0000915840-22-000035 | 10-K | XBRL Viewer

Discontinued Operations (Tables)

12 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of results of discontinued operations

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020

Home construction and land sales expenses(a)	$	(5)	$	119	$	1,245

Gross profit (loss)	5		(119)		(1,245)

General and administrative expenses	23		85		173

Operating loss	(18)		(204)		(1,418)

Other income, net	—		—		19
Loss from discontinued operations before income taxes	(18)		(204)		(1,399)
Benefit from income taxes	(4)		(45)		(309)
Loss from discontinued operations, net of tax	$	(14)	$	(159)	$	(1,090)

(a) Home construction and land sales expenses for the year ended September 30, 2020 include a $1.3 million estimated litigation settlement accrual relating to a case regarding past construction defects in our discontinued operations. Pursuant to the settlement agreement, the Company paid $1.4 million during fiscal 2021.

- 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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+ Details

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) home	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)
Summary of Significant Accounting Policies [Line Items]
Threshold number of homes below a minimum threshold of profitability \| home	10
Measurement threshold of likelihood of being realized (percent)	50.00%
Income tax, refund claim				$ 4,600
Alternative minimum tax credit			$ 4,600	$ 9,200
Income tax receivable, alternative minimum tax			9,200
Customer deposits	$ 34,270	$ 28,526
Contract with customer, liability, revenue recognized	26,300
Refunded by buyer	1,200
Advertising costs	$ 14,400	$ 14,000	$ 15,900
Minimum
Summary of Significant Accounting Policies [Line Items]
Estimated time to develop, sell, construct and close all homes (in years)	3 years
Estimated future warranty costs as a percentage or revenue (percent)	0.30%
Maximum
Summary of Significant Accounting Policies [Line Items]
Estimated time to develop, sell, construct and close all homes (in years)	5 years
Estimated future warranty costs as a percentage or revenue (percent)	1.00%

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Oct. 01, 2019
Supplemental disclosure of non-cash activity:
Operating lease right-of-use assets	$ 9,795	$ 12,344
Operating lease liabilities	11,208	14,154
Increase in operating leases right-of-use assets	835	2,905	$ 3,104
Increase in operating leases liabilities	835	2,905	3,104
Supplemental disclosure of cash activity:
Interest payments	70,132	74,171	71,888
Income tax payments	4,216	3,462	546
Tax refunds received	0	1,078	315
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	214,594	246,715	327,693
Restricted cash	37,234	27,428	14,835
Cash, Cash Equivalents, and Restricted Cash	251,828	274,143	342,528
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Supplemental disclosure of non-cash activity:
Derecognition of investment in unconsolidated entities	3,641	0	0
Accounting Standards Update 2016-02
Supplemental disclosure of non-cash activity:
Operating lease right-of-use assets	0	0	13,895	$ 13,900
Operating lease liabilities	$ 0	$ 0	$ 16,028	$ 16,000

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Tax Credit Carryforward [Line Items]
Federal net operating loss carryforwards	$ 61,000
Federal and state net operating loss carryforwards	149,299	$ 177,611
State net operating loss carryforwards	33,900
Valuation allowance	(25,396)	(29,059)
Pre-tax income required to realize deferred tax assets prior to expiration	907,100
Unrecognized tax benefits	3,358	$ 3,358	$ 3,441	$ 3,473
Federal tax authority
Tax Credit Carryforward [Line Items]
Federal and state net operating loss carryforwards	$ 57,800

Segment Information (Tables)

12 Months Ended

Sep. 30, 2022

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:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Revenue
West	$	1,331,553	$	1,118,578	$	1,183,339
East	560,747		569,835		477,624
Southeast	424,688		451,890		466,114

Total revenue	$	2,316,988	$	2,140,303	$	2,127,077


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Operating income
West	$	253,961	$	181,303	$	161,786
East	102,146		84,630		56,319
Southeast	68,726		57,581		40,746

Segment total	424,833		323,514		258,851
Corporate and unallocated(a)	(152,342)		(176,645)		(179,744)
Total operating income	$	272,491	$	146,869	$	79,107

(a) 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.


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Depreciation and amortization
West	$	8,178	$	7,250	$	8,227
East	1,649		2,207		2,458
Southeast	1,843		2,552		2,857

Segment total	11,670		12,009		13,542
Corporate and unallocated(a)	1,690		1,967		2,098
Total depreciation and amortization	$	13,360	$	13,976	$	15,640

(a) Represents depreciation and amortization related to assets held by our corporate functions that benefit all segments.

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Capital expenditures
West	$	7,755	$	6,924	$	5,063
East	1,208		1,549		2,237
Southeast	1,215		1,447		2,985

Corporate and unallocated	4,870		4,725		357
Total capital expenditures	$	15,048	$	14,645	$	10,642

The following table presents assets by segment as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Assets
West	$	995,339	$	819,317
East	334,323		286,133
Southeast	305,443		296,581

Corporate and unallocated(a)	616,858		676,779
Total assets	$	2,251,963	$	2,078,810

(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.

Operating Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details)	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Weighted-average remaining lease term	4 years 3 months 18 days	4 years 9 months 18 days
Weighted-average discount rate	4.43%	4.56%

Stock-Based Compensation - Fair Value Assumptions (Details) - Performance-based restricted stock - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum (percentage)	41.00%	26.10%	21.20%
Expected volatility, maximum (percentage)	89.00%	67.00%	54.80%
Risk-free interest rate (percentage)	0.81%	0.23%	1.61%
Dividend yield	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant-date stock price (in dollars per share)	$ 21.40	$ 14.07	$ 15.62
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant-date stock price (in dollars per share)	$ 142.99	$ 4,318.03	$ 3,595.17

Stock-Based Compensation - Intrinsic and Fair Market Value of Options (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share-Based Payment Arrangement [Abstract]
Intrinsic value of options exercised	$ 6	$ 1,402	$ 587
Fair market value of options vested	$ 5	$ 173	$ 144

Basis of Presentation and Summary of Significant Accounting Policies - Property Plant and Equipment (Details)	12 Months Ended
	Sep. 30, 2022
Buildings and improvements \| Minimum
Summary of Significant Accounting Policies [Line Items]
Estimated useful life	25 years
Buildings and improvements \| Maximum
Summary of Significant Accounting Policies [Line Items]
Estimated useful life	30 years
Information systems
Summary of Significant Accounting Policies [Line Items]
Estimated useful life	5 years
Furniture, fixtures and computer and office equipment \| Minimum
Summary of Significant Accounting Policies [Line Items]
Estimated useful life	3 years
Furniture, fixtures and computer and office equipment \| Maximum
Summary of Significant Accounting Policies [Line Items]
Estimated useful life	7 years

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

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Schedule of interests in lot option agreements

The following table provides a summary of our interests in lot option agreements as of September 30, 2022 and 2021:


in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred(a)		Remaining Obligation, Net of Cash Deposits
As of September 30, 2022


Unconsolidated lot option agreements	$	142,433	$	827,600

As of September 30, 2021


Unconsolidated lot option agreements	$	114,688	$	676,149

(a) Amount is included as a component of land under development within our owned inventory in the consolidated balance sheet.

Schedule of estimated useful lives

Depreciation is computed on a straight-line basis based on estimated useful lives as follows:


Asset Class						Useful Lives
Buildings and improvements						25 - 30 years

Information systems						Lesser of estimated useful life of the asset or 5 years
Furniture, fixtures and computer and office equipment						3 - 7 years
Model and sales office improvements						Lesser of estimated useful life of the asset or estimated life of the community
Leasehold improvements						Lesser of the lease term or the estimated useful life of the asset

The following table presents our property and equipment as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Model furnishings and sales office improvements	$	22,544	$	19,617
Information systems	23,074		18,628
Furniture, fixtures and office equipment	11,019		10,613
Leasehold improvements	4,124		4,279
Buildings and improvements	1,671		1,671
Property and equipment, gross	62,432		54,808
Less: Accumulated depreciation	(37,866)		(31,923)
Property and equipment, net	$	24,566	$	22,885

Schedule of revenue recognition

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


	Fiscal Year Ended
	September 30,
in thousands	2022		2021		2020
Homebuilding revenue	$	2,302,520	$	2,127,700	$	2,116,910
Land sales and other revenue	14,468		12,603		10,167
Total revenue(a)	$	2,316,988	$	2,140,303	$	2,127,077

(a) Please see Note 18 for total revenue disaggregated by reportable segment.

Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of allocation of share-based compensation costs by plan

The following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2022, 2021 and 2020, respectively.


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Stock options expense	$	1	$	25	$	133
Restricted stock awards expense	8,477		12,142		9,903
Stock-based compensation expense	$	8,478	$	12,167	$	10,036

Schedule of assumptions for stock option activity

We used the following valuation assumptions for stock options granted for the periods presented:


	Fiscal Year Ended September 30,
	2022			2020
Expected life of options	5.7 years			5.7 years
Expected volatility	55.02		%	51.52		%
Expected dividends	—			—
Weighted-average risk-free interest rate	1.88		%	0.43		%
Weighted-average fair value	$	8.54		$	4.99

For the Company and each member of the peer group, the

following inputs were used, as applicable, in the Monte Carlo valuation model to determine the fair value as of the grant date

for performance-based restricted stock granted in each of the fiscal years ended.


	Fiscal Year Ended September 30,
	2022		2021		2020
Expected volatility range	41.0% - 89.0%		26.1% - 67.0%		21.2% - 54.8%
Risk-free interest rate	0.81	%	0.23	%	1.61	%
Dividend yield	—		—		—
Grant-date stock price range	$21.40 - $142.99		$14.07 - $4,318.03		$15.62 - $3,595.17

Schedule of stock options activity

A summary of stock option activity for the periods presented is as follows:


	2022			2021			2020
	Shares	Weighted- Average Exercise Price		Shares	Weighted- Average Exercise Price		Shares	Weighted- Average Exercise Price
Outstanding at beginning of period	114,259	$	17.89	392,465	$	15.47	523,754	$	14.34
Granted	236	16.58		—	—		950	10.67
Exercised	(988)	11.32		(278,206)	14.48		(128,921)	11.01
Expired	(86,000)	19.11		—	—		—	—

Forfeited	—	—		—	—		(3,318)	9.55
Outstanding at end of period	27,507	$	14.31	114,259	$	17.89	392,465	$	15.47
Exercisable at end of period	27,271	$	14.29	113,309	$	17.95	354,796	$	15.90

Schedule of stock options exercised and vested

Information pertaining to the intrinsic value of options exercised and the fair market value of options that vested is below:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Intrinsic value of options exercised	$	6	$	1,402	$	587
Fair market value of options vested	$	5	$	173	$	144

Schedule of nonvested stock awards and performance shares

Activity relating to all restricted stock awards for the periods presented is as follows:


	Year Ended September 30, 2022
	Performance-Based(a)			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	738,155	$	13.45	486,574	$	13.79	1,224,729	$	13.59
Granted	269,617	18.98		246,844	21.40		516,461	20.14
Vested	(552,417)	10.50		(286,182)	13.21		(838,599)	11.42
Forfeited	(19,209)	17.27		(35,194)	16.49		(54,403)	16.77
End of period	436,146	$	17.76	412,042	$	18.52	848,188	$	18.13

(a) Grant and vesting activity during the year ended September 30, 2022 include 177,759 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period.


	Year Ended September 30, 2021
	Performance-Based(a)			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	796,024	$	14.71	610,130	$	13.85	1,406,154	$	14.34
Granted	164,296	17.90		251,788	14.21		416,084	15.67
Vested	(222,165)	22.40		(346,856)	14.36		(569,021)	17.50
Forfeited	—	—		(28,488)	11.77		(28,488)	11.77
End of period	738,155	$	13.45	486,574	$	13.79	1,224,729	$	13.59

(a) Grant and vesting activity during the year ended September 30, 2021 include 60,930 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period.


	Year Ended September 30, 2020
	Performance-Based			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	778,814	$	13.60	611,607	$	12.11	1,390,421	$	16.53
Granted	260,131	16.98		327,571	15.29		587,702	16.04
Vested	(242,921)	13.60		(302,255)	11.89		(545,176)	12.65
Forfeited	—	—		(26,793)	13.79		(26,793)	13.79
End of period	796,024	$	14.71	610,130	$	13.85	1,406,154	$	14.34

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
ASSETS
Cash and cash equivalents	$ 214,594	$ 246,715
Restricted cash	37,234	27,428
Accounts receivable (net of allowance of $284 and $290, respectively)	35,890	25,685
Income tax receivable	9,606	9,929
Owned inventory	1,737,865	1,501,602
Investments in unconsolidated entities	964	4,464
Deferred tax assets, net	156,358	204,766
Property and equipment, net	24,566	22,885
Operating lease right-of-use assets	9,795	12,344
Goodwill	11,376	11,376
Other assets	13,715	11,616
Total assets	2,251,963	2,078,810
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	143,641	133,391
Operating lease liabilities	11,208	14,154
Other liabilities	174,388	152,351
Total debt (net of debt issuance costs of $7,280 and $8,983, respectively)	983,440	1,054,030
Total liabilities	1,312,677	1,353,926
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, 30,880,138 issued and outstanding and 31,294,198 issued and outstanding, respectively)	31	31
Paid-in capital	859,856	866,158
Retained earnings (accumulated deficit)	79,399	(141,305)
Total stockholders’ equity	939,286	724,884
Total liabilities and stockholders’ equity	$ 2,251,963	$ 2,078,810

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Sep. 30, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Preferred Stock The Company currently has no shares of preferred stock outstanding. Common Stock As of September 30, 2022, the Company had 63,000,000 shares of common stock authorized and 30,880,138 shares both issued and outstanding. Common Stock Repurchases In May 2022, the Company's Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. This newly authorized program replaced the prior share repurchase program authorized in the first quarter of fiscal 2019 of up to $50.0 million of common stock repurchases, pursuant to which $12.0 million of the capacity remained prior to the replacement of the program. As part of this new program, the Company repurchased 570 thousand shares of its common stock for $8.2 million at an average price per share of $14.33 during the year ended September 30, 2022 through open market transactions. No share repurchases were made during fiscal year 2021. During the year ended September 30, 2020, the Company repurchased approximately 362 thousand shares of its common stock for $3.3 million at an average price per share of $9.20 through open market transactions, including 10b5-1 plans. All shares have been retired upon repurchase. The aggregate reduction to stockholders’ equity related to share repurchases during the fiscal years ended September 30, 2022, 2021 and 2020 was $8.2 million, $0.0 million and $3.3 million, respectively. As of September 30, 2022, the remaining availability of the new share repurchase program was $41.8 million. The repurchase program has no expiration date. Dividends The indentures under which our Senior Notes were issued contain certain restrictive covenants, including limitations on our payment of dividends. There were no dividends paid during our fiscal 2022, 2021 or 2020. Section 382 Rights Agreement Our certificate of incorporation prohibits certain transfers of our common stock that could result in an ownership change as defined in Section 382. In addition, we are party to a rights agreement intended to act as a deterrent to any person desiring to acquire 4.95% or more of our common stock. These instruments are designed to preserve the value of certain tax assets associated with our net operating loss carryforwards, tax credits and built-in losses under Section 382. In February 2022, our stockholders approved an extension of these protective provisions in our certificate of incorporation and the rights agreement.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	22	142	375
Time-based restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0	46

Other Liabilities (Tables)

12 Months Ended

Sep. 30, 2022

Other Liabilities [Abstract]

Schedule of other liabilities

Other liabilities include the following as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Accrued compensations and benefits	$	57,781	$	54,606
Customer deposits	34,270		28,526
Accrued interest	22,723		22,835
Accrued warranty expenses	13,926		12,931
Litigation accruals	9,832		8,325
Income tax liabilities	320		—
Other	35,536		25,128
Total	$	174,388	$	152,351

Interest (Tables)

12 Months Ended

Sep. 30, 2022

Real Estate Inventory Capitalized Interest Costs [Abstract]

Schedule of capitalized interest costs

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Capitalized interest in inventory, beginning of period	$	106,985	$	119,659	$	136,565
Interest incurred	74,161		77,397		87,224
Capitalized interest impaired	(439)		—		(792)
Interest expense not qualified for capitalization and included as other expense(a)	—		(2,781)		(8,468)
Capitalized interest amortized to home construction and land sales expenses(b)	(71,619)		(87,290)		(94,870)
Capitalized interest in inventory, end of period	$	109,088	$	106,985	$	119,659

(a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale.

