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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 27, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-12822
Entity Registrant Name	BEAZER HOMES USA, INC.
Entity Central Index Key	0000915840
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	58-2086934
Entity Address, Address Line One	1000 Abernathy Road
Entity Address, Address Line Two	Suite 260
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30328
City Area Code	770
Local Phone Number	829-3700
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	BZH
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,020,703

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
ASSETS
Cash and cash equivalents	$ 152,266	$ 106,741
Restricted cash	13,086	16,053
Accounts receivable (net of allowance of $298 and $304, respectively)	17,846	26,395
Income tax receivable	9,224	4,935
Owned inventory	1,511,560	1,504,248
Investments in unconsolidated entities	4,044	3,962
Deferred tax assets, net	233,986	246,957
Property and equipment, net	24,078	27,421
Operating lease right-of-use assets	14,060	0
Goodwill	11,376	11,376
Other assets	10,637	9,556
Total assets	2,002,163	1,957,644
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	131,200	131,152
Operating lease liabilities	16,292	0
Other liabilities	110,630	109,429
Total debt (net of debt issuance costs of $11,450 and $12,470, respectively)	1,179,725	1,178,309
Total liabilities	1,437,847	1,418,890
Stockholders’ equity:
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)	0	0
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,020,066 issued and outstanding and 30,933,110 issued and outstanding, respectively)	31	31
Paid-in capital	851,289	854,275
Accumulated deficit	(287,004)	(315,552)
Total stockholders’ equity	564,316	538,754
Total liabilities and stockholders’ equity	$ 2,002,163	$ 1,957,644

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
LIABILITIES AND STOCKHOLDERS’ EQUITY
Allowances for accounts receivable	$ 298	$ 304
Unamortized debt issuance expense	$ 11,450	$ 12,470
Preferred stock, par value (in US$ per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in US$ per share)	$ 0.001	$ 0.001
Common stock, shares authorized	63,000,000	63,000,000
Common stock, shares issued	31,020,066	30,933,110
Common stock, shares outstanding	31,020,066	30,933,110

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Total revenue	$ 533,112	$ 482,738	$ 1,440,329	$ 1,306,038
Home construction and land sales expenses	441,788	410,974	1,207,023	1,107,681
Inventory impairments and abandonments	2,266	0	2,266	148,618
Gross profit	89,058	71,764	231,040	49,739
Commissions	20,851	18,230	55,660	49,965
General and administrative expenses	41,276	40,749	121,025	116,763
Depreciation and amortization	3,780	3,242	10,834	8,912
Operating income (loss)	23,151	9,543	43,521	(125,901)
Equity in income of unconsolidated entities	4	299	138	316
Gain on extinguishment of debt	0	358	0	574
Other expense, net	(2,904)	(755)	(6,030)	(1,134)
Income (loss) from continuing operations before income taxes	20,251	9,445	37,629	(126,145)
Expense (benefit) from income taxes	4,981	(2,180)	8,940	(44,260)
Income (loss) from continuing operations	15,270	11,625	28,689	(81,885)
Loss from discontinued operations, net of tax	(82)	(23)	(141)	(64)
Net income (loss)	$ 15,188	$ 11,602	$ 28,548	$ (81,949)
Weighted average number of shares:
Basic (in shares)	29,597	30,250	29,738	30,926
Diluted (in shares)	29,674	30,489	30,014	30,926
Basic income (loss) per share:
Continuing Operations (in dollars per share)	$ 0.51	$ 0.38	$ 0.96	$ (2.65)
Discontinued operations (in dollars per share)	0	0	0	0
Total (in dollars per share)	0.51	0.38	0.96	(2.65)
Diluted income (loss) per share:
Continuing operations (in dollars per share)	0.51	0.38	0.95	(2.65)
Discontinued operations (in dollars per share)	0	0	0	0
Total (in dollars per share)	$ 0.51	$ 0.38	$ 0.95	$ (2.65)

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in Capital	Accumulated Deficit
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]
Share repurchases (in shares)	(2,200)
Share repurchases	$ (24,000)
Ending balance (in shares) at Mar. 31, 2019		32,044
Ending balance at Mar. 31, 2019	529,158	$ 32	858,709	(329,583)
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 income and comprehensive income (loss)	(81,949)			(81,949)
Stock-based compensation expense	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 and other settlements of restricted stock (in shares)		(36)
Common stock redeemed for tax liability (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 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]
Share repurchases	(34,600)
Ending balance (in shares) at Sep. 30, 2019		30,933
Ending balance at Sep. 30, 2019	538,754	$ 31	854,275	(315,552)
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 income and comprehensive income (loss)	11,602			11,602
Stock-based compensation expense	3,699		3,699
Shares issued under employee stock plans, net (in shares)		4
Forfeiture and other settlements of restricted stock (in shares)		(6)
Common stock redeemed for tax liability (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)
Beginning balance (in shares) at Sep. 30, 2019		30,933
Beginning balance at Sep. 30, 2019	$ 538,754	$ 31	854,275	(315,552)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share repurchases (in shares)	(362)
Share repurchases	$ (3,300)
Ending balance (in shares) at Mar. 31, 2020		31,020
Ending balance at Mar. 31, 2020	547,482	$ 31	849,643	(302,192)
Beginning balance (in shares) at Sep. 30, 2019		30,933
Beginning balance at Sep. 30, 2019	538,754	$ 31	854,275	(315,552)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income and comprehensive income (loss)	28,548			28,548
Stock-based compensation expense	4,869		4,869
Exercises of stock options (in shares)		50
Exercises of stock options	204		204
Shares issued under employee stock plans, net (in shares)		588
Forfeiture and other settlements of restricted stock (in shares)		(17)
Forfeiture and other settlements of restricted stock	(2,058)		(2,058)
Common stock redeemed for tax liability (in shares)		(172)
Common stock redeemed for tax liability	(2,674)		(2,674)
Share repurchases (in shares)		(362)
Share repurchases	(3,327)		(3,327)
Ending balance (in shares) at Jun. 30, 2020		31,020
Ending balance at Jun. 30, 2020	564,316	$ 31	851,289	(287,004)
Beginning balance (in shares) at Mar. 31, 2020		31,020
Beginning balance at Mar. 31, 2020	547,482	$ 31	849,643	(302,192)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income and comprehensive income (loss)	15,188			15,188
Stock-based compensation expense	1,659		1,659
Shares issued under employee stock plans, net (in shares)		7
Forfeiture and other settlements of restricted stock (in shares)		(6)
Common stock redeemed for tax liability (in shares)		(1)
Common stock redeemed for tax liability	(13)		(13)
Ending balance (in shares) at Jun. 30, 2020		31,020
Ending balance at Jun. 30, 2020	$ 564,316	$ 31	$ 851,289	$ (287,004)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ 28,548	$ (81,949)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	10,834	8,912
Stock-based compensation expense	4,869	7,993
Inventory impairments and abandonments	2,266	148,618
Deferred and other income tax expense (benefit)	8,900	(44,758)
Gain on sale of fixed assets	(195)	(142)
Change in allowance for doubtful accounts	(6)	(20)
Equity in income of unconsolidated entities	(138)	(315)
Cash distributions of income from unconsolidated entities	56	409
Loss (gain) on extinguishment of debt, net	0	(574)
Changes in operating assets and liabilities:
Decrease in accounts receivable	8,555	4,380
Decrease in income tax receivable	315	0
Increase in inventory	(6,616)	(156,472)
Increase in other assets	(1,377)	(776)
Increase in trade accounts payable	48	26,009
Increase (decrease) in other liabilities	2,897	(5,520)
Net cash provided by (used in) operating activities	58,956	(94,205)
Cash flows from investing activities:
Capital expenditures	(7,510)	(16,365)
Proceeds from sale of fixed assets	214	162
Acquisition, net of cash acquired	0	(4,088)
Net cash used in investing activities	(7,296)	(20,291)
Cash flows from financing activities:
Repayment of debt	(1,150)	(22,333)
Repayment of borrowings from credit facility	(345,000)	(235,000)
Borrowings from credit facility	345,000	340,000
Debt issuance costs	(97)	(400)
Repurchase of common stock	(3,327)	(34,624)
Tax payments for stock-based compensation awards	(2,674)	(1,889)
Stock option exercises and other financing activities	(1,854)	278
Net cash (used in) provided by financing activities	(9,102)	46,032
Net increase (decrease) in cash, cash equivalents, and restricted cash	42,558	(68,464)
Cash, cash equivalents, and restricted cash at beginning of period	122,794	153,248
Cash, cash equivalents, and restricted cash at end of period	$ 165,352	$ 84,784

Description of Business	9 Months Ended
Description of Business	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast. Our homes are designed to appeal to homeowners at different price points across various demographic segments and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate exceptional value and quality, while seeking to maximize our return on invested capital over the course of a housing cycle. For an additional description of our business, refer to Item 1 within our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 (2019 Annual Report).

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2019 Annual Report. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. The results of the Company's consolidated operations presented herein for the three and nine months ended June 30, 2020 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, such as the effects of the coronavirus (“COVID-19”) pandemic and its influence on our future results.

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

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates.

Share Repurchase Program

During the first quarter of fiscal 2019, the Company's Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. As part of this program, the Company repurchased common stock during fiscal 2019 through open market transactions, 10b5-1 plans, and accelerated share repurchase (ASR) agreements. All shares have been retired upon repurchase during fiscal 2019. The aggregate reduction to stockholders’ equity related to share repurchases during the fiscal year ended September 30, 2019 was $34.6 million.

