x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 58-2086934 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer Identification no.) |
1000 Abernathy Road, Suite 260, Atlanta, Georgia | 30328 | |
(Address of principal executive offices) | (Zip Code) |
Title of Securities | Exchanges on Which Registered | |
Common Stock, $.001 par value per share | New York Stock Exchange | |
Series A Junior Participating Preferred Stock Purchase Rights | New York Stock Exchange |
Large accelerated filer | ¨ | Accelerated filer | x |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Class | Outstanding at November 10, 2016 | |
Common Stock, $0.001 par value | 33,071,331 |
Part of 10-K where incorporated | |
Portions of the registrant’s Proxy Statement for the 2017 Annual Meeting of Stockholders | III |
• | economic changes nationally or in local markets, changes in consumer confidence, declines in employment levels, inflation or increases in the quantity and decreases in the price of new homes and resale homes on the market; |
• | the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; |
• | factors affecting margins, such as decreased land values underlying land option agreements, increased land development costs on communities under development or delays or difficulties in implementing initiatives to reduce our production and overhead cost structure; |
• | the availability and cost of land and the risks associated with the future value of our inventory, such as additional asset impairment charges or writedowns; |
• | estimates related to homes to be delivered in the future (backlog) are imprecise, as they are subject to various cancellation risks that cannot be fully controlled; |
• | shortages of or increased prices for labor, land or raw materials used in housing production and the level of quality and craftsmanship provided by our subcontractors; |
• | our cost of and ability to access capital, due to factors such as limitations in the capital markets or adverse credit market conditions, and otherwise meet our ongoing liquidity needs, including the impact of any downgrades of our credit ratings or reductions in our tangible net worth or liquidity levels; |
• | our ability to reduce our outstanding indebtedness and to comply with covenants in our debt agreements or satisfy such obligations through repayment or refinancing; |
• | a substantial increase in mortgage interest rates, increased disruption in the availability of mortgage financing, a change in tax laws regarding the deductibility of mortgage interest for tax purposes or an increased number of foreclosures; |
• | increased competition or delays in reacting to changing consumer preferences in home design; |
• | continuing severe weather conditions or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas; |
• | estimates related to the potential recoverability of our deferred tax assets; |
• | potential delays or increased costs in obtaining necessary permits as a result of changes to, or complying with, laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or governmental policies, including those related to the environment; |
• | the results of litigation or government proceedings and fulfillment of any related obligations; |
• | the impact of construction defect and home warranty claims, including water intrusion issues in Florida; |
• | the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; |
• | the performance of our unconsolidated entities and our unconsolidated entity partners; |
• | the impact of information technology failures or data security breaches; |
• | terrorist acts, natural disasters, acts of war or other factors over which the Company has little or no control; or |
• | the impact on homebuilding in key markets of governmental regulations limiting the availability of water. |
• | improve and maintain our sales per community per month to a range of 2.8 to 3.2; |
• | increase and maintain an active community count between a range of 170 and 175; |
• | increase our average selling price (ASP) to a range of $330 thousand to $340 thousand; |
• | continue to improve our homebuilding gross margin to be within a range of 21% to 22% (excluding impairments and abandonments and interest amortized to homebuilding cost of sales); and |
• | drive cost leverage, as measured by selling, general and administrative expenses as a percentage of total revenue, to a range of 11% to 12%. |
Segment/State | Market(s) | |
West: | ||
Arizona | Phoenix | |
California | Los Angeles County, Orange County, Riverside and San Bernardino Counties, San Diego County, Ventura County, Sacramento County, Kern County, Yuba County | |
Nevada | Las Vegas | |
Texas | Dallas/Ft. Worth, Houston | |
East: | ||
Indiana | Indianapolis | |
Maryland/Delaware | Baltimore, Howard, Anne Arundel, Metro-Washington, D.C./ Sussex | |
Tennessee | Nashville | |
Virginia | Loudoun County, Prince William County, Stafford County, Spotsylvania County, Fredericksburg | |
Southeast: | ||
Florida | Tampa/St. Petersburg, Orlando | |
Georgia | Atlanta, Savannah | |
North Carolina | Raleigh/Durham | |
South Carolina | Charleston, Myrtle Beach |
2016 | 2015 | 2014 | ||||||||||||||||||
($ in thousands) | Number of Homes Closed | Average Closing Price | Number of Homes Closed | Average Closing Price | Number of Homes Closed | Average Closing Price | ||||||||||||||
West | 2,508 | $ | 326.1 | 1,954 | $ | 299.0 | 1,996 | $ | 269.1 | |||||||||||
East | 1,373 | 368.0 | 1,546 | 355.4 | 1,600 | 328.4 | ||||||||||||||
Southeast | 1,538 | 300.1 | 1,510 | 289.4 | 1,355 | 256.3 | ||||||||||||||
Total Company | 5,419 | $ | 329.4 | 5,010 | $ | 313.5 | 4,951 | $ | 284.8 |
September 30, 2016 | September 30, 2015 | September 30, 2014 | ||||||||||||||||||
Units in Backlog | Dollar Value in Backlog (in millions) | Units in Backlog | Dollar Value in Backlog (in millions) | Units in Backlog | Dollar Value in Backlog (in millions) | |||||||||||||||
