expenditures	452	762
Assets	298,389		286,340
Southeast Segment
Segment Reporting Information [Line Items]
Revenue	85,366	104,350
Southeast Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	3,156	1,380
Depreciation and amortization	540	610
Capital expenditures	516	$ 859
Assets	$ 368,332		$ 359,431

Supplemental Guarantor Information - Unaudited Condensed Consolidating Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
ASSETS
Cash and cash equivalents	$ 41,277	$ 106,741	$ 84,399
Restricted cash	18,759	16,053	12,637
Accounts receivable (net of allowance of $313 and $304, respectively)	19,439	26,395
Income tax receivable	4,612	4,935
Owned inventory	1,574,280	1,504,248
Investments in unconsolidated entities	3,930	3,962
Deferred tax assets, net	247,382	246,957
Property and equipment, net	26,623	27,421
Operating lease right-of-use assets	12,975
Investments in subsidiaries	0	0
Intercompany	0	0
Goodwill	11,376	11,376
Other assets	7,451	9,556
Total assets	1,968,104	1,957,644
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	110,153	131,152
Operating lease liabilities	15,158
Other liabilities	95,451	109,429
Intercompany	0	0
Total debt, net	1,208,062	1,178,309
Total liabilities	1,428,824	1,418,890
Stockholders’ equity	539,280	538,754	$ 635,109	$ 644,027
Total liabilities and stockholders’ equity	1,968,104	1,957,644
Consolidating Adjustments
ASSETS
Cash and cash equivalents	0	0
Restricted cash	0	0
Accounts receivable (net of allowance of $313 and $304, respectively)	0	0
Income tax receivable	0	0
Owned inventory	0	0
Investments in unconsolidated entities	0	0
Deferred tax assets, net	0	0
Property and equipment, net	0	0
Operating lease right-of-use assets	0
Investments in subsidiaries	(711,246)	(636,791)
Intercompany	(749,922)	(755,449)
Goodwill	0	0
Other assets	0	0
Total assets	(1,461,168)	(1,392,240)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0	0
Operating lease liabilities	0
Other liabilities	0	0
Intercompany	(749,922)	(755,449)
Total debt, net	0	0
Total liabilities	(749,922)	(755,449)
Stockholders’ equity	(711,246)	(636,791)
Total liabilities and stockholders’ equity	(1,461,168)	(1,392,240)
Beazer Homes USA, Inc. \| Reportable Legal Entities
ASSETS
Cash and cash equivalents	35,258	70,617
Restricted cash	17,847	14,847
Accounts receivable (net of allowance of $313 and $304, respectively)	0	0
Income tax receivable	4,612	4,935
Owned inventory	0	0
Investments in unconsolidated entities	773	773
Deferred tax assets, net	247,382	246,957
Property and equipment, net	0	0
Operating lease right-of-use assets	0
Investments in subsidiaries	711,246	636,791
Intercompany	748,246	753,769
Goodwill	0	0
Other assets	1,098	1,235
Total assets	1,766,462	1,729,924
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0	0
Operating lease liabilities	0
Other liabilities	17,444	12,335
Intercompany	1,676	1,680
Total debt, net	1,208,062	1,177,155
Total liabilities	1,227,182	1,191,170
Stockholders’ equity	539,280	538,754
Total liabilities and stockholders’ equity	1,766,462	1,729,924
Guarantor Subsidiaries \| Reportable Legal Entities
ASSETS
Cash and cash equivalents	6,007	36,115
Restricted cash	912	1,206
Accounts receivable (net of allowance of $313 and $304, respectively)	19,439	26,394
Income tax receivable	0	0
Owned inventory	1,574,280	1,504,248
Investments in unconsolidated entities	3,157	3,189
Deferred tax assets, net	0	0
Property and equipment, net	26,623	27,421
Operating lease right-of-use assets	12,975
Investments in subsidiaries	0	0
Intercompany	0	0
Goodwill	11,376	11,376
Other assets	6,353	8,317
Total assets	1,661,122	1,618,266
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	110,153	131,152
Operating lease liabilities	15,158
Other liabilities	77,991	97,081
Intercompany	748,246	753,769
Total debt, net	0	1,154
Total liabilities	951,548	983,156
Stockholders’ equity	709,574	635,110
Total liabilities and stockholders’ equity	1,661,122	1,618,266
Non-Guarantor Subsidiaries \| Reportable Legal Entities
ASSETS
Cash and cash equivalents	12	9
Restricted cash	0	0
Accounts receivable (net of allowance of $313 and $304, respectively)	0	1
Income tax receivable	0	0
Owned inventory	0	0
Investments in unconsolidated entities	0	0
Deferred tax assets, net	0	0
Property and equipment, net	0	0
Operating lease right-of-use assets	0
Investments in subsidiaries	0	0
Intercompany	1,676	1,680
Goodwill	0	0
Other assets	0	4
Total assets	1,688	1,694
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0	0
Operating lease liabilities	0
Other liabilities	16	13
Intercompany	0	0
Total debt, net	0	0
Total liabilities	16	13
Stockholders’ equity	1,672	1,681
Total liabilities and stockholders’ equity	$ 1,688	$ 1,694