The Company repurchased 362 thousand shares of its common stock for $3.3 million at an average price per share of $9.20 in the first half of fiscal 2020 through open market transactions and 10b5-1 plans. The Company repurchased 2.2 million shares of its common stock for $24.0 million at an average price per share of $10.89 during the six months ended March 31, 2019. All shares have been retired upon repurchase.

No share repurchases were made during the three months ended June 30, 2020. As of June 30, 2020, the remaining availability of the share repurchase program was $12.0 million. The Company does not intend to make additional share repurchases under the program for the remainder of the current fiscal year in light of the COVID-19 pandemic and because of restrictions placed on share repurchases under the Eighth Amendment to the Facility (see Note 7 for further discussion).

Inventory Valuation

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

Revenue Recognition

We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in Accounting Standards Codification Topic 606.

•Identify the contract(s) with a customer

•Identify the performance obligations

•Determine the transaction price

•Allocate the transaction price

•Recognize revenue when the performance obligations are met

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


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Homebuilding revenue	$	532,465	$	482,316	$	1,437,850	$	1,304,243
Land sales and other revenue	647		422		2,479		1,795
Total revenue ^(a)	$	533,112	$	482,738	$	1,440,329	$	1,306,038

^(a) Please see Note 15 for total revenue disaggregated by reportable segment.

Homebuilding revenue

Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $16.3 million and $11.5 million as of June 30, 2020 and September 30, 2019, respectively. Of the customer liabilities outstanding as of September 30, 2019, $0.6

million and $10.6 million were recognized in revenue during the three and nine months ended June 30, 2020, 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

Leases. On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC 842, Leases (ASC 842). ASC 842 requires lessees to record most leases on their balance sheets by recognizing a right-of-use asset, representing the right to use the identified asset during the lease term, and a corresponding lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the previous accounting rules. ASC 842 also requires significantly enhanced disclosures around an entity's leases and the related accounting. As part of our adoption of ASC 842, we applied a modified retrospective approach, whereby prior year financial statements were not recast. As a result, our consolidated financial statements as of and for the year ending September 30, 2019 were not restated and continues to be reported under the previous lease standard (ASC 840) and is therefore not comparative. We also elected the package of transition practical expedients, which allowed us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. In addition, we elected the practical expedient that allows lessees to account for lease and non-lease components together as a single component for all leases. Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets. The adoption of ASC 842 did not have any impact on our retained earnings. See Note 8 for additional discussion of our operating leases.

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

Internal-Use Software. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company early adopted this standard as of April 1, 2020 on a prospective basis. The adoption of this standard had no material impact on our consolidated financial statements and related disclosure.

Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and we may elect to apply the amendments prospectively through December 31, 2022. 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, 2020

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	2020		2019
Supplemental disclosure of non-cash activity:









Beginning operating lease right-of-use asset (ASC 842 adoption)	$	13,895	$	—
Beginning operating lease liability (ASC 842 adoption)	16,028		—


Supplemental disclosure of cash activity:
Interest payments	$	60,678	$	64,648
Income tax payments	2		568
Tax refunds received	315		12
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	152,266	$	68,491
Restricted cash	13,086		16,293
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	165,352	$	84,784

Investments in Unconsolidated Entities

9 Months Ended

Jun. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Unconsolidated Entities

As of June 30, 2020, 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, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019
Investment in unconsolidated entities	$	4,044	$	3,962
Total equity of unconsolidated entities	5,734		9,969
Total outstanding borrowings of unconsolidated entities	15,556		12,658

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


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019

Equity in income of unconsolidated entities	$	4	$	299	$	138	$	316

For the three and nine months ended June 30, 2020 and 2019, there were no impairments related to investments in unconsolidated entities.

Guarantees

Historically, the Company's joint ventures typically obtained secured acquisition, development, and construction financing. In addition, the Company and its joint venture partners provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of June 30, 2020 and September 30, 2019, the Company had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities.

The Company and its joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate the Company to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During the three and nine months ended June 30, 2020 and 2019, 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, 2020, 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, 2020

Inventory Disclosure [Abstract]

Inventory

The components of our owned inventory are as follows as of June 30, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019
Homes under construction	$	607,731	$	507,542
Development projects in progress	647,583		738,201
Land held for future development	28,531		28,531
Land held for sale	16,863		12,662
Capitalized interest	132,096		136,565
Model homes	78,756		80,747
Total owned inventory	$	1,511,560	$	1,504,248

Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including the cost of the underlying lot. We had 183 (with a cost of $61.7 million) and 238 (with a cost of $82.2 million) substantially completed homes that were not subject to a sales contract (spec homes) as of June 30, 2020 and September 30, 2019, respectively.

Development projects in progress consist principally of land acquisition, land development and other common costs. These land related costs are allocated to individual lots on a pro-rata basis, and the lot costs are transferred to homes under construction when home construction begins for the respective lots. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract.

Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable interest and real estate taxes on land held for future development are expensed as incurred.

Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2 to the audited consolidated financial statements within our 2019 Annual Report). 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, 2020 and September 30, 2019:


in thousands	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
June 30, 2020
West Segment	$	687,707	$	3,483	$	6,048	$	697,238
East Segment	284,821		14,077		3,377		302,275
Southeast Segment	301,670		10,971		7,438		320,079
Corporate and unallocated ^(b)	191,968		—		—		191,968
Total	$	1,466,166	$	28,531	$	16,863	$	1,511,560
September 30, 2019
West Segment	$	723,094	$	3,483	$	5,160	$	731,737
East Segment	228,937		14,077		4,104		247,118
Southeast Segment	318,737		10,971		3,398		333,106
Corporate and unallocated ^(b)	192,287		—		—		192,287
Total	$	1,463,055	$	28,531	$	12,662	$	1,504,248

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

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

Inventory Impairments

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

For the quarter ended June 30, 2020 and taking into consideration the factors discussed above, we identified five communities on our quarterly watch list: two in the West segment and three in the Southeast segment. None of these communities required further analysis to be performed after considering certain quantitative and qualitative factors. However, because the full magnitude and duration of the COVID-19 pandemic is uncertain and difficult to predict, changes in our cash flow projections may change our conclusions on the recoverability of inventory in the future.

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.

During the quarter ended June 30, 2020, we decided to sell two communities under development in the West and Southeast segments representing a total of 88 lots. As a result of the change in strategy with respect to the future use of these assets, we reclassified these assets from development projects in progress to land held for sale, and recognized a $1.3 million impairment charge. Impairments on land held for sale generally represent write downs of these properties to net realizable value based on sales contracts, letters of intent, current market conditions, and recent comparable land sale transactions, as applicable. Absent an executed sales contract, our assumptions related to land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results.

From time-to-time, we may determine 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. 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 seller non-performance, or permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record an abandonment charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. During the quarter ended June 30, 2020, we recognized $1.0 million abandonment charges related to four under contract land acquisition deals that we decided to terminate.

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	2020		2019		2020		2019
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	$	89	$	—	$	89	$	37,963

Southeast	8		—		8		—
Corporate and unallocated ^(a)	1,160		—		1,160		625
Total impairment charges on land held for sale	$	1,257	$	—	$	1,257	$	38,588
Abandonments:
West	$	452	$	—	$	452	$	—
East	32		—		32		—
Southeast	525		—		525		—

Total abandonments charges	$	1,009	$	—	$	1,009	$	—






Total impairment and abandonment charges	$	2,266	$	—	$	2,266	$	148,618

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

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, 2020 and September 30, 2019:


in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of June 30, 2020


Unconsolidated lot option agreements	$	69,341	$	384,892

As of September 30, 2019


Unconsolidated lot option agreements	$	78,202	$	389,705

Interest

9 Months Ended

Jun. 30, 2020

Real Estate [Abstract]

Interest

Interest capitalized during the three and nine months ended June 30, 2020 and 2019 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:


	Three Months Ended June 30,						Nine Months Ended June 30,
in thousands	2020		2019		2020		2019
Capitalized interest in inventory, beginning of period	$	134,693	$	144,756	$	136,565	$	144,645
Interest incurred	23,012		26,782		66,839		77,506
Capitalized interest impaired	(792)		—		(792)		(13,907)
Interest expense not qualified for capitalization and included as other expense ^(a)	(3,003)		(961)		(6,373)		(1,800)
Capitalized interest amortized to home construction and land sales expenses ^(b)	(21,814)		(21,752)		(64,143)		(57,619)
Capitalized interest in inventory, end of period	$	132,096	$	148,825	$	132,096	$	148,825

^(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, 2020

Debt Disclosure [Abstract]

Borrowings

The Company's debt, net of unamortized debt issuance costs consisted of the following as of June 30, 2020 and September 30, 2019:


in thousands	Final Maturity Date	June 30, 2020		September 30, 2019
Senior Unsecured Term Loan (Term Loan)	September 2022	$	150,000	$	150,000
6 3/4% Senior Notes (2025 Notes)	March 2025	229,555		229,555
5 7/8% Senior Notes (2027 Notes)	October 2027	394,000		394,000
7 1/4% Senior Notes (2029 Notes)	October 2029	350,000		350,000

Unamortized debt issuance costs		(11,450)		(12,470)
Total Senior Notes, net		1,112,105		1,111,085
Junior Subordinated Notes (net of unamortized accretion of $33,153 and $34,703, respectively)	July 2036	67,620		66,070

Revolving Credit Facility	February 2022	—		—
Other Secured Notes payable	Various Dates	—		1,154
Total debt, net		$	1,179,725	$	1,178,309

Secured Revolving Credit Facility

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

On April 27, 2020 (the Eighth Amendment Effective Date), the Company executed an Eighth Amendment to the Facility, which, among other things, (1) reduces the aggregate collateral ratio (as defined in the Facility) from 4.00:1.00 to 2.50:1.00 for period commencing on the Eighth Amendment Effective Date through September 30, 2020; (2) reduces the after-acquired property exclusionary conditions (as defined in the Facility) from the product of the aggregate amount of the commitments multiplied by 4.0 to the product of the aggregate amount of commitments multiplied by 2.5 for the period commencing on the Eighth Amendment Effective Date though September 30, 2020; (3) restricts the repurchase of the Company's capital stock through open market transactions for the period commencing on the Eighth Amendment Effective Date through September 30, 2020; and (4) reduces the aggregate amount of other investments (as defined in the Facility) that can be made by the Company from $100.0 million to $50.0 million for the period commencing on the Eight Amendment Effective Date through September 30, 2020.