West | 828 | $ | 278.5 | 955 | $ | 307.1 | 557 | $ | 154.9 | |||||||||||
East | 444 | 168.5 | 487 | 181.1 | 600 | 208.2 | ||||||||||||||
Southeast | 644 | 205.6 | 596 | 179.5 | 533 | 152.7 | ||||||||||||||
Total Company | 1,916 | $ | 652.7 | 2,038 | $ | 667.7 | 1,690 | $ | 515.9 | |||||||||||
ASP in backlog (in thousands) | $ | 340.6 | $ | 327.6 | $ | 305.3 |
• | evaluate and select geographic markets; |
• | allocate capital resources to particular markets for land acquisitions; |
• | maintain and develop relationships with lenders and capital markets to create and maintain access to financial resources; |
• | maintain and develop relationships with national product vendors; |
• | perform certain accounting, finance, legal, risk and marketing functions to support our field operations; |
• | operate and manage information systems and technology support operations; and |
• | monitor the operations of our divisions and partners. |
• | internal and external demographic and marketing studies; |
• | suitability for development during the time period of one to five years from the beginning of the development process to the last closing; |
• | financial review as to the feasibility of the proposed project, including profit margins and returns on capital employed; |
• | the ability to secure governmental approvals and entitlements; |
• | environmental and legal due diligence; |
• | competition in the area; |
• | proximity to local traffic corridors and amenities; and |
• | management's judgment of the real estate market and economic trends and our experience in a particular market. |
Lots Owned | |||||||||||||||||||||||
Lots with Homes Under Construction (a) | Finished Lots | Lots Under Development | Lots Held for Future Development | Lots Held for Sale | Total Lots Owned | Total Lots Under Contract | Total Lots Controlled | ||||||||||||||||
West | |||||||||||||||||||||||
Arizona | 111 | 415 | 205 | 46 | 1 | 778 | 600 | 1,378 | |||||||||||||||
California | 261 | 627 | 939 | 2,136 | 45 | 4,008 | 592 | 4,600 | |||||||||||||||
Nevada | 66 | 259 | 601 | 613 | — | 1,539 | 73 | 1,612 | |||||||||||||||
Texas | 587 | 1,204 | 1,141 | — | 40 | 2,972 | 2,013 | 4,985 | |||||||||||||||
Total West | 1,025 | 2,505 | 2,886 | 2,795 | 86 | 9,297 | 3,278 | 12,575 | |||||||||||||||
East | |||||||||||||||||||||||
Indiana | 116 | 357 | 440 | 93 | 34 | 1,040 | 234 | 1,274 | |||||||||||||||
Maryland/Delaware | 160 | 340 | 329 | 462 | 159 | 1,450 | 639 | 2,089 | |||||||||||||||
New Jersey | — | 4 | — | 116 | — | 120 | — | 120 | |||||||||||||||
Tennessee | 104 | 19 | 503 | — | 101 | 727 | 619 | 1,346 | |||||||||||||||
Virginia | 59 | 104 | 111 | — | — | 274 | 20 | 294 | |||||||||||||||
Total East | 439 | 824 | 1,383 | 671 | 294 | 3,611 | 1,512 | 5,123 | |||||||||||||||
Southeast | |||||||||||||||||||||||
Florida | 228 | 591 | 516 | 33 | — | 1,368 | 631 | 1,999 | |||||||||||||||
Georgia | 79 | 132 | 360 | — | 23 | 594 | 304 | 898 | |||||||||||||||
North Carolina | 88 | 146 | — | 21 | — | 255 | 431 | 686 | |||||||||||||||
South Carolina | 210 | 649 | 781 | 68 | 1 | 1,709 | 282 | 1,991 | |||||||||||||||
Total Southeast | 605 | 1,518 | 1,657 | 122 | 24 | 3,926 | 1,648 | 5,574 | |||||||||||||||
Corporate and unallocated (b) | — | — | — | — | 84 | 84 | — | 84 | |||||||||||||||
Total | 2,069 | 4,847 | 5,926 | 3,588 | 488 | 16,918 | 6,438 | 23,356 |
(In thousands) | Land Under Development | Land Held for Future Development | Land Held for Sale | ||||||||
West | $ | 382,861 | $ | 172,015 | $ | 6,577 | |||||
East | 178,592 | 30,036 | 20,930 | ||||||||
Southeast | 180,964 | 10,955 | 1,090 | ||||||||
Corporate and unallocated (a) | — | — | 1,099 | ||||||||
Total | $ | 742,417 | $ | 213,006 | $ | 29,696 |
• | causing us to be unable to satisfy our obligations under our debt agreements; |
• | making us more vulnerable to adverse general economic and industry conditions; |
• | making it difficult to fund future working capital, land purchases, acquisitions, share repurchases, general corporate or other activities; and |
• | causing us to be limited in our flexibility in planning for, or reacting to, changes in our business. |
• | operating results that vary from the expectations of securities analysts and investors; |
• | factors influencing home purchases, such as availability of home mortgage loans and interest rates, credit criteria applicable to prospective borrowers, ability to sell existing residences and homebuyer sentiment in general; |
• | the operating and securities price performance of companies that investors consider comparable to us; |
• | announcements of strategic developments, acquisitions and other material events by us or our competitors; and |
• | changes in global financial markets and global economies and general market conditions, such as interest rates, commodity and equity prices and the value of financial assets. |
• | the timing of home closings and land sales; |
• | our ability to continue to acquire additional land or secure option contracts to acquire land on acceptable terms; |
• | conditions of the real estate market in areas where we operate and of the general economy; |
• | raw material and labor shortages; |
• | seasonal home buying patterns; and |
• | other changes in operating expenses, including the cost of labor and raw materials, personnel and general economic conditions. |
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | |||||||||||||
Fiscal Year Ended September 30, 2016 | ||||||||||||||||
High | $ | 15.79 | $ | 11.75 | $ | 10.06 | $ | 12.71 | ||||||||
Low | $ | 11.18 | $ | 6.07 | $ | 6.81 | $ | 7.43 | ||||||||
Fiscal Year Ended September 30, 2015 | ||||||||||||||||
High | $ | 20.44 | $ | 20.52 | $ | 21.19 | $ | 20.20 | ||||||||
Low | $ | 15.70 | $ | 14.20 | $ | 17.26 | $ | 13.01 |