(b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors.

Interest (Details) - USD ($) $ in Thousands	12 Months Ended
Interest (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Capitalized interest in inventory, beginning of period	$ 106,985	$ 119,659	$ 136,565
Interest incurred	74,161	77,397	87,224
Capitalized interest impaired	(439)	0	(792)
Interest expense not qualified for capitalization and included as other expense	0	(2,781)	(8,468)
Capitalized interest amortized to home construction and land sales expenses	(71,619)	(87,290)	(94,870)
Capitalized interest in inventory, end of period	$ 109,088	$ 106,985	$ 119,659

Contingencies

12 Months Ended

Sep. 30, 2022

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.

Warranty reserves are included in other liabilities within the consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review includes a quarterly analysis of the historical data and trends in warranty expense by division. An analysis by division allows us to consider market specific factors such as warranty experience, the number of home closings, the prices of homes, product mix, and other data in estimating warranty reserves. In addition, the analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in historical data and trends that may need to be separately estimated based on management's judgment of the ultimate cost of repair for that specific issue. While estimated warranty liabilities are adjusted each reporting period based on the results of our quarterly analyses, we may not accurately predict actual warranty costs, which could lead to significant changes in the reserve.

In addition, we maintain third-party insurance, subject to applicable self-insured retentions, for most construction defects that we encounter in the normal course of business. We believe that our warranty and litigation accruals and third-party insurance are adequate to cover the ultimate resolution of our potential liabilities associated with known and anticipated warranty and construction-defect related claims and litigation. However, there can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers; that we will be able to renew our insurance coverage or renew it at reasonable rates; that we will not be liable for damages, the cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence, or building related claims; or that claims will not arise out of events or circumstances not covered by insurance and/or not subject to effective indemnification agreements with our subcontractors.

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Balance at beginning of period	$	12,931	$	13,052	$	13,388
Accruals for warranties issued(a)	12,711		10,963		10,910
Changes in liability related to warranties existing in prior periods	382		864		(1,352)
Payments made	(12,098)		(11,948)		(9,894)
Balance at end of period	$	13,926	$	12,931	$	13,052

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

Insurance Recoveries

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

Litigation

In the normal course of business, we and certain of our subsidiaries are subject to various lawsuits and have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance.

We 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.

We have an accrual of $9.8 million and $8.3 million in other liabilities on our consolidated balance sheets related to litigation matters as of September 30, 2022 and 2021, respectively.

Surety Bonds and Letters of Credit

We had outstanding letters of credit and surety bonds of $35.2 million and $279.6 million, respectively, as of September 30, 2022, related principally to our obligations to local governments to construct roads and other improvements in various developments.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 220,704	$ 122,021	$ 52,226
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,360	13,976	15,640
Stock-based compensation expense	8,478	12,167	10,036
Inventory impairments and abandonments	2,963	853	2,903
Deferred and other income tax expense	53,267	21,501	17,664
Gain on sale of fixed assets	(332)	(392)	(335)
Change in allowance for doubtful accounts	(6)	(68)	54
Equity in income of unconsolidated entities	(521)	(594)	(347)
Cash distributions of income from unconsolidated entities	380	132	306
(Gain) loss on extinguishment of debt, net	(309)	2,025	0
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(10,199)	(5,800)	6,524
Decrease in income tax receivable	0	460	315
(Increase) decrease in inventory	(231,445)	(147,511)	154,865
(Increase) decrease in other assets	(2,620)	(1,922)	3
Increase in trade accounts payable	10,250	1,199	1,040
Increase in other liabilities	17,104	13,609	28,201
Net cash provided by operating activities	81,074	31,656	289,095
Cash flows from investing activities:
Capital expenditures	(15,048)	(14,645)	(10,642)
Proceeds from sale of fixed assets	339	456	478
Net cash used in investing activities	(14,709)	(14,189)	(10,164)
Cash flows from financing activities:
Repayment of debt	(73,900)	(82,476)	(51,150)
Repayment of borrowings from credit facility	(195,000)	0	(390,000)
Borrowings from credit facility	195,000	0	390,000
Debt issuance costs	0	(901)	(202)
Repurchase of common stock	(8,154)	0	(3,327)
Tax payments for stock-based compensation awards	(6,631)	(3,044)	(2,686)
Stock option exercises and other financing activities	5	569	(1,832)
Net cash used in financing activities	(88,680)	(85,852)	(59,197)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(22,315)	(68,385)	219,734
Cash, cash equivalents, and restricted cash at beginning of period	274,143	342,528	122,794
Cash, cash equivalents, and restricted cash at end of period	$ 251,828	$ 274,143	$ 342,528

Borrowings

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Borrowings

The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2022 and 2021:


in thousands	Maturity Date	September 30, 2022		September 30, 2021
Senior Unsecured Term Loan	September 2022	$	—	$	50,000
6.750% Senior Notes (2025 Notes)	March 2025	211,195		229,555
5.875% Senior Notes (2027 Notes)	October 2027	357,255		363,255
7.250% Senior Notes (2029 Notes)	October 2029	350,000		350,000

Unamortized debt issuance costs		(7,280)		(8,983)
Total Senior Notes, net		911,170		983,827
Junior Subordinated Notes (net of unamortized accretion of $28,503 and $30,570 , respectively)	July 2036	72,270		70,203
Secured Revolving Credit Facility	February 2024(a)	—		—

Total debt, net		$	983,440	$	1,054,030

(a) The Secured Revolving Credit Facility was scheduled to mature in February 2024; however, it was terminated early in conjunction with the Company entering into the new Senior Unsecured Revolving Credit Facility. Refer to below for further discussion.

As of September 30, 2022, the future maturities of our borrowings were as follows:


Fiscal Year Ended September 30,
in thousands
2023	$	—
2024	—
2025	211,195
2026	—
2027	357,255
Thereafter	450,773
Total	$	1,019,223

Secured Revolving Credit Facility

The Secured Revolving Credit Facility provides working capital and letter of credit capacity of $250.0 million. The Facility allows us to issue letters of credit against the undrawn capacity. Subject to our option to cash collateralize our obligations under the Facility upon certain conditions, our obligations under the Facility were secured by liens on substantially all of our personal property and a significant portion of our owned real property. We also pledged approximately $1.06 billion of inventory assets to the Facility to collateralize potential future borrowings or letters of credit (in addition to the letters of credit already issued under the Facility, if any).

As of September 30, 2022 and 2021, no borrowings were outstanding under the Facility. As of September 30, 2022, we had letters of credit outstanding of $5.5 million under the Facility, resulting in a remaining capacity of $244.5 million. We had no letters of credit outstanding under the Facility as of September 30, 2021. The Facility requires compliance with certain covenants, including negative covenants and financial covenants. As of September 30, 2022, the Company believes it was in compliance with all such covenants.

New Senior Unsecured Revolving Credit Facility

On October 13, 2022, the Company entered into a Senior Unsecured Revolving Credit Facility (the “New Unsecured Facility”). The New Unsecured Facility replaces the Secured Revolving Credit Facility, and the Company expects to use the proceeds from the New Unsecured Facility for general corporate purposes.

The New Unsecured Facility provides for a revolving credit facility with borrowing capacity up to $265.0 million. The Company also will have the right from time to time to request to increase the size of the commitments under the New Unsecured Facility by up to $135.0 million for a maximum of $400.0 million. The New Unsecured Facility terminates on October 13, 2026 (the “Termination Date”), and the Company may borrow, repay and reborrow amounts under the New Unsecured Facility until the Termination Date.

Obligations of the Company under the New Unsecured Facility are jointly and severally guaranteed by certain of the Company’s existing and future direct and indirect subsidiaries, excluding, among others, certain specified unrestricted subsidiaries.

The New Unsecured Facility contains customary financial covenants, including (i) a maximum leverage ratio, (ii) a minimum liquidity test, (iii) a minimum interest coverage ratio and (iv) a minimum net worth test. In addition, the New Unsecured Facility contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit liens, asset sales and investments, in each case subject to negotiated exceptions and baskets. The New Unsecured Facility also contains representations and warranties and event of default provisions customary for a transaction of this type.

Letter of Credit Facilities

The Company has entered into stand-alone, cash-secured letter of credit agreements with banks to maintain pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Facility). As of September 30, 2022 and 2021, the Company had letters of credit outstanding under these additional facilities of $29.7 million and $21.8 million, respectively, all of which were secured by cash collateral in restricted accounts totaling $31.5 million and $22.3 million, respectively. The Company may enter into additional arrangements to provide additional 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 wholly 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, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes, but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture.

The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company believes it was in compliance with the covenants contained in the indentures of all of its Senior Notes as of September 30, 2022.

During the fiscal year ended September 30, 2022, we repurchased $6.0 million of our outstanding 2027 Notes and $18.4 million of our outstanding 2025 Notes using cash on hand, resulting in a gain on extinguishment of debt of $0.3 million.

During the fiscal year ended September 30, 2021, we repurchased $30.7 million of our outstanding 2027 Notes using cash on hand, resulting in a loss on extinguishment of debt of $2.0 million.

During the fiscal year ended September 30, 2020, we made no repurchases of Senior Notes and thus, no gain or loss on extinguishment of debt was recognized.

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

6.750% Senior Notes

March 2017

March 2025

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

5.875% Senior Notes

October 2017

October 2027

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

7.250% 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 and have an aggregate principal balance of $100.8 million as of September 30, 2022. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, which was a weighted-average of 5.23% as of September 30, 2022. The obligations relating to these notes were subordinated to the Facility and the Senior Notes, and they are now subordinated to the New Unsecured Facility and the Senior Notes. In January 2010, the Company restructured $75.0 million of these notes and recorded them at their then estimated fair value. Over the remaining life of the restructured notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of September 30, 2022, the unamortized accretion was $28.5 million and will be amortized over the remaining life of the restructured notes. The remaining $25.8 million of these notes are subject to the terms of the original agreement, have a floating interest rate equal to three-month LIBOR plus 2.45% per annum, resetting quarterly, and are redeemable in whole or in part at par value. The material terms of the $75.0 million restructured notes are identical to the terms of the original agreement except that the floating interest rate is subject to a floor of 4.25% and a cap of 9.25%. In addition, beginning on June 1, 2012, the Company has the option to redeem the $75.0 million principal balance in whole or in part at 75% of par value; beginning on June 1, 2022, the redemption price will increase by 1.785% annually. As of September 30, 2022, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

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-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn October 13, 2022, the Company entered into a Senior Unsecured Revolving Credit Facility (the “New Unsecured Facility”) which replaced our existing secured revolving credit facility. Refer to Note 8 for additional details related to the New Unsecured Facility.

Investments in Unconsolidated Entities (Tables)

12 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Schedule of investments in unconsolidated joint ventures, total equity and outstanding borrowings

The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Investment in unconsolidated entities	$	964	$	4,464
Total equity of unconsolidated entities	$	1,564	$	7,316
Total outstanding borrowings of unconsolidated entities	$	—	$	12,708

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020


Equity in income of unconsolidated entities	$	521	$	594	$	347

Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Summary of Significant Accounting Policies [Line Items]
Total revenue	$ 2,316,988	$ 2,140,303	$ 2,127,077
Homebuilding revenue
Summary of Significant Accounting Policies [Line Items]
Total revenue	2,302,520	2,127,700	2,116,910
Land sales and other revenue
Summary of Significant Accounting Policies [Line Items]
Total revenue	$ 14,468	$ 12,603	$ 10,167

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
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-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax computed at statutory rate	$ 57,538	$ 30,182	$ 14,971
State income taxes, net of federal benefit	4,482	1,564	1,300
Deferred rate change	346	(904)	260
Changes in uncertain tax positions	0	0	(2)
Permanent differences	2,952	2,433	2,177
Tax credits	(12,081)	(12,088)	(939)
Other, net	34	359	206
Total expense	$ 53,271	$ 21,546	$ 17,973

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Other Liabilities [Abstract]
Accrued compensations and benefits	$ 57,781	$ 54,606
Customer deposits	34,270	28,526
Accrued interest	22,723	22,835
Accrued warranty expenses	13,926	12,931	$ 13,052	$ 13,388
Litigation accruals	9,832	8,325
Income tax liabilities	320	0
Other	35,536	25,128
Total	$ 174,388	$ 152,351

Fair Value Measurements - Fair Value Assets Measured on a Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 3,179	$ 2,730	$ 2,339
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	0
Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	3,179	2,730	2,339
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	0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Land held for sale	902		6,240
Fair Value, Measurements, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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]
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]
Land held for sale	$ 902		$ 6,240

Investments in Unconsolidated Entities - Narrative (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	May 19, 2022
Schedule of Equity Method Investments [Line Items]
Impairment of unconsolidated entity investment	$ 0	$ 0	$ 0
Imagine Homes
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage				33.00%
Financial Guarantee
Schedule of Equity Method Investments [Line Items]
Outstanding guarantees	$ 0	$ 0

Owned Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Real Estate [Abstract]
Homes under construction	$ 785,742	$ 648,283
Land under development	731,190	648,404
Land held for future development	19,879	19,879
Land held for sale	15,674	9,179
Capitalized interest	109,088	106,985	$ 119,659	$ 136,565
Model homes	76,292	68,872
Total owned inventory	$ 1,737,865	$ 1,501,602

Borrowings - Schedule of Future Debt Maturities (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 0
2024	0
2025	211,195
2026	0
2027	357,255
Thereafter	450,773
Total	$ 1,019,223

Contingencies (Tables)

12 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of warranty reserves

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Balance at beginning of period	$	12,931	$	13,052	$	13,388
Accruals for warranties issued(a)	12,711		10,963		10,910
Changes in liability related to warranties existing in prior periods	382		864		(1,352)
Payments made	(12,098)		(11,948)		(9,894)
Balance at end of period	$	13,926	$	12,931	$	13,052

