Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BEAZER HOMES USA INC | |
Entity Central Index Key | 915,840 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,673,487 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 84,399 | $ 139,805 |
Restricted cash | 12,637 | 13,443 |
Accounts receivable (net of allowance of $378 and $378, respectively) | 19,349 | 24,647 |
Owned inventory | 1,722,120 | 1,692,284 |
Investments in unconsolidated entities | 3,650 | 4,035 |
Deferred tax assets, net | 218,025 | 213,955 |
Property and equipment, net | 24,408 | 20,843 |
Goodwill | 10,605 | 9,751 |
Other assets | 8,197 | 9,339 |
Total assets | 2,103,390 | 2,128,102 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Trade accounts payable | 99,864 | 126,432 |
Other liabilities | 112,633 | 126,389 |
Total debt, net | 1,255,784 | 1,231,254 |
Total liabilities | 1,468,281 | 1,484,075 |
Stockholders’ equity: | ||
Preferred stock (par value $.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, 32,674,596 issued and outstanding and 33,522,046 issued and outstanding, respectively) | 33 | 34 |
Paid-in capital | 863,797 | 880,025 |
Accumulated deficit | (228,721) | (236,032) |
Total stockholders’ equity | 635,109 | 644,027 |
Total liabilities and stockholders’ equity | $ 2,103,390 | $ 2,128,102 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
ASSETS | ||
Allowances for accounts receivable | $ 378 | $ 378 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Debt (premium) discounts | (2,447) | (2,640) |
Debt issuance costs | $ 13,651 | $ 14,336 |
Preferred stock, par value (in US$ per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in US$ per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 63,000,000 | 63,000,000 |
Common stock, shares issued | 32,674,596 | 33,522,046 |
Common stock, shares outstanding | 32,674,596 | 33,522,046 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Total revenue | $ 402,040 | $ 372,489 |
Home construction and land sales expenses | 340,378 | 311,660 |
Inventory impairments and abandonments | 1,007 | 0 |
Gross profit | 60,655 | 60,829 |
Commissions | 15,737 | 14,356 |
General and administrative expenses | 38,642 | 37,285 |
Depreciation and amortization | 2,770 | 2,507 |
Operating income | 3,506 | 6,681 |
Equity in loss of unconsolidated entities | (64) | (101) |
Loss on extinguishment of debt | 0 | (25,904) |
Other expense, net | (42) | (3,145) |
(Loss) income from continuing operations before income taxes | 3,400 | (22,469) |
(Benefit) expense from income taxes | (3,922) | 108,106 |
Income (loss) from continuing operations | 7,322 | (130,575) |
Loss from discontinued operations, net of tax | (11) | (372) |
Net income (loss) | $ 7,311 | $ (130,947) |
Weighted average number of shares: | ||
Basic (in shares) | 31,967 | 32,055 |
Diluted (in shares) | 32,222 | 32,055 |
Basic and diluted earnings (loss) per share: | ||
Continuing Operations (in dollars per share) | $ 0.23 | $ (4.07) |
Discontinued Operations (in dollars per share) | 0 | (0.01) |
Total (in dollars per shares) | $ 0.23 | $ (4.08) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 7,311 | $ (130,947) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 2,770 | 2,507 |
Stock-based compensation expense | 2,114 | 2,610 |
Inventory impairments and abandonments | 1,007 | 450 |
Deferred and other income tax (benefit) expense | (4,070) | 107,795 |
Gain on sale of fixed assets | (35) | (65) |
Change in allowance for doubtful accounts | 0 | (1) |
Equity in loss of unconsolidated entities | 65 | 88 |
Cash distributions of income from unconsolidated entities | 320 | 50 |
Non-cash loss on extinguishment of debt | 0 | 3,173 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 5,298 | 4,520 |
Increase in inventory | (29,722) | (83,205) |
Decrease in other assets | 1,430 | 1,252 |
Decrease in trade accounts payable | (26,568) | (5,949) |
Decrease in other liabilities | (14,610) | (4,502) |
Net cash used in operating activities | (54,690) | (102,224) |
Cash flows from investing activities: | ||
Capital expenditures | (6,354) | (3,702) |
Proceeds from sale of fixed assets | 54 | 84 |
Investments in unconsolidated entities | 0 | (421) |
Net cash used in investing activities | (6,300) | (4,039) |
Cash flows from financing activities: | ||
Repayment of debt | (1,479) | (401,481) |
Proceeds from issuance of new debt | 0 | 400,000 |
Repayment of borrowings from credit facility | (75,000) | 0 |
Borrowings from credit facility | 100,000 | 0 |
Debt issuance costs | (400) | (5,649) |
Repurchase of common stock | (16,500) | 0 |
Tax payments for stock-based compensation awards | (1,850) | (1,322) |
Other financing activities | 7 | 0 |
Net cash provided by (used in) financing activities | 4,778 | (8,452) |
Decrease in cash, cash equivalents, and restricted cash | (56,212) | (114,715) |
Cash, cash equivalents, and restricted cash at beginning of period | 153,248 | 304,609 |
Cash, cash equivalents, and restricted cash at end of period | $ 97,036 | $ 189,894 |
Description of Business
Description of Business | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast. Our homes are designed to appeal to homeowners at different price points across various demographic segments and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate exceptional value and quality, while seeking to maximize our return on invested capital over the course of a housing cycle. For an additional description of our business, refer to Item 1 within our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 (2018 Annual Report). |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. As such, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. The results of the Company's consolidated operations presented herein for the three months ended December 31, 2018 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonal variations in our operations and other factors. Basis of Consolidation The accompanying condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Our net income (loss) is equivalent to our comprehensive income (loss), so we have not presented a separate statement of comprehensive income (loss). In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for all periods presented (see Note 16 for a further discussion of our discontinued operations). Our fiscal year 2019 began on October 1, 2018 and ends on September 30, 2019. Our fiscal year 2018 began on October 1, 2017 and ended on September 30, 2018. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. Business Combinations On July 13, 2018, the Company acquired substantially all of the assets, operations, and certain assumed liabilities of Venture Homes, a leading private homebuilder in the Atlanta market, for a purchase price of $61.3 million , net of cash acquired. As of December 31, 2018, $57.3 million of the purchase price had been paid, net of cash acquired, with the remaining $4.0 million due during the second quarter of fiscal 2019. The acquired assets consisted of more than 1,100 total owned or controlled lots within 27 single-family communities in the greater Atlanta metropolitan area. The acquired lots included a backlog of 48 homes and 6 model homes. The acquired assets and liabilities were recorded at their estimated fair values and resulted in inventory of $56.0 million and goodwill of $10.6 million , and other assets of $0.7 million as well as accounts payable of $5.5 million and other liabilities of $0.2 million . The purchase price accounting reflected above is preliminary and is based on estimates and assumptions that are subject to change within the measurement period, which is generally up to one year from the acquisition date pursuant to ASC 805. The purchase price allocation of Venture Homes is provisional pending completion of the fair value analysis of acquired assets and assumed liabilities. Share Repurchase Program On November 13, 2018, the Company announced that its Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. As part of this program, the Company executed an accelerated share repurchase agreement (ASR) on November 15, 2018 to repurchase an aggregate of $16.5 million of its outstanding common stock. During December 2018, the ASR was completed with a repurchase of approximately 1.6 million shares at an average price per share of $10.62 . As of December 31, 2018, the remaining availability of the share repurchase program was $33.5 million . Inventory Valuation Inventory assets are assessed for recoverability no less than quarterly in accordance with the policies described in Notes 2 and 5 to the audited consolidated financial statements within our 2018 Annual Report. Homebuilding inventories that are accounted for as held for development (projects in progress) include land and home construction assets grouped together as communities. Homebuilding inventories held for development are stated at cost (including direct construction costs, capitalized indirect costs, capitalized interest, and real estate taxes) unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. For communities that have been idled (land held for future development), all applicable interest and real estate taxes are expensed as incurred, and the inventory is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We record land held for sale at the lower of the carrying value or fair value less costs to sell. Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in Accounting Standards Codification Topic 606. • Identify the contract(s) with a customer • Identify the performance obligations • Determine the transaction price • Allocate the transaction price • Recognize revenue when the performance obligations are met The following table presents our total revenue disaggregated by revenue stream: Three Months Ended December 31, in thousands 2018 2017 Homebuilding revenue $ 400,982 $ 367,754 Land sales and other revenue 1,058 4,735 Total revenue (a) $ 402,040 $ 372,489 (a) Please see Note 14 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, and are considered deposits in-transit and classified as cash. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $13.5 million and $14.9 million as of December 31, 2018 and September 30, 2018, respectively. Of the customer liabilities outstanding as of September 30, 2018, $8.4 million were recognized in revenue during the three months ended December 31, 2018 upon closing of the related homes. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. In some periods, we also have other revenue related to broker fees as well as fees received for general contractor services that we perform on behalf of third parties. Revenue for broker and general contractor services are typically immaterial and are generally recognized as performance obligations are satisfied. Recent Accounting Pronouncements Revenue from Contracts with Customers. On October 1, 2018, we adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers , and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , collectively referred to as ASC 606. ASC 606 provides a new model for accounting for revenue arising from contracts with customers that supersedes most revenue recognition guidance. Under the new guidance, entities are required to recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled upon transferring control of goods or services to a customer. As part of our adoption of ASC 606, we applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Further, results for reporting periods beginning on or after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the previous accounting standards. The adoption of ASC 606 had no impact on opening retained earnings and did not materially affect the amount or timing of our revenue. Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires lessees to record most leases on their balance sheets. The timing and classification of lease-related expenses for lessees will depend on whether a lease is determined to be an operating lease or a finance lease using updated criteria within ASU 2016-02. Operating leases will result in straight-line expense (similar to current operating leases), while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Regardless of lease type, the lessee will recognize a right-of-use asset, representing the right to use the identified asset during the lease term, and a related lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the current lease accounting rules. ASU 2016-02 also requires significantly enhanced disclosures around an entity's leases and the related accounting. The guidance within ASU 2016-02 will be effective for the Company's fiscal year beginning October 1, 2019, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements (ASU 2018-11), which provides an optional transition method to apply the requirements of the new lease standard through a cumulative-effect adjustment in the period of adoption. The Company expects to adopt the standard on October 1, 2019 using the optional transition method. We continue to evaluate the impact of ASU 2016-02 on our consolidated financial statements. However, a large majority of our leases are for office space, which we have determined will be treated as operating leases under ASU 2016-02. As such, we anticipate recording a right-of-use asset and related lease liability for these leases. We do not anticipate any significant change to our statements of operations or cash flows as a result of adopting ASU 2016-02. Intangibles - Goodwill and Other. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 from the goodwill impairment test. This change will allow an entity to avoid calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination, thus reducing the cost and complexity of evaluating goodwill for impairment. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We do not believe the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements and disclosures. Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework (ASU 2018-13). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. We are currently assessing the impact of adopting the updated provisions. Internal-Use Software. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of our total cash balances between our condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Supplemental disclosure of cash activity: Interest payments $ 13,986 $ 10,766 Income tax payments 121 — Tax refunds received 1,148 39 Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 84,399 $ 177,812 Restricted cash 12,637 12,082 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 97,036 $ 189,894 |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 3 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Unconsolidated Entities As of December 31, 2018 , the Company participated in certain joint ventures and had investments in unconsolidated entities in which it had less than a controlling interest. The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of December 31, 2018 and September 30, 2018 : in thousands December 31, 2018 September 30, 2018 Beazer's investment in unconsolidated entities $ 3,650 $ 4,035 Total equity of unconsolidated entities 8,578 10,113 Total outstanding borrowings of unconsolidated entities 11,867 12,266 Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Equity in loss of unconsolidated entities $ (64 ) $ (101 ) For the three months ended December 31, 2018 and 2017 , there were no impairments related to investments in unconsolidated entities. Guarantees Historically, the Company's joint ventures typically obtained secured acquisition, development, and construction financing. In addition, the Company and its joint venture partners provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of December 31, 2018 and September 30, 2018 , the Company had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities. The Company and its joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate the Company to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During the three months ended December 31, 2018 and 2017 , the Company was not required to make any payments related to environmental indemnities. In assessing the need to record a liability for these guarantees, the Company considers its historical experience in being required to perform under the guarantees, the fair value of the collateral underlying these guarantees, and the financial condition of the applicable unconsolidated entities. In addition, the fair value of the collateral of unconsolidated entities is monitored to ensure that the related borrowings do not exceed the specified percentage of the value of the property securing the borrowings. As of December 31, 2018 , no liability was recorded for the contingent aspects of any guarantees that were determined to be reasonably possible but not probable. |
Inventory