Supplemental Guarantor Information - Unaudited Condensed Consolidating Balance Sheet Information (Additional Information) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Condensed Financial Statements, Captions [Line Items]
Allowances for accounts receivable	$ 313	$ 304
Beazer Homes USA, Inc.
Condensed Financial Statements, Captions [Line Items]
Allowances for accounts receivable	$ 313	$ 304

Supplemental Guarantor Information - Unaudited Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]
Total revenue	$ 417,804	$ 402,040
Home construction and land sales expenses	354,667	340,378
Inventory impairments and abandonments	0	1,007
Gross profit	63,137	60,655
Commissions	16,065	15,737
General and administrative expenses	39,699	38,642
Depreciation and amortization	3,427	2,770
Operating income	3,946	3,506
Equity in loss of unconsolidated entities	(13)	(64)
Other (expense) income, net	(1,340)	(42)
Income from continuing operations before income taxes	2,593	3,400
(Benefit) expense from income taxes	(211)	(3,922)
Equity in income of subsidiaries	0	0
Income from continuing operations	2,804	7,322
Loss from discontinued operations, net of tax	(58)	(11)
Equity in loss of subsidiaries from discontinued operations	0	0
Net income	2,746	7,311
Consolidating Adjustments
Condensed Financial Statements, Captions [Line Items]
Total revenue	0	(115)
Home construction and land sales expenses	0	(115)
Inventory impairments and abandonments		0
Gross profit	0	0
Commissions	0	0
General and administrative expenses	0	0
Depreciation and amortization	0	0
Operating income	0	0
Equity in loss of unconsolidated entities	0	0
Other (expense) income, net	0	0
Income from continuing operations before income taxes	0	0
(Benefit) expense from income taxes	0	0
Equity in income of subsidiaries	(22,015)	(45,387)
Income from continuing operations	(22,015)	(45,387)
Loss from discontinued operations, net of tax	0	0
Equity in loss of subsidiaries from discontinued operations	58	11
Net income	(21,957)	(45,376)
Beazer Homes USA, Inc. \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Total revenue	0	0
Home construction and land sales expenses	19,669	17,323
Inventory impairments and abandonments		115
Gross profit	(19,669)	(17,438)
Commissions	0	0
General and administrative expenses	0	0
Depreciation and amortization	0	0
Operating income	(19,669)	(17,438)
Equity in loss of unconsolidated entities	0	0
Other (expense) income, net	(1,442)	(242)
Income from continuing operations before income taxes	(21,111)	(17,680)
(Benefit) expense from income taxes	(1,900)	20,385
Equity in income of subsidiaries	22,015	45,387
Income from continuing operations	2,804	7,322
Loss from discontinued operations, net of tax	0	0
Equity in loss of subsidiaries from discontinued operations	(58)	(11)
Net income	2,746	7,311
Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Total revenue	417,804	402,040
Home construction and land sales expenses	334,998	323,170
Inventory impairments and abandonments		892
Gross profit	82,806	77,978
Commissions	16,065	15,737
General and administrative expenses	39,699	38,646
Depreciation and amortization	3,427	2,770
Operating income	23,615	20,825
Equity in loss of unconsolidated entities	(13)	(64)
Other (expense) income, net	102	204
Income from continuing operations before income taxes	23,704	20,965
(Benefit) expense from income taxes	1,689	(24,336)
Equity in income of subsidiaries	0	0
Income from continuing operations	22,015	45,301
Loss from discontinued operations, net of tax	(49)	(7)
Equity in loss of subsidiaries from discontinued operations	0	0
Net income	21,966	45,294
Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Total revenue	0	115
Home construction and land sales expenses	0	0
Inventory impairments and abandonments		0
Gross profit	0	115
Commissions	0	0
General and administrative expenses	0	(4)
Depreciation and amortization	0	0
Operating income	0	119
Equity in loss of unconsolidated entities	0	0
Other (expense) income, net	0	(4)
Income from continuing operations before income taxes	0	115
(Benefit) expense from income taxes	0	29
Equity in income of subsidiaries	0	0
Income from continuing operations	0	86
Loss from discontinued operations, net of tax	(9)	(4)
Equity in loss of subsidiaries from discontinued operations	0	0
Net income	$ (9)	$ 82