As of June 30, 2020, no borrowings and no letters of credit were outstanding under the Facility, resulting in $250.0 million remaining capacity. As of September 30, 2019, no borrowings and no letters of credit were outstanding under the Facility. The Facility requires compliance with certain covenants, including negative covenants and financial covenants. As of June 30, 2020, the Company was in compliance with all such covenants.

Senior Unsecured Term Loan

On September 9, 2019, the Company entered into a term loan agreement, which provides for a Senior Unsecured Term Loan (the Term Loan) in an aggregate principal amount of up to $150.0 million. The Term Loan will (1) mature in September 2022, with $50.0 million annual repayment installments in September 2020 and September 2021; (2) bears interest at a fixed rate of 4.875%; and (3) includes an option to prepay, subject to certain conditions and the payment of certain premiums. The Term Loan contains covenants generally consistent with the covenants contained in the Facility. As of June 30, 2020, 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, 2020 and September 30, 2019, the Company had letters of credit outstanding under these additional facilities of $11.2 million and $14.1 million, respectively, all of which were secured by cash collateral in restricted accounts. The Company may enter into additional arrangements to provide additional letter of credit capacity.

In May 2018, the Company entered into a reimbursement agreement, which provides for the issuance of performance letters of credit, and an unsecured credit agreement that provides for the issuance of up to $50.0 million of standby letters of credit to backstop the Company's obligations under the reimbursement agreement (collectively, the "Bilateral Facility"). On June 17, 2020, the Company executed an Amendment No. 1 to the Bilateral Facility that extends the termination date of the agreement from June 10, 2021 to June 10, 2022. As of June 30, 2020, the total stated amount of performance letters of credit issued under the reimbursement agreement was $37.5 million (and the stated amount of the backstop standby letter of credit issued under the credit agreement was $40.0 million). The Company may enter into additional arrangements to provide greater letter of credit capacity.

Senior Notes

The Company's Senior Notes are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Facility. Each guarantor subsidiary is a 100% owned subsidiary of Beazer Homes.

All unsecured Senior Notes rank equally in right of payment with all existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, including indebtedness under the Facility, if outstanding, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture.

The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company is in compliance with the covenants contained in the indentures of all of its Senior Notes as of June 30, 2020.

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

Senior Note Description

Issuance Date

Maturity Date

Redemption Terms

6 3/4% Senior Notes

March 2017

March 2025

On or prior to March 15, 2020, we may redeem up to 35% of the aggregate principal amount of the 2025 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 106.750% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2025 Notes originally issued remains outstanding immediately after such redemption.

Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.

5 7/8% Senior Notes

October 2017

October 2027

On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2027 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 105.875% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2027 Notes originally issued remains outstanding immediately after such redemption.

Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.

7 1/4% Senior Notes

September 2019

October 2029

On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption.

Callable at any time prior to October 15, 2024, 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, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.

Junior Subordinated Notes

The Company's unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036. The Junior Subordinated Notes are redeemable at par and paid interest at a fixed rate of 7.987% for the first ten years ending July 30, 2016. The securities now have a floating interest rate as defined in the Junior Subordinated Notes Indenture, which was a weighted-average of 4.25% as of June 30, 2020. 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, 2020, the unamortized accretion was $33.2 million and will be amortized over the remaining life of the notes. As of June 30, 2020, the Company was in compliance with all covenants under the Junior Subordinated Notes.

Operating Leases

9 Months Ended

Jun. 30, 2020

Leases [Abstract]

Operating Leases

The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Certain of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expense that do not depend on an index or rate.

We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date.

Operating lease expense is included as a component of general and administrative expenses in our condensed consolidated statements of operations. For the three and nine months ended June 30, 2020, we recorded operating lease expense of $1.1 million and $3.4 million, respectively. Cash payments on lease liabilities during the three and nine months ended June 30, 2020 totaled $1.1 million and $3.5 million, respectively. Sublease income and variable lease expenses are de minimis. The Company increased both its operating lease ROU asset and operating lease liability by $30 thousand and $3.1 million as a result of additional leases that commenced during the three and nine months ended June 30, 2020, respectively.

At June 30, 2020, weighted-average remaining lease term and discount rate were as follows:


Weighted-average remaining lease term									5.2 years
Weighted-average discount rate									4.87%

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of June 30, 2020:


Fiscal Years Ending September 30,
in thousands
2020 ^(a)	$	1,213
2021	4,573
2022	3,743
2023	2,933
2024	1,818
Thereafter	4,270
Total lease payments	18,550
Less: imputed interest	2,258
Total operating lease liabilities	$	16,292

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

At September 30, 2019, under ASC 840, Leases (“ASC 840”), the future minimum rental commitments totaled $20.2 million under non-cancelable operating leases as follows: 2020 - $4.7 million; 2021 - $4.5 million; 2022 - $3.6 million; 2023 - $2.9 million; 2024 - $1.8 million; and $2.6 million thereafter.

Contingencies

9 Months Ended

Jun. 30, 2020

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	2020		2019		2020		2019
Balance at beginning of period	$	12,058	$	12,585	$	13,388	$	15,331
Accruals for warranties issued ^(a)	2,798		2,650		7,170		7,504
Changes in liability related to warranties existing in prior periods	(285)		157		(1,369)		(1,811)
Payments made	(2,279)		(3,155)		(6,897)		(8,787)
Balance at end of period	$	12,292	$	12,237	$	12,292	$	12,237

^(a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed, and the rates of accrual per home estimated as a percentage of the selling price of the home.

Insurance Recoveries

The Company has insurance policies that provide for the reimbursement of certain warranty costs incurred above specified thresholds for each period covered. Amounts recorded for anticipated insurance recoveries are reflected within the condensed consolidated statements of income as a reduction of home construction expenses. Amounts not yet received from our insurer are recorded on a gross basis, without any reduction for the associated warranty expense, within accounts receivable on our condensed consolidated balance sheets.

Litigation

In the normal course of business, we are subject to various lawsuits. We cannot predict or determine the timing or final outcome of these lawsuits or the effect that any adverse findings or determinations in pending lawsuits may have on us. In addition, an estimate of possible loss or range of loss, if any, cannot presently be made with respect to certain of these pending matters. An unfavorable determination in any of the pending lawsuits could result in the payment by us of substantial monetary damages that may not be fully covered by insurance. Further, the legal costs associated with the lawsuits and the amount of time required to be spent by management and our Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations, or cash flows.

Claims Related to Inventory Impairment Charges. During the quarter ended March 31, 2019, we recognized inventory impairment charges related to 15 communities in California, all of which were previously land held for future development assets. Related to these inventory impairment charges, on June 5, 2019, a putative class action lawsuit was filed against Beazer Homes USA, Inc. and certain of our officers in the U.S. District Court for the Southern District of New York. The proposed class consisted of all persons and entities that acquired our securities between August 1, 2014 and May 2, 2019. On October 18, 2019, the plaintiffs filed a notice of voluntary dismissal of this case, and the Court subsequently entered an order dismissing the case.

Beginning June 25, 2019, several shareholder derivative lawsuits relating to the same inventory impairment charges discussed above were filed against Beazer Homes USA, Inc., certain of our officers and members of our Board of Directors in the U.S. District Court for the Northern District of Georgia. The plaintiffs in these cases allege breaches of fiduciary duty, unjust enrichment and violations of the federal securities laws. These federal actions have been consolidated into a single derivative action. Additionally, a substantially similar derivative action has been filed in the Superior Court of Fulton County, Georgia. The plaintiffs in each of these actions seek, among other things, monetary damages, disgorgement of profits and attorneys’ and experts’ fees, but do not specify any specific amounts. We believe the allegations are without merit and intend to vigorously defend against the claims. However, because the outcome of these legal proceedings cannot be predicted with certainty, we have determined that the amount of any possible losses or range of possible losses in connection with these matters is not reasonably estimable.

Other Matters

We and certain of our subsidiaries have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance. In our opinion, based on our current assessment, the ultimate resolution of these matters will not have a material adverse effect on our financial condition, results of operations, or cash flows.

We have an accrual of $3.6 million and $3.4 million in other liabilities on our condensed consolidated balance sheets related to litigation and other matters, excluding warranty, as of June 30, 2020 and September 30, 2019, respectively.

We had outstanding letters of credit and performance bonds of approximately $48.7 million and $255.6 million, respectively, as of June 30, 2020, 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, 2020

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, 2020, we recognized impairments of $1.3 million on land held for sale compared to no such impairments during the three months ended June 30, 2019.

During the nine months ended June 30, 2020, we recognized impairments of $1.3 million on land held for sale compared to $110.0 million in impairments on projects in process and $38.6 million on land held for sale during the nine months ended June 30, 2019.