Plan Category | Number of Common Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Common Shares Remaining Available for Future Issuance Under Equity Compensation Plans | |||
Equity compensation plans approved by stockholders | 672,669 | $16.49 | 777,998 |
Fiscal Year Ended September 30, | |||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | |||||||
u | Beazer Homes USA, Inc. | 235.10 | 238.41 | 222.25 | 176.56 | 154.44 | |||||
g | S&P 500 Index | 130.20 | 155.39 | 186.05 | 184.91 | 213.44 | |||||
p | S&P 500 Homebuilding Index | 276.55 | 280.05 | 303.19 | 384.08 | 381.37 |
Fiscal Year Ended September 30, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
($ in millions, except per share amounts and unit data) | |||||||||||||||||||
Statements of Income Data: (a) | |||||||||||||||||||
Total revenue | $ | 1,822 | $ | 1,627 | $ | 1,464 | $ | 1,288 | $ | 1,006 | |||||||||
Gross profit | 297 | 272 | 263 | 214 | 105 | ||||||||||||||
Gross margin (b) | 16.3 | % | 16.7 | % | 18.0 | % | 16.6 | % | 10.4 | % | |||||||||
Operating income (loss) | $ | 59 | $ | 52 | $ | 56 | $ | 27 | $ | (62 | ) | ||||||||
Income (loss) from continuing operations | 5 | 347 | 35 | (32 | ) | (136 | ) | ||||||||||||
Income (loss) per share from continuing operations - basic | 0.16 | 12.54 | 1.35 | (1.30 | ) | (7.34 | ) | ||||||||||||
Income (loss) per share from continuing operations - diluted | 0.16 | 10.91 | 1.10 | (1.30 | ) | (7.34 | ) | ||||||||||||
Net income (loss) | 4,693 | 344,094 | 34,383 | (33,868 | ) | (145,326 | ) | ||||||||||||
Balance Sheet Data (end of year): (c) | |||||||||||||||||||
Cash and cash equivalents and restricted cash | $ | 243 | $ | 290 | $ | 387 | $ | 553 | $ | 741 | |||||||||
Inventory | 1,569 | 1,698 | 1,561 | 1,314 | 1,112 | ||||||||||||||
Total assets (d) | 2,213 | 2,409 | 2,050 | 1,970 | 1,965 | ||||||||||||||
Total debt (d) | 1,332 | 1,516 | 1,520 | 1,496 | 1,481 | ||||||||||||||
Stockholders' equity | 643 | 630 | 279 | 241 | 262 | ||||||||||||||
Supplemental Financial Data: (c) | |||||||||||||||||||
Cash provided by (used in): | |||||||||||||||||||
Operating activities | $ | 163 | $ | (81 | ) | $ | (160 | ) | $ | (175 | ) | $ | (21 | ) | |||||
Investing activities | 12 | 27 | (32 | ) | 190 | 5 | |||||||||||||
Financing activities | (198 | ) | (19 | ) | 12 | 1 | 134 | ||||||||||||
Financial Statistics: (c) | |||||||||||||||||||
Total debt as a percentage of total debt and stockholders' equity (end of year) (d) | 67.4 | % | 70.6 | % | 84.5 | % | 86.1 | % | 85.0 | % | |||||||||
Net debt as a percentage of net debt and stockholders' equity (end of year) (d),(e) | 63.2 | % | 66.3 | % | 80.8 | % | 80.1 | % | 74.5 | % | |||||||||
Adjusted EBITDA from total operations (f) | $ | 175.4 | $ | 126.8 | $ | 128.3 | $ | 86.3 | $ | 21.8 | |||||||||
Adjusted EBITDA margin from total operations (g) | 9.6 | % | 7.8 | % | 8.8 | % | 6.7 | % | 2.2 | % | |||||||||
Operating Statistics from continuing operations: | |||||||||||||||||||
New orders, net | 5,297 | 5,358 | 4,748 | 5,026 | 4,901 | ||||||||||||||
Closings | 5,419 | 5,010 | 4,951 | 5,056 | 4,428 | ||||||||||||||
Average selling price on closings (in thousands) | $ | 329.4 | $ | 313.5 | $ | 284.8 | $ | 253.0 | $ | 224.9 | |||||||||
Units in backlog (end of year) | 1,916 | 2,038 | 1,690 | 1,893 | 1,923 | ||||||||||||||
Average selling price in backlog (end of year; in thousands) | $ | 340.6 | $ | 327.6 | $ | 305.3 | $ | 279.0 | $ | 249.1 |
Fiscal Year Ended September 30, | |||||||||||||||||||
(In thousands) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Net income (loss) | $ | 4,693 | $ | 344,094 | $ | 34,383 | $ | (33,868 | ) | $ | (145,326 | ) | |||||||
Expense (benefit) from income taxes | 16,224 | (325,927 | ) | (41,802 | ) | (3,684 | ) | (40,747 | ) | ||||||||||
Interest amortized to home construction and land sales expenses and capitalized interest impaired | 79,322 | 56,164 | 41,065 | 41,246 | 61,227 | ||||||||||||||
Interest expense not qualified for capitalization | 25,388 | 29,822 | 50,784 | 59,458 | 71,474 | ||||||||||||||
Loss on debt extinguishment | 13,423 | 80 | 19,917 | 4,636 | 45,097 | ||||||||||||||
Adjusted EBIT | 139,050 | 104,233 | 104,347 | 67,788 | (8,275 | ) | |||||||||||||
Depreciation and amortization and stock compensation amortization | 21,752 | 19,473 | 15,866 | 15,642 | 17,573 | ||||||||||||||
Inventory impairments and abandonments (a) | 14,572 | 3,109 | 8,062 | 2,650 | 12,514 | ||||||||||||||
Joint venture impairment and abandonment charges | — | — | — | 181 | 36 | ||||||||||||||
Adjusted EBITDA | 175,374 | 126,815 | 128,275 | 86,261 | 21,848 | ||||||||||||||
Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries) | (3,612 | ) | 13,582 | 4,290 | — | — | |||||||||||||
Unexpected warranty costs related to water intrusion issues in New Jersey (net of expected insurance recoveries) | — | — | 648 | — | — | ||||||||||||||
Additional insurance recoveries from third-party insurer | (15,500 | ) | — | — | — | — | |||||||||||||
Litigation settlement in discontinued operations | — | 3,660 | — | — | — | ||||||||||||||
Adjusted EBITDA excluding unexpected warranty costs, additional insurance recoveries and a litigation settlement in discontinued operations | $ | 156,262 | $ | 144,057 | $ | 133,213 | $ | 86,261 | $ | 21,848 |
• | In the current fiscal year, we had income tax expense of $16.5 million compared to the prior fiscal year's income tax benefit of $324.6 million, which included the impact of the release of a substantial portion of our valuation allowance on our deferred tax assets of $335.2 million; |
• | Unexpected warranty costs related to water intrusion issues in Florida (the Florida stucco issues), net of insurance recoveries, resulted in a net credit to home construction expenses of $3.6 million in fiscal 2016 versus additional expense of $13.6 million in fiscal 2015; |