Supplemental Guarantor Information - Unaudited Condensed Consolidating Statements of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]
Net cash used in operating activities	$ (84,530)	$ (54,690)
Cash flows from investing activities:
Capital expenditures	(2,632)	(6,354)
Proceeds from sale of fixed assets	66	54
Return of capital from unconsolidated entities	19	0
Advances to/from subsidiaries	0	0
Net cash used in investing activities	(2,547)	(6,300)
Cash flows from financing activities:
Repayment of debt	(1,150)	(1,479)
Proceeds from issuance of new debt		0
Borrowings from credit facility	125,000	100,000
Repayment of borrowings from credit facility	(95,000)	(75,000)
Debt issuance costs	0	(400)
Repurchase of common stock	0	(16,500)
Tax payments for stock-based compensation awards	(2,646)	(1,850)
Stock option exercises and other financing activities	(1,885)	7
Advances to/from subsidiaries	0	0
Net cash provided by financing activities	24,319	4,778
Decrease in cash, cash equivalents, and restricted cash	(62,758)	(56,212)
Cash, cash equivalents, and restricted cash at beginning of period	122,794	153,248
Cash, cash equivalents, and restricted cash at end of period	60,036	97,036
Consolidating Adjustments
Condensed Financial Statements, Captions [Line Items]
Net cash used in operating activities	0	0
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Return of capital from unconsolidated entities	0	0
Advances to/from subsidiaries	21,789	(21,204)
Net cash used in investing activities	21,789	(21,204)
Cash flows from financing activities:
Repayment of debt	0	0
Proceeds from issuance of new debt		0
Borrowings from credit facility	0	0
Repayment of borrowings from credit facility	0	0
Debt issuance costs		0
Repurchase of common stock		0
Tax payments for stock-based compensation awards	0	0
Stock option exercises and other financing activities	0	0
Advances to/from subsidiaries	(21,789)	21,204
Net cash provided by financing activities	(21,789)	21,204
Decrease in cash, cash equivalents, and restricted cash	0	0
Cash, cash equivalents, and restricted cash at beginning of period	0	0
Cash, cash equivalents, and restricted cash at end of period	0	0
Beazer Homes USA, Inc. \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash used in operating activities	(35,926)	(31,908)
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Return of capital from unconsolidated entities	0	532
Advances to/from subsidiaries	(21,906)	21,204
Net cash used in investing activities	(21,906)	21,736
Cash flows from financing activities:
Repayment of debt	0	(11)
Proceeds from issuance of new debt		0
Borrowings from credit facility	125,000	100,000
Repayment of borrowings from credit facility	(95,000)	(75,000)
Debt issuance costs		(400)
Repurchase of common stock		(16,500)
Tax payments for stock-based compensation awards	(2,646)	(1,850)
Stock option exercises and other financing activities	(1,885)	7
Advances to/from subsidiaries	0	0
Net cash provided by financing activities	25,469	6,246
Decrease in cash, cash equivalents, and restricted cash	(32,363)	(3,926)
Cash, cash equivalents, and restricted cash at beginning of period	85,464	104,796
Cash, cash equivalents, and restricted cash at end of period	53,101	100,870
Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash used in operating activities	(48,490)	(22,756)
Cash flows from investing activities:
Capital expenditures	(2,632)	(6,354)
Proceeds from sale of fixed assets	66	54
Return of capital from unconsolidated entities	19	0
Advances to/from subsidiaries	0	0
Net cash used in investing activities	(2,547)	(6,300)
Cash flows from financing activities:
Repayment of debt	(1,150)	(1,468)
Proceeds from issuance of new debt		0
Borrowings from credit facility	0	0
Repayment of borrowings from credit facility	0	0
Debt issuance costs		0
Repurchase of common stock		0
Tax payments for stock-based compensation awards	0	0
Stock option exercises and other financing activities	0	0
Advances to/from subsidiaries	21,789	(21,204)
Net cash provided by financing activities	20,639	(22,672)
Decrease in cash, cash equivalents, and restricted cash	(30,398)	(51,728)
Cash, cash equivalents, and restricted cash at beginning of period	37,321	47,877
Cash, cash equivalents, and restricted cash at end of period	6,923	(3,851)
Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash used in operating activities	(114)	(26)
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Return of capital from unconsolidated entities	0	(532)
Advances to/from subsidiaries	117	0
Net cash used in investing activities	117	(532)
Cash flows from financing activities:
Repayment of debt	0	0
Proceeds from issuance of new debt		0
Borrowings from credit facility	0	0
Repayment of borrowings from credit facility	0	0
Debt issuance costs		0
Repurchase of common stock		0
Tax payments for stock-based compensation awards	0	0
Stock option exercises and other financing activities	0	0
Advances to/from subsidiaries	0	0
Net cash provided by financing activities	0	0
Decrease in cash, cash equivalents, and restricted cash	3	(558)
Cash, cash equivalents, and restricted cash at beginning of period	9	575
Cash, cash equivalents, and restricted cash at end of period	$ 12	$ 17

Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations, net of tax	$ (58)	$ (11)
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenue	0	55
Home construction and land sales expenses	1	33
Gross (loss) profit	(1)	22
General and administrative expenses	74	33
Operating loss	(75)	(11)
Equity in loss of unconsolidated entities	0	(1)
Other expense, net	0	(1)
Loss from discontinued operations before income taxes	(75)	(13)
Benefit from income taxes	(17)	(2)
Loss from discontinued operations, net of tax	$ (58)	$ (11)

Description of Business (Details)	Dec. 31, 2019 state region
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states in which home building segments operate \| state	13
Number of regions in which entity operates \| region	3

Inventory - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Real Estate Properties [Line Items]
Deposits & Non-refundable Pre-acquisition Costs Incurred	$ 74,836	$ 78,202
Remaining Obligation	$ 386,762	$ 389,705

Fair Value Measurements - Narrative (Details) - USD ($)	3 Months Ended
Fair Value Measurements - Narrative (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Impairment charges on projects in progress	$ 0	$ 1,000,000.0
Impairment of land held for sale	$ 0	$ 0