Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Jul. 26, 2019
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	Jun. 30, 2019
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2019
Entity Shell Company	false
Entity Current Reporting Status	Yes
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		30,954,813

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
ASSETS
Cash and cash equivalents	$ 68,491	$ 139,805
Restricted cash	16,293	13,443
Accounts receivable (net of allowance of $358 and $378, respectively)	20,287	24,647
Owned inventory	1,702,724	1,692,284
Investments in unconsolidated entities	3,941	4,035
Deferred tax assets, net	258,713	213,955
Property and equipment, net	28,276	20,843
Goodwill	11,376	9,751
Other assets	10,178	9,339
Total assets	2,120,279	2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	152,441	126,432
Other liabilities	117,635	126,389
Total debt (net of premium of $2,061 and $2,640, respectively, and debt issuance costs of $12,027 and $14,336, respectively)	1,316,367	1,231,254
Total liabilities	1,586,443	1,484,075
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, 31,047,607 issued and outstanding and 33,522,046 issued and outstanding, respectively)	31	34
Paid-in capital	851,786	880,025
Accumulated deficit	(317,981)	(236,032)
Total stockholders’ equity	533,836	644,027
Total liabilities and stockholders’ equity	$ 2,120,279	$ 2,128,102

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
ASSETS
Allowances for accounts receivable	$ 358	$ 378
LIABILITIES AND STOCKHOLDERS’ EQUITY
Debt (premium) discounts	(2,061)	(2,640)
Debt issuance costs	$ 12,027	$ 14,336
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	31,047,607	33,522,046
Common stock, shares outstanding	31,047,607	33,522,046

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended			9 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Total revenue	$ 482,738		$ 511,521	$ 1,306,038	$ 1,339,188
Home construction and land sales expenses	410,974		428,109	1,107,681	1,119,870
Inventory impairments and abandonments	0	$ 147,600	168	148,618	168
Gross profit	71,764		83,244	49,739	219,150
Commissions	18,230		19,535	49,965	51,225
General and administrative expenses	40,749		42,473	116,763	120,610
Depreciation and amortization	3,242		3,656	8,912	9,229
Operating income (loss)	9,543		17,580	(125,901)	38,086
Equity in income of unconsolidated entities	299		147	316	302
Gain (loss) on extinguishment of debt	358		0	574	(25,904)
Other expense, net	(755)		(30)	(1,134)	(4,628)
Income (loss) from continuing operations before income taxes	9,445		17,697	(126,145)	7,856
(Benefit) expense from income taxes	(2,180)		4,268	(44,260)	113,386
Income (loss) from continuing operations	11,625		13,429	(81,885)	(105,530)
Loss from discontinued operations, net of tax	(23)		(20)	(64)	(450)
Net income (loss)	$ 11,602		$ 13,409	$ (81,949)	$ (105,980)
Weighted average number of shares:
Basic (in shares)	30,250		32,147	30,926	32,113
Diluted (in shares)	30,489		32,726	30,926	32,113
Basic income (loss) per share:
Continuing Operations (in dollars per share)	$ 0.38		$ 0.42	$ (2.65)	$ (3.29)
Discontinued Operations (in dollars per share)	0.00		0.00	0.00	(0.01)
Total (in dollars per share)	0.38		0.42	(2.65)	(3.30)
Diluted income (loss) per share:
Continuing operations (in dollars per share)	0.38		0.41	(2.65)	(3.29)
Discontinued operations (in dollars per share)	0.00		0.00	0.00	(0.01)
Total (in dollars per share)	$ 0.38		$ 0.41	$ (2.65)	$ (3.30)

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Sep. 30, 2017		33,516
Beginning balance at Sep. 30, 2017	$ 682,440	$ 34	$ 873,063	$ (190,657)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss and comprehensive loss	(105,980)			(105,980)
Amortization of nonvested stock awards	7,692		7,692
Exercises of stock options (in shares)		8
Exercises of stock options	62		62
Shares issued under employee stock plans, net (in shares)		443
Forfeiture of restricted stock (in shares)		(210)
Common stock redeemed (in shares)		(79)
Common stock redeemed for tax liability	(1,565)		(1,565)
Other activity	18		18
Ending balance (in shares) at Jun. 30, 2018		33,678
Ending balance at Jun. 30, 2018	582,667	$ 34	879,270	(296,637)
Beginning balance (in shares) at Mar. 31, 2018		33,628
Beginning balance at Mar. 31, 2018	566,966	$ 34	876,978	(310,046)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss and comprehensive loss	13,409			13,409
Amortization of nonvested stock awards	2,484		2,484
Exercises of stock options (in shares)		6
Exercises of stock options	49		49
Shares issued under employee stock plans, net (in shares)		66
Forfeiture of restricted stock (in shares)		(6)
Common stock redeemed (in shares)		(16)
Common stock redeemed for tax liability	(241)		(241)
Ending balance (in shares) at Jun. 30, 2018		33,678
Ending balance at Jun. 30, 2018	582,667	$ 34	879,270	(296,637)
Beginning balance (in shares) at Sep. 30, 2018		33,522
Beginning balance at Sep. 30, 2018	644,027	$ 34	880,025	(236,032)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss and comprehensive loss	(81,949)			(81,949)
Amortization of nonvested stock awards	7,993		7,993
Exercises of stock options (in shares)		27
Exercises of stock options	278		278
Shares issued under employee stock plans, net (in shares)		914
Forfeiture of restricted stock (in shares)		(36)
Common stock redeemed (in shares)		(179)
Common stock redeemed for tax liability	(1,889)		(1,889)
Share repurchases (in shares)		(3,200)
Share repurchases	(34,624)	$ (3)	(34,621)
Ending balance (in shares) at Jun. 30, 2019		31,048
Ending balance at Jun. 30, 2019	533,836	$ 31	851,786	(317,981)
Beginning balance (in shares) at Mar. 31, 2019		32,044
Beginning balance at Mar. 31, 2019	529,158	$ 32	858,709	(329,583)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss and comprehensive loss	11,602			11,602
Amortization of nonvested stock awards	3,699		3,699
Shares issued under employee stock plans, net (in shares)		4
Forfeiture of restricted stock (in shares)		(6)
Common stock redeemed (in shares)		0
Common stock redeemed for tax liability	(3)		(3)
Share repurchases (in shares)		(994)
Share repurchases	(10,620)	$ (1)	(10,619)
Ending balance (in shares) at Jun. 30, 2019		31,048
Ending balance at Jun. 30, 2019	$ 533,836	$ 31	$ 851,786	$ (317,981)

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (81,949)	$ (105,980)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	8,912	9,229
Stock-based compensation expense	7,993	7,692
Inventory impairments and abandonments	148,618	618
Deferred and other income tax (benefit) expense	(44,758)	112,752
Gain on sale of fixed assets	(142)	(207)
Change in allowance for doubtful accounts	(20)	62
Equity in income of unconsolidated entities	(315)	(329)
Cash distributions of income from unconsolidated entities	409	331
Non-cash (gain) loss on extinguishment of debt	(574)	3,173
Changes in operating assets and liabilities:
Decrease in accounts receivable	4,380	8,256
(Increase) in income tax receivable	0	(31)
(Increase) in inventory	(156,472)	(222,304)
(Increase) in other assets	(776)	(3,469)
Increase in trade accounts payable	26,009	39,651
(Decrease) increase in other liabilities	(5,520)	17,080
Net cash used in operating activities	(94,205)	(133,476)
Cash flows from investing activities:
Capital expenditures	(16,365)	(13,894)
Proceeds from sale of fixed assets	162	226
Acquisition, net of cash acquired	(4,088)	0
Investments in unconsolidated entities	0	(421)
Return of capital from unconsolidated entities	0	176
Net cash used in investing activities	(20,291)	(13,913)
Cash flows from financing activities:
Repayment of debt	(22,333)	(401,509)
Proceeds from issuance of new debt	0	400,000
Repayment of borrowings from credit facility	(235,000)	(75,000)
Borrowings from credit facility	340,000	75,000
Debt issuance costs	(400)	(5,743)
Repurchase of common stock	(34,624)	0
Tax payments for stock-based compensation awards	(1,889)	(1,565)
Stock option exercises	278	62
Net cash provided by (used in) financing activities	46,032	(8,755)
Decrease in cash, cash equivalents, and restricted cash	(68,464)	(156,144)
Cash, cash equivalents, and restricted cash at beginning of period	153,248	304,609
Cash, cash equivalents, and restricted cash at end of period	$ 84,784	$ 148,465

Description of Business	9 Months Ended
Description of Business	Jun. 30, 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, 2018 (2018 Annual Report).

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 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 Annual Report on Form 10-K for the fiscal year ended September 30, 2018. 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 and nine months ended June 30, 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 16 for a further discussion of our discontinued operations).

Our fiscal year 2019 began on October 1, 2018 and ends on September 30, 2019. Our fiscal year 2018 began on October 1, 2017 and ended on September 30, 2018.

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.

Business Combinations

On July 13, 2018, the Company acquired substantially all of the assets, operations, and certain assumed liabilities of Venture Homes, a leading private homebuilder in the Atlanta market, for a purchase price of $61.3 million, net of cash acquired. The acquired assets consisted of more than 1,100 total owned or controlled lots within 27 single-family communities in the greater Atlanta metropolitan area. The acquired lots included a backlog of 48 homes and 6 model homes. The acquired assets and liabilities were recorded at their estimated fair values and resulted in inventory of $55.2 million and goodwill of $11.4 million, and other assets of $0.4 million as well as accounts payable of $5.5 million and other liabilities of $0.2 million.

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 has repurchased common stock during fiscal 2019 through open market transactions, 10b5-1 plans, and accelerated share repurchase (ASR) agreements. Under an ASR agreement, the Company pays a specified amount to a third party financial institution and receives an initial delivery of shares of common stock. This initial delivery of shares represents the minimum number of shares the Company expects to receive under the agreement. Upon settlement of the ASR agreement, the financial institution delivers additional shares, with the final number of shares delivered determined with reference to the volume weighted average price per share of our common stock over the term of the agreement, less a negotiated discount. The transactions are accounted for as equity transactions with shares received reflected as an immediate reduction in the weighted average common shares calculation for basic and diluted earnings per share.

The following table presents information regarding ASR agreements entered into during fiscal 2019 (in millions, except per share data).



Agreement Date	Settlement Date	Agreement Amount		Initial Shares Delivered	Additional Shares Delivered	Total Shares Delivered	Average Price Per Share
November 2018	December 2018	$	16.5	1.3	0.3	1.6	$	10.62
May 2019	July 2019	10.0		0.9	0.1	1.0	9.87

In addition to shares repurchased under ASR agreements, the Company repurchased 0.1 million shares of common stock through open market transactions for $0.6 million at an average price per share of $9.54 during the three months ended June 30, 2019, bringing total share repurchases through open market transactions and 10b5-1 plans during fiscal 2019 to 0.7 million shares for $8.1 million at an average price per share of $11.35.

All shares have been retired upon repurchase during fiscal 2019. The aggregate reduction to stockholders’ equity related to share repurchases during the three and nine months ending June 30, 2019 was $10.6 million and $34.6 million, respectively. As of June 30, 2019, the remaining availability of the share repurchase program was $15.4 million. The Company made no share repurchases in the prior year.

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 2018 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				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Homebuilding revenue	$	482,316	$	506,964	$	1,304,243	$	1,315,833
Land sales and other revenue	422		4,557		1,795		23,355
Total revenue ^(a)	$	482,738	$	511,521	$	1,306,038	$	1,339,188

^(a) Please see Note 14 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 $19.7 million and $14.9 million as of June 30, 2019 and September 30, 2018, respectively. Of the customer liabilities outstanding as of September 30, 2018, $1.0 million and $13.4 million were recognized in revenue during the three and nine months ended June 30, 2019, respectively, upon closing of the related homes.

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

Revenue from Contracts with Customers. On October 1, 2018, we adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, collectively referred to as ASC 606. ASC 606 provides a new model for accounting for revenue arising from contracts with customers that supersedes most revenue recognition guidance. Under the new guidance, entities are required to recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled upon transferring control of goods or services to a customer. As part of our adoption of ASC 606, we applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Further, results for reporting periods beginning on or after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the previous accounting standards. The adoption of ASC 606 had no impact on opening retained earnings and did not materially affect the amount or timing of our revenue.

Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires lessees to record most leases on their balance sheets. The timing and classification of lease-related expenses for lessees will depend on whether a lease is determined to be an operating lease or a finance lease using updated criteria within ASU 2016-02. Operating leases will result in straight-line expense (similar to current operating leases), while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Regardless of lease type, the lessee will recognize a right-of-use asset, representing the right to use the identified asset during the lease term, and a related lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the current lease accounting rules. ASU 2016-02 also requires significantly enhanced disclosures around an entity's leases and the related accounting. The guidance within ASU 2016-02 will be effective for the Company's fiscal year beginning October 1, 2019, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements (ASU 2018-11), which provides an optional transition method to apply the requirements of the new lease standard through a cumulative-effect adjustment in the period of adoption. The Company expects to adopt the standard on October 1, 2019 using the optional transition method. We continue to evaluate the impact of ASU 2016-02 on our consolidated financial statements. However, a large majority of our leases are for office space, which we have determined will be treated as operating leases under ASU 2016-02. As such, we anticipate recording a right-of-use asset and related lease liability for these leases. We do not anticipate any significant change to our statements of operations or cash flows as a result of adopting ASU 2016-02.

Intangibles - Goodwill and Other. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 from the goodwill impairment test. This change will allow an entity to avoid calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination, thus reducing the cost and complexity of evaluating goodwill for impairment. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We do not believe the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements and disclosures.