Borrowings - Schedule of Debt Redemption (Details)	12 Months Ended
Borrowings - Schedule of Debt Redemption (Details)	Sep. 30, 2022
6.750% Senior Notes (2025 Notes) \| Senior Notes
Debt Instrument, Redemption [Line Items]
Stated interest rate on debt instrument	6.75%
5.875% Senior Notes (2027 Notes) \| Senior Notes
Debt Instrument, Redemption [Line Items]
Stated interest rate on debt instrument	5.875%
7.250% Senior Notes (2029 Notes) \| Senior Notes
Debt Instrument, Redemption [Line Items]
Stated interest rate on debt instrument	7.25%
Senior Notes \| 6.750% Senior Notes (2025 Notes) \| Debt Instrument, Redemption, Period One
Debt Instrument, Redemption [Line Items]
Redemption price percentage	100.00%
Senior Notes \| 6.750% Senior Notes (2025 Notes) \| Debt Instrument, Redemption, Period Two
Debt Instrument, Redemption [Line Items]
Redemption price percentage	105.063%
Senior Notes \| 6.750% Senior Notes (2025 Notes) \| Debt Instrument, Redemption, Period Three
Debt Instrument, Redemption [Line Items]
Redemption price percentage	103.375%
Senior Notes \| 6.750% Senior Notes (2025 Notes) \| Debt Instrument, Redemption, Period Four
Debt Instrument, Redemption [Line Items]
Redemption price percentage	101.688%
Senior Notes \| 6.750% Senior Notes (2025 Notes) \| Debt Instrument, Redemption, Period Five
Debt Instrument, Redemption [Line Items]
Redemption price percentage	100.00%
Senior Notes \| 5.875% Senior Notes (2027 Notes) \| Debt Instrument, Redemption, Period One
Debt Instrument, Redemption [Line Items]
Redemption price percentage	100.00%
Senior Notes \| 5.875% Senior Notes (2027 Notes) \| Debt Instrument, Redemption, Period Two
Debt Instrument, Redemption [Line Items]
Redemption price percentage	102.938%
Senior Notes \| 5.875% Senior Notes (2027 Notes) \| Debt Instrument, Redemption, Period Three
Debt Instrument, Redemption [Line Items]
Redemption price percentage	101.958%
Senior Notes \| 5.875% Senior Notes (2027 Notes) \| Debt Instrument, Redemption, Period Four
Debt Instrument, Redemption [Line Items]
Redemption price percentage	100.979%
Senior Notes \| 5.875% Senior Notes (2027 Notes) \| Debt Instrument, Redemption, Period Five
Debt Instrument, Redemption [Line Items]
Redemption price percentage	100.00%
Senior Notes \| 7.250% Senior Notes (2029 Notes)
Debt Instrument, Redemption [Line Items]
Redemption price percentage	107.25%
Percentage of principal amount redeemed	35.00%
Percentage of principal amount outstanding after redemption	65.00%
Senior Notes \| 7.250% Senior Notes (2029 Notes) \| Debt Instrument, Redemption, Period One
Debt Instrument, Redemption [Line Items]
Redemption price percentage	100.00%
Senior Notes \| 7.250% Senior Notes (2029 Notes) \| Debt Instrument, Redemption, Period Two
Debt Instrument, Redemption [Line Items]
Redemption price percentage	103.625%
Senior Notes \| 7.250% Senior Notes (2029 Notes) \| Debt Instrument, Redemption, Period Three
Debt Instrument, Redemption [Line Items]
Redemption price percentage	102.417%
Senior Notes \| 7.250% Senior Notes (2029 Notes) \| Debt Instrument, Redemption, Period Four
Debt Instrument, Redemption [Line Items]
Redemption price percentage	101.208%
Senior Notes \| 7.250% Senior Notes (2029 Notes) \| Debt Instrument, Redemption, Period Five
Debt Instrument, Redemption [Line Items]
Redemption price percentage	100.00%

Stock-Based Compensation - Schedule of Assumptions for Stock Options Granted (Details) - Stock options - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options (in years)	5 years 8 months 12 days	5 years 8 months 12 days
Expected volatility (percentage)	55.02%	51.52%
Expected dividends	0.00%	0.00%
Weighted-average risk-free interest rate	1.88%	0.43%
Weighted average fair value (in dollars per share)	$ 8.54	$ 4.99

Stock-Based Compensation - Schedule of Nonvested Stock Awards and Performance Shares (Details) - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Restricted Stock
Shares
Beginning of period (in shares)	1,224,729	1,406,154	1,390,421
Granted (in shares)	516,461	416,084	587,702
Vested (in shares)	(838,599)	(569,021)	(545,176)
Forfeited (in shares)	(54,403)	(28,488)	(26,793)
End of period (in shares)	848,188	1,224,729	1,406,154
Weighted- Average Grant Date Fair Value
Beginning of period (in dollars per share)	$ 13.59	$ 14.34	$ 16.53
Granted (in dollars per share)	20.14	15.67	16.04
Vested (in dollars per share)	11.42	17.50	12.65
Forfeited (in dollars per share)	16.77	11.77	13.79
End of period (in dollars per share)	$ 18.13	$ 13.59	$ 14.34
Performance-based restricted stock
Shares
Beginning of period (in shares)	738,155	796,024	778,814
Granted (in shares)	269,617	164,296	260,131
Vested (in shares)	(552,417)	(222,165)	(242,921)
Forfeited (in shares)	(19,209)	0	0
End of period (in shares)	436,146	738,155	796,024
Weighted- Average Grant Date Fair Value
Beginning of period (in dollars per share)	$ 13.45	$ 14.71	$ 13.60
Granted (in dollars per share)	18.98	17.90	16.98
Vested (in dollars per share)	10.50	22.40	13.60
Forfeited (in dollars per share)	17.27	0	0
End of period (in dollars per share)	$ 17.76	$ 13.45	$ 14.71
Granted and vested in period (in shares)	177,759	60,930
Time-based restricted stock
Shares
Beginning of period (in shares)	486,574	610,130	611,607
Granted (in shares)	246,844	251,788	327,571
Vested (in shares)	(286,182)	(346,856)	(302,255)
Forfeited (in shares)	(35,194)	(28,488)	(26,793)
End of period (in shares)	412,042	486,574	610,130
Weighted- Average Grant Date Fair Value
Beginning of period (in dollars per share)	$ 13.79	$ 13.85	$ 12.11
Granted (in dollars per share)	21.40	14.21	15.29
Vested (in dollars per share)	13.21	14.36	11.89
Forfeited (in dollars per share)	16.49	11.77	13.79
End of period (in dollars per share)	$ 18.52	$ 13.79	$ 13.85

Description of Business (Details)	Sep. 30, 2022 state region
Description of Business [Abstract]
Number of states in which home building segments operate \| state	13
Number of regions in which entity operates \| region	3

Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2022

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:


	Fiscal Year Ended September 30,
in thousands (except per share data)	2022		2021		2020
Numerator:
Income from continuing operations	$	220,718	$	122,180	$	53,316
Loss from discontinued operations, net of tax	(14)		(159)		(1,090)
Net income	$	220,704	$	122,021	$	52,226

Denominator:
Basic weighted-average shares	30,432		29,954		29,704
Dilutive effect of restricted stock awards	357		461		229
Dilutive effect of stock options	7		22		15


Diluted weighted-average shares(a)	30,796		30,437		29,948

Basic income (loss) per share:
Continuing operations	$	7.25	$	4.08	$	1.80
Discontinued operations	—		(0.01)		(0.04)
Total	$	7.25	$	4.07	$	1.76

Diluted income (loss) per share:
Continuing operations	$	7.17	$	4.01	$	1.78
Discontinued operations	—		—		(0.04)
Total	$	7.17	$	4.01	$	1.74

(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.

Schedule of antidilutive securities


	Fiscal Year Ended September 30,
in thousands	2022	2021	2020
Stock options	22	142	375
Time-based restricted stock	—	—	46

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Deferred tax assets:
Federal and state net operating loss carryforwards	$ 149,299	$ 177,611
Incentive compensation	12,914	13,793
Warranty and other reserves	7,091	6,006
Inventory adjustments	6,716	25,174
Intangible assets	1,515	6,016
Property, equipment and other assets	771	2,085
Uncertain tax positions	705	705
Other	2,743	2,435
Total deferred tax assets	181,754	233,825
Valuation allowance	(25,396)	(29,059)
Deferred tax assets, net	$ 156,358	$ 204,766

Contingencies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Contingencies - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021
Loss Contingencies [Line Items]
Standard product warranty length, minimum	1 year
Standard product warranty length, maximum	2 years
Limited product warranty length (up to)	10 years
Legal Reserve
Loss Contingencies [Line Items]
Accrued amounts for litigation and other contingent liabilities	$ 9.8	$ 8.3
Performance Bonds
Loss Contingencies [Line Items]
Letters of credit secured using cash collateral	35.2
Outstanding performance bonds	$ 279.6

Segment Information

12 Months Ended

Sep. 30, 2022

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(a)

East: Delaware, Indiana, Maryland, New Jersey(b), Tennessee, and Virginia

Southeast: Florida, Georgia, North Carolina, and South Carolina

(a) On May 20, 2022, we acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder in which the Company has held a one-third ownership stake for the past 16 years. The results of our San Antonio operations are reported herein within our West reportable segment.

(b) During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, it is included in this listing because the segment information below continues to include New Jersey.

Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding and land sales and other revenue less home construction, land development, and land sales expense, commission expense, depreciation and amortization, and certain G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are those described in Note 2.

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Revenue
West	$	1,331,553	$	1,118,578	$	1,183,339
East	560,747		569,835		477,624
Southeast	424,688		451,890		466,114

Total revenue	$	2,316,988	$	2,140,303	$	2,127,077


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Operating income
West	$	253,961	$	181,303	$	161,786
East	102,146		84,630		56,319
Southeast	68,726		57,581		40,746

Segment total	424,833		323,514		258,851
Corporate and unallocated(a)	(152,342)		(176,645)		(179,744)
Total operating income	$	272,491	$	146,869	$	79,107


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Depreciation and amortization
West	$	8,178	$	7,250	$	8,227
East	1,649		2,207		2,458
Southeast	1,843		2,552		2,857

Segment total	11,670		12,009		13,542
Corporate and unallocated(a)	1,690		1,967		2,098
Total depreciation and amortization	$	13,360	$	13,976	$	15,640

(a) Represents depreciation and amortization related to assets held by our corporate functions that benefit all segments.

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Capital expenditures
West	$	7,755	$	6,924	$	5,063
East	1,208		1,549		2,237
Southeast	1,215		1,447		2,985

Corporate and unallocated	4,870		4,725		357
Total capital expenditures	$	15,048	$	14,645	$	10,642

The following table presents assets by segment as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Assets
West	$	995,339	$	819,317
East	334,323		286,133
Southeast	305,443		296,581

Corporate and unallocated(a)	616,858		676,779
Total assets	$	2,251,963	$	2,078,810

(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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details

Stockholders' Equity - Narrative (Details) - USD ($)	12 Months Ended
Stockholders' Equity - Narrative (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	May 31, 2022	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Preferred stock outstanding (in shares)	0
Common stock authorized (in shares)	63,000,000	63,000,000
Common stock issued (in shares)	30,880,138	31,294,198
Common stock outstanding (in shares)	30,880,138	31,294,198
Authorized amount repurchase of common stock				$ 50,000,000		$ 50,000,000
Remaining availability repurchase amount	$ 41,800,000				$ 12,000,000
Share repurchases (in shares)	570,000		362,000
Aggregate repurchased value	$ 8,154,000	$ 0	$ 3,327,000
Shares repurchased, average price per share (in usd per share)	$ 14.33		$ 9.20
Dividends paid	$ 0	$ 0	$ 0
382 ownership limitation	4.95%

Supplemental Cash Flow Information (Tables)

12 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental disclosure of non-cash activity

The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the consolidated balance sheets and consolidated statements of cash flows for the periods presented:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Supplemental disclosure of non-cash activity:









Beginning operating lease right-of-use assets (ASC 842 adoption)(a)	$	—	$	—	$	13,895
Beginning operating lease liabilities (ASC 842 adoption)(a)	$	—	$	—	$	16,028
Increase in operating lease right-of-use assets(b)	$	835	$	2,905	$	3,104
Increase in operating lease liabilities(b)	$	835	$	2,905	$	3,104
Derecognition of investment in unconsolidated entities(c)	$	3,641	$	—	$	—
Supplemental disclosure of cash activity:
Interest payments	$	70,132	$	74,171	$	71,888
Income tax payments	$	4,216	$	3,462	$	546
Tax refunds received	$	—	$	1,078	$	315

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	214,594	$	246,715	$	327,693
Restricted cash	37,234		27,428		14,835
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	251,828	$	274,143	$	342,528

(a) On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC Topic 842, Leases (ASC 842). Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets.

(b) Represents leases renewed or additional leases commenced during the fiscal years ended September 30, 2022, 2021 and 2020.

(c) Represents the derecognition of investment in unconsolidated entities associated with the carrying value of previously held interest in Imagine Homes upon the acquisition of substantially all of the assets of Imagine Homes during the quarter ended June 30, 2022. Refer to Note 4 for further discussion.

Operating Leases - Lease Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2023	$ 3,799
2024	2,688
2025	2,299
2026	1,643
2027	702
Thereafter	1,226
Total lease payments	12,357
Less: imputed interest	1,149
Operating lease liabilities	11,208	$ 14,154
Liabilities for leases that have not yet commenced	$ 11,200

Income Taxes

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Current federal(a)	$	—	$	—	$	(4,641)
Current state	4,859		1,126		485
Deferred federal	47,239		20,331		20,639
Deferred state	1,173		89		1,490
Total expense	$	53,271	$	21,546	$	17,973

(a) Fiscal 2020 federal current benefit is primarily driven by the expected refund of our remaining alternative minimum tax credit balance due to the enactment of the CARES Act. Refer to Note 2 for further discussion.

The Company's expense (benefit) from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Income tax computed at statutory rate	$	57,538	$	30,182	$	14,971
State income taxes, net of federal benefit	4,482		1,564		1,300
Deferred rate change	346		(904)		260

Changes in uncertain tax positions	—		—		(2)

Permanent differences	2,952		2,433		2,177
Tax credits	(12,081)		(12,088)		(939)
Other, net	34		359		206
Total expense	$	53,271	$	21,546	$	17,973

The principal differences between our effective tax rate and the U.S. federal statutory rate for fiscal years 2022, 2021 and 2020 relate to state taxes, permanent differences and tax credits. Due to the effects of tax credits, our income tax expense is not always directly correlated to the amount of pre-tax income for the associated periods.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Deferred tax assets:
Federal and state net operating loss carryforwards	$	149,299	$	177,611
Incentive compensation	12,914		13,793
Warranty and other reserves	7,091		6,006
Inventory adjustments	6,716		25,174
Intangible assets	1,515		6,016
Property, equipment and other assets	771		2,085
Uncertain tax positions	705		705
Other	2,743		2,435
Total deferred tax assets	181,754		233,825




Valuation allowance	(25,396)		(29,059)
Deferred tax assets, net	$	156,358	$	204,766

As of September 30, 2022, our gross deferred tax assets above included $61.0 million of federal net operating loss (NOL) carryforwards, $57.8 million of federal tax credits, and $33.9 million of state NOL carryforwards. The majority of our federal NOL carryforwards expire at various dates through our fiscal 2033, our federal tax credits expire at various dates through our fiscal 2042, and a majority of our state NOL carryforwards expire at various dates through our fiscal 2041. As of September 30, 2022, valuation allowance of $25.4 million remains on various state NOL carryforwards for which the Company has concluded it is not more likely than not that these attributes would be realized.