Inventory | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of our owned inventory are as follows as of December 31, 2018 and September 30, 2018 : in thousands December 31, 2018 September 30, 2018 Homes under construction $ 478,539 $ 476,752 Development projects in progress 925,728 907,793 Land held for future development 83,177 83,173 Land held for sale 6,997 7,781 Capitalized interest 151,886 144,645 Model homes 75,793 72,140 Total owned inventory $ 1,722,120 $ 1,692,284 Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including the cost of the underlying lot. We had 223 (with a cost of $83.9 million ) and 240 (with a cost of $84.8 million ) substantially completed homes that were not subject to a sales contract (spec homes) as of December 31, 2018 and September 30, 2018 , respectively. Development projects in progress consist principally of land and land improvement costs. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract. Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable interest and real estate taxes on land held for future development are expensed as incurred. Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets and land is classified as held for sale once certain criteria are met. These assets are recorded at the lower of the carrying value or fair value less costs to sell. The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale (see Note 6 for additional information on capitalized interest). Total owned inventory by reportable segment is presented in the table below as of December 31, 2018 and September 30, 2018 : in thousands Projects in Progress (a) Land Held for Future Development Land Held for Sale Total Owned Inventory December 31, 2018 West Segment $ 785,702 $ 58,129 $ — $ 843,831 East Segment 277,300 14,077 3,906 295,283 Southeast Segment 357,172 10,971 3,091 371,234 Corporate and unallocated (b) 211,772 — — 211,772 Total $ 1,631,946 $ 83,177 $ 6,997 $ 1,722,120 September 30, 2018 West Segment $ 763,453 $ 58,125 $ — $ 821,578 East Segment 280,761 14,077 4,580 299,418 Southeast Segment 358,126 10,971 3,177 372,274 Corporate and unallocated (b) 198,990 — 24 199,014 Total $ 1,601,330 $ 83,173 $ 7,781 $ 1,692,284 (a) Projects in progress include homes under construction, development projects in progress, capitalized interest, and model home categories from the preceding table. (b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Land held for sale amount includes parcels held by our discontinued operations. Inventory Impairments When conducting our community level review for the recoverability of inventory related to projects in progress, we establish a quarterly “watch list” comprised of communities that carry profit margins in backlog and in our forecast that are below a minimum threshold of profitability. We also include in our watch list communities with recent closings that have gross margins less than a specific threshold. Each community is first evaluated qualitatively to determine if there are temporary factors driving the low profitability levels. Following our qualitative evaluation, communities with more than ten homes remaining to close are subjected to substantial additional financial and operational analysis and review that considers the competitive environment and other factors contributing to gross margins below our watch list threshold. Our assumptions about future home sales prices and absorption rates require significant judgment because the residential homebuilding industry is cyclical and is highly sensitive to changes in economic conditions. For certain communities, we determined that it is prudent to reduce sales prices or further increase sales incentives in response to a variety of factors, including competitive market conditions in those specific submarkets for the product and locations of these communities. For communities where the current competitive and market dynamics indicate that these factors may be other than temporary, which may call into question the recoverability of our investment, a formal impairment analysis is performed. The formal impairment analysis consists of both qualitative competitive market analyses and a quantitative analysis reflecting market and asset specific information. Market deterioration that exceeds our initial estimates may lead us to incur impairment charges on previously impaired homebuilding assets, in addition to homebuilding assets not currently impaired but for which indicators of impairment may arise if markets deteriorate. For the quarter ended December 31, 2018 , there were four communities that were included in our watch list that required further analysis to be performed after considering the number of lots remaining in each community and certain other qualitative factors. This additional analysis led to a $1.0 million impairment charge for one of these communities, principally due to a reduction in price that is other than temporary based on current competitive and market dynamics. For the quarter ended December 31, 2017 , there were two communities on our quarterly watch list. However, none of these communities required further impairment analysis to be performed after considering certain qualitative factors. The table below summarizes the results of our undiscounted cash flow analyses by reportable segment, where applicable, for the quarter ended December 31, 2018 (the period that such analyses were required): $ in thousands Undiscounted Cash Flow Analyses Prepared Segment (a) # of (b) # of (c) Pre-analysis Aggregate (d) Quarter Ended December 31, 2018 West 3 — $ — — % Southeast 1 1 2,225 71.3 % Corporate and unallocated (e) — — 387 N/A (f) Total 4 1 $ 2,612 (a) We have elected to aggregate our disclosure at the reportable segment level because we believe this level of disclosure is most meaningful to the readers of our financial statements. (b) Number of communities in this column excludes communities that are closing out and have less than ten closings remaining. (c) Number of communities in this column is lower than the number of communities on our watch list because it excludes communities due to certain qualitative considerations that would imply that the low profitability levels are temporary in nature. (d) An aggregate undiscounted cash flow as a percentage of book value under 100% would indicate a possible impairment and is consistent with our "watch list" methodology. The book value of each project assessed for recoverability on an undiscounted cash flow basis includes all inventory costs applicable to the project as of the date of the analysis, including capitalized interest and indirects. (e) Amount represents capitalized interest and indirects balance related to the communities for which an undiscounted cash flow analysis was prepared. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. (f) N/A - not applicable. The following table presents, by reportable segment, details of the impairment charges taken on projects in progress for the periods presented: $ in thousands Results of Discounted Cash Flow Analyses Prepared Segment # of # of Lots Impairment Estimated Fair Quarter Ended December 31, 2018 Southeast 1 15 $ 858 $ 1,367 Corporate and unallocated (a) — — 149 238 Total 1 15 $ 1,007 $ 1,605 (a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. The following table presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities we impaired during the periods presented: $ in thousands Three Months Ended Unobservable Inputs December 31, 2018 Average selling price $ 412 Closings per community per month 1 - 2 Discount rate 16.8 % Impairments on land held for sale generally represent write downs of these properties to net realizable value less estimated costs to sell and are based on current market conditions and our review of recent comparable transactions. Our assumptions about land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions. We calculate the estimated fair value 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. From time-to-time, we also determine that the proper course of action with respect to a community is to not exercise an option and to write off the deposit securing the option takedown and the related pre-acquisition costs, as applicable. In determining whether to abandon lots or lot option contracts, our evaluation is primarily based upon the expected cash flows from the property. Additionally, in certain limited instances, we are forced to abandon lots due to permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record a charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. Abandonment charges generally relate to our decision to abandon lots or not exercise certain option contracts that are not projected to produce adequate results, no longer fit with our long-term strategic plan or, in limited circumstances, are not suitable for building due to regulatory or environmental restrictions that are enacted. The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Projects in Progress: Southeast $ 858 $ — Corporate and unallocated (a) 149 — Total impairment charges on projects in progress $ 1,007 $ — Discontinued Operations: Land Held for Sale — 450 Total impairment and abandonment charges $ 1,007 $ 450 (a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. Lot Option Agreements and Variable Interest Entities (VIE) As previously discussed, we also have access to land inventory through lot option contracts, which generally enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period of time at a specified price. Under lot option contracts, purchase of the properties is contingent upon satisfaction of certain requirements by us and the sellers. Our liability under option contracts is generally limited to forfeiture of the non-refundable deposits, letters of credit, and other non-refundable amounts incurred. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option contracts. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all. The following table provides a summary of our interests in lot option agreements as of December 31, 2018 and September 30, 2018 : in thousands Deposits & Non-refundable Pre-acquisition Costs Incurred Remaining Obligation As of December 31, 2018 Unconsolidated lot option agreements $ 71,644 $ 367,026 As of September 30, 2018 Unconsolidated lot option agreements $ 72,191 $ 383,150 |
Interest
Interest | 3 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Interest | Interest Our ability to capitalize interest incurred during the three months ended December 31, 2018 and 2017 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Capitalized interest in inventory, beginning of period $ 144,645 $ 139,203 Interest incurred 24,921 25,555 Capitalized interest impaired (115 ) — Interest expense not qualified for capitalization and included as other expense (a) (242 ) (3,435 ) Capitalized interest amortized to home construction and land sales expenses (b) (17,323 ) (16,476 ) Capitalized interest in inventory, end of period $ 151,886 $ 144,847 (a) The amount of interest we are able to capitalize is dependent upon our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Borrowings
Borrowings | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings As of December 31, 2018 and September 30, 2018 , we had the following debt, net of premium/discounts and unamortized debt issuance costs: in thousands Maturity Date December 31, 2018 September 30, 2018 8 3/4% Senior Notes March 2022 $ 500,000 $ 500,000 7 1/4% Senior Notes February 2023 24,834 24,834 6 3/4% Senior Notes March 2025 250,000 250,000 5 7/8% Senior Notes October 2027 400,000 400,000 Unamortized debt premium, net 2,447 2,640 Unamortized debt issuance costs (13,651 ) (14,336 ) Total Senior Notes, net 1,163,630 1,163,138 Junior Subordinated Notes (net of unamortized accretion of $36,253 and $36,770, respectively) July 2036 64,520 64,003 Revolving Credit Facility February 2021 25,000 — Other Secured Notes payable Various Dates 2,634 4,113 Total debt, net $ 1,255,784 $ 1,231,254 Secured Revolving Credit Facility The Secured Revolving Credit Facility (the Facility) provides working capital and letter of credit capacity. In October 2018, the Company executed a Fifth Amendment to the Facility, extending the termination date of the Facility from February 15, 2020 to February 15, 2021 and increasing the maximum aggregate amount of commitments under the Facility, including borrowings and letters of credit, from $200.0 million to $210.0 million . The aggregate collateral ratio (as defined by the underlying Credit Agreement) remained at 4.00 to 1.00 and the after-acquired exclusionary condition (also as defined by the underlying Credit Agreement) remained at $800.0 million . The Facility continues to be with three lenders. For additional discussion of the Facility, refer to Note 8 to the audited consolidated financial statements within our 2018 Annual Report. As of December 31, 2018 , $25.0 million of borrowings and $1.5 million letters of credit were outstanding under the Facility, resulting in a remaining capacity of $183.5 million . As of September 30, 2018 , no borrowings and no letters of credit were outstanding under the Facility, resulting in a remaining capacity of $200.0 million . The Facility requires compliance with certain covenants, including negative covenants and financial maintenance covenants. As of December 31, 2018 , the Company was in compliance with all such covenants. Letter of Credit Facilities We have entered into stand-alone, cash-secured letter of credit agreements with banks to maintain our pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Facility). As of December 31, 2018 and September 30, 2018 , we had letters of credit outstanding under these additional facilities of $11.2 million and $10.4 million , respectively, all of which were secured by cash collateral in restricted accounts. The Company may enter into additional arrangements to provide additional letter of credit capacity. In May 2018, the Company entered into a reimbursement agreement, which provides for the issuance of performance letters of credit, and an unsecured credit agreement that provides for the issuance of up to $50.0 million of standby letters of credit to backstop the Company's obligations under the reimbursement agreement (collectively, the "Bilateral Facility"). The Bilateral Facility will terminate on June 10, 2021. As of December 31, 2018 , the total stated amount of performance letters of credit issued under the reimbursement agreement was $28.5 million (and the stated amount of the backstop standby letter of credit issued under the credit agreement was $30.0 million ). The Company may enter into additional arrangements to provide greater letter of credit capacity. Senior Notes Our Senior Notes are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of our significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Facility. Each guarantor subsidiary is a 100% owned subsidiary of Beazer Homes. See Note 15 for further information. All unsecured Senior Notes rank equally in right of payment with all of our existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, including indebtedness under the Facility, if outstanding, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes, but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture. The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and to make certain investments. Compliance with our Senior Note covenants does not significantly impact our operations. We were in compliance with the covenants contained in the indentures of all of our Senior Notes as of December 31, 2018 . For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 8 3/4% Senior Notes September 2016 March 2022 Callable at any time prior to March 15, 2019, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2019, callable at a redemption price equal to 104.375% of the principal amount; on or after March 15, 2020, callable at a redemption price equal to 102.188% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 100.000% of the principal amount plus, in each case, accrued and unpaid interest 7 1/4% Senior Notes February 2013 February 2023 Callable at any time on or after February 1, 2018, callable at a redemption price equal to 103.625% of the principal amount; on or after February 1, 2019, callable at a redemption price equal to 102.417% of the principal amount; on or after February 1, 2020, callable at a redemption price equal to 101.208% of the principal amount; on or after February 1, 2021, callable at 100.000% of the principal amount plus, in each case, accrued and unpaid interest 6 3/4% Senior Notes March 2017 March 2025 Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest 5 7/8% Senior Notes October 2017 October 2027 Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest Junior Subordinated Notes Our unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036. The Junior Subordinated Notes are redeemable at par and paid interest at a fixed rate of 7.987% for the first ten years ending July 30, 2016. The securities now have a floating interest rate as defined in the Junior Subordinated Notes Indenture, which was a weighted-average of 4.97% as of December 31, 2018 (because the rate on the portion of the Junior Subordinated Notes that was modified, as discussed below, is subject to a floor). The obligations relating to these notes are subordinated to the Facility and the Senior Notes. In January 2010, we modified the terms of $75.0 million of these notes and recorded them at their then estimated fair value. Over the remaining life of the Junior Subordinated Notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of December 31, 2018 , the unamortized accretion was $36.3 million and will be amortized over the remaining life of the notes. As of December 31, 2018 , we were in compliance with all covenants under our Junior Subordinated Notes. Other Secured Notes Payable We periodically acquire land through the issuance of notes payable. As of December 31, 2018 and September 30, 2018 , we had outstanding notes payable of $2.6 million and $4.1 million , respectively, primarily related to land acquisitions. These secured notes payable have varying expiration dates in 2019, a weighted-average fixed interest rate of 1.88% as of December 31, 2018 , and are secured by the real estate to which they relate. The agreements governing these other secured notes payable contain various affirmative and negative covenants. There can be no assurance that we will be able to obtain any future waivers or amendments that may become necessary without significant additional cost or at all. In each instance, however, a covenant default can be cured by repayment of the indebtedness. |