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, and interim periods within those fiscal years, beginning after December 15, 2019. 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

9 Months Ended

Jun. 30, 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:



	Nine Months Ended
	June 30,
in thousands	2019		2018
Supplemental disclosure of cash activity:
Interest payments	$	64,648	$	60,025
Income tax payments	568		495
Tax refunds received	12		39
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	68,491	$	136,298
Restricted cash	16,293		12,167
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	84,784	$	148,465

Investments in Unconsolidated Entities

9 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Unconsolidated Entities

As of June 30, 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 June 30, 2019 and September 30, 2018:



in thousands	June 30, 2019		September 30, 2018
Investment in unconsolidated entities	$	3,941	$	4,035
Total equity of unconsolidated entities	3,553		10,113
Total outstanding borrowings of unconsolidated entities	13,229		12,266

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



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Equity in income of unconsolidated entities	$	299	$	147	$	316	$	302

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

Inventory

9 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventory

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



in thousands	June 30, 2019		September 30, 2018
Homes under construction	$	679,181	$	476,752
Development projects in progress	753,048		907,793
Land held for future development	28,531		83,173
Land held for sale	13,352		7,781
Capitalized interest	148,825		144,645
Model homes	79,787		72,140
Total owned inventory	$	1,702,724	$	1,692,284

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 185 (with a cost of $62.6 million) and 240 (with a cost of $84.8 million) substantially completed homes that were not subject to a sales contract (spec homes) as of June 30, 2019 and September 30, 2018, respectively.

Development projects in progress consist principally of land and land improvement costs. 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. 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 June 30, 2019 and September 30, 2018:



in thousands	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
June 30, 2019
West Segment	$	773,121	$	3,483	$	5,750	$	782,354
East Segment	297,575		14,077		4,511		316,163
Southeast Segment	379,361		10,971		3,091		393,423
Corporate and unallocated ^(b)	210,784		—		—		210,784
Total	$	1,660,841	$	28,531	$	13,352	$	1,702,724
September 30, 2018
West Segment	$	763,453	$	58,125	$	—	$	821,578
East Segment	280,761		14,077		4,580		299,418
Southeast Segment	358,126		10,971		3,177		372,274
Corporate and unallocated ^(b)	198,990		—		24		199,014
Total	$	1,601,330	$	83,173	$	7,781	$	1,692,284

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

^(b)Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Land held for sale amount includes parcels held by our discontinued operations.

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 and in our forecast that are below a minimum threshold of profitability. Our watch list also includes communities with recent closings that have gross margins less than a specific 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 substantial additional financial and operational analysis and 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.

For the quarter ended June 30, 2019, there were five communities on our quarterly watch list; three in the West segment, one in the East, and one in the Southeast segment. However, none of these communities required further analysis to be performed after considering certain quantitative and qualitative factors.

For the quarter ended June 30, 2018, there were four communities on our quarterly watch list; two in the West segment and two in the Southeast segment. However, none of these communities required further analysis to be performed after considering certain quantitative and qualitative factors.

The table below presents, by reportable segment, details of the impairment charges taken on projects in progress for the nine months ended June 30, 2019. No impairments on projects in progress were recognized during the three months ended June 30, 2019 or the three and nine months ended June 30, 2018.



	Results of Impairment Analyses
$ in thousands	Nine Months Ended
Segment	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at time of Impairment
June 30, 2019
West	9	839	$	92,912	$	69,449
Southeast	1	15	858		1,367
Corporate and unallocated ^(a)	—	—	16,260		14,166
Total	10	854	$	110,030	$	84,982

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

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.

The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented:



	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands	2019		2018		2019		2018
Projects in Progress:
West	$	—	$	—	$	92,912	$	—
Southeast	—		—		858		—
Corporate and unallocated ^(a)	—		—		16,260		—
Total impairment charges on projects in progress	$	—	$	—	$	110,030	$	—
Land Held for Sale:
West ^(b)	$	—	$	—	$	37,963	$	—
East	—		168		—		168
Corporate and unallocated ^(a)	—		—		625		—
Total impairment charges on land held for sale	$	—	$	168	$	38,588	$	168
Discontinued Operations:
Land Held for Sale	$	—	$	—	$	—	$	450
Total impairment and abandonment charges	$	—	$	168	$	148,618	$	618

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

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

Valuation assumptions for communities tested for impairment are specific to each community. For projects in progress impaired during the periods presented, we determined the fair value of each community by discounting its estimated future cash flows at a rate commensurate with the risks inherent in the project. The discount rate used depends on the development stage and expected duration of the project, local market conditions, and other specific factors. The estimated future cash flows for each community were determined based on the expected pace of closings and average sales price of the community less expected costs for land acquisition and land development, direct construction, overhead, and interest. We determined the fair value of land held for sale assets impaired during the periods presented based on sales contracts, letters of intent, and recent comparable land sale transactions, as applicable. The assumptions used in the determination of fair value of both projects in progress and land held for sale communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. Should the estimates or expectations used in determining estimated fair values deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to these assets, and such amounts could be material.

The table below presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities impaired during the nine months ended June 30, 2019. No impairments were recognized during the three months ended June 30, 2019.



$ in thousands	Nine Months Ended
Unobservable Inputs	June 30, 2019
Average selling price	$350 to $615
Closings per community per month	1 - 4
Discount rate	14.7% - 16.8%

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 June 30, 2019 and September 30, 2018:



in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of June 30, 2019
Unconsolidated lot option agreements	$	75,740	$	389,772
As of September 30, 2018
Unconsolidated lot option agreements	$	72,191	$	383,150

Interest

9 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Interest

Interest capitalized during the three and nine months ended June 30, 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 June 30,						Nine Months Ended June 30,
in thousands	2019			2018			2019			2018
Capitalized interest in inventory, beginning of period	$	144,756		$	149,034		$	144,645		$	139,203
Interest incurred	26,782			25,803			77,506			76,850
Capitalized interest impaired	—			—			(13,907		)	—
Interest expense not qualified for capitalization and included as other expense ^(a)	(961		)	(205		)	(1,800		)	(5,290		)
Capitalized interest amortized to home construction and land sales expenses ^(b)	(21,752		)	(22,450		)	(57,619		)	(58,581		)
Capitalized interest in inventory, end of period	$	148,825		$	152,182		$	148,825		$	152,182

^(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

9 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Borrowings

The Company's debt, net of premiums, discounts, and unamortized debt issuance costs consisted of the following as of June 30, 2019 and September 30, 2018:



in thousands	Maturity Date	June 30, 2019			September 30, 2018
8 3/4% Senior Notes	March 2022	$	500,000		$	500,000
7 1/4% Senior Notes	February 2023	23,603			24,834
6 3/4% Senior Notes	March 2025	229,555			250,000
5 7/8% Senior Notes	October 2027	400,000			400,000
Unamortized debt premium, net		2,061			2,640
Unamortized debt issuance costs		(12,027		)	(14,336		)
Total Senior Notes, net		1,143,192			1,163,138
Junior Subordinated Notes (net of unamortized accretion of $35,220 and $36,770, respectively)	July 2036	65,553			64,003
Revolving Credit Facility	February 2021	105,000			—
Other Secured Notes payable	Various Dates	2,622			4,113
Total debt, net		$	1,316,367		$	1,231,254

Secured Revolving Credit Facility

The Secured Revolving Credit Facility (the Facility) provides working capital and letter of credit capacity. In October 2018, the Company executed a Fifth Amendment to the Facility, extending the termination date of the Facility from February 15, 2020 to February 15, 2021 and increasing the maximum aggregate amount of commitments under the Facility, including borrowings and letters of credit, from $200.0 million to $210.0 million. The aggregate collateral ratio (as defined by the underlying Credit Agreement) remained at 4.00 to 1.00 and the after-acquired exclusionary condition (also as defined by the underlying Credit Agreement) remained at $840.0 million. The Facility continues to be with three lenders. For additional discussion of the Facility, refer to Note 8 to the consolidated financial statements within our 2018 Annual Report.

As of June 30, 2019, $105.0 million of borrowings and no letters of credit were outstanding under the Facility, resulting in a remaining capacity of $105.0 million. As of September 30, 2018, no borrowings and no letters of credit were outstanding under the Facility, resulting in a remaining capacity of $200.0 million. The Facility requires compliance with certain covenants, including negative covenants and financial maintenance covenants. As of June 30, 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 June 30, 2019 and September 30, 2018, the Company had letters of credit outstanding under these additional facilities of $14.5 million and $10.4 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 June 30, 2019, the total stated amount of performance letters of credit issued under the reimbursement agreement was $34.7 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 15 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 June 30, 2019.

During the three months ended June 30, 2019, the Company redeemed $16.6 million of the 6.75% unsecured Senior Notes due March 2025 using cash on hand, resulting in a gain on extinguishment of debt of $0.4 million, which was net of a $0.2 million non-cash write-off of debt issuance costs.

During the nine months ended June 30, 2019, the Company redeemed $1.2 million and $20.4 million of the 7.25% unsecured Senior Notes due February 2023 and 6.75% unsecured Senior Notes due March 2025, respectively, using cash on hand, resulting in a gain on extinguishment of debt of $0.6 million, which was net of a $0.3 million non-cash write-off of debt issuance costs.

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
8 3/4% Senior Notes	September 2016	March 2022	Callable at any time prior to March 15, 2019, 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, 2019, callable at a redemption price equal to 104.375% of the principal amount; on or after March 15, 2020, callable at a redemption price equal to 102.188% of the principal amount; on or after March 15, 2021, 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	February 2013	February 2023	Callable at any time on or after February 1, 2018, callable at a redemption price equal to 103.625% of the principal amount; on or after February 1, 2019, callable at a redemption price equal to 102.417% of the principal amount; on or after February 1, 2020, callable at a redemption price equal to 101.208% of the principal amount; on or after February 1, 2021, callable at 100.000% of the principal amount plus, in each case, accrued and unpaid interest
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	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

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 5.03% as of June 30, 2019 (because the rate on the portion of the Junior Subordinated Notes that was modified, as discussed below, is subject to a floor). 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 June 30, 2019, the unamortized accretion was $35.2 million and will be amortized over the remaining life of the notes. As of June 30, 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 June 30, 2019 and September 30, 2018, the Company had outstanding notes payable of $2.6 million and $4.1 million, respectively, primarily related to land acquisitions. These secured notes payable have varying expiration dates in 2019, a weighted-average fixed interest rate of 1.88% as of June 30, 2019, and are secured by the real estate to which they relate.

The agreements governing these other secured notes payable contain various affirmative and negative covenants. There can be no assurance that the Company will be able to obtain any future waivers or amendments that may become necessary without significant additional cost or at all. In each instance, however, a covenant default can be cured by repayment of the indebtedness.

Contingencies

9 Months Ended

Jun. 30, 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						Nine Months Ended
	June 30,						June 30,
in thousands	2019			2018			2019			2018
Balance at beginning of period	$	12,585		$	14,583		$	15,331		$	18,091
Accruals for warranties issued ^(a)	2,650			3,254			7,504			10,758
Changes in liability related to warranties existing in prior periods	157			711			(1,811		)	(2,574		)
Payments made	(3,155		)	(3,258		)	(8,787		)	(10,985		)
Balance at end of period	$	12,237		$	15,290		$	12,237		$	15,290

^(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.

Strougo v. Beazer Homes USA, Inc., et al. 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, an alleged stockholder filed a putative class action lawsuit against Beazer Homes USA, Inc., and certain of our current officers in the U.S. District Court for the Southern District of New York. The proposed class consists of all persons and entities that acquired our securities between August 1, 2014 and May 2, 2019. The complaint alleges violations of the federal securities laws, including, among other things, that we made materially false and/or misleading statements and failed to disclose material adverse facts about our business, operations, and prospects during the proposed Class Period. The plaintiff seeks compensatory damages and attorneys’ fees and costs but does not specify the amount. We believe the allegations are without merit and intend to vigorously defend against the claims. However, the outcome of this legal proceeding cannot be predicted with certainty.

Gusinsky Revocable Trust v. Beazer Homes USA, Inc., et al. On June 25, 2019 an alleged stockholder filed a putative class action lawsuit against Beazer Homes USA, Inc., and certain of our current officers and our Board of Directors in the U.S. District Court for the Northern District of Georgia also relating to the above referenced inventory impairment charges. The proposed class consists of all persons and entities that acquired our securities between August 1, 2014 and June 25, 2019. The complaint alleges violations of the federal securities laws, including, among other things, that we made materially false and/or misleading statements and failed to disclose material adverse facts about our business, operations, and prospects during the proposed Class Period, as well as a breach of fiduciary duties by our Board of Directors. The plaintiff seeks compensatory damages and attorneys’ fees and costs but does not specify the amount. We believe the allegations are without merit and intend to vigorously defend against the claims. However, the outcome of this legal proceeding cannot be predicted with certainty.

Based on the limited nature of the plaintiffs' allegations, the early stage of the proceedings, the lack of discovery and because significant legal issues have yet to be raised and decided by the courts, we have determined that, at present, the amount of any possible loss or range of possible loss in connection with either of the above lawsuits 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 $3.2 million and $3.7 million in other liabilities on our condensed consolidated balance sheets related to litigation and other matters, excluding warranty, as of June 30, 2019 and September 30, 2018, respectively.

We had outstanding letters of credit and performance bonds of approximately $49.2 million and $286.5 million, respectively, as of June 30, 2019, related principally to our obligations to local governments to construct roads and other improvements in various developments.

Fair Value Measurements

9 Months Ended

Jun. 30, 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 June 30, 2019, we recognized no impairments on projects in progress or land held for sale compared to no impairments on projects in progress and $0.2 million of impairments on land held for sale during the three months ended June 30, 2018.

During the nine months ended June 30, 2019, we recognized impairments of $110.0 million on projects in progress and $38.6 million on land held for sale compared to no impairment on projects in progress and $0.6 million of impairments on land held for sale during the nine months ended June 30, 2018. See Note 5 for additional information regarding inventory impairments during the periods presented.

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 June 30, 2019
Deferred compensation plan assets ^(a)	$	—	$	1,877	$	—	$	1,877
Development projects in progress ^(b)	—		—		84,982		84,982
Land held for sale ^(b)	—		—		5,207		5,207
As of September 30, 2018
Deferred compensation plan assets ^(a)	$	—	$	1,578	$	—	$	1,578
Development projects in progress ^(b)	—		—		1,312		1,312
Land held for sale ^(b)	—		—		1,724		1,724
Unconsolidated entity investments ^(b)	—		—		80		80

^(a)Measured at fair value on a recurring basis.

^(b)Measured at fair value on a non-recurring basis, including the capitalized interest and indirects related to the asset.