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, 2020

Deferred compensation plan assets ^(a)	$	—	$	2,266	$	—		$	2,266

Land held for sale ^(b)	—		—		6,240		^(c)	6,240
As of September 30, 2019
Deferred compensation plan assets ^(a)	$	—	$	1,970	$	—		$	1,970
Development projects in progress ^(b)	—		—		84,982		^(c)	84,982
Land held for sale ^(b)	—		—		5,207		^(c)	5,207

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

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

^(c)Amount represents the impairment-date fair value of the development projects in progress and land held for sale assets that were impaired during the period indicated.

The fair value of cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, amounts due under the Facility (if outstanding), and other secured notes payable approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value.

The following table presents the carrying value and estimated fair value of certain other financial liabilities as of June 30, 2020 and September 30, 2019:


	As of June 30, 2020						As of September 30, 2019
in thousands	Carrying Amount ^(a)		Fair Value		Carrying Amount ^(a)		Fair Value
Senior Notes ^(b)	$	1,112,105	$	1,082,118	$	1,111,085	$	1,115,011
Junior Subordinated Notes ^(c)	67,620		67,620		66,070		66,070
Total	$	1,179,725	$	1,149,738	$	1,177,155	$	1,181,081

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

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

^(c)Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange.

- 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, 2020
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 expense of $5.0 million and $8.9 million for the three and nine months ended June 30, 2020, respectively, compared to an income tax benefit of $2.2 million and $44.3 million for the three and nine months ended June 30, 2019, respectively. Income tax expense for the nine months ended June 30, 2020 was substantially driven by (1) income from continuing operations, partially offset by (2) the completion of work necessary to claim an additional $0.8 million in tax credits related to prior fiscal years, and (3) the discrete impact related to stock-based compensation expense as a result of current period activity. Income tax benefit for the nine months ended June 30, 2019 was primarily driven by (1) $148.6 million of book impairments on our land inventory assets, 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 (3) the discrete impact related to our stock-based compensation expense. Deferred Tax Assets and Liabilities As of December 31, 2019, the net deferred tax asset was comprised of various tax attributes that included $4.6 million of minimum tax credit carryforwards. Beginning in our fiscal 2019, the Company started making cash refund claims for significant portions of these credits due to the elimination of the alternative minimum tax in the Tax Cuts and Jobs Act. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act provides companies with the ability to make a refund claim for their entire minimum tax carryforward as early as their 2018 tax return. As a result, in the quarter-ended March 31, 2020, we reduced our deferred tax asset by the remaining $4.6 million of minimum tax credits and increased our tax receivable for the refund we expect to receive with the filing of our fiscal 2019 tax return. 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, 2020, management concluded that it is more likely than not that a substantial portion of our deferred tax assets will be realized. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in the estimate of our deferred tax assets that may be realized in the future. As we continue to monitor the impacts of the COVID-19 pandemic on our business, any sustained or prolonged reductions in future earnings periods may change our conclusions on whether we are more likely than not to realize portions of our deferred tax assets. At this time, our conclusions on the valuation allowance and Internal Revenue Code Section 382 limitations related to our deferred tax assets remain consistent with the determinations we made during the period ended September 30, 2019, and such conclusions are based on similar company specific and industry factors to those discussed in Note 13 to the audited consolidated financial statements within our 2019 Annual Report.

Stock-based Compensation

9 Months Ended

Jun. 30, 2020

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, 2020 and June 30, 2019, respectively.


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Stock-based compensation expense	$	1,659	$	3,699	$	4,869	$	7,993

Stock Options

Following is a summary of stock option activity for the nine months ended June 30, 2020:


	Nine Months Ended
	June 30, 2020
	Shares	Weighted Average Exercise Price
Outstanding at beginning of period	523,754	$	14.34
Granted	950	10.67
Exercised	(126,492)	11.05

Cancelled	(3,088)	9.70
Outstanding at end of period	395,124	$	15.43
Exercisable at end of period	365,348	$	15.62
Vested or expected to vest in the future	394,255	$	15.44

As of June 30, 2020 and September 30, 2019, total unrecognized compensation cost related to unvested stock options was $56 thousand and $0.1 million, respectively. The remaining cost as of June 30, 2020 is expected to be recognized over a weighted-average period of 0.56 years.

Restricted Stock Awards

During the nine months ended June 30, 2020, 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, 2020:


	Nine Months Ended June 30, 2020
	Performance-Based Restricted Shares	Time-Based Restricted Shares	Total Restricted Shares
Beginning of period	778,814	611,607	1,390,421
Granted	260,131	327,571	587,702
Vested	(242,921)	(296,277)	(539,198)
Forfeited	—	(17,674)	(17,674)
End of period	796,024	625,227	1,421,251

Each of our performance-based restricted share represents a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2019, we cash settled 135,337 shares earned above target level based on the performance level achieved under our 2017 performance-based award plan. The cash payment totaled $2.1 million, which was reflected as a reduction to paid-in capital in the accompanying condensed consolidated statements of stockholders' equity. We have not cash settled any such performance-based awards prior to or subsequent to the November 2019 transaction, and we have no current plans to cash settle any additional performance-based restricted shares in the future.

As of June 30, 2020 and September 30, 2019, total unrecognized compensation cost related to unvested restricted stock awards was $9.5 million and $9.0 million, respectively. The remaining cost as of June 30, 2020 is expected to be recognized over a weighted average period of 1.82 years.

Earnings Per Share

9 Months Ended

Jun. 30, 2020

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	2020		2019		2020		2019
Numerator:
Income (loss) from continuing operations	$	15,270	$	11,625	$	28,689	$	(81,885)
Loss from discontinued operations, net of tax	(82)		(23)		(141)		(64)
Net income	$	15,188	$	11,602	$	28,548	$	(81,949)

Denominator:
Basic weighted-average shares	29,597		30,250		29,738		30,926
Dilutive effect of restricted stock awards	76		225		267		—
Dilutive effect of stock options	1		14		9		—
Diluted weighted-average shares ^(a)	29,674		30,489		30,014		30,926

Basic income (loss) per share:
Continuing operations	$	0.51	$	0.38	$	0.96	$	(2.65)
Discontinued operations	—		—		—		—
Total	$	0.51	$	0.38	$	0.96	$	(2.65)

Diluted income (loss) per share:
Continuing operations	$	0.51	$	0.38	$	0.95	$	(2.65)
Discontinued operations	—		—		—		—
Total	$	0.51	$	0.38	$	0.95	$	(2.65)

^(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, 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	2020	2019	2020	2019
Stock options	372	406	390	529
Time-based restricted stock	286	94	49	643
Performance-based restricted stock	—	—	—	796

Other Liabilities

9 Months Ended

Jun. 30, 2020

Other Liabilities Disclosure [Abstract]

Other Liabilities

Other liabilities include the following as of June 30, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019

Accrued bonus and deferred compensation	$	37,515	$	36,237
Customer deposits	16,293		11,539
Accrued interest	15,748		12,767
Accrued warranty expense	12,292		13,388

Litigation accrual	3,570		3,420
Income tax liabilities	1,177		648
Other	24,035		31,430
Total	$	110,630	$	109,429

Segment Information

9 Months Ended

Jun. 30, 2020

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 2019 Annual Report.

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


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Revenue
West	$	303,500	$	238,723	$	825,629	$	658,097
East	108,126		118,356		297,107		301,168
Southeast	121,486		125,659		317,593		346,773
Total revenue	$	533,112	$	482,738	$	1,440,329	$	1,306,038


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Operating income (loss) ^(a)
West	$	42,574	$	29,268	$	106,128	$	(53,489)
East	12,423		11,247		29,257		23,571
Southeast	11,787		8,043		23,757		16,747

Segment total	66,784		48,558		159,142		(13,171)
Corporate and unallocated ^(b)	(43,633)		(39,015)		(115,621)		(112,730)
Total operating income (loss)	$	23,151	$	9,543	$	43,521	$	(125,901)


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Depreciation and amortization
West	$	2,119	$	1,415	$	5,778	$	3,956
East	500		658		1,605		1,743
Southeast	638		776		1,878		2,117

Segment total	3,257		2,849		9,261		7,816
Corporate and unallocated ^(b)	523		393		1,573		1,096
Total depreciation and amortization	$	3,780	$	3,242	$	10,834	$	8,912

^(a)Operating income (loss) is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5). For the nine months ended June 30, 2020 and June 30, 2019, we recognized $1.1 million and $131.7 million of inventory impairment and abandonment charges, respectively.

^(b)Corporate and unallocated operating loss includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. For the nine months ended June 30, 2020 and June 30, 2019, we wrote off $1.2 million and $16.9 million of capitalized interest and capitalized indirect costs, respectively (see Note 5 for further information).