Contingencies
Contingencies | 3 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated. Warranty Reserves We currently provide a limited warranty ranging from one to two years covering workmanship and materials per our defined quality standards. In addition, we provide a limited warranty for up to ten years covering only certain defined structural element failures. Our homebuilding work is performed by subcontractors who typically must agree to indemnify us with regard to their work and provide certificates of insurance demonstrating that they have met our insurance requirements and have named us as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. In addition, we maintain insurance coverage related to our construction efforts that can result in recoveries of warranty and construction defect costs above certain specified limits. Warranty reserves are included in other liabilities within the condensed consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the condensed consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review includes a quarterly analysis of the historical data and trends in warranty expense by division. Such analysis considers market-specific factors such as warranty experience, the number of home closings, the prices of homes, product mix, and other data in estimating warranty reserves. In addition, the analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in historical data and trends. While estimated warranty liabilities are adjusted each reporting period based on the results of our quarterly analyses, we may not accurately predict actual warranty costs, which could lead to significant changes in the reserve. Changes in warranty reserves are as follows for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Balance at beginning of period $ 15,331 $ 18,091 Accruals for warranties issued (a) 2,305 4,212 Changes in liability related to warranties existing in prior periods (1,874 ) (2,296 ) Payments made (2,330 ) (4,191 ) Balance at end of period $ 13,432 $ 15,816 (a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed, and the rates of accrual per home estimated as a percentage of the selling price of the home. Insurance Recoveries The Company has insurance policies that provide for the reimbursement of certain warranty costs incurred above specified thresholds for each period covered. Amounts recorded for anticipated insurance recoveries are reflected within the condensed consolidated statements of income as a reduction of home construction expenses. Amounts not yet received from our insurer are recorded on a gross basis, without any reduction for the associated warranty expense, within accounts receivable on our condensed consolidated balance sheets. Litigation In the normal course of business, we are subject to various lawsuits. We cannot predict or determine the timing or final outcome of these lawsuits or the effect that any adverse findings or determinations in pending lawsuits may have on us. In addition, an estimate of possible loss or range of loss, if any, cannot presently be made with respect to certain of these pending matters. An unfavorable determination in any of the pending lawsuits could result in the payment by us of substantial monetary damages that may not be fully covered by insurance. Further, the legal costs associated with the lawsuits and the amount of time required to be spent by management and our Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations, or cash flows. Other Matters We and certain of our subsidiaries have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance. In our opinion, based on our current assessment, the ultimate resolution of these matters will not have a material adverse effect on our financial condition, results of operations, or cash flows. We have an accrual of $3.3 million and $3.7 million in other liabilities on our condensed consolidated balance sheets related to litigation and other matters, excluding warranty, as of December 31, 2018 and September 30, 2018 , respectively. We had outstanding letters of credit and performance bonds of approximately $41.2 million and $250.1 million , respectively, as of December 31, 2018 , related principally to our obligations to local governments to construct roads and other improvements in various developments. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of the dates presented, we had assets on our condensed consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and • Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. Certain of our assets are required to be recorded at fair value on a recurring basis. The fair value of our deferred compensation plan assets is based on market-corroborated inputs (Level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recovered. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value on assets deemed to be impaired is determined based upon the type of asset being evaluated. Fair value of our owned inventory assets, when required to be calculated, is further discussed within Notes 2 and 5. The fair value of our investments in unconsolidated entities is determined primarily using a discounted cash flow model to value the underlying net assets of the respective entities. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3. During the three months ended December 31, 2018, we recorded impairments of $1.0 million on projects in process compared to $0.5 million of impairments for land held for sale during the three months ended December 31, 2017. 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 our assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented: in thousands Level 1 Level 2 Level 3 Total As of December 31, 2018 Deferred compensation plan assets (a) $ — $ 1,760 $ — $ 1,760 Development projects in progress (b) — — 1,605 1,605 As of September 30, 2018 Deferred compensation plan assets (a) $ — $ 1,578 $ — $ 1,578 Development projects in progress (b) — — 1,312 1,312 Land held for sale (b) — — 1,724 1,724 Unconsolidated entity investments (b) — — 80 80 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirects related to the asset. The fair value of our cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, amounts due under the Facility (if outstanding), and other secured notes payable approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value. The following table presents the carrying value and estimated fair value of certain of our other financial liabilities as of December 31, 2018 and September 30, 2018 : As of December 31, 2018 As of September 30, 2018 in thousands Carrying (a) Fair Value Carrying (a) Fair Value Senior Notes (b) $ 1,163,630 $ 1,048,346 $ 1,163,138 $ 1,096,214 Junior Subordinated Notes 64,520 64,520 64,003 64,003 Total $ 1,228,150 $ 1,112,866 $ 1,227,141 $ 1,160,217 (a) Carrying amounts are net of unamortized debt premiums/discounts, debt issuance costs, or accretion. (b) The estimated fair value for our publicly-held Senior Notes has been determined using quoted market rates (Level 2). |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision The Company's income tax provision for quarterly interim periods is based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items. The total income tax provision, including discontinued operations, was a tax benefit of $3.9 million for the three months ended December 31, 2018 , compared to an income tax expense of $108.0 million for the three months ended December 31, 2017 . The current fiscal year income tax benefit was primarily driven by the completion of work necessary to claim an additional $5.3 million in tax credits related to prior fiscal years, partially offset by income from continuing operations and discrete impacts related to stock-based compensation. The tax expense for the three months ended December 31, 2017 was primarily driven by the remeasurement of the Company's deferred tax assets as a result of the enactment of the Tax Cuts and Jobs Act and several discrete tax items, including stock-based compensation. These items were partially offset by the loss incurred from continuing operations. Deferred Tax Assets and Liabilities As of December 31, 2018, our net deferred tax asset is comprised of various tax attributes that includes $9.6 million of minimum tax credit carryforwards. Beginning with the fiscal 2019 tax return, the Company will be able to make cash refund claims for significant portions of these credits due to the elimination of the alternative minimum tax in the Tax Cuts and Jobs Act. The Company continues to evaluate its deferred tax assets each period to determine if a valuation allowance is required based on whether it is more likely than not that some portion of these deferred tax assets will not be realized. As of December 31, 2018 , management concluded that it is more likely than not that a substantial portion of our deferred tax assets will be realized. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in the estimate of our deferred tax assets that may be realized in the future. Our conclusions on the valuation allowance and Internal Revenue Code Section 382 limitations related to our deferred tax assets remain consistent with the determinations we made during the period ended September 30, 2018 , and such conclusions are based on similar company specific and industry factors to those discussed in Note 13 to the audited consolidated financial statements within our 2018 Annual Report. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. We recognized $2.1 million and $2.6 million of stock-based compensation expense related to stock options and restricted stock awards for the three months ended December 31, 2018 and December 31, 2017 , respectively. Stock Options Following is a summary of stock option activity for the three months ended December 31, 2018: Three Months Ended December 31, 2018 Shares Weighted Average Outstanding at beginning of period 533,052 $ 14.26 Granted 25,230 10.38 Exercised (1,000 ) 7.56 Cancelled (1,319 ) 11.53 Outstanding at end of period 555,963 $ 14.10 Exercisable at end of period 504,092 $ 14.13 Vested or expected to vest in the future 552,799 $ 14.13 As of December 31, 2018 and September 30, 2018 , total unrecognized compensation cost related to unvested stock options was $0.3 million and $0.2 million , respectively. The cost remaining as of December 31, 2018 is expected to be recognized over a weighted-average period of 1.7 years . Restricted Stock Awards During the three months ended December 31, 2018 , we issued time-based restricted stock awards that vest ratably over three years on each anniversary from the grant date and performance-based restricted stock awards with a payout subject to the achievement of performance and market conditions over a three-year period. Following is a summary of restricted stock activity for the three months ended December 31, 2018: Three Months Ended December 31, 2018 Performance-Based Restricted Shares Time-Based Restricted Shares Total Restricted Shares Beginning of period 644,785 431,783 1,076,568 Granted (a) 467,819 441,991 909,810 Vested (a) (309,843 ) (196,246 ) (506,089 ) Forfeited (7,020 ) (21,329 ) (28,349 ) End of period 795,741 656,199 1,451,940 (a) Grant and vesting activity during the three months ended December 31, 2018 include 86,050 shares that were issued above target based on the performance level achieved under performance-based restricted stock vesting in the current period. As of December 31, 2018 and September 30, 2018 , total unrecognized compensation cost related to unvested restricted stock awards was $14.8 million and $8.8 million , respectively. The remaining cost as of December 31, 2018 is expected to be recognized over a weighted average period of 2.2 years . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted income (loss) per share adjusts the basic income (loss) per share for the effects of any potentially dilutive securities in periods in which the Company has net income and such effects are dilutive under the treasury stock method. Following is a summary of the components of basic and diluted income (loss) per share for the periods presented: Three Months Ended December 31, in thousands, except per share data 2018 2017 Numerator: Income (loss) from continuing operations $ 7,322 $ (130,575 ) Loss from discontinued operations, net of tax (11 ) (372 ) Net income (loss) $ 7,311 $ (130,947 ) Denominator: Basic weighted-average shares 31,967 32,055 Dilutive effect of restricted stock awards 244 — Dilutive effect of stock options 11 — Diluted weighted-average shares (a) 32,222 32,055 Basic and diluted income (loss) per share: Continuing operations $ 0.23 $ (4.07 ) Discontinued operations — (0.01 ) Total $ 0.23 $ (4.08 ) (a) The following potentially dilutive shares were excluded from the calculation of diluted income (loss) per share as a result of their anti-dilutive effect. Due to the reported net loss for the three months ended December 31, 2017, all common stock equivalents were excluded from the computation of diluted loss per share for that period because inclusion would have resulted in anti-dilution. Three Months Ended December 31, in thousands 2018 2017 Stock options 493 556 Time-based restricted stock 195 828 Performance-based restricted stock — 628 |
Other Liabilities
Other Liabilities | 3 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities include the following as of December 31, 2018 and September 30, 2018 : in thousands December 31, 2018 September 30, 2018 Accrued interest $ 24,217 $ 14,401 Accrued bonus and deferred compensation 20,236 41,508 Customer deposits 13,462 14,903 Accrued warranty expense 13,432 15,331 Litigation accrual 3,348 3,656 Income tax liabilities 856 710 Other 37,082 35,880 Total $ 112,633 $ 126,389 |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We currently operate in 13 states that are grouped into three homebuilding segments based on geography. Revenues from our homebuilding segments are derived from the sale of homes that we construct and from land and lot sales. Our reportable segments have been determined on a basis that is used internally by management for evaluating segment performance and resource allocations. We have considered the applicable aggregation criteria and have combined our homebuilding operations into three reportable segments as follows: West : Arizona, California, Nevada, and Texas East : Delaware, Indiana, Maryland, New Jersey (a) , Tennessee, and Virginia Southeast : Florida, Georgia, North Carolina, and South Carolina (a) During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, it is included in this listing because the segment information below continues to include New Jersey. Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding and land sales and other revenue less home construction, land development, and land sales expense, commission expense, depreciation and amortization, and certain G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are those described in Note 2 to the consolidated financial statements within our 2018 Annual Report. The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Revenue West $ 208,944 $ 177,971 East 88,746 88,853 Southeast 104,350 105,665 Total revenue $ 402,040 $ 372,489 Three Months Ended December 31, in thousands 2018 2017 Operating income (a) West $ 24,261 $ 21,110 East 5,395 7,396 Southeast 1,380 6,910 Segment total 31,036 35,416 Corporate and unallocated (b) (27,530 ) (28,735 ) Total operating income $ 3,506 $ 6,681 Three Months Ended December 31, in thousands 2018 2017 Depreciation and amortization West $ 1,278 $ 1,256 East 538 439 Southeast 610 579 Segment total 2,426 2,274 Corporate and unallocated (b) 344 233 Total depreciation and amortization $ 2,770 $ 2,507 (a) Operating income is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5). (b) Corporate and unallocated operating loss includes amortization of capitalized interest; movement in capitalized indirects; expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing; and other amounts that are not allocated to our operating segments. Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Capital Expenditures West $ 2,651 $ 1,776 East 762 595 Southeast 859 743 Corporate and unallocated 2,082 588 Total capital expenditures $ 6,354 $ 3,702 The following table presents assets by segment as of December 31, 2018 and September 30, 2018 : in thousands December 31, 2018 September 30, 2018 Assets West $ 855,823 $ 835,230 East 305,232 335,474 Southeast 390,934 414,685 Corporate and unallocated (a) 551,401 542,713 Total assets $ 2,103,390 $ 2,128,102 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirects, and other items that are not allocated to the segments. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 3 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor information | Supplemental Guarantor Information As discussed in Note 7, the Company's obligations to pay principal, premium, if any, and interest under certain debt agreements are guaranteed on a joint and several basis by substantially all of the Company's subsidiaries. Some of the immaterial subsidiaries do not guarantee the Senior Notes or the Facility. The guarantees are full and unconditional and the guarantor subsidiaries are 100% owned by Beazer Homes USA, Inc. The following unaudited financial information presents the line items of the Company's unaudited condensed consolidated financial statements separated by amounts related to the parent issuer, guarantor subsidiaries, non-guarantor subsidiaries, and consolidating adjustments as of or for the periods presented. Beazer Homes USA, Inc. Condensed Consolidating Balance Sheet Information December 31, 2018 (Unaudited) in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated ASSETS Cash and cash equivalents $ 82,115 $ 2,267 $ 17 $ — $ 84,399 Restricted cash 11,897 740 — — 12,637 Accounts receivable (net of allowance of $378) — 19,349 — — 19,349 Owned inventory — 1,722,120 — — 1,722,120 Investments in unconsolidated entities 773 2,877 — — 3,650 Deferred tax assets, net 218,025 — — — 218,025 Property and equipment, net — 24,408 — — 24,408 Investments in subsidiaries 636,800 — — (636,800 ) — Intercompany 963,614 (6,858 ) 1,686 (958,442 ) — Goodwill — 10,605 — — 10,605 Other assets 982 7,215 — — 8,197 Total assets $ 1,914,206 $ 1,782,723 $ 1,703 $ (1,595,242 ) $ 2,103,390 LIABILITIES AND STOCKHOLDERS’ EQUITY Trade accounts payable $ — $ 99,864 $ — $ — $ 99,864 Other liabilities 24,261 88,359 13 — 112,633 Intercompany 1,686 956,756 — (958,442 ) — Total debt (net of premium and debt issuance costs) 1,253,150 2,634 — — 1,255,784 Total liabilities 1,279,097 1,147,613 13 (958,442 ) 1,468,281 Stockholders’ equity 635,109 635,110 1,690 (636,800 ) 635,109 Total liabilities and stockholders’ equity $ 1,914,206 $ 1,782,723 $ 1,703 $ (1,595,242 ) $ 2,103,390 Beazer Homes USA, Inc. Condensed Consolidating Balance Sheet Information September 30, 2018 (Unaudited) in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated ASSETS Cash and cash equivalents $ 93,875 $ 45,355 $ 575 $ — $ 139,805 Restricted cash 10,921 2,522 — — 13,443 Accounts receivable (net of allowance of $378) — 24,647 — — 24,647 Owned inventory — 1,692,284 — — 1,692,284 Investments in unconsolidated entities 773 3,262 — — 4,035 Deferred tax assets, net 213,955 — — — 213,955 Property and equipment, net — 20,843 — — 20,843 Investments in subsidiaries 645,086 — — (645,086 ) — Intercompany 922,525 — 2,304 (924,829 ) — Goodwill — 9,751 — — 9,751 Other assets 694 8,626 19 — 9,339 Total assets $ 1,887,829 $ 1,807,290 $ 2,898 $ (1,569,915 ) $ 2,128,102 LIABILITIES AND STOCKHOLDERS’ EQUITY Trade accounts payable $ — $ 126,432 $ — $ — $ 126,432 Other liabilities 14,357 111,906 126 — 126,389 Intercompany 2,304 922,525 — (924,829 ) — Total debt (net of premium and debt issuance costs) 1,227,141 4,113 — — 1,231,254 Total liabilities 1,243,802 1,164,976 126 (924,829 ) 1,484,075 Stockholders’ equity 644,027 642,314 2,772 (645,086 ) 644,027 Total liabilities and stockholders’ equity $ 1,887,829 $ 1,807,290 $ 2,898 $ (1,569,915 ) $ 2,128,102 Beazer Homes USA, Inc. Consolidating Statements of Operations (Unaudited) in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated Three Months Ended December 31, 2018 Total revenue $ — $ 402,040 $ 115 $ (115 ) $ 402,040 Home construction and land sales expenses 17,323 323,170 — (115 ) 340,378 Inventory impairments and abandonments 115 892 — — 1,007 Gross (loss) profit (17,438 ) 77,978 115 — 60,655 Commissions — 15,737 — — 15,737 General and administrative expenses — 38,646 (4 ) — 38,642 Depreciation and amortization — 2,770 — — 2,770 Operating (loss) income (17,438 ) 20,825 119 — 3,506 Equity in loss of unconsolidated entities — (64 ) — — (64 ) Other (expense) income, net (242 ) 204 (4 ) — (42 ) (Loss) income from continuing operations before income taxes (17,680 ) 20,965 115 — 3,400 Expense (benefit) from income taxes 20,385 (24,336 ) 29 — (3,922 ) Equity in income of subsidiaries 45,387 — — (45,387 ) — Income from continuing operations 7,322 45,301 86 (45,387 ) 7,322 Loss from discontinued operations, net of tax — (7 ) (4 ) — (11 ) Equity in loss of subsidiaries from discontinued operations (11 ) — — 11 — Net income $ 7,311 $ 45,294 $ 82 $ (45,376 ) $ 7,311 in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated Three Months Ended December 31, 2017 Total revenue $ — $ 372,489 $ 14 $ (14 ) $ 372,489 Home construction and land sales expenses 16,468 295,206 — (14 ) 311,660 Gross (loss) profit (16,468 ) 77,283 14 — 60,829 Commissions — 14,356 — — 14,356 General and administrative expenses — 37,244 41 — 37,285 Depreciation and amortization — 2,507 — — 2,507 Operating (loss) income (16,468 ) 23,176 (27 ) — 6,681 Equity in loss of unconsolidated entities — (101 ) — — (101 ) Loss on extinguishment of debt (25,904 ) — — — (25,904 ) Other (expense) income, net (3,435 ) 296 (6 ) — (3,145 ) (Loss) income from continuing operations before income taxes (45,807 ) 23,371 (33 ) — (22,469 ) (Benefit) expense from income taxes (12,185 ) 120,303 (12 ) — 108,106 Equity in loss of subsidiaries (96,953 ) — — 96,953 — Loss from continuing operations (130,575 ) (96,932 ) (21 ) 96,953 (130,575 ) Loss from discontinued operations — (369 ) (3 ) — (372 ) Equity in loss of subsidiaries from discontinued operations (372 ) — — 372 — Net loss $ (130,947 ) $ (97,301 ) $ (24 ) $ 97,325 $ (130,947 ) Beazer Homes USA, Inc. Condensed Consolidating Statements of Cash Flow Information (Unaudited) in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated Three Months Ended December 31, 2018 Net cash used in operating activities $ (31,908 ) $ (22,756 ) $ (26 ) $ — $ (54,690 ) Cash flows from investing activities: Capital expenditures — (6,354 ) — — (6,354 ) Proceeds from sale of fixed assets — 54 — — 54 Return of capital from unconsolidated entities 532 — (532 ) — — Advances to/from subsidiaries 21,204 — — (21,204 ) — Net cash provided by (used in) investing activities 21,736 (6,300 ) (532 ) (21,204 ) (6,300 ) Cash flows from financing activities: Repayment of debt (11 ) (1,468 ) — — (1,479 ) Repayment of borrowings from credit facility (75,000 ) — — — (75,000 ) Borrowings from credit facility 100,000 — — — 100,000 Debt issuance costs (400 ) — — — (400 ) Repurchase of common stock (16,500 ) — — — (16,500 ) Tax payments for stock-based compensation awards (1,850 ) — — — (1,850 ) Advances to/from subsidiaries — (21,204 ) — 21,204 — Other financing activities 7 — — — 7 Net cash provided by (used in) financing activities 6,246 (22,672 ) — 21,204 4,778 Decrease in cash, cash equivalents, and restricted cash (3,926 ) (51,728 ) (558 ) — (56,212 ) Cash, cash equivalents, and restricted cash at beginning of period 104,796 47,877 575 — 153,248 Cash, cash equivalents, and restricted cash at end of period $ 100,870 $ (3,851 ) $ 17 $ — $ 97,036 in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated Three Months Ended December 31, 2017 Net cash provided by (used in) operating activities $ 91,465 $ (193,721 ) $ 32 $ — $ (102,224 ) Cash flows from investing activities: Capital expenditures — (3,702 ) — — (3,702 ) Proceeds from sale of fixed assets — 84 — — 84 Investments in unconsolidated entities — (421 ) — — (421 ) Advances to/from subsidiaries (187,451 ) — (26 ) 187,477 — Net cash used in investing activities (187,451 ) (4,039 ) (26 ) 187,477 (4,039 ) Cash flows from financing activities: Repayment of debt (400,012 ) (1,469 ) — — (401,481 ) Proceeds from issuance of new debt 400,000 — — — 400,000 Debt issuance costs (5,649 ) — — — (5,649 ) Tax payments for stock-based compensation awards (1,322 ) — — — (1,322 ) Advances to/from subsidiaries — 186,563 — (186,563 ) — Other financing activities — — — — — Net cash (used in) provided by financing activities (6,983 ) 185,094 — (186,563 ) (8,452 ) (Decrease) increase in cash, cash equivalents, and restricted cash (102,969 ) (12,666 ) 6 914 (114,715 ) Cash, cash equivalents, and restricted cash at beginning of period 294,192 16,854 724 (7,161 ) 304,609 Cash, cash equivalents, and restricted cash at end of period $ 191,223 $ 4,188 $ 730 $ (6,247 ) $ 189,894 |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations We continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase stockholder value. This review entails an evaluation of both external market factors and our position in each market and over time has resulted in the decision to discontinue certain of our homebuilding operations. During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, the results of our New Jersey division are not included in the discontinued operations information shown below. We have classified the results of operations of our discontinued operations separately in the accompanying condensed consolidated statements of operations for all periods presented. There were no material assets or liabilities related to our discontinued operations as of December 31, 2018 or September 30, 2018 . Discontinued operations were not segregated in the condensed consolidated statements of cash flows. Therefore, amounts for certain captions in the condensed consolidated statements of cash flows will not agree with the respective data in the condensed consolidated statements of operations. The results of our discontinued operations in the condensed consolidated statements of operations for the periods presented were as follows: Three Months Ended December 31, in thousands 2018 2017 Total revenue $ 55 $ 625 Home construction and land sales expenses 33 667 Inventory impairments and lot option abandonments — 450 Gross profit (loss) 22 (492 ) General and administrative expenses 33 16 Operating loss (11 ) (508 ) Equity in (loss) income of unconsolidated entities (1 ) 12 Other expense, net (1 ) (3 ) Loss from discontinued operations before income taxes (13 ) (499 ) Benefit from income taxes (2 ) (127 ) Loss from discontinued operations, net of tax $ (11 ) $ (372 ) |
Subsequent Event
Subsequent Event | 3 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Pursuant to the Company's share repurchase program, 561,851 shares of the Company's common stock were purchased from January 1, 2019 through February 1, 2019 for $6.4 million at an average price per share of $11.44 . As of February 1, 2019, the remaining availability of the share repurchase program was $27.1 million . |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Our net income (loss) is equivalent to our comprehensive income (loss), so we have not presented a separate statement of comprehensive income (loss). In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for all periods presented (see Note 16 for a further discussion of our discontinued operations). Our fiscal year 2019 began on October 1, 2018 and ends on September 30, 2019. Our fiscal year 2018 began on October 1, 2017 and ended on September 30, 2018. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. |
Business Combinations | Business Combinations On July 13, 2018, the Company acquired substantially all of the assets, operations, and certain assumed liabilities of Venture Homes, a leading private homebuilder in the Atlanta market, for a purchase price of $61.3 million , net of cash acquired. As of December 31, 2018, $57.3 million of the purchase price had been paid, net of cash acquired, with the remaining $4.0 million due during the second quarter of fiscal 2019. The acquired assets consisted of more than 1,100 total owned or controlled lots within 27 single-family communities in the greater Atlanta metropolitan area. The acquired lots included a backlog of 48 homes and 6 model homes. The acquired assets and liabilities were recorded at their estimated fair values and resulted in inventory of $56.0 million and goodwill of $10.6 million , and other assets of $0.7 million as well as accounts payable of $5.5 million and other liabilities of $0.2 million . The purchase price accounting reflected above is preliminary and is based on estimates and assumptions that are subject to change within the measurement period, which is generally up to one year from the acquisition date pursuant to ASC 805. The purchase price allocation of Venture Homes is provisional pending completion of the fair value analysis of acquired assets and assumed liabilities. |
Inventory Valuation | Inventory Valuation Inventory assets are assessed for recoverability no less than quarterly in accordance with the policies described in Notes 2 and 5 to the audited consolidated financial statements within our 2018 Annual Report. Homebuilding inventories that are accounted for as held for development (projects in progress) include land and home construction assets grouped together as communities. Homebuilding inventories held for development are stated at cost (including direct construction costs, capitalized indirect costs, capitalized interest, and real estate taxes) unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. For communities that have been idled (land held for future development), all applicable interest and real estate taxes are expensed as incurred, and the inventory is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We record land held for sale at the lower of the carrying value or fair value less costs to sell. |
Revenue Recognition | Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in Accounting Standards Codification Topic 606. • Identify the contract(s) with a customer • Identify the performance obligations • Determine the transaction price • Allocate the transaction price • Recognize revenue when the performance obligations are met Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, and are considered deposits in-transit and classified as cash. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $13.5 million and $14.9 million as of December 31, 2018 and September 30, 2018, respectively. Of the customer liabilities outstanding as of September 30, 2018, $8.4 million were recognized in revenue during the three months ended December 31, 2018 upon closing of the related homes. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. In some periods, we also have other revenue related to broker fees as well as fees received for general contractor services that we perform on behalf of third parties. Revenue for broker and general contractor services are typically immaterial and are generally recognized as performance obligations are satisfied. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers. On October 1, 2018, we adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers , and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , collectively referred to as ASC 606. ASC 606 provides a new model for accounting for revenue arising from contracts with customers that supersedes most revenue recognition guidance. Under the new guidance, entities are required to recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled upon transferring control of goods or services to a customer. As part of our adoption of ASC 606, we applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Further, results for reporting periods beginning on or after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the previous accounting standards. The adoption of ASC 606 had no impact on opening retained earnings and did not materially affect the amount or timing of our revenue. Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires lessees to record most leases on their balance sheets. The timing and classification of lease-related expenses for lessees will depend on whether a lease is determined to be an operating lease or a finance lease using updated criteria within ASU 2016-02. Operating leases will result in straight-line expense (similar to current operating leases), while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Regardless of lease type, the lessee will recognize a right-of-use asset, representing the right to use the identified asset during the lease term, and a related lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the current lease accounting rules. ASU 2016-02 also requires significantly enhanced disclosures around an entity's leases and the related accounting. The guidance within ASU 2016-02 will be effective for the Company's fiscal year beginning October 1, 2019, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements (ASU 2018-11), which provides an optional transition method to apply the requirements of the new lease standard through a cumulative-effect adjustment in the period of adoption. The Company expects to adopt the standard on October 1, 2019 using the optional transition method. We continue to evaluate the impact of ASU 2016-02 on our consolidated financial statements. However, a large majority of our leases are for office space, which we have determined will be treated as operating leases under ASU 2016-02. As such, we anticipate recording a right-of-use asset and related lease liability for these leases. We do not anticipate any significant change to our statements of operations or cash flows as a result of adopting ASU 2016-02. Intangibles - Goodwill and Other. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 from the goodwill impairment test. This change will allow an entity to avoid calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination, thus reducing the cost and complexity of evaluating goodwill for impairment. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We do not believe the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements and disclosures. Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework (ASU 2018-13). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. We are currently assessing the impact of adopting the updated provisions. Internal-Use Software. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenue disaggregated by revenue stream: Three Months Ended December 31, in thousands 2018 2017 Homebuilding revenue $ 400,982 $ 367,754 Land sales and other revenue 1,058 4,735 Total revenue (a) $ 402,040 $ 372,489 (a) Please see Note 14 for total revenue disaggregated by reportable segment. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental disclosure of non-cash activity | The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of our total cash balances between our condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Supplemental disclosure of cash activity: Interest payments $ 13,986 $ 10,766 Income tax payments 121 — Tax refunds received 1,148 39 Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 84,399 $ 177,812 Restricted cash 12,637 12,082 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 97,036 $ 189,894 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in unconsolidated joint ventures, total equity and outstanding borrowings | The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of December 31, 2018 and September 30, 2018 : in thousands December 31, 2018 September 30, 2018 Beazer's investment in unconsolidated entities $ 3,650 $ 4,035 Total equity of unconsolidated entities 8,578 10,113 Total outstanding borrowings of unconsolidated entities 11,867 12,266 Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Equity in loss of unconsolidated entities $ (64 ) $ (101 ) |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | The components of our owned inventory are as follows as of December 31, 2018 and September 30, 2018 : in thousands December 31, 2018 September 30, 2018 Homes under construction $ 478,539 $ 476,752 Development projects in progress 925,728 907,793 Land held for future development 83,177 83,173 Land held for sale 6,997 7,781 Capitalized interest 151,886 144,645 Model homes 75,793 72,140 Total owned inventory $ 1,722,120 $ 1,692,284 |
Schedule of total owned inventory, by segment | Total owned inventory by reportable segment is presented in the table below as of December 31, 2018 and September 30, 2018 : in thousands Projects in Progress (a) Land Held for Future Development Land Held for Sale Total Owned Inventory December 31, 2018 West Segment $ 785,702 $ 58,129 $ — $ 843,831 East Segment 277,300 14,077 3,906 295,283 Southeast Segment 357,172 10,971 3,091 371,234 Corporate and unallocated (b) 211,772 — — 211,772 Total $ 1,631,946 $ 83,177 $ 6,997 $ 1,722,120 September 30, 2018 West Segment $ 763,453 $ 58,125 $ — $ 821,578 East Segment 280,761 14,077 4,580 299,418 Southeast Segment 358,126 10,971 3,177 372,274 Corporate and unallocated (b) 198,990 — 24 199,014 Total $ 1,601,330 $ 83,173 $ 7,781 $ 1,692,284 (a) Projects in progress include homes under construction, development projects in progress, capitalized interest, and model home categories from the preceding table. (b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Land held for sale amount includes parcels held by our discontinued operations. |
Schedule of Undiscounted Cash Flow Analysis Prepared | The table below summarizes the results of our undiscounted cash flow analyses by reportable segment, where applicable, for the quarter ended December 31, 2018 (the period that such analyses were required): $ in thousands Undiscounted Cash Flow Analyses Prepared Segment (a) # of (b) # of (c) Pre-analysis Aggregate (d) Quarter Ended December 31, 2018 West 3 — $ — — % Southeast 1 1 2,225 71.3 % Corporate and unallocated (e) — — 387 N/A (f) Total 4 1 $ 2,612 (a) We have elected to aggregate our disclosure at the reportable segment level because we believe this level of disclosure is most meaningful to the readers of our financial statements. (b) Number of communities in this column excludes communities that are closing out and have less than ten closings remaining. (c) Number of communities in this column is lower than the number of communities on our watch list because it excludes communities due to certain qualitative considerations that would imply that the low profitability levels are temporary in nature. (d) An aggregate undiscounted cash flow as a percentage of book value under 100% would indicate a possible impairment and is consistent with our "watch list" methodology. The book value of each project assessed for recoverability on an undiscounted cash flow basis includes all inventory costs applicable to the project as of the date of the analysis, including capitalized interest and indirects. (e) Amount represents capitalized interest and indirects balance related to the communities for which an undiscounted cash flow analysis was prepared. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. (f) N/A - not applicable. |
Schedule of Discounted Cash Flow Analysis | The following table presents, by reportable segment, details of the impairment charges taken on projects in progress for the periods presented: $ in thousands Results of Discounted Cash Flow Analyses Prepared Segment # of # of Lots Impairment Estimated Fair Quarter Ended December 31, 2018 Southeast 1 15 $ 858 $ 1,367 Corporate and unallocated (a) — — 149 238 Total 1 15 $ 1,007 $ 1,605 (a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. |
Quantitative unobservable inputs for inventory impairment | The following table presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities we impaired during the periods presented: $ in thousands Three Months Ended Unobservable Inputs December 31, 2018 Average selling price $ 412 Closings per community per month 1 - 2 Discount rate 16.8 % |
Schedule of inventory impairments and lot option abandonment charges, by reportable homebuilding segment | The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Projects in Progress: Southeast $ 858 $ — Corporate and unallocated (a) 149 — Total impairment charges on projects in progress $ 1,007 $ — Discontinued Operations: Land Held for Sale — 450 Total impairment and abandonment charges $ 1,007 $ 450 (a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. |
Summary of interests in lot option agreements | The following table provides a summary of our interests in lot option agreements as of December 31, 2018 and September 30, 2018 : in thousands Deposits & Non-refundable Pre-acquisition Costs Incurred Remaining Obligation As of December 31, 2018 Unconsolidated lot option agreements $ 71,644 $ 367,026 As of September 30, 2018 Unconsolidated lot option agreements $ 72,191 $ 383,150 |
Interest (Tables)
Interest (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Real Estate Inventory, Capitalized Interest Costs | The following table presents certain information regarding interest for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Capitalized interest in inventory, beginning of period $ 144,645 $ 139,203 Interest incurred 24,921 25,555 Capitalized interest impaired (115 ) — Interest expense not qualified for capitalization and included as other expense (a) (242 ) (3,435 ) Capitalized interest amortized to home construction and land sales expenses (b) (17,323 ) (16,476 ) Capitalized interest in inventory, end of period $ 151,886 $ 144,847 (a) The amount of interest we are able to capitalize is dependent upon our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | December 31, 2018 and September 30, 2018 , we had the following debt, net of premium/discounts and unamortized debt issuance costs: in thousands Maturity Date December 31, 2018 September 30, 2018 8 3/4% Senior Notes March 2022 $ 500,000 $ 500,000 7 1/4% Senior Notes February 2023 24,834 24,834 6 3/4% Senior Notes March 2025 250,000 250,000 5 7/8% Senior Notes October 2027 400,000 400,000 Unamortized debt premium, net 2,447 2,640 Unamortized debt issuance costs (13,651 ) (14,336 ) Total Senior Notes, net 1,163,630 1,163,138 Junior Subordinated Notes (net of unamortized accretion of $36,253 and $36,770, respectively) July 2036 64,520 64,003 Revolving Credit Facility February 2021 25,000 — Other Secured Notes payable Various Dates 2,634 4,113 Total debt, net $ 1,255,784 $ 1,231,254 |
Debt Instrument Redemption | For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 8 3/4% Senior Notes September 2016 March 2022 Callable at any time prior to March 15, 2019, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2019, callable at a redemption price equal to 104.375% of the principal amount; on or after March 15, 2020, callable at a redemption price equal to 102.188% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 100.000% of the principal amount plus, in each case, accrued and unpaid interest 7 1/4% Senior Notes February 2013 February 2023 Callable at any time on or after February 1, 2018, callable at a redemption price equal to 103.625% of the principal amount; on or after February 1, 2019, callable at a redemption price equal to 102.417% of the principal amount; on or after February 1, 2020, callable at a redemption price equal to 101.208% of the principal amount; on or after February 1, 2021, callable at 100.000% of the principal amount plus, in each case, accrued and unpaid interest 6 3/4% Senior Notes March 2017 March 2025 Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest 5 7/8% Senior Notes October 2017 October 2027 Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest |
Contingencies (Tables)
Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty reserves | Changes in warranty reserves are as follows for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Balance at beginning of period $ 15,331 $ 18,091 Accruals for warranties issued (a) 2,305 4,212 Changes in liability related to warranties existing in prior periods (1,874 ) (2,296 ) Payments made (2,330 ) (4,191 ) Balance at end of period $ 13,432 $ 15,816 (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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets measured on a recurring and non-recurring basis | The following table presents the period-end balances of our assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented: in thousands Level 1 Level 2 Level 3 Total As of December 31, 2018 Deferred compensation plan assets (a) $ — $ 1,760 $ — $ 1,760 Development projects in progress (b) — — 1,605 1,605 As of September 30, 2018 Deferred compensation plan assets (a) $ — $ 1,578 $ — $ 1,578 Development projects in progress (b) — — 1,312 1,312 Land held for sale (b) — — 1,724 1,724 Unconsolidated entity investments (b) — — 80 80 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirects related to the asset. |
Schedule of carrying values and estimated fair values of other financial assets and liabilities | The following table presents the carrying value and estimated fair value of certain of our other financial liabilities as of December 31, 2018 and September 30, 2018 : As of December 31, 2018 As of September 30, 2018 in thousands Carrying (a) Fair Value Carrying (a) Fair Value Senior Notes (b) $ 1,163,630 $ 1,048,346 $ 1,163,138 $ 1,096,214 Junior Subordinated Notes 64,520 64,520 64,003 64,003 Total $ 1,228,150 $ 1,112,866 $ 1,227,141 $ 1,160,217 (a) Carrying amounts are net of unamortized debt premiums/discounts, debt issuance costs, or accretion. (b) The estimated fair value for our publicly-held Senior Notes has been determined using quoted market rates (Level 2). |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock options and SSARs outstanding | Following is a summary of stock option activity for the three months ended December 31, 2018: Three Months Ended December 31, 2018 Shares Weighted Average Outstanding at beginning of period 533,052 $ 14.26 Granted 25,230 10.38 Exercised (1,000 ) 7.56 Cancelled (1,319 ) 11.53 Outstanding at end of period 555,963 $ 14.10 Exercisable at end of period 504,092 $ 14.13 Vested or expected to vest in the future 552,799 $ 14.13 |
Schedule of nonvested stock awards activity | Following is a summary of restricted stock activity for the three months ended December 31, 2018: Three Months Ended December 31, 2018 Performance-Based Restricted Shares Time-Based Restricted Shares Total Restricted Shares Beginning of period 644,785 431,783 1,076,568 Granted (a) 467,819 441,991 909,810 Vested (a) (309,843 ) (196,246 ) (506,089 ) Forfeited (7,020 ) (21,329 ) (28,349 ) End of period 795,741 656,199 1,451,940 (a) Grant and vesting activity during the three months ended December 31, 2018 include 86,050 shares that were issued above target based on the performance level achieved under performance-based restricted stock vesting in the current period. As of December 31, 2018 and September 30, 2018 , total unrecognized compensation cost related to unvested restricted stock awards was $14.8 million and $8.8 million , respectively. The remaining cost as of December 31, 2018 is expected to be recognized over a weighted average period of 2.2 years . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | Following is a summary of the components of basic and diluted income (loss) per share for the periods presented: Three Months Ended December 31, in thousands, except per share data 2018 2017 Numerator: Income (loss) from continuing operations $ 7,322 $ (130,575 ) Loss from discontinued operations, net of tax (11 ) (372 ) Net income (loss) $ 7,311 $ (130,947 ) Denominator: Basic weighted-average shares 31,967 32,055 Dilutive effect of restricted stock awards 244 — Dilutive effect of stock options 11 — Diluted weighted-average shares (a) 32,222 32,055 Basic and diluted income (loss) per share: Continuing operations $ 0.23 $ (4.07 ) Discontinued operations — (0.01 ) Total $ 0.23 $ (4.08 ) (a) The following potentially dilutive shares were excluded from the calculation of diluted income (loss) per share as a result of their anti-dilutive effect. Due to the reported net loss for the three months ended December 31, 2017, all common stock equivalents were excluded from the computation of diluted loss per share for that period because inclusion would have resulted in anti-dilution. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended December 31, in thousands 2018 2017 Stock options 493 556 Time-based restricted stock 195 828 Performance-based restricted stock — 628 |
Other Liabilities Other Liabili