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 June 30, 2019 and September 30, 2018:



	As of June 30, 2019				As of September 30, 2018
in thousands	Carrying Amount ^(a)		Fair Value		Carrying Amount ^(a)		Fair Value
Senior Notes ^(b)	$	1,143,192	$	1,113,286	$	1,163,138	$	1,096,214
Junior Subordinated Notes	65,553		65,553		64,003		64,003
Total	$	1,208,745	$	1,178,839	$	1,227,141	$	1,160,217

^(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

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	9 Months Ended
Income Taxes	Jun. 30, 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 $2.2 million and $44.3 million for the three and nine months ended June 30, 2019, respectively, compared to an income tax expense of $4.3 million and $113.2 million for the three and nine months ended June 30, 2018, respectively. The current fiscal year income tax benefit was substantially driven by (1) the loss from continuing operations primarily due to $148.6 million of impairments recognized during fiscal 2019 on our land inventory assets, of which $147.6 million was recorded in the second quarter and (2) the completion of work necessary to claim an additional $9.8 million in tax credits related to prior fiscal years, partially offset by discrete impacts related to stock-based compensation. The tax expense for the nine months ended June 30, 2018 was primarily driven by income from continuing operations, the remeasurement of the Company's deferred tax assets as a result of the enactment of the Tax Cuts and Jobs Act, and several discrete tax items, including stock-based compensation. These items were partially offset by the completion of work necessary to claim an additional $2.8 million in tax credits related to prior fiscal years. Deferred Tax Assets and Liabilities As of June 30, 2019, the net deferred tax asset is comprised of various tax attributes that include $9.6 million of minimum tax credit carryforwards. Beginning with the fiscal 2019 tax return, the Company will be able to make 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 June 30, 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, including impairments in the current fiscal year, 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, 2018, 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 2018 Annual Report.

Stock-based Compensation

9 Months Ended

Jun. 30, 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. Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three and nine months ended June 30, 2019 and June 30, 2018, respectively.



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Stock-based compensation expense	$	3,699	$	2,484	$	7,993	$	7,692

Stock Options

Following is a summary of stock option activity for the nine months ended June 30, 2019:



	Nine Months Ended
	June 30, 2019
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	533,052		$	14.26
Granted	30,782		10.23
Exercised	(26,650	)	10.44
Cancelled	(7,944	)	10.63
Outstanding at end of period	529,240		$	14.27
Exercisable at end of period	475,887		$	14.35
Vested or expected to vest in the future	526,383		$	14.30

As of June 30, 2019 and September 30, 2018, total unrecognized compensation cost related to unvested stock options was $0.2 million and $0.2 million, respectively. The remaining cost as of June 30, 2019 is expected to be recognized over a weighted-average period of 1.3 years.

Restricted Stock Awards

During the nine months ended June 30, 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 nine months ended June 30, 2019:



	Nine Months Ended June 30,
	Performance-Based Restricted Shares		Time-Based Restricted Shares		Total Restricted Shares
Beginning of period	644,785		431,783		1,076,568
Granted ^(a)	467,819		446,089		913,908
Vested ^(a)	(309,843	)	(205,795	)	(515,638	)
Forfeited	(7,020	)	(29,498	)	(36,518	)
End of period	795,741		642,579		1,438,320

^(a) Grant and vesting activity during the nine months ended June 30, 2019 include 86,050 shares that were issued above target based on the performance level achieved under performance-based restricted stock vesting in the current period.

As of June 30, 2019 and September 30, 2018, total unrecognized compensation cost related to unvested restricted stock awards was $11.3 million and $8.8 million, respectively. The remaining cost as of June 30, 2019 is expected to be recognized over a weighted average period of 1.8 years.

Earnings Per Share

9 Months Ended

Jun. 30, 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 June 30,						Nine Months Ended June 30,
in thousands, except per share data	2019			2018			2019			2018
Numerator:
Income (loss) from continuing operations	$	11,625		$	13,429		$	(81,885	)	$	(105,530	)
Loss from discontinued operations, net of tax	(23		)	(20		)	(64		)	(450		)
Net income (loss)	$	11,602		$	13,409		$	(81,949	)	$	(105,980	)

Denominator:
Basic weighted-average shares	30,250			32,147			30,926			32,113
Dilutive effect of restricted stock awards	225			500			—			—
Dilutive effect of stock options	14			79			—			—
Diluted weighted-average shares ^(a)	30,489			32,726			30,926			32,113

Basic income (loss) per share:
Continuing operations	$	0.38		$	0.42		$	(2.65	)	$	(3.29	)
Discontinued operations	—			—			—			(0.01		)
Total	$	0.38		$	0.42		$	(2.65	)	$	(3.30	)

Diluted income (loss) per share:
Continuing operations	$	0.38		$	0.41		$	(2.65	)	$	(3.29	)
Discontinued operations	—			—			—			(0.01		)
Total	$	0.38		$	0.41		$	(2.65	)	$	(3.30	)

^(a) The following potentially dilutive shares were excluded from the calculation of diluted income (loss) per share as a result of their anti-dilutive effect. Due to the reported net loss for the nine months ended June 30, 2019 and June 30, 2018, all common stock equivalents were excluded from the computation of diluted loss per share for those periods because inclusion would have resulted in anti-dilution.



	Three Months Ended June 30,		Nine Months Ended June 30,
in thousands	2019	2018	2019	2018
Stock options	406	204	529	532
Time-based restricted stock	94	170	643	850
Performance-based restricted stock	—	—	796	646

Segment Information

9 Months Ended

Jun. 30, 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 (loss). Operating income (loss) 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 2018 Annual Report.

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



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Revenue
West	$	238,723	$	242,308	$	658,097	$	654,789
East	118,356		132,415		301,168		328,680
Southeast	125,659		136,798		346,773		355,719
Total revenue	$	482,738	$	511,521	$	1,306,038	$	1,339,188



	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2019			2018			2019			2018
Operating income (loss) ^(a)
West	$	29,268		$	31,180		$	(53,489	)	$	84,005
East	11,247			13,642			23,571			29,964
Southeast	8,043			11,557			16,747			26,364
Segment total	48,558			56,379			(13,171		)	140,333
Corporate and unallocated ^(b)	(39,015		)	(38,799		)	(112,730		)	(102,247		)
Total operating income (loss)	$	9,543		$	17,580		$	(125,901	)	$	38,086



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Depreciation and amortization
West	$	1,415	$	1,983	$	3,956	$	4,936
East	658		700		1,743		1,690
Southeast	776		746		2,117		1,867
Segment total	2,849		3,429		7,816		8,493
Corporate and unallocated ^(b)	393		227		1,096		736
Total depreciation and amortization	$	3,242	$	3,656	$	8,912	$	9,229

^(a) Operating income (loss) 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 indirects; 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:



	Nine Months Ended
	June 30,
in thousands	2019		2018
Capital Expenditures
West	$	8,172	$	6,478
East	2,122		1,870
Southeast	2,564		2,215
Corporate and unallocated	3,507		3,331
Total capital expenditures	$	16,365	$	13,894

The following table presents assets by segment as of June 30, 2019 and September 30, 2018:



in thousands	June 30, 2019		September 30, 2018
Assets
West	$	800,225	$	835,230
East	327,889		335,474
Southeast	416,525		414,685
Corporate and unallocated ^(a)	575,640		542,713
Total assets	$	2,120,279	$	2,128,102

^(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirects, and other items that are not allocated to the segments.

Supplemental Guarantor Information

9 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Supplemental Guarantor information

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

June 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	$	61,938	$	6,552	$	1	$	—		$	68,491
Restricted cash	14,847		1,446		—		—			16,293
Accounts receivable (net of allowance of $358)	—		20,283		4		—			20,287
Owned inventory	—		1,702,724		—		—			1,702,724
Investments in unconsolidated entities	773		3,168		—		—			3,941
Deferred tax assets, net	258,713		—		—		—			258,713
Property and equipment, net	—		28,276		—		—			28,276
Investments in subsidiaries	636,790		—		—		(636,790		)	—
Intercompany	899,170		—		1,690		(900,860		)	—
Goodwill	—		11,376		—		—			11,376
Other assets	758		9,417		3		—			10,178
Total assets	$	1,872,989	$	1,783,242	$	1,698	$	(1,537,650	)	$	2,120,279
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	152,441	$	—	$	—		$	152,441
Other liabilities	23,718		93,899		18		—			117,635
Intercompany	1,690		899,170		—		(900,860		)	—
Total debt (net of premium and debt issuance costs)	1,313,745		2,622		—		—			1,316,367
Total liabilities	1,339,153		1,148,132		18		(900,860		)	1,586,443
Stockholders’ equity	533,836		635,110		1,680		(636,790		)	533,836
Total liabilities and stockholders’ equity	$	1,872,989	$	1,783,242	$	1,698	$	(1,537,650	)	$	2,120,279

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

September 30, 2018

(Unaudited)



in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	93,875	$	45,355	$	575	$	—		$	139,805
Restricted cash	10,921		2,522		—		—			13,443
Accounts receivable (net of allowance of $378)	—		24,647		—		—			24,647
Owned inventory	—		1,692,284		—		—			1,692,284
Investments in unconsolidated entities	773		3,262		—		—			4,035
Deferred tax assets, net	213,955		—		—		—			213,955
Property and equipment, net	—		20,843		—		—			20,843
Investments in subsidiaries	645,086		—		—		(645,086		)	—
Intercompany	922,525		—		2,304		(924,829		)	—
Goodwill	—		9,751		—		—			9,751
Other assets	694		8,626		19		—			9,339
Total assets	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	126,432	$	—	$	—		$	126,432
Other liabilities	14,357		111,906		126		—			126,389
Intercompany	2,304		922,525		—		(924,829		)	—
Total debt (net of premium and debt issuance costs)	1,227,141		4,113		—		—			1,231,254
Total liabilities	1,243,802		1,164,976		126		(924,829		)	1,484,075
Stockholders’ equity	644,027		642,314		2,772		(645,086		)	644,027
Total liabilities and stockholders’ equity	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102

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 June 30, 2019
Total revenue	$	—		$	482,738		$	—		$	—		$	482,738
Home construction and land sales expenses	21,752			389,222			—			—			410,974
Gross (loss) profit	(21,752		)	93,516			—			—			71,764
Commissions	—			18,230			—			—			18,230
General and administrative expenses	—			40,749			—			—			40,749
Depreciation and amortization	—			3,242			—			—			3,242
Operating (loss) income	(21,752		)	31,295			—			—			9,543
Equity in income of unconsolidated entities	—			299			—			—			299
Gain on extinguishment of debt	358			—			—			—			358
Other (expense) income, net	(961		)	206			—			—			(755		)
(Loss) income from continuing operations before income taxes	(22,355		)	31,800			—			—			9,445
(Benefit) expense from income taxes	(5,745		)	3,565			—			—			(2,180		)
Equity in income of subsidiaries	28,235			—			—			(28,235		)	—
Income from continuing operations	11,625			28,235			—			(28,235		)	11,625
Loss from discontinued operations, net of tax	—			(18		)	(5		)	—			(23		)
Equity in loss of subsidiaries from discontinued operations	(23		)	—			—			23			—
Net income	$	11,602		$	28,217		$	(5	)	$	(28,212	)	$	11,602

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended June 30, 2018
Total revenue	$	—		$	511,521		$	23		$	(23	)	$	511,521
Home construction and land sales expenses	22,441			405,691			—			(23		)	428,109
Inventory impairments and abandonments	—			168			—			—			168
Gross (loss) profit	(22,441		)	105,662			23			—			83,244
Commissions	—			19,535			—			—			19,535
General and administrative expenses	—			42,445			28			—			42,473
Depreciation and amortization	—			3,656			—			—			3,656
Operating (loss) income	(22,441		)	40,026			(5		)	—			17,580
Equity in income of unconsolidated entities	—			147			—			—			147
Other (expense) income, net	(204		)	187			(13		)	—			(30		)
(Loss) income from continuing operations before income taxes	(22,645		)	40,360			(18		)	—			17,697
(Benefit) expense from income taxes	(6,069		)	10,341			(4		)	—			4,268
Equity in income of subsidiaries	30,005			—			—			(30,005		)	—
Income (loss) from continuing operations	13,429			30,019			(14		)	(30,005		)	13,429
Loss from discontinued operations, net of tax	—			(11		)	(9		)	—			(20		)
Equity in loss of subsidiaries from discontinued operations	(20		)	—			—			20			—
Net income (loss)	$	13,409		$	30,008		$	(23	)	$	(29,985	)	$	13,409



in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2019
Total revenue	$	—		$	1,306,038		$	115		$	(115	)	$	1,306,038
Home construction and land sales expenses	57,619			1,050,177			—			(115		)	1,107,681
Inventory impairments and abandonments	13,908			134,710			—			—			148,618
Gross (loss) profit	(71,527		)	121,151			115			—			49,739
Commissions	—			49,965			—			—			49,965
General and administrative expenses	—			116,767			(4		)	—			116,763
Depreciation and amortization	—			8,912			—			—			8,912
Operating (loss) income	(71,527		)	(54,493		)	119			—			(125,901		)
Equity in income of unconsolidated entities	—			316			—			—			316
Gain on extinguishment of debt	574			—			—			—			574
Other (expense) income, net	(1,800		)	670			(4		)	—			(1,134		)
(Loss) income from continuing operations before income taxes	(72,753		)	(53,507		)	115			—			(126,145		)
Expense (benefit) from income taxes	4,496			(48,785		)	29			—			(44,260		)
Equity in loss of subsidiaries	(4,636		)	—			—			4,636			—
(Loss) income from continuing operations	(81,885		)	(4,722		)	86			4,636			(81,885		)
Loss from discontinued operations, net of tax	—			(49		)	(15		)	—			(64		)
Equity in loss of subsidiaries from discontinued operations	(64		)	—			—			64			—
Net (loss) income	$	(81,949	)	$	(4,771	)	$	71		$	4,700		$	(81,949	)