We experienced an “ownership change” as defined in Section 382 of the Internal Revenue Code (Section 382) as of January 12, 2010. Section 382 contains rules that limit the ability of a company that undergoes an “ownership change” to utilize its net operating loss carryforwards, tax credits and certain built-in losses or deductions recognized during the five-year period after the ownership change to offset future taxable income. Because the five-year period has expired, we have determined the actual impact and final classification of those amounts, which are properly reflected in the amounts presented above. There can be no assurance that another ownership change, as defined in the tax law, will not occur. If another “ownership change” occurs, a new annual limitation on the utilization of net operating loss carryforwards, tax credits and built-in losses would be determined as of that date. This limitation, should one be required in the future, is subject to assumptions and estimates that could differ from actual results.

Valuation Allowance

A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, we assess the need to establish valuation allowances for deferred tax assets periodically based on the more-likely-than-not realization threshold criterion. In our assessment, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, the Company's experience with operating loss carryforwards and tax credit carryforwards not expiring unused, the Section 382 limitation on our ability to carryforward pre-ownership change net operating losses, recognized built-in losses or deductions and tax planning alternatives. Our assessment, while rooted in actual Company performance, are highly subjective and rely on certain estimates, including forecasts, which could differ materially from actual results.

In fiscal 2022, our conclusions about our ability to more likely than not realize all of our federal and certain state tax attributes remain consistent with our prior determinations. We considered positive factors including significant increases in our current earnings, interest savings from our debt reduction strategies, shortage in housing supply, and our backlog. The negative factors included the overall health of the broader economy, significant increases in mortgage interest rates, and weakened housing demand. As of September 30, 2022, the Company will have to cumulatively generate approximately $907.1 million in pre-tax income over the course of its carryforward period to realize its deferred tax assets prior to their expiration, which, as previously discussed, is the Company's fiscal 2042.

Unrecognized Tax Benefits

A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Balance at beginning of year	$	3,358	$	3,441	$	3,473
Additions for tax positions related to current year	—		—		—
Additions for tax positions related to prior years	—		—		—
Reductions in tax positions of prior years	—		—		—

Lapse of statute of limitations	—		(83)		(32)
Balance at end of year	$	3,358	$	3,358	$	3,441

If we were to recognize our $3.4 million of gross unrecognized tax benefits remaining as of September 30, 2022, substantially all would impact our effective tax rate. Additionally, we had no accrued interest and penalties as of September 30, 2022, 2021 and 2020. If applicable, we would record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations.

In the normal course of business, we are subject to audits by federal and state tax authorities regarding various tax liabilities. The statute of limitations for our major tax jurisdictions remains open for examination for fiscal year 2007 and subsequent years. As of September 30, 2022, we do not expect that any of our uncertain tax positions will reverse within the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Owned Inventory

12 Months Ended

Sep. 30, 2022

Real Estate [Abstract]

Owned Inventory

The components of our owned inventory are as follows as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Homes under construction	$	785,742	$	648,283
Land under development	731,190		648,404
Land held for future development	19,879		19,879
Land held for sale	15,674		9,179
Capitalized interest	109,088		106,985
Model homes	76,292		68,872
Total owned inventory	$	1,737,865	$	1,501,602

Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including costs of the underlying lot, direct construction costs and capitalized indirect costs. As of September 30, 2022, we had 2,688 homes under construction, including 887 spec homes totaling $246.5 million (793 in-process spec homes totaling $208.7 million, and 94 finished spec homes totaling $37.8 million). As of September 30, 2021, we had 2,912 homes under construction, including 576 spec homes totaling $116.4 million 542 in-process spec homes totaling $105.2 million, and 34 finished spec homes totaling $11.2 million).

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

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

Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2). These assets are recorded at the lower of the carrying value or fair value less costs to sell (net realizable value).

The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and land under development but excludes land held for future development and land held for sale (see Note 6 for additional information on capitalized interest).

Total owned inventory by reportable segment is presented in the table below as of September 30, 2022 and 2021:


in thousands	Projects in Progress (a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
September 30, 2022
West	$	934,309	$	3,483	$	14,998	$	952,790
East	313,613		10,888		—		324,501
Southeast	284,424		5,508		676		290,608
Corporate and unallocated(b)	169,966		—		—		169,966
Total	$	1,702,312	$	19,879	$	15,674	$	1,737,865
September 30, 2021
West	$	781,036	$	3,483	$	4,478	$	788,997
East	264,991		10,888		584		276,463
Southeast	269,738		5,508		4,117		279,363
Corporate and unallocated(b)	156,779		—		—		156,779
Total	$	1,472,544	$	19,879	$	9,179	$	1,501,602

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

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

Inventory Impairments

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020






Land Held for Sale:
West	$	1,303	$	—	$	89

Southeast	—		—		8
Corporate and unallocated(a)	565		—		1,160
Total impairment charges on land held for sale	$	1,868	$	—	$	1,257
Abandonments:
West	$	289	$	—	$	923
East	143		465		82
Southeast	663		388		641

Total abandonments charges	$	1,095	$	853	$	1,646






Total impairments and abandonment charges	$	2,963	$	853	$	2,903

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

Projects in Progress Impairments

We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. If the aggregate undiscounted cash flows are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the carrying value exceeds the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value.

No project in progress impairments were recognized during the fiscal years ended September 30, 2022, 2021 and 2020.

Land Held for Sale Impairments

Impairments on land held for sale generally represent write downs of these properties to net realizable value based on sales contracts, letters of intent, current market conditions and recent comparable land sale transactions, as applicable. Absent an executed sales contract, our assumptions related to land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results.

During the fiscal year ended September 30, 2022, we recognized $1.9 million land held for sale impairment charges related to two held for sale communities in the West segment. No land held for sale impairment charges were recognized during the fiscal year ended September 30, 2021. During the fiscal year ended September 30, 2020, we recognized $1.3 million land held for sale impairment charges related to two held for sale communities: one in the West segment and one in the Southeast segment.

Abandonments

From time-to-time, we may determine to abandon lots or not exercise certain option agreements that are not projected to produce adequate results or no longer fit with our long-term strategic plan. Additionally, in certain limited instances, we are forced to abandon lots due to seller non-performance, or permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record an abandonment charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. During the fiscal years ended September 30, 2022, 2021 and 2020, we recognized $1.1 million, $0.9 million and 1.6 million in abandonment charges, respectively.

Property and Equipment (Tables)

12 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Depreciation is computed on a straight-line basis based on estimated useful lives as follows:


Asset Class						Useful Lives
Buildings and improvements						25 - 30 years

Information systems						Lesser of estimated useful life of the asset or 5 years
Furniture, fixtures and computer and office equipment						3 - 7 years
Model and sales office improvements						Lesser of estimated useful life of the asset or estimated life of the community
Leasehold improvements						Lesser of the lease term or the estimated useful life of the asset

The following table presents our property and equipment as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Model furnishings and sales office improvements	$	22,544	$	19,617
Information systems	23,074		18,628
Furniture, fixtures and office equipment	11,019		10,613
Leasehold improvements	4,124		4,279
Buildings and improvements	1,671		1,671
Property and equipment, gross	62,432		54,808
Less: Accumulated depreciation	(37,866)		(31,923)
Property and equipment, net	$	24,566	$	22,885

Earnings Per Share

12 Months Ended

Sep. 30, 2022

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:


	Fiscal Year Ended September 30,
in thousands (except per share data)	2022		2021		2020
Numerator:
Income from continuing operations	$	220,718	$	122,180	$	53,316
Loss from discontinued operations, net of tax	(14)		(159)		(1,090)
Net income	$	220,704	$	122,021	$	52,226

Denominator:
Basic weighted-average shares	30,432		29,954		29,704
Dilutive effect of restricted stock awards	357		461		229
Dilutive effect of stock options	7		22		15


Diluted weighted-average shares(a)	30,796		30,437		29,948

Basic income (loss) per share:
Continuing operations	$	7.25	$	4.08	$	1.80
Discontinued operations	—		(0.01)		(0.04)
Total	$	7.25	$	4.07	$	1.76

Diluted income (loss) per share:
Continuing operations	$	7.17	$	4.01	$	1.78
Discontinued operations	—		—		(0.04)
Total	$	7.17	$	4.01	$	1.74

(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.


	Fiscal Year Ended September 30,
in thousands	2022	2021	2020
Stock options	22	142	375
Time-based restricted stock	—	—	46

Earnings Per Share - Schedule of Earnings Per Share, Basic and Dilutive (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Income from continuing operations	$ 220,718	$ 122,180	$ 53,316
Loss from discontinued operations, net of tax	(14)	(159)	(1,090)
Net income	$ 220,704	$ 122,021	$ 52,226
Denominator:
Basic weighted-average shares (in shares)	30,432	29,954	29,704
Dilutive effect of restricted stock awards (in shares)	357	461	229
Dilutive effect of stock options (in shares)	7	22	15
Diluted weighted-average shares (in shares)	30,796	30,437	29,948
Basic income (loss) per share:
Continuing operations (in dollars per share)	$ 7.25	$ 4.08	$ 1.80
Discontinued operations (in dollars per share)	0	(0.01)	(0.04)
Total (in dollars per share)	7.25	4.07	1.76
Diluted income (loss) per share:
Continuing operations (in dollars per share)	7.17	4.01	1.78
Discontinued operations (in dollars per share)	0	0	(0.04)
Total (in dollars per share)	$ 7.17	$ 4.01	$ 1.74

Discontinued Operations

12 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued OperationsWe continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase stockholder value. This review entails an evaluation of both external market factors and our position in each market, and over time has resulted in the decision to discontinue certain of our homebuilding operations.

We have classified the results of operations of our discontinued operations separately in the accompanying consolidated statements of operations for all periods presented. There were no material assets or liabilities related to our discontinued operations as of September 30, 2022 or 2021. Discontinued operations were not segregated in the consolidated statements of cash flows. Therefore, amounts for certain captions in the consolidated statements of cash flows will not agree with the respective data in the consolidated statements of operations. The results of our discontinued operations in the consolidated statements of operations for the periods presented were as follows:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020

Home construction and land sales expenses(a)	$	(5)	$	119	$	1,245

Gross profit (loss)	5		(119)		(1,245)

General and administrative expenses	23		85		173

Operating loss	(18)		(204)		(1,418)

Other income, net	—		—		19
Loss from discontinued operations before income taxes	(18)		(204)		(1,399)
Benefit from income taxes	(4)		(45)		(309)
Loss from discontinued operations, net of tax	$	(14)	$	(159)	$	(1,090)

Owned Inventory - Inventory Impairments and Lot Option Abandonment Charges, by Reportable Segment (Details) - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Real Estate, Write-down or Reserve [Line Items]
Land held for sale	$ 1,900,000	$ 0	$ 1,300,000
Abandonments	1,095,000	853,000	1,646,000
Total impairments and abandonment charges	2,963,000	853,000	2,903,000
West \| Operating Segments
Real Estate, Write-down or Reserve [Line Items]
Abandonments	289,000	0	923,000
East \| Operating Segments
Real Estate, Write-down or Reserve [Line Items]
Abandonments	143,000	465,000	82,000
Southeast \| Operating Segments
Real Estate, Write-down or Reserve [Line Items]
Abandonments	663,000	388,000	641,000
Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Land held for sale	1,868,000	0	1,257,000
Continuing Operations \| Corporate and unallocated
Real Estate, Write-down or Reserve [Line Items]
Land held for sale	565,000	0	1,160,000
Continuing Operations \| West
Real Estate, Write-down or Reserve [Line Items]
Land held for sale	1,303,000	0	89,000
Continuing Operations \| Southeast
Real Estate, Write-down or Reserve [Line Items]
Land held for sale	$ 0	$ 0	$ 8,000

Owned Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Projects in Progress	$ 1,702,312	$ 1,472,544
Land Held for Future Development	19,879	19,879
Land Held for Sale	15,674	9,179
Total owned inventory	1,737,865	1,501,602
Corporate and unallocated
Segment Reporting Information [Line Items]
Projects in Progress	169,966	156,779
Land Held for Future Development	0	0
Land Held for Sale	0	0
Total owned inventory	169,966	156,779
West
Segment Reporting Information [Line Items]
Projects in Progress	934,309	781,036
Land Held for Future Development	3,483	3,483
Land Held for Sale	14,998	4,478
Total owned inventory	952,790	788,997
East
Segment Reporting Information [Line Items]
Projects in Progress	313,613	264,991
Land Held for Future Development	10,888	10,888
Land Held for Sale	0	584
Total owned inventory	324,501	276,463
Southeast
Segment Reporting Information [Line Items]
Projects in Progress	284,424	269,738
Land Held for Future Development	5,508	5,508
Land Held for Sale	676	4,117
Total owned inventory	$ 290,608	$ 279,363

Stock-Based Compensation

12 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

The Company has shares available for grant under the Amended and Restated 2014 Beazer Homes USA, Inc. Long-Term Incentive Plan. We issue new shares upon the exercise of stock options and the grant of restricted stock awards. In cases of forfeitures and cancellations, those shares are returned to the share pool for future issuance. As of September 30, 2022, we had 1.5 million shares of common stock for issuance under our various equity incentive plans, of which 1.5 million shares are available for future grants.

Stock-based compensation expense is included in general and administrative expenses in our consolidated statements of operations. The following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2022, 2021 and 2020, respectively.


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Stock options expense	$	1	$	25	$	133
Restricted stock awards expense	8,477		12,142		9,903
Stock-based compensation expense	$	8,478	$	12,167	$	10,036

Stock Options

Stock options have an exercise price equal to the fair market value of the common stock on the grant date, generally vest two or three years after the date of grant, and may be exercised thereafter until their expiration, subject to forfeiture upon termination of employment as provided in the applicable plan. Under certain conditions of retirement, eligible participants may receive a partial vesting of stock options. Stock options generally expire on the eighth anniversary from the date such options were granted, depending on the terms of the award.

The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model (Black-Scholes Model). As of September 30, 2022, the intrinsic value of our stock options outstanding and vested and exercisable were less than $0.1 million and less than $0.1 million, respectively. As of both September 30, 2022 and 2021, there was less than $0.1 million of total unrecognized compensation cost related to unvested stock options. The cost remaining as of September 30, 2022 is expected to be recognized over a weighted-average period of 1.4 years.

During fiscal 2018, the Compensation Committee of our Board of Directors approved the Employee Stock Option Program (ESOP). This program is available to all full-time employees and is designed to enable employees to share in potential price appreciation of the Company's stock. The ESOP matches stock purchases made by eligible employees meeting certain conditions with an option to purchase an additional share of the Company's shares on a one-to-one basis. The exercise price of the options granted is equal to the closing price of the Company's stock on the day the underlying shares are purchased by the employee, which is also the ESOP grant date. The options will vest on the second anniversary of the date of grant but are forfeited if (1) the eligible employee no longer works for the Company or (2) the underlying shares are sold before the two-year vesting period is over. The total number of options available under the ESOP is limited to 100,000, each for one share of the Company's common stock, of which 31,968 options were granted through the end of fiscal 2022.

