Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Nov. 05, 2021 | Mar. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2021 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-12822 | ||
Entity Registrant Name | BEAZER HOMES USA, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-2086934 | ||
Entity Address, Address Line One | 1000 Abernathy Road | ||
Entity Address, Address Line Two | Suite 260 | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30328 | ||
City Area Code | 770 | ||
Local Phone Number | 829-3700 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | BZH | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 635,661,564 | ||
Entity Common Stock, Shares Outstanding | 31,294,498 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement for the registrant’s 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended September 30, 2021. | ||
Entity Central Index Key | 0000915840 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 246,715 | $ 327,693 |
Restricted cash | 27,428 | 14,835 |
Accounts receivable (net of allowance of $290 and $358, respectively) | 25,685 | 19,817 |
Income tax receivable | 9,929 | 9,252 |
Owned inventory | 1,501,602 | 1,350,738 |
Investments in unconsolidated entities | 4,464 | 4,003 |
Deferred tax assets, net | 204,766 | 225,143 |
Property and equipment, net | 22,885 | 22,280 |
Operating lease right-of-use assets | 12,344 | 13,103 |
Goodwill | 11,376 | 11,376 |
Other assets | 11,616 | 9,240 |
Total assets | 2,078,810 | 2,007,480 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Trade accounts payable | 133,391 | 132,192 |
Operating lease liabilities | 14,154 | 15,333 |
Other liabilities | 152,351 | 135,983 |
Total debt (net of debt issuance costs of $8,983 and $10,891, respectively) | 1,054,030 | 1,130,801 |
Total liabilities | 1,353,926 | 1,414,309 |
Stockholders’ equity: | ||
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued) | 0 | 0 |
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,294,198 issued and outstanding and 31,012,326 issued and outstanding, respectively) | 31 | 31 |
Paid-in capital | 866,158 | 856,466 |
Accumulated deficit | (141,305) | (263,326) |
Total stockholders’ equity | 724,884 | 593,171 |
Total liabilities and stockholders’ equity | $ 2,078,810 | $ 2,007,480 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
ASSETS | ||
Allowances for accounts receivable | $ 290 | $ 358 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Debt issuance costs | $ 8,983 | $ 10,891 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 63,000,000 | 63,000,000 |
Common stock, shares issued (in shares) | 31,294,198 | 31,012,326 |
Common stock, shares outstanding (in shares) | 31,294,198 | 31,012,326 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | |||
Total revenue | $ 2,140,303,000 | $ 2,127,077,000 | $ 2,087,739,000 |
Home construction and land sales expenses | 1,735,195,000 | 1,776,534,000 | 1,773,085,000 |
Inventory impairments and abandonments | 853,000 | 2,903,000 | 148,618,000 |
Gross profit | 404,255,000 | 347,640,000 | 166,036,000 |
Commissions | 80,125,000 | 82,507,000 | 79,802,000 |
General and administrative expenses | 163,285,000 | 170,386,000 | 161,371,000 |
Depreciation and amortization | 13,976,000 | 15,640,000 | 14,759,000 |
Operating income (loss) | 146,869,000 | 79,107,000 | (89,896,000) |
Equity in income of unconsolidated entities | 594,000 | 347,000 | 404,000 |
Loss on extinguishment of debt, net | (2,025,000) | 0 | (24,920,000) |
Other expense, net | (1,712,000) | (8,165,000) | (2,226,000) |
Income (loss) from continuing operations before income taxes | 143,726,000 | 71,289,000 | (116,638,000) |
Expense (benefit) from income taxes | 21,546,000 | 17,973,000 | (37,217,000) |
Income (loss) from continuing operations | 122,180,000 | 53,316,000 | (79,421,000) |
Loss from discontinued operations, net of tax | (159,000) | (1,090,000) | (99,000) |
Net income (loss) | $ 122,021,000 | $ 52,226,000 | $ (79,520,000) |
Weighted-average number of shares: | |||
Basic (in shares) | 29,954 | 29,704 | 30,617 |
Diluted (in shares) | 30,437 | 29,948 | 30,617 |
Basic income (loss) per share: | |||
Continuing operations (in dollars per share) | $ 4.08 | $ 1.80 | $ (2.59) |
Discontinued operations (in dollars per share) | (0.01) | (0.04) | (0.01) |
Total (in dollars per share) | 4.07 | 1.76 | (2.60) |
Diluted income (loss) per share: | |||
Continuing operations (in dollars per share) | 4.01 | 1.78 | (2.59) |
Discontinued operations (in dollars per share) | 0 | (0.04) | (0.01) |
Total (in dollars per share) | $ 4.01 | $ 1.74 | $ (2.60) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Deficit |
Beginning balance (in shares) at Sep. 30, 2018 | 33,522,000 | |||
Beginning balance at Sep. 30, 2018 | $ 644,027 | $ 34 | $ 880,025 | $ (236,032) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income and comprehensive (loss) income | (79,520) | (79,520) | ||
Stock-based compensation expense | $ 10,526 | 10,526 | ||
Exercises of stock options (in shares) | 31,450 | 32,000 | ||
Exercises of stock options | $ 314 | 314 | ||
Shares issued under employee stock plans, net (in shares) | 917,000 | |||
Forfeiture and other settlements of restricted stock (in shares) | (68,000) | |||
Common stock redeemed for tax liability (in shares) | (185,000) | |||
Common stock redeemed for tax liability | (1,969) | (1,969) | ||
Share repurchases (in shares) | (3,285,000) | |||
Share repurchases | (34,624) | $ (3) | (34,621) | |
Ending balance (in shares) at Sep. 30, 2019 | 30,933,000 | |||
Ending balance at Sep. 30, 2019 | 538,754 | $ 31 | 854,275 | (315,552) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income and comprehensive (loss) income | 52,226 | 52,226 | ||
Stock-based compensation expense | $ 10,036 | 10,036 | ||
Exercises of stock options (in shares) | 128,921 | 52,000 | ||
Exercises of stock options | $ 226 | 226 | ||
Shares issued under employee stock plans, net (in shares) | 588,000 | |||
Forfeiture and other settlements of restricted stock (in shares) | (26,000) | |||
Forfeiture and other settlements of restricted stock | (2,058) | (2,058) | ||
Common stock redeemed for tax liability (in shares) | (173,000) | |||
Common stock redeemed for tax liability | (2,686) | (2,686) | ||
Share repurchases (in shares) | (362,000) | |||
Share repurchases | (3,327) | $ 0 | (3,327) | |
Ending balance (in shares) at Sep. 30, 2020 | 31,012,000 | |||
Ending balance at Sep. 30, 2020 | 593,171 | $ 31 | 856,466 | (263,326) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income and comprehensive (loss) income | 122,021 | 122,021 | ||
Stock-based compensation expense | $ 12,167 | 12,167 | ||
Exercises of stock options (in shares) | 278,206 | 198,000 | ||
Exercises of stock options | $ 569 | 569 | ||
Shares issued under employee stock plans, net (in shares) | 417,000 | |||
Forfeiture and other settlements of restricted stock (in shares) | (29,000) | |||
Forfeiture and other settlements of restricted stock | 0 | 0 | ||
Common stock redeemed for tax liability (in shares) | (304,000) | |||
Common stock redeemed for tax liability | (3,044) | (3,044) | ||
Ending balance (in shares) at Sep. 30, 2021 | 31,294,000 | |||
Ending balance at Sep. 30, 2021 | $ 724,884 | $ 31 | $ 866,158 | $ (141,305) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 122,021,000 | $ 52,226,000 | $ (79,520,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 13,976,000 | 15,640,000 | 14,759,000 |
Stock-based compensation expense | 12,167,000 | 10,036,000 | 10,526,000 |
Inventory impairments and abandonments | 853,000 | 2,903,000 | 148,618,000 |
Deferred and other income tax expense (benefit) | 21,501,000 | 17,664,000 | (37,245,000) |
Gain on sale of fixed assets | (392,000) | (335,000) | (232,000) |
Change in allowance for doubtful accounts | (68,000) | 54,000 | (74,000) |
Equity in income of unconsolidated entities | (594,000) | (347,000) | (403,000) |
Cash distributions of income from unconsolidated entities | 132,000 | 306,000 | 408,000 |
Loss on extinguishment of debt, net | 2,025,000 | 0 | 24,920,000 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (5,800,000) | 6,524,000 | (1,674,000) |
Decrease in income tax receivable | 460,000 | 315,000 | 0 |
(Increase) decrease in inventory | (147,511,000) | 154,865,000 | 42,927,000 |
(Increase) decrease in other assets | (1,922,000) | 3,000 | 323,000 |
Increase in trade accounts payable | 1,199,000 | 1,040,000 | 4,720,000 |
Increase (decrease) in other liabilities | 13,609,000 | 28,201,000 | (14,418,000) |
Net cash provided by operating activities | 31,656,000 | 289,095,000 | 113,635,000 |
Cash flows from investing activities: | |||
Capital expenditures | (14,645,000) | (10,642,000) | (21,356,000) |
Proceeds from sale of fixed assets | 456,000 | 478,000 | 251,000 |
Acquisition, net of cash acquired | 0 | 0 | (4,088,000) |
Return of capital from unconsolidated entities | 0 | 0 | 68,000 |
Net cash used in investing activities | (14,189,000) | (10,164,000) | (25,125,000) |
Cash flows from financing activities: | |||
Repayment of debt | (82,476,000) | (51,150,000) | (576,548,000) |
Proceeds from issuance of new debt | 0 | 0 | 500,000,000 |
Repayment of borrowings from credit facility | 0 | (390,000,000) | (425,000,000) |
Borrowings from credit facility | 0 | 390,000,000 | 425,000,000 |
Debt issuance costs | (901,000) | (202,000) | (6,137,000) |
Repurchase of common stock | 0 | (3,327,000) | (34,624,000) |
Tax payments for stock-based compensation awards | (3,044,000) | (2,686,000) | (1,969,000) |
Stock option exercises and other financing activities | 569,000 | (1,832,000) | 314,000 |
Net cash used in financing activities | (85,852,000) | (59,197,000) | (118,964,000) |
(Decrease) increase in cash, cash equivalents, and restricted cash | (68,385,000) | 219,734,000 | (30,454,000) |
Cash, cash equivalents, and restricted cash at beginning of period | 342,528,000 | 122,794,000 | 153,248,000 |
Cash, cash equivalents, and restricted cash at end of period | $ 274,143,000 | $ 342,528,000 | $ 122,794,000 |
Description of Business
Description of Business | 12 Months Ended |
Sep. 30, 2021 | |
Description of Business [Abstract] | |
Description of Business | Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast. Our homes are designed to appeal to homeowners at different price points across various demographic segments, and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate exceptional value and quality, while seeking to maximize our return on invested capital over the course of a housing cycle. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United St ates of America (GAAP), and present the consolidated financial position, income, stockholders' equity, and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income (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 consolidated statements of operations for all periods presented (see Note 19 for a further discussion of our discontinued operations). Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. Our fiscal year 2020 began on October 1, 2019 and ended on September 30, 2020. Our fiscal year 2019 began on October 1, 2018 and ended on September 30, 2019. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. Cash and Cash Equivalents and Restricted Cash We consider highly liquid investments with maturities of three months or less when acquired to be cash equivalents. As of September 30, 2021, the majority of our cash and cash equivalents were on demand deposits with major banks. These assets were valued at par and had no withdrawal restrictions. Restricted cash includes cash restricted by state law or a contractual requirement, including cash collateral for our outstanding cash-secured letters of credit (refer to Note 8). Accounts Receivable and Allowance Accounts receivable include escrow deposits to be received from title companies associated with closed homes, receivables from municipalities related to the development of utilities or other infrastructure, land banker reimbursements to be received related to land development costs, rebates to be received from our suppliers and other miscellaneous receivables. Generally, we receive cash from title companies within a few days of the home being closed. We regularly review our receivable balances for collectability and record an allowance against any receivable for which collectability is deemed to be uncertain. Owned Inventory Owned inventory includes land acquisition costs, land development costs, home construction costs, capitalized interest, real estate taxes, direct overhead costs and capitalized indirect costs incurred during land development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and other common costs (both incurred and estimated to be incurred) are allocated to individual lots on a pro-rata basis, and the cost of individual lots is transferred to homes under construction when home construction begins. Changes in estimated land and other common costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. Home construction costs are accumulated on a per-home basis. Cost of home closings includes the specific construction costs of the home and the allocated lot costs. Refer to Note 5 for a further discussion and detail of our inventory balance. Inventory Valuation - Projects in Progress Projects in progress inventory includes homes under construction and land under development grouped together as communities. Generally, upon the commencement of land development activities, it may take three We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. We evaluate, among other things, the average sales price and margins on recent home closings, homes in backlog and expected future home sales for each community. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. This undiscounted cash flow analysis requires important assumptions including, among other things, the current and future home sale prices, margins and the pace of closings to occur into the future. For those communities whose carrying values exceed the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. The fair value of the community is estimated using the present value of the estimated future cash flows using discount rates commensurate with the risk associated with the underlying community. Should the estimates or expectations used in determining estimated fair values deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to these assets, and such amounts could be material. Inventory Valuation - Land Held for Future Development Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for future development is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, such as the future enactment of a development plan or the occurrence of outside events. We evaluate the potential plans for each community in land held for future development if changes in facts and circumstances occur that would give rise to a more detailed analysis for a change in the status of a community. Inventory Valuation - Land Held for Sale Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets. We record land held for sale at the lower of the asset's carrying value or fair value less costs to sell (net realizable value). Land is classified as held for sale when the following criteria are met: • management has the authority and commits to a plan to sell the land; • the land is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of land assets; • there is an active program to locate a buyer and the plan to sell the property has been initiated; • the sale of the land is probable within one year; • the property is being actively marketed at a reasonable sale price relative to its current fair value; and • it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We evaluate the net realizable value of a land held for sale asset when indicators of impairment are present. In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals, any recent legitimate offers and listing prices of similar properties. If the current carrying value of the asset exceeds the estimated fair value less cost to sell, the asset is impaired and written down to its estimated fair value less cost to sell. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our analysis. Our assumptions about land sales prices require significant judgment because the market is highly sensitive to changes in economic conditions. We calculate the estimated fair values of land held for sale based on current market conditions and assumptions made by management, which may differ materially from actual results and may result in additional impairments if market conditions deteriorate. Lot Option Agreements and Variable Interest Entities (VIE) In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit 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 at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option 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 September 30, 2021 and September 30, 2020: in thousands Deposits & Remaining As of September 30, 2021 Unconsolidated lot option agreements $ 114,688 $ 676,149 As of September 30, 2020 Unconsolidated lot option agreements $ 75,921 $ 395,133 In accordance with Accounting Standards Codification (ASC) Topic 810, Consolidation (ASC 810), if the entity holding the land under option is a variable VIE, the Company's deposit represents a variable interest in that entity. ASC 810 requires a company consolidate a VIE if the company is determined to be the primary beneficiary. To determine whether we are the primary beneficiary of the VIE, we first evaluate whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to, (1) the ability to determine the budget and scope of land development work, if any; (2) the ability to control financing decisions for the VIE; (3) the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with Beazer; and (4) the ability to change or amend the existing option contract with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE and thus do not consolidate the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE's losses or, if no party absorbs the majority of such losses, if we will benefit from potentially a significant amount of the VIE's expected gains. If we are the primary beneficiary of the VIE, we will consolidate the VIE even though creditors of the VIE have no recourse against the Company. For those we consolidate, we record the remaining contractual purchase price under the applicable lot option agreement, net of option deposits already paid, to consolidated inventory not owned with an offsetting increase to obligations related to consolidated inventory not owned on our consolidated balance sheets. Also, to reflect the total purchase price of this inventory on a consolidated basis, we present the related option deposits as consolidated inventory not owned. No VIEs required consolidation as of September 2021 and 2020 because we have determined that we were not the primary beneficiary of any VIEs. Investments in Unconsolidated Entities We participate in a number of joint ventures and other investments in which we have less than a controlling interest. We enter into the majority of these investments with land developers, other homebuilders and financial partners to acquire attractive land positions, to manage our risk profile and to leverage our capital base. The land positions are developed into finished lots for sale to the unconsolidated entity's members or other third parties. We recognize our share of equity in income (loss) and profits (losses) from the sale of lots to other buyers. Our share of profits from lots we purchase from the unconsolidated entities is deferred and treated as a reduction of the cost of the land purchased from the unconsolidated entity. Such profits are subsequently recognized at the time the home closes and title passes to the homebuyer. We evaluate our investments in unconsolidated entities for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of our investment in the unconsolidated entity has occurred that is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value, which is determined primarily using a discounted cash flow model. Our unconsolidated entities typically obtain secured acquisition, development and construction financing. We account for our interest in unconsolidated entities under the equity method. For additional discussion of these entities, refer to Note 4. Property and Equipment, Net Our property and equipment is recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis based on estimated useful lives as follows: Asset Class Useful Lives Buildings 25 - 30 years Information systems Lesser of estimated useful life of the asset or 5 years Furniture, fixtures and computer and office equipment 3 - 7 years Model and sales office improvements Lesser of estimated useful life of the asset or estimated life of the community Leasehold improvements Lesser of the lease term or the estimated useful life of the asset Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets from the businesses that we acq uire. The Company's entire goodwill balance is recorded in our Southeast reportable segment. The Company evaluates goodwill for impairment at the reporting unit level annually during the fourth quarter or more often if indicators of impairment exist. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of the reporting unit is less than the carrying value, then a quantitative assessment is performed. The fair value of the reporting unit is estimated using a combination of the income approach, utilizing the discounted cash flow method, and the market approach, utilizing readily available market valuation multiples. If the estimated fair value of the reporting unit is less than its carrying value, an impairment will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Determining the fair value of a reporting unit under the quantitative goodwill impairment assessment requires the Company to make estimates and assumptions regarding future operating results, cash flows (including timing), discount rates, expected growth rates, capital expenditures and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of the factors used in assessing fair value are outside the control of management, and these assumptions and estimates may change in future periods. During the fourth quarter of 2021, the Company performed its annual goodwill impairment analysis and concluded our goodwill was not impaired. Other Assets Our other assets principally include prepaid expenses, unamortized debt issuance costs on our Secured Revolving Credit Facility, and assets related to our deferred compensation plan (refer to Note 15 for a discussion of our deferred compensation plan). Other Liabilities Our other liabilities principally include accrued compensations and benefits, accrued interest on our outstanding borrowings, customer deposits, accrued warranty expense, litigation accruals, income tax liabilities and other accruals related to our operations. Refer to Note 12 for a detail of our other liabilities. Income Taxes Our provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities result from deductible or taxable amounts in future years when such assets and liabilities are recovered or settled, and are measured using the enacted tax rates and laws that are expected to be in effect when the assets and liabilities are recovered or settled. We include any estimated interest and penalties on tax related matters in income taxes payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. We record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. Changes in recognition of measurement are recorded in the period in which the change in judgment occurs. Refer to Note 13 for a detailed discussion of our tax provision, deferred tax assets and valuation allowance. Our income tax receivable includes the refundable portion of our alternative minimum tax credit. The alternative minimum tax credit became a refundable credit when the alternative minimum tax was eliminated with the enactment of the Tax Cuts and Jobs Act on December 22, 2017. During fiscal 2019, we recorded our initial refund claim of $4.6 million, or half of our outstanding $9.2 million credit. During fiscal 2020, the enactment of the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27, 2020 enabled us to claim the entire $9.2 million alternative minimum tax credit with the filing of our fiscal 2019 return. As a result, we reduced our deferred tax asset by the remaining $4.6 million of alternative minimum tax credits and increased our tax receivable for the refund we expect to receive. Revenue Recognition 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 i n ASC Topic 606, Revenue from Contracts with Customers . • 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: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Homebuilding revenue $ 2,127,700 $ 2,116,910 $ 2,077,245 Land sales and other revenue 12,603 10,167 10,494 Total revenue (a) $ 2,140,303 $ 2,127,077 $ 2,087,739 (a) Please see Note 18 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $28.5 million and $18.9 million as of September 30, 2021 and September 30, 2020, respectively. Of the customer liabilities outstanding as of September 30, 2020, $18.1 million was recognized in revenue during the year ended September 30, 2021, upon closing of the related homes, and $0.8 million was refunded to or forfeited by the buyer. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Home Construction Expenses Home construction expenses includes the specific construction costs of the home and the allocated lot costs (land acquisition, land development and other common costs are allocated to individual lots on a pro-rata basis based on the number of lots remaining to close). All home closing costs are charged to home construction expenses in the period when the revenues from home closing are recognized. Sales discounts and incentives include cash discounts, discounts on home building options, option upgrades and seller-paid financing or closing costs. Cash discounts are accounted for as a reduction in the sale price of the home, thereby decreasing the amount of revenue we recognize on that closing. All sales incentives other than cash discounts are recognized as a cost of selling the home and are included in home construction expenses. Estimated future warranty costs are charged to home construction expense in the period when the revenues from home closings are recognized. Such estimated warranty costs generally range from 0.3% to 1.0% of total revenue recognized for each home closed. Additional warranty costs are charged to home construction expenses as necessary based on management's estimate of the costs to remediate existing claims. See Note 9 for a more detailed discussion of warranty costs and related reserves. Advertising Costs Advertising costs related to continuing operations of $14.0 million, $15.9 million, and $17.9 million for our fiscal years 2021, 2020 and 2019, respectively, were expensed as incurred and were included in general and administrative (G&A) expenses in the consolidated statements of operations. Fair Value Measurements Certain of our assets are required to be recorded at fair value on a recurring basis, for example, the fair value of our deferred compensation plan assets are based on market-corroborated inputs (level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recovered (level 3). For example, we review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value is based on estimated cash flows discounted for market risks associated with the long-lived assets. The fair value of certain of our financial instruments approximates their carrying amounts due to the short maturity of these assets and liabilities or the variable interest rates on such obligations. The fair value of our publicly-held debt is generally estimated based on quoted bid prices for these instruments (level 2). Certain of our other financial liabilities are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. See Note 10 for additional discussion of our fair value measurements. Stock-Based Compensation We use the Black-Scholes option-pricing model to value our stock option grants. Restricted stock awards with market conditions are valued using the Monte Carlo valuation method. Other restricted stock awards without market conditions are valued based on the market price of the Company's common stock on the date of the grant. In addition, we reflect the benefits of tax deductions in excess of recognized compensation cost as an operating cash outflow. Compensation cost arising from all stock-based compensation awards is recognized as expense using the straight-line method over the vesting period and is included in G&A in our consolidated statements of operations. See Note 16 for additiona l discussion of our stock-based compensation. Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the effect of adopting the new guidance on its consolidated financial statements and related disclosures. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2021 | |
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 total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Supplemental disclosure of non-cash activity: Beginning operating lease right-of-use assets (ASC 842 adoption) (a) $ — $ 13,895 $ — Beginning operating lease liabilities (ASC 842 adoption) (a) — 16,028 — Increase in operating lease right-of-use assets (b) $ 2,905 3,104 — Increase in operating lease liabilities (b) 2,905 3,104 — Supplemental disclosure of cash activity: Interest payments $ 74,171 $ 71,888 $ 101,109 Income tax payments 3,462 546 766 Tax refunds received 1,078 315 12 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 246,715 $ 327,693 $ 106,741 Restricted cash 27,428 14,835 16,053 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 274,143 $ 342,528 $ 122,794 (a) On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC Topic 842, Leases (ASC 842). Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets. (b) Represents additional leases that commenced during the year ended September 30, 2021 and September 30, 2020 . |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Unconsolidated Entities As of September 30, 2021, the Company participated in certain joint ventures and had investments in unconsolidated entities in which it had less than a controlling interest. The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Investment in unconsolidated entities $ 4,464 $ 4,003 Total equity of unconsolidated entities 7,316 7,079 Total outstanding borrowings of unconsolidated entities 12,708 8,807 Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Equity in income of unconsolidated entities $ 594 $ 347 $ 404 For the fiscal years ended September 30, 2021, September 30, 2020 and September 30, 2019, there were no impairments related to investments in unconsolidated entities. Guarantees Historically, the Company's joint ventures typically obtained secured acquisition, development, and construction financing. In addition, the Company and its joint venture partners provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of September 30, 2021 and September 30, 2020, the Company had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities. The Company and its joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate the Company to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During our fiscal years ended September 30, 2021 and 2020, the Company was not required to make any payments related to environmental indemnities. In assessing the need to record a liability for these guarantees, the Company considers its historical experience in being required to perform under the guarantees, the fair value of the collateral underlying these guarantees, and the financial condition of the applicable unconsolidated entities. In addition, the fair value of the collateral of unconsolidated entities is monitored to ensure that the related borrowings do not exceed the specified percentage of the value of the property securing the borrowings. As of September 30, 2021, no liability was recorded for the contingent aspects of any guarantees that were determined to be reasonably possible but not probable. |
Owned Inventory
Owned Inventory | 12 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Owned Inventory | Inventory The components of our owned inventory are as follows as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Homes under construction $ 648,283 $ 525,021 Land under development 648,404 589,763 Land held for future development 19,879 28,531 Land held for sale 9,179 12,622 Capitalized interest 106,985 119,659 Model homes 68,872 75,142 Total owned inventory $ 1,501,602 $ 1,350,738 Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including costs of the underlying lot, direct construction costs and capitalized indirect costs . As of September 30, 2021, we had 2,912 homes under construction, including 576 spec homes totaling $116.4 million (542 in-process spec homes totaling $105.2 million, and 34 finished spec homes totaling $11.2 million). As of September 30, 2020, we had 2,562 homes under construction, including 649 spec homes totaling $135.7 million (516 in-process spec units totaling $93.5 million, and 133 finished spec units totaling $42.2 million). Land under developmen t consist principally of land acquisition, land development and other common costs. These land related costs are allocated to individual lots on a pro-rata basis, and the lot costs are transferred to homes under construction when home construction begins for the respective lots. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract. Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2). These assets are recorded at the lower of the carrying value or fair value less costs to sell (net realizable value). The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and land under development but excludes land held for future development and land held for sale (see Note 6 for additional information on capitalized interest). Total owned inventory by reportable segment is presented in the table below as of September 30, 2021 and September 30, 2020: in thousands Projects in Progress (a) Land Held for Future Land Held Total Owned September 30, 2021 West $ 781,036 $ 3,483 $ 4,478 $ 788,997 East 264,991 10,888 584 276,463 Southeast 269,738 5,508 4,117 279,363 Corporate and unallocated (b) 156,779 — — 156,779 Total $ 1,472,544 $ 19,879 $ 9,179 $ 1,501,602 September 30, 2020 West $ 627,986 $ 3,483 $ 4,516 $ 635,985 East 241,799 14,077 3,702 259,578 Southeast 266,905 10,971 4,404 282,280 Corporate and unallocated (b) 172,895 — — 172,895 Total $ 1,309,585 $ 28,531 $ 12,622 $ 1,350,738 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. (b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Inventory Impairments The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Projects in Progress: West $ — $ — $ 92,912 Southeast — — 858 Corporate and unallocated (a) — — 16,260 Total impairment charges on projects in progress $ — $ — $ 110,030 Land Held for Sale: West $ — $ 89 $ 37,963 Southeast — 8 — Corporate and unallocated (a) — 1,160 625 Total impairment charges on land held for sale $ — $ 1,257 $ 38,588 Abandonments: West $ — $ 923 $ — East 465 82 — Southeast 388 641 — Total abandonment charges $ 853 $ 1,646 $ — Total impairment and abandonment charges $ 853 $ 2,903 $ 148,618 (a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. Projects in Progress Impairments We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. If the aggregate undiscounted cash flows are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the carrying value exceeds the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. During the years ended September 30, 2021 and September 30, 2020, we performed our quarterly projects in progress impairment assessments and determined that no community required an undiscounted cash flow analysis. No project in progress impairments were recognized during fiscal 2021 and 2020 . During the year ended September 30, 2019, we performed discounted cash flow analyses on ten communities, nine in the West segment and one in the Southeast segment, and recognized a total of $110.0 million impairment charges related to our projects in progress. The table below presents, by reportable segment, details of the impairment charges taken on projects in progress for fiscal 2019: Results of Discounted Cash Flow Analyses Prepared $ in thousands # of # of Lots Impairment Estimated Fair Year Ended September 30, 2019 West 9 839 $ 92,912 $ 69,449 Southeast 1 15 858 1,367 Corporate and unallocated (a) — — 16,260 14,166 Total 10 854 $ 110,030 $ 84,982 (a) Amount represents the capitalized interest and indirect cost that were impaired. Capitalized interest and indirect costs are maintained within our Corporate and unallocated segment. During the second quarter of fiscal 2019, we recognized impairment charges of $147.6 million related to fifteen communities in our California submarkets, all of which were previously land held for future development assets. As of the beginning of the quarter, nine of these communities were included in projects in progress due to their activation for development in prior periods, while the remaining six communities were classified as land held for future development and were subsequently reclassified to land held for sale during the second quarter of fiscal 2019 (refer to below section titled "Land Held for Sale Impairments" for further discussion). We performed discounted cash flow analyses for the nine communities in projects in progress and recognized $109.0 million impairment charges, principally due to a reduction in price that is other than temporary based on competitive and market dynamics. Valuation assumptions for communities tested for impairment are specific to each community. The discount rate used depends on the development stage and expected duration of the project, local market conditions, and other specific factors. The estimated future cash flows for each community were determined based on the expected pace of closings and average sales price of the community less expected costs for land acquisition and land development, direct construction, overhead, and interest. The table below presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities impaired during fiscal 2019: Unobservable Inputs Average selling price (in thousands) $350 - $615 Closings per community per month 1 - 4 Discount rate 14.7% - 16.8% Land Held for Sale Impairments Impairments on land held for sale generally represent write downs of these properties to net realizable value based on sales contracts, letters of intent, current market conditions and recent comparable land sale transactions, as applicable. Absent an executed sales contract, our assumptions related to land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results. During the fiscal year ended September 30, 2021, we recognized no land held for sales impairment charges compared to $1.3 million land held for sales impairment charges recognized during the fiscal year ended September 30, 2020. During the second quarter of fiscal 2019, concurrent with the California projects in progress impairment analyses described above, we performed a strategic review of our remaining land held for future development assets in California and determined to sell these parcels. As a consequence of change in strategy with respect to the future use of these assets, we recognized land held for sale impairments totaling $38.6 million for six communities in our West segment. From time-to-time, we may determine to abandon lots or not exercise certain option contracts that are not projected to produce adequate results, or no longer fit with our long-term strategic plan. Additionally, in certain limited instances, we are forced to abandon lots due to seller non-performance, or permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record an abandonment charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. During the fiscal year ended September 30, 2021 and September 30, 2020 |
Interest
Interest | 12 Months Ended |
Sep. 30, 2021 | |
Real Estate Inventory Capitalized Interest Costs [Abstract] | |
Interest | Interest Interest capitalized during the fiscal years ended September 30, 2021, 2020 and 2019 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Capitalized interest in inventory, beginning of period $ 119,659 $ 136,565 $ 144,645 Interest incurred 77,397 87,224 103,970 Capitalized interest impaired — (792) (13,907) Interest expense not qualified for capitalization and included as other expense (a) (2,781) (8,468) (3,109) Capitalized interest amortized to home construction and land sales expenses (b) (87,290) (94,870) (95,034) Capitalized interest in inventory, end of period $ 106,985 $ 119,659 $ 136,565 (a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table presents our property and equipment as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Model furnishings and sales office improvements $ 19,617 $ 17,604 Information systems 18,628 14,930 Furniture, fixtures and office equipment 10,613 10,287 Leasehold improvements 4,279 4,959 Buildings and improvements 1,671 1,671 Property and equipment, gross 54,808 49,451 Less: Accumulated depreciation (31,923) (27,171) Property and equipment, net $ 22,885 $ 22,280 |
Borrowings
Borrowings | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2021 and September 30, 2020: in thousands Maturity Date September 30, 2021 September 30, 2020 Senior Unsecured Term Loan September 2022 $ 50,000 $ 100,000 6 3/4% Senior Notes (2025 Notes) March 2025 229,555 229,555 5 7/8% Senior Notes (2027 Notes) October 2027 363,255 394,000 7 1/4% Senior Notes (2029 Notes) October 2029 350,000 350,000 Unamortized debt issuance costs (8,983) (10,891) Total Senior Notes, net 983,827 1,062,664 Junior Subordinated Notes (net of unamortized accretion of $30,570 and $32,636, respectively) July 2036 70,203 68,137 Revolving Credit Facility February 2024 — — Total debt, net $ 1,054,030 $ 1,130,801 As of September 30, 2021, the future maturities of our borrowings were as follows: Fiscal Year Ended September 30, in thousands 2022 $ 50,000 2023 — 2024 — 2025 229,555 2026 — Thereafter 814,028 Total $ 1,093,583 Secured Revolving Credit Facility The Secured Revolving Credit Facility provides working capital and letter of credit capacity of $250.0 million . The Facility is currently with four lenders. On September 24, 2021, the Company executed a Tenth Amendment (the ""Amendment") to the Facility. The Tenth Amendment, among other things, extended the termination date of the Facility from February 15, 2023 to February 15, 2024. The Facility allows us to issue letters of credit against the undrawn capacity. Subject to our option to cash collateralize our obligations under the Facility upon certain conditions, our obligations under the Facility are secured by liens on substantially all of our personal property and a significant portion of our owned real property. We also pledged approximately $1.1 billion of inventory assets to the Facility to collateralize potential future borrowings or letters of credit (in addition to the letters of credit already issued under the Facility, if any). As of September 30, 2021 and September 30, 2020, no borrowings and no letters of credit were outstanding under the Facility, resulting in a remaining capacity of $250.0 million . The Facility requires compliance with certain covenants, including negative covenants and financial covenants. As of September 30, 2021, the Company believes it was in compliance with all such covenants. Senior Unsecured Term Loan On September 9, 2019, the Company entered into a term loan agreement, which provides for a Senior Unsecured Term Loan. The principal balance as of September 30, 2021 is $50.0 million. The Term Loan will (1) mature in September 2022, with the remaining $50.0 million annual repayment installment due in September 2022; (2) bears interest at a fixed rate of 4.875%; and (3) includes an option to prepay, subject to certain conditions and the payment of certain premiums. The Term Loan contains covenants generally consistent with the covenants contained in the Facility. As of September 30, 2021 , the Company believes it was in compliance with all such covenants. Letter of Credit Facilities The Company has entered into stand-alone, cash-secured letter of credit agreements with banks to maintain pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Facility). As of September 30, 2021 and September 30, 2020, the Company had letters of credit outstanding under these additional facilities of $21.8 million and $12.7 million, respectively, all of which were secured by cash collateral in restricted accounts totaling $22.3 million and $12.9 million, respectively . The Company may enter into additional arrangements to provide additional letter of credit capacity. In May 2018, the Company entered into a reimbursement agreement, which provides for the issuance of performance letters of credit, and an unsecured credit agreement that provides for the issuance of up to $50.0 million of standby letters of credit to backstop the Company's obligations under the reimbursement agreement (collectively, the "Bilateral Facility"). On June 17, 2020, the Company executed an Amendment No. 1 to the Bilateral Facility that extends the termination date of the agreement from June 10, 2021 to June 10, 2022. As of September 30, 2021, the total stated amount of performance letters of credit issued under the reimbursement agreement was $11.8 million (and the stated amount of the backstop standby letter of credit issued under the credit agreement was $40.0 million ). The Company may enter into additional arrangements to provide greater letter of credit capacity. Senior Notes The Company's Senior Notes are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Facility. Each guarantor subsidiary is a 100% owned subsidiary of Beazer Homes. All unsecured Senior Notes rank equally in right of payment with all existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, including indebtedness under the Facility, if outstanding, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes, but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture. The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company believes it was in compliance with the covenants contained in the indentures of all of its Senior Notes as of September 30, 2021. During the fiscal year ended September 30, 2021, we repurchased $30.7 million of our outstanding 2027 Notes using cash on hand, resulting in a loss on extinguishment of debt of $2.0 million. We had no loss on extinguishment of debt during the fiscal year ended September 30, 2020. For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 6 3/4% Senior Notes March 2017 March 2025 Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest 5 7/8% Senior Notes October 2017 October 2027 On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2027 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 105.875% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2027 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest 7 1/4% Senior Notes September 2019 October 2029 On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest Junior Subordinated Notes The Company's uns ecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036 and have an aggregate principal balance of $100.8 million as of September 30, 2021. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, which was a weighted-average of 3.82% as of September 30, 2021. The obligations relating to these notes are subordinated to the Facility and the Senior Notes. In January 2010, the Company restructured $75.0 million of these notes and recorded them at their then estimated fair value. Over the remaining life of the Junior Subordinated Notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of September 30, 2021, the unamortized accretion was $30.6 million and will be amortized over the remaining life of the notes. The remaining $25.8 million of these notes are subject to the terms of the original agreement, have a floating interest rate equal to three-month LIBOR plus 2.45% per annum, resetting quarterly, and are redeemable in whole or in part at par value. The material terms of the $75.0 million restructured notes are identical to the terms of the original agreement except that the floating interest rate is subject to a floor of 4.25% and a cap of 9.25%. In addition, beginning on June 1, 2012, the Company has the option to redeem the $75.0 million principal balance in whole or in part at 75% of par value; beginning on June 1, 2022, the redemption price will increase by 1.785% annually. As of September 30, 2021, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes. |
Contingencies
Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
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 Our homebuilding work is performed by subcontractors who typically must agree to indemnify us with regard to their work and provide certificates of insurance demonstrating that they have met our insurance requirements and have named us as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. Warranty reserves are included in other liabilities within the consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review includes a quarterly analysis of the historical data and trends in warranty expense by division. An analysis by division allows us to consider market specific factors such as warranty experience, the number of home closings, the prices of homes, product mix, and other data in estimating warranty reserves. In addition, the analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in historical data and trends that may need to be separately estimated based on management's judgment of the ultimate cost of repair for that specific issue. While estimated warranty liabilities are adjusted each reporting period based on the results of our quarterly analyses, we may not accurately predict actual warranty costs, which could lead to significant changes in the reserve. In addition, we maintain third-party insurance, subject to applicable self-insured retentions, for most construction defects that we encounter in the normal course of business. We believe that our warranty and litigation accruals and third-party insurance are adequate to cover the ultimate resolution of our potential liabilities associated with known and anticipated warranty and construction defect related claims and litigation. However, there can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers; that we will be able to renew our insurance coverage or renew it at reasonable rates; that we will not be liable for damages, the cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence, or building related claims; or that claims will not arise out of events or circumstances not covered by insurance and/or not subject to effective indemnification agreements with our subcontractors. Changes in warranty reserves are as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Balance at beginning of period $ 13,052 $ 13,388 $ 15,331 Accruals for warranties issued (a) 10,963 10,910 11,847 Changes in liability related to warranties existing in prior periods 864 (1,352) (1,686) Payments made (11,948) (9,894) (12,104) Balance at end of period $ 12,931 $ 13,052 $ 13,388 (a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home. Insurance Recoveries The Company has insurance policies that provide for the reimbursement of certain warranty costs incurred above specified thresholds for each period covered. Amounts recorded for anticipated insurance recoveries are reflected within the consolidated statements of 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 consolidated balance sheets. Litigation In the normal course of business, we are subject to various lawsuits. We cannot predict or determine the timing or final outcome of these lawsuits or the effect that any adverse findings or determinations in pending lawsuits may have on us. In addition, an estimate of possible loss or range of loss, if any, cannot presently be made with respect to certain of these pending matters. An unfavorable determination in any of the pending lawsuits could result in the payment by us of substantial monetary damages that may not be fully covered by insurance. Further, the legal costs associated with the lawsuits and the amount of time required to be spent by management and our Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations, or cash flows. Claims Related to Inventory Impairment Charges. During the quarter ended March 31, 2019, we recognized inventory impairment charges related to 15 communities in California, all of which were previously land held for future development assets. Related to these inventory impairment charges, on June 5, 2019, a putative class action lawsuit was filed against Beazer Homes USA, Inc. and certain of our officers in the U.S. District Court for the Southern District of New York. The proposed class consisted of all persons and entities that acquired our securities between August 1, 2014 and May 2, 2019. On October 18, 2019, the plaintiffs filed a notice of voluntary dismissal of this case, and the Court subsequently entered an order dismissing the case. Beginning June 25, 2019, several shareholder derivative lawsuits relating to the same inventory impairment charges discussed above were filed against Beazer Homes USA, Inc., certain of our officers and members of our Board of Directors in the U.S. District Court for the Northern District of Georgia. The plaintiffs in these cases alleged breaches of fiduciary duty, unjust enrichment and violations of the federal securities laws. These federal actions were consolidated into a single derivative action. Additionally, a substantially similar derivative action was filed in the Superior Court of Fulton County, Georgia. On October 5, 2020, the Court granted a motion to dismiss the consolidated federal action but provided the plaintiffs an opportunity to attempt to amend their complaint. An amended compl aint was filed in late October, and a motion to dismiss was filed thereafter. On March 30, 2021, the Court granted the motion to dismiss the consolidated federal action and dismissed the plaintiffs’ claims with prejudice. The plaintiffs then filed a notice of appeal but subsequently dismissed the appeal. On August 9, 2021, the plaintiffs in the Fulton County action voluntarily dismissed their complaint. 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. We have an accrual of $8.3 million and $5.0 million in other liabilities on our consolidated balance sheets related to litigation and other matters, excluding warranty, as of September 30, 2021 and 2020, respectively. We had outstanding letters of credit and surety bonds of $33.6 million and $282.3 million , respectively, as of September 30, 2021, related principally to our obligations to local governments to construct roads and other improvements in various developments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of the dates presented, we had assets on our consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and • Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. Certain of our assets are required to be recorded at fair value on a 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. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3. During the fiscal year ended September 30, 2021, we recogn ized no impairments on projects in progress and land held for sale. During the fiscal year ended September 30, 2020, we recognized no impairments on projects in progress and $1.3 million on land held for sale. During the fiscal year ended September 30, 2019, we recognized impairments of $110.0 million on projects in progress and $38.6 million on land held for sale. Determining within which hierarchical level an asset or liability falls requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table presents the period-end balances of assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented: in thousands Level 1 Level 2 Level 3 Total As of September 30, 2021 Deferred compensation plan assets (a) $ — $ 2,730 $ — $ 2,730 As of September 30, 2020 Deferred compensation plan assets (a) $ — $ 2,339 $ — $ 2,339 Land held for sale (b) — — 6,240 (c) 6,240 As of September 30, 2019 Deferred compensation plan assets (a) $ — $ 1,970 $ — $ 1,970 Projects in progress (b) — — 84,982 (c) 84,982 Land held for sale (b) — — 5,207 (c) 5,207 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirect costs related to the asset. (c) Amount represents the impairment-date fair value of the projects in progress land held for sale assets that were impaired during the period indicated. The fair value of cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, and amounts due under the Facility (if outstanding) approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value. The following table presents the carrying value and estimated fair value of certain other financial liabilities as of September 30, 2021 and September 30, 2020: As of September 30, 2021 As of September 30, 2020 in thousands Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Senior Notes and Term Loan (b) $ 983,827 $ 1,046,965 $ 1,062,664 $ 1,098,117 Junior Subordinated Notes (c) 70,203 70,203 68,137 68,137 Total $ 1,054,030 $ 1,117,168 $ 1,130,801 $ 1,166,254 (a) Carrying amounts are net of unamortized debt issuance costs or accretion. (b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. |
Operating Leases
Operating Leases | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Certain of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expense that do not depend on an index or rate. We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date. Operating lease expense is included as a component of general and administrative expenses in our consolidated statements of operations. For the fiscal years ended September 30, 2021 and September 30, 2020, we recorded operating lease expense of $4.3 million and $4.5 million, respectively. Under ASC Topic 840, Leases (ASC 840), the Company’s total rental expense was $5.8 million for the fiscal year ended September 30, 2019. Cash payments on lease liabilities during the fiscal years ended September 30, 2021 and September 30, 2020 totaled $4.8 million and $4.6 million, respectively. Sublease income and variable lease expenses are de minimis. At September 30, 2021 and September 30, 2020, weighted-average remaining lease term and discount rate were as follows: Fiscal Year Ended September 30, 2021 2020 Weighted-average remaining lease term 4.8 years 5.1 years Weighted-average discount rate 4.56% 4.87% The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2021: Fiscal Year Ended September 30, in thousands 2022 $ 4,335 2023 3,592 2024 2,470 2025 2,122 2026 1,504 Thereafter 1,785 Total lease payments 15,808 Less: imputed interest 1,654 Total operating lease liabilities $ 14,154 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Sep. 30, 2021 | |
Other Liabilities [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities include the following as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Accrued compensations and benefits $ 54,606 $ 50,246 Customer deposits 28,526 18,937 Accrued interest 22,835 23,870 Accrued warranty expenses 12,931 13,052 Litigation accruals 8,325 4,981 Income tax liabilities — 584 Other 25,128 24,313 Total $ 152,351 $ 135,983 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Current federal (a) $ — $ (4,641) $ (4,935) Current state 1,126 485 693 Deferred federal 20,331 20,639 (31,291) Deferred state 89 1,490 (1,684) Total expense (benefit) $ 21,546 $ 17,973 $ (37,217) (a) Fiscal 2020 federal current benefit is primarily driven by the expected refund of our remaining alternative minimum tax credit balance due to the enactment of the CARES Act. Fiscal 2019 federal current benefit is primarily driven by the expected refund of half of our outstanding alternative minimum tax credit that became refundable due to the enactment of the Tax Cuts and Jobs Act. See Note 2 for further discussion. The expense from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Income tax computed at statutory rate $ 30,182 $ 14,971 $ (24,494) State income taxes, net of federal benefit 1,564 1,300 (590) Deferred rate change (904) 260 (88) Changes in uncertain tax positions — (2) (7) Permanent differences 2,433 2,177 2,908 Tax credits (12,088) (939) (14,902) Other, net 359 206 (44) Total expense (benefit) $ 21,546 $ 17,973 $ (37,217) The principal differences between our effective tax rate and the U.S. federal statutory rate for fiscals 2021, 2020 and 2019 relate to state taxes, permanent differences and tax credits. Due to the effects of changes in our valuation allowance on our deferred tax balance, tax credits and changes in our unrecognized tax benefits, our effective tax rates in fiscal 2021, 2020, and 2019 are not meaningful metrics, as our income tax amounts were not directly correlated to the amount of our pretax income (loss) for those periods. Deferred income taxes refl ect the net tax effects of temporary differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Deferred tax assets: Federal and state net operating loss carryforwards $ 177,611 $ 192,981 Inventory adjustments 25,174 34,971 Incentive compensation 13,793 13,116 Intangible assets 6,016 13,993 Warranty and other reserves 6,006 5,503 Property, equipment and other assets 2,085 2,197 Uncertain tax positions 705 723 Other 2,435 844 Total deferred tax assets 233,825 264,328 Valuation allowance (29,059) (39,185) Deferred tax assets, net $ 204,766 $ 225,143 As of September 30, 2021, our gross deferred tax assets above included $100.3 million for federal net operating loss carryforwards, $45.7 million for federal tax credits, and $34.9 million for state net operating loss carryforwards. The majority of our federal net operating loss carryforwards expire at various dates through our fiscal 2033, and the federal tax credits and majority of our state net operating losses expire at various dates through our fiscal 2041. As of September 30, 2021, valuation allowance of $29.1 million remains on various state attributes for which the Company has concluded it is not more likely than not that these attributes would be realized at that time. We experienced an “ownership change” as defined in Section 382 of the Internal Revenue Code (Section 382) as of January 12, 2010. Section 382 contains rules that limit the ability of a company that undergoes an “ownership change” to utilize its net operating loss carryforwards, tax credits and certain built-in losses or deductions recognized during the five-year period after the ownership change to offset future taxable income. Because the five-year period has expired, we have determined the actual impact and final classification of those amounts, which are properly reflected in the amounts presented above. There can be no assurance that another ownership change, as defined in the tax law, will not occur. If another “ownership change” occurs, a new annual limitation on the utilization of net operating loss carryforwards, tax credits and built-in losses would be determined as of that date. This limitation, should one be required in the future, is subject to assumptions and estimates that could differ from actual results. Valuation Allowance A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, we assess the need to establish valuation allowances for deferred tax assets periodically based on the more-likely-than-not realization threshold criterion. In our assessment, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, the Company's experience with operating loss carryforwards and tax credit carryforwards not expiring unused, the Section 382 limitation on our ability to carryforward pre-ownership change net operating losses, recognized built-in losses or deductions and tax planning alternatives. Our assessment, while rooted in actual Company performance, are highly subjective and rely on certain estimates, including forecasts, which could differ materially from actual results. In fiscal 2021, our conclusions about our ability to more likely than not realize all of our federal and certain state tax attributes remain consistent with our prior determinations. We considered positive factors including significant increases in our current earnings, interest savings from our debt reduction strategies, housing demand and price appreciation, and our backlog. The negative factors included the overall health of the broader economy, labor shortages and unemployment levels, as well as potential increases in mortgage interest rates. As of September 30, 2021, the Company will have to cumulatively generate approximately $927.4 million in pre-tax income over the course of its carryforward period to realize its deferred tax assets prior to their expiration, which, as previously discussed, is the Company's fiscal 2041. Unrecognized Tax Benefits A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Balance at beginning of year $ 3,441 $ 3,473 $ 3,494 Additions for tax positions related to current year — — — Additions for tax positions related to prior years — — — Reductions in tax positions of prior years — — — Lapse of statute of limitations (83) (32) (21) Balance at end of year $ 3,358 $ 3,441 $ 3,473 If we were to recognize our $3.4 million of gross unrecognized tax benefits remaining as of September 30, 2021, substantially all would impact our effective tax rate. Additionally, we had no accrued interest and penalties as of September 30, 2021 and September 30, 2020. If applicable, we would record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. In the normal course of business, we are subject to audits by federal and state tax authorities regarding various tax liabilities. The statute of limitations for our major tax jurisdictions remains open for examination for fiscal year 2007 and subsequent years. As of September 30, 2021, we do not expect that any of our uncertain tax positions will reverse within the next twelve months. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock The Company currently has no shares of preferred stock outstanding. Common Stock As of September 30, 2021, the Company had 63,000,000 shares of common stock authorized and 31,294,198 shares both issued and outstanding. Common Stock Repurchases During the first quarter of fiscal 2019, the Company's Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. As part of this program, the Company has repurchased common stock during fiscal 2019 and 2020 through open market transactions, 10b5-1 plans, and accelerated share repurchase (ASR) agreements. All shares have been retired upon repurchase. The aggregate reduction to stockholders’ equity related to share repurchases during the fiscal year ended September 30, 2020 and September 30, 2019 was $3.3 million and $34.6 million, respectively. No share repurchases were made during fiscal 2021. As of September 30, 2021, the remaining availability of the share repurchase program was $12.0 million . Dividends The indentures under which our Senior Notes were issued contain certain restrictive covenants, including limitations on our payment of dividends. There were no dividends paid during our fiscal 2021, 2020, or 2019. Section 382 Rights Agreement Prior to fiscal 2019, the Company’s stockholders had approved amendments to the Company’s Certificate of Incorporation (the Pr otective Amendment) designed to preserve the value of certain tax assets associated with net operating loss carryforwards under Section 382. In February 2019, the Company’s stockholders approved an extension of the term of the Protective Amendment and approved a Section 382 Rights A |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plan | 12 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement and Deferred Compensation Plan | Retirement and Deferred Compensation Plans 401(k) Retirement Plan The Company sponsors a defined-contribution plan that is a tax-qualified retirement plan under section 401(k) of the Internal Revenue Code (the Plan). Substantially all employees are eligible for participation in the Plan. Participants may defer and contribute from 1% to 80% of their salary to the Plan, with certain limitations on highly compensated individuals. The Company matches 50% of the first 6% of the participant's contributions. The participant's contributions vest immediately, while the Company's contributions vest over five years. The total Company contributions for the fiscal years ended September 30, 2021, 2020, and 2019 were approximately $3.2 million, $3.4 million, and $3.6 million, respectively. During fiscal 2021, 2020, and 2019, participants forfeited $0.8 million, $1.0 million, and $0.7 million, respectively, of unvested matching contributions. Deferred Compensation Plan The Beazer Homes USA, Inc. Deferred Compensation Plan (the DCP) is a non-qualified deferred compensation plan for a select group of executives and highly compensated employees. The DCP allows the executives to defer current compensation on a pre-tax basis to a future year, until termination of employment. The objectives of the DCP are to assist executives with financial planning and capital accumulation and to provide the Company with a method of attracting, rewarding and retaining executives. Participation in the DCP is voluntary. Beazer Homes may voluntarily make a contribution to the participants' DCP accounts. Deferred compensation assets of $2.7 million and $2.3 million as of September 30, 2021 and 2020, respectively, are included in other assets on our consolidated balance sheets and are recorded at fair value. Deferred compensation liabilities of $7.2 million and $5.6 million as of September 30, 2021 and 2020, respectively, are included in other liabilities on our consolidated balance sheets. For the years ended September 30, 2021, 2020 and 2019, the Company contributed approximately $0.2 million, $0.2 million, and $0.2 million, respectively, to the DCP in the form of voluntary contributions. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has shares available for grant under the Amended and Restated 2014 Beazer Homes USA, Inc. Long-Term Incentive Plan (the 2014 Plan). We issue new shares upon the exercise of stock options and the vesting of restricted stock awards. In cases of forfeitures and cancellations, those shares are returned to the share pool for future issuance. As of September 30, 2021, we had 2.1 million shares of common stock for issuance under our various equity incentive plans, of which 1.9 million shares are availabl e for future grants. Stock-based compensation expense is included in general and administrative expenses in our consolidated statements of operations. The following table summarizes stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2021, 2020, and 2019, respectively. Fiscal Year Ended September 30, in thousands 2021 2020 2019 Stock options expense $ 25 $ 133 $ 178 Restricted stock awards expense 12,142 9,903 10,348 Stock-based compensation expense $ 12,167 $ 10,036 $ 10,526 Stock Options Stock options have an exercise price equal to the fair market value of the common stock on the grant date, generally vest two The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model (Black-Scholes Model). As of September 30, 2021, the intrinsic value of our stock options outstanding and vested and exercisable wer e $0.1 million and $0.1 million , respectively. As of both September 30, 2021 and September 30, 2020, there wa s less than $0.1 million of total unrecognized compensation cost related to unv ested stock options. The cost remaining as of September 30, 2021 is expected to be recognized over a weighted-average period of 0.4 years. During fiscal 2018, the Compensation Committee of our Board of Directors approved the Employee Stock Option Program (ESOP). This program is available to all full-time employees and is designed to enable employees to share in potential price appreciation of the Company's stock. The ESOP matches stock purchases made by eligible employees meeting certain conditions with an option to purchase an additional share of the Company's shares on a one-to-one basis. The exercise price of the options granted is equal to the closing price of the Company's stock on the day the underlying shares are purchased by the employee, which is also the ESOP grant date. The options will vest on the second anniversary of the date of grant but are forfeited if (1) the eligible employee no longer works for the Company or (2) the underlying shares are sold before the two-year vesting period is over. The total number of options available under the ESOP is limited to 100,000, of which 31,732 options were granted through the end of fiscal 2021. During the year ended September 30, 2021, we issued no s tock options. We used the following valuation assumptions for stock options granted for the following prior periods presented: Fiscal Year Ended September 30, 2020 2019 Expected life of options 5.7 years 5.0 years Expected volatility 51.52 % 46.69 % Expected dividends — — Weighted-average risk-free interest rate 0.43 % 2.70 % Weighted-average fair value $ 4.99 $ 4.50 We relied upon a combination of the observed exercise behavior of our prior grants with similar characteristics, the vesting schedule of the current grants, and an index of peer companies with similar grant characteristics to determine the expected life of the options granted. We considered historic returns of our stock and the implied volatility of our publicly-traded options in determining expected volatility. We assumed no dividends would be paid since our Board of Directors has suspended payment of dividends indefinitely and payment of dividends is restricted under our Senior Note covenants. The ri sk-free interest rate is based on the term structure of interest rates at the time of the option grant. A summary of stock option activity for the periods presented is as follows: 2021 2020 2019 Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at beginning of period 392,465 $ 15.47 523,754 $ 14.34 533,052 $ 14.26 Granted — — 950 10.67 30,782 10.23 Exercised (278,206) 14.48 (128,921) 11.01 (31,450) 10.00 Forfeited — — (3,318) 9.55 (8,630) 10.45 Outstanding at end of period 114,259 $ 17.89 392,465 $ 15.47 523,754 $ 14.34 Exercisable at end of period 113,309 $ 17.95 354,796 $ 15.90 470,501 $ 14.42 The following table summarizes information about stock options outstanding and exercisable as of September 30, 2021: Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding Weighted-Average Contractual Remaining Life (Years) Weighted-Average Exercise Price Number Exercisable Weighted-Average Contractual Remaining Life (Years) Weighted-Average Exercise Price $1 - $10 15,436 4.6 $ 9.17 14,536 4.5 $ 9.09 $11 - $15 315 3.5 11.61 265 2.9 11.36 $16 -$20 98,508 0.6 19.28 98,508 0.6 19.28 $1 - $20 114,259 1.2 $ 17.89 113,309 1.1 $ 17.95 Information pertaining to the intrinsic value of options exercised and the fair market value of options that vested is below: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Intrinsic value of options exercised $ 1,402 $ 587 $ 90 Fair market value of options vested 173 144 178 Restricted Stock Awards The fair value of each restricted stock award with market conditions is estimated on the date of grant using the Monte Carlo valuation method. The fair value of restricted stock awards without market conditions is based on the market price of the Company's common stock on the date of grant. If applicable, the cash-settled component of any awards granted to employees is accounted for as a liability, which is adjusted to fair value each reporting period until vested. Compensation cost arising from restricted stock awards granted to employees is recognized as an expense using the straight-line method over the vesting period. As of September 30, 2021 and September 30, 2020, there was $7.2 million and $9.0 million, respectively, of total unrecognized compensation cost related to unvested restricted stock awards. The cost remaining as of September 30, 2021 is expected to be recognized over a weighted-average period of 1.4 years. During fiscal 2021, we issued time-based restricted stock awards and performance-based restricted stock awards with a payout subject to certain performance and market conditions. Each award type is discussed below. Performance-Based Restricted Stock Awards During the yea r ended September 30, 2021, we i ss ued 103,366 shares of performance-based restricted stock (2021 Performance Shares) to our executive officers and certain other employees that also have market conditions. The 2021 Performance Shares are structured to be awarded based on the Company's performance under three pre-determined financial and operational metrics at the end of the three-year performance period. After determining the number of shares earned based on the financial and operational metrics, which can range from 0% to 175% of the targeted number of shares, the award will be subject to further upward or downward adjustment by as much as 20% based on the Company's relative total shareholder return (TSR) compared against the S&P Homebuilders Select Industry Index during the three-year performance period. The 2021 Performance Shares were val ued using the Monte Carlo valuation model due to the existence of the TSR market condition and had an estimated fair value of $15.24 pe r share on the date of grant. A Monte Carlo valuation model requires the following inputs: (1) the expected dividend yield on the underlying stock; (2) the expected price volatility of the underlying stock; (3) the risk-free interest rate for the period corresponding with the expected term of the award; and (4) the fair value of the underlying stock. For the Company and each member of the peer group, the following inputs were used, as applicable, in the Monte Carlo valuation model to determine the fair value as of the grant date for performance-based restricted stock granted in each of the fiscal years ended. The methodology used to determine these assumptions is similar to the Black-Scholes Model; however, the expected term is determined by the model in the Monte Carlo simulation. Fiscal Year Ended September 30, 2021 2020 2019 Expected volatility 26.1% - 67.0% 21.2% - 54.8% 21.0% - 57.1% Risk-free interest rate 0.23 % 1.61 % 2.92 % Dividend yield — — — Grant-date stock price $ 14.07 $ 15.62 $ 9.82 Each of our performance share represents a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2019, we cash settled 135,337 shares earned above target level based on the performance level achieved under our 2017 performance-based award plan. The cash payment totaled $2.1 million, which was reflected as a reduction to paid-in capital in the accompanying condensed consolidated statements of stockholders' equity. We have not cash settled any such performance-based awards prior to or subsequent to the November 2019 transaction, and we have no current plans to cash settle any additional performance-based restricted shares in the future. The performance criteria of the 2019 Performance Share grant were satisfied as of September 30, 2021. Based on the actual performance level achieved, 552,417 performance-based restricted stock awards from the 2019 Performance Share grant cliff vested at the end of the three-year vesting period on November 15, 2021. Of the total $6.8 million compensation cost related to these awards, we have recognized $4.1 million, $1.3 million, and $1.1 million during the fiscal years ended September 30, 2021, 2020, and 2019, respectively. The remaining $0.3 million of unrecognized compensation cost will be recognized in the first quarter of fiscal 2022. Time-Based Restricted Stock Awards During the year ended September 30, 2021, we also issued 251,788 shares of t ime-based restricted stock (Restricted Shares) to our directors, executive officers, and certain other employees. Restricted Shares are valued based on the market price of the Company's common stock on the date of the grant. The Restricted Shares granted to our non-employee directors vest on the first anniversary of the grant, while the Restricted Shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant. Activity relating to all restricted stock awards for the periods presented is as follows: Year Ended September 30, 2021 Performance-Based (a) Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 796,024 $ 14.71 610,130 $ 13.85 1,406,154 $ 14.34 Granted 164,296 17.90 251,788 14.21 416,084 15.67 Vested (222,165) 22.40 (346,856) 14.36 (569,021) 17.50 Forfeited — — (28,488) 11.77 (28,488) 11.77 End of period 738,155 $ 13.45 486,574 $ 13.79 1,224,729 $ 13.59 (a) Grant and vesting activity during the year ended September 30, 2021 include 60,930 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period. Year Ended September 30, 2020 Performance-Based Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 778,814 $ 13.60 611,607 $ 12.11 1,390,421 $ 16.53 Granted 260,131 16.98 327,571 15.29 587,702 16.04 Vested (242,921) 13.60 (302,255) 11.89 (545,176) 12.65 Forfeited — — (26,793) 13.79 (26,793) 13.79 End of period 796,024 $ 14.71 610,130 $ 13.85 1,406,154 $ 14.34 Year Ended September 30, 2019 Performance-Based (a) Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 644,785 $ 16.47 431,783 $ 16.60 1,076,568 $ 16.53 Granted 467,819 9.95 448,657 9.82 916,476 9.89 Vested (321,833) 15.36 (212,558) 16.41 (534,391) 15.78 Forfeited (11,957) 13.44 (56,275) 12.20 (68,232) 12.42 End of period 778,814 $ 13.60 611,607 $ 12.11 1,390,421 $ 16.53 (a) Grant and vesting activity during the year ended September 30, 2019 include 86,050 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2021 | |
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: Fiscal Year Ended September 30, in thousands (except per share data) 2021 2020 2019 Numerator: Income (loss) from continuing operations $ 122,180 $ 53,316 $ (79,421) Loss from discontinued operations, net of tax (159) (1,090) (99) Net income (loss) $ 122,021 $ 52,226 $ (79,520) Denominator: Basic weighted-average shares 29,954 29,704 30,617 Dilutive effect of restricted stock awards 461 229 — Dilutive effect of stock options 22 15 — Diluted weighted-average shares (a) 30,437 29,948 30,617 Basic income (loss) per share: Continuing operations $ 4.08 $ 1.80 $ (2.59) Discontinued operations (0.01) (0.04) (0.01) Total $ 4.07 $ 1.76 $ (2.60) Diluted income (loss) per share: Continuing operations $ 4.01 $ 1.78 $ (2.59) Discontinued operations — (0.04) (0.01) Total $ 4.01 $ 1.74 $ (2.60) (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 losses for the year ended September 30, 2019, all common stock equivalents were excluded from the computation of diluted loss per share for fiscal year 2019 because inclusion would have resulted in anti-dilution. Fiscal Year Ended September 30, in thousands 2021 2020 2019 Stock options 142 375 524 Time-based restricted stock — 46 612 Performance-based restricted stock — — 779 |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2021 | |
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. The following tables contain our revenue, operating income (loss), and depreciation and amortization by segment for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Revenue West $ 1,118,578 $ 1,183,339 $ 1,014,702 East 569,835 477,624 514,961 Southeast 451,890 466,114 558,076 Total revenue $ 2,140,303 $ 2,127,077 $ 2,087,739 Fiscal Year Ended September 30, in thousands 2021 2020 2019 Operating income (loss) (a) West $ 181,303 $ 161,786 $ (5,492) East 84,630 56,319 51,576 Southeast 57,581 40,746 40,165 Segment total 323,514 258,851 86,249 Corporate and unallocated (b) (176,645) (179,744) (176,145) Total operating income (loss) $ 146,869 $ 79,107 $ (89,896) (a) Operating income (loss) is impacted by impairment and abandonment charges incurred during the periods presented (see Not e 5 for further information). For the year ended September 30, 2021, September 30, 2020, and September 30, 2019, we recognized $0.9 million , $1.7 million and $131.7 million of inventory impairment and abandonment charges, respectively, at our three reportable segments. (b) Corporate and unallocated operating loss includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. For the year ended September 30, 2021, there were no impairments of capitalized interest and capitalized indirect costs. For the year ended September 30, 2020, and September 30, 2019, we wrote off $1.2 million, and $16.9 million of capitalized interest and capitalized indirect costs, respectively (see Note 5 for further information). Fiscal Year Ended September 30, in thousands 2021 2020 2019 Depreciation and amortization West $ 7,250 $ 8,227 $ 6,456 East 2,207 2,458 3,250 Southeast 2,552 2,857 3,455 Segment total 12,009 13,542 13,161 Corporate and unallocated (a) 1,967 2,098 1,598 Total depreciation and amortization $ 13,976 $ 15,640 $ 14,759 (a) 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: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Capital expenditures West $ 6,924 $ 5,063 $ 11,635 East 1,549 2,237 2,518 Southeast 1,447 2,985 3,086 Corporate and unallocated 4,725 357 4,117 Total capital expenditures $ 14,645 $ 10,642 $ 21,356 The following table presents assets by segment as of September 30, 2021 and 2020: in thousands September 30, 2021 September 30, 2020 Assets West $ 819,317 $ 658,909 East 286,133 267,050 Southeast 296,581 301,827 Corporate and unallocated (a) 676,779 779,694 Total assets $ 2,078,810 $ 2,007,480 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2021 | |
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. We have classified the results of operations of our discontinued operations separately in the accompanying consolidated statements of operations for all periods presented. There were no material assets or liabilities related to our discontinued operations as of September 30, 2021 or September 30, 2020. Discontinued operations were not segregated in the consolidated statements of cash flows. Therefore, amounts for certain captions in the consolidated statements of cash flows will not agree with the respective data in the consolidated statements of operations. The results of our discontinued operations in the consolidated statements of operations for the periods presented were as follows: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Total revenue $ — $ — $ 55 Home construction and land sales expenses (a) 119 1,245 61 Gross loss (119) (1,245) (6) General and administrative expenses 85 173 125 Operating loss (204) (1,418) (131) Equity in loss of unconsolidated entities — — (1) Other income, net — 19 5 Loss from discontinued operations before income taxes (204) (1,399) (127) Benefit from income taxes (45) (309) (28) Loss from discontinued operations, net of tax $ (159) $ (1,090) $ (99) (a) Hom e construction and land sales expenses for the year ended September 30, 2020 include a $1.3 million estimated litigation settlement accrual relating to a case regarding past construction defects in our discontinued operations. Pursuant to the settlement agreement, the Company paid $1.4 million during fiscal 2021. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited)Quarterly financial data is no longer required as the Company has adopted the changes to Item 302 of Regulation S-K contained in SEC Release No. 33-10890. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United St ates of America (GAAP), and present the consolidated financial position, income, stockholders' equity, and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income (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 consolidated statements of operations for all periods presented (see Note 19 for a further discussion of our discontinued operations). Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. Our fiscal year 2020 began on October 1, 2019 and ended on September 30, 2020. Our fiscal year 2019 began on October 1, 2018 and ended on September 30, 2019. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted CashWe consider highly liquid investments with maturities of three months or less when acquired to be cash equivalents. As of September 30, 2021, the majority of our cash and cash equivalents were on demand deposits with major banks. These assets were valued at par and had no withdrawal restrictions. Restricted cash includes cash restricted by state law or a contractual requirement, including cash collateral for our outstanding cash-secured letters of credit (refer to Note 8). |
Accounts Receivables and Allowance | Accounts Receivable and Allowance Accounts receivable include escrow deposits to be received from title companies associated with closed homes, receivables from municipalities related to the development of utilities or other infrastructure, land banker reimbursements to be received related to land development costs, rebates to be received from our suppliers and other miscellaneous receivables. Generally, we receive cash from title companies within a few days of the home being closed. We regularly review our receivable balances for collectability and record an allowance against any receivable for which collectability is deemed to be uncertain. |
Owned Inventory | Owned InventoryOwned inventory includes land acquisition costs, land development costs, home construction costs, capitalized interest, real estate taxes, direct overhead costs and capitalized indirect costs incurred during land development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and other common costs (both incurred and estimated to be incurred) are allocated to individual lots on a pro-rata basis, and the cost of individual lots is transferred to homes under construction when home construction begins. Changes in estimated land and other common costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. Home construction costs are accumulated on a per-home basis. Cost of home closings includes the specific construction costs of the home and the allocated lot costs. |
Inventory Valuation - Projects in Progress | Inventory Valuation - Projects in Progress Projects in progress inventory includes homes under construction and land under development grouped together as communities. Generally, upon the commencement of land development activities, it may take three We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. We evaluate, among other things, the average sales price and margins on recent home closings, homes in backlog and expected future home sales for each community. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. This undiscounted cash flow analysis requires important assumptions including, among other things, the current and future home sale prices, margins and the pace of closings to occur into the future. For those communities whose carrying values exceed the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. The fair value of the community is estimated using the present value of the estimated future cash flows using discount rates commensurate with the risk associated with the underlying community. Should the estimates or expectations used in determining estimated fair values deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to these assets, and such amounts could be material. |
Inventory Valuation - Land Held for Future Development and Sale | Inventory Valuation - Land Held for Future Development Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for future development is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, such as the future enactment of a development plan or the occurrence of outside events. We evaluate the potential plans for each community in land held for future development if changes in facts and circumstances occur that would give rise to a more detailed analysis for a change in the status of a community. Inventory Valuation - Land Held for Sale Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets. We record land held for sale at the lower of the asset's carrying value or fair value less costs to sell (net realizable value). Land is classified as held for sale when the following criteria are met: • management has the authority and commits to a plan to sell the land; • the land is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of land assets; • there is an active program to locate a buyer and the plan to sell the property has been initiated; • the sale of the land is probable within one year; • the property is being actively marketed at a reasonable sale price relative to its current fair value; and • it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We evaluate the net realizable value of a land held for sale asset when indicators of impairment are present. In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals, any recent legitimate offers and listing prices of similar properties. If the current carrying value of the asset exceeds the estimated fair value less cost to sell, the asset is impaired and written down to its estimated fair value less cost to sell. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our analysis. Our assumptions about land sales prices require significant judgment because the market is highly sensitive to changes in economic conditions. We calculate the estimated fair values of land held for sale based on current market conditions |
Lot Option Agreements and Variable Interest Entities (VEI) | Lot Option Agreements and Variable Interest Entities (VIE) In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit 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 at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option 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 September 30, 2021 and September 30, 2020: in thousands Deposits & Remaining As of September 30, 2021 Unconsolidated lot option agreements $ 114,688 $ 676,149 As of September 30, 2020 Unconsolidated lot option agreements $ 75,921 $ 395,133 In accordance with Accounting Standards Codification (ASC) Topic 810, Consolidation (ASC 810), if the entity holding the land under option is a variable VIE, the Company's deposit represents a variable interest in that entity. ASC 810 requires a company consolidate a VIE if the company is determined to be the primary beneficiary. To determine whether we are the primary beneficiary of the VIE, we first evaluate whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to, (1) the ability to determine the budget and scope of land development work, if any; (2) the ability to control financing decisions for the VIE; (3) the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with Beazer; and (4) the ability to change or amend the existing option contract with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE and thus do not consolidate the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE's losses or, if no party absorbs the majority of such losses, if we will benefit from potentially a significant amount of the VIE's expected gains. |
Investments in Unconsolidated Entities | Investments in Unconsolidated EntitiesWe participate in a number of joint ventures and other investments in which we have less than a controlling interest. We enter into the majority of these investments with land developers, other homebuilders and financial partners to acquire attractive land positions, to manage our risk profile and to leverage our capital base. The land positions are developed into finished lots for sale to the unconsolidated entity's members or other third parties. We recognize our share of equity in income (loss) and profits (losses) from the sale of lots to other buyers. Our share of profits from lots we purchase from the unconsolidated entities is deferred and treated as a reduction of the cost of the land purchased from the unconsolidated entity. Such profits are subsequently recognized at the time the home closes and title passes to the homebuyer. We evaluate our investments in unconsolidated entities for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of our investment in the unconsolidated entity has occurred that is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value, which is determined primarily using a discounted cash flow model. Our unconsolidated entities typically obtain secured acquisition, development and construction financing. We account for our interest in unconsolidated entities under the equity method. |
Property and Equipment, Net | Property and Equipment, Net Our property and equipment is recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis based on estimated useful lives as follows: Asset Class Useful Lives Buildings 25 - 30 years Information systems Lesser of estimated useful life of the asset or 5 years Furniture, fixtures and computer and office equipment 3 - 7 years Model and sales office improvements Lesser of estimated useful life of the asset or estimated life of the community Leasehold improvements Lesser of the lease term or the estimated useful life of the asset |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets from the businesses that we acq uire. The Company's entire goodwill balance is recorded in our Southeast reportable segment. The Company evaluates goodwill for impairment at the reporting unit level annually during the fourth quarter or more often if indicators of impairment exist. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of the reporting unit is less than the carrying value, then a quantitative assessment is performed. The fair value of the reporting unit is estimated using a combination of the income approach, utilizing the discounted cash flow method, and the market approach, utilizing readily available market valuation multiples. If the estimated fair value of the reporting unit is less than its carrying value, an impairment will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Determining the fair value of a reporting unit under the quantitative goodwill impairment assessment requires the Company to make estimates and assumptions regarding future operating results, cash flows (including timing), discount rates, expected growth rates, capital expenditures and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of the factors used in assessing fair value are outside the control of management, and these assumptions and estimates may change in future periods. |
Other Assets | Other Assets Our other assets principally include prepaid expenses, unamortized debt issuance costs on our Secured Revolving Credit Facility, and assets related to our deferred compensation plan (refer to Note 15 for a discussion of our deferred compensation plan). |
Other Liabilities | Other LiabilitiesOur other liabilities principally include accrued compensations and benefits, accrued interest on our outstanding borrowings, customer deposits, accrued warranty expense, litigation accruals, income tax liabilities and other accruals related to our operations. Refer to Note 12 for a detail of our other liabilities. |
Income Taxes | Income TaxesOur provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities result from deductible or taxable amounts in future years when such assets and liabilities are recovered or settled, and are measured using the enacted tax rates and laws that are expected to be in effect when the assets and liabilities are recovered or settled. We include any estimated interest and penalties on tax related matters in income taxes payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. We record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. |
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 i n ASC Topic 606, Revenue from Contracts with Customers . • 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: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Homebuilding revenue $ 2,127,700 $ 2,116,910 $ 2,077,245 Land sales and other revenue 12,603 10,167 10,494 Total revenue (a) $ 2,140,303 $ 2,127,077 $ 2,087,739 (a) Please see Note 18 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $28.5 million and $18.9 million as of September 30, 2021 and September 30, 2020, respectively. Of the customer liabilities outstanding as of September 30, 2020, $18.1 million was recognized in revenue during the year ended September 30, 2021, upon closing of the related homes, and $0.8 million was refunded to or forfeited by the buyer. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Home Construction Expenses Home construction expenses includes the specific construction costs of the home and the allocated lot costs (land acquisition, land development and other common costs are allocated to individual lots on a pro-rata basis based on the number of lots remaining to close). All home closing costs are charged to home construction expenses in the period when the revenues from home closing are recognized. Sales discounts and incentives include cash discounts, discounts on home building options, option upgrades and seller-paid financing or closing costs. Cash discounts are accounted for as a reduction in the sale price of the home, thereby decreasing the amount of revenue we recognize on that closing. All sales incentives other than cash discounts are recognized as a cost of selling the home and are included in home construction expenses. Estimated future warranty costs are charged to home construction expense in the period when the revenues from home closings are recognized. Such estimated warranty costs generally range from 0.3% to 1.0% of total revenue recognized for each home closed. Additional warranty costs are charged to home construction expenses as necessary based on management's estimate of the costs to remediate existing claims. See Note 9 for a more detailed discussion of warranty costs and related reserves. |
Fair Value Measurements | Fair Value Measurements Certain of our assets are required to be recorded at fair value on a recurring basis, for example, the fair value of our deferred compensation plan assets are based on market-corroborated inputs (level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recovered (level 3). For example, we review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value is based on estimated cash flows discounted for market risks associated with the long-lived assets. The fair value of certain of our financial instruments approximates their carrying amounts due to the short maturity of these assets and liabilities or the variable interest rates on such obligations. The fair value of our publicly-held debt is generally estimated based on quoted bid prices for these instruments (level 2). Certain of our other financial liabilities are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. See Note 10 for additional discussion of our fair value measurements. |
Stock-Based Compensation | Stock-Based Compensation We use the Black-Scholes option-pricing model to value our stock option grants. Restricted stock awards with market conditions are valued using the Monte Carlo valuation method. Other restricted stock awards without market conditions are valued based on the market price of the Company's common stock on the date of the grant. In addition, we reflect the benefits of tax deductions in excess of recognized compensation cost as an operating cash outflow. Compensation cost arising from all stock-based compensation awards is recognized as expense using the straight-line method over the vesting period and is included in G&A in our consolidated statements of operations. See Note 16 for additiona |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the effect of adopting the new guidance on its consolidated financial statements and related disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of interests in lot option agreements | The following table provides a summary of our interests in lot option agreements as of September 30, 2021 and September 30, 2020: in thousands Deposits & Remaining As of September 30, 2021 Unconsolidated lot option agreements $ 114,688 $ 676,149 As of September 30, 2020 Unconsolidated lot option agreements $ 75,921 $ 395,133 |
Schedule of estimated useful lives | Depreciation is computed on a straight-line basis based on estimated useful lives as follows: Asset Class Useful Lives Buildings 25 - 30 years Information systems Lesser of estimated useful life of the asset or 5 years Furniture, fixtures and computer and office equipment 3 - 7 years Model and sales office improvements Lesser of estimated useful life of the asset or estimated life of the community Leasehold improvements Lesser of the lease term or the estimated useful life of the asset The following table presents our property and equipment as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Model furnishings and sales office improvements $ 19,617 $ 17,604 Information systems 18,628 14,930 Furniture, fixtures and office equipment 10,613 10,287 Leasehold improvements 4,279 4,959 Buildings and improvements 1,671 1,671 Property and equipment, gross 54,808 49,451 Less: Accumulated depreciation (31,923) (27,171) Property and equipment, net $ 22,885 $ 22,280 |
Schedule of revenue recognition | The following table presents our total revenue disaggregated by revenue stream: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Homebuilding revenue $ 2,127,700 $ 2,116,910 $ 2,077,245 Land sales and other revenue 12,603 10,167 10,494 Total revenue (a) $ 2,140,303 $ 2,127,077 $ 2,087,739 (a) Please see Note 18 for total revenue disaggregated by reportable segment. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosure of non-cash activity | The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Supplemental disclosure of non-cash activity: Beginning operating lease right-of-use assets (ASC 842 adoption) (a) $ — $ 13,895 $ — Beginning operating lease liabilities (ASC 842 adoption) (a) — 16,028 — Increase in operating lease right-of-use assets (b) $ 2,905 3,104 — Increase in operating lease liabilities (b) 2,905 3,104 — Supplemental disclosure of cash activity: Interest payments $ 74,171 $ 71,888 $ 101,109 Income tax payments 3,462 546 766 Tax refunds received 1,078 315 12 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 246,715 $ 327,693 $ 106,741 Restricted cash 27,428 14,835 16,053 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 274,143 $ 342,528 $ 122,794 (a) On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC Topic 842, Leases (ASC 842). Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets. (b) Represents additional leases that commenced during the year ended September 30, 2021 and September 30, 2020 . |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in unconsolidated joint ventures, total equity and outstanding borrowings | The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Investment in unconsolidated entities $ 4,464 $ 4,003 Total equity of unconsolidated entities 7,316 7,079 Total outstanding borrowings of unconsolidated entities 12,708 8,807 Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Equity in income of unconsolidated entities $ 594 $ 347 $ 404 |
Owned Inventory (Tables)
Owned Inventory (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of inventory | The components of our owned inventory are as follows as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Homes under construction $ 648,283 $ 525,021 Land under development 648,404 589,763 Land held for future development 19,879 28,531 Land held for sale 9,179 12,622 Capitalized interest 106,985 119,659 Model homes 68,872 75,142 Total owned inventory $ 1,501,602 $ 1,350,738 |
Schedule of total inventory by segment | Total owned inventory by reportable segment is presented in the table below as of September 30, 2021 and September 30, 2020: in thousands Projects in Progress (a) Land Held for Future Land Held Total Owned September 30, 2021 West $ 781,036 $ 3,483 $ 4,478 $ 788,997 East 264,991 10,888 584 276,463 Southeast 269,738 5,508 4,117 279,363 Corporate and unallocated (b) 156,779 — — 156,779 Total $ 1,472,544 $ 19,879 $ 9,179 $ 1,501,602 September 30, 2020 West $ 627,986 $ 3,483 $ 4,516 $ 635,985 East 241,799 14,077 3,702 259,578 Southeast 266,905 10,971 4,404 282,280 Corporate and unallocated (b) 172,895 — — 172,895 Total $ 1,309,585 $ 28,531 $ 12,622 $ 1,350,738 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. |
Schedule of inventory impairments and lot option abandonment charges | The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Projects in Progress: West $ — $ — $ 92,912 Southeast — — 858 Corporate and unallocated (a) — — 16,260 Total impairment charges on projects in progress $ — $ — $ 110,030 Land Held for Sale: West $ — $ 89 $ 37,963 Southeast — 8 — Corporate and unallocated (a) — 1,160 625 Total impairment charges on land held for sale $ — $ 1,257 $ 38,588 Abandonments: West $ — $ 923 $ — East 465 82 — Southeast 388 641 — Total abandonment charges $ 853 $ 1,646 $ — Total impairment and abandonment charges $ 853 $ 2,903 $ 148,618 (a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. |
Schedule of Discounted Cash Flow Analysis | The table below presents, by reportable segment, details of the impairment charges taken on projects in progress for fiscal 2019: Results of Discounted Cash Flow Analyses Prepared $ in thousands # of # of Lots Impairment Estimated Fair Year Ended September 30, 2019 West 9 839 $ 92,912 $ 69,449 Southeast 1 15 858 1,367 Corporate and unallocated (a) — — 16,260 14,166 Total 10 854 $ 110,030 $ 84,982 (a) Amount represents the capitalized interest and indirect cost that were impaired. Capitalized interest and indirect costs are maintained within our Corporate and unallocated segment. |
Quantitative unobservable inputs for inventory impairment | The table below presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities impaired during fiscal 2019: Unobservable Inputs Average selling price (in thousands) $350 - $615 Closings per community per month 1 - 4 Discount rate 14.7% - 16.8% |
Interest (Tables)
Interest (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Real Estate Inventory Capitalized Interest Costs [Abstract] | |
Schedule of capitalized interest costs | The following table presents certain information regarding interest for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Capitalized interest in inventory, beginning of period $ 119,659 $ 136,565 $ 144,645 Interest incurred 77,397 87,224 103,970 Capitalized interest impaired — (792) (13,907) Interest expense not qualified for capitalization and included as other expense (a) (2,781) (8,468) (3,109) Capitalized interest amortized to home construction and land sales expenses (b) (87,290) (94,870) (95,034) Capitalized interest in inventory, end of period $ 106,985 $ 119,659 $ 136,565 (a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Depreciation is computed on a straight-line basis based on estimated useful lives as follows: Asset Class Useful Lives Buildings 25 - 30 years Information systems Lesser of estimated useful life of the asset or 5 years Furniture, fixtures and computer and office equipment 3 - 7 years Model and sales office improvements Lesser of estimated useful life of the asset or estimated life of the community Leasehold improvements Lesser of the lease term or the estimated useful life of the asset The following table presents our property and equipment as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Model furnishings and sales office improvements $ 19,617 $ 17,604 Information systems 18,628 14,930 Furniture, fixtures and office equipment 10,613 10,287 Leasehold improvements 4,279 4,959 Buildings and improvements 1,671 1,671 Property and equipment, gross 54,808 49,451 Less: Accumulated depreciation (31,923) (27,171) Property and equipment, net $ 22,885 $ 22,280 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2021 and September 30, 2020: in thousands Maturity Date September 30, 2021 September 30, 2020 Senior Unsecured Term Loan September 2022 $ 50,000 $ 100,000 6 3/4% Senior Notes (2025 Notes) March 2025 229,555 229,555 5 7/8% Senior Notes (2027 Notes) October 2027 363,255 394,000 7 1/4% Senior Notes (2029 Notes) October 2029 350,000 350,000 Unamortized debt issuance costs (8,983) (10,891) Total Senior Notes, net 983,827 1,062,664 Junior Subordinated Notes (net of unamortized accretion of $30,570 and $32,636, respectively) July 2036 70,203 68,137 Revolving Credit Facility February 2024 — — Total debt, net $ 1,054,030 $ 1,130,801 |
Schedule of maturities of long-term debt | As of September 30, 2021, the future maturities of our borrowings were as follows: Fiscal Year Ended September 30, in thousands 2022 $ 50,000 2023 — 2024 — 2025 229,555 2026 — Thereafter 814,028 Total $ 1,093,583 |
Schedule of debt instrument redemption | For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 6 3/4% Senior Notes March 2017 March 2025 Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest 5 7/8% Senior Notes October 2017 October 2027 On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2027 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 105.875% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2027 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest 7 1/4% Senior Notes September 2019 October 2029 On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of warranty reserves | Changes in warranty reserves are as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Balance at beginning of period $ 13,052 $ 13,388 $ 15,331 Accruals for warranties issued (a) 10,963 10,910 11,847 Changes in liability related to warranties existing in prior periods 864 (1,352) (1,686) Payments made (11,948) (9,894) (12,104) Balance at end of period $ 12,931 $ 13,052 $ 13,388 (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) | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets measured on a non-recurring basis | These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented: in thousands Level 1 Level 2 Level 3 Total As of September 30, 2021 Deferred compensation plan assets (a) $ — $ 2,730 $ — $ 2,730 As of September 30, 2020 Deferred compensation plan assets (a) $ — $ 2,339 $ — $ 2,339 Land held for sale (b) — — 6,240 (c) 6,240 As of September 30, 2019 Deferred compensation plan assets (a) $ — $ 1,970 $ — $ 1,970 Projects in progress (b) — — 84,982 (c) 84,982 Land held for sale (b) — — 5,207 (c) 5,207 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirect costs related to the asset. (c) Amount represents the impairment-date fair value of the projects in progress land held for sale assets that were impaired during the period indicated. |
Schedule of carrying values and estimated fair values of other financial assets and liabilities | The following table presents the carrying value and estimated fair value of certain other financial liabilities as of September 30, 2021 and September 30, 2020: As of September 30, 2021 As of September 30, 2020 in thousands Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Senior Notes and Term Loan (b) $ 983,827 $ 1,046,965 $ 1,062,664 $ 1,098,117 Junior Subordinated Notes (c) 70,203 70,203 68,137 68,137 Total $ 1,054,030 $ 1,117,168 $ 1,130,801 $ 1,166,254 (a) Carrying amounts are net of unamortized debt issuance costs or accretion. (b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lease cost | At September 30, 2021 and September 30, 2020, weighted-average remaining lease term and discount rate were as follows: Fiscal Year Ended September 30, 2021 2020 Weighted-average remaining lease term 4.8 years 5.1 years Weighted-average discount rate 4.56% 4.87% |
Lessee, operating lease, liability, maturity | The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2021: Fiscal Year Ended September 30, in thousands 2022 $ 4,335 2023 3,592 2024 2,470 2025 2,122 2026 1,504 Thereafter 1,785 Total lease payments 15,808 Less: imputed interest 1,654 Total operating lease liabilities $ 14,154 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Other Liabilities [Abstract] | |
Schedule of other liabilities | Other liabilities include the following as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Accrued compensations and benefits $ 54,606 $ 50,246 Customer deposits 28,526 18,937 Accrued interest 22,835 23,870 Accrued warranty expenses 12,931 13,052 Litigation accruals 8,325 4,981 Income tax liabilities — 584 Other 25,128 24,313 Total $ 152,351 $ 135,983 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Current federal (a) $ — $ (4,641) $ (4,935) Current state 1,126 485 693 Deferred federal 20,331 20,639 (31,291) Deferred state 89 1,490 (1,684) Total expense (benefit) $ 21,546 $ 17,973 $ (37,217) |
Schedule of effective income tax rate reconciliation | The expense from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Income tax computed at statutory rate $ 30,182 $ 14,971 $ (24,494) State income taxes, net of federal benefit 1,564 1,300 (590) Deferred rate change (904) 260 (88) Changes in uncertain tax positions — (2) (7) Permanent differences 2,433 2,177 2,908 Tax credits (12,088) (939) (14,902) Other, net 359 206 (44) Total expense (benefit) $ 21,546 $ 17,973 $ (37,217) |
Schedule of deferred tax assets and liabilities | The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2021 and September 30, 2020: in thousands September 30, 2021 September 30, 2020 Deferred tax assets: Federal and state net operating loss carryforwards $ 177,611 $ 192,981 Inventory adjustments 25,174 34,971 Incentive compensation 13,793 13,116 Intangible assets 6,016 13,993 Warranty and other reserves 6,006 5,503 Property, equipment and other assets 2,085 2,197 Uncertain tax positions 705 723 Other 2,435 844 Total deferred tax assets 233,825 264,328 Valuation allowance (29,059) (39,185) Deferred tax assets, net $ 204,766 $ 225,143 |
Schedule of unrecognized tax benefits roll forward | A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Balance at beginning of year $ 3,441 $ 3,473 $ 3,494 Additions for tax positions related to current year — — — Additions for tax positions related to prior years — — — Reductions in tax positions of prior years — — — Lapse of statute of limitations (83) (32) (21) Balance at end of year $ 3,358 $ 3,441 $ 3,473 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of allocation of share-based compensation costs by plan | The following table summarizes stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2021, 2020, and 2019, respectively. Fiscal Year Ended September 30, in thousands 2021 2020 2019 Stock options expense $ 25 $ 133 $ 178 Restricted stock awards expense 12,142 9,903 10,348 Stock-based compensation expense $ 12,167 $ 10,036 $ 10,526 |
Schedule of assumptions for stock option activity | We used the following valuation assumptions for stock options granted for the following prior periods presented: Fiscal Year Ended September 30, 2020 2019 Expected life of options 5.7 years 5.0 years Expected volatility 51.52 % 46.69 % Expected dividends — — Weighted-average risk-free interest rate 0.43 % 2.70 % Weighted-average fair value $ 4.99 $ 4.50 Fiscal Year Ended September 30, 2021 2020 2019 Expected volatility 26.1% - 67.0% 21.2% - 54.8% 21.0% - 57.1% Risk-free interest rate 0.23 % 1.61 % 2.92 % Dividend yield — — — Grant-date stock price $ 14.07 $ 15.62 $ 9.82 |
Schedule of stock options and SSARs outstanding | A summary of stock option activity for the periods presented is as follows: 2021 2020 2019 Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at beginning of period 392,465 $ 15.47 523,754 $ 14.34 533,052 $ 14.26 Granted — — 950 10.67 30,782 10.23 Exercised (278,206) 14.48 (128,921) 11.01 (31,450) 10.00 Forfeited — — (3,318) 9.55 (8,630) 10.45 Outstanding at end of period 114,259 $ 17.89 392,465 $ 15.47 523,754 $ 14.34 Exercisable at end of period 113,309 $ 17.95 354,796 $ 15.90 470,501 $ 14.42 |
Schedule of stock options and SSARS outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable as of September 30, 2021: Stock Options Outstanding Stock Options Exercisable Range of Exercise Price Number Outstanding Weighted-Average Contractual Remaining Life (Years) Weighted-Average Exercise Price Number Exercisable Weighted-Average Contractual Remaining Life (Years) Weighted-Average Exercise Price $1 - $10 15,436 4.6 $ 9.17 14,536 4.5 $ 9.09 $11 - $15 315 3.5 11.61 265 2.9 11.36 $16 -$20 98,508 0.6 19.28 98,508 0.6 19.28 $1 - $20 114,259 1.2 $ 17.89 113,309 1.1 $ 17.95 |
Schedule of stock options exercised and vested | Information pertaining to the intrinsic value of options exercised and the fair market value of options that vested is below: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Intrinsic value of options exercised $ 1,402 $ 587 $ 90 Fair market value of options vested 173 144 178 |
Schedule of nonvested stock awards and performance shares | Activity relating to all restricted stock awards for the periods presented is as follows: Year Ended September 30, 2021 Performance-Based (a) Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 796,024 $ 14.71 610,130 $ 13.85 1,406,154 $ 14.34 Granted 164,296 17.90 251,788 14.21 416,084 15.67 Vested (222,165) 22.40 (346,856) 14.36 (569,021) 17.50 Forfeited — — (28,488) 11.77 (28,488) 11.77 End of period 738,155 $ 13.45 486,574 $ 13.79 1,224,729 $ 13.59 (a) Grant and vesting activity during the year ended September 30, 2021 include 60,930 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period. Year Ended September 30, 2020 Performance-Based Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 778,814 $ 13.60 611,607 $ 12.11 1,390,421 $ 16.53 Granted 260,131 16.98 327,571 15.29 587,702 16.04 Vested (242,921) 13.60 (302,255) 11.89 (545,176) 12.65 Forfeited — — (26,793) 13.79 (26,793) 13.79 End of period 796,024 $ 14.71 610,130 $ 13.85 1,406,154 $ 14.34 Year Ended September 30, 2019 Performance-Based (a) Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 644,785 $ 16.47 431,783 $ 16.60 1,076,568 $ 16.53 Granted 467,819 9.95 448,657 9.82 916,476 9.89 Vested (321,833) 15.36 (212,558) 16.41 (534,391) 15.78 Forfeited (11,957) 13.44 (56,275) 12.20 (68,232) 12.42 End of period 778,814 $ 13.60 611,607 $ 12.11 1,390,421 $ 16.53 (a) Grant and vesting activity during the year ended September 30, 2019 include 86,050 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | Following is a summary of the components of basic and diluted income (loss) per share for the periods presented: Fiscal Year Ended September 30, in thousands (except per share data) 2021 2020 2019 Numerator: Income (loss) from continuing operations $ 122,180 $ 53,316 $ (79,421) Loss from discontinued operations, net of tax (159) (1,090) (99) Net income (loss) $ 122,021 $ 52,226 $ (79,520) Denominator: Basic weighted-average shares 29,954 29,704 30,617 Dilutive effect of restricted stock awards 461 229 — Dilutive effect of stock options 22 15 — Diluted weighted-average shares (a) 30,437 29,948 30,617 Basic income (loss) per share: Continuing operations $ 4.08 $ 1.80 $ (2.59) Discontinued operations (0.01) (0.04) (0.01) Total $ 4.07 $ 1.76 $ (2.60) Diluted income (loss) per share: Continuing operations $ 4.01 $ 1.78 $ (2.59) Discontinued operations — (0.04) (0.01) Total $ 4.01 $ 1.74 $ (2.60) (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 losses for the year ended September 30, 2019, all common stock equivalents were excluded from the computation of diluted loss per share for fiscal year 2019 because inclusion would have resulted in anti-dilution. |
Schedule of antidilutive securities | Fiscal Year Ended September 30, in thousands 2021 2020 2019 Stock options 142 375 524 Time-based restricted stock — 46 612 Performance-based restricted stock — — 779 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | The following tables contain our revenue, operating income (loss), and depreciation and amortization by segment for the periods presented: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Revenue West $ 1,118,578 $ 1,183,339 $ 1,014,702 East 569,835 477,624 514,961 Southeast 451,890 466,114 558,076 Total revenue $ 2,140,303 $ 2,127,077 $ 2,087,739 Fiscal Year Ended September 30, in thousands 2021 2020 2019 Operating income (loss) (a) West $ 181,303 $ 161,786 $ (5,492) East 84,630 56,319 51,576 Southeast 57,581 40,746 40,165 Segment total 323,514 258,851 86,249 Corporate and unallocated (b) (176,645) (179,744) (176,145) Total operating income (loss) $ 146,869 $ 79,107 $ (89,896) (a) Operating income (loss) is impacted by impairment and abandonment charges incurred during the periods presented (see Not e 5 for further information). For the year ended September 30, 2021, September 30, 2020, and September 30, 2019, we recognized $0.9 million , $1.7 million and $131.7 million of inventory impairment and abandonment charges, respectively, at our three reportable segments. (b) Corporate and unallocated operating loss includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. For the year ended September 30, 2021, there were no impairments of capitalized interest and capitalized indirect costs. For the year ended September 30, 2020, and September 30, 2019, we wrote off $1.2 million, and $16.9 million of capitalized interest and capitalized indirect costs, respectively (see Note 5 for further information). Fiscal Year Ended September 30, in thousands 2021 2020 2019 Depreciation and amortization West $ 7,250 $ 8,227 $ 6,456 East 2,207 2,458 3,250 Southeast 2,552 2,857 3,455 Segment total 12,009 13,542 13,161 Corporate and unallocated (a) 1,967 2,098 1,598 Total depreciation and amortization $ 13,976 $ 15,640 $ 14,759 (a) 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: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Capital expenditures West $ 6,924 $ 5,063 $ 11,635 East 1,549 2,237 2,518 Southeast 1,447 2,985 3,086 Corporate and unallocated 4,725 357 4,117 Total capital expenditures $ 14,645 $ 10,642 $ 21,356 The following table presents assets by segment as of September 30, 2021 and 2020: in thousands September 30, 2021 September 30, 2020 Assets West $ 819,317 $ 658,909 East 286,133 267,050 Southeast 296,581 301,827 Corporate and unallocated (a) 676,779 779,694 Total assets $ 2,078,810 $ 2,007,480 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of results of discontinued operations | The results of our discontinued operations in the consolidated statements of operations for the periods presented were as follows: Fiscal Year Ended September 30, in thousands 2021 2020 2019 Total revenue $ — $ — $ 55 Home construction and land sales expenses (a) 119 1,245 61 Gross loss (119) (1,245) (6) General and administrative expenses 85 173 125 Operating loss (204) (1,418) (131) Equity in loss of unconsolidated entities — — (1) Other income, net — 19 5 Loss from discontinued operations before income taxes (204) (1,399) (127) Benefit from income taxes (45) (309) (28) Loss from discontinued operations, net of tax $ (159) $ (1,090) $ (99) (a) Hom e construction and land sales expenses for the year ended September 30, 2020 include a $1.3 million estimated litigation settlement accrual relating to a case regarding past construction defects in our discontinued operations. Pursuant to the settlement agreement, the Company paid $1.4 million during fiscal 2021. |
Description of Business (Detail
Description of Business (Details) | Sep. 30, 2021stateregion |
Description of Business [Abstract] | |
Number of states in which home building segments operate | state | 13 |
Number of regions in which entity operates | region | 3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Real Estate Properties [Line Items] | ||
Deposits & Non-refundable Pre-acquisition Costs Incurred | $ 114,688 | $ 75,921 |
Remaining Obligation, Net of Cash Deposits | $ 676,149 | $ 395,133 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Buildings | Minimum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 25 years |
Buildings | Maximum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 30 years |
Information systems | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 5 years |
Furniture, fixtures, computer and office equipment | Minimum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Furniture, fixtures, computer and office equipment | Maximum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 7 years |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | $ 2,140,303 | $ 2,127,077 | $ 2,087,739 |
Homebuilding revenue | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | 2,127,700 | 2,116,910 | 2,077,245 |
Land sales and other revenue | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | $ 12,603 | $ 10,167 | $ 10,494 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($)home | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||
Threshold number of homes below a minimum threshold of profitability | home | 10 | ||
Measurement threshold of likelihood of being realized (percent) | 50.00% | ||
Income tax, refund claim | $ 4,600 | ||
Alternative minimum tax credit | $ 4,600 | 9,200 | |
Income Tax Receivable, Alternative Minimum Tax | 9,200 | ||
Income tax receivable | $ 9,929 | 9,252 | |
Customer deposits | 28,526 | 18,937 | |
Contract with customer, liability, revenue recognized | 18,100 | ||
Refunded by buyer | 800 | ||
Advertising costs | $ 14,000 | $ 15,900 | $ 17,900 |
Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated time to develop, sell, construct and close all homes (in years) | 3 years | ||
Estimated future warranty costs as a percentage or revenue (percent) | 0.30% | ||
Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated time to develop, sell, construct and close all homes (in years) | 5 years | ||
Estimated future warranty costs as a percentage or revenue (percent) | 1.00% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 01, 2019 | |
Supplemental disclosure of non-cash activity: | ||||
Operating lease right-of-use assets | $ 12,344 | $ 13,103 | ||
Operating lease liabilities | 14,154 | 15,333 | ||
Increase in operating leases right-of-use assets | 2,905 | 3,104 | $ 0 | |
Increase in operating leases liabilities | 2,905 | 3,104 | 0 | |
Supplemental disclosure of cash activity: | ||||
Interest payments | 74,171 | 71,888 | 101,109 | |
Income tax payments | 3,462 | 546 | 766 | |
Tax refunds received | 1,078 | 315 | 12 | |
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 246,715 | 327,693 | 106,741 | |
Restricted cash | 27,428 | 14,835 | 16,053 | |
Cash, Cash Equivalents, and Restricted Cash | $ 274,143 | 342,528 | $ 122,794 | |
Accounting Standards Update 2016-02 | ||||
Supplemental disclosure of non-cash activity: | ||||
Operating lease right-of-use assets | 13,895 | $ 13,900 | ||
Operating lease liabilities | $ 16,028 | $ 16,000 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Unconsolidated Entities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated entities | $ 4,464 | $ 4,003 | ||
Total equity of unconsolidated entities | 724,884 | 593,171 | $ 538,754 | $ 644,027 |
Total outstanding borrowings of unconsolidated entities | 12,708 | 8,807 | ||
Equity in income of unconsolidated entities | 594 | 347 | $ 404 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total equity of unconsolidated entities | $ 7,316 | $ 7,079 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Impairment of unconsolidated entity investment | $ 0 | $ 0 | $ 0 |
Financial Guarantee | |||
Schedule of Equity Method Investments [Line Items] | |||
Outstanding guarantees | $ 0 | $ 0 |
Owned Inventory - Schedule of I
Owned Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Real Estate [Abstract] | ||||
Homes under construction | $ 648,283 | $ 525,021 | ||
Land under development | 648,404 | 589,763 | ||
Land held for future development | 19,879 | 28,531 | ||
Land held for sale | 9,179 | 12,622 | ||
Capitalized interest | 106,985 | 119,659 | $ 136,565 | $ 144,645 |
Model homes | 68,872 | 75,142 | ||
Total owned inventory | $ 1,501,602 | $ 1,350,738 |
Owned Inventory - Narrative (De
Owned Inventory - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)contractcommunity | Sep. 30, 2021USD ($)home | Sep. 30, 2020USD ($)home | Sep. 30, 2019USD ($)community | |
Segment Reporting Information [Line Items] | ||||
Number of homes under construction | home | 2,912 | 2,562 | ||
Number of homes under construction, spec homes | home | 576 | 649 | ||
Total, spec homes | $ 116,400 | $ 135,700 | ||
Number of homes under construction, in-process spec homes | home | 542 | 516 | ||
In-process spec homes | $ 105,200 | $ 93,500 | ||
Number of homes under construction, finished spec homes | home | 34 | 133 | ||
Finished spec homes | $ 11,200 | $ 42,200 | ||
Threshold number of homes below a minimum threshold of profitability | home | 10 | |||
Impairment Charge | $ 109,000 | $ 900 | 1,700 | $ 131,700 |
Number of impaired communities in projects in progress | contract | 9 | |||
Number of impaired communities, classified as land held for development | contract | 6 | |||
Number of impaired communities in projects in progress | contract | 9 | |||
Land held for sale | $ 38,600 | 0 | 1,300 | 38,600 |
Abandonments | 853 | 1,646 | $ 0 | |
Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Number of communities impaired | community | 10 | |||
Impairment Charge | $ 110,030 | |||
Land held for sale | 0 | 1,257 | 38,588 | |
California | ||||
Segment Reporting Information [Line Items] | ||||
Number of communities impaired | contract | 15 | |||
Impairment Charge | $ 147,600 | |||
West | ||||
Segment Reporting Information [Line Items] | ||||
Number of impaired communities, classified as land held for sale | community | 6 | |||
West | Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Land held for sale | 0 | 89 | 37,963 | |
West | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Abandonments | 0 | 923 | $ 0 | |
West | Operating Segments | Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Number of communities impaired | community | 9 | |||
Impairment Charge | $ 92,912 | |||
East | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Abandonments | 465 | 82 | 0 | |
Southeast | Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Land held for sale | 0 | 8 | 0 | |
Southeast | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Abandonments | $ 388 | $ 641 | $ 0 | |
Southeast | Operating Segments | Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Number of communities impaired | community | 1 | |||
Impairment Charge | $ 858 |
Owned Inventory - Total Owned I
Owned Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Projects in Progress | $ 1,472,544 | $ 1,309,585 |
Land Held for Future Development | 19,879 | 28,531 |
Land Held for Sale | 9,179 | 12,622 |
Total owned inventory | 1,501,602 | 1,350,738 |
Corporate and unallocated | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 156,779 | 172,895 |
Land Held for Future Development | 0 | 0 |
Land Held for Sale | 0 | 0 |
Total owned inventory | 156,779 | 172,895 |
West | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 781,036 | 627,986 |
Land Held for Future Development | 3,483 | 3,483 |
Land Held for Sale | 4,478 | 4,516 |
Total owned inventory | 788,997 | 635,985 |
East | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 264,991 | 241,799 |
Land Held for Future Development | 10,888 | 14,077 |
Land Held for Sale | 584 | 3,702 |
Total owned inventory | 276,463 | 259,578 |
Southeast | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 269,738 | 266,905 |
Land Held for Future Development | 5,508 | 10,971 |
Land Held for Sale | 4,117 | 4,404 |
Total owned inventory | $ 279,363 | $ 282,280 |
Owned Inventory - Inventory Imp
Owned Inventory - Inventory Impairments and Lot Option Abandonment Charges, by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate, Write-down or Reserve [Line Items] | ||||
Land held for sale | $ 38,600 | $ 0 | $ 1,300 | $ 38,600 |
Abandonments | 853 | 1,646 | 0 | |
Total impairment and abandonment charges | 853 | 2,903 | 148,618 | |
West | Operating Segments | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Abandonments | 0 | 923 | 0 | |
East | Operating Segments | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Abandonments | 465 | 82 | 0 | |
Southeast | Operating Segments | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Abandonments | 388 | 641 | 0 | |
Continuing Operations | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Projects in progress | 0 | 0 | 110,030 | |
Land held for sale | 0 | 1,257 | 38,588 | |
Continuing Operations | Corporate and unallocated | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Projects in progress | 0 | 0 | 16,260 | |
Land held for sale | 0 | 1,160 | 625 | |
Continuing Operations | West | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Projects in progress | 0 | 0 | 92,912 | |
Land held for sale | 0 | 89 | 37,963 | |
Continuing Operations | Southeast | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Projects in progress | 0 | 0 | 858 | |
Land held for sale | $ 0 | $ 8 | $ 0 |
Owned Inventory - Results of Di
Owned Inventory - Results of Discounted Cash Flow Analysis (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)communitylot | |
Real Estate, Write-down or Reserve [Line Items] | ||||
Impairment Charge | $ 109,000 | $ 900 | $ 1,700 | $ 131,700 |
Continuing Operations | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Number of communities impaired | community | 10 | |||
Number of Lots Impaired | lot | 854 | |||
Impairment Charge | $ 110,030 | |||
Estimated Fair Value of Impaired Inventory | $ 84,982 | |||
Corporate and unallocated | Continuing Operations | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Number of communities impaired | community | 0 | |||
Number of Lots Impaired | lot | 0 | |||
Impairment Charge | $ 16,260 | |||
Estimated Fair Value of Impaired Inventory | $ 14,166 | |||
West | Operating Segments | Continuing Operations | ||||
Real Estate, Write-down or Reserve [Line Items] | ||||
Number of communities impaired | community | 9 | |||
Number of Lots Impaired | lot | 839 | |||
Impairment Charge | $ 92,912 | |||
Estimated Fair Value of Impaired Inventory | $ 69,449 | |||
Southeast | Operating Segments | Continuing Operations | ||||
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 | $ 1,367 |
Owned Inventory - Quantitative
Owned Inventory - Quantitative Unobservable Inputs (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($)contract | |
Minimum | |
Quantitative unobservable inputs for inventory impairment [Line Items] | |
Average selling price (in thousands) | $ | $ 350 |
Closings per community per month | contract | 1 |
Discount rate | 0.147 |
Maximum | |
Quantitative unobservable inputs for inventory impairment [Line Items] | |
Average selling price (in thousands) | $ | $ 615 |
Closings per community per month | contract | 4 |
Discount rate | 0.168 |
Interest (Details)
Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Capitalized interest in inventory, beginning of period | $ 119,659 | $ 136,565 | $ 144,645 |
Interest incurred | 77,397 | 87,224 | 103,970 |
Capitalized interest impaired | 0 | (792) | (13,907) |
Interest expense not qualified for capitalization and included as other expense | (2,781) | (8,468) | (3,109) |
Capitalized interest amortized to home construction and land sales expenses | (87,290) | (94,870) | (95,034) |
Capitalized interest in inventory, end of period | $ 106,985 | $ 119,659 | $ 136,565 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 54,808 | $ 49,451 |
Less: Accumulated depreciation | (31,923) | (27,171) |
Property and equipment, net | 22,885 | 22,280 |
Model furnishings and sales office improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,617 | 17,604 |
Information systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,628 | 14,930 |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,613 | 10,287 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,279 | 4,959 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,671 | $ 1,671 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 31, 2017 | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ (8,983,000) | $ (10,891,000) | |||
Total debt, net | 1,054,030,000 | 1,130,801,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility | 0 | 0 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Senior Unsecured Term Loan | 50,000,000 | 100,000,000 | |||
Unamortized debt issuance costs | (8,983,000) | (10,891,000) | |||
Total debt, net | 983,827,000 | 1,062,664,000 | |||
Junior Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt, net | 70,203,000 | 68,137,000 | |||
Unamortized discount | 30,570,000 | 32,636,000 | |||
6 3/4% Senior Notes (2025 Notes) | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt, net | 229,555,000 | 229,555,000 | |||
5 7/8% Senior Notes (2027 Notes) | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt, net | 363,255,000 | 394,000,000 | |||
7 1/4% Senior Notes (2029 Notes) | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt, net | $ 350,000,000 | $ 350,000,000 | |||
Senior Notes | 6 3/4% Senior Notes (2025 Notes) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 6.75% | 0.0675% | |||
Senior Notes | 5 7/8% Senior Notes (2027 Notes) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 5.88% | 0.0588% | |||
Senior Notes | 7 1/4% Senior Notes (2029 Notes) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 7.25% | 0.0725% | |||
Junior Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount | $ 30,600,000 |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Debt Maturities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 50,000 |
2023 | 0 |
2024 | 0 |
2025 | 229,555 |
2026 | 0 |
Thereafter | 814,028 |
Total | $ 1,093,583 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | Jun. 01, 2022 | Sep. 09, 2019USD ($) | Jun. 01, 2012 | Jan. 31, 2010USD ($) | Sep. 30, 2021USD ($)lender | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | May 31, 2018USD ($) | Oct. 31, 2017 |
Senior Notes [Abstract] | |||||||||
Ownership interest In guarantor subsidiaries | 100.00% | ||||||||
Loss on extinguishment of debt, net | $ 2,025,000 | $ 0 | $ 24,920,000 | ||||||
Senior Notes | Senior Unsecured Term Loans September 2022 | |||||||||
Senior Unsecured Term Loan [Abstract] | |||||||||
Aggregate principal amount of debt | $ 50,000,000 | ||||||||
Periodic payment | $ 50,000,000 | ||||||||
Stated interest rate on debt instrument | 4.875% | ||||||||
Junior Subordinated Notes [Abstract] | |||||||||
Debt Instrument, Face Amount | $ 50,000,000 | ||||||||
Senior Notes | 5 7/8% Senior Notes (2027 Notes) | |||||||||
Senior Unsecured Term Loan [Abstract] | |||||||||
Stated interest rate on debt instrument | 5.88% | 0.0588% | |||||||
Senior Notes [Abstract] | |||||||||
Repurchased senior debt | 30,700,000 | ||||||||
Loss on extinguishment of debt, net | $ (2,000,000) | ||||||||
Junior Subordinated Notes [Abstract] | |||||||||
Redemption price percentage | 105.875% | ||||||||
Junior Subordinated Notes | |||||||||
Junior Subordinated Notes [Abstract] | |||||||||
Aggregate principle balance of notes | $ 100,800,000 | ||||||||
Weighted average fixed interest rate of debt (percent) | 3.82% | ||||||||
Unamortized discount | $ 30,600,000 | ||||||||
Junior Subordinated Debt, Modified Terms | |||||||||
Senior Unsecured Term Loan [Abstract] | |||||||||
Aggregate principal amount of debt | $ 75,000,000 | ||||||||
Junior Subordinated Notes [Abstract] | |||||||||
Debt Instrument, Face Amount | $ 75,000,000 | ||||||||
Redemption price percentage | 75.00% | ||||||||
Junior Subordinated Debt, Modified Terms | Forecast | |||||||||
Junior Subordinated Notes [Abstract] | |||||||||
Annual increase of percentage of principal amount redeemable | 1.785% | ||||||||
Junior Subordinated Debt, Modified Terms | London Interbank Offered Rate (LIBOR) | |||||||||
Junior Subordinated Notes [Abstract] | |||||||||
Variable rate floor | 4.25% | ||||||||
Variable rate cap | 9.25% | ||||||||
Junior Subordinated Debt, Original Terms | |||||||||
Senior Unsecured Term Loan [Abstract] | |||||||||
Aggregate principal amount of debt | 25,800,000 | ||||||||
Junior Subordinated Notes [Abstract] | |||||||||
Debt Instrument, Face Amount | $ 25,800,000 | ||||||||
Junior Subordinated Debt, Original Terms | London Interbank Offered Rate (LIBOR) | |||||||||
Junior Subordinated Notes [Abstract] | |||||||||
Basis spread on variable rate | 2.45% | ||||||||
Revolving Credit Facility | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||
Line of credit facility, number of lenders | lender | 4 | ||||||||
Inventory assets pledged as collateral | $ 1,100,000,000 | ||||||||
Revolving Credit Facility | 0 | 0 | |||||||
Letters of credit secured using cash collateral | 0 | 0 | |||||||
Line of credit facility, remaining borrowing capacity | 250,000,000 | ||||||||
Letter of Credit | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Letters of credit secured using cash collateral | 21,800,000 | 12,700,000 | |||||||
Collateral amount | 22,300,000 | $ 12,900,000 | |||||||
Standby Letters of Credit | Standby Letter for Credit Facility | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||
Letters of credit secured using cash collateral | $ 11,800,000 | ||||||||
Standby Letters of Credit | Backstop Standby Letters of Credit | |||||||||
Line of Credit Facility [Abstract] | |||||||||
Maximum borrowing capacity | $ 40,000,000 |
Borrowings - Schedule of Debt R
Borrowings - Schedule of Debt Redemption (Details) - Senior Notes | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2019 | Oct. 31, 2017 | Mar. 31, 2017 | |
6 3/4% Senior Notes (2025 Notes) | ||||
Debt Instrument, Redemption [Line Items] | ||||
Stated interest rate on debt instrument | 6.75% | 0.0675% | ||
6 3/4% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period One | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 100.00% | |||
6 3/4% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 105.063% | |||
6 3/4% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 103.375% | |||
6 3/4% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 101.688% | |||
6 3/4% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 100.00% | |||
5 7/8% Senior Notes (2027 Notes) | ||||
Debt Instrument, Redemption [Line Items] | ||||
Stated interest rate on debt instrument | 5.88% | 0.0588% | ||
Redemption price percentage | 105.875% | |||
Percentage of principal amount redeemed | 35.00% | |||
Percentage of principal amount outstanding after redemption | 65.00% | |||
5 7/8% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period One | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 100.00% | |||
5 7/8% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 102.938% | |||
5 7/8% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 101.958% | |||
5 7/8% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 100.979% | |||
5 7/8% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 100.00% | |||
7 1/4% Senior Notes Maturing October 2029 | ||||
Debt Instrument, Redemption [Line Items] | ||||
Stated interest rate on debt instrument | 7.25% | 0.0725% | ||
Redemption price percentage | 107.25% | |||
Percentage of principal amount redeemed | 35.00% | |||
Percentage of principal amount outstanding after redemption | 65.00% | |||
7 1/4% Senior Notes Maturing October 2029 | Debt Instrument, Redemption, Period One | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 100.00% | |||
7 1/4% Senior Notes Maturing October 2029 | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 103.625% | |||
7 1/4% Senior Notes Maturing October 2029 | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 102.417% | |||
7 1/4% Senior Notes Maturing October 2029 | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 101.208% | |||
7 1/4% Senior Notes Maturing October 2029 | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument, Redemption [Line Items] | ||||
Redemption price percentage | 100.00% |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019community | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Loss Contingencies [Line Items] | |||
Standard product warranty length, minimum | 1 year | ||
Standard product warranty length, maximum | 2 years | ||
Limited product warranty length (up to) | 10 years | ||
Legal Reserve | |||
Loss Contingencies [Line Items] | |||
Accrued amounts for litigation and other contingent liabilities | $ 8.3 | $ 5 | |
Performance Bonds | |||
Loss Contingencies [Line Items] | |||
Letters of credit secured using cash collateral | 33.6 | ||
Outstanding performance bonds | $ 282.3 | ||
California | |||
Loss Contingencies [Line Items] | |||
Number of communities | community | 15 |
Contingencies - Warranty (Detai
Contingencies - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 13,052 | $ 13,388 | $ 15,331 |
Accruals for warranties issued | 10,963 | 10,910 | 11,847 |
Changes in liability related to warranties existing in prior periods | 864 | (1,352) | (1,686) |
Payments made | (11,948) | (9,894) | (12,104) |
Balance at end of period | $ 12,931 | $ 13,052 | $ 13,388 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||||
Impairment of projects in process | $ 0 | $ 0 | $ 110,000,000 | |
Impairment of land held for sale | $ 38,600,000 | $ 0 | $ 1,300,000 | $ 38,600,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on a Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | $ 2,730 | $ 2,339 | $ 1,970 |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | 2,730 | 2,339 | 1,970 |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | $ 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land under development | 84,982 | ||
Land held for sale | 6,240 | 5,207 | |
Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land under development | 0 | ||
Land held for sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land under development | 0 | ||
Land held for sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land under development | 84,982 | ||
Land held for sale | $ 6,240 | $ 5,207 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 983,827 | $ 1,062,664 |
Junior Subordinated Notes | 70,203 | 68,137 |
Total debt, net | 1,054,030 | 1,130,801 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 1,046,965 | 1,098,117 |
Junior Subordinated Notes | 70,203 | 68,137 |
Total debt, net | $ 1,117,168 | $ 1,166,254 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 4.3 | $ 4.5 | |
Rental expense | $ 5.8 | ||
Operating lease payments | $ 4.8 | $ 4.6 |
Operating Leases - Weighted-Ave
Operating Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 4 years 9 months 18 days | 5 years 1 month 6 days |
Weighted-average discount rate | 4.56% | 4.87% |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2022 | $ 4,335 | |
2023 | 3,592 | |
2024 | 2,470 | |
2025 | 2,122 | |
2026 | 1,504 | |
Thereafter | 1,785 | |
Total lease payments | 15,808 | |
Less: imputed interest | 1,654 | |
Operating lease liabilities | $ 14,154 | $ 15,333 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Other Liabilities [Abstract] | ||||
Accrued compensations and benefits | $ 54,606 | $ 50,246 | ||
Customer deposits | 28,526 | 18,937 | ||
Accrued interest | 22,835 | 23,870 | ||
Accrued warranty expenses | 12,931 | 13,052 | $ 13,388 | $ 15,331 |
Litigation accruals | 8,325 | 4,981 | ||
Income tax liabilities | 0 | 584 | ||
Other | 25,128 | 24,313 | ||
Total | $ 152,351 | $ 135,983 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current federal | $ 0 | $ (4,641) | $ (4,935) |
Current state | 1,126 | 485 | 693 |
Deferred federal | 20,331 | 20,639 | (31,291) |
Deferred state | 89 | 1,490 | (1,684) |
Total expense (benefit) | $ 21,546 | $ 17,973 | $ (37,217) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax computed at statutory rate | $ 30,182 | $ 14,971 | $ (24,494) |
State income taxes, net of federal benefit | 1,564 | 1,300 | (590) |
Deferred rate change | (904) | 260 | (88) |
Changes in uncertain tax positions | 0 | (2) | (7) |
Permanent differences | 2,433 | 2,177 | 2,908 |
Tax credits | (12,088) | (939) | (14,902) |
Other, net | 359 | 206 | (44) |
Total expense (benefit) | $ 21,546 | $ 17,973 | $ (37,217) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Tax Credit Carryforward [Line Items] | ||||
Federal net operating loss carryforwards | $ 100,300 | |||
Federal and state net operating loss carryforwards | 177,611 | $ 192,981 | ||
State net operating loss carryforwards | 34,900 | |||
Valuation allowance | (29,059) | (39,185) | ||
Pre-tax income required to realize deferred tax assets prior to expiration | 927,400 | |||
Unrecognized tax benefits | 3,358 | $ 3,441 | $ 3,473 | $ 3,494 |
Federal tax authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal and state net operating loss carryforwards | $ 45,700 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Tax credit carryforwards | $ 177,611 | $ 192,981 |
Inventory adjustments | 25,174 | 34,971 |
Incentive compensation | 13,793 | 13,116 |
Intangible assets | 6,016 | 13,993 |
Warranty and other reserves | 6,006 | 5,503 |
Property, equipment and other assets | 2,085 | 2,197 |
Uncertain tax positions | 705 | 723 |
Other | 2,435 | 844 |
Total deferred tax assets | 233,825 | 264,328 |
Valuation allowance | (29,059) | (39,185) |
Deferred tax assets, net | $ 204,766 | $ 225,143 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 3,441 | $ 3,473 | $ 3,494 |
Additions for tax positions related to current year | 0 | 0 | 0 |
Additions for tax positions related to prior years | 0 | 0 | 0 |
Reductions in tax positions of prior years | 0 | 0 | 0 |
Lapse of statute of limitations | (83) | (32) | (21) |
Balance at end of year | $ 3,358 | $ 3,441 | $ 3,473 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2021 | Dec. 31, 2018 | |
Equity [Abstract] | ||||
Preferred stock outstanding (in shares) | 0 | |||
Common stock authorized (in shares) | 63,000,000 | 63,000,000 | ||
Common stock issued (in shares) | 31,012,326 | 31,294,198 | ||
Common stock outstanding (in shares) | 31,012,326 | 31,294,198 | ||
Authorized amount repurchase of common stock | $ 50,000,000 | |||
Aggregate repurchased value | $ 3,327,000 | $ 34,624,000 | ||
Remaining availability repurchase amount | $ 12,000,000 | |||
382 ownership limitation | 4.95% |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plan - 401(k) Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution percentage | 50.00% | ||
Percentage of maximum contributions per employee | 6.00% | ||
Contribution vesting period | 5 years | ||
Employer contribution amount | $ 3.2 | $ 3.4 | $ 3.6 |
Total matching contributions forfeited by plan participants during period | $ 0.8 | $ 1 | $ 0.7 |
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee deferral or contribution | 1.00% | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee deferral or contribution | 80.00% |
Retirement and Deferred Compe_3
Retirement and Deferred Compensation Plan - Deferred Compensation Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued compensations and benefits | $ 54,606 | $ 50,246 | |
Deferred Compensation Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan assets | 2,700 | 2,300 | |
Accrued compensations and benefits | 7,200 | 5,600 | |
Employer contribution to deferred compensation plan | $ 200 | $ 200 | $ 200 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | 36 Months Ended | 45 Months Ended | |||
Nov. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares of common stock reserved for issuance under plan (in shares) | 2,100,000 | 2,100,000 | |||||
Number of shares of common stock available for future grants (in shares) | 1,900,000 | 1,900,000 | |||||
Intrinsic value of stock options exercisable | $ 0.1 | $ 0.1 | |||||
Intrinsic value of stock options outstanding | $ 0.1 | $ 0.1 | |||||
Granted (in shares) | 0 | 950 | 30,782 | ||||
ESOP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options available under ESOP (in shares) | 100,000 | 100,000 | |||||
Granted (in shares) | 31,732 | ||||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 0.1 | $ 0.1 | |||||
Weighted average period to recognize remaining cost | 4 months 24 days | ||||||
Stock options | 2014 Plan and the 2010 Equity Incentive Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Stock options | 2014 Plan and the 2010 Equity Incentive Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Stock options | ESOP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 7.2 | $ 9 | $ 9 | $ 7.2 | |||
Weighted average period to recognize remaining cost | 1 year 4 months 24 days | ||||||
Estimated fair value of nonvested stock (in dollars per share) | $ 15.67 | $ 16.04 | $ 9.89 | ||||
Performance share awards to be vested | 1,224,729 | 1,406,154 | 1,390,421 | 1,406,154 | 1,224,729 | 1,076,568 | |
Performance-based restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Stock awards granted in period (in shares) | 103,366 | ||||||
Estimated fair value of nonvested stock (in dollars per share) | $ 17.90 | $ 16.98 | $ 9.95 | ||||
Performance share awards to be vested | 738,155 | 796,024 | 778,814 | 796,024 | 738,155 | 644,785 | |
Performance-based restricted stock | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payout percentage | 0.00% | ||||||
Performance-based restricted stock | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payout percentage | 175.00% | ||||||
Performance-based restricted stock | 2019 Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Unrecognized compensation cost | $ 0.3 | $ 0.3 | |||||
Performance share awards to be vested | 552,417 | 552,417 | |||||
Compensation cost related to performance based awards | $ 4.1 | $ 1.3 | $ 1.1 | $ 6.8 | |||
Performance-based restricted stock | 2017 Performance-Based Award Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance based restricted stock settled in cash payment (in shares) | 135,337 | ||||||
Cash settlement of performance-based restricted stock | $ 2.1 | ||||||
Total Shareholder Return Performance Share | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payout percentage | 20.00% | ||||||
Estimated fair value of nonvested stock (in dollars per share) | $ 15.24 | ||||||
Time-based restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Stock awards granted in period (in shares) | 251,788 | ||||||
Estimated fair value of nonvested stock (in dollars per share) | $ 14.21 | $ 15.29 | $ 9.82 | ||||
Performance share awards to be vested | 486,574 | 610,130 | 611,607 | 610,130 | 486,574 | 431,783 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Compensation Cost for Share-based Payment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 12,167 | $ 10,036 | $ 10,526 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 25 | 133 | 178 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 12,142 | $ 9,903 | $ 10,348 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Assumptions for Stock Options Granted (Details) - Stock options - $ / shares | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of options | 5 years 8 months 12 days | 5 years |
Expected volatility | 51.52% | 46.69% |
Expected dividends | 0.00% | 0.00% |
Weighted-average risk-free interest rate | 0.43% | 2.70% |
Weighted average fair value (in dollars per share) | $ 4.99 | $ 4.50 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock Options Activity (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Shares | |||
Outstanding at beginning of period (in shares) | 392,465 | 523,754 | 533,052 |
Granted (in shares) | 0 | 950 | 30,782 |
Exercised (in shares) | (278,206) | (128,921) | (31,450) |
Forfeited (in shares) | 0 | (3,318) | (8,630) |
Outstanding at end of period (in shares) | 114,259 | 392,465 | 523,754 |
Exercisable at end of period (in shares) | 113,309 | 354,796 | 470,501 |
Weighted- Average Exercise Price | |||
Outstanding at beginning or period (in dollars per share) | $ 15.47 | $ 14.34 | $ 14.26 |
Granted (in dollars per share) | 0 | 10.67 | 10.23 |
Exercised (in dollars per share) | 14.48 | 11.01 | 10 |
Forfeited (in dollars per share) | 0 | 9.55 | 10.45 |
Outstanding at end of period (in dollars per share) | 17.89 | 15.47 | 14.34 |
Exercisable at end of period (in dollars per share) | $ 17.95 | $ 15.90 | $ 14.42 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options - exercise price range, lower limit (in dollars per share) | $ 1 | |||
Stock Options Outstanding, Number Outstanding (in shares) | 114,259 | 392,465 | 523,754 | 533,052 |
Stock Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 17.89 | $ 15.47 | $ 14.34 | $ 14.26 |
Stock Options Exercisable, Number Exercisable (in shares) | 113,309 | 354,796 | 470,501 | |
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 17.95 | $ 15.90 | $ 14.42 | |
$1 - $10 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options - exercise price range, upper limit (in dollars per share) | $ 10 | |||
Stock Options Outstanding, Number Outstanding (in shares) | 15,436 | |||
Stock Options Outstanding - Weighted Average Contractual Remaining Life (Years) | 4 years 7 months 6 days | |||
Stock Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.17 | |||
Stock Options Exercisable, Number Exercisable (in shares) | 14,536 | |||
Stock Options Exercisable - Weighted Average Contractual Remaining Life (Years) | 4 years 6 months | |||
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.09 | |||
$11 - $15 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options - exercise price range, lower limit (in dollars per share) | 11 | |||
Stock options - exercise price range, upper limit (in dollars per share) | $ 15 | |||
Stock Options Outstanding, Number Outstanding (in shares) | 315 | |||
Stock Options Outstanding - Weighted Average Contractual Remaining Life (Years) | 3 years 6 months | |||
Stock Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.61 | |||
Stock Options Exercisable, Number Exercisable (in shares) | 265 | |||
Stock Options Exercisable - Weighted Average Contractual Remaining Life (Years) | 2 years 10 months 24 days | |||
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.36 | |||
$16 -$20 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options - exercise price range, lower limit (in dollars per share) | 16 | |||
Stock options - exercise price range, upper limit (in dollars per share) | $ 20 | |||
Stock Options Outstanding, Number Outstanding (in shares) | 98,508 | |||
Stock Options Outstanding - Weighted Average Contractual Remaining Life (Years) | 7 months 6 days | |||
Stock Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 19.28 | |||
Stock Options Exercisable, Number Exercisable (in shares) | 98,508 | |||
Stock Options Exercisable - Weighted Average Contractual Remaining Life (Years) | 7 months 6 days | |||
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 19.28 | |||
$1 - $20 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options - exercise price range, lower limit (in dollars per share) | 1 | |||
Stock options - exercise price range, upper limit (in dollars per share) | $ 20 | |||
Stock Options Outstanding, Number Outstanding (in shares) | 114,259 | |||
Stock Options Outstanding - Weighted Average Contractual Remaining Life (Years) | 1 year 2 months 12 days | |||
Stock Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 17.89 | |||
Stock Options Exercisable, Number Exercisable (in shares) | 113,309 | |||
Stock Options Exercisable - Weighted Average Contractual Remaining Life (Years) | 1 year 1 month 6 days | |||
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 17.95 |
Stock-Based Compensation - Intr
Stock-Based Compensation - Intrinsic and Fair Market Value of Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 1,402 | $ 587 | $ 90 |
Fair market value of options vested | $ 173 | $ 144 | $ 178 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - Performance-based restricted stock - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 26.10% | 21.20% | 21.00% |
Expected volatility, maximum | 67.00% | 54.80% | 57.10% |
Risk-free interest rate | 0.23% | 1.61% | 2.92% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Grant-date stock price (in dollars per share) | $ 14.07 | $ 15.62 | $ 9.82 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Nonvested Stock Awards and Performance Shares (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock | |||
Shares | |||
Beginning of period (in shares) | 1,406,154 | 1,390,421 | 1,076,568 |
Granted (in shares) | 416,084 | 587,702 | 916,476 |
Vested (in shares) | (569,021) | (545,176) | (534,391) |
Forfeited (in shares) | (28,488) | (26,793) | (68,232) |
End of period (in shares) | 1,224,729 | 1,406,154 | 1,390,421 |
Weighted- Average Grant Date Fair Value | |||
Beginning of period (in dollars per share) | $ 14.34 | $ 16.53 | $ 16.53 |
Granted (in dollars per share) | 15.67 | 16.04 | 9.89 |
Vested (in dollars per share) | 17.50 | 12.65 | 15.78 |
Forfeited (in dollars per share) | 11.77 | 13.79 | 12.42 |
End of period (in dollars per share) | $ 13.59 | $ 14.34 | $ 16.53 |
Performance-based restricted stock | |||
Shares | |||
Beginning of period (in shares) | 796,024 | 778,814 | 644,785 |
Granted (in shares) | 164,296 | 260,131 | 467,819 |
Vested (in shares) | (222,165) | (242,921) | (321,833) |
Forfeited (in shares) | 0 | 0 | (11,957) |
End of period (in shares) | 738,155 | 796,024 | 778,814 |
Weighted- Average Grant Date Fair Value | |||
Beginning of period (in dollars per share) | $ 14.71 | $ 13.60 | $ 16.47 |
Granted (in dollars per share) | 17.90 | 16.98 | 9.95 |
Vested (in dollars per share) | 22.40 | 13.60 | 15.36 |
Forfeited (in dollars per share) | 0 | 0 | 13.44 |
End of period (in dollars per share) | $ 13.45 | $ 14.71 | $ 13.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Granted and Vested in Period | 60,930 | 86,050 | |
Time-based restricted stock | |||
Shares | |||
Beginning of period (in shares) | 610,130 | 611,607 | 431,783 |
Granted (in shares) | 251,788 | 327,571 | 448,657 |
Vested (in shares) | (346,856) | (302,255) | (212,558) |
Forfeited (in shares) | (28,488) | (26,793) | (56,275) |
End of period (in shares) | 486,574 | 610,130 | 611,607 |
Weighted- Average Grant Date Fair Value | |||
Beginning of period (in dollars per share) | $ 13.85 | $ 12.11 | $ 16.60 |
Granted (in dollars per share) | 14.21 | 15.29 | 9.82 |
Vested (in dollars per share) | 14.36 | 11.89 | 16.41 |
Forfeited (in dollars per share) | 11.77 | 13.79 | 12.20 |
End of period (in dollars per share) | $ 13.79 | $ 13.85 | $ 12.11 |
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 | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | |||
Income (loss) from continuing operations | $ 122,180 | $ 53,316 | $ (79,421) |
Loss from discontinued operations, net of tax | (159) | (1,090) | (99) |
Net income (loss) | $ 122,021 | $ 52,226 | $ (79,520) |
Denominator: | |||
Basic weighted-average shares (in shares) | 29,954 | 29,704 | 30,617 |
Dilutive effect of restricted stock awards (in shares) | 461 | 229 | 0 |
Dilutive effect of stock options (in shares) | 22 | 15 | 0 |
Diluted weighted-average shares (in shares) | 30,437 | 29,948 | 30,617 |
Basic income (loss) per share: | |||
Continuing operations (in dollars per share) | $ 4.08 | $ 1.80 | $ (2.59) |
Discontinued operations (in dollars per share) | (0.01) | (0.04) | (0.01) |
Total (in dollars per share) | 4.07 | 1.76 | (2.60) |
Diluted income (loss) per share: | |||
Continuing operations (in dollars per share) | 4.01 | 1.78 | (2.59) |
Discontinued operations (in dollars per share) | 0 | (0.04) | (0.01) |
Total (in dollars per share) | $ 4.01 | $ 1.74 | $ (2.60) |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 142 | 375 | 524 |
Time-based restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 46 | 612 |
Performance-based restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 779 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Sep. 30, 2021USD ($)segmentstateregion | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of states with active operations | state | 13 | |||
Number of regions in which entity operates | region | 3 | |||
Number of homebuilding segments | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 2,140,303 | $ 2,127,077 | $ 2,087,739 | |
Total operating income (loss) | 146,869 | 79,107 | (89,896) | |
Inventory Impairment, Results of Discounted Cash Flow Analysis | $ 109,000 | 900 | 1,700 | 131,700 |
Write Off Capitalized Interest and Capitalized Indirect Cost | 0 | 1,200 | 16,900 | |
Depreciation and amortization | 13,976 | 15,640 | 14,759 | |
Capital expenditures | 14,645 | 10,642 | 21,356 | |
Assets | 2,078,810 | 2,007,480 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 323,514 | 258,851 | 86,249 | |
Depreciation and amortization | 12,009 | 13,542 | 13,161 | |
Corporate and unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | (176,645) | (179,744) | (176,145) | |
Depreciation and amortization | 1,967 | 2,098 | 1,598 | |
Capital expenditures | 4,725 | 357 | 4,117 | |
Assets | 676,779 | 779,694 | ||
West | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,118,578 | 1,183,339 | 1,014,702 | |
West | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 181,303 | 161,786 | (5,492) | |
Depreciation and amortization | 7,250 | 8,227 | 6,456 | |
Capital expenditures | 6,924 | 5,063 | 11,635 | |
Assets | 819,317 | 658,909 | ||
East | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 569,835 | 477,624 | 514,961 | |
East | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 84,630 | 56,319 | 51,576 | |
Depreciation and amortization | 2,207 | 2,458 | 3,250 | |
Capital expenditures | 1,549 | 2,237 | 2,518 | |
Assets | 286,133 | 267,050 | ||
Southeast | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 451,890 | 466,114 | 558,076 | |
Southeast | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 57,581 | 40,746 | 40,165 | |
Depreciation and amortization | 2,552 | 2,857 | 3,455 | |
Capital expenditures | 1,447 | 2,985 | $ 3,086 | |
Assets | $ 296,581 | $ 301,827 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss from discontinued operations, net of tax | $ (159) | $ (1,090) | $ (99) |
Litigation settlement accrual | 1,300 | ||
Litigation settlement expense | 1,400 | ||
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenue | 0 | 0 | 55 |
Home construction and land sales expenses | 119 | 1,245 | 61 |
Gross loss | (119) | (1,245) | (6) |
General and administrative expenses | 85 | 173 | 125 |
Operating loss | (204) | (1,418) | (131) |
Equity in loss of unconsolidated entities | 0 | 0 | (1) |
Other income, net | 0 | 19 | 5 |
Loss from discontinued operations before income taxes | (204) | (1,399) | (127) |
Benefit from income taxes | (45) | (309) | (28) |
Loss from discontinued operations, net of tax | $ (159) | $ (1,090) | $ (99) |