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2018
Total revenue	$	—		$	1,339,188		$	60		$	(60	)	$	1,339,188
Home construction and land sales expenses	58,564			1,061,366			—			(60		)	1,119,870
Inventory impairments and abandonments	—			168			—			—			168
Gross (loss) profit	(58,564		)	277,654			60			—			219,150
Commissions	—			51,225			—			—			51,225
General and administrative expenses	—			120,513			97			—			120,610
Depreciation and amortization	—			9,229			—			—			9,229
Operating (loss) income	(58,564		)	96,687			(37		)	—			38,086
Equity in income of unconsolidated entities	—			302			—			—			302
Loss on extinguishment of debt	(25,904		)	—			—			—			(25,904		)
Other (expense) income, net	(5,289		)	687			(26		)	—			(4,628		)
(Loss) income from continuing operations before income taxes	(89,757		)	97,676			(63		)	—			7,856
(Benefit) expense from income taxes	(23,966		)	137,370			(18		)	—			113,386
Equity in loss of subsidiaries	(39,739		)	—			—			39,739			—
Loss from continuing operations	(105,530		)	(39,694		)	(45		)	39,739			(105,530		)
Loss from discontinued operations, net of tax	—			(432		)	(18		)	—			(450		)
Equity in loss of subsidiaries and discontinued operations	(450		)	—			—			450			—
Net loss	$	(105,980	)	$	(40,126	)	$	(63	)	$	40,189		$	(105,980	)

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.
Nine Months Ended June 30, 2019
Net cash used in operating activities	$	(64,205	)	$	(29,990	)	$	(10	)	$	—		$	(94,205	)
Cash flows from investing activities:
Capital expenditures	—			(16,365		)	—			—			(16,365		)
Proceeds from sale of fixed assets	—			162			—			—			162
Cash used for business acquisition, net of cash acquired	—			(4,088		)	—			—			(4,088		)
Advances to/from subsidiaries	(11,328		)	—			(564		)	11,892			—
Net cash used in investing activities	(11,328		)	(20,291		)	(564		)	11,892			(20,291		)
Cash flows from financing activities:
Repayment of debt	(20,843		)	(1,490		)	—			—			(22,333		)
Repayment of borrowings from credit facility	(235,000		)	—			—			—			(235,000		)
Borrowings from credit facility	340,000			—			—			—			340,000
Debt issuance costs	(400		)	—			—			—			(400		)
Repurchase of common stock	(34,624		)	—			—			—			(34,624		)
Tax payments for stock-based compensation awards	(1,889		)	—			—			—			(1,889		)
Stock option exercises	278			—			—			—			278
Advances to/from subsidiaries	—			11,892			—			(11,892		)	—
Net cash provided by financing activities	47,522			10,402			—			(11,892		)	46,032
Decrease in cash, cash equivalents, and restricted cash	(28,011		)	(39,879		)	(574		)	—			(68,464		)
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	$	76,785		$	7,998		$	1		$	—		$	84,784

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2018
Net cash provided by (used in) operating activities	$	64,319		$	(197,707	)	$	(88	)	$	—		$	(133,476	)
Cash flows from investing activities:
Capital expenditures	—			(13,894		)	—			—			(13,894		)
Proceeds from sale of fixed assets	—			226			—			—			226
Investments in unconsolidated entities	—			(421		)	—			—			(421		)
Return of capital from unconsolidated entities	—			176			—			—			176
Advances to/from subsidiaries	(208,328		)	—			(6		)	208,334			—
Net cash used in investing activities	(208,328		)	(13,913		)	(6		)	208,334			(13,913		)
Cash flows from financing activities:
Repayment of debt	(401,509		)	—			—			—			(401,509		)
Proceeds from issuance of new debt	400,000			—			—			—			400,000
Borrowings from credit facility	75,000			—			—			—			75,000
Repayment of borrowings from credit facility	(75,000		)	—			—			—			(75,000		)
Debt issuance costs	(5,743		)	—			—			—			(5,743		)
Tax payments for stock-based compensation awards	(1,565		)	—			—			—			(1,565		)
Stock option exercises	62			—			—			—			62
Advances to/from subsidiaries	—			205,050			—			(205,050		)	—
Net cash (used in) provided by financing activities	(8,755		)	205,050			—			(205,050		)	(8,755		)
Decrease in cash, cash equivalents, and restricted cash	(152,764		)	(6,570		)	(94		)	3,284			(156,144		)
Cash, cash equivalents, and restricted cash at beginning of period	294,192			16,854			724			(7,161		)	304,609
Cash, cash equivalents, and restricted cash at end of period	$	141,428		$	10,284		$	630		$	(3,877	)	$	148,465

Discontinued Operations

9 Months Ended

Jun. 30, 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 June 30, 2019 or September 30, 2018. 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						Nine Months Ended
	June 30,						June 30,
in thousands	2019			2018			2019			2018
Total revenue	$	—		$	—		$	55		$	633
Home construction and land sales expenses	6			5			45			728
Inventory impairments and lot option abandonments	—			—			—			450
Gross (loss) profit	(6		)	(5		)	10			(545		)
General and administrative expenses	23			27			90			74
Operating loss	(29		)	(32		)	(80		)	(619		)
Equity in income (loss) of unconsolidated entities	—			11			(1		)	27
Other expense, net	(1		)	(6		)	(2		)	(11		)
Loss from discontinued operations before income taxes	(30		)	(27		)	(83		)	(603		)
Benefit from income taxes	(7		)	(7		)	(19		)	(153		)
Loss from discontinued operations, net of tax	$	(23	)	$	(20	)	$	(64	)	$	(450	)

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

9 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Consolidation

Our fiscal year 2019 began on October 1, 2018 and ends on September 30, 2019. Our fiscal year 2018 began on October 1, 2017 and ended on September 30, 2018.

Use of Estimates

Business Combinations

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

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).

Recent Accounting Pronouncements

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

9 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Accelerated Share Repurchases

The following table presents information regarding ASR agreements entered into during fiscal 2019 (in millions, except per share data).



Agreement Date	Settlement Date	Agreement Amount		Initial Shares Delivered	Additional Shares Delivered	Total Shares Delivered	Average Price Per Share
November 2018	December 2018	$	16.5	1.3	0.3	1.6	$	10.62
May 2019	July 2019	10.0		0.9	0.1	1.0	9.87

Disaggregation of Revenue

The following table presents our total revenue disaggregated by revenue stream:



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Homebuilding revenue	$	482,316	$	506,964	$	1,304,243	$	1,315,833
Land sales and other revenue	422		4,557		1,795		23,355
Total revenue ^(a)	$	482,738	$	511,521	$	1,306,038	$	1,339,188

^(a) Please see Note 14 for total revenue disaggregated by reportable segment.

Investments in Unconsolidated Entities (Tables)

9 Months Ended

Jun. 30, 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 June 30, 2019 and September 30, 2018:



in thousands	June 30, 2019		September 30, 2018
Investment in unconsolidated entities	$	3,941	$	4,035
Total equity of unconsolidated entities	3,553		10,113
Total outstanding borrowings of unconsolidated entities	13,229		12,266

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



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Equity in income of unconsolidated entities	$	299	$	147	$	316	$	302

Inventory (Tables)

9 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Schedule of inventory

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



in thousands	June 30, 2019		September 30, 2018
Homes under construction	$	679,181	$	476,752
Development projects in progress	753,048		907,793
Land held for future development	28,531		83,173
Land held for sale	13,352		7,781
Capitalized interest	148,825		144,645
Model homes	79,787		72,140
Total owned inventory	$	1,702,724	$	1,692,284

Schedule of total owned inventory, by segment

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



in thousands	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
June 30, 2019
West Segment	$	773,121	$	3,483	$	5,750	$	782,354
East Segment	297,575		14,077		4,511		316,163
Southeast Segment	379,361		10,971		3,091		393,423
Corporate and unallocated ^(b)	210,784		—		—		210,784
Total	$	1,660,841	$	28,531	$	13,352	$	1,702,724
September 30, 2018
West Segment	$	763,453	$	58,125	$	—	$	821,578
East Segment	280,761		14,077		4,580		299,418
Southeast Segment	358,126		10,971		3,177		372,274
Corporate and unallocated ^(b)	198,990		—		24		199,014
Total	$	1,601,330	$	83,173	$	7,781	$	1,692,284

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

Schedule of Discounted Cash Flow Analysis



	Results of Impairment Analyses
$ in thousands	Nine Months Ended
Segment	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at time of Impairment
June 30, 2019
West	9	839	$	92,912	$	69,449
Southeast	1	15	858		1,367
Corporate and unallocated ^(a)	—	—	16,260		14,166
Total	10	854	$	110,030	$	84,982

Quantitative unobservable inputs for inventory impairment



$ in thousands	Nine Months Ended
Unobservable Inputs	June 30, 2019
Average selling price	$350 to $615
Closings per community per month	1 - 4
Discount rate	14.7% - 16.8%

Schedule of inventory impairments and lot option abandonment charges, by reportable homebuilding segment

The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented:



	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands	2019		2018		2019		2018
Projects in Progress:
West	$	—	$	—	$	92,912	$	—
Southeast	—		—		858		—
Corporate and unallocated ^(a)	—		—		16,260		—
Total impairment charges on projects in progress	$	—	$	—	$	110,030	$	—
Land Held for Sale:
West ^(b)	$	—	$	—	$	37,963	$	—
East	—		168		—		168
Corporate and unallocated ^(a)	—		—		625		—
Total impairment charges on land held for sale	$	—	$	168	$	38,588	$	168
Discontinued Operations:
Land Held for Sale	$	—	$	—	$	—	$	450
Total impairment and abandonment charges	$	—	$	168	$	148,618	$	618

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

Summary of interests in lot option agreements

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



in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of June 30, 2019
Unconsolidated lot option agreements	$	75,740	$	389,772
As of September 30, 2018
Unconsolidated lot option agreements	$	72,191	$	383,150

Interest (Tables)

9 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Real Estate Inventory, Capitalized Interest Costs

The following table presents certain information regarding interest for the periods presented:



	Three Months Ended June 30,						Nine Months Ended June 30,
in thousands	2019			2018			2019			2018
Capitalized interest in inventory, beginning of period	$	144,756		$	149,034		$	144,645		$	139,203
Interest incurred	26,782			25,803			77,506			76,850
Capitalized interest impaired	—			—			(13,907		)	—
Interest expense not qualified for capitalization and included as other expense ^(a)	(961		)	(205		)	(1,800		)	(5,290		)
Capitalized interest amortized to home construction and land sales expenses ^(b)	(21,752		)	(22,450		)	(57,619		)	(58,581		)
Capitalized interest in inventory, end of period	$	148,825		$	152,182		$	148,825		$	152,182

^(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 (Tables)

9 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

The Company's debt, net of premiums, discounts, and unamortized debt issuance costs consisted of the following as of June 30, 2019 and September 30, 2018:



in thousands	Maturity Date	June 30, 2019			September 30, 2018
8 3/4% Senior Notes	March 2022	$	500,000		$	500,000
7 1/4% Senior Notes	February 2023	23,603			24,834
6 3/4% Senior Notes	March 2025	229,555			250,000
5 7/8% Senior Notes	October 2027	400,000			400,000
Unamortized debt premium, net		2,061			2,640
Unamortized debt issuance costs		(12,027		)	(14,336		)
Total Senior Notes, net		1,143,192			1,163,138
Junior Subordinated Notes (net of unamortized accretion of $35,220 and $36,770, respectively)	July 2036	65,553			64,003
Revolving Credit Facility	February 2021	105,000			—
Other Secured Notes payable	Various Dates	2,622			4,113
Total debt, net		$	1,316,367		$	1,231,254

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
8 3/4% Senior Notes	September 2016	March 2022	Callable at any time prior to March 15, 2019, 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, 2019, callable at a redemption price equal to 104.375% of the principal amount; on or after March 15, 2020, callable at a redemption price equal to 102.188% of the principal amount; on or after March 15, 2021, 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	February 2013	February 2023	Callable at any time on or after February 1, 2018, callable at a redemption price equal to 103.625% of the principal amount; on or after February 1, 2019, callable at a redemption price equal to 102.417% of the principal amount; on or after February 1, 2020, callable at a redemption price equal to 101.208% of the principal amount; on or after February 1, 2021, callable at 100.000% of the principal amount plus, in each case, accrued and unpaid interest
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	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

- 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)

9 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Warranty reserves

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



	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2019			2018			2019			2018
Balance at beginning of period	$	12,585		$	14,583		$	15,331		$	18,091
Accruals for warranties issued ^(a)	2,650			3,254			7,504			10,758
Changes in liability related to warranties existing in prior periods	157			711			(1,811		)	(2,574		)
Payments made	(3,155		)	(3,258		)	(8,787		)	(10,985		)
Balance at end of period	$	12,237		$	15,290		$	12,237		$	15,290

Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 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 June 30, 2019
Deferred compensation plan assets ^(a)	$	—	$	1,877	$	—	$	1,877
Development projects in progress ^(b)	—		—		84,982		84,982
Land held for sale ^(b)	—		—		5,207		5,207
As of September 30, 2018
Deferred compensation plan assets ^(a)	$	—	$	1,578	$	—	$	1,578
Development projects in progress ^(b)	—		—		1,312		1,312
Land held for sale ^(b)	—		—		1,724		1,724
Unconsolidated entity investments ^(b)	—		—		80		80

^(a)Measured at fair value on a recurring basis.

^(b)Measured at fair value on a non-recurring basis, including the capitalized interest and indirects related to the asset.

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 June 30, 2019 and September 30, 2018:



	As of June 30, 2019				As of September 30, 2018
in thousands	Carrying Amount ^(a)		Fair Value		Carrying Amount ^(a)		Fair Value
Senior Notes ^(b)	$	1,143,192	$	1,113,286	$	1,163,138	$	1,096,214
Junior Subordinated Notes	65,553		65,553		64,003		64,003
Total	$	1,208,745	$	1,178,839	$	1,227,141	$	1,160,217

^(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)

9 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of compensation cost

Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three and nine months ended June 30, 2019 and June 30, 2018, respectively.