Other Liabilities Other Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other liabilities | Other liabilities include the following as of December 31, 2018 and September 30, 2018 : in thousands December 31, 2018 September 30, 2018 Accrued interest $ 24,217 $ 14,401 Accrued bonus and deferred compensation 20,236 41,508 Customer deposits 13,462 14,903 Accrued warranty expense 13,432 15,331 Litigation accrual 3,348 3,656 Income tax liabilities 856 710 Other 37,082 35,880 Total $ 112,633 $ 126,389 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Revenue West $ 208,944 $ 177,971 East 88,746 88,853 Southeast 104,350 105,665 Total revenue $ 402,040 $ 372,489 Three Months Ended December 31, in thousands 2018 2017 Operating income (a) West $ 24,261 $ 21,110 East 5,395 7,396 Southeast 1,380 6,910 Segment total 31,036 35,416 Corporate and unallocated (b) (27,530 ) (28,735 ) Total operating income $ 3,506 $ 6,681 Three Months Ended December 31, in thousands 2018 2017 Depreciation and amortization West $ 1,278 $ 1,256 East 538 439 Southeast 610 579 Segment total 2,426 2,274 Corporate and unallocated (b) 344 233 Total depreciation and amortization $ 2,770 $ 2,507 (a) Operating income is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5). (b) Corporate and unallocated operating loss includes amortization of capitalized interest; movement in capitalized indirects; expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing; and other amounts that are not allocated to our operating segments. Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. pital expenditures by segment for the periods presented: Three Months Ended December 31, in thousands 2018 2017 Capital Expenditures West $ 2,651 $ 1,776 East 762 595 Southeast 859 743 Corporate and unallocated 2,082 588 Total capital expenditures $ 6,354 $ 3,702 The following table presents assets by segment as of December 31, 2018 and September 30, 2018 : in thousands December 31, 2018 September 30, 2018 Assets West $ 855,823 $ 835,230 East 305,232 335,474 Southeast 390,934 414,685 Corporate and unallocated (a) 551,401 542,713 Total assets $ 2,103,390 $ 2,128,102 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirects, and other items that are not allocated to the segments. |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Unaudited Condensed Consolidating Balance Sheet Information | Beazer Homes USA, Inc. Condensed Consolidating Balance Sheet Information December 31, 2018 (Unaudited) in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated ASSETS Cash and cash equivalents $ 82,115 $ 2,267 $ 17 $ — $ 84,399 Restricted cash 11,897 740 — — 12,637 Accounts receivable (net of allowance of $378) — 19,349 — — 19,349 Owned inventory — 1,722,120 — — 1,722,120 Investments in unconsolidated entities 773 2,877 — — 3,650 Deferred tax assets, net 218,025 — — — 218,025 Property and equipment, net — 24,408 — — 24,408 Investments in subsidiaries 636,800 — — (636,800 ) — Intercompany 963,614 (6,858 ) 1,686 (958,442 ) — Goodwill — 10,605 — — 10,605 Other assets 982 7,215 — — 8,197 Total assets $ 1,914,206 $ 1,782,723 $ 1,703 $ (1,595,242 ) $ 2,103,390 LIABILITIES AND STOCKHOLDERS’ EQUITY Trade accounts payable $ — $ 99,864 $ — $ — $ 99,864 Other liabilities 24,261 88,359 13 — 112,633 Intercompany 1,686 956,756 — (958,442 ) — Total debt (net of premium and debt issuance costs) 1,253,150 2,634 — — 1,255,784 Total liabilities 1,279,097 1,147,613 13 (958,442 ) 1,468,281 Stockholders’ equity 635,109 635,110 1,690 (636,800 ) 635,109 Total liabilities and stockholders’ equity $ 1,914,206 $ 1,782,723 $ 1,703 $ (1,595,242 ) $ 2,103,390 Beazer Homes USA, Inc. Condensed Consolidating Balance Sheet Information September 30, 2018 (Unaudited) in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated ASSETS Cash and cash equivalents $ 93,875 $ 45,355 $ 575 $ — $ 139,805 Restricted cash 10,921 2,522 — — 13,443 Accounts receivable (net of allowance of $378) — 24,647 — — 24,647 Owned inventory — 1,692,284 — — 1,692,284 Investments in unconsolidated entities 773 3,262 — — 4,035 Deferred tax assets, net 213,955 — — — 213,955 Property and equipment, net — 20,843 — — 20,843 Investments in subsidiaries 645,086 — — (645,086 ) — Intercompany 922,525 — 2,304 (924,829 ) — Goodwill — 9,751 — — 9,751 Other assets 694 8,626 19 — 9,339 Total assets $ 1,887,829 $ 1,807,290 $ 2,898 $ (1,569,915 ) $ 2,128,102 LIABILITIES AND STOCKHOLDERS’ EQUITY Trade accounts payable $ — $ 126,432 $ — $ — $ 126,432 Other liabilities 14,357 111,906 126 — 126,389 Intercompany 2,304 922,525 — (924,829 ) — Total debt (net of premium and debt issuance costs) 1,227,141 4,113 — — 1,231,254 Total liabilities 1,243,802 1,164,976 126 (924,829 ) 1,484,075 Stockholders’ equity 644,027 642,314 2,772 (645,086 ) 644,027 Total liabilities and stockholders’ equity $ 1,887,829 $ 1,807,290 $ 2,898 $ (1,569,915 ) $ 2,128,102 |
Unaudited Condensed Consolidating Statements of Income (Loss) and Unaudited Comprehensive Income (Loss) | Beazer Homes USA, Inc. Consolidating Statements of Operations (Unaudited) in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated Three Months Ended December 31, 2018 Total revenue $ — $ 402,040 $ 115 $ (115 ) $ 402,040 Home construction and land sales expenses 17,323 323,170 — (115 ) 340,378 Inventory impairments and abandonments 115 892 — — 1,007 Gross (loss) profit (17,438 ) 77,978 115 — 60,655 Commissions — 15,737 — — 15,737 General and administrative expenses — 38,646 (4 ) — 38,642 Depreciation and amortization — 2,770 — — 2,770 Operating (loss) income (17,438 ) 20,825 119 — 3,506 Equity in loss of unconsolidated entities — (64 ) — — (64 ) Other (expense) income, net (242 ) 204 (4 ) — (42 ) (Loss) income from continuing operations before income taxes (17,680 ) 20,965 115 — 3,400 Expense (benefit) from income taxes 20,385 (24,336 ) 29 — (3,922 ) Equity in income of subsidiaries 45,387 — — (45,387 ) — Income from continuing operations 7,322 45,301 86 (45,387 ) 7,322 Loss from discontinued operations, net of tax — (7 ) (4 ) — (11 ) Equity in loss of subsidiaries from discontinued operations (11 ) — — 11 — Net income $ 7,311 $ 45,294 $ 82 $ (45,376 ) $ 7,311 in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated Three Months Ended December 31, 2017 Total revenue $ — $ 372,489 $ 14 $ (14 ) $ 372,489 Home construction and land sales expenses 16,468 295,206 — (14 ) 311,660 Gross (loss) profit (16,468 ) 77,283 14 — 60,829 Commissions — 14,356 — — 14,356 General and administrative expenses — 37,244 41 — 37,285 Depreciation and amortization — 2,507 — — 2,507 Operating (loss) income (16,468 ) 23,176 (27 ) — 6,681 Equity in loss of unconsolidated entities — (101 ) — — (101 ) Loss on extinguishment of debt (25,904 ) — — — (25,904 ) Other (expense) income, net (3,435 ) 296 (6 ) — (3,145 ) (Loss) income from continuing operations before income taxes (45,807 ) 23,371 (33 ) — (22,469 ) (Benefit) expense from income taxes (12,185 ) 120,303 (12 ) — 108,106 Equity in loss of subsidiaries (96,953 ) — — 96,953 — Loss from continuing operations (130,575 ) (96,932 ) (21 ) 96,953 (130,575 ) Loss from discontinued operations — (369 ) (3 ) — (372 ) Equity in loss of subsidiaries from discontinued operations (372 ) — — 372 — Net loss $ (130,947 ) $ (97,301 ) $ (24 ) $ 97,325 $ (130,947 ) |
Unaudited Condensed Consolidating Statements of Cash Flow Information | Beazer Homes USA, Inc. Condensed Consolidating Statements of Cash Flow Information (Unaudited) in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated Three Months Ended December 31, 2018 Net cash used in operating activities $ (31,908 ) $ (22,756 ) $ (26 ) $ — $ (54,690 ) Cash flows from investing activities: Capital expenditures — (6,354 ) — — (6,354 ) Proceeds from sale of fixed assets — 54 — — 54 Return of capital from unconsolidated entities 532 — (532 ) — — Advances to/from subsidiaries 21,204 — — (21,204 ) — Net cash provided by (used in) investing activities 21,736 (6,300 ) (532 ) (21,204 ) (6,300 ) Cash flows from financing activities: Repayment of debt (11 ) (1,468 ) — — (1,479 ) Repayment of borrowings from credit facility (75,000 ) — — — (75,000 ) Borrowings from credit facility 100,000 — — — 100,000 Debt issuance costs (400 ) — — — (400 ) Repurchase of common stock (16,500 ) — — — (16,500 ) Tax payments for stock-based compensation awards (1,850 ) — — — (1,850 ) Advances to/from subsidiaries — (21,204 ) — 21,204 — Other financing activities 7 — — — 7 Net cash provided by (used in) financing activities 6,246 (22,672 ) — 21,204 4,778 Decrease in cash, cash equivalents, and restricted cash (3,926 ) (51,728 ) (558 ) — (56,212 ) Cash, cash equivalents, and restricted cash at beginning of period 104,796 47,877 575 — 153,248 Cash, cash equivalents, and restricted cash at end of period $ 100,870 $ (3,851 ) $ 17 $ — $ 97,036 in thousands Beazer Homes Guarantor Non-Guarantor Consolidating Consolidated Three Months Ended December 31, 2017 Net cash provided by (used in) operating activities $ 91,465 $ (193,721 ) $ 32 $ — $ (102,224 ) Cash flows from investing activities: Capital expenditures — (3,702 ) — — (3,702 ) Proceeds from sale of fixed assets — 84 — — 84 Investments in unconsolidated entities — (421 ) — — (421 ) Advances to/from subsidiaries (187,451 ) — (26 ) 187,477 — Net cash used in investing activities (187,451 ) (4,039 ) (26 ) 187,477 (4,039 ) Cash flows from financing activities: Repayment of debt (400,012 ) (1,469 ) — — (401,481 ) Proceeds from issuance of new debt 400,000 — — — 400,000 Debt issuance costs (5,649 ) — — — (5,649 ) Tax payments for stock-based compensation awards (1,322 ) — — — (1,322 ) Advances to/from subsidiaries — 186,563 — (186,563 ) — Other financing activities — — — — — Net cash (used in) provided by financing activities (6,983 ) 185,094 — (186,563 ) (8,452 ) (Decrease) increase in cash, cash equivalents, and restricted cash (102,969 ) (12,666 ) 6 914 (114,715 ) Cash, cash equivalents, and restricted cash at beginning of period 294,192 16,854 724 (7,161 ) 304,609 Cash, cash equivalents, and restricted cash at end of period $ 191,223 $ 4,188 $ 730 $ (6,247 ) $ 189,894 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Results of Discontinued Operations | The results of our discontinued operations in the condensed consolidated statements of operations for the periods presented were as follows: Three Months Ended December 31, in thousands 2018 2017 Total revenue $ 55 $ 625 Home construction and land sales expenses 33 667 Inventory impairments and lot option abandonments — 450 Gross profit (loss) 22 (492 ) General and administrative expenses 33 16 Operating loss (11 ) (508 ) Equity in (loss) income of unconsolidated entities (1 ) 12 Other expense, net (1 ) (3 ) Loss from discontinued operations before income taxes (13 ) (499 ) Benefit from income taxes (2 ) (127 ) Loss from discontinued operations, net of tax $ (11 ) $ (372 ) |
Description of Business (Detail
Description of Business (Details) | Dec. 31, 2018stateregion |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states in which home building segments operate | state | 13 |
Number of regions in which entity operates | region | 3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 402,040 | $ 372,489 | |
Customer deposits | 13,462 | $ 14,903 | |
Contract with customer, liability, revenue recognized | 8,400 | ||
Homebuilding revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 400,982 | 367,754 | |
Land sales and other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 1,058 | $ 4,735 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Nov. 15, 2018 | Dec. 31, 2018 | Nov. 13, 2018 |
Accounting Policies [Abstract] | |||
Authorized amount repurchase of common stock | $ 50 | ||
Aggregate amount repurchased of outstanding common stock | $ 16.5 | ||
Completed common stock repurchase (in shares) | 1.6 | ||
Average price per share (in dollars per share) | $ 10.62 | ||
Remaining authorized repurchase amount | $ 33.5 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Business Combinations (Details) - Venture Homes $ in Millions | Jul. 13, 2018USD ($)homelotCommunity | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||
Purchase price, net of cash acquired | $ 61.3 | |
Purchase price paid, net cash acquired | $ 57.3 | |
Remaining payments due | $ 4 | |
Number of active communities | Community | 27 | |
Number of homes in backlog | home | 48 | |
Number of model homes in backlog | home | 6 | |
Inventory acquired | $ 56 | |
Intangible Assets, Net (Including Goodwill) | 10.6 | |
Other assets acquired | 0.7 | |
Accounts payable | 5.5 | |
Other liabilities assumed | $ 0.2 | |
Minimum | ||
Business Acquisition [Line Items] | ||
Number of lots acquired | lot | 1,100 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Supplemental Disclosure of Non-cash Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Supplemental disclosure of cash activity: | |||
Interest payments | $ 13,986 | $ 10,766 | |
Income tax payments | 121 | 0 | |
Tax refunds received | 1,148 | 39 | |
Reconciliation of cash, cash equivalents, and restricted cash: | |||
Cash and cash equivalents | 84,399 | 177,812 | $ 139,805 |
Restricted cash | 12,637 | 12,082 | $ 13,443 |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 97,036 | $ 189,894 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Outstanding Borrowings of Unconsolidated Entities and Equity in Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity Method Investments | $ 3,650 | $ 4,035 | |
Total equity of unconsolidated entities | 8,578 | 10,113 | |
Total outstanding borrowings of unconsolidated entities | 11,867 | $ 12,266 | |
Equity in loss of unconsolidated entities | $ (64) | $ (101) |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities - Narrative (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Impairment of unconsolidated entity investments | $ 0 | $ 0 | |
Financial Guarantee | |||
Schedule of Equity Method Investments [Line Items] | |||
Outstanding guarantees | $ 0 | $ 0 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||||
Homes under construction | $ 478,539 | $ 476,752 | ||
Development projects in progress | 925,728 | 907,793 | ||
Land held for future development | 83,177 | 83,173 | ||
Land held for sale | 6,997 | 7,781 | ||
Capitalized interest | 151,886 | 144,645 | $ 144,847 | $ 139,203 |
Model homes | 75,793 | 72,140 | ||
Total owned inventory | $ 1,722,120 | $ 1,692,284 |
Inventory - Narrative (Details)
Inventory - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018USD ($)homeCommunity | Dec. 31, 2017USD ($)Community | Sep. 30, 2018USD ($)home | |
Inventory Disclosure [Abstract] | |||
Number of substantially completed homes unsold | home | 223 | 240 | |
Total value of substantially completed homes | $ | $ 83,900 | $ 84,800 | |
Threshold number of homes below a minimum threshold of profitability | home | 10 | ||
Inventory impairment charge | $ | $ 1,007 | $ 500 | |
Real Estate Properties [Line Items] | |||
Number of communities on watch list | 4 | 2 | |
Number of communities requiring further analysis | 1 | 0 | |
West Segment | |||
Real Estate Properties [Line Items] | |||
Number of communities on watch list | 3 | ||
Number of communities requiring further analysis | 0 | ||
Southeast Segment | |||
Real Estate Properties [Line Items] | |||
Number of communities on watch list | 1 | ||
Number of communities requiring further analysis | 1 |
Inventory - Total Owned Invento
Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Projects in progress | $ 1,631,946 | $ 1,601,330 |
Land held for future development | 83,177 | 83,173 |
Land held for sale | 6,997 | 7,781 |
Total owned inventory | 1,722,120 | 1,692,284 |
Corporate and unallocated | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 211,772 | 198,990 |
Land held for future development | 0 | 0 |
Land held for sale | 0 | 24 |
Total owned inventory | 211,772 | 199,014 |
West Segment | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 785,702 | 763,453 |
Land held for future development | 58,129 | 58,125 |
Land held for sale | 0 | 0 |
Total owned inventory | 843,831 | 821,578 |
East Segment | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 277,300 | 280,761 |
Land held for future development | 14,077 | 14,077 |
Land held for sale | 3,906 | 4,580 |
Total owned inventory | 295,283 | 299,418 |
Southeast Segment | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 357,172 | 358,126 |
Land held for future development | 10,971 | 10,971 |
Land held for sale | 3,091 | 3,177 |
Total owned inventory | $ 371,234 | $ 372,274 |
Inventory - Recoverability Sche
Inventory - Recoverability Schedule of Inventory assets Held for Development, by Reportable Segment (Details) (Details) $ in Thousands | Dec. 31, 2018USD ($)Community | Dec. 31, 2017Community |
Real Estate Properties [Line Items] | ||
Number of Communities on Watch List | 4 | 2 |
Number of Communities | 1 | 0 |
Pre-analysis Book Value | $ | $ 2,612 | |
West Segment | ||
Real Estate Properties [Line Items] | ||
Number of Communities on Watch List | 3 | |
Number of Communities | 0 | |
Pre-analysis Book Value | $ | $ 0 | |
Aggregate Undiscounted Cash Flow as a % of BV | 0.00% | |
Southeast Segment | ||
Real Estate Properties [Line Items] | ||
Number of Communities on Watch List | 1 | |
Number of Communities | 1 | |
Pre-analysis Book Value | $ | $ 2,225 | |
Aggregate Undiscounted Cash Flow as a % of BV | 71.30% | |
Corporate and unallocated | ||
Real Estate Properties [Line Items] | ||
Number of Communities on Watch List | 0 | |
Number of Communities | 0 | |
Pre-analysis Book Value | $ | $ 387 |
Inventory - Results of Discount
Inventory - Results of Discounted Cash Flow Analysis (Details) (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018USD ($)lotCommunity | Dec. 31, 2017USD ($) | |
Real Estate, Write-down or Reserve [Line Items] | ||
Number of Communities Impaired | Community | 1 | |
Number of Lots Impaired | lot | 15 | |
Impairment Charge | $ 1,007 | $ 500 |
Estimated Fair Value of Impaired Inventory at time of Impairment | $ 1,605 | |
Continuing Operations | Southeast Segment | ||
Real Estate, Write-down or Reserve [Line Items] | ||
Number of Communities Impaired | Community | 1 | |
Number of Lots Impaired | lot | 15 | |
Impairment Charge | $ 858 | |
Estimated Fair Value of Impaired Inventory at time of Impairment | $ 1,367 | |
Corporate and unallocated | Continuing Operations | ||