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


	Nine Months Ended
	June 30,
in thousands	2020		2019
Capital Expenditures
West	$	3,606	$	8,172
East	1,699		2,122
Southeast	1,852		2,564

Corporate and unallocated	353		3,507
Total capital expenditures	$	7,510	$	16,365

The following table presents assets by segment as of June 30, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019
Assets
West	$	720,268	$	751,110
East	317,228		286,340
Southeast	340,654		359,431
Corporate and unallocated ^(a)	624,013		560,763
Total assets	$	2,002,163	$	1,957,644

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

Discontinued Operations

9 Months Ended

Jun. 30, 2020

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, 2020 or September 30, 2019. Discontinued operations were not segregated in the condensed consolidated statements of cash flows. Therefore, amounts for certain captions in the condensed consolidated statements of cash flows will not agree with the respective data in the condensed consolidated statements of operations. The results of our discontinued operations in the condensed consolidated statements of operations for the periods presented were as follows:


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Total revenue	$	—	$	—	$	—	$	55
Home construction and land sales expenses	62		6		47		45

Gross (loss) profit	(62)		(6)		(47)		10

General and administrative expenses	43		23		133		90

Operating loss	(105)		(29)		(180)		(80)
Equity in loss of unconsolidated entities	—		—		—		(1)
Other expense, net	—		(1)		(1)		(2)
Loss from discontinued operations before income taxes	(105)		(30)		(181)		(83)
Benefit from income taxes	(23)		(7)		(40)		(19)
Loss from discontinued operations, net of tax	$	(82)	$	(23)	$	(141)	$	(64)

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Consolidation	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 2020 began on October 1, 2019 and ends on September 30, 2020. Our fiscal year 2019 began on October 1, 2018 and ended on September 30, 2019.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates.
Share Repurchase Program	Share Repurchase ProgramDuring the first quarter of fiscal 2019, the Company's Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. As part of this program, the Company repurchased common stock during fiscal 2019 through open market transactions, 10b5-1 plans, and accelerated share repurchase (ASR) agreements. All shares have been retired upon repurchase during fiscal 2019.
Inventory Valuation	Inventory Valuation Inventory assets are assessed for recoverability no less than quarterly in accordance with the policies described in Notes 2 and 5 to the audited consolidated financial statements within our 2019 Annual Report. Homebuilding inventories that are accounted for as held for development (projects in progress) include land and home construction assets grouped together as communities. Homebuilding inventories held for development are stated at cost (including direct construction costs, capitalized indirect costs, capitalized interest, and real estate taxes) unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. For communities that have been idled (land held for future development), all applicable interest and real estate taxes are expensed as incurred, and the inventory is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We record land held for sale at the lower of the carrying value or fair value less costs to sell.
Revenue Recognition	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 Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $16.3 million and $11.5 million as of June 30, 2020 and September 30, 2019, respectively. Of the customer liabilities outstanding as of September 30, 2019, $0.6 million and $10.6 million were recognized in revenue during the three and nine months ended June 30, 2020, 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	Recent Accounting Pronouncements Leases. On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC 842, Leases (ASC 842). ASC 842 requires lessees to record most leases on their balance sheets by recognizing a right-of-use asset, representing the right to use the identified asset during the lease term, and a corresponding lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the previous accounting rules. ASC 842 also requires significantly enhanced disclosures around an entity's leases and the related accounting. As part of our adoption of ASC 842, we applied a modified retrospective approach, whereby prior year financial statements were not recast. As a result, our consolidated financial statements as of and for the year ending September 30, 2019 were not restated and continues to be reported under the previous lease standard (ASC 840) and is therefore not comparative. We also elected the package of transition practical expedients, which allowed us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. In addition, we elected the practical expedient that allows lessees to account for lease and non-lease components together as a single component for all leases. Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets. The adoption of ASC 842 did not have any impact on our retained earnings. See Note 8 for additional discussion of our operating leases. Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework (ASU 2018-13). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted for any removed or modified disclosures. We are currently assessing the impact of adopting the updated provisions. Internal-Use Software. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company early adopted this standard as of April 1, 2020 on a prospective basis. The adoption of this standard had no material impact on our consolidated financial statements and related disclosure. Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and we may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures.
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.

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

9 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

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	2020		2019		2020		2019
Homebuilding revenue	$	532,465	$	482,316	$	1,437,850	$	1,304,243
Land sales and other revenue	647		422		2,479		1,795
Total revenue ^(a)	$	533,112	$	482,738	$	1,440,329	$	1,306,038

^(a) Please see Note 15 for total revenue disaggregated by reportable segment.

Supplemental Cash Flow Information (Tables)

9 Months Ended

Jun. 30, 2020

Supplemental Cash Flow Elements [Abstract]

Supplemental disclosure of non-cash activity


	Nine Months Ended
	June 30,
in thousands	2020		2019
Supplemental disclosure of non-cash activity:









Beginning operating lease right-of-use asset (ASC 842 adoption)	$	13,895	$	—
Beginning operating lease liability (ASC 842 adoption)	16,028		—


Supplemental disclosure of cash activity:
Interest payments	$	60,678	$	64,648
Income tax payments	2		568
Tax refunds received	315		12
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	152,266	$	68,491
Restricted cash	13,086		16,293
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	165,352	$	84,784

Investments in Unconsolidated Entities (Tables)

9 Months Ended

Jun. 30, 2020

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, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019
Investment in unconsolidated entities	$	4,044	$	3,962
Total equity of unconsolidated entities	5,734		9,969
Total outstanding borrowings of unconsolidated entities	15,556		12,658

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


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019

Equity in income of unconsolidated entities	$	4	$	299	$	138	$	316

Inventory (Tables)

9 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Schedule of inventory

The components of our owned inventory are as follows as of June 30, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019
Homes under construction	$	607,731	$	507,542
Development projects in progress	647,583		738,201
Land held for future development	28,531		28,531
Land held for sale	16,863		12,662
Capitalized interest	132,096		136,565
Model homes	78,756		80,747
Total owned inventory	$	1,511,560	$	1,504,248

Schedule of total owned inventory, by segment

Total owned inventory by reportable segment is presented in the table below as of June 30, 2020 and September 30, 2019:


in thousands	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
June 30, 2020
West Segment	$	687,707	$	3,483	$	6,048	$	697,238
East Segment	284,821		14,077		3,377		302,275
Southeast Segment	301,670		10,971		7,438		320,079
Corporate and unallocated ^(b)	191,968		—		—		191,968
Total	$	1,466,166	$	28,531	$	16,863	$	1,511,560
September 30, 2019
West Segment	$	723,094	$	3,483	$	5,160	$	731,737
East Segment	228,937		14,077		4,104		247,118
Southeast Segment	318,737		10,971		3,398		333,106
Corporate and unallocated ^(b)	192,287		—		—		192,287
Total	$	1,463,055	$	28,531	$	12,662	$	1,504,248

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

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

Schedule of inventory impairments and lot option abandonment charges

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


	Three Months Ended June 30,						Nine Months Ended June 30,
in thousands	2020		2019		2020		2019
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	$	89	$	—	$	89	$	37,963

Southeast	8		—		8		—
Corporate and unallocated ^(a)	1,160		—		1,160		625
Total impairment charges on land held for sale	$	1,257	$	—	$	1,257	$	38,588
Abandonments:
West	$	452	$	—	$	452	$	—
East	32		—		32		—
Southeast	525		—		525		—

Total abandonments charges	$	1,009	$	—	$	1,009	$	—






Total impairment and abandonment charges	$	2,266	$	—	$	2,266	$	148,618

^(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, 2020 and September 30, 2019:


in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of June 30, 2020


Unconsolidated lot option agreements	$	69,341	$	384,892

As of September 30, 2019


Unconsolidated lot option agreements	$	78,202	$	389,705

Interest (Tables)

9 Months Ended

Jun. 30, 2020

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	2020		2019		2020		2019
Capitalized interest in inventory, beginning of period	$	134,693	$	144,756	$	136,565	$	144,645
Interest incurred	23,012		26,782		66,839		77,506
Capitalized interest impaired	(792)		—		(792)		(13,907)
Interest expense not qualified for capitalization and included as other expense ^(a)	(3,003)		(961)		(6,373)		(1,800)
Capitalized interest amortized to home construction and land sales expenses ^(b)	(21,814)		(21,752)		(64,143)		(57,619)
Capitalized interest in inventory, end of period	$	132,096	$	148,825	$	132,096	$	148,825

^(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, 2020

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

The Company's debt, net of unamortized debt issuance costs consisted of the following as of June 30, 2020 and September 30, 2019:


in thousands	Final Maturity Date	June 30, 2020		September 30, 2019
Senior Unsecured Term Loan (Term Loan)	September 2022	$	150,000	$	150,000
6 3/4% Senior Notes (2025 Notes)	March 2025	229,555		229,555
5 7/8% Senior Notes (2027 Notes)	October 2027	394,000		394,000
7 1/4% Senior Notes (2029 Notes)	October 2029	350,000		350,000

Unamortized debt issuance costs		(11,450)		(12,470)
Total Senior Notes, net		1,112,105		1,111,085
Junior Subordinated Notes (net of unamortized accretion of $33,153 and $34,703, respectively)	July 2036	67,620		66,070

Revolving Credit Facility	February 2022	—		—
Other Secured Notes payable	Various Dates	—		1,154
Total debt, net		$	1,179,725	$	1,178,309

Debt Instrument Redemption

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

Senior Note Description

Issuance Date

Maturity Date

Redemption Terms

6 3/4% Senior Notes

March 2017

March 2025

5 7/8% Senior Notes

October 2017

October 2027

7 1/4% Senior Notes

September 2019

October 2029

- 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.

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+ Details

Operating Leases (Tables)

9 Months Ended

Jun. 30, 2020

Leases [Abstract]

Lease, Cost

At June 30, 2020, weighted-average remaining lease term and discount rate were as follows:


Weighted-average remaining lease term									5.2 years
Weighted-average discount rate									4.87%

Lessee, Operating Lease, Liability, Maturity

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of June 30, 2020:


Fiscal Years Ending September 30,
in thousands
2020 ^(a)	$	1,213
2021	4,573
2022	3,743
2023	2,933
2024	1,818
Thereafter	4,270
Total lease payments	18,550
Less: imputed interest	2,258
Total operating lease liabilities	$	16,292

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

Contingencies (Tables)

9 Months Ended

Jun. 30, 2020

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	2020		2019		2020		2019
Balance at beginning of period	$	12,058	$	12,585	$	13,388	$	15,331
Accruals for warranties issued ^(a)	2,798		2,650		7,170		7,504
Changes in liability related to warranties existing in prior periods	(285)		157		(1,369)		(1,811)
Payments made	(2,279)		(3,155)		(6,897)		(8,787)
Balance at end of period	$	12,292	$	12,237	$	12,292	$	12,237

Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2020

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, 2020

Deferred compensation plan assets ^(a)	$	—	$	2,266	$	—		$	2,266

Land held for sale ^(b)	—		—		6,240		^(c)	6,240
As of September 30, 2019
Deferred compensation plan assets ^(a)	$	—	$	1,970	$	—		$	1,970
Development projects in progress ^(b)	—		—		84,982		^(c)	84,982
Land held for sale ^(b)	—		—		5,207		^(c)	5,207

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

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

^(c)Amount represents the impairment-date fair value of the development projects in progress and land held for sale assets that were impaired during the period indicated.