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Stock-based compensation expense	$	3,699	$	2,484	$	7,993	$	7,692

Schedule of stock options and SSARs outstanding

Following is a summary of stock option activity for the nine months ended June 30, 2019:



	Nine Months Ended
	June 30, 2019
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	533,052		$	14.26
Granted	30,782		10.23
Exercised	(26,650	)	10.44
Cancelled	(7,944	)	10.63
Outstanding at end of period	529,240		$	14.27
Exercisable at end of period	475,887		$	14.35
Vested or expected to vest in the future	526,383		$	14.30

Schedule of nonvested stock awards activity

Following is a summary of restricted stock activity for the nine months ended June 30, 2019:



	Nine Months Ended June 30,
	Performance-Based Restricted Shares		Time-Based Restricted Shares		Total Restricted Shares
Beginning of period	644,785		431,783		1,076,568
Granted ^(a)	467,819		446,089		913,908
Vested ^(a)	(309,843	)	(205,795	)	(515,638	)
Forfeited	(7,020	)	(29,498	)	(36,518	)
End of period	795,741		642,579		1,438,320

Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 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 June 30,						Nine Months Ended June 30,
in thousands, except per share data	2019			2018			2019			2018
Numerator:
Income (loss) from continuing operations	$	11,625		$	13,429		$	(81,885	)	$	(105,530	)
Loss from discontinued operations, net of tax	(23		)	(20		)	(64		)	(450		)
Net income (loss)	$	11,602		$	13,409		$	(81,949	)	$	(105,980	)

Denominator:
Basic weighted-average shares	30,250			32,147			30,926			32,113
Dilutive effect of restricted stock awards	225			500			—			—
Dilutive effect of stock options	14			79			—			—
Diluted weighted-average shares ^(a)	30,489			32,726			30,926			32,113

Basic income (loss) per share:
Continuing operations	$	0.38		$	0.42		$	(2.65	)	$	(3.29	)
Discontinued operations	—			—			—			(0.01		)
Total	$	0.38		$	0.42		$	(2.65	)	$	(3.30	)

Diluted income (loss) per share:
Continuing operations	$	0.38		$	0.41		$	(2.65	)	$	(3.29	)
Discontinued operations	—			—			—			(0.01		)
Total	$	0.38		$	0.41		$	(2.65	)	$	(3.30	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three Months Ended June 30,		Nine Months Ended June 30,
in thousands	2019	2018	2019	2018
Stock options	406	204	529	532
Time-based restricted stock	94	170	643	850
Performance-based restricted stock	—	—	796	646

Segment Information (Tables)

9 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of segment reporting information

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



	Nine Months Ended
	June 30,
in thousands	2019		2018
Capital Expenditures
West	$	8,172	$	6,478
East	2,122		1,870
Southeast	2,564		2,215
Corporate and unallocated	3,507		3,331
Total capital expenditures	$	16,365	$	13,894

The following table presents assets by segment as of June 30, 2019 and September 30, 2018:



in thousands	June 30, 2019		September 30, 2018
Assets
West	$	800,225	$	835,230
East	327,889		335,474
Southeast	416,525		414,685
Corporate and unallocated ^(a)	575,640		542,713
Total assets	$	2,120,279	$	2,128,102

^(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirects, and other items that are not allocated to the segments.

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



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Revenue
West	$	238,723	$	242,308	$	658,097	$	654,789
East	118,356		132,415		301,168		328,680
Southeast	125,659		136,798		346,773		355,719
Total revenue	$	482,738	$	511,521	$	1,306,038	$	1,339,188



	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2019			2018			2019			2018
Operating income (loss) ^(a)
West	$	29,268		$	31,180		$	(53,489	)	$	84,005
East	11,247			13,642			23,571			29,964
Southeast	8,043			11,557			16,747			26,364
Segment total	48,558			56,379			(13,171		)	140,333
Corporate and unallocated ^(b)	(39,015		)	(38,799		)	(112,730		)	(102,247		)
Total operating income (loss)	$	9,543		$	17,580		$	(125,901	)	$	38,086



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2019		2018		2019		2018
Depreciation and amortization
West	$	1,415	$	1,983	$	3,956	$	4,936
East	658		700		1,743		1,690
Southeast	776		746		2,117		1,867
Segment total	2,849		3,429		7,816		8,493
Corporate and unallocated ^(b)	393		227		1,096		736
Total depreciation and amortization	$	3,242	$	3,656	$	8,912	$	9,229

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

Supplemental Guarantor Information (Tables)

9 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Unaudited Condensed Consolidating Balance Sheet Information

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

June 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	$	61,938	$	6,552	$	1	$	—		$	68,491
Restricted cash	14,847		1,446		—		—			16,293
Accounts receivable (net of allowance of $358)	—		20,283		4		—			20,287
Owned inventory	—		1,702,724		—		—			1,702,724
Investments in unconsolidated entities	773		3,168		—		—			3,941
Deferred tax assets, net	258,713		—		—		—			258,713
Property and equipment, net	—		28,276		—		—			28,276
Investments in subsidiaries	636,790		—		—		(636,790		)	—
Intercompany	899,170		—		1,690		(900,860		)	—
Goodwill	—		11,376		—		—			11,376
Other assets	758		9,417		3		—			10,178
Total assets	$	1,872,989	$	1,783,242	$	1,698	$	(1,537,650	)	$	2,120,279
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	152,441	$	—	$	—		$	152,441
Other liabilities	23,718		93,899		18		—			117,635
Intercompany	1,690		899,170		—		(900,860		)	—
Total debt (net of premium and debt issuance costs)	1,313,745		2,622		—		—			1,316,367
Total liabilities	1,339,153		1,148,132		18		(900,860		)	1,586,443
Stockholders’ equity	533,836		635,110		1,680		(636,790		)	533,836
Total liabilities and stockholders’ equity	$	1,872,989	$	1,783,242	$	1,698	$	(1,537,650	)	$	2,120,279

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

September 30, 2018

(Unaudited)



in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	93,875	$	45,355	$	575	$	—		$	139,805
Restricted cash	10,921		2,522		—		—			13,443
Accounts receivable (net of allowance of $378)	—		24,647		—		—			24,647
Owned inventory	—		1,692,284		—		—			1,692,284
Investments in unconsolidated entities	773		3,262		—		—			4,035
Deferred tax assets, net	213,955		—		—		—			213,955
Property and equipment, net	—		20,843		—		—			20,843
Investments in subsidiaries	645,086		—		—		(645,086		)	—
Intercompany	922,525		—		2,304		(924,829		)	—
Goodwill	—		9,751		—		—			9,751
Other assets	694		8,626		19		—			9,339
Total assets	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	126,432	$	—	$	—		$	126,432
Other liabilities	14,357		111,906		126		—			126,389
Intercompany	2,304		922,525		—		(924,829		)	—
Total debt (net of premium and debt issuance costs)	1,227,141		4,113		—		—			1,231,254
Total liabilities	1,243,802		1,164,976		126		(924,829		)	1,484,075
Stockholders’ equity	644,027		642,314		2,772		(645,086		)	644,027
Total liabilities and stockholders’ equity	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102

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 June 30, 2019
Total revenue	$	—		$	482,738		$	—		$	—		$	482,738
Home construction and land sales expenses	21,752			389,222			—			—			410,974
Gross (loss) profit	(21,752		)	93,516			—			—			71,764
Commissions	—			18,230			—			—			18,230
General and administrative expenses	—			40,749			—			—			40,749
Depreciation and amortization	—			3,242			—			—			3,242
Operating (loss) income	(21,752		)	31,295			—			—			9,543
Equity in income of unconsolidated entities	—			299			—			—			299
Gain on extinguishment of debt	358			—			—			—			358
Other (expense) income, net	(961		)	206			—			—			(755		)
(Loss) income from continuing operations before income taxes	(22,355		)	31,800			—			—			9,445
(Benefit) expense from income taxes	(5,745		)	3,565			—			—			(2,180		)
Equity in income of subsidiaries	28,235			—			—			(28,235		)	—
Income from continuing operations	11,625			28,235			—			(28,235		)	11,625
Loss from discontinued operations, net of tax	—			(18		)	(5		)	—			(23		)
Equity in loss of subsidiaries from discontinued operations	(23		)	—			—			23			—
Net income	$	11,602		$	28,217		$	(5	)	$	(28,212	)	$	11,602

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended June 30, 2018
Total revenue	$	—		$	511,521		$	23		$	(23	)	$	511,521
Home construction and land sales expenses	22,441			405,691			—			(23		)	428,109
Inventory impairments and abandonments	—			168			—			—			168
Gross (loss) profit	(22,441		)	105,662			23			—			83,244
Commissions	—			19,535			—			—			19,535
General and administrative expenses	—			42,445			28			—			42,473
Depreciation and amortization	—			3,656			—			—			3,656
Operating (loss) income	(22,441		)	40,026			(5		)	—			17,580
Equity in income of unconsolidated entities	—			147			—			—			147
Other (expense) income, net	(204		)	187			(13		)	—			(30		)
(Loss) income from continuing operations before income taxes	(22,645		)	40,360			(18		)	—			17,697
(Benefit) expense from income taxes	(6,069		)	10,341			(4		)	—			4,268
Equity in income of subsidiaries	30,005			—			—			(30,005		)	—
Income (loss) from continuing operations	13,429			30,019			(14		)	(30,005		)	13,429
Loss from discontinued operations, net of tax	—			(11		)	(9		)	—			(20		)
Equity in loss of subsidiaries from discontinued operations	(20		)	—			—			20			—
Net income (loss)	$	13,409		$	30,008		$	(23	)	$	(29,985	)	$	13,409



in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2019
Total revenue	$	—		$	1,306,038		$	115		$	(115	)	$	1,306,038
Home construction and land sales expenses	57,619			1,050,177			—			(115		)	1,107,681
Inventory impairments and abandonments	13,908			134,710			—			—			148,618
Gross (loss) profit	(71,527		)	121,151			115			—			49,739
Commissions	—			49,965			—			—			49,965
General and administrative expenses	—			116,767			(4		)	—			116,763
Depreciation and amortization	—			8,912			—			—			8,912
Operating (loss) income	(71,527		)	(54,493		)	119			—			(125,901		)
Equity in income of unconsolidated entities	—			316			—			—			316
Gain on extinguishment of debt	574			—			—			—			574
Other (expense) income, net	(1,800		)	670			(4		)	—			(1,134		)
(Loss) income from continuing operations before income taxes	(72,753		)	(53,507		)	115			—			(126,145		)
Expense (benefit) from income taxes	4,496			(48,785		)	29			—			(44,260		)
Equity in loss of subsidiaries	(4,636		)	—			—			4,636			—
(Loss) income from continuing operations	(81,885		)	(4,722		)	86			4,636			(81,885		)
Loss from discontinued operations, net of tax	—			(49		)	(15		)	—			(64		)
Equity in loss of subsidiaries from discontinued operations	(64		)	—			—			64			—
Net (loss) income	$	(81,949	)	$	(4,771	)	$	71		$	4,700		$	(81,949	)

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2018
Total revenue	$	—		$	1,339,188		$	60		$	(60	)	$	1,339,188
Home construction and land sales expenses	58,564			1,061,366			—			(60		)	1,119,870
Inventory impairments and abandonments	—			168			—			—			168
Gross (loss) profit	(58,564		)	277,654			60			—			219,150
Commissions	—			51,225			—			—			51,225
General and administrative expenses	—			120,513			97			—			120,610
Depreciation and amortization	—			9,229			—			—			9,229
Operating (loss) income	(58,564		)	96,687			(37		)	—			38,086
Equity in income of unconsolidated entities	—			302			—			—			302
Loss on extinguishment of debt	(25,904		)	—			—			—			(25,904		)
Other (expense) income, net	(5,289		)	687			(26		)	—			(4,628		)
(Loss) income from continuing operations before income taxes	(89,757		)	97,676			(63		)	—			7,856
(Benefit) expense from income taxes	(23,966		)	137,370			(18		)	—			113,386
Equity in loss of subsidiaries	(39,739		)	—			—			39,739			—
Loss from continuing operations	(105,530		)	(39,694		)	(45		)	39,739			(105,530		)
Loss from discontinued operations, net of tax	—			(432		)	(18		)	—			(450		)
Equity in loss of subsidiaries and discontinued operations	(450		)	—			—			450			—
Net loss	$	(105,980	)	$	(40,126	)	$	(63	)	$	40,189		$	(105,980	)

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.
Nine Months Ended June 30, 2019
Net cash used in operating activities	$	(64,205	)	$	(29,990	)	$	(10	)	$	—		$	(94,205	)
Cash flows from investing activities:
Capital expenditures	—			(16,365		)	—			—			(16,365		)
Proceeds from sale of fixed assets	—			162			—			—			162
Cash used for business acquisition, net of cash acquired	—			(4,088		)	—			—			(4,088		)
Advances to/from subsidiaries	(11,328		)	—			(564		)	11,892			—
Net cash used in investing activities	(11,328		)	(20,291		)	(564		)	11,892			(20,291		)
Cash flows from financing activities:
Repayment of debt	(20,843		)	(1,490		)	—			—			(22,333		)
Repayment of borrowings from credit facility	(235,000		)	—			—			—			(235,000		)
Borrowings from credit facility	340,000			—			—			—			340,000
Debt issuance costs	(400		)	—			—			—			(400		)
Repurchase of common stock	(34,624		)	—			—			—			(34,624		)
Tax payments for stock-based compensation awards	(1,889		)	—			—			—			(1,889		)
Stock option exercises	278			—			—			—			278
Advances to/from subsidiaries	—			11,892			—			(11,892		)	—
Net cash provided by financing activities	47,522			10,402			—			(11,892		)	46,032
Decrease in cash, cash equivalents, and restricted cash	(28,011		)	(39,879		)	(574		)	—			(68,464		)
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	$	76,785		$	7,998		$	1		$	—		$	84,784

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Nine Months Ended June 30, 2018
Net cash provided by (used in) operating activities	$	64,319		$	(197,707	)	$	(88	)	$	—		$	(133,476	)
Cash flows from investing activities:
Capital expenditures	—			(13,894		)	—			—			(13,894		)
Proceeds from sale of fixed assets	—			226			—			—			226
Investments in unconsolidated entities	—			(421		)	—			—			(421		)
Return of capital from unconsolidated entities	—			176			—			—			176
Advances to/from subsidiaries	(208,328		)	—			(6		)	208,334			—
Net cash used in investing activities	(208,328		)	(13,913		)	(6		)	208,334			(13,913		)
Cash flows from financing activities:
Repayment of debt	(401,509		)	—			—			—			(401,509		)
Proceeds from issuance of new debt	400,000			—			—			—			400,000
Borrowings from credit facility	75,000			—			—			—			75,000
Repayment of borrowings from credit facility	(75,000		)	—			—			—			(75,000		)
Debt issuance costs	(5,743		)	—			—			—			(5,743		)
Tax payments for stock-based compensation awards	(1,565		)	—			—			—			(1,565		)
Stock option exercises	62			—			—			—			62
Advances to/from subsidiaries	—			205,050			—			(205,050		)	—
Net cash (used in) provided by financing activities	(8,755		)	205,050			—			(205,050		)	(8,755		)
Decrease in cash, cash equivalents, and restricted cash	(152,764		)	(6,570		)	(94		)	3,284			(156,144		)
Cash, cash equivalents, and restricted cash at beginning of period	294,192			16,854			724			(7,161		)	304,609
Cash, cash equivalents, and restricted cash at end of period	$	141,428		$	10,284		$	630		$	(3,877	)	$	148,465