• | An insurance settlement received from our third-party insurer to resolve certain issues related to the extent of our insurance coverage for multiple policy years was recognized during the current fiscal year as a reduction of our home construction expenses of $15.5 million; |
• | We recorded $15.3 million and $3.1 million in impairment and abandonment charges, including those on active projects, as well as land held for sale, during our fiscal 2016 and fiscal 2015, respectively, an increase of $12.2 million; and |
• | Total interest expense, including capitalized interest amortized to home construction and land sales expenses and interest expense not qualified for capitalization and included as other expense, was $104.0 million in the current fiscal year compared to $85.9 million in the prior fiscal year, an increase of $18.1 million (see Note 6 of the notes to our consolidated financial statements in this Form 10-K). |
• | We redeemed (1) our Senior Notes due June 2016, which had a balance of $170.9 million as of the beginning of the current fiscal year and had our most restrictive covenants; (2) our $300.0 million Senior Secured Notes due April 2018; (3) our $235.0 million Senior Notes due May 2019; (4) $3.6 million of our Senior Notes due June 2019; (5) $2.0 million of our Senior Notes due 2021; and (6) $85.0 million of our $140.0 million term loan, including $35.0 million of scheduled repayments and $50.0 million of early redemptions. |
• | We issued (1) a two-year secured term loan for $140 million, which had only $55.0 million outstanding as of the end of our fiscal 2016 due to the redemptions noted above, and (2) $500 million of Senior Notes due March 2022, which are unsecured and have an interest rate of 8.75%. |
New Orders (Net of Cancellations) | |||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | |||||||||||
2016 | 923 | 1,538 | 1,490 | 1,346 | 5,297 | ||||||||||
2015 | 966 | 1,698 | 1,524 | 1,170 | 5,358 | ||||||||||
2014 | 895 | 1,390 | 1,290 | 1,173 | 4,748 | ||||||||||
Closings | |||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | |||||||||||
2016 | 1,049 | 1,150 | 1,364 | 1,856 | 5,419 | ||||||||||
2015 | 885 | 936 | 1,293 | 1,896 | 5,010 | ||||||||||
2014 | 1,038 | 977 | 1,241 | 1,695 | 4,951 |
Fiscal Year Ended September 30, | |||||||||||
($ in thousands) | 2016 | 2015 | 2014 | ||||||||
Revenues: | |||||||||||
Homebuilding | $ | 1,784,777 | $ | 1,570,627 | $ | 1,409,880 | |||||
Land sales and other | 37,337 | 56,786 | 53,887 | ||||||||
Total | $ | 1,822,114 | $ | 1,627,413 | $ | 1,463,767 | |||||
Gross profit: | |||||||||||
Homebuilding | $ | 293,860 | $ | 267,269 | $ | 260,746 | |||||
Land sales and other | 3,347 | 5,175 | 2,713 | ||||||||
Total | $ | 297,207 | $ | 272,444 | $ | 263,459 | |||||
Gross margin: | |||||||||||
Homebuilding(a) | 16.5 | % | 17.0 | % | 18.5 | % | |||||
Land sales and other | 9.0 | % | 9.1 | % | 5.0 | % | |||||
Total | 16.3 | % | 16.7 | % | 18.0 | % | |||||
Commissions | $ | 70,460 | $ | 65,023 | $ | 58,028 | |||||
General and administrative expenses (G&A) | $ | 153,628 | $ | 142,496 | $ | 136,463 | |||||
SG&A (commissions plus G&A) as a percentage of total revenue | 12.3 | % | 12.8 | % | 13.3 | % | |||||
G&A as a percentage of total revenue | 8.4 | % | 8.8 | % | 9.3 | % | |||||
Depreciation and amortization | $ | 13,794 | $ | 13,338 | $ | 13,279 | |||||
Operating income | $ | 59,325 | $ | 51,587 | $ | 55,689 | |||||
Operating income as a percentage of total revenue | 3.3 | % | 3.2 | % | 3.8 | % | |||||
Effective tax rate(b) | 76.0 | % | (1,473.3 | )% | 608.0 | % | |||||
Equity in income of unconsolidated entities | $ | 131 | $ | 536 | $ | 6,545 | |||||
Loss on extinguishment of debt | 13,423 | 80 | 19,917 |
New Orders, net | Cancellation Rates | ||||||||||||||||||||||
2016 | 2015 | 2014 | 16 v 15 | 15 v 14 | 2016 | 2015 | 2014 | ||||||||||||||||
West | 2,381 | 2,352 | 1,815 | 1.2 | % | 29.6 | % | 21.9 | % | 19.7 | % | 21.9 | % | ||||||||||
East | 1,330 | 1,433 | 1,539 | (7.2 | )% | (6.9 | )% | 20.1 | % | 22.8 | % | 21.4 | % | ||||||||||
Southeast | 1,586 | 1,573 | 1,394 | 0.8 | % | 12.8 | % | 18.2 | % | 18.1 | % | 20.5 | % | ||||||||||
Total | 5,297 | 5,358 | 4,748 | (1.1 | )% | 12.8 | % | 20.4 | % | 20.1 | % | 21.3 | % |
As of September 30, | ||||||||||||||||||
2016 | 2015 | 2014 | 16 v 15 | 15 v 14 | ||||||||||||||
Backlog Units: | ||||||||||||||||||
West | 828 | 955 | 557 | (13.3 | )% | 71.5 | % | |||||||||||
East | 444 | 487 | 600 | (8.8 | )% | (18.8 | )% | |||||||||||
Southeast | 644 | 596 | 533 | 8.1 | % | 11.8 | % | |||||||||||
Total | 1,916 | 2,038 | 1,690 | (6.0 | )% | 20.6 | % | |||||||||||
Aggregate dollar value of homes in backlog (in millions) | $ | 652.7 | $ | 667.7 | $ | 515.9 | (2.2 | )% | 29.4 | % | ||||||||
ASP in backlog (in thousands) | $ | 340.6 | $ | 327.6 | $ | 305.3 | 4.0 | % | 7.3 | % |
Homebuilding Revenue | Average Selling Price | ||||||||||||||||||||||||||||||||||
(In thousands) | 2016 | 2015 | 2014 | 16 v 15 | 15 v 14 | 2016 | 2015 | 2014 | 16 v 15 | 15 v 14 | |||||||||||||||||||||||||
West | $ | 817,971 | $ | 584,202 | $ | 537,149 | 40.0 | % | 8.8 | % | $ | 326.1 | $ | 299.0 | $ | 269.1 | 9.1 | % | 11.1 | % | |||||||||||||||
East | 505,198 | 549,484 | 525,439 | (8.1 | )% | 4.6 | % | 368.0 | 355.4 | 328.4 | 3.5 | % | 8.2 | % | |||||||||||||||||||||
Southeast | 461,608 | 436,941 | 347,292 | 5.6 | % | 25.8 | % | 300.1 | 289.4 | 256.3 | 3.7 | % | 12.9 | % | |||||||||||||||||||||
Total | $ | 1,784,777 | $ | 1,570,627 | $ | 1,409,880 | 13.6 | % | 11.4 | % | $ | 329.4 | $ | 313.5 | $ | 284.8 | 5.1 | % | 10.1 | % |
Closings | ||||||||||||||
2016 | 2015 | 2014 | 16 v 15 | 15 v 14 | ||||||||||
West | 2,508 | 1,954 | 1,996 | 28.4 | % | (2.1 | )% | |||||||
East | 1,373 | 1,546 | 1,600 | (11.2 | )% | (3.4 | )% | |||||||
Southeast | 1,538 | 1,510 | 1,355 | 1.9 | % | 11.4 | % | |||||||
Total | 5,419 | 5,010 | 4,951 | 8.2 | % | 1.2 | % |
($ in thousands) | Fiscal Year Ended September 30, 2016 | |||||||||||||||||||||||||||