During the year ended September 30, 2022, we issued 236 stock options, all were issued under the ESOP. No stock options were issued during the year ended September 30, 2021, and 950 stock options were issued during the year ended September 30, 2020. We used the following valuation assumptions for stock options granted for the periods presented:


	Fiscal Year Ended September 30,
	2022			2020
Expected life of options	5.7 years			5.7 years
Expected volatility	55.02		%	51.52		%
Expected dividends	—			—
Weighted-average risk-free interest rate	1.88		%	0.43		%
Weighted-average fair value	$	8.54		$	4.99

We relied upon a combination of the observed exercise behavior of our prior grants with similar characteristics, the vesting schedule of the current grants, and an index of peer companies with similar grant characteristics to determine the expected life of the options granted. We considered historic returns of our stock and the implied volatility of our publicly-traded options in determining expected volatility. We assumed no dividends would be paid since our Board of Directors has suspended payment of dividends indefinitely and payment of dividends is restricted under our Senior Notes covenants. The risk-free interest rate is based on the term structure of interest rates at the time of the option grant.

A summary of stock option activity for the periods presented is as follows:


	2022			2021			2020
	Shares	Weighted- Average Exercise Price		Shares	Weighted- Average Exercise Price		Shares	Weighted- Average Exercise Price
Outstanding at beginning of period	114,259	$	17.89	392,465	$	15.47	523,754	$	14.34
Granted	236	16.58		—	—		950	10.67
Exercised	(988)	11.32		(278,206)	14.48		(128,921)	11.01
Expired	(86,000)	19.11		—	—		—	—

Forfeited	—	—		—	—		(3,318)	9.55
Outstanding at end of period	27,507	$	14.31	114,259	$	17.89	392,465	$	15.47
Exercisable at end of period	27,271	$	14.29	113,309	$	17.95	354,796	$	15.90

Information pertaining to the intrinsic value of options exercised and the fair market value of options that vested is below:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Intrinsic value of options exercised	$	6	$	1,402	$	587
Fair market value of options vested	$	5	$	173	$	144

Restricted Stock Awards

The fair value of each restricted stock award with market conditions is estimated on the date of grant using the Monte Carlo valuation method. The fair value of restricted stock awards without market conditions is based on the market price of the Company's common stock on the date of grant. If applicable, the cash-settled component of any awards granted to employees is accounted for as a liability, which is adjusted to fair value each reporting period until vested.

Compensation cost arising from restricted stock awards granted to employees is recognized as an expense using the straight-line method over the vesting period. As of September 30, 2022 and 2021, there was $7.3 million and $7.2 million, respectively, of total unrecognized compensation cost related to unvested restricted stock awards. The cost remaining as of September 30, 2022 is expected to be recognized over a weighted-average period of 1.7 years.

During fiscal 2022, we issued time-based restricted stock awards and performance-based restricted stock awards with a payout subject to certain performance and market conditions. Each award type is discussed below.

Performance-Based Restricted Stock Awards

During the year ended September 30, 2022, we issued 91,858 shares of performance-based restricted stock (2022 Performance Shares), containing market conditions, to our executive officers and certain other employees. The 2022 Performance Shares are structured to be awarded based on the Company's performance under three pre-determined financial and operational metrics at the end of the three-year performance period. After determining the number of shares earned based on the financial and operational metrics, which can range from 0% to 175% of the targeted number of shares, the award will be subject to further upward or downward adjustment by as much as 20% based on the Company's relative total shareholder return (TSR) compared against a selected small to mid-cap homebuilder peers during the three-year performance period. The 2022 Performance Shares were valued using the Monte Carlo valuation model due to the existence of the TSR market condition and had an estimated fair value of $23.36 per share on the date of grant.

A Monte Carlo valuation model requires the following inputs: (1) the expected dividend yield on the underlying stock; (2) the

expected price volatility of the underlying stock; (3) the risk-free interest rate for the period corresponding with the expected

term of the award; and (4) the fair value of the underlying stock. For the Company and each member of the peer group, the

following inputs were used, as applicable, in the Monte Carlo valuation model to determine the fair value as of the grant date

for performance-based restricted stock granted in each of the fiscal years ended.


	Fiscal Year Ended September 30,
	2022		2021		2020
Expected volatility range	41.0% - 89.0%		26.1% - 67.0%		21.2% - 54.8%
Risk-free interest rate	0.81	%	0.23	%	1.61	%
Dividend yield	—		—		—
Grant-date stock price range	$21.40 - $142.99		$14.07 - $4,318.03		$15.62 - $3,595.17

Each of our performance shares represent 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 consolidated statements of stockholders' equity. We have not cash settled any such performance-based awards prior to or subsequent to the November 2019 transaction, and we have no current plans to cash settle any additional performance-based restricted shares in the future.

The performance criteria of the 2020 Performance Share grant were satisfied as of September 30, 2022. Based on the actual performance level achieved, 334,736 performance-based restricted stock awards from the 2020 Performance Share grant cliff vested at the end of the three-year vesting period on November 15, 2022. Of the total $7.0 million compensation cost related to these awards, we have recognized $2.1 million, $3.3 million and $1.3 million during the fiscal years ended September 30, 2022, 2021 and 2020, respectively. The remaining $0.3 million of unrecognized compensation cost will be recognized in the first quarter of fiscal 2023.

Time-Based Restricted Stock Awards

During the year ended September 30, 2022, we also issued 246,844 shares of time-based restricted stock (Restricted Shares) to our directors, executive officers, and certain other employees. Restricted Shares are valued based on the market price of the Company's common stock on the date of the grant. The Restricted Shares granted to our non-employee directors vest on the first anniversary of the grant, while the Restricted Shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant.

Activity relating to all restricted stock awards for the periods presented is as follows:


	Year Ended September 30, 2022
	Performance-Based(a)			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	738,155	$	13.45	486,574	$	13.79	1,224,729	$	13.59
Granted	269,617	18.98		246,844	21.40		516,461	20.14
Vested	(552,417)	10.50		(286,182)	13.21		(838,599)	11.42
Forfeited	(19,209)	17.27		(35,194)	16.49		(54,403)	16.77
End of period	436,146	$	17.76	412,042	$	18.52	848,188	$	18.13


	Year Ended September 30, 2021
	Performance-Based(a)			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	796,024	$	14.71	610,130	$	13.85	1,406,154	$	14.34
Granted	164,296	17.90		251,788	14.21		416,084	15.67
Vested	(222,165)	22.40		(346,856)	14.36		(569,021)	17.50
Forfeited	—	—		(28,488)	11.77		(28,488)	11.77
End of period	738,155	$	13.45	486,574	$	13.79	1,224,729	$	13.59


	Year Ended September 30, 2020
	Performance-Based			Time-Based			Total
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Beginning of period	778,814	$	13.60	611,607	$	12.11	1,390,421	$	16.53
Granted	260,131	16.98		327,571	15.29		587,702	16.04
Vested	(242,921)	13.60		(302,255)	11.89		(545,176)	12.65
Forfeited	—	—		(26,793)	13.79		(26,793)	13.79
End of period	796,024	$	14.71	610,130	$	13.85	1,406,154	$	14.34

Fair Value Measurements - Narrative (Details) - USD ($)	12 Months Ended
Fair Value Measurements - Narrative (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Impairment of projects in process	$ 0	$ 0	$ 0
Impairment of land held for sale	$ 1,900,000	$ 0	$ 1,300,000

Other Liabilities

12 Months Ended

Sep. 30, 2022

Other Liabilities [Abstract]

Other Liabilities

Other liabilities include the following as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Accrued compensations and benefits	$	57,781	$	54,606
Customer deposits	34,270		28,526
Accrued interest	22,723		22,835
Accrued warranty expenses	13,926		12,931
Litigation accruals	9,832		8,325
Income tax liabilities	320		—
Other	35,536		25,128
Total	$	174,388	$	152,351

Discontinued Operations (Details) - USD ($) $ in Thousands	12 Months Ended
Discontinued Operations (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations, net of tax	$ (14)	$ (159)	$ (1,090)
Litigation settlement accrual			1,300
Litigation settlement expense		1,400
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Home construction and land sales expenses	(5)	119	1,245
Gross profit (loss)	5	(119)	(1,245)
General and administrative expenses	23	85	173
Operating loss	(18)	(204)	(1,418)
Other income, net	0	0	19
Loss from discontinued operations before income taxes	(18)	(204)	(1,399)
Benefit from income taxes	(4)	(45)	(309)
Loss from discontinued operations, net of tax	$ (14)	$ (159)	$ (1,090)

Investments in Unconsolidated Entities - Unconsolidated Entities (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entities	$ 964	$ 4,464
Total equity of unconsolidated entities	939,286	724,884	$ 593,171	$ 538,754
Total outstanding borrowings of unconsolidated entities	0	12,708
Equity in income of unconsolidated entities	521	594	$ 347
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Total equity of unconsolidated entities	$ 1,564	$ 7,316

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
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-Name Accounting Standards Codification
-Topic 852
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-Section 55
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
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-Subparagraph (SX 210.5-02(29))
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 210
-SubTopic 10
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 3,358	$ 3,441	$ 3,473
Additions for tax positions related to current year	0	0	0
Additions for tax positions related to prior years	0	0	0
Reductions in tax positions of prior years	0	0	0
Lapse of statute of limitations	0	(83)	(32)
Balance at end of year	$ 3,358	$ 3,358	$ 3,441

Audit Information	12 Months Ended
Audit Information	Sep. 30, 2022
Auditor Information [Abstract]
Auditor Name	Deloitte & Touche LLP
Auditor Location	Atlanta, Georgia
Auditor Firm ID	34

Property and Equipment

12 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

The following table presents our property and equipment as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Model furnishings and sales office improvements	$	22,544	$	19,617
Information systems	23,074		18,628
Furniture, fixtures and office equipment	11,019		10,613
Leasehold improvements	4,124		4,279
Buildings and improvements	1,671		1,671
Property and equipment, gross	62,432		54,808
Less: Accumulated depreciation	(37,866)		(31,923)
Property and equipment, net	$	24,566	$	22,885

Borrowings - Schedule of Long-term Debt (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (7,280,000)	$ (8,983,000)
Total debt, net	983,440,000	1,054,030,000
Revolving Credit Facility
Debt Instrument [Line Items]
Secured Revolving Credit Facility	0	0
Senior Notes
Debt Instrument [Line Items]
Senior Unsecured Term Loan	0	50,000,000
Unamortized debt issuance costs	(7,280,000)	(8,983,000)
Total debt, net	911,170,000	983,827,000
Junior Subordinated Notes
Debt Instrument [Line Items]
Total debt, net	72,270,000	70,203,000
Unamortized discount	28,503,000	30,570,000
6.750% Senior Notes (2025 Notes) \| Senior Notes
Debt Instrument [Line Items]
Total debt, net	$ 211,195,000	229,555,000
Stated interest rate on debt instrument	6.75%
5.875% Senior Notes (2027 Notes) \| Senior Notes
Debt Instrument [Line Items]
Total debt, net	$ 357,255,000	363,255,000
Stated interest rate on debt instrument	5.875%
7.250% Senior Notes (2029 Notes) \| Senior Notes
Debt Instrument [Line Items]
Total debt, net	$ 350,000,000	$ 350,000,000
Stated interest rate on debt instrument	7.25%
Junior Subordinated Notes
Debt Instrument [Line Items]
Unamortized discount	$ 28,500,000

Retirement and Deferred Compensation Plan	12 Months Ended
Retirement and Deferred Compensation Plan	Sep. 30, 2022
Retirement Benefits [Abstract]
Retirement and Deferred Compensation Plan	Retirement and Deferred Compensation Plans 401(k) Retirement Plan The Company sponsors a defined-contribution plan that is a tax-qualified retirement plan under section 401(k) of the Internal Revenue Code (the Plan). Substantially all employees are eligible for participation in the Plan. Participants may defer and contribute from 1% to 80% of their salary to the Plan, with certain limitations on highly compensated individuals. The Company matches up to 50% of the participant's contributions limited to 6% of the participant's earnings. The participant's contributions vest immediately, while the Company's contributions vest over five years. The total Company contributions for the fiscal years ended September 30, 2022, 2021 and 2020 were approximately $3.5 million, $3.2 million and $3.4 million, respectively. During fiscal 2022, 2021 and 2020, participants forfeited $0.3 million, $0.8 million and $1.0 million, respectively, of unvested matching contributions. Deferred Compensation Plan The Beazer Homes USA, Inc. Deferred Compensation Plan (the DCP) is a non-qualified deferred compensation plan for a select group of executives and highly compensated employees. The DCP allows the executives to defer current compensation on a pre-tax basis to a future year, until termination of employment. The objectives of the DCP are to assist executives with financial planning and capital accumulation and to provide the Company with a method of attracting, rewarding and retaining executives. Participation in the DCP is voluntary. Beazer Homes may voluntarily make a contribution to the participants' DCP accounts. Deferred compensation assets of $3.2 million and $2.7 million as of September 30, 2022 and 2021, respectively, are included in other assets on our consolidated balance sheets and are recorded at fair value. Deferred compensation liabilities of $5.5 million and $7.2 million as of September 30, 2022 and 2021, respectively, are included in other liabilities on our consolidated balance sheets. For the years ended September 30, 2022, 2021 and 2020, the Company contributed approximately $0.2 million, $0.2 million and $0.2 million, respectively, to the DCP in the form of voluntary contributions.

Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes and Term Loan	$ 911,170	$ 983,827
Junior Subordinated Notes	72,270	70,203
Total debt, net	983,440	1,054,030
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes and Term Loan	753,338	1,046,965
Junior Subordinated Notes	72,270	70,203
Total debt, net	$ 825,608	$ 1,117,168

Contingencies - Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
Contingencies - Warranty (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 12,931	$ 13,052	$ 13,388
Accruals for warranties issued	12,711	10,963	10,910
Changes in liability related to warranties existing in prior periods	382	864	(1,352)
Payments made	(12,098)	(11,948)	(9,894)
Balance at end of period	$ 13,926	$ 12,931	$ 13,052

Retirement and Deferred Compensation Plan - Deferred Compensation Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accrued compensations and benefits	$ 57,781	$ 54,606
Deferred Compensation Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Deferred compensation plan assets	3,200	2,700
Accrued compensations and benefits	5,500	7,200
Employer contribution to deferred compensation plan	$ 200	$ 200	$ 200

Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 62,432	$ 54,808
Less: Accumulated depreciation	(37,866)	(31,923)
Property and equipment, net	24,566	22,885
Model furnishings and sales office improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	22,544	19,617
Information systems
Property, Plant and Equipment [Line Items]
Property and equipment, gross	23,074	18,628
Furniture, fixtures and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,019	10,613
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,124	4,279
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,671	$ 1,671

Owned Inventory - Narrative (Details)	12 Months Ended
Owned Inventory - Narrative (Details)	Sep. 30, 2022 USD ($) home community	Sep. 30, 2021 USD ($) home	Sep. 30, 2020 USD ($) community
Segment Reporting Information [Line Items]
Number of homes under construction \| home	2,688	2,912
Number of homes under construction, spec homes \| home	887	576
Total, spec homes	$ 246,500,000	$ 116,400,000
Number of homes under construction, in-process spec homes \| home	793	542
In-process spec homes	$ 208,700,000	$ 105,200,000
Number of homes under construction, finished spec homes \| home	94	34
Finished spec homes	$ 37,800,000	$ 11,200,000
Threshold number of homes below a minimum threshold of profitability \| home	10
Impairment of projects in process	$ 0	0	$ 0
Land held for sale	1,900,000	0	$ 1,300,000
Number of communities \| community			2
Abandonments	$ 1,095,000	$ 853,000	$ 1,646,000
West
Segment Reporting Information [Line Items]
Number of communities \| community	2		1
Southeast
Segment Reporting Information [Line Items]
Number of communities \| community			1

Stock-Based Compensation - Schedule of Compensation Cost for Share-based Payment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8,478	$ 12,167	$ 10,036
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1	25	133
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8,477	$ 12,142	$ 9,903

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

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Consolidation

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and present the consolidated financial position, income, stockholders' equity, and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income is equivalent to our comprehensive income, so we have not presented a separate statement of comprehensive income.

In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying consolidated statements of operations for all periods presented (see Note 19 for a further discussion of our discontinued operations).

Our fiscal year 2022 began on October 1, 2021 and ended on September 30, 2022. Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. Our fiscal year 2020 began on October 1, 2019 and ended on September 30, 2020.

Use of Estimates

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

Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents and Restricted CashWe consider highly liquid investments with maturities of three months or less when acquired to be cash equivalents. As of September 30, 2022, the majority of our cash and cash equivalents were on demand deposits with major banks. These assets were valued at par and had no withdrawal restrictions. Restricted cash includes cash restricted by state law or a contractual requirement, including cash collateral for our outstanding cash-secured letters of credit (refer to Note 8).

Accounts Receivables and Allowance

Accounts Receivable and Allowance

Accounts receivable include escrow deposits to be received from title companies associated with closed homes, receivables from municipalities related to the development of utilities or other infrastructure, land banker reimbursements to be received related to land development costs, rebates to be received from our suppliers and other miscellaneous receivables. Generally, we receive cash from title companies within a few days of the home being closed. We regularly review our receivable balances for collectability and record an allowance for expected credit losses.

Owned Inventory

Owned InventoryOwned inventory includes land acquisition costs, land development costs, home construction costs, capitalized interest, real estate taxes, direct overhead costs and capitalized indirect costs incurred during land development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and other common costs (both incurred and estimated to be incurred) are allocated to individual lots on a pro-rata basis, and the cost of individual lots is transferred to homes under construction when home construction begins. Changes in estimated land and other common costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. Home construction costs are accumulated on a per-home basis. Cost of home closings includes the specific construction costs of the home and the allocated lot costs.

Inventory Valuation - Projects in Progress

Projects in progress inventory includes homes under construction and land under development grouped together as communities. Generally, upon the commencement of land development activities, it may take three to five years (depending on, among other things, the size of the community and its sales pace) to fully develop, sell, construct and close all the homes in a typical community. Projects in progress are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable.

We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. We evaluate, among other things, the average sales price and margins on recent home closings, homes in backlog and expected future home sales for each community. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. This undiscounted cash flow analysis requires important assumptions including, among other things, the current and future home sale prices, margins and the pace of closings to occur in the future. For those communities whose carrying values exceed the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value.

The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. The fair value of the community is estimated using the present value of the estimated future cash flows using discount rates commensurate with the risk associated with the underlying community. Should the estimates or expectations used in determining estimated fair values deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to these assets, and such amounts could be material.

Inventory Valuation - Land Held for Future Development and Sale

Inventory Valuation - Land Held for Future Development

Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for future development is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, such as the future enactment of a development plan or the occurrence of outside events. We evaluate the potential plans for each community in land held for future development if changes in facts and circumstances occur that would give rise to a more detailed analysis for a change in the status of a community.

Inventory Valuation - Land Held for Sale

Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets. We record land held for sale at the lower of the asset's carrying value or fair value less costs to sell (net realizable value). Land is classified as held for sale when the following criteria are met:

•management has the authority and commits to a plan to sell the land;

•the land is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of land assets;

•there is an active program to locate a buyer and the plan to sell the property has been initiated;

•the sale of the land is probable within one year;

•the property is being actively marketed at a reasonable sale price relative to its current fair value; and

•it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made.

We evaluate the net realizable value of a land held for sale asset when indicators of impairment are present. In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals, any recent legitimate offers and listing prices of similar properties. If the current carrying value of the asset exceeds the estimated fair value less cost to sell, the asset is impaired and written down to its estimated fair value less cost to sell.

Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our analysis. Our assumptions about land sales prices require significant judgment because the market is highly sensitive to changes in economic conditions. We calculate the estimated fair values of land held for sale based on current market conditions and assumptions made by management, which may differ materially from actual results and may result in additional impairments if market conditions deteriorate.

Lot Option Agreements and Variable Interest Entities (VIE)

In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit, irrevocable letter of credit or surety bond based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit or surety bonds, and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option agreements. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all.

The following table provides a summary of our interests in lot option agreements as of September 30, 2022 and 2021:


in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred(a)		Remaining Obligation, Net of Cash Deposits
As of September 30, 2022


Unconsolidated lot option agreements	$	142,433	$	827,600

As of September 30, 2021


Unconsolidated lot option agreements	$	114,688	$	676,149

(a) Amount is included as a component of land under development within our owned inventory in the consolidated balance sheet.

In accordance with Accounting Standards Codification (ASC) Topic 810, Consolidation (ASC 810), if the entity holding the land under option is a variable VIE, the Company's deposit represents a variable interest in that entity. ASC 810 requires a company consolidate a VIE if the company is determined to be the primary beneficiary. To determine whether we are the primary beneficiary of the VIE, we first evaluate whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to, (1) the ability to determine the budget and scope of land development work, if any; (2) the ability to control financing decisions for the VIE; (3) the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with Beazer; and (4) the ability to change or amend the existing option agreement with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE and thus do not consolidate the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE's losses or, if no party absorbs the majority of such losses, if we will benefit from potentially a significant amount of the VIE's expected gains.

If we are the primary beneficiary of the VIE, we will consolidate the VIE even though creditors of the VIE have no recourse against the Company. For those we consolidate, we record the remaining contractual purchase price under the applicable lot option agreement, net of option deposits already paid, to consolidated inventory not owned with an offsetting increase to obligations related to consolidated inventory not owned on our consolidated balance sheets. Also, to reflect the total purchase price of this inventory on a consolidated basis, we present the related option deposits as consolidated inventory not owned. No VIEs required consolidation as of September 2022 and 2021 because we have determined that we were not the primary beneficiary of any VIEs.

Investments in Unconsolidated Entities

Investments in Unconsolidated EntitiesWe participate in a number of joint ventures and other investments in which we have less than a controlling interest. We enter into the majority of these investments with land developers, other homebuilders and financial partners to acquire attractive land positions, to manage our risk profile and to leverage our capital base. The land positions are developed into finished lots for sale to the unconsolidated entity's members or other third parties. We recognize our share of equity in income (loss) and profits (losses) from the sale of lots to other buyers. Our share of profits from lots we purchase from the unconsolidated entities is deferred and treated as a reduction of the cost of the land purchased from the unconsolidated entity. Such profits are subsequently recognized at the time the home closes and title passes to the homebuyer. We evaluate our investments in unconsolidated entities for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of our investment in the unconsolidated entity has occurred that is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value, which is determined primarily using a discounted cash flow model. Our unconsolidated entities typically obtain secured acquisition, development and construction financing. We account for our interest in unconsolidated entities under the equity method.

Property and Equipment, Net

Our property and equipment is recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis based on estimated useful lives as follows:


Asset Class						Useful Lives
Buildings and improvements						25 - 30 years

Information systems						Lesser of estimated useful life of the asset or 5 years
Furniture, fixtures and computer and office equipment						3 - 7 years
Model and sales office improvements						Lesser of estimated useful life of the asset or estimated life of the community
Leasehold improvements						Lesser of the lease term or the estimated useful life of the asset

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets from the businesses that we acquire. The Company's entire goodwill balance is recorded in our Southeast reportable segment. The Company evaluates goodwill for impairment at the reporting unit level annually during the fourth quarter or more often if indicators of impairment exist.

The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of the reporting unit is less than the carrying value, then a quantitative assessment is performed.

The fair value of the reporting unit is estimated using a combination of the income approach, utilizing the discounted cash flow method, and the market approach, utilizing readily available market valuation multiples. If the estimated fair value of the reporting unit is less than its carrying value, an impairment will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Determining the fair value of a reporting unit under the quantitative goodwill impairment assessment requires the Company to make estimates and assumptions regarding future operating results, cash flows (including timing), discount rates, expected growth rates, capital expenditures and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of the factors used in assessing fair value are outside the control of management, and these assumptions and estimates may change in future periods.

Other Assets

Our other assets principally include prepaid expenses, unamortized debt issuance costs on our Secured Revolving Credit Facility, and assets related to our deferred compensation plan (refer to Note 15 for a discussion of our deferred compensation plan).

Other Liabilities

Other LiabilitiesOur other liabilities principally include accrued compensations and benefits, accrued interest on our outstanding borrowings, customer deposits, accrued warranty expense, litigation accruals, income tax liabilities and other accruals related to our operations.

Income Taxes

Income TaxesOur provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities result from deductible or taxable amounts in future years when such assets and liabilities are recovered or settled, and are measured using the enacted tax rates and laws that are expected to be in effect when the assets and liabilities are recovered or settled. We include any estimated interest and penalties on tax related matters in income taxes payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. We record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. Changes in recognition of measurement are recorded in the period in which the change in judgment occurs. Our income tax receivable includes the refundable portion of our alternative minimum tax credit. The alternative minimum tax credit became a refundable credit when the alternative minimum tax was eliminated with the enactment of the Tax Cuts and Jobs Act on December 22, 2017.

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 process specified in ASC Topic 606, Revenue from Contracts with Customers.

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


	Fiscal Year Ended
	September 30,
in thousands	2022		2021		2020
Homebuilding revenue	$	2,302,520	$	2,127,700	$	2,116,910
Land sales and other revenue	14,468		12,603		10,167
Total revenue(a)	$	2,316,988	$	2,140,303	$	2,127,077

(a) Please see Note 18 for total revenue disaggregated by reportable segment.

Homebuilding revenue

Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home is 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 $34.3 million and $28.5 million as of September 30, 2022 and 2021, respectively. Of the customer liabilities outstanding as of September 30, 2021, $26.3 million was recognized in revenue during the year ended September 30, 2022, upon closing of the related homes, and $1.2 million was refunded to or forfeited by the buyer.

Land sales and other revenue

Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized when closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed.

Home Construction Expenses

Home construction expenses includes the specific construction costs of the home and the allocated lot costs (land acquisition, land development and other common costs are allocated to individual lots on a pro-rata basis based on the number of lots remaining to close). All home closing costs are charged to home construction expenses in the period when the revenues from home closing are recognized.

Sales discounts and incentives include discounts on home prices, discounts on home building options and option upgrades, and seller-paid financing or closing costs. Home price discounts and option discounts are accounted for as a reduction in the sale price of the home, thereby decreasing the amount of revenue we recognize on that closing. All other sales incentives are recognized as a cost of selling the home and are included in home construction expenses.

Estimated future warranty costs are charged to home construction expense in the period when the revenues from home closings are recognized. Such estimated warranty costs generally range from 0.3% to 1.0% of total revenue recognized for each home closed. Additional warranty costs are charged to home construction expenses as necessary based on management's estimate of the costs to remediate existing claims.

Fair Value Measurements

Fair Value MeasurementsCertain of our assets are required to be recorded at fair value on a recurring basis, for example, the fair value of our deferred compensation plan assets are based on market-corroborated inputs (level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recovered (level 3). For example, we review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value is based on estimated cash flows discounted for market risks associated with the long-lived assets. The fair value of certain of our financial instruments approximates their carrying amounts due to the short maturity of these assets and liabilities or the variable interest rates on such obligations. The fair value of our publicly-held debt is generally estimated based on quoted bid prices for these instruments (level 2). Certain of our other financial liabilities are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality.

Stock-Based Compensation

Stock-Based CompensationWe use the Black-Scholes option-pricing model to value our stock option grants. Restricted stock awards with market conditions are valued using the Monte Carlo valuation method. Other restricted stock awards without market conditions are valued based on the market price of the Company's common stock on the date of the grant. In addition, we reflect the benefits of tax deductions in excess of recognized compensation cost as an operating cash outflow. Compensation cost arising from all stock-based compensation awards is recognized as expense using the straight-line method over the vesting period and is included in G&A in our consolidated statements of operations.

Recent Accounting Pronouncements

Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact but do not expect that the adoption of ASU 2020-04 will have a material impact on our consolidated financial statements and related disclosures.

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

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

These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented:


in thousands	Level 1		Level 2		Level 3			Total
As of September 30, 2022

Deferred compensation plan assets(a)	$	—	$	3,179	$	—		$	3,179

Land held for sale(b)	—		—		902		(c)	902

As of September 30, 2021

Deferred compensation plan assets(a)	$	—	$	2,730	$	—		$	2,730



As of September 30, 2020

Deferred compensation plan assets(a)	$	—	$	2,339	$	—		$	2,339

Land held for sale(b)	—		—		6,240		(c)	6,240

(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 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 September 30, 2022 and 2021:


	As of September 30, 2022				As of September 30, 2021
in thousands	Carrying Amount(a)		Fair Value		Carrying Amount(a)		Fair Value
Senior Notes and Term Loan(b)	$	911,170	$	753,338	$	983,827	$	1,046,965
Junior Subordinated Notes(c)	72,270		72,270		70,203		70,203
Total	$	983,440	$	825,608	$	1,054,030	$	1,117,168

(a) Carrying amounts are net of unamortized debt issuance costs or accretion.