Discontinued Operations (Tables)

9 Months Ended

Jun. 30, 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						Nine Months Ended
	June 30,						June 30,
in thousands	2019			2018			2019			2018
Total revenue	$	—		$	—		$	55		$	633
Home construction and land sales expenses	6			5			45			728
Inventory impairments and lot option abandonments	—			—			—			450
Gross (loss) profit	(6		)	(5		)	10			(545		)
General and administrative expenses	23			27			90			74
Operating loss	(29		)	(32		)	(80		)	(619		)
Equity in income (loss) of unconsolidated entities	—			11			(1		)	27
Other expense, net	(1		)	(6		)	(2		)	(11		)
Loss from discontinued operations before income taxes	(30		)	(27		)	(83		)	(603		)
Benefit from income taxes	(7		)	(7		)	(19		)	(153		)
Loss from discontinued operations, net of tax	$	(23	)	$	(20	)	$	(64	)	$	(450	)

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721665-107760

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109226691&loc=d3e2941-110230

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Basis of Presentation and Summary of Significant Accounting Policies - Business Combinations (Details) - Venture Homes $ in Millions	Jul. 13, 2018 USD ($) home lot Community
Business Acquisition [Line Items]
Purchase price, net of cash acquired	$ 61.3
Number of active communities \| Community	27
Number of homes in backlog \| home	48
Number of model homes in backlog \| home	6
Inventory acquired	$ 55.2
Intangible assets, net (including goodwill)	11.4
Other assets acquired	0.4
Accounts payable	5.5
Other liabilities assumed	$ 0.2
Minimum
Business Acquisition [Line Items]
Number of lots acquired \| lot	1,100

Basis of Presentation and Summary of Significant Accounting Policies - Accelerated Share Repurchase Agreements (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Accelerated Share Repurchases [Line Items]
Agreement Amount		$ 50.0
Settlement Date - December 2018
Accelerated Share Repurchases [Line Items]
Agreement Amount	$ 16.5
Initial Shares Delivered	1.3
Additional Shares Delivered	0.3
Total Shares Delivered	1.6
Average price per share (in dollars per share)	$ 10.62
Settlement Date - July 2019
Accelerated Share Repurchases [Line Items]
Agreement Amount	$ 10.0
Initial Shares Delivered	0.9
Additional Shares Delivered	0.1
Total Shares Delivered	1.0
Average price per share (in dollars per share)	$ 9.87

Basis of Presentation and Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Accelerated Share Repurchases [Line Items]
Authorized amount repurchase of common stock			$ 50,000
Share repurchases	$ 10,620	$ 34,624
Remaining authorized repurchase amount	15,400	15,400
Accelerated Share Repurchase Agreement
Accelerated Share Repurchases [Line Items]
Share repurchases	$ 600	$ 8,100
Completed common stock repurchase (in shares)	0.1	0.7
Average price per share (in dollars per share)	$ 9.54	$ 11.35

Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 482,738	$ 511,521	$ 1,306,038	$ 1,339,188
Customer deposits	19,681		19,681		$ 14,903
Contract with customer, liability, revenue recognized	1,000		13,400
Homebuilding revenue
Disaggregation of Revenue [Line Items]
Total revenue	482,316	506,964	1,304,243	1,315,833
Land sales and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 422	$ 4,557	$ 1,795	$ 23,355

Supplemental Cash Flow Information - Supplemental Disclosure of Non-cash Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Supplemental disclosure of cash activity:
Interest payments	$ 64,648	$ 60,025
Income tax payments	568	495
Tax refunds received	12	39
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	68,491	136,298	$ 139,805
Restricted cash	16,293	12,167	$ 13,443
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 84,784	$ 148,465

Investments in Unconsolidated Entities - Outstanding Borrowings of Unconsolidated Entities and Equity in Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Investment in unconsolidated entities	$ 3,941		$ 3,941		$ 4,035
Total equity of unconsolidated entities	3,553		3,553		10,113
Total outstanding borrowings of unconsolidated entities	13,229		13,229		$ 12,266
Equity in income of unconsolidated entities	$ 299	$ 147	$ 316	$ 302

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

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
Inventory Disclosure [Abstract]
Homes under construction	$ 679,181		$ 476,752
Development projects in progress	753,048		907,793
Land held for future development	28,531		83,173
Land held for sale	13,352		7,781
Capitalized interest	148,825	$ 144,756	144,645	$ 152,182	$ 149,034	$ 139,203
Model homes	79,787		72,140
Total owned inventory	$ 1,702,724		$ 1,692,284

Inventory - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
Inventory - Narrative (Details) $ in Thousands	Jun. 30, 2019 USD ($) home Community	Jun. 30, 2018 USD ($) Community	Jun. 30, 2019 USD ($) home Community	Jun. 30, 2018 USD ($)	Sep. 30, 2018 USD ($) home
Inventory Disclosure [Abstract]
Number of substantially completed homes unsold \| home	185		185		240
Total value of substantially completed homes \| $	$ 62,600		$ 62,600		$ 84,800
Threshold number of homes below a minimum threshold of profitability \| home			10
Impairment and abandonment charges \| $	$ 0	$ 168	$ 148,618	$ 618
Number of communities impaired \| Community			10
Real Estate Properties [Line Items]
Number of communities on watch list \| Community	5	4
Inventory impairment charge \| $			$ 110,030
Land Held for Sale \| $	$ 0	$ 168	$ 38,588	168
Number of properties included in land held for sale \| Community			6
West Segment
Real Estate Properties [Line Items]
Number of communities on watch list \| Community	3	2
Land Held for Sale \| $	$ 0	$ 0	$ 37,963	0
East Segment
Real Estate Properties [Line Items]
Number of communities on watch list \| Community	1
Land Held for Sale \| $	$ 0	$ 168	$ 0	$ 168
Southeast Segment
Real Estate Properties [Line Items]
Number of communities on watch list \| Community	1	2

Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Projects in progress	$ 1,660,841	$ 1,601,330
Land held for future development	28,531	83,173
Land held for sale	13,352	7,781
Total owned inventory	1,702,724	1,692,284
Corporate and unallocated
Segment Reporting Information [Line Items]
Projects in progress	210,784	198,990
Land held for future development	0	0
Land held for sale	0	24
Total owned inventory	210,784	199,014
West Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	773,121	763,453
Land held for future development	3,483	58,125
Land held for sale	5,750	0
Total owned inventory	782,354	821,578
East Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	297,575	280,761
Land held for future development	14,077	14,077
Land held for sale	4,511	4,580
Total owned inventory	316,163	299,418
Southeast Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	379,361	358,126
Land held for future development	10,971	10,971
Land held for sale	3,091	3,177
Total owned inventory	$ 393,423	$ 372,274

Inventory - Results of Discounted Cash Flow Analysis (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2019 USD ($) lot Community
Real Estate, Write-down or Reserve [Line Items]
Number of Communities Impaired \| Community	10
Number of Lots Impaired \| lot	854
Impairment Charge	$ 110,030
Estimated Fair Value of Impaired Inventory at time of Impairment	$ 84,982
Continuing Operations \| West Segment
Real Estate, Write-down or Reserve [Line Items]
Number of Communities Impaired \| Community	9
Number of Lots Impaired \| lot	839
Impairment Charge	$ 92,912
Estimated Fair Value of Impaired Inventory at time of Impairment	$ 69,449
Continuing Operations \| Southeast Segment
Real Estate, Write-down or Reserve [Line Items]
Number of Communities Impaired \| Community	1
Number of Lots Impaired \| lot	15
Impairment Charge	$ 858
Estimated Fair Value of Impaired Inventory at time of Impairment	$ 1,367
Corporate and unallocated \| Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Number of Communities Impaired \| Community	0
Number of Lots Impaired \| lot	0
Impairment Charge	$ 16,260
Estimated Fair Value of Impaired Inventory at time of Impairment	$ 14,166

Inventory - Impairments and Lot Option Abandonment Charges, by Reportable Segment (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) lot Community	Jun. 30, 2018 USD ($)
Real Estate, Write-down or Reserve [Line Items]
Number of properties included in land held for sale \| Community			6
Land Held for Sale	$ 0	$ 168	$ 38,588	$ 168
Total impairment and abandonment charges	0	168	148,618	618
Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Impairment charges on projects in progress	0	0	110,030	0
Discontinued Operations
Real Estate, Write-down or Reserve [Line Items]
Land Held for Sale	0	0	0	450
Total impairment and abandonment charges	200			600
West Segment
Real Estate, Write-down or Reserve [Line Items]
Land Held for Sale	0	0	37,963	0
West Segment \| Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Impairment charges on projects in progress	0	0	92,912	0
East Segment
Real Estate, Write-down or Reserve [Line Items]
Land Held for Sale	0	168	0	168
Southeast Segment \| Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Impairment charges on projects in progress	0	0	858	0
Corporate and unallocated \| Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Impairment charges on projects in progress	0	0	16,260	0
Land Held for Sale	$ 0	$ 0	$ 625	$ 0
CALIFORNIA
Real Estate, Write-down or Reserve [Line Items]
Number of lots \| lot			732

Inventory - Quantitative Unobservable Inputs (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2019 USD ($) home
Minimum
Quantitative unobservable inputs for inventory impairment [Line Items]
Average selling price \| $	$ 350
Closings per community per month \| home	1
Maximum
Quantitative unobservable inputs for inventory impairment [Line Items]
Average selling price \| $	$ 615
Closings per community per month \| home	4
Measurement Input, Discount Rate \| Minimum
Quantitative unobservable inputs for inventory impairment [Line Items]
Discount rate	0.147
Measurement Input, Discount Rate \| Maximum
Quantitative unobservable inputs for inventory impairment [Line Items]
Discount rate	0.168

Inventory - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Real Estate Properties [Line Items]
Deposits & Non-refundable Pre-acquisition Costs Incurred	$ 75,740	$ 72,191
Remaining Obligation	$ 389,772	$ 383,150

Interest - Schedule of Capitalized Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Capitalized interest in inventory, beginning of period	$ 144,756	$ 149,034	$ 144,645	$ 139,203
Interest incurred	26,782	25,803	77,506	76,850
Capitalized interest impaired	0	0	(13,907)	0
Interest expense not qualified for capitalization and included as other expense	(961)	(205)	(1,800)	(5,290)
Capitalized interest amortized to home construction and land sales expenses	(21,752)	(22,450)	(57,619)	(58,581)
Capitalized interest in inventory, end of period	$ 148,825	$ 152,182	$ 148,825	$ 152,182

Borrowings - Schedule of Long-term Debt (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018	Jul. 30, 2016
Debt Instrument [Line Items]
Unamortized debt premium, net	$ 2,061,000	$ 2,640,000
Unamortized debt issuance costs	(12,027,000)	(14,336,000)
Total debt, net	1,316,367,000	1,231,254,000
Senior Notes
Debt Instrument [Line Items]
Unamortized debt premium, net	2,061,000	2,640,000
Unamortized debt issuance costs	(12,027,000)	(14,336,000)
Total debt, net	$ 1,143,192,000	1,163,138,000
Senior Notes \| 8 3/4% Senior Notes Maturing March 2022
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	8.75%
Total debt, net	$ 500,000,000	500,000,000
Senior Notes \| 7 1/4% Senior Notes Maturing February 2023
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	7.25%
Total debt, net	$ 23,603,000	24,834,000
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	6.75%
Total debt, net	$ 229,555,000	250,000,000
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	5.875%
Total debt, net	$ 400,000,000	400,000,000
Junior Subordinated Notes
Debt Instrument [Line Items]
Unamortized accretion	35,220,000	36,770,000
Stated interest rate on debt instrument (percent)			7.987%
Total debt, net	65,553,000	64,003,000
Other Secured Notes payable
Debt Instrument [Line Items]
Total debt, net	2,622,000	4,113,000
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility	$ 105,000,000	$ 0

Borrowings - Narrative (Details)		3 Months Ended		9 Months Ended
Borrowings - Narrative (Details)	Jul. 30, 2016	Jun. 30, 2019 USD ($) lender	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) lender	Jun. 30, 2018 USD ($)	Sep. 30, 2018 USD ($)	May 31, 2018 USD ($)	Jan. 31, 2010 USD ($)
Line of Credit Facility [Abstract]
Amount of available borrowings under the Secured Revolving Credit Facility		$ 105,000,000		$ 105,000,000		$ 200,000,000
Senior Notes [Abstract]
Ownership interest In guarantor subsidiaries		100.00%		100.00%
Gain (loss) on extinguishment of debt		$ 358,000	$ 0	$ 574,000	$ (25,904,000)
Secured Debt [Abstract]
Total debt, net		1,316,367,000		1,316,367,000		1,231,254,000
Senior Notes
Secured Debt [Abstract]
Total debt, net		$ 1,143,192,000		$ 1,143,192,000		1,163,138,000
Senior Notes \| Unsecured Senior Notes 7.25 Percent
Junior Subordinated Notes [Abstract]
Stated interest rate on debt instrument (percent)		7.25%		7.25%
Senior Notes \| Unsecured Senior Notes 6.75 Percent
Junior Subordinated Notes [Abstract]
Stated interest rate on debt instrument (percent)		6.75%		6.75%
Junior Subordinated Notes
Junior Subordinated Notes [Abstract]
Stated interest rate on debt instrument (percent)	7.987%
Effective period of debt instrument interest rate	10 years
Face amount modification								$ 75,000,000
Unamortized accretion		$ 35,220,000		$ 35,220,000		36,770,000
Secured Debt [Abstract]
Total debt, net		$ 65,553,000		$ 65,553,000		64,003,000
Weighted average fixed interest rate of debt (percent)		5.03%		5.03%
Other secured notes payable
Secured Debt [Abstract]
Total debt, net		$ 2,622,000		$ 2,622,000		4,113,000
Weighted average fixed interest rate of debt (percent)		1.88%		1.88%
Revolving Credit Facility
Line of Credit Facility [Abstract]
Credit facility borrowing capacity		$ 210,000,000.0		$ 210,000,000.0		200,000,000.0
Inventory assets pledged as collateral		$ 840,000,000		$ 840,000,000
Number of lenders \| lender		3		3
Borrowings outstanding		$ 105,000,000		$ 105,000,000		0
Letters of credit secured using cash collateral		$ 0		$ 0		0
Revolving Credit Facility \| Maximum
Line of Credit Facility [Abstract]
Aggregate collateral ratio		4.00		4.00
Revolving Credit Facility \| Minimum
Line of Credit Facility [Abstract]
Aggregate collateral ratio		1.00		1.00
Letter of Credit, Cash Secured
Line of Credit Facility [Abstract]
Letters of credit secured using cash collateral		$ 14,500,000		$ 14,500,000		$ 10,400,000
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		34,700,000		34,700,000
Standby Letters of Credit \| Backstop Standby Letters of Credit
Line of Credit Facility [Abstract]
Credit facility borrowing capacity							$ 40,000,000
Senior Notes
Senior Notes [Abstract]
Gain (loss) on extinguishment of debt		400,000		600,000
Non-cash (gain) loss on extinguishment of debt		200,000		300,000
Senior Notes \| Unsecured Senior Notes 7.25 Percent
Senior Notes [Abstract]
Extinguishment of debt, amount				1,200,000
Senior Notes \| Unsecured Senior Notes 6.75 Percent
Senior Notes [Abstract]
Extinguishment of debt, amount		$ 16,600,000		$ 20,400,000