HB Gross Profit (Loss) | HB Gross Margin | Impairments & Abandonments (I&A) | HB Gross Profit w/o (a) I&A | HB Gross Margin w/o I&A | Interest Amortized to HB COS | HB Gross Profit w/o I&A and Interest | HB Gross Margin w/o I&A and Interest | |||||||||||||||||||||
West | $ | 169,603 | 20.7 | % | $ | 6,729 | $ | 176,332 | 21.6 | % | $ | — | $ | 176,332 | 21.6 | % | ||||||||||||
East | 89,572 | 17.7 | % | 5,894 | 95,466 | 18.9 | % | — | 95,466 | 18.9 | % | |||||||||||||||||
Southeast | 92,573 | 20.1 | % | 788 | 93,361 | 20.2 | % | — | 93,361 | 20.2 | % | |||||||||||||||||
Corporate & unallocated | (57,888 | ) | 1,101 | (56,787 | ) | 77,941 | 21,154 | |||||||||||||||||||||
Total homebuilding | $ | 293,860 | 16.5 | % | $ | 14,512 | $ | 308,372 | 17.3 | % | $ | 77,941 | $ | 386,313 | 21.6 | % | ||||||||||||
Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries) | (3,612 | ) | (3,612 | ) | ||||||||||||||||||||||||
Additional insurance recoveries from third-party insurer | (15,500 | ) | (15,500 | ) | ||||||||||||||||||||||||
Adjusted homebuilding | 274,748 | 15.4 | % | 367,201 | 20.6 | % | ||||||||||||||||||||||
($ in thousands) | Fiscal Year Ended September 30, 2015 | |||||||||||||||||||||||||||
HB Gross Profit (Loss) | HB Gross Margin | Impairments & Abandonments (I&A) | HB Gross Profit w/o I&A | HB Gross Margin w/o I&A | Interest Amortized to HB COS | HB Gross Profit w/o I&A and Interest | HB Gross Margin w/o I&A and Interest | |||||||||||||||||||||
West | $ | 121,264 | 20.8 | % | $ | — | $ | 121,264 | 20.8 | % | $ | — | $ | 121,264 | 20.8 | % | ||||||||||||
East | 104,451 | 19.0 | % | 1,676 | 106,127 | 19.3 | % | — | 106,127 | 19.3 | % | |||||||||||||||||
Southeast | 79,062 | 18.1 | % | — | 79,062 | 18.1 | % | — | 79,062 | 18.1 | % | |||||||||||||||||
Corporate & unallocated | (37,508 | ) | — | (37,508 | ) | 55,006 | 17,498 | |||||||||||||||||||||
Total homebuilding | $ | 267,269 | 17.0 | % | $ | 1,676 | $ | 268,945 | 17.1 | % | $ | 55,006 | $ | 323,951 | 20.6 | % | ||||||||||||
Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries) | 13,582 | 13,582 | ||||||||||||||||||||||||||
Adjusted homebuilding | 280,851 | 17.9 | % | 337,533 | 21.5 | % | ||||||||||||||||||||||
($ in thousands) | Fiscal Year Ended September 30, 2014 | |||||||||||||||||||||||||||
HB Gross Profit (Loss) | HB Gross Margin | Impairments & Abandonments (I&A) | HB Gross Profit w/o I&A | HB Gross Margin w/o I&A | Interest Amortized to HB COS | HB Gross Profit w/o I&A and Interest | HB Gross Margin w/o I&A and Interest | |||||||||||||||||||||
West | $ | 120,048 | 22.3 | % | $ | 4,948 | $ | 124,996 | 23.3 | % | $ | — | $ | 124,996 | 23.3 | % | ||||||||||||
East | 99,400 | 18.9 | % | 463 | 99,863 | 19.0 | % | — | 99,863 | 19.0 | % | |||||||||||||||||
Southeast | 66,743 | 19.2 | % | 2,523 | 69,266 | 19.9 | % | — | 69,266 | 19.9 | % | |||||||||||||||||
Corporate & unallocated | (25,445 | ) | 373 | (25,072 | ) | 39,255 | 14,183 | |||||||||||||||||||||
Total homebuilding | $ | 260,746 | 18.5 | % | $ | 8,307 | $ | 269,053 | 19.1 | % | $ | 39,255 | $ | 308,308 | 21.9 | % | ||||||||||||
Unexpected warranty costs related to Florida stucco issues | $ | 4,290 | $ | 4,290 | ||||||||||||||||||||||||
Unexpected warranty costs related to water intrusion issues in New Jersey | $ | 648 | $ | 648 | ||||||||||||||||||||||||
Adjusted homebuilding | $ | 265,684 | 18.8 | % | $ | 313,246 | 22.2 | % |
Homebuilding Gross Margin from previously impaired communities: | ||
Pre-impairment turn gross margin | (7.0 | )% |
Impact of interest amortized to COS related to these communities | 5.2 | % |
Pre-impairment turn gross margin, excluding interest amortization | (1.8 | )% |
Impact of impairment turns | 12.9 | % |
Gross margin (post impairment turns), excluding interest amortization | 11.1 | % |
(In thousands) | Land Sales and Other Revenues | ||||||||||||||||
2016 | 2015 | 2014 | 16 v 15 | 15 v 14 | |||||||||||||
West | $ | 9,936 | $ | 23,313 | $ | 19,592 | (57.4 | )% | 19.0 | % | |||||||
East | 21,751 | 27,076 | 26,643 | (19.7 | )% | 1.6 | % | ||||||||||
Southeast | 5,650 | 6,397 | 7,652 | (11.7 | )% | (16.4 | )% | ||||||||||
Total | $ | 37,337 | $ | 56,786 | $ | 53,887 | (34.2 | )% | 5.4 | % | |||||||
(In thousands) | Land Sales and Other Gross Profit (Loss) | ||||||||||||||||
2016 | 2015 | 2014 | 16 v 15 | 15 v 14 | |||||||||||||
West | $ | 2,921 | $ | 5,399 | $ | 2,209 | (45.9 | )% | 144.4 | % | |||||||
East | 678 | 732 | 1,716 | (7.4 | )% | (57.3 | )% | ||||||||||
Southeast | 598 | 847 | 829 | (29.4 | )% | 2.2 | % | ||||||||||
Corporate and unallocated (a) | (850 | ) | (1,803 | ) | (2,041 | ) | n/m | n/m | |||||||||
Total | $ | 3,347 | $ | 5,175 | $ | 2,713 | (35.3 | )% | 90.7 | % |
Fiscal Year Ended September 30, | |||||||||||||||||||
(In thousands) | 2016 | 2015 | 2014 | 16 v 15 | 15 v 14 | ||||||||||||||
West | $ | 99,835 | $ | 67,236 | $ | 65,442 | $ | 32,599 | $ | 1,794 | |||||||||
East | 42,205 | 52,516 | 48,127 | (10,311 | ) | 4,389 | |||||||||||||
Southeast (a) | 49,250 | 37,114 | 31,854 | 12,136 | 5,260 | ||||||||||||||
Corporate and unallocated (b) | (131,965 | ) | (105,279 | ) | (89,734 | ) | (26,686 | ) | (15,545 | ) | |||||||||
Operating Income | $ | 59,325 | $ | 51,587 | $ | 55,689 | $ | 7,738 | $ | (4,102 | ) |
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Cash provided by (used in) operating activities | $ | 163,025 | $ | (81,049 | ) | $ | (160,469 | ) | |||
Cash provided by (used in) investing activities | 11,802 | 27,377 | (32,031 | ) | |||||||
Cash (used in) provided by financing activities | (197,539 | ) | (18,899 | ) | 12,195 | ||||||
Net decrease in cash and cash equivalents | $ | (22,712 | ) | $ | (72,571 | ) | $ | (180,305 | ) |
• | $228.9 million in cash and cash equivalents; |
• | $106.8 million of remaining capacity under the Facility (due to the use of the Facility to secure $38.2 million in letters of credit; however, as discussed below, subsequent to September 30, 2016, we further increased the capacity of the Facility by $35 million); and |