Schedule of carrying values and estimated fair values of other financial assets and liabilities

The following table presents the carrying value and estimated fair value of certain other financial liabilities as of June 30, 2020 and September 30, 2019:


	As of June 30, 2020						As of September 30, 2019
in thousands	Carrying Amount ^(a)		Fair Value		Carrying Amount ^(a)		Fair Value
Senior Notes ^(b)	$	1,112,105	$	1,082,118	$	1,111,085	$	1,115,011
Junior Subordinated Notes ^(c)	67,620		67,620		66,070		66,070
Total	$	1,179,725	$	1,149,738	$	1,177,155	$	1,181,081

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

^(b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have 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, 2020

Share-based Payment Arrangement [Abstract]

Summary of stock-based compensation expense

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, 2020 and June 30, 2019, respectively.


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Stock-based compensation expense	$	1,659	$	3,699	$	4,869	$	7,993

Schedule of stock options outstanding

Following is a summary of stock option activity for the nine months ended June 30, 2020:


	Nine Months Ended
	June 30, 2020
	Shares	Weighted Average Exercise Price
Outstanding at beginning of period	523,754	$	14.34
Granted	950	10.67
Exercised	(126,492)	11.05

Cancelled	(3,088)	9.70
Outstanding at end of period	395,124	$	15.43
Exercisable at end of period	365,348	$	15.62
Vested or expected to vest in the future	394,255	$	15.44

Schedule of nonvested stock awards activity

Following is a summary of restricted stock activity for the nine months ended June 30, 2020:


	Nine Months Ended June 30, 2020
	Performance-Based Restricted Shares	Time-Based Restricted Shares	Total Restricted Shares
Beginning of period	778,814	611,607	1,390,421
Granted	260,131	327,571	587,702
Vested	(242,921)	(296,277)	(539,198)
Forfeited	—	(17,674)	(17,674)
End of period	796,024	625,227	1,421,251

Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2020

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	2020		2019		2020		2019
Numerator:
Income (loss) from continuing operations	$	15,270	$	11,625	$	28,689	$	(81,885)
Loss from discontinued operations, net of tax	(82)		(23)		(141)		(64)
Net income	$	15,188	$	11,602	$	28,548	$	(81,949)

Denominator:
Basic weighted-average shares	29,597		30,250		29,738		30,926
Dilutive effect of restricted stock awards	76		225		267		—
Dilutive effect of stock options	1		14		9		—
Diluted weighted-average shares ^(a)	29,674		30,489		30,014		30,926

Basic income (loss) per share:
Continuing operations	$	0.51	$	0.38	$	0.96	$	(2.65)
Discontinued operations	—		—		—		—
Total	$	0.51	$	0.38	$	0.96	$	(2.65)

Diluted income (loss) per share:
Continuing operations	$	0.51	$	0.38	$	0.95	$	(2.65)
Discontinued operations	—		—		—		—
Total	$	0.51	$	0.38	$	0.95	$	(2.65)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	Three Months Ended June 30,			Nine Months Ended June 30,
in thousands	2020	2019	2020	2019
Stock options	372	406	390	529
Time-based restricted stock	286	94	49	643
Performance-based restricted stock	—	—	—	796

Other Liabilities (Tables)

9 Months Ended

Jun. 30, 2020

Other Liabilities Disclosure [Abstract]

Schedule of other liabilities

Other liabilities include the following as of June 30, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019

Accrued bonus and deferred compensation	$	37,515	$	36,237
Customer deposits	16,293		11,539
Accrued interest	15,748		12,767
Accrued warranty expense	12,292		13,388

Litigation accrual	3,570		3,420
Income tax liabilities	1,177		648
Other	24,035		31,430
Total	$	110,630	$	109,429

Segment Information (Tables)

9 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Schedule of segment reporting information

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


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Revenue
West	$	303,500	$	238,723	$	825,629	$	658,097
East	108,126		118,356		297,107		301,168
Southeast	121,486		125,659		317,593		346,773
Total revenue	$	533,112	$	482,738	$	1,440,329	$	1,306,038


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Operating income (loss) ^(a)
West	$	42,574	$	29,268	$	106,128	$	(53,489)
East	12,423		11,247		29,257		23,571
Southeast	11,787		8,043		23,757		16,747

Segment total	66,784		48,558		159,142		(13,171)
Corporate and unallocated ^(b)	(43,633)		(39,015)		(115,621)		(112,730)
Total operating income (loss)	$	23,151	$	9,543	$	43,521	$	(125,901)


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands	2020		2019		2020		2019
Depreciation and amortization
West	$	2,119	$	1,415	$	5,778	$	3,956
East	500		658		1,605		1,743
Southeast	638		776		1,878		2,117

Segment total	3,257		2,849		9,261		7,816
Corporate and unallocated ^(b)	523		393		1,573		1,096
Total depreciation and amortization	$	3,780	$	3,242	$	10,834	$	8,912

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


	Nine Months Ended
	June 30,
in thousands	2020		2019
Capital Expenditures
West	$	3,606	$	8,172
East	1,699		2,122
Southeast	1,852		2,564

Corporate and unallocated	353		3,507
Total capital expenditures	$	7,510	$	16,365

The following table presents assets by segment as of June 30, 2020 and September 30, 2019:


in thousands	June 30, 2020		September 30, 2019
Assets
West	$	720,268	$	751,110
East	317,228		286,340
Southeast	340,654		359,431
Corporate and unallocated ^(a)	624,013		560,763
Total assets	$	2,002,163	$	1,957,644

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

Discontinued Operations (Tables)

9 Months Ended

Jun. 30, 2020

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	2020		2019		2020		2019
Total revenue	$	—	$	—	$	—	$	55
Home construction and land sales expenses	62		6		47		45

Gross (loss) profit	(62)		(6)		(47)		10

General and administrative expenses	43		23		133		90

Operating loss	(105)		(29)		(180)		(80)
Equity in loss of unconsolidated entities	—		—		—		(1)
Other expense, net	—		(1)		(1)		(2)
Loss from discontinued operations before income taxes	(105)		(30)		(181)		(83)
Benefit from income taxes	(23)		(7)		(40)		(19)
Loss from discontinued operations, net of tax	$	(82)	$	(23)	$	(141)	$	(64)

- 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.

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-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Description of Business (Details)	Jun. 30, 2020 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

Basis of Presentation and Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended	6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Authorized amount repurchase of common stock							$ 50,000,000.0
Share repurchases	$ 10,620,000	$ 3,300,000	$ 24,000,000.0	$ 3,327,000	$ 34,624,000	$ 34,600,000
Completed common stock repurchase (in shares)		362	2,200
Average price per share (in dollars per share)		$ 9.20	$ 10.89
Remaining authorized repurchase amount				$ 12,000,000.0

Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 533,112	$ 482,738	$ 1,440,329	$ 1,306,038
Customer deposits	16,293		16,293		$ 11,539
Contract with customer, liability, revenue recognized	600		10,600
Homebuilding revenue
Disaggregation of Revenue [Line Items]
Total revenue	532,465	482,316	1,437,850	1,304,243
Land sales and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 647	$ 422	$ 2,479	$ 1,795

Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Oct. 01, 2019	Sep. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 14,060		$ 0
Operating lease liabilities	16,292		$ 0
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	13,895	$ 13,900
Operating lease liabilities	$ 16,028	$ 16,000

Supplemental Cash Flow Information - Supplemental Disclosure of Non-cash Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Oct. 01, 2019	Sep. 30, 2019
Cash and Cash Equivalents [Line Items]
Operating lease right-of-use assets	$ 14,060			$ 0
Operating lease liabilities	16,292			0
Supplemental disclosure of cash activity:
Interest payments	60,678	$ 64,648
Income tax payments	2	568
Tax refunds received	315	12
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	152,266	68,491		106,741
Restricted cash	13,086	16,293		$ 16,053
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	165,352	$ 84,784
Accounting Standards Update 2016-02
Cash and Cash Equivalents [Line Items]
Operating lease right-of-use assets	13,895		$ 13,900
Operating lease liabilities	$ 16,028		$ 16,000

Investments in Unconsolidated Entities - Outstanding Borrowings of Unconsolidated Entities and Equity in Income (Loss) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Investment in unconsolidated entities	$ 4,044	$ 3,962
Total equity of unconsolidated entities	5,734	9,969
Total outstanding borrowings of unconsolidated entities	$ 15,556	$ 12,658

Investments in Unconsolidated Entities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Impairment of unconsolidated entity investments	$ 0	$ 0	$ 0	$ 0
Schedule of Equity Method Investments [Line Items]
Equity in income of unconsolidated entities	4	299	138	316
Equity in income of unconsolidated entities	0	$ 0	0	$ 0
Financial Guarantee
Schedule of Equity Method Investments [Line Items]
Outstanding guarantees	$ 0		$ 0		$ 0

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018
Inventory Disclosure [Abstract]
Homes under construction	$ 607,731		$ 507,542
Development projects in progress	647,583		738,201
Land held for future development	28,531		28,531
Land held for sale	16,863		12,662
Capitalized interest	132,096	$ 134,693	136,565	$ 148,825	$ 144,756	$ 144,645
Model homes	78,756		80,747
Total owned inventory	$ 1,511,560		$ 1,504,248

Inventory - Narrative (Details)	3 Months Ended		9 Months Ended
Inventory - Narrative (Details)	Jun. 30, 2020 USD ($) home Community lot numberOfContracts	Jun. 30, 2019 USD ($) Community	Jun. 30, 2020 USD ($) home Community	Jun. 30, 2019 USD ($) Community	Sep. 30, 2019 USD ($) home
Real Estate Properties [Line Items]
Number of substantially completed homes unsold \| home	183		183		238
Total value of substantially completed homes \| $	$ 61,700,000		$ 61,700,000		$ 82,200,000
Threshold number of homes below a minimum threshold of profitability \| home			10
Number of communities on watch list	5	5	5	5
Lots held for sale \| lot	88
Impairment of land held for sale \| $	$ 1,257,000	$ 0	$ 1,257,000	$ 38,588,000
Impairment charges, abandonments \| $	$ 1,009,000	$ 0	$ 1,009,000	$ 0
Number of terminated land contracts under acquisition \| numberOfContracts	4
West Segment
Real Estate Properties [Line Items]
Number of communities on watch list	2	3	2	3
Southeast Segment
Real Estate Properties [Line Items]
Number of communities on watch list	3	1	3	1
East Segment
Real Estate Properties [Line Items]
Number of communities on watch list		1		1
West And Southeast Segment [Member]
Real Estate Properties [Line Items]
Number of communities under development	2

Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Projects in progress	$ 1,466,166	$ 1,463,055
Land held for future development	28,531	28,531
Land held for sale	16,863	12,662
Total owned inventory	1,511,560	1,504,248
Corporate and unallocated
Segment Reporting Information [Line Items]
Projects in progress	191,968	192,287
Land held for future development	0	0
Land held for sale	0	0
Total owned inventory	191,968	192,287
West Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	687,707	723,094
Land held for future development	3,483	3,483
Land held for sale	6,048	5,160
Total owned inventory	697,238	731,737
East Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	284,821	228,937
Land held for future development	14,077	14,077
Land held for sale	3,377	4,104
Total owned inventory	302,275	247,118
Southeast Segment \| Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	301,670	318,737
Land held for future development	10,971	10,971
Land held for sale	7,438	3,398
Total owned inventory	$ 320,079	$ 333,106

Inventory - Inventory Impairments and Lot Option Abandonment Charges, by Reportable Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Real Estate Properties [Line Items]
Impairment charges on projects in progress	$ 0	$ 0	$ 0	$ 110,030,000
Impairment of land held for sale	1,257,000	0	1,257,000	38,588,000
Impairment charges, abandonments	1,009,000	0	1,009,000	0
Inventory impairments and abandonments	2,266,000	0	2,266,000	148,618,000
Corporate and unallocated
Real Estate Properties [Line Items]
Impairment charges on projects in progress	0	0	0	16,260,000
Impairment of land held for sale	1,160,000	0	1,160,000	625,000
West Segment \| Operating Segments
Real Estate Properties [Line Items]
Impairment charges on projects in progress	0	0	0	92,912,000
Impairment of land held for sale	89,000	0	89,000	37,963,000
Impairment charges, abandonments	452,000	0	452,000	0
East Segment \| Operating Segments
Real Estate Properties [Line Items]
Impairment charges, abandonments	32,000	0	32,000	0
Southeast Segment \| Operating Segments
Real Estate Properties [Line Items]
Impairment charges on projects in progress	0	0	0	858,000
Impairment of land held for sale	8,000	0	8,000	0
Impairment charges, abandonments	$ 525,000	$ 0	$ 525,000	$ 0

Inventory - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Real Estate Properties [Line Items]
Deposits & Non-refundable Pre-acquisition Costs Incurred	$ 69,341	$ 78,202
Remaining Obligation	$ 384,892	$ 389,705

Interest - Schedule of Capitalized Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Capitalized interest in inventory, beginning of period	$ 134,693	$ 144,756	$ 136,565	$ 144,645
Interest incurred	23,012	26,782	66,839	77,506
Capitalized interest impaired	(792)	0	(792)	(13,907)
Interest expense not qualified for capitalization and included as other expense	(3,003)	(961)	(6,373)	(1,800)
Capitalized interest amortized to home construction and land sales expenses	(21,814)	(21,752)	(64,143)	(57,619)
Capitalized interest in inventory, end of period	$ 132,096	$ 148,825	$ 132,096	$ 148,825

Borrowings - Schedule of Long-term Debt (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019	Jul. 30, 2016
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (11,450,000)	$ (12,470,000)
Total debt, net	1,179,725,000	1,178,309,000
Senior Notes
Debt Instrument [Line Items]
Senior Unsecured Term Loan (Term Loan)	150,000,000	150,000,000
Unamortized debt issuance costs	(11,450,000)	(12,470,000)
Total debt, net	1,112,105,000	1,111,085,000
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Total debt, net	229,555,000	229,555,000
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Total debt, net	394,000,000	394,000,000
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029
Debt Instrument [Line Items]
Total debt, net	350,000,000	350,000,000
Junior Subordinated Notes
Debt Instrument [Line Items]
Total debt, net	67,620,000	66,070,000
Stated interest rate on debt instrument (percent)			7.987%
Unamortized accretion	33,153,000	34,703,000
Other Secured Notes payable
Debt Instrument [Line Items]
Total debt, net	0	1,154,000
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility	$ 0	$ 0
Senior Notes \| 6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	6.75%
Senior Notes \| 5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	5.88%
Senior Notes \| 7 1/4% Senior Notes Maturing October 2029
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	7.25%

Borrowings - Narrative (Details)	Sep. 09, 2019 USD ($)	Jul. 30, 2016	Jun. 30, 2020 USD ($)	Apr. 27, 2020 USD ($)	Apr. 26, 2020 USD ($)	Sep. 30, 2019 USD ($) lender	Sep. 01, 2019 USD ($)	May 31, 2018 USD ($)	Jan. 31, 2010 USD ($)
Line of Credit Facility [Abstract]
Amount of available borrowings under the secured revolving credit facility			$ 250,000,000.0
Senior Notes [Abstract]
Ownership interest In guarantor subsidiaries			100.00%
Junior Subordinated Notes
Unsecured Debt [Abstract]
Stated interest rate on debt instrument (percent)		7.987%
Junior Subordinated Notes [Abstract]
Effective period of debt instrument interest rate		10 years
Face amount modification									$ 75,000,000.0
Unamortized accretion			$ 33,153,000			$ 34,703,000
Revolving Credit Facility
Line of Credit Facility [Abstract]
Credit facility borrowing capacity							$ 250,000,000.0
Collateral ratio				2.50	4.00
After-acquired property exclusionary restrictions				2.5	4.0
Covenant, aggregate amount of other investments				$ 50,000,000.0	$ 100,000,000.0
Number of lenders \| lender						4
Borrowings outstanding			0			$ 0
Letters of credit secured using cash collateral			0			0
Letter of Credit, Cash Secured
Line of Credit Facility [Abstract]
Letters of credit secured using cash collateral			11,200,000			$ 14,100,000
Standby Letters of Credit \| Standby Letters for Credit Facility
Line of Credit Facility [Abstract]
Credit facility borrowing capacity								$ 50,000,000.0
Letters of credit secured using cash collateral			$ 37,500,000
Standby Letters of Credit \| Backstop Standby Letters of Credit
Line of Credit Facility [Abstract]
Credit facility borrowing capacity								$ 40,000,000.0
Junior Subordinated Notes
Junior Subordinated Notes [Abstract]
Weighted average fixed interest rate of debt (percent)			4.25%
Senior Notes \| Senior Unsecured Term Loans September 2022
Unsecured Debt [Abstract]
Aggregate principal amount of debt	$ 150,000,000.0
Periodic payment	$ 50,000,000.0
Stated interest rate on debt instrument (percent)	4.875%

Borrowings - Debt Redemption (Details) - Senior Notes	9 Months Ended
Borrowings - Debt Redemption (Details) - Senior Notes	Jun. 30, 2020
6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	6.75%
Percentage of principal amount redeemed	35.00%
Redemption price (as a percentage)	106.75%
Percentage of principal amount outstanding after redemption	65.00%
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)	5.88%
Percentage of principal amount redeemed	35.00%
Redemption price (as a percentage)	105.875%
Percentage of principal amount outstanding after redemption	65.00%
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%
7 1/4% Senior Notes Maturing October 2029
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	7.25%
Percentage of principal amount redeemed	35.00%
Redemption price (as a percentage)	107.25%
Percentage of principal amount outstanding after redemption	65.00%
7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	103.625%
7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.417%
7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.208%
7 1/4% Senior Notes Maturing October 2029 \| Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%

Operating Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Leases [Abstract]
Operating lease expense	$ 1,100	$ 3,400
Operating lease payments	1,100	3,500
Increase (decrease) operating leases right-of-use asset	30	3,100
Increase (decrease) operating leases liability	$ 30	$ 3,100

Operating Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details)	Jun. 30, 2020
Leases [Abstract]
Weighted-average remaining lease term	5 years 2 months 12 days
Weighted-average discount rate	4.87%