Borrowings - Debt Redemption (Details) - Senior Notes	9 Months Ended
Borrowings - Debt Redemption (Details) - Senior Notes	Jun. 30, 2019
8 3/4% Senior Notes Maturing March 2022
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	8.75%
8 3/4% Senior Notes Maturing March 2022 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
8 3/4% Senior Notes Maturing March 2022 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	104.375%
8 3/4% Senior Notes Maturing March 2022 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.188%
8 3/4% Senior Notes Maturing March 2022 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
7 1/4% Senior Notes Maturing February 2023
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	7.25%
7 1/4% Senior Notes Maturing February 2023 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	103.625%
7 1/4% Senior Notes Maturing February 2023 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.417%
7 1/4% Senior Notes Maturing February 2023 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.208%
7 1/4% Senior Notes Maturing February 2023 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	6.75%
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%
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%
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%
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%
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%
5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	5.875%
5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.938%
5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.958%
5 7/8% Senior Notes Maturing October 2027 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.979%
5 7/8% Senior Notes Maturing October 2027 \| 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		9 Months Ended
Contingencies - Warranty (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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	$ 12,585	$ 14,583	$ 15,331	$ 18,091
Accruals for warranties issued	2,650	3,254	7,504	10,758
Changes in liability related to warranties existing in prior periods	157	711	(1,811)	(2,574)
Payments made	(3,155)	(3,258)	(8,787)	(10,985)
Balance at end of period	$ 12,237	$ 15,290	$ 12,237	$ 15,290

Contingencies - Litigation and Other Matters (Details) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2019 Community	Jun. 30, 2019 USD ($) Community	Sep. 30, 2018 USD ($)
Loss Contingencies [Line Items]
Number of communities impaired \| Community		10
Legal Reserve
Loss Contingencies [Line Items]
Accrued amounts for litigation and other contingent liabilities		$ 3.2	$ 3.7
Performance Bonds
Loss Contingencies [Line Items]
Letters of credit secured using cash collateral		49.2
Outstanding performance bonds		$ 286.5
CALIFORNIA
Loss Contingencies [Line Items]
Number of communities impaired \| Community	15

Fair Value Measurements - Fair Value Assets Measured on a Non-recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 1,877	$ 1,578
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	1,877	1,578
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	1,312
Land held for sale	5,207	1,724
Unconsolidated entity investments		80
Fair Value, Measurements, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress	0	0
Land held for sale	0	0
Unconsolidated entity investments		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	0
Land held for sale	0	0
Unconsolidated entity investments		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	1,312
Land held for sale	$ 5,207	1,724
Unconsolidated entity investments		$ 80

Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 1,208,745	$ 1,227,141
Carrying Amount \| Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,143,192	1,163,138
Carrying Amount \| Junior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	65,553	64,003
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,178,839	1,160,217
Fair Value \| Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,113,286	1,096,214
Fair Value \| Junior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 65,553	$ 64,003

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Land Held for Sale	$ 0	$ (168)	$ (38,588)	$ (168)
Total impairment and abandonment charges	0	168	148,618	618
Continuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges on projects in progress	0	0	110,030	0
Discontinued Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Land Held for Sale	0	$ 0	$ 0	(450)
Total impairment and abandonment charges	$ 200			$ 600

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit), including discontinued operations	$ (2,200)		$ 4,300	$ (44,300)	$ 113,200
Inventory impairments and abandonments	0	$ 147,600	$ 168	148,618	168
Tax credit				9,800	$ 2,800
Deferred tax assets, tax credit carryforwards	$ 9,600			$ 9,600

Stock-based Compensation - Stock Options Outstanding (Details) - Stock Options	9 Months Ended
	Jun. 30, 2019 $ / shares shares
Shares
Outstanding at beginning of period (shares) \| shares	533,052
Granted (shares) \| shares	30,782
Exercised (shares) \| shares	(26,650)
Forfeited (shares) \| shares	(7,944)
Outstanding at end of period (shares) \| shares	529,240
Exercisable at end of period (shares) \| shares	475,887
Vested or expected to vest in the future (shares) \| shares	526,383
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 14.26
Granted (in dollars per share) \| $ / shares	10.23
Exercised (in dollars per share) \| $ / shares	10.44
Forfeited (in dollars per share) \| $ / shares	10.63
Outstanding at end of period (in dollars per share) \| $ / shares	14.27
Exercisable at end of period (in dollars per share) \| $ / shares	14.35
Vested or expected to vest in the future (in dollars per share) \| $ / shares	$ 14.30

Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2019	Sep. 30, 2018
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs related to non-vested stock options award	$ 0.2	$ 0.2
Weighted average period to recognize remaining cost	1 year 4 months 4 days
Nonvested Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs related to non-vested stock awards	$ 11.3	$ 8.8
Weighted average period to recognize remaining cost	1 year 9 months 22 days

Stock-based Compensation - Restricted Stock Awards (Details)	9 Months Ended
	Jun. 30, 2019 shares
Performance-Based Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant and vesting activity (in shares)	86,050
Restricted Stock
Shares
Beginning of period (in shares)	1,076,568
Granted (in shares)	913,908
Vested (in shares)	(515,638)
Forfeited (in shares)	(36,518)
End of period (in shares)	1,438,320
Performance-Based Restricted Stock Awards
Shares
Beginning of period (in shares)	644,785
Granted (in shares)	467,819
Vested (in shares)	(309,843)
Forfeited (in shares)	(7,020)
End of period (in shares)	795,741
Time Based Restricted Stock Awards
Shares
Beginning of period (in shares)	431,783
Granted (in shares)	446,089
Vested (in shares)	(205,795)
Forfeited (in shares)	(29,498)
End of period (in shares)	642,579

Earnings Per Share - Schedule of Earnings Per Share. Basic and Dilutive (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
(Loss) income from continuing operations	$ 11,625	$ 13,429	$ (81,885)	$ (105,530)
Loss from discontinued operations, net of tax	(23)	(20)	(64)	(450)
Net income (loss)	$ 11,602	$ 13,409	$ (81,949)	$ (105,980)
Denominator:
Basic weighted-average shares (in shares)	30,250	32,147	30,926	32,113
Dilutive effect of restricted stock awards (in shares)	225	500	0	0
Dilutive effect of stock options (in shares)	14	79	0	0
Dilutive weighted-average shares (in shares)	30,489	32,726	30,926	32,113
Basic income (loss) per share:
Continuing Operations (in dollars per share)	$ 0.38	$ 0.42	$ (2.65)	$ (3.29)
Discontinued Operations (in dollars per share)	0.00	0.00	0.00	(0.01)
Total (in dollars per share)	0.38	0.42	(2.65)	(3.30)
Diluted income (loss) per share:
Continuing operations (in dollars per share)	0.38	0.41	(2.65)	(3.29)
Discontinued operations (in dollars per share)	0.00	0.00	0.00	(0.01)
Total (in dollars per share)	$ 0.38	$ 0.41	$ (2.65)	$ (3.30)

Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Stock options
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	406	204	529	532
Time-based restricted stock
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	94	170	643	850
Performance-based restricted stock
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0	796	646

Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
Other Liabilities Disclosure [Abstract]
Accrued bonus and deferred compensation	$ 27,069		$ 41,508
Accrued interest	23,913		14,401
Customer deposits	19,681		14,903
Accrued warranty expense	12,237	$ 12,585	15,331	$ 15,290	$ 14,583	$ 18,091
Litigation accrual	3,209		3,656
Income tax liabilities	632		710
Other	30,894		35,880
Total	$ 117,635		$ 126,389

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2019 USD ($) state region	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) state region segment	Jun. 30, 2018 USD ($)	Sep. 30, 2018 USD ($)
Segment Reporting [Abstract]
Number of states in which home building segments operate \| state	13		13
Number of regions in which entity operates \| region	3		3
Number of homebuilding segments \| segment			3
Segment Reporting Information [Line Items]
Revenue	$ 482,738	$ 511,521	$ 1,306,038	$ 1,339,188
Operating income	9,543	17,580	(125,901)	38,086
Depreciation and amortization	3,242	3,656	8,912	9,229
Capital expenditures			16,365	13,894
Assets	2,120,279		2,120,279		$ 2,128,102
Operating Segments
Segment Reporting Information [Line Items]
Operating income	48,558	56,379	(13,171)	140,333
Depreciation and amortization	2,849	3,429	7,816	8,493
Corporate and unallocated
Segment Reporting Information [Line Items]
Operating income	(39,015)	(38,799)	(112,730)	(102,247)
Depreciation and amortization	393	227	1,096	736
Capital expenditures			3,507	3,331
Assets	575,640		575,640		542,713
West Segment
Segment Reporting Information [Line Items]
Revenue	238,723	242,308	658,097	654,789
West Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	29,268	31,180	(53,489)	84,005
Depreciation and amortization	1,415	1,983	3,956	4,936
Capital expenditures			8,172	6,478
Assets	800,225		800,225		835,230
East Segment
Segment Reporting Information [Line Items]
Revenue	118,356	132,415	301,168	328,680
East Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	11,247	13,642	23,571	29,964
Depreciation and amortization	658	700	1,743	1,690
Capital expenditures			2,122	1,870
Assets	327,889		327,889		335,474
Southeast Segment
Segment Reporting Information [Line Items]
Revenue	125,659	136,798	346,773	355,719
Southeast Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	8,043	11,557	16,747	26,364
Depreciation and amortization	776	$ 746	2,117	1,867
Capital expenditures			2,564	$ 2,215
Assets	$ 416,525		$ 416,525		$ 414,685

Supplemental Guarantor Information - Unaudited Condensed Consolidating Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
ASSETS
Cash and cash equivalents	$ 68,491		$ 139,805	$ 136,298
Restricted cash	16,293		13,443	12,167
Accounts receivable (net of allowance of $358 and $378, respectively)	20,287		24,647
Owned inventory	1,702,724		1,692,284
Investments in unconsolidated entities	3,941		4,035
Deferred tax assets, net	258,713		213,955
Property and equipment, net	28,276		20,843
Investments in subsidiaries	0		0
Intercompany	0		0
Goodwill	11,376		9,751
Other assets	10,178		9,339
Total assets	2,120,279		2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	152,441		126,432
Other liabilities	117,635		126,389
Intercompany	0		0
Total debt, net	1,316,367		1,231,254
Total liabilities	1,586,443		1,484,075
Stockholders’ equity	533,836	$ 529,158	644,027	$ 582,667	$ 566,966	$ 682,440
Total liabilities and stockholders’ equity	2,120,279		2,128,102
Consolidating Adjustments
ASSETS
Cash and cash equivalents	0		0
Restricted cash	0		0
Accounts receivable (net of allowance of $358 and $378, respectively)	0		0
Owned inventory	0		0
Investments in unconsolidated entities	0		0
Deferred tax assets, net	0		0
Property and equipment, net	0		0
Investments in subsidiaries	(636,790)		(645,086)
Intercompany	(900,860)		(924,829)
Goodwill	0		0
Other assets	0		0
Total assets	(1,537,650)		(1,569,915)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0		0
Other liabilities	0		0
Intercompany	(900,860)		(924,829)
Total debt, net	0		0
Total liabilities	(900,860)		(924,829)
Stockholders’ equity	(636,790)		(645,086)
Total liabilities and stockholders’ equity	(1,537,650)		(1,569,915)
Beazer Homes USA, Inc. \| Reportable Legal Entities
ASSETS
Cash and cash equivalents	61,938		93,875
Restricted cash	14,847		10,921
Accounts receivable (net of allowance of $358 and $378, respectively)	0		0
Owned inventory	0		0
Investments in unconsolidated entities	773		773
Deferred tax assets, net	258,713		213,955
Property and equipment, net	0		0
Investments in subsidiaries	636,790		645,086
Intercompany	899,170		922,525
Goodwill	0		0
Other assets	758		694
Total assets	1,872,989		1,887,829
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0		0
Other liabilities	23,718		14,357
Intercompany	1,690		2,304
Total debt, net	1,313,745		1,227,141
Total liabilities	1,339,153		1,243,802
Stockholders’ equity	533,836		644,027
Total liabilities and stockholders’ equity	1,872,989		1,887,829
Guarantor Subsidiaries \| Reportable Legal Entities
ASSETS
Cash and cash equivalents	6,552		45,355
Restricted cash	1,446		2,522
Accounts receivable (net of allowance of $358 and $378, respectively)	20,283		24,647
Owned inventory	1,702,724		1,692,284
Investments in unconsolidated entities	3,168		3,262
Deferred tax assets, net	0		0
Property and equipment, net	28,276		20,843
Investments in subsidiaries	0		0
Intercompany	0		0
Goodwill	11,376		9,751
Other assets	9,417		8,626
Total assets	1,783,242		1,807,290
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	152,441		126,432
Other liabilities	93,899		111,906
Intercompany	899,170		922,525
Total debt, net	2,622		4,113
Total liabilities	1,148,132		1,164,976
Stockholders’ equity	635,110		642,314
Total liabilities and stockholders’ equity	1,783,242		1,807,290
Non-Guarantor Subsidiaries \| Reportable Legal Entities
ASSETS
Cash and cash equivalents	1		575
Restricted cash	0		0
Accounts receivable (net of allowance of $358 and $378, respectively)	4		0
Owned inventory	0		0
Investments in unconsolidated entities	0		0
Deferred tax assets, net	0		0
Property and equipment, net	0		0
Investments in subsidiaries	0		0
Intercompany	1,690		2,304
Goodwill	0		0
Other assets	3		19
Total assets	1,698		2,898
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0		0
Other liabilities	18		126
Intercompany	0		0
Total debt, net	0		0
Total liabilities	18		126
Stockholders’ equity	1,680		2,772
Total liabilities and stockholders’ equity	$ 1,698		$ 2,898