• | $14.4 million of restricted cash. |
Payments Due by Period | ||||||||||||||||||||
(In thousands) | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
Senior notes, term loan, junior subordinated notes and other secured notes payable | $ | 1,386,813 | $ | 25,692 | $ | 362,511 | $ | 198,003 | $ | 800,607 | ||||||||||
Interest commitments under senior notes, term loan, junior subordinated notes and other secured notes payable (b) | 543,226 | 99,729 | 186,977 | 153,586 | 102,934 | |||||||||||||||
Obligations related to lots under option | 446,414 | 207,375 | 201,397 | 25,314 | 12,328 | |||||||||||||||
Operating leases | 12,652 | 3,982 | 5,578 | 2,688 | 404 | |||||||||||||||
Uncertain tax positions (c) | — | — | — | — | — | |||||||||||||||
Total | $ | 2,389,105 | $ | 336,778 | $ | 756,463 | $ | 379,591 | $ | 916,273 |
September 30, 2016 | September 30, 2015 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 228,871 | $ | 251,583 | |||
Restricted cash | 14,405 | 38,901 | |||||
Accounts receivable (net of allowance of $354 and $1,052, respectively) | 53,226 | 52,379 | |||||
Income tax receivable | 292 | 419 | |||||
Owned inventory | 1,569,279 | 1,697,590 | |||||
Investments in unconsolidated entities | 10,470 | 13,734 | |||||
Deferred tax assets, net | 309,955 | 325,373 | |||||
Property and equipment, net | 19,138 | 22,230 | |||||
Other assets | 7,522 | 7,086 | |||||
Total assets | $ | 2,213,158 | $ | 2,409,295 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Trade accounts payable | $ | 104,174 | $ | 113,539 | |||
Other liabilities | 134,253 | 148,966 | |||||
Total debt (net of premium and discount of $2,362 and $3,639, respectively, and debt issuance costs of $15,514 and $11,908, respectively) | 1,331,878 | 1,516,367 | |||||
Total liabilities | 1,570,305 | 1,778,872 | |||||
Stockholders’ equity: | |||||||
Preferred stock (par value $.01 per share, 5,000,000 shares authorized, no shares issued) | — | — | |||||
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 33,071,331 issued and outstanding and 32,660,583 issued and outstanding, respectively) | 33 | 33 | |||||
Paid-in capital | 865,290 | 857,553 | |||||
Accumulated deficit | (222,470 | ) | (227,163 | ) | |||
Total stockholders’ equity | 642,853 | 630,423 | |||||
Total liabilities and stockholders’ equity | $ | 2,213,158 | $ | 2,409,295 |
Fiscal Year Ended September 30, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Total revenue | $ | 1,822,114 | $ | 1,627,413 | $ | 1,463,767 | ||||||
Home construction and land sales expenses | 1,509,625 | 1,351,860 | 1,192,001 | |||||||||
Inventory impairments and abandonments | 15,282 | 3,109 | 8,307 | |||||||||
Gross profit | 297,207 | 272,444 | 263,459 | |||||||||
Commissions | 70,460 | 65,023 | 58,028 | |||||||||
General and administrative expenses | 153,628 | 142,496 | 136,463 | |||||||||
Depreciation and amortization | 13,794 | 13,338 | 13,279 | |||||||||
Operating income | 59,325 | 51,587 | 55,689 | |||||||||
Equity in income of unconsolidated entities | 131 | 536 | 6,545 | |||||||||
Loss on extinguishment of debt | (13,423 | ) | (80 | ) | (19,917 | ) | ||||||
Other expense, net | (24,330 | ) | (30,013 | ) | (49,191 | ) | ||||||
Income (loss) from continuing operations before income taxes | 21,703 | 22,030 | (6,874 | ) | ||||||||
Expense (benefit) from income taxes | 16,498 | (324,569 | ) | (41,797 | ) | |||||||
Income from continuing operations | 5,205 | 346,599 | 34,923 | |||||||||
Loss from discontinued operations, net of tax | (512 | ) | (2,505 | ) | (540 | ) | ||||||
Net income | $ | 4,693 | $ | 344,094 | $ | 34,383 | ||||||
Weighted average number of shares: | ||||||||||||
Basic | 31,798 | 27,628 | 25,795 | |||||||||
Diluted | 31,803 | 31,772 | 31,795 | |||||||||
Basic income (loss) per share: | ||||||||||||
Continuing operations | $ | 0.16 | $ | 12.54 | $ | 1.35 | ||||||
Discontinued operations | $ | (0.01 | ) | $ | (0.09 | ) | $ | (0.02 | ) | |||
Total | $ | 0.15 | $ | 12.45 | $ | 1.33 | ||||||
Diluted income (loss) per share: | ||||||||||||
Continuing operations | $ | 0.16 | $ | 10.91 | $ | 1.10 | ||||||
Discontinued operations | $ | (0.01 | ) | $ | (0.08 | ) | $ | (0.02 | ) | |||
Total | $ | 0.15 | $ | 10.83 | $ | 1.08 | ||||||
Consolidated Statement of Comprehensive Income | ||||||||||||
Net income | $ | 4,693 | $ | 344,094 | $ | 34,383 | ||||||
Other comprehensive income (loss), net of income tax: | ||||||||||||
Change in unrealized loss related to available-for-sale securities | — | 1,276 | (1,276 | ) | ||||||||
Comprehensive income | $ | 4,693 | $ | 345,370 | $ | 33,107 |
Common Stock | Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Shares | Amount | Total | ||||||||||||||||||||
Balance as of September 30, 2013 | 25,246 | $ | 25 | $ | 846,165 | $ | (605,640 | ) | $ | — | $ | 240,550 | ||||||||||
Net income | — | — | — | 34,383 | — | 34,383 | ||||||||||||||||
Change in unrealized loss related to available-for-sale securities | — | — | — | — | (1,276 | ) | (1,276 | ) | ||||||||||||||
Total comprehensive income | — | — | — | — | — | 33,107 | ||||||||||||||||
Conversion of TEU (debt to stock conversion) | 1,368 | 2 | 2,482 | — | — | 2,484 | ||||||||||||||||
Amortization of nonvested stock awards | — | — | 2,587 | — | — | 2,587 | ||||||||||||||||
Exercises of stock options | 3 | — | 39 | — | 39 | |||||||||||||||||
Tax excess from stock transactions | — | — | 698 | — | — | 698 | ||||||||||||||||
Shares issued under employee stock plans, net | 596 | — | 103 | — | 103 | |||||||||||||||||
Forfeiture of restricted stock | (16 | ) | — | — | — | — | — | |||||||||||||||
Common stock redeemed | (24 | ) | — | (450 | ) | — | — | (450 | ) | |||||||||||||
Balance as of September 30, 2014 | 27,173 | $ | 27 | $ | 851,624 | $ | (571,257 | ) | $ | (1,276 | ) | $ | 279,118 | |||||||||