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

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

- 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

Segment Information (Details) $ in Thousands	12 Months Ended
Segment Information (Details) $ in Thousands	Sep. 30, 2022 USD ($) state region segment	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	May 19, 2022
Segment Reporting [Abstract]
Number of states with active operations \| state	13
Number of regions in which entity operates \| region	3
Number of homebuilding segments \| segment	3
Segment Reporting Information [Line Items]
Total revenue	$ 2,316,988	$ 2,140,303	$ 2,127,077
Total operating income	272,491	146,869	79,107
Depreciation and amortization	13,360	13,976	15,640
Capital expenditures	15,048	14,645	10,642
Assets	2,251,963	2,078,810
Imagine Homes
Segment Reporting [Abstract]
Equity method investment, ownership percentage				33.00%
Operating Segments
Segment Reporting Information [Line Items]
Total operating income	424,833	323,514	258,851
Depreciation and amortization	11,670	12,009	13,542
Corporate and unallocated
Segment Reporting Information [Line Items]
Total operating income	(152,342)	(176,645)	(179,744)
Depreciation and amortization	1,690	1,967	2,098
Capital expenditures	4,870	4,725	357
Assets	616,858	676,779
West
Segment Reporting Information [Line Items]
Total revenue	1,331,553	1,118,578	1,183,339
West \| Operating Segments
Segment Reporting Information [Line Items]
Total operating income	253,961	181,303	161,786
Depreciation and amortization	8,178	7,250	8,227
Capital expenditures	7,755	6,924	5,063
Assets	995,339	819,317
East
Segment Reporting Information [Line Items]
Total revenue	560,747	569,835	477,624
East \| Operating Segments
Segment Reporting Information [Line Items]
Total operating income	102,146	84,630	56,319
Depreciation and amortization	1,649	2,207	2,458
Capital expenditures	1,208	1,549	2,237
Assets	334,323	286,133
Southeast
Segment Reporting Information [Line Items]
Total revenue	424,688	451,890	466,114
Southeast \| Operating Segments
Segment Reporting Information [Line Items]
Total operating income	68,726	57,581	40,746
Depreciation and amortization	1,843	2,552	2,857
Capital expenditures	1,215	1,447	$ 2,985
Assets	$ 305,443	$ 296,581

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Sep. 30, 2022	Nov. 07, 2022	Mar. 31, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--09-30
Document Transition Report	false
Entity File Number	001-12822
Entity Registrant Name	BEAZER HOMES USA, INC.
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 460,369,020
Entity Common Stock, Shares Outstanding		30,880,138
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement for the registrant’s 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended September 30, 2022.
Entity Central Index Key	0000915840
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended			36 Months Ended	60 Months Ended
	Nov. 30, 2019	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance under plan (in shares)		1,500,000			1,500,000	1,500,000
Number of shares of common stock available for future grants (in shares)		1,500,000			1,500,000	1,500,000
Intrinsic value of stock options outstanding		$ 0.1			$ 0.1	$ 0.1
Intrinsic value of stock options exercisable		$ 0.1			$ 0.1	$ 0.1
Granted (in shares)		236	0
ESOP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options available under ESOP (in shares)		100,000			100,000	100,000
Granted (in shares)						31,968
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 0.1	$ 0.1		$ 0.1	$ 0.1
Weighted average period to recognize remaining cost		1 year 4 months 24 days
Granted (in shares)		236	0	950
Stock options \| 2014 Plan and the 2010 Equity Incentive Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		2 years
Stock options \| 2014 Plan and the 2010 Equity Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Stock options \| ESOP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		2 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 7.3	$ 7.2		$ 7.3	$ 7.3
Weighted average period to recognize remaining cost		1 year 8 months 12 days
Estimated fair value of nonvested stock (in dollars per share)		$ 20.14	$ 15.67	$ 16.04
Performance share awards to be vested (in shares)		848,188	1,224,729	1,406,154	848,188	848,188	1,390,421
Performance-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Stock awards granted in period (in shares)		91,858
Estimated fair value of nonvested stock (in dollars per share)		$ 18.98	$ 17.90	$ 16.98
Performance share awards to be vested (in shares)		436,146	738,155	796,024	436,146	436,146	778,814
Performance-based restricted stock \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout percentage		0.00%
Performance-based restricted stock \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout percentage		175.00%
Performance-based restricted stock \| 2020 Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Unrecognized compensation cost		$ 0.3			$ 0.3	$ 0.3
Performance share awards to be vested (in shares)		334,736			334,736	334,736
Compensation cost related to performance based awards		$ 2.1	$ 3.3	$ 1.3	$ 7.0
Performance-based restricted stock \| 2017 Performance-Based Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based restricted stock settled in cash payment (in shares)	135,337
Cash settlement of performance-based restricted stock	$ 2.1
Total Shareholder Return Performance Share
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout percentage		20.00%
Estimated fair value of nonvested stock (in dollars per share)		$ 23.36
Time-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Stock awards granted in period (in shares)		246,844
Estimated fair value of nonvested stock (in dollars per share)		$ 21.40	$ 14.21	$ 15.29
Performance share awards to be vested (in shares)		412,042	486,574	610,130	412,042	412,042	611,607

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
ASSETS
Allowances for accounts receivable	$ 284	$ 290
LIABILITIES AND STOCKHOLDERS’ EQUITY
Debt issuance costs	$ 7,280	$ 8,983
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	63,000,000	63,000,000
Common stock, shares issued (in shares)	30,880,138	31,294,198
Common stock, shares outstanding (in shares)	30,880,138	31,294,198

Operating Leases (Tables)

12 Months Ended

Sep. 30, 2022

Leases [Abstract]

Lease cost

At September 30, 2022 and 2021, weighted-average remaining lease term and discount rate were as follows:


	Fiscal Year Ended September 30,
	2022	2021
Weighted-average remaining lease term	4.3 years	4.8 years
Weighted-average discount rate	4.43%	4.56%

Lessee, operating lease, liability, maturity

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2022:


Fiscal Years Ending September 30,
in thousands
2023	$	3,799
2024	2,688
2025	2,299
2026	1,643
2027	702
Thereafter	1,226
Total lease payments(a)	12,357
Less: imputed interest	1,149
Total operating lease liabilities	$	11,208

(a) Lease payments excludes $11.2 million legally binding minimum lease payments for an office lease signed but not yet commenced as of September 30, 2022. The related ROU asset and operating lease liability are not reflected on the Company's consolidated balance sheet as of September 30, 2022.

Supplemental Cash Flow Information

12 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Supplemental disclosure of non-cash activity:









Beginning operating lease right-of-use assets (ASC 842 adoption)(a)	$	—	$	—	$	13,895
Beginning operating lease liabilities (ASC 842 adoption)(a)	$	—	$	—	$	16,028
Increase in operating lease right-of-use assets(b)	$	835	$	2,905	$	3,104
Increase in operating lease liabilities(b)	$	835	$	2,905	$	3,104
Derecognition of investment in unconsolidated entities(c)	$	3,641	$	—	$	—
Supplemental disclosure of cash activity:
Interest payments	$	70,132	$	74,171	$	71,888
Income tax payments	$	4,216	$	3,462	$	546
Tax refunds received	$	—	$	1,078	$	315

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	214,594	$	246,715	$	327,693
Restricted cash	37,234		27,428		14,835
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	251,828	$	274,143	$	342,528

(b) Represents leases renewed or additional leases commenced during the fiscal years ended September 30, 2022, 2021 and 2020.

Retirement and Deferred Compensation Plan - 401(k) Retirement Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution percentage	50.00%
Percentage of maximum contributions per employee	6.00%
Contribution vesting period	5 years
Employer contribution amount	$ 3.5	$ 3.2	$ 3.4
Total matching contributions forfeited by plan participants during period	$ 0.3	$ 0.8	$ 1.0
Minimum
Defined Contribution Plan Disclosure [Line Items]
Percentage of employee deferral or contribution	1.00%
Maximum
Defined Contribution Plan Disclosure [Line Items]
Percentage of employee deferral or contribution	80.00%

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Consolidation

Use of Estimates

Cash and Cash Equivalents and Restricted Cash

We consider highly liquid investments with maturities of three months or less when acquired to be cash equivalents. As of September 30, 2022, the majority of our cash and cash equivalents were on demand deposits with major banks. These assets were valued at par and had no withdrawal restrictions. Restricted cash includes cash restricted by state law or a contractual requirement, including cash collateral for our outstanding cash-secured letters of credit (refer to Note 8).

Accounts Receivable and Allowance

Owned Inventory

Owned inventory includes land acquisition costs, land development costs, home construction costs, capitalized interest, real estate taxes, direct overhead costs and capitalized indirect costs incurred during land development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and other common costs (both incurred and estimated to be incurred) are allocated to individual lots on a pro-rata basis, and the cost of individual lots is transferred to homes under construction when home construction begins. Changes in estimated land and other common costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. Home construction costs are accumulated on a per-home basis. Cost of home closings includes the specific construction costs of the home and the allocated lot costs. Refer to Note 5 for a further discussion and detail of our inventory balance.

Inventory Valuation - Projects in Progress

Inventory Valuation - Land Held for Future Development

Inventory Valuation - Land Held for Sale

•management has the authority and commits to a plan to sell the land;

•the land is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of land assets;

•there is an active program to locate a buyer and the plan to sell the property has been initiated;

•the sale of the land is probable within one year;

•the property is being actively marketed at a reasonable sale price relative to its current fair value; and

•it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made.

Lot Option Agreements and Variable Interest Entities (VIE)

The following table provides a summary of our interests in lot option agreements as of September 30, 2022 and 2021:


in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred(a)		Remaining Obligation, Net of Cash Deposits
As of September 30, 2022


Unconsolidated lot option agreements	$	142,433	$	827,600

As of September 30, 2021


Unconsolidated lot option agreements	$	114,688	$	676,149

(a) Amount is included as a component of land under development within our owned inventory in the consolidated balance sheet.

Investments in Unconsolidated Entities

We participate in a number of joint ventures and other investments in which we have less than a controlling interest. We enter into the majority of these investments with land developers, other homebuilders and financial partners to acquire attractive land positions, to manage our risk profile and to leverage our capital base. The land positions are developed into finished lots for sale to the unconsolidated entity's members or other third parties. We recognize our share of equity in income (loss) and profits (losses) from the sale of lots to other buyers. Our share of profits from lots we purchase from the unconsolidated entities is deferred and treated as a reduction of the cost of the land purchased from the unconsolidated entity. Such profits are subsequently recognized at the time the home closes and title passes to the homebuyer. We evaluate our investments in unconsolidated entities for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of our investment in the unconsolidated entity has occurred that is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value, which is determined primarily using a discounted cash flow model. Our unconsolidated entities typically obtain secured acquisition, development and construction financing. We account for our interest in unconsolidated entities under the equity method. For additional discussion of these entities, refer to Note 4.

Property and Equipment, Net

Our property and equipment is recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis based on estimated useful lives as follows:


Asset Class						Useful Lives
Buildings and improvements						25 - 30 years

Information systems						Lesser of estimated useful life of the asset or 5 years
Furniture, fixtures and computer and office equipment						3 - 7 years
Model and sales office improvements						Lesser of estimated useful life of the asset or estimated life of the community
Leasehold improvements						Lesser of the lease term or the estimated useful life of the asset

Goodwill

During the fourth quarter of 2022, the Company performed its annual goodwill impairment analysis and concluded our goodwill was not impaired.

Other Assets

Other Liabilities

Our other liabilities principally include accrued compensations and benefits, accrued interest on our outstanding borrowings, customer deposits, accrued warranty expense, litigation accruals, income tax liabilities and other accruals related to our operations. Refer to Note 12 for a detail of our other liabilities.

Income Taxes

Our provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities result from deductible or taxable amounts in future years when such assets and liabilities are recovered or settled, and are measured using the enacted tax rates and laws that are expected to be in effect when the assets and liabilities are recovered or settled. We include any estimated interest and penalties on tax related matters in income taxes payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. We record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. Changes in recognition of measurement are recorded in the period in which the change in judgment occurs. Refer to Note 13 for a detailed discussion of our tax provision, deferred tax assets and valuation allowance.

Our income tax receivable includes the refundable portion of our alternative minimum tax credit. The alternative minimum tax credit became a refundable credit when the alternative minimum tax was eliminated with the enactment of the Tax Cuts and Jobs Act on December 22, 2017. During fiscal 2019, we recorded our initial refund claim of $4.6 million, or half of our outstanding $9.2 million credit. During fiscal 2020, the enactment of the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27, 2020 enabled us to claim the entire $9.2 million alternative minimum tax credit with the filing of our fiscal 2019 return. As a result, we reduced our deferred tax asset by the remaining $4.6 million of alternative minimum tax credits and increased our tax receivable for the refund we expect to receive.

Revenue Recognition

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


	Fiscal Year Ended
	September 30,
in thousands	2022		2021		2020
Homebuilding revenue	$	2,302,520	$	2,127,700	$	2,116,910
Land sales and other revenue	14,468		12,603		10,167
Total revenue(a)	$	2,316,988	$	2,140,303	$	2,127,077

(a) Please see Note 18 for total revenue disaggregated by reportable segment.

Homebuilding revenue

Land sales and other revenue

Home Construction Expenses

Advertising Costs

Advertising costs related to continuing operations of $14.4 million, $14.0 million and $15.9 million for our fiscal years 2022, 2021 and 2020, respectively, were expensed as incurred and were included in general and administrative (G&A) expenses in the consolidated statements of operations.

Fair Value Measurements

Certain of our assets are required to be recorded at fair value on a recurring basis, for example, the fair value of our deferred compensation plan assets are based on market-corroborated inputs (level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recovered (level 3). For example, we review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value is based on estimated cash flows discounted for market risks associated with the long-lived assets. The fair value of certain of our financial instruments approximates their carrying amounts due to the short maturity of these assets and liabilities or the variable interest rates on such obligations. The fair value of our publicly-held debt is generally estimated based on quoted bid prices for these instruments (level 2). Certain of our other financial liabilities are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. See Note 10 for additional discussion of our fair value measurements.

Stock-Based Compensation

We use the Black-Scholes option-pricing model to value our stock option grants. Restricted stock awards with market conditions are valued using the Monte Carlo valuation method. Other restricted stock awards without market conditions are valued based on the market price of the Company's common stock on the date of the grant. In addition, we reflect the benefits of tax deductions in excess of recognized compensation cost as an operating cash outflow. Compensation cost arising from all stock-based compensation awards is recognized as expense using the straight-line method over the vesting period and is included in G&A in our consolidated statements of operations. See Note 16 for additional discussion of our stock-based compensation.

Recent Accounting Pronouncements

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Real Estate Properties [Line Items]
Deposits & Non-refundable Pre-acquisition Costs Incurred	$ 142,433	$ 114,688
Remaining Obligation, Net of Cash Deposits	$ 827,600	$ 676,149

Operating Leases

12 Months Ended

Sep. 30, 2022

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 consolidated statements of operations. Sublease income and variable lease expenses are de minimis. For the fiscal years ended September 30, 2022, 2021 and 2020, we recorded operating lease expense of $4.0 million, $4.3 million and $4.5 million, respectively. Cash payments on lease liabilities during the fiscal years ended September 30, 2022, 2021 and 2020 totaled $4.4 million, $4.8 million and $4.6 million, respectively.

At September 30, 2022 and 2021, weighted-average remaining lease term and discount rate were as follows:


	Fiscal Year Ended September 30,
	2022	2021
Weighted-average remaining lease term	4.3 years	4.8 years
Weighted-average discount rate	4.43%	4.56%

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2022:


Fiscal Years Ending September 30,
in thousands
2023	$	3,799
2024	2,688
2025	2,299
2026	1,643
2027	702
Thereafter	1,226
Total lease payments(a)	12,357
Less: imputed interest	1,149
Total operating lease liabilities	$	11,208

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Current federal(a)	$	—	$	—	$	(4,641)
Current state	4,859		1,126		485
Deferred federal	47,239		20,331		20,639
Deferred state	1,173		89		1,490
Total expense	$	53,271	$	21,546	$	17,973

Schedule of effective income tax rate reconciliation

The Company's expense (benefit) from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Income tax computed at statutory rate	$	57,538	$	30,182	$	14,971
State income taxes, net of federal benefit	4,482		1,564		1,300
Deferred rate change	346		(904)		260

Changes in uncertain tax positions	—		—		(2)

Permanent differences	2,952		2,433		2,177
Tax credits	(12,081)		(12,088)		(939)
Other, net	34		359		206
Total expense	$	53,271	$	21,546	$	17,973

Schedule of deferred tax assets and liabilities

The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Deferred tax assets:
Federal and state net operating loss carryforwards	$	149,299	$	177,611
Incentive compensation	12,914		13,793
Warranty and other reserves	7,091		6,006
Inventory adjustments	6,716		25,174
Intangible assets	1,515		6,016
Property, equipment and other assets	771		2,085
Uncertain tax positions	705		705
Other	2,743		2,435
Total deferred tax assets	181,754		233,825




Valuation allowance	(25,396)		(29,059)
Deferred tax assets, net	$	156,358	$	204,766

Schedule of unrecognized tax benefits roll forward

A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Balance at beginning of year	$	3,358	$	3,441	$	3,473
Additions for tax positions related to current year	—		—		—
Additions for tax positions related to prior years	—		—		—
Reductions in tax positions of prior years	—		—		—

Lapse of statute of limitations	—		(83)		(32)
Balance at end of year	$	3,358	$	3,358	$	3,441

Interest

12 Months Ended

Sep. 30, 2022

Real Estate Inventory Capitalized Interest Costs [Abstract]

Interest

Interest capitalized during the fiscal years ended September 30, 2022, 2021 and 2020 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020
Capitalized interest in inventory, beginning of period	$	106,985	$	119,659	$	136,565
Interest incurred	74,161		77,397		87,224
Capitalized interest impaired	(439)		—		(792)
Interest expense not qualified for capitalization and included as other expense(a)	—		(2,781)		(8,468)
Capitalized interest amortized to home construction and land sales expenses(b)	(71,619)		(87,290)		(94,870)
Capitalized interest in inventory, end of period	$	109,088	$	106,985	$	119,659

(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.