Supplemental Guarantor Information - Unaudited Condensed Consolidating Balance Sheet Information (Additional Information) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Allowances for accounts receivable	$ 358	$ 378
Beazer Homes USA, Inc.
Condensed Financial Statements, Captions [Line Items]
Allowances for accounts receivable	$ 358	$ 378

Supplemental Guarantor Information - Unaudited Condensed Consolidating Statements of Operations (Details) - USD ($)	3 Months Ended			9 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Total revenue	$ 482,738,000		$ 511,521,000	$ 1,306,038,000	$ 1,339,188,000
Home construction and land sales expenses	410,974,000		428,109,000	1,107,681,000	1,119,870,000
Inventory impairments and abandonments	0	$ 147,600,000	168,000	148,618,000	168,000
Gross profit	71,764,000		83,244,000	49,739,000	219,150,000
Commissions	18,230,000		19,535,000	49,965,000	51,225,000
General and administrative expenses	40,749,000		42,473,000	116,763,000	120,610,000
Depreciation and amortization	3,242,000		3,656,000	8,912,000	9,229,000
Operating income (loss)	9,543,000		17,580,000	(125,901,000)	38,086,000
Equity in income of unconsolidated entities	299,000		147,000	316,000	302,000
Gain (loss) on extinguishment of debt	358,000		0	574,000	(25,904,000)
Other (expense) income, net	(755,000)		(30,000)	(1,134,000)	(4,628,000)
Income (loss) from continuing operations before income taxes	9,445,000		17,697,000	(126,145,000)	7,856,000
(Benefit) expense from income taxes	(2,180,000)		4,268,000	(44,260,000)	113,386,000
Equity in income of subsidiaries	0		0	0	0
Income (loss) from continuing operations	11,625,000		13,429,000	(81,885,000)	(105,530,000)
Loss from discontinued operations, net of tax	(23,000)		(20,000)	(64,000)	(450,000)
Equity in loss of subsidiaries from discontinued operations	0		0	0	0
Net income (loss)	11,602,000		13,409,000	(81,949,000)	(105,980,000)
Consolidating Adjustments
Condensed Financial Statements, Captions [Line Items]
Total revenue	0		(23,000)	(115,000)	(60,000)
Home construction and land sales expenses	0		(23,000)	(115,000)	(60,000)
Inventory impairments and abandonments			0	0	0
Gross profit	0		0	0	0
Commissions	0		0	0	0
General and administrative expenses	0		0	0	0
Depreciation and amortization	0		0	0	0
Operating income (loss)	0		0	0	0
Equity in income of unconsolidated entities	0		0	0	0
Gain (loss) on extinguishment of debt	0			0	0
Other (expense) income, net	0		0	0	0
Income (loss) from continuing operations before income taxes	0		0	0	0
(Benefit) expense from income taxes	0		0	0	0
Equity in income of subsidiaries	(28,235,000)		(30,005,000)	4,636,000	39,739,000
Income (loss) from continuing operations	(28,235,000)		(30,005,000)	4,636,000	39,739,000
Loss from discontinued operations, net of tax	0		0	0	0
Equity in loss of subsidiaries from discontinued operations	23,000		20,000	64,000	450,000
Net income (loss)	(28,212,000)		(29,985,000)	4,700,000	40,189,000
Beazer Homes USA, Inc.
Condensed Financial Statements, Captions [Line Items]
Inventory impairments and abandonments					0
Beazer Homes USA, Inc. \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Total revenue	0		0	0	0
Home construction and land sales expenses	21,752,000		22,441,000	57,619,000	58,564,000
Inventory impairments and abandonments			0	13,908,000
Gross profit	(21,752,000)		(22,441,000)	(71,527,000)	(58,564,000)
Commissions	0		0	0	0
General and administrative expenses	0		0	0	0
Depreciation and amortization	0		0	0	0
Operating income (loss)	(21,752,000)		(22,441,000)	(71,527,000)	(58,564,000)
Equity in income of unconsolidated entities	0		0	0	0
Gain (loss) on extinguishment of debt	358,000			574,000	(25,904,000)
Other (expense) income, net	(961,000)		(204,000)	(1,800,000)	(5,289,000)
Income (loss) from continuing operations before income taxes	(22,355,000)		(22,645,000)	(72,753,000)	(89,757,000)
(Benefit) expense from income taxes	(5,745,000)		(6,069,000)	4,496,000	(23,966,000)
Equity in income of subsidiaries	28,235,000		30,005,000	(4,636,000)	(39,739,000)
Income (loss) from continuing operations	11,625,000		13,429,000	(81,885,000)	(105,530,000)
Loss from discontinued operations, net of tax	0		0	0	0
Equity in loss of subsidiaries from discontinued operations	(23,000)		(20,000)	(64,000)	(450,000)
Net income (loss)	11,602,000		13,409,000	(81,949,000)	(105,980,000)
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Inventory impairments and abandonments					168,000
Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Total revenue	482,738,000		511,521,000	1,306,038,000	1,339,188,000
Home construction and land sales expenses	389,222,000		405,691,000	1,050,177,000	1,061,366,000
Inventory impairments and abandonments			168,000	134,710,000
Gross profit	93,516,000		105,662,000	121,151,000	277,654,000
Commissions	18,230,000		19,535,000	49,965,000	51,225,000
General and administrative expenses	40,749,000		42,445,000	116,767,000	120,513,000
Depreciation and amortization	3,242,000		3,656,000	8,912,000	9,229,000
Operating income (loss)	31,295,000		40,026,000	(54,493,000)	96,687,000
Equity in income of unconsolidated entities	299,000		147,000	316,000	302,000
Gain (loss) on extinguishment of debt	0			0	0
Other (expense) income, net	206,000		187,000	670,000	687,000
Income (loss) from continuing operations before income taxes	31,800,000		40,360,000	(53,507,000)	97,676,000
(Benefit) expense from income taxes	3,565,000		10,341,000	(48,785,000)	137,370,000
Equity in income of subsidiaries	0		0	0	0
Income (loss) from continuing operations	28,235,000		30,019,000	(4,722,000)	(39,694,000)
Loss from discontinued operations, net of tax	(18,000)		(11,000)	(49,000)	(432,000)
Equity in loss of subsidiaries from discontinued operations	0		0	0	0
Net income (loss)	28,217,000		30,008,000	(4,771,000)	(40,126,000)
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Inventory impairments and abandonments					0
Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Total revenue	0		23,000	115,000	60,000
Home construction and land sales expenses	0		0	0	0
Inventory impairments and abandonments			0	0
Gross profit	0		23,000	115,000	60,000
Commissions	0		0	0	0
General and administrative expenses	0		28,000	(4,000)	97,000
Depreciation and amortization	0		0	0	0
Operating income (loss)	0		(5,000)	119,000	(37,000)
Equity in income of unconsolidated entities	0		0	0	0
Gain (loss) on extinguishment of debt	0			0	0
Other (expense) income, net	0		(13,000)	(4,000)	(26,000)
Income (loss) from continuing operations before income taxes	0		(18,000)	115,000	(63,000)
(Benefit) expense from income taxes	0		(4,000)	29,000	(18,000)
Equity in income of subsidiaries	0		0	0	0
Income (loss) from continuing operations	0		(14,000)	86,000	(45,000)
Loss from discontinued operations, net of tax	(5,000)		(9,000)	(15,000)	(18,000)
Equity in loss of subsidiaries from discontinued operations	0		0	0	0
Net income (loss)	$ (5,000)		$ (23,000)	$ 71,000	$ (63,000)

Supplemental Guarantor Information - Unaudited Condensed Consolidating Statements of Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ (94,205)	$ (133,476)
Cash flows from investing activities:
Capital expenditures	(16,365)	(13,894)
Proceeds from sale of fixed assets	162	226
Cash used for business acquisition, net of cash acquired	(4,088)	0
Investments in unconsolidated entities	0	(421)
Return of capital from unconsolidated entities	0	176
Advances to/from subsidiaries	0	0
Net cash used in investing activities	(20,291)	(13,913)
Cash flows from financing activities:
Repayment of debt	(22,333)	(401,509)
Proceeds from issuance of new debt	0	400,000
Borrowings from credit facility	340,000	75,000
Repayment of borrowings from credit facility	(235,000)	(75,000)
Debt issuance costs	(400)	(5,743)
Repurchase of common stock	(34,624)	0
Tax payments for stock-based compensation awards	(1,889)	(1,565)
Stock option exercises	278	62
Advances to/from subsidiaries	0	0
Net cash provided by (used in) financing activities	46,032	(8,755)
Decrease in cash, cash equivalents, and restricted cash	(68,464)	(156,144)
Cash, cash equivalents, and restricted cash at beginning of period	153,248	304,609
Cash, cash equivalents, and restricted cash at end of period	84,784	148,465
Consolidating Adjustments
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	0	0
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Cash used for business acquisition, net of cash acquired	0
Investments in unconsolidated entities		0
Return of capital from unconsolidated entities		0
Advances to/from subsidiaries	11,892	208,334
Net cash used in investing activities	11,892	208,334
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	0
Repurchase of common stock	0
Tax payments for stock-based compensation awards	0	0
Stock option exercises	0	0
Advances to/from subsidiaries	(11,892)	(205,050)
Net cash provided by (used in) financing activities	(11,892)	(205,050)
Decrease in cash, cash equivalents, and restricted cash	0	3,284
Cash, cash equivalents, and restricted cash at beginning of period	0	(7,161)
Cash, cash equivalents, and restricted cash at end of period	0	(3,877)
Beazer Homes USA, Inc. \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(64,205)	64,319
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Cash used for business acquisition, net of cash acquired	0
Investments in unconsolidated entities		0
Return of capital from unconsolidated entities		0
Advances to/from subsidiaries	(11,328)	(208,328)
Net cash used in investing activities	(11,328)	(208,328)
Cash flows from financing activities:
Repayment of debt	(20,843)	(401,509)
Proceeds from issuance of new debt		400,000
Borrowings from credit facility	340,000	75,000
Repayment of borrowings from credit facility	(235,000)	(75,000)
Debt issuance costs	(400)	(5,743)
Repurchase of common stock	(34,624)
Tax payments for stock-based compensation awards	(1,889)	(1,565)
Stock option exercises	278	62
Advances to/from subsidiaries	0	0
Net cash provided by (used in) financing activities	47,522	(8,755)
Decrease in cash, cash equivalents, and restricted cash	(28,011)	(152,764)
Cash, cash equivalents, and restricted cash at beginning of period	104,796	294,192
Cash, cash equivalents, and restricted cash at end of period	76,785	141,428
Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(29,990)	(197,707)
Cash flows from investing activities:
Capital expenditures	(16,365)	(13,894)
Proceeds from sale of fixed assets	162	226
Cash used for business acquisition, net of cash acquired	(4,088)
Investments in unconsolidated entities		(421)
Return of capital from unconsolidated entities		176
Advances to/from subsidiaries	0	0
Net cash used in investing activities	(20,291)	(13,913)
Cash flows from financing activities:
Repayment of debt	(1,490)	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	0
Repurchase of common stock	0
Tax payments for stock-based compensation awards	0	0
Stock option exercises	0	0
Advances to/from subsidiaries	11,892	205,050
Net cash provided by (used in) financing activities	10,402	205,050
Decrease in cash, cash equivalents, and restricted cash	(39,879)	(6,570)
Cash, cash equivalents, and restricted cash at beginning of period	47,877	16,854
Cash, cash equivalents, and restricted cash at end of period	7,998	10,284
Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(10)	(88)
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Cash used for business acquisition, net of cash acquired	0
Investments in unconsolidated entities		0
Return of capital from unconsolidated entities		0
Advances to/from subsidiaries	(564)	(6)
Net cash used in investing activities	(564)	(6)
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	0
Repurchase of common stock	0
Tax payments for stock-based compensation awards	0	0
Stock option exercises	0	0
Advances to/from subsidiaries	0	0
Net cash provided by (used in) financing activities	0	0
Decrease in cash, cash equivalents, and restricted cash	(574)	(94)
Cash, cash equivalents, and restricted cash at beginning of period	575	724
Cash, cash equivalents, and restricted cash at end of period	$ 1	$ 630

Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Inventory impairments and lot option abandonments	$ 0	$ 147,600	$ 168	$ 148,618	$ 168
Loss from discontinued operations, net of tax	(23)		(20)	(64)	(450)
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenue	0		0	55	633
Home construction and land sales expenses	6		5	45	728
Inventory impairments and lot option abandonments	0		0	0	450
Gross (loss) profit	(6)		(5)	10	(545)
General and administrative expenses	23		27	90	74
Operating loss	(29)		(32)	(80)	(619)
Equity in income (loss) of unconsolidated entities	0		11	(1)	27
Other expense, net	(1)		(6)	(2)	(11)
Loss from discontinued operations before income taxes	(30)		(27)	(83)	(603)
Benefit from income taxes	(7)		(7)	(19)	(153)
Loss from discontinued operations, net of tax	$ (23)		$ (20)	$ (64)	$ (450)

Description of Business (Details)	Jun. 30, 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