Operating Leases - Maturity Analysis of the Annual Undiscounted Cash Flows (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020	$ 1,213
2021	4,573
2022	3,743
2023	2,933
2024	1,818
Thereafter	4,270
Total lease payments	18,550
Less: imputed interest	2,258
Total operating lease liabilities	$ 16,292	$ 0

Operating Leases - Future Minimum Rental Commitments (Details) $ in Millions	Sep. 30, 2019 USD ($)
Leases [Abstract]
Total future minimum rental commitments	$ 20.2
2020	4.7
2021	4.5
2022	3.6
2023	2.9
2024	1.8
Thereafter	$ 2.6

Contingencies - Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Contingencies - Warranty (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
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	$ 12,058	$ 12,585	$ 13,388	$ 15,331
Accruals for warranties issued	2,798	2,650	7,170	7,504
Changes in liability related to warranties existing in prior periods	(285)	157	(1,369)	(1,811)
Payments made	(2,279)	(3,155)	(6,897)	(8,787)
Balance at end of period	$ 12,292	$ 12,237	$ 12,292	$ 12,237

Contingencies - Litigation and Other Matters (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 Community	Jun. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)
Legal Reserve
Loss Contingencies [Line Items]
Accrued amounts for litigation and other contingent liabilities		$ 3.6	$ 3.4
Performance Bonds
Loss Contingencies [Line Items]
Letters of credit secured using cash collateral		48.7
Outstanding performance bonds		$ 255.6
CALIFORNIA
Loss Contingencies [Line Items]
Number of communities \| Community	15

Fair Value Measurements - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Fair Value Measurements - Narrative (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Impairment charges on projects in progress	$ 0	$ 0	$ 0	$ 110,030,000
Impairment charge			1,100,000	131,700,000
Impairment of land held for sale	$ 1,257,000	$ 0	$ 1,257,000	$ 38,588,000

Fair Value Measurements - Fair Value Assets Measured on a Non-recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 2,266	$ 1,970
Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	0	0
Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	2,266	1,970
Fair Value, Measurements, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	0	0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress		84,982
Land held for sale	6,240	5,207
Fair Value, Measurements, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress		0
Land held for sale	0	0
Fair Value, Measurements, Nonrecurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress		0
Land held for sale	0	0
Fair Value, Measurements, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress		84,982
Land held for sale	$ 6,240	$ 5,207

Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 1,179,725	$ 1,177,155
Carrying Amount \| Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,112,105	1,111,085
Carrying Amount \| Junior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	67,620	66,070
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,149,738	1,181,081
Fair Value \| Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,082,118	1,115,011
Fair Value \| Junior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 67,620	$ 66,070

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Expense (benefit) from income taxes	$ 4,981	$ (2,180)	$ 8,940	$ (44,260)
Tax credit			800	9,800
Inventory impairments and abandonments	$ 2,266	$ 0	$ 2,266	$ 148,618
Deferred tax assets, tax credit carryforwards					$ 4,600	$ 4,600

Stock-based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 1,659	$ 3,699	$ 4,869	$ 7,993

Stock-based Compensation - Stock Options Outstanding (Details) - Stock Options	9 Months Ended
	Jun. 30, 2020 $ / shares shares
Shares
Outstanding at beginning of period (shares) \| shares	523,754
Granted (shares) \| shares	950
Exercised (shares) \| shares	(126,492)
Forfeited (shares) \| shares	(3,088)
Outstanding at end of period (shares) \| shares	395,124
Exercisable at end of period (shares) \| shares	365,348
Vested or expected to vest in the future (shares) \| shares	394,255
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 14.34
Granted (in dollars per share) \| $ / shares	10.67
Exercised (in dollars per share) \| $ / shares	11.05
Forfeited (in dollars per share) \| $ / shares	9.70
Outstanding at end of period (in dollars per share) \| $ / shares	15.43
Exercisable at end of period (in dollars per share) \| $ / shares	15.62
Vested or expected to vest in the future (in dollars per share) \| $ / shares	$ 15.44

Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Nov. 30, 2019	Jun. 30, 2020	Sep. 30, 2019
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs related to non-vested stock options award		$ 56	$ 100
Weighted average period to recognize remaining cost		6 months 21 days
Performance-Based Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Performance based restricted stock settled in cash payment (in shares)	135,337
Cash settlement of performance-based restricted stock	$ 2,100
Nonvested Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period to recognize remaining cost		1 year 9 months 25 days
Unrecognized compensation costs related to non-vested stock awards		$ 9,500	$ 9,000

Stock-based Compensation - Restricted Stock Awards (Details)	9 Months Ended
	Jun. 30, 2020 shares
Restricted Stock
Shares
Beginning of period (in shares)	1,390,421
Granted (in shares)	587,702
Vested (in shares)	(539,198)
Forfeited (in shares)	(17,674)
End of period (in shares)	1,421,251
Performance-Based Restricted Stock Awards
Shares
Beginning of period (in shares)	778,814
Granted (in shares)	260,131
Vested (in shares)	(242,921)
Forfeited (in shares)	0
End of period (in shares)	796,024
Time Based Restricted Stock Awards
Shares
Beginning of period (in shares)	611,607
Granted (in shares)	327,571
Vested (in shares)	(296,277)
Forfeited (in shares)	(17,674)
End of period (in shares)	625,227

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, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
(Loss) income from continuing operations	$ 15,270	$ 11,625	$ 28,689	$ (81,885)
Loss from discontinued operations, net of tax	(82)	(23)	(141)	(64)
Net income (loss)	$ 15,188	$ 11,602	$ 28,548	$ (81,949)
Denominator:
Basic weighted-average shares (in shares)	29,597	30,250	29,738	30,926
Dilutive effect of restricted stock awards (in shares)	76	225	267	0
Dilutive effect of stock options (in shares)	1	14	9	0
Dilutive weighted-average shares (in shares)	29,674	30,489	30,014	30,926
Basic income (loss) per share:
Continuing Operations (in dollars per share)	$ 0.51	$ 0.38	$ 0.96	$ (2.65)
Discontinued operations (in dollars per share)	0	0	0	0
Total (in dollars per share)	0.51	0.38	0.96	(2.65)
Diluted income (loss) per share:
Continuing operations (in dollars per share)	0.51	0.38	0.95	(2.65)
Discontinued operations (in dollars per share)	0	0	0	0
Total (in dollars per share)	$ 0.51	$ 0.38	$ 0.95	$ (2.65)

Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock options
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	372	406	390	529
Time-based restricted stock
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	286	94	49	643
Performance-based restricted stock
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0	0	796

Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018
Other Liabilities Disclosure [Abstract]
Accrued bonus and deferred compensation	$ 37,515		$ 36,237
Customer deposits	16,293		11,539
Accrued interest	15,748		12,767
Accrued warranty expense	12,292	$ 12,058	13,388	$ 12,237	$ 12,585	$ 15,331
Litigation accrual	3,570		3,420
Income tax liabilities	1,177		648
Other	24,035		31,430
Total	$ 110,630		$ 109,429

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2020 USD ($) state region segment	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) state region	Jun. 30, 2019 USD ($)	Sep. 30, 2019 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	$ 533,112	$ 482,738	$ 1,440,329	$ 1,306,038
Operating income	23,151	9,543	43,521	(125,901)
Depreciation and amortization	3,780	3,242	10,834	8,912
Capital expenditures			7,510	16,365
Assets	2,002,163		2,002,163		$ 1,957,644
Inventory Write-down			1,100	131,700
Write off capitalized interest and capitalized indirect cost			1,200	16,900
Operating Segments
Segment Reporting Information [Line Items]
Operating income	66,784	48,558	159,142	(13,171)
Depreciation and amortization	3,257	2,849	9,261	7,816
Corporate and unallocated
Segment Reporting Information [Line Items]
Operating income	(43,633)	(39,015)	(115,621)	(112,730)
Depreciation and amortization	523	393	1,573	1,096
Capital expenditures			353	3,507
Assets	624,013		624,013		560,763
West Segment
Segment Reporting Information [Line Items]
Revenue	303,500	238,723	825,629	658,097
West Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	42,574	29,268	106,128	(53,489)
Depreciation and amortization	2,119	1,415	5,778	3,956
Capital expenditures			3,606	8,172
Assets	720,268		720,268		751,110
East Segment
Segment Reporting Information [Line Items]
Revenue	108,126	118,356	297,107	301,168
East Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	12,423	11,247	29,257	23,571
Depreciation and amortization	500	658	1,605	1,743
Capital expenditures			1,699	2,122
Assets	317,228		317,228		286,340
Southeast Segment
Segment Reporting Information [Line Items]
Revenue	121,486	125,659	317,593	346,773
Southeast Segment \| Operating Segments
Segment Reporting Information [Line Items]
Operating income	11,787	8,043	23,757	16,747
Depreciation and amortization	638	$ 776	1,878	2,117
Capital expenditures			1,852	$ 2,564
Assets	$ 340,654		$ 340,654		$ 359,431

Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations, net of tax	$ (82)	$ (23)	$ (141)	$ (64)
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenue	0	0	0	55
Home construction and land sales expenses	62	6	47	45
Gross (loss) profit	(62)	(6)	(47)	10
General and administrative expenses	43	23	133	90
Operating loss	(105)	(29)	(180)	(80)
Equity in loss of unconsolidated entities	0	0	0	(1)
Other expense, net	0	(1)	(1)	(2)
Loss from discontinued operations before income taxes	(105)	(30)	(181)	(83)
Benefit from income taxes	(23)	(7)	(40)	(19)
Loss from discontinued operations, net of tax	$ (82)	$ (23)	$ (141)	$ (64)