Net income | — | — | — | 344,094 | — | 344,094 | ||||||||||||||||
Change in unrealized loss related to available-for-sale securities | — | — | — | — | 1,276 | 1,276 | ||||||||||||||||
Total comprehensive income | — | — | — | — | — | 345,370 | ||||||||||||||||
Conversion of TEU (debt to stock conversion) | 5,222 | 5 | (4 | ) | — | — | 1 | |||||||||||||||
Amortization of nonvested stock awards | — | — | 6,135 | — | — | 6,135 | ||||||||||||||||
Exercises of stock options | 1 | — | 14 | — | 14 | |||||||||||||||||
Tax deficiency from stock transactions | — | — | (22 | ) | — | — | (22 | ) | ||||||||||||||
Shares issued under employee stock plans, net | 410 | — | — | — | — | — | ||||||||||||||||
Forfeiture of restricted stock | (135 | ) | — | — | — | — | — | |||||||||||||||
Common stock redeemed | (10 | ) | — | (192 | ) | — | — | (192 | ) | |||||||||||||
Other activity | — | 1 | (2 | ) | — | — | (1 | ) | ||||||||||||||
Balance as of September 30, 2015 | 32,661 | $ | 33 | $ | 857,553 | $ | (227,163 | ) | $ | — | $ | 630,423 | ||||||||||
Net income and comprehensive income | — | — | — | 4,693 | — | 4,693 | ||||||||||||||||
Amortization of nonvested stock awards | — | — | 7,959 | — | — | 7,959 | ||||||||||||||||
Shares issued under employee stock plans, net | 491 | — | — | — | — | — | ||||||||||||||||
Forfeiture of restricted stock | (64 | ) | — | — | — | — | — | |||||||||||||||
Common stock redeemed | (17 | ) | — | (222 | ) | — | — | (222 | ) | |||||||||||||
Balance as of September 30, 2016 | 33,071 | $ | 33 | $ | 865,290 | $ | (222,470 | ) | $ | — | $ | 642,853 |
Fiscal Year Ended September 30, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 4,693 | $ | 344,094 | $ | 34,383 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 13,794 | 13,338 | 13,279 | ||||||||
Stock-based compensation expense | 7,959 | 6,135 | 2,587 | ||||||||
Inventory impairments and abandonments | 15,282 | 3,109 | 8,307 | ||||||||
Deferred and other income tax expense (benefit) | 15,903 | (326,360 | ) | (12,590 | ) | ||||||
Gain on sale of fixed assets | (957 | ) | — | — | |||||||
Change in allowance for doubtful accounts | (698 | ) | (193 | ) | (406 | ) | |||||
Equity in (income) loss of unconsolidated entities and marketable securities | (143 | ) | 1,294 | (6,545 | ) | ||||||
Cash distributions of income from unconsolidated entities | 165 | 224 | 566 | ||||||||
Non-cash loss on extinguishment of debt | 4,978 | — | 2,670 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Increase in accounts receivable | (149 | ) | (17,757 | ) | (11,681 | ) | |||||
Decrease (increase) in income tax receivable | 127 | (373 | ) | 2,767 | |||||||
Decrease (increase) in inventory | 129,028 | (121,700 | ) | (230,138 | ) | ||||||
(Increase) decrease in other assets | (471 | ) | (165 | ) | 1,292 | ||||||
(Decrease) increase in trade accounts payable | (9,365 | ) | 7,302 | 22,437 | |||||||
(Decrease) increase in other liabilities | (17,121 | ) | 10,260 | 13,002 | |||||||
Other changes | — | (257 | ) | (399 | ) | ||||||
Net cash provided by (used in) operating activities | 163,025 | (81,049 | ) | (160,469 | ) | ||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (12,219 | ) | (15,964 | ) | (14,553 | ) | |||||
Proceeds from sale of fixed assets | 2,624 | — | — | ||||||||
Investments in unconsolidated entities | (4,241 | ) | (4,944 | ) | (5,218 | ) | |||||
Return of capital from unconsolidated entities and marketable securities | 1,142 | 24,245 | 1,703 | ||||||||
Increases in restricted cash | (5,852 | ) | (5,546 | ) | (15,608 | ) | |||||
Decreases in restricted cash | 30,348 | 29,586 | 1,645 | ||||||||
Net cash provided by (used in) investing activities | 11,802 | 27,377 | (32,031 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Repayment of debt | (828,221 | ) | (18,573 | ) | (307,602 | ) | |||||
Proceeds from issuance of new debt | 642,150 | — | 325,000 | ||||||||
Repayment of borrowings from credit facility | (90,000 | ) | (75,000 | ) | — | ||||||
Borrowings from credit facility | 90,000 | 75,000 | — | ||||||||
Debt issuance costs | (11,246 | ) | (126 | ) | (5,490 | ) | |||||
Other changes | (222 | ) | (200 | ) | 287 | ||||||
Net cash (used in) provided by financing activities | (197,539 | ) | (18,899 | ) | 12,195 | ||||||
Decrease in cash and cash equivalents | (22,712 | ) | (72,571 | ) | (180,305 | ) | |||||
Cash and cash equivalents at beginning of period | 251,583 | 324,154 | 504,459 | ||||||||
Cash and cash equivalents at end of period | $ | 228,871 | $ | 251,583 | $ | 324,154 |
Asset Class | Useful Lives | |
Buildings | 25 - 30 years | |
Building improvements | Lesser of estimated useful life of the improvements or remaining useful life of the building | |
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 |
(In thousands) | September 30, 2015 | |||||||||||
As initially reported | Change for adoption | As re-casted | ||||||||||
Consolidated Balance Sheets: | ||||||||||||
Other assets | $ | 18,994 | $ | (11,908 | ) | $ | 7,086 | |||||
Total assets | 2,421,203 | (11,908 | ) | 2,409,295 | ||||||||
Total debt | 1,528,275 | (11,908 | ) | 1,516,367 | ||||||||
Total liabilities | 1,790,780 | (11,908 | ) | 1,778,872 | ||||||||
Total liabilities and stockholders’ equity | 2,421,203 | (11,908 | ) | 2,409,295 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Supplemental disclosure of non-cash activity: | |||||||||||
Decrease in obligations related to land not owned under option agreements | $ | — | $ | (2,916 | ) | $ | (1,717 | ) | |||
Decrease in debt related to conversion of Mandatory Convertible Subordinated Notes and Tangible Equity Units for common stock | — | — | (2,376 | ) | |||||||
Sale of interest in REIT for shares of AMH | — | — | 26,040 | ||||||||
Purchase of AMH shares in exchange for interest in REIT | — | — | (26,040 | ) | |||||||
Non-cash land acquisitions (a) | 8,265 | 12,904 | 20,274 | ||||||||