Real Estate, Write-down or Reserve [Line Items] | ||
Number of Communities Impaired | Community | 0 | |
Number of Lots Impaired | lot | 0 | |
Impairment Charge | $ 149 | |
Estimated Fair Value of Impaired Inventory at time of Impairment | $ 238 |
Inventory - Quantitative Unobse
Inventory - Quantitative Unobservable Inputs (Details) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($)home | |
Quantitative unobservable inputs for inventory impairment [Line Items] | |
Average selling price | $ | $ 412 |
Minimum | |
Quantitative unobservable inputs for inventory impairment [Line Items] | |
Closings per community per month | 1 |
Maximum | |
Quantitative unobservable inputs for inventory impairment [Line Items] | |
Closings per community per month | 2 |
Measurement Input, Discount Rate | |
Quantitative unobservable inputs for inventory impairment [Line Items] | |
Discount rate | 0.168 |
Inventory - Impairments and Lot
Inventory - Impairments and Lot Option Abandonment Charges, by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate, Write-down or Reserve [Line Items] | ||
Total impairment and abandonment charges | $ 1,007 | $ 450 |
Continuing Operations | ||
Real Estate, Write-down or Reserve [Line Items] | ||
Impairment charges on projects in progress | 1,007 | 0 |
Discontinued Operations | ||
Real Estate, Write-down or Reserve [Line Items] | ||
Land Held for Sale | 0 | 450 |
Southeast Segment | Continuing Operations | ||
Real Estate, Write-down or Reserve [Line Items] | ||
Impairment charges on projects in progress | 858 | 0 |
Corporate and unallocated | Continuing Operations | ||
Real Estate, Write-down or Reserve [Line Items] | ||
Impairment charges on projects in progress | $ 149 | $ 0 |
Inventory - Summary of Interest
Inventory - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Real Estate Properties [Line Items] | ||
Deposits & Non-refundable Pre-acquisition Costs Incurred | $ 71,644 | $ 72,191 |
Remaining Obligation | $ 367,026 | $ 383,150 |
Interest - Schedule of Capitali
Interest - Schedule of Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||
Capitalized interest in inventory, beginning of period | $ 144,645 | $ 139,203 |
Interest incurred | 24,921 | 25,555 |
Capitalized interest impaired | (115) | 0 |
Interest expense not qualified for capitalization and included as other expense | (242) | (3,435) |
Capitalized interest amortized to home construction and land sales expenses | (17,323) | (16,476) |
Capitalized interest in inventory, end of period | $ 151,886 | $ 144,847 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt (Details) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 30, 2016 |
Debt Instrument [Line Items] | |||
Unamortized debt premium, net | $ 2,447,000 | $ 2,640,000 | |
Unamortized debt issuance costs | (13,651,000) | (14,336,000) | |
Total debt, net | 1,255,784,000 | 1,231,254,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized debt premium, net | 2,447,000 | 2,640,000 | |
Unamortized debt issuance costs | (13,651,000) | (14,336,000) | |
Total debt, net | $ 1,163,630,000 | 1,163,138,000 | |
Senior Notes | 8 3/4% Senior Notes Maturing March 2022 | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument (percent) | 8.75% | ||
Total debt, net | $ 500,000,000 | 500,000,000 | |
Senior Notes | 7 1/4% Senior Notes Maturing February 2023 | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument (percent) | 7.25% | ||
Total debt, net | $ 24,834,000 | 24,834,000 | |
Senior Notes | 6 3/4% Senior Notes Maturing March of 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument (percent) | 6.75% | ||
Total debt, net | $ 250,000,000 | 250,000,000 | |
Senior Notes | 5 7/8% Senior Notes Maturing October 2027 | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument (percent) | 5.875% | ||
Total debt, net | $ 400,000,000 | 400,000,000 | |
Junior Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument (percent) | 7.987% | ||
Total debt, net | 64,520,000 | 64,003,000 | |
Other Secured Notes payable | |||
Debt Instrument [Line Items] | |||
Total debt, net | 2,634,000 | 4,113,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving Credit Facility | $ 25,000,000 | $ 0 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | Jul. 30, 2016 | Dec. 31, 2018USD ($)lender | Sep. 30, 2018USD ($) | May 31, 2018USD ($) | Jan. 31, 2010USD ($) |
Line of Credit Facility [Abstract] | |||||
Amount of available borrowings under the Secured Revolving Credit Facility | $ 183,500,000 | $ 200,000,000 | |||
Senior Notes [Abstract] | |||||
Ownership interest In guarantor subsidiaries | 100.00% | ||||
Secured Debt [Abstract] | |||||
Total debt, net | $ 1,255,784,000 | 1,231,254,000 | |||
Junior Subordinated Notes | |||||
Junior Subordinated Notes [Abstract] | |||||
Stated interest rate on debt instrument (percent) | 7.987% | ||||
Effective period of debt instrument interest rate | 10 years | ||||
Face amount modification | $ 75,000,000 | ||||
Unamortized accretion | 36,253,000 | 36,770,000 | |||
Secured Debt [Abstract] | |||||
Total debt, net | $ 64,520,000 | 64,003,000 | |||
Weighted average fixed interest rate of debt (percent) | 4.97% | ||||
Other secured notes payable | |||||
Secured Debt [Abstract] | |||||
Total debt, net | $ 2,634,000 | 4,113,000 | |||
Weighted average fixed interest rate of debt (percent) | 1.88% | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Abstract] | |||||
Credit facility borrowing capacity | $ 210,000,000 | 200,000,000 | |||
Inventory assets pledged as collateral | $ 800,000,000 | ||||
Number of lenders | lender | 3 | ||||
Borrowings outstanding | $ 25,000,000 | 0 | |||
Letters of credit secured using cash collateral | $ 1,500,000 | 0 | |||
Revolving Credit Facility | Maximum | |||||
Line of Credit Facility [Abstract] | |||||
Aggregate collateral ratio | 4 | ||||
Revolving Credit Facility | Minimum | |||||
Line of Credit Facility [Abstract] | |||||
Aggregate collateral ratio | 1 | ||||
Letter of Credit, Cash Secured | |||||
Line of Credit Facility [Abstract] | |||||
Letters of credit secured using cash collateral | $ 11,200,000 | $ 10,400,000 | |||
Standby Letters of Credit | Standby Letters for Credit Facility | |||||
Line of Credit Facility [Abstract] | |||||
Credit facility borrowing capacity | $ 50,000,000 | ||||
Letters of credit secured using cash collateral | $ 28,500,000 | ||||
Standby Letters of Credit | Backstop Standby Letters of Credit | |||||
Line of Credit Facility [Abstract] | |||||
Credit facility borrowing capacity | $ 30,000,000 |
Borrowings - Debt Redemption (D
Borrowings - Debt Redemption (Details) - Senior Notes | 3 Months Ended |
Dec. 31, 2018 | |
8 3/4% Senior Notes Maturing March 2022 | |
Debt Instrument [Line Items] | |
Stated interest rate on debt instrument (percent) | 8.75% |
8 3/4% Senior Notes Maturing March 2022 | Debt Instrument, Redemption, Period One | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100.00% |
8 3/4% Senior Notes Maturing March 2022 | Debt Instrument, Redemption, Period Two | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 104.375% |
8 3/4% Senior Notes Maturing March 2022 | Debt Instrument, Redemption, Period Three | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 102.188% |
8 3/4% Senior Notes Maturing March 2022 | Debt Instrument, Redemption, Period Four | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100.00% |
7 1/4% Senior Notes Maturing February 2023 | |
Debt Instrument [Line Items] | |
Stated interest rate on debt instrument (percent) | 7.25% |
7 1/4% Senior Notes Maturing February 2023 | Debt Instrument, Redemption, Period One | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 103.625% |
7 1/4% Senior Notes Maturing February 2023 | Debt Instrument, Redemption, Period Two | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 102.417% |
7 1/4% Senior Notes Maturing February 2023 | Debt Instrument, Redemption, Period Three | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 101.208% |
7 1/4% Senior Notes Maturing February 2023 | Debt Instrument, Redemption, Period Four | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100.00% |
6 3/4% Senior Notes Maturing March of 2025 | |
Debt Instrument [Line Items] | |
Stated interest rate on debt instrument (percent) | 6.75% |
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period One | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100.00% |
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period Two | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 105.063% |
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period Three | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 103.375% |
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period Four | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 101.688% |
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period Five | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100.00% |
5 7/8% Senior Notes Maturing October 2027 | |
Debt Instrument [Line Items] | |
Stated interest rate on debt instrument (percent) | 5.875% |
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period One | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100.00% |
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period Two | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 102.938% |
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period Three | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 101.958% |
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period Four | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100.979% |
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period Five | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100.00% |
Contingencies - Warranty (Detai
Contingencies - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Standard product warranty length, minimum | 1 year | |
Standard product warranty length, maximum | 2 years | |
Limited product warranty length (up to) | 10 years | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 15,331 | $ 18,091 |
Accruals for warranties issued | 2,305 | 4,212 |
Changes in liability related to warranties existing in prior periods | (1,874) | (2,296) |
Payments made | (2,330) | (4,191) |
Balance at end of period | $ 13,432 | $ 15,816 |
Contingencies - Litigation and
Contingencies - Litigation and Other Matters (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Legal Reserve | ||
Loss Contingencies [Line Items] | ||
Accrued amounts for litigation and other contingent liabilities | $ 3.3 | $ 3.7 |
Performance Bonds | ||
Loss Contingencies [Line Items] | ||
Letters of credit secured using cash collateral | 41.2 | |
Outstanding performance bonds | $ 250.1 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 1,760 | $ 1,578 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 1,760 | 1,578 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Development projects in progress | 1,605 | 1,312 |
Land held for sale | 1,724 | |
Unconsolidated entity investments | 80 | |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Development projects in progress | 0 | 0 |
Land held for sale | 0 | |
Unconsolidated entity investments | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Development projects in progress | 0 | 0 |
Land held for sale | 0 | |
Unconsolidated entity investments | 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Development projects in progress | $ 1,605 | 1,312 |
Land held for sale | 1,724 | |
Unconsolidated entity investments | $ 80 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 1,228,150 | $ 1,227,141 |
Carrying Amount | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 1,163,630 | 1,163,138 |
Carrying Amount | Junior Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 64,520 | 64,003 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 1,112,866 | 1,160,217 |
Fair Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 1,048,346 | 1,096,214 |
Fair Value | Junior Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 64,520 | $ 64,003 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Impairment Charge | $ 1,007 | $ 500 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit), including discontinued operations | $ (3.9) | $ 108 |
Tax credit | 5.3 | |
Deferred tax assets, tax credit carryforwards | $ 9.6 |
Stock-based Compensation - Nar
Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,114 | $ 2,610 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs related to non-vested stock options award | $ 300 | $ 200 | |
Weighted average period to recognize remaining cost | 1 year 8 months 19 days | ||
Nonvested Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs related to non-vested stock awards | $ 14,800 | $ 8,800 | |
Weighted average period to recognize remaining cost | 2 years 2 months 9 days |
Stock-based Compensation - Sto
Stock-based Compensation - Stock Options Outstanding (Details) - Stock Options | 3 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares | |
Outstanding at beginning of period (shares) | shares | 533,052 |
Granted (shares) | shares | 25,230 |
Exercised (shares) | shares | (1,000) |
Forfeited (shares) | shares | (1,319) |
Outstanding at end of period (shares) | shares | 555,963 |
Exercisable at end of period (shares) | shares | 504,092 |
Vested or expected to vest in the future (shares) | shares | 552,799 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 14.26 |
Granted (in dollars per share) | $ / shares | 10.38 |
Exercised (in dollars per share) | $ / shares | 7.56 |
Forfeited (in dollars per share) | $ / shares | 11.53 |
Outstanding at end of period (in dollars per share) | $ / shares | 14.10 |
Exercisable at end of period (in dollars per share) | $ / shares | 14.13 |
Vested or expected to vest in the future (in dollars per share) | $ / shares | $ 14.13 |
Stock-based Compensation - Res
Stock-based Compensation - Restricted Stock Awards (Details) | 3 Months Ended |
Dec. 31, 2018shares | |
Shares | |
Granted (in shares) | 441,991 |
Performance-Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Granted and Vested in Period | 86,050 |
Restricted Stock | |
Shares | |
Beginning of period (in shares) | 1,076,568 |
Granted (in shares) | 909,810 |
Vested (in shares) | (506,089) |
Forfeited (in shares) | (28,349) |
End of period (in shares) | 1,451,940 |
Performance-Based Restricted Stock Awards | |
Shares | |
Beginning of period (in shares) | 644,785 |
Granted (in shares) | 467,819 |
Vested (in shares) | (309,843) |
Forfeited (in shares) | (7,020) |
End of period (in shares) | 795,741 |
Time Based Restricted Stock Awards | |
Shares | |
Beginning of period (in shares) | 431,783 |
Vested (in shares) | (196,246) |
Forfeited (in shares) | (21,329) |
End of period (in shares) | 656,199 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share. Basic and Dilutive (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
(Loss) income from continuing operations | $ 7,322 | $ (130,575) |
Loss from discontinued operations | (11) | (372) |
Net (loss) income | $ 7,311 | $ (130,947) |
Basic weighted-average shares (in shares) | 31,967 | 32,055 |
Dilutive effect of restricted stock awards (in shares) | 244 | 0 |
Dilutive effect of stock options (in shares) | 11 | 0 |
Dilutive weighted-average shares (in shares) | 32,222 | 32,055 |
Basic and diluted earnings (loss) per share: | ||
Continuing Operations (in dollars per share) | $ 0.23 | $ (4.07) |
Discontinued Operations (in dollars per share) | 0 | (0.01) |
Total (in dollars per shares) | $ 0.23 | $ (4.08) |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | ||
Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 493 | 556 |
Time Based Restricted Stock Awards | ||
Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 195 | 828 |
Performance Shares | ||
Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 628 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Other Liabilities Disclosure [Abstract] | ||||
Accrued interest | $ 24,217 | $ 14,401 | ||
Accrued bonus and deferred compensation | 20,236 | 41,508 | ||
Customer deposits | 13,462 | 14,903 | ||
Accrued warranty expense | 13,432 | 15,331 | $ 15,816 | $ 18,091 |
Litigation accrual | 3,348 | 3,656 | ||
Income tax liabilities | 856 | 710 | ||
Other | 37,082 | 35,880 | ||
Total | $ 112,633 | $ 126,389 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018USD ($)segmentstateregion | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of states in which home building segments operate | state | 13 | ||
Number of regions in which entity operates | region | 3 | ||
Number of homebuilding segments | segment | 3 | ||
Segment Reporting Information [Line Items] | |||
Revenue | $ 402,040 | $ 372,489 | |
Operating income | 3,506 | 6,681 | |
Depreciation and amortization | 2,770 | 2,507 | |
Capital Expenditures | 6,354 | 3,702 | |
Assets | 2,103,390 | $ 2,128,102 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income | 31,036 | 35,416 | |
Depreciation and amortization | 2,426 | 2,274 | |
Corporate and unallocated | |||
Segment Reporting Information [Line Items] | |||
Operating income | (27,530) | (28,735) | |
Depreciation and amortization | 344 | 233 | |
Capital Expenditures | 2,082 | 588 | |
Assets | 551,401 | 542,713 | |
West Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue | 208,944 | 177,971 | |
West Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income | 24,261 | 21,110 | |
Depreciation and amortization | 1,278 | 1,256 | |
Capital Expenditures | 2,651 | 1,776 | |
Assets | 855,823 | 835,230 | |
East Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue | 88,746 | 88,853 | |
East Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income | 5,395 | 7,396 | |
Depreciation and amortization | 538 | 439 | |
Capital Expenditures | 762 | 595 | |
Assets | 305,232 | 335,474 | |
Southeast Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue | 104,350 | 105,665 | |
Southeast Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income | 1,380 | 6,910 | |
Depreciation and amortization | 610 | 579 | |
Capital Expenditures | 859 | $ 743 | |
Assets | $ 390,934 | $ 414,685 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Unaudited Condensed Consolidating Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | $ 378 | $ 378 | ||
ASSETS | ||||
Cash and cash equivalents | 84,399 | 139,805 | $ 177,812 | |
Restricted cash | 12,637 | 13,443 | $ 12,082 | |
Accounts receivable (net of allowance of $378 and $378, respectively) | 19,349 | 24,647 | ||
Owned inventory | 1,722,120 | 1,692,284 | ||
Investments in unconsolidated entities | 3,650 | 4,035 | ||
Deferred tax assets, net | 218,025 | 213,955 | ||
Property and equipment, net | 24,408 | 20,843 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany | 0 | 0 | ||
Goodwill | 10,605 | 9,751 | ||
Other assets | 8,197 | 9,339 | ||
Total assets | 2,103,390 | 2,128,102 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Trade accounts payable | 99,864 | 126,432 | ||
Other liabilities | 112,633 | 126,389 | ||
Intercompany | 0 | 0 | ||
Total debt, net | 1,255,784 | 1,231,254 | ||
Total liabilities | 1,468,281 | 1,484,075 | ||
Stockholders’ equity | 635,109 | 644,027 | ||
Total liabilities and stockholders’ equity | 2,103,390 | 2,128,102 | ||
Consolidating Adjustments | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable (net of allowance of $378 and $378, respectively) | 0 | 0 | ||
Owned inventory | 0 | 0 | ||
Investments in unconsolidated entities | 0 | 0 | ||
Deferred tax assets, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investments in subsidiaries | (636,800) | (645,086) | ||
Intercompany | (958,442) | (924,829) | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (1,595,242) | (1,569,915) | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Trade accounts payable | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Intercompany | (958,442) | (924,829) | ||
Total debt, net | 0 | 0 | ||
Total liabilities | (958,442) | (924,829) | ||
Stockholders’ equity | (636,800) | (645,086) | ||
Total liabilities and stockholders’ equity | (1,595,242) | (1,569,915) | ||
Beazer Homes USA, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | 378 | $ 378 | ||
ASSETS | ||||
Cash and cash equivalents | 82,115 | 93,875 | ||
Restricted cash | 11,897 | 10,921 | ||
Accounts receivable (net of allowance of $378 and $378, respectively) | 0 | 0 | ||
Owned inventory | 0 | 0 | ||
Investments in unconsolidated entities | 773 | 773 | ||
Deferred tax assets, net | 218,025 | 213,955 | ||
Property and equipment, net | 0 | 0 | ||
Investments in subsidiaries | 636,800 | 645,086 | ||
Intercompany | 963,614 | 922,525 | ||
Goodwill | 0 | 0 | ||
Other assets | 982 | 694 | ||
Total assets | 1,914,206 | 1,887,829 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Trade accounts payable | 0 | 0 | ||
Other liabilities | 24,261 | 14,357 | ||
Intercompany | 1,686 | 2,304 | ||
Total debt, net | 1,253,150 | 1,227,141 | ||
Total liabilities | 1,279,097 | 1,243,802 | ||
Stockholders’ equity | 635,109 | 644,027 | ||
Total liabilities and stockholders’ equity | 1,914,206 | 1,887,829 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 2,267 | 45,355 | ||
Restricted cash | 740 | 2,522 | ||
Accounts receivable (net of allowance of $378 and $378, respectively) | 19,349 | 24,647 | ||
Owned inventory | 1,722,120 | 1,692,284 | ||
Investments in unconsolidated entities | 2,877 | 3,262 | ||
Deferred tax assets, net | 0 | 0 | ||
Property and equipment, net | 24,408 | 20,843 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany | (6,858) | 0 | ||
Goodwill | 10,605 | 9,751 | ||
Other assets | 7,215 | 8,626 | ||
Total assets | 1,782,723 | 1,807,290 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Trade accounts payable | 99,864 | 126,432 | ||
Other liabilities | 88,359 | 111,906 | ||
Intercompany | 956,756 | 922,525 | ||
Total debt, net | 2,634 | 4,113 | ||
Total liabilities | 1,147,613 | 1,164,976 | ||
Stockholders’ equity | 635,110 | 642,314 | ||
Total liabilities and stockholders’ equity | 1,782,723 | 1,807,290 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 17 | 575 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable (net of allowance of $378 and $378, respectively) | 0 | 0 | ||
Owned inventory | 0 | 0 | ||
Investments in unconsolidated entities | 0 | 0 | ||
Deferred tax assets, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany | 1,686 | 2,304 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 19 | ||
Total assets | 1,703 | 2,898 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Trade accounts payable | 0 | 0 | ||
Other liabilities | 13 | 126 | ||
Intercompany | 0 | 0 | ||
Total debt, net | 0 | 0 | ||
Total liabilities | 13 | 126 | ||
Stockholders’ equity | 1,690 | 2,772 | ||
Total liabilities and stockholders’ equity | $ 1,703 | $ 2,898 |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Unaudited Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | $ 402,040 | $ 372,489 |
Home construction and land sales expenses | 340,378 | 311,660 |
Inventory impairments and abandonments | 1,007 | 0 |
Gross profit | 60,655 | 60,829 |
Commissions | 15,737 | 14,356 |
General and administrative expenses | 38,642 | 37,285 |
Depreciation and amortization | 2,770 | 2,507 |
Operating income | 3,506 | 6,681 |
Equity in loss of unconsolidated entities | (64) | (101) |
Loss on extinguishment of debt | 0 | (25,904) |
Other (expense) income, net | (42) | (3,145) |
(Loss) income from continuing operations before income taxes | 3,400 | (22,469) |
Expense (benefit) from income taxes | (3,922) | 108,106 |
Equity in income of subsidiaries | 0 | 0 |
Income (loss) from continuing operations | 7,322 | (130,575) |
Loss from discontinued operations | (11) | (372) |
Equity in loss of subsidiaries from discontinued operations | 0 | 0 |
Net income (loss) | 7,311 | (130,947) |
Consolidating Adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | (115) | (14) |
Home construction and land sales expenses | (115) | (14) |
Inventory impairments and abandonments | 0 | |
Gross profit | 0 | 0 |
Commissions | 0 | 0 |
General and administrative expenses | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Operating income | 0 | 0 |
Equity in loss of unconsolidated entities | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Other (expense) income, net | 0 | 0 |
(Loss) income from continuing operations before income taxes | 0 | 0 |
Expense (benefit) from income taxes | 0 | 0 |
Equity in income of subsidiaries | (45,387) | 96,953 |
Income (loss) from continuing operations | (45,387) | 96,953 |
Loss from discontinued operations | 0 | 0 |
Equity in loss of subsidiaries from discontinued operations | 11 | 372 |
Net income (loss) | (45,376) | 97,325 |
Beazer Homes USA, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | 0 | 0 |
Home construction and land sales expenses | 17,323 | 16,468 |
Inventory impairments and abandonments | 115 | |
Gross profit | (17,438) | (16,468) |
Commissions | 0 | 0 |
General and administrative expenses | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Operating income | (17,438) | (16,468) |
Equity in loss of unconsolidated entities | 0 | 0 |
Loss on extinguishment of debt | (25,904) | |
Other (expense) income, net | (242) | (3,435) |
(Loss) income from continuing operations before income taxes | (17,680) | (45,807) |
Expense (benefit) from income taxes | 20,385 | (12,185) |
Equity in income of subsidiaries | 45,387 | (96,953) |
Income (loss) from continuing operations | 7,322 | (130,575) |
Loss from discontinued operations | 0 | 0 |
Equity in loss of subsidiaries from discontinued operations | (11) | (372) |
Net income (loss) | 7,311 | (130,947) |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | 402,040 | 372,489 |
Home construction and land sales expenses | 323,170 | 295,206 |
Inventory impairments and abandonments | 892 | |
Gross profit | 77,978 | 77,283 |
Commissions | 15,737 | 14,356 |
General and administrative expenses | 38,646 | 37,244 |
Depreciation and amortization | 2,770 | 2,507 |
Operating income | 20,825 | 23,176 |
Equity in loss of unconsolidated entities | (64) | (101) |
Loss on extinguishment of debt | 0 | |
Other (expense) income, net | 204 | 296 |
(Loss) income from continuing operations before income taxes | 20,965 | 23,371 |
Expense (benefit) from income taxes | (24,336) | 120,303 |
Equity in income of subsidiaries | 0 | 0 |
Income (loss) from continuing operations | 45,301 | (96,932) |
Loss from discontinued operations | (7) | (369) |
Equity in loss of subsidiaries from discontinued operations | 0 | 0 |
Net income (loss) | 45,294 | (97,301) |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total revenue | 115 | 14 |
Home construction and land sales expenses | 0 | 0 |
Inventory impairments and abandonments | 0 | |
Gross profit | 115 | 14 |
Commissions | 0 | 0 |
General and administrative expenses | (4) | 41 |
Depreciation and amortization | 0 | 0 |
Operating income | 119 | (27) |
Equity in loss of unconsolidated entities | 0 | 0 |
Loss on extinguishment of debt | 0 | |
Other (expense) income, net | (4) | (6) |
(Loss) income from continuing operations before income taxes | 115 | (33) |
Expense (benefit) from income taxes | 29 | (12) |
Equity in income of subsidiaries | 0 | 0 |
Income (loss) from continuing operations | 86 | (21) |
Loss from discontinued operations | (4) | (3) |
Equity in loss of subsidiaries from discontinued operations | 0 | 0 |
Net income (loss) | $ 82 | $ (24) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Unaudited Condensed Consolidating Statements of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ (54,690) | $ (102,224) |
Cash flows from investing activities: | ||
Capital expenditures | (6,354) | (3,702) |
Proceeds from sale of fixed assets | 54 | 84 |
Investments in unconsolidated entities | 0 | (421) |
Return of capital from unconsolidated entities | 0 | |
Advances to/from subsidiaries | 0 | 0 |
Net cash used in investing activities | (6,300) | (4,039) |
Cash flows from financing activities: | ||
Repayment of debt | (1,479) | (401,481) |
Proceeds from issuance of new debt | 0 | 400,000 |
Repayment of borrowings from credit facility | (75,000) | 0 |
Borrowings from credit facility | 100,000 | 0 |
Debt issuance costs | (400) | (5,649) |
Repurchase of common stock | (16,500) | 0 |
Tax payments for stock-based compensation awards | (1,850) | (1,322) |
Advances to/from subsidiaries | 0 | 0 |
Other financing activities | 7 | 0 |
Net cash provided by (used in) financing activities | 4,778 | (8,452) |
Decrease in cash, cash equivalents, and restricted cash | (56,212) | (114,715) |
Cash, cash equivalents, and restricted cash at beginning of period | 153,248 | 304,609 |
Cash, cash equivalents, and restricted cash at end of period | 97,036 | 189,894 |
Consolidating Adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of fixed assets | 0 | 0 |
Investments in unconsolidated entities | 0 | |
Return of capital from unconsolidated entities | 0 | |
Advances to/from subsidiaries | (21,204) | 187,477 |
Net cash used in investing activities | (21,204) | 187,477 |
Cash flows from financing activities: | ||
Repayment of debt | 0 | 0 |
Proceeds from issuance of new debt | 0 | |
Repayment of borrowings from credit facility | 0 | |
Borrowings from credit facility | 0 | |
Debt issuance costs | 0 | 0 |
Repurchase of common stock | 0 | |
Tax payments for stock-based compensation awards | 0 | 0 |
Advances to/from subsidiaries | 21,204 | (186,563) |
Other financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | 21,204 | (186,563) |
Decrease in cash, cash equivalents, and restricted cash | 0 | 914 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | (7,161) |
Cash, cash equivalents, and restricted cash at end of period | 0 | (6,247) |
Beazer Homes USA, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (31,908) | 91,465 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of fixed assets | 0 | 0 |
Investments in unconsolidated entities | 0 | |
Return of capital from unconsolidated entities | 532 | |
Advances to/from subsidiaries | 21,204 | (187,451) |
Net cash used in investing activities | 21,736 | (187,451) |
Cash flows from financing activities: | ||
Repayment of debt | (11) | (400,012) |
Proceeds from issuance of new debt | 400,000 | |
Repayment of borrowings from credit facility | (75,000) | |
Borrowings from credit facility | 100,000 | |
Debt issuance costs | (400) | (5,649) |
Repurchase of common stock | (16,500) | |
Tax payments for stock-based compensation awards | (1,850) | (1,322) |
Advances to/from subsidiaries | 0 | 0 |
Other financing activities | 7 | 0 |
Net cash provided by (used in) financing activities | 6,246 | (6,983) |
Decrease in cash, cash equivalents, and restricted cash | (3,926) | (102,969) |
Cash, cash equivalents, and restricted cash at beginning of period | 104,796 | 294,192 |
Cash, cash equivalents, and restricted cash at end of period | 100,870 | 191,223 |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (22,756) | (193,721) |
Cash flows from investing activities: | ||
Capital expenditures | (6,354) | (3,702) |
Proceeds from sale of fixed assets | 54 | 84 |
Investments in unconsolidated entities | (421) | |
Return of capital from unconsolidated entities | 0 | |
Advances to/from subsidiaries | 0 | 0 |
Net cash used in investing activities | (6,300) | (4,039) |
Cash flows from financing activities: | ||
Repayment of debt | (1,468) | (1,469) |
Proceeds from issuance of new debt | 0 | |
Repayment of borrowings from credit facility | 0 | |
Borrowings from credit facility | 0 | |
Debt issuance costs | 0 | 0 |
Repurchase of common stock | 0 | |
Tax payments for stock-based compensation awards | 0 | 0 |
Advances to/from subsidiaries | (21,204) | 186,563 |
Other financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | (22,672) | 185,094 |
Decrease in cash, cash equivalents, and restricted cash | (51,728) | (12,666) |
Cash, cash equivalents, and restricted cash at beginning of period | 47,877 | 16,854 |
Cash, cash equivalents, and restricted cash at end of period | (3,851) | 4,188 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (26) | 32 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of fixed assets | 0 | 0 |
Investments in unconsolidated entities | 0 | |
Return of capital from unconsolidated entities | (532) | |
Advances to/from subsidiaries | 0 | (26) |
Net cash used in investing activities | (532) | (26) |
Cash flows from financing activities: | ||
Repayment of debt | 0 | 0 |
Proceeds from issuance of new debt | 0 | |
Repayment of borrowings from credit facility | 0 | |
Borrowings from credit facility | 0 | |
Debt issuance costs | 0 | 0 |
Repurchase of common stock | 0 | |
Tax payments for stock-based compensation awards | 0 | 0 |
Advances to/from subsidiaries | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Decrease in cash, cash equivalents, and restricted cash | (558) | 6 |
Cash, cash equivalents, and restricted cash at beginning of period | 575 | 724 |
Cash, cash equivalents, and restricted cash at end of period | $ 17 | $ 730 |
Discontinued Operations - Resul
Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventory impairments and lot option abandonments | $ 1,007 | $ 0 |
Loss from discontinued operations, net of tax | (11) | (372) |
Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total revenue | 55 | 625 |
Home construction and land sales expenses | 33 | 667 |
Inventory impairments and lot option abandonments | 0 | 450 |
Gross profit (loss) | 22 | (492) |
General and administrative expenses | 33 | 16 |
Operating loss | (11) | (508) |
Equity in (loss) income of unconsolidated entities | (1) | 12 |
Other expense, net | (1) | (3) |
Loss from discontinued operations before income taxes | (13) | (499) |
Benefit from income taxes | (2) | (127) |
Loss from discontinued operations, net of tax | $ (11) | $ (372) |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 15, 2018 | Feb. 01, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Completed common stock repurchase (in shares) | 1,600,000 | ||
Shares repurchased, value | $ 16.5 | ||
Remaining authorized repurchase amount | $ 33.5 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Completed common stock repurchase (in shares) | 561,851 | ||
Shares repurchased, value | $ 6.4 | ||
Average price per share (in dollars per share) | $ 11.44 | ||
Remaining authorized repurchase amount | $ 27.1 |