Description of Business	12 Months Ended
Description of Business	Sep. 30, 2022
Description of Business [Abstract]
Description of Business	Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast. Our homes are designed to appeal to homeowners at different price points across various demographic segments, and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate extraordinary value at an affordable price, delivered through our three strategic pillars discussed previously, while seeking to maximize our return on invested capital over the course of a housing cycle.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in Capital	(Accumulated Deficit) Retained Earnings
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	52,226			52,226
Stock-based compensation expense	10,036		10,036
Stock option exercises (in shares)		52
Stock option exercises	226		226
Shares issued under employee stock plans, net (in shares)		588
Forfeiture and other settlements of restricted stock (in shares)		(26)
Forfeiture and other settlements of restricted stock	(2,058)		(2,058)
Common stock redeemed for tax liability (in shares)		(173)
Common stock redeemed for tax liability	$ (2,686)		(2,686)
Share repurchases (in shares)	(362)	(362)
Share repurchases	$ (3,327)		(3,327)
Ending balance (in shares) at Sep. 30, 2020		31,012
Ending balance at Sep. 30, 2020	593,171	$ 31	856,466	(263,326)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income and comprehensive income	122,021			122,021
Stock-based compensation expense	12,167		12,167
Stock option exercises (in shares)		198
Stock option exercises	569		569
Shares issued under employee stock plans, net (in shares)		417
Forfeiture and other settlements of restricted stock (in shares)		(29)
Forfeiture and other settlements of restricted stock	0		0
Common stock redeemed for tax liability (in shares)		(304)
Common stock redeemed for tax liability	(3,044)		(3,044)
Share repurchases	0
Ending balance (in shares) at Sep. 30, 2021		31,294
Ending balance at Sep. 30, 2021	724,884	$ 31	866,158	(141,305)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income and comprehensive income	220,704			220,704
Stock-based compensation expense	8,478		8,478
Stock option exercises (in shares)		1
Stock option exercises	5		5
Shares issued under employee stock plans, net (in shares)		518
Forfeiture and other settlements of restricted stock (in shares)		(55)
Forfeiture and other settlements of restricted stock	0		0
Common stock redeemed for tax liability (in shares)		(308)
Common stock redeemed for tax liability	$ (6,631)		(6,631)
Share repurchases (in shares)	(570)	(570)
Share repurchases	$ (8,154)		(8,154)
Ending balance (in shares) at Sep. 30, 2022		30,880
Ending balance at Sep. 30, 2022	$ 939,286	$ 31	$ 859,856	$ 79,399

Investments in Unconsolidated Entities

12 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Unconsolidated Entities

As of September 30, 2022, the Company participated in certain joint ventures and had investments in unconsolidated entities in which it had less than a controlling interest. The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Investment in unconsolidated entities	$	964	$	4,464
Total equity of unconsolidated entities	$	1,564	$	7,316
Total outstanding borrowings of unconsolidated entities	$	—	$	12,708

On May 20, 2022, the Company acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder. For the past 16 years, Beazer has held a one-third ownership stake in Imagine Homes, recorded as an investment in unconsolidated entities on the consolidated balance sheet. The transaction was deemed an asset acquisition under the guidance of ASC Topic 805-50, Business Combinations - Related Issues. The Company accounted for the asset acquisition following the cost accumulation model, whereby the sum of the carrying value of the previously held interest, additional consideration paid and transaction costs were allocated to the acquired assets on a relative fair value basis. The reduction in balances of the Company's investment in unconsolidated entities, total equity and outstanding borrowings of unconsolidated entities reflects the Imagine Homes transaction.

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020


Equity in income of unconsolidated entities	$	521	$	594	$	347

For the fiscal years ended September 30, 2022, 2021 and 2020, there were no impairments related to investments in unconsolidated entities.

Guarantees

Historically, the Company's joint ventures typically obtained secured acquisition, development, and construction financing. In addition, the Company and its joint venture partners provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of September 30, 2022 and 2021, the Company had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities.

The Company and its joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate the Company to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During our fiscal years ended September 30, 2022 and 2021, the Company was not required to make any payments related to environmental indemnities.

In assessing the need to record a liability for these guarantees, the Company considers its historical experience in being required to perform under the guarantees, the fair value of the collateral underlying these guarantees, and the financial condition of the applicable unconsolidated entities. In addition, the fair value of the collateral of unconsolidated entities is monitored to ensure that the related borrowings do not exceed the specified percentage of the value of the property securing the borrowings. As of September 30, 2022, no liability was recorded for the contingent aspects of any guarantees that were determined to be reasonably possible but not probable.

Fair Value Measurements

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

As of the dates presented, we had assets on our consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows:

•Level 1 – Quoted prices in active markets for identical assets or liabilities;

•Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and

•Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability.

Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recoverable. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value on assets deemed to be impaired is determined based upon the type of asset being evaluated. Fair value of our owned inventory assets, when required to be calculated, is further discussed within Notes 2 and 5. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3.

During the fiscal year ended September 30, 2022, we recognized no impairments on projects in progress and $1.9 million of impairments on land held for sale.

During the fiscal year ended September 30, 2021, we recognized no impairments on projects in progress and land held for sale.

During the fiscal year ended September 30, 2020, we recognized no impairments on projects in progress and $1.3 million of impairments on land held for sale.

Determining within which hierarchical level an asset or liability falls requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table presents the period-end balances of assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented:


in thousands	Level 1		Level 2		Level 3			Total
As of September 30, 2022

Deferred compensation plan assets(a)	$	—	$	3,179	$	—		$	3,179

Land held for sale(b)	—		—		902		(c)	902

As of September 30, 2021

Deferred compensation plan assets(a)	$	—	$	2,730	$	—		$	2,730



As of September 30, 2020

Deferred compensation plan assets(a)	$	—	$	2,339	$	—		$	2,339

Land held for sale(b)	—		—		6,240		(c)	6,240

(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 land held for sale assets that were impaired during the period indicated.

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

The following table presents the carrying value and estimated fair value of certain other financial liabilities as of September 30, 2022 and 2021:


	As of September 30, 2022				As of September 30, 2021
in thousands	Carrying Amount(a)		Fair Value		Carrying Amount(a)		Fair Value
Senior Notes and Term Loan(b)	$	911,170	$	753,338	$	983,827	$	1,046,965
Junior Subordinated Notes(c)	72,270		72,270		70,203		70,203
Total	$	983,440	$	825,608	$	1,054,030	$	1,117,168

(a) Carrying amounts are net of unamortized debt issuance costs or accretion.

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

- 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

Borrowings - Narrative (Details) - USD ($)				1 Months Ended	12 Months Ended
Borrowings - Narrative (Details) - USD ($)	Oct. 13, 2022	Jun. 01, 2022	Jun. 01, 2012	Jan. 31, 2010	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Gain (loss) on extinguishment of debt, net					$ 309,000	$ (2,025,000)	$ 0
Senior Notes \| 5.875% Senior Notes (2027 Notes)
Debt Instrument [Line Items]
Repurchased senior debt					6,000,000	30,700,000	0
Gain (loss) on extinguishment of debt, net					300,000	(2,000,000)	$ 0
Senior Notes \| 6.750% Senior Notes (2025 Notes)
Debt Instrument [Line Items]
Repurchased senior debt					18,400,000
Junior Subordinated Notes
Debt Instrument [Line Items]
Aggregate principle balance of notes					$ 100,800,000
Weighted average fixed interest rate of debt (percent)					5.23%
Unamortized discount					$ 28,500,000
Junior Subordinated Debt, Modified Terms
Debt Instrument [Line Items]
Aggregate principal amount of debt				$ 75,000,000
Redemption price percentage			75.00%
Annual increase of percentage of principal amount redeemable		1.785%
Junior Subordinated Debt, Modified Terms \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable rate floor				4.25%
Variable rate cap				9.25%
Junior Subordinated Debt, Original Terms
Debt Instrument [Line Items]
Aggregate principal amount of debt					$ 25,800,000
Junior Subordinated Debt, Original Terms \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate					2.45%
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 250,000,000
Secured Revolving Credit Facility					0	0
Letters of credit secured using cash collateral					5,500,000	0
Line of credit facility, remaining borrowing capacity					244,500,000	244,500,000
Collateral amount					1,060,000,000.00
Revolving Credit Facility \| Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 265,000,000
Line of credit facility, increase to size of the commitments	135,000,000
Revolving Credit Facility \| Subsequent Event \| Maximum
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 400,000,000
Letter of Credit
Debt Instrument [Line Items]
Letters of credit secured using cash collateral					29,700,000	21,800,000
Collateral amount					$ 31,500,000	$ 22,300,000

Operating Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Operating lease expense	$ 4.0	$ 4.3	$ 4.5
Operating lease payments	$ 4.4	$ 4.8	$ 4.6

Stock-Based Compensation - Schedule of Stock Options Activity (Details) - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Shares
Granted (in shares)	236	0
Employee Stock Option
Shares
Outstanding at beginning of period (in shares)	114,259	392,465	523,754
Granted (in shares)	236	0	950
Exercised (in shares)	(988)	(278,206)	(128,921)
Expired (in shares)	(86,000)	0	0
Forfeited (in shares)	0	0	(3,318)
Outstanding at end of period (in shares)	27,507	114,259	392,465
Exercisable at end of period (in shares)	27,271	113,309	354,796
Weighted- Average Exercise Price
Outstanding at beginning or period (in dollars per share)	$ 17.89	$ 15.47	$ 14.34
Granted (in dollars per share)	16.58	0	10.67
Exercised (in dollars per share)	11.32	14.48	11.01
Expired (in dollars per share)	19.11	0	0
Forfeited (in dollars per share)	0	0	9.55
Outstanding at end of period (in dollars per share)	14.31	17.89	15.47
Exercisable at end of period (in dollars per share)	$ 14.29	$ 17.95	$ 15.90

Owned Inventory (Tables)

12 Months Ended

Sep. 30, 2022

Real Estate [Abstract]

Schedule of inventory

The components of our owned inventory are as follows as of September 30, 2022 and 2021:


in thousands	September 30, 2022		September 30, 2021
Homes under construction	$	785,742	$	648,283
Land under development	731,190		648,404
Land held for future development	19,879		19,879
Land held for sale	15,674		9,179
Capitalized interest	109,088		106,985
Model homes	76,292		68,872
Total owned inventory	$	1,737,865	$	1,501,602

Schedule of total inventory by segment

Total owned inventory by reportable segment is presented in the table below as of September 30, 2022 and 2021:


in thousands	Projects in Progress (a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
September 30, 2022
West	$	934,309	$	3,483	$	14,998	$	952,790
East	313,613		10,888		—		324,501
Southeast	284,424		5,508		676		290,608
Corporate and unallocated(b)	169,966		—		—		169,966
Total	$	1,702,312	$	19,879	$	15,674	$	1,737,865
September 30, 2021
West	$	781,036	$	3,483	$	4,478	$	788,997
East	264,991		10,888		584		276,463
Southeast	269,738		5,508		4,117		279,363
Corporate and unallocated(b)	156,779		—		—		156,779
Total	$	1,472,544	$	19,879	$	9,179	$	1,501,602

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

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

Schedule of inventory impairments and lot option abandonment charges

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


	Fiscal Year Ended September 30,
in thousands	2022		2021		2020






Land Held for Sale:
West	$	1,303	$	—	$	89

Southeast	—		—		8
Corporate and unallocated(a)	565		—		1,160
Total impairment charges on land held for sale	$	1,868	$	—	$	1,257
Abandonments:
West	$	289	$	—	$	923
East	143		465		82
Southeast	663		388		641

Total abandonments charges	$	1,095	$	853	$	1,646






Total impairments and abandonment charges	$	2,963	$	853	$	2,903

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

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Total revenue	$ 2,316,988	$ 2,140,303	$ 2,127,077
Home construction and land sales expenses	1,776,518	1,735,195	1,776,534
Inventory impairments and abandonments	2,963	853	2,903
Gross profit	537,507	404,255	347,640
Commissions	74,336	80,125	82,507
General and administrative expenses	177,320	163,285	170,386
Depreciation and amortization	13,360	13,976	15,640
Operating income	272,491	146,869	79,107
Equity in income of unconsolidated entities	521	594	347
Gain (loss) on extinguishment of debt, net	309	(2,025)	0
Other income (expense), net	668	(1,712)	(8,165)
Income from continuing operations before income taxes	273,989	143,726	71,289
Expense from income taxes	53,271	21,546	17,973
Income from continuing operations	220,718	122,180	53,316
Loss from discontinued operations, net of tax	(14)	(159)	(1,090)
Net income	$ 220,704	$ 122,021	$ 52,226
Weighted-average number of shares:
Basic (in shares)	30,432	29,954	29,704
Diluted (in shares)	30,796	30,437	29,948
Basic income (loss) per share:
Continuing operations (in dollars per share)	$ 7.25	$ 4.08	$ 1.80
Discontinued operations (in dollars per share)	0	(0.01)	(0.04)
Total (in dollars per share)	7.25	4.07	1.76
Diluted income (loss) per share:
Continuing operations (in dollars per share)	7.17	4.01	1.78
Discontinued operations (in dollars per share)	0	0	(0.04)
Total (in dollars per share)	$ 7.17	$ 4.01	$ 1.74

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Current federal	$ 0	$ 0	$ (4,641)
Current state	4,859	1,126	485
Deferred federal	47,239	20,331	20,639
Deferred state	1,173	89	1,490
Total expense	$ 53,271	$ 21,546	$ 17,973

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Borrowings (Tables)

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of long-term debt

The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2022 and 2021:


in thousands	Maturity Date	September 30, 2022		September 30, 2021
Senior Unsecured Term Loan	September 2022	$	—	$	50,000
6.750% Senior Notes (2025 Notes)	March 2025	211,195		229,555
5.875% Senior Notes (2027 Notes)	October 2027	357,255		363,255
7.250% Senior Notes (2029 Notes)	October 2029	350,000		350,000

Unamortized debt issuance costs		(7,280)		(8,983)
Total Senior Notes, net		911,170		983,827
Junior Subordinated Notes (net of unamortized accretion of $28,503 and $30,570 , respectively)	July 2036	72,270		70,203
Secured Revolving Credit Facility	February 2024(a)	—		—

Total debt, net		$	983,440	$	1,054,030

Schedule of maturities of long-term debt

As of September 30, 2022, the future maturities of our borrowings were as follows:


Fiscal Year Ended September 30,
in thousands
2023	$	—
2024	—
2025	211,195
2026	—
2027	357,255
Thereafter	450,773
Total	$	1,019,223

Schedule of 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

6.750% Senior Notes

March 2017

March 2025

5.875% Senior Notes

October 2017

October 2027

7.250% 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.

+ References

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+ Details