Issuance of stock under deferred bonus stock plans | — | — | 103 | ||||||||
Non-cash capital expenditure | — | 674 | — | ||||||||
Supplemental disclosure of cash activity: | |||||||||||
Interest payments (b) | 131,730 | 117,177 | 117,501 | ||||||||
Income tax payments | 1,420 | 942 | 212 | ||||||||
Tax refunds received | 201 | — | 33,271 |
(In thousands) | September 30, 2016 | September 30, 2015 | |||||
Beazer’s investment in unconsolidated entities | $ | 10,470 | $ | 13,734 | |||
Total equity of unconsolidated entities | 31,615 | 52,118 | |||||
Total outstanding borrowings of unconsolidated entities | 14,702 | 12,206 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Income from unconsolidated entity activity | $ | 131 | $ | 536 | $ | 6,545 |
(In thousands) | September 30, 2016 | September 30, 2015 | |||||
Homes under construction | $ | 377,191 | $ | 377,281 | |||
Development projects in progress | 742,417 | 809,900 | |||||
Land held for future development | 213,006 | 270,990 | |||||
Land held for sale | 29,696 | 44,555 | |||||
Capitalized interest | 138,108 | 123,457 | |||||
Model homes | 68,861 | 71,407 | |||||
Total owned inventory | $ | 1,569,279 | $ | 1,697,590 |
(In thousands) | Projects in Progress (a) | Land Held for Future Development | Land Held for Sale | Total Owned Inventory | |||||||||||
September 30, 2016 | |||||||||||||||
West Segment | $ | 586,420 | $ | 172,015 | $ | 6,577 | $ | 765,012 | |||||||
East Segment | 276,785 | 30,036 | 20,930 | 327,751 | |||||||||||
Southeast Segment | 276,385 | 10,955 | 1,090 | 288,430 | |||||||||||
Corporate and unallocated (b) | 186,987 | — | 1,099 | 188,086 | |||||||||||
Total | $ | 1,326,577 | $ | 213,006 | $ | 29,696 | $ | 1,569,279 | |||||||
September 30, 2015 | |||||||||||||||
West Segment | $ | 583,210 | $ | 230,778 | $ | 6,941 | $ | 820,929 | |||||||
East Segment | 353,054 | 29,280 | 30,927 | 413,261 | |||||||||||
Southeast Segment | 277,351 | 10,932 | 5,587 | 293,870 | |||||||||||
Corporate and unallocated (b) | 168,430 | — | 1,100 | 169,530 | |||||||||||
Total | $ | 1,382,045 | $ | 270,990 | $ | 44,555 | $ | 1,697,590 |
($ in thousands) | Undiscounted Cash Flow Analyses Prepared | |||||||||||
Segment (a) | Number of Communities on Watch List (b) | Number of Communities (c) | Pre-analysis Book Value (BV) | Aggregate Undiscounted Cash Flow as a % of BV (d) | ||||||||
Year Ended September 30, 2016 | ||||||||||||
West | 9 | 6 | $ | 75,028 | 114.0 | % | ||||||
East | 4 | 1 | 22,469 | 88.5 | % | |||||||
Southeast | 1 | — | — | — | % | |||||||
Corporate and unallocated (e) | — | — | 3,899 | N/A (f) | ||||||||
Total | 14 | 7 | $ | 101,396 | ||||||||
Year Ended September 30, 2014 | ||||||||||||
West | 5 | 3 | $ | 25,191 | 90.9 | % | ||||||
East (g) | 1 | — | — | — | % | |||||||
Southeast | 2 | 1 | 7,479 | 120.2 | % | |||||||
Corporate and unallocated (e) | — | — | 2,558 | N/A | ||||||||
Total | 8 | 4 | $ | 35,228 |
($ in thousands) | Results of Discounted Cash Flow Analyses Prepared | ||||||||||||
Segment | # of Communities Impaired | # of Lots Impaired | Impairment Charge | Estimated Fair Value of Impaired Inventory at time of Impairment | |||||||||
Year Ended September 30, 2016 | |||||||||||||
West | 2 | 213 | $ | 6,729 | $ | 16,345 | |||||||
East | 1 | 78 | 5,894 | 18,073 | |||||||||
Corporate and unallocated (a) | — | — | 1,101 | — | |||||||||
Total | 3 | 291 | $ | 13,724 | $ | 34,418 | |||||||
Year Ended September 30, 2014 | |||||||||||||
West | 2 | 180 | $ | 4,948 | $ | 14,379 | |||||||
Corporate and unallocated (a) | — | — | 373 | — | |||||||||
Total | 2 | 180 | $ | 5,321 | $ | 14,379 |
Fiscal Year Ended September 30, | |||||
Unobservable Inputs | 2016 | 2014 | |||
Average selling price (in thousands) (a) | $355 - $560 | $260 - $280 | |||
Closings per community per month | 2 - 4 | 1 - 4 | |||
Discount rate | 14.15% - 15.33% | 14.97 | % |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Projects in Progress: | |||||||||||
West | $ | 6,729 | $ | — | $ | 4,948 | |||||
East | 5,894 | — | 100 | ||||||||
Corporate and unallocated | 1,101 | — | 373 | ||||||||
Total impairment charges on projects in progress | $ | 13,724 | $ | — | $ | 5,421 | |||||
Land Held for Sale: | |||||||||||
West | $ | 119 | $ | — | $ | — | |||||
East | $ | 280 | $ | 1,433 | $ | 232 | |||||
Southeast | 371 | — | 28 | ||||||||
Total impairment charges on land held for sale | $ | 770 | $ | 1,433 | $ | 260 | |||||
Abandonments: | |||||||||||
East | $ | — | $ | 1,676 | $ | 131 | |||||
Southeast | 788 | — | 2,495 | ||||||||
Total abandonments charges | $ | 788 | $ | 1,676 | $ | 2,626 | |||||
Total impairment and abandonment charges | $ | 15,282 | $ | 3,109 | $ | 8,307 |
(In thousands) | Deposits & Non-refundable Preacquisition Costs Incurred | Remaining Obligation | |||||
As of September 30, 2016 | |||||||
Unconsolidated lot option agreements | $ | 80,433 | $ | 446,414 | |||
As of September 30, 2015 | |||||||
Unconsolidated lot option agreements | $ | 51,475 | $ | 420,070 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Capitalized interest in inventory, beginning of period | $ | 123,457 | $ | 87,619 | $ | 52,562 | |||||
Interest incurred | 119,360 | 121,754 | 126,906 | ||||||||
Capitalized interest impaired | (710 | ) | — | (245 | ) | ||||||
Interest expense not qualified for capitalization and included as other expense (a) | (25,388 | ) | (29,752 | ) | (50,784 | ) | |||||
Capitalized interest amortized to home construction and land sales expenses (b) | (78,611 | ) | (56,164 | ) | (40,820 | ) | |||||
Capitalized interest in inventory, end of period | $ | 138,108 | $ | 123,457 | $ | 87,619 |
(In thousands) | September 30, 2016 | September 30, 2015 | |||||
Model furnishings and sales office improvements | $ | 28,036 | $ | 25,111 | |||
Information systems | 14,326 | 14,290 | |||||
Furniture, fixtures and office equipment | 12,247 | 11,864 | |||||
Leasehold improvements | 4,069 | 5,022 | |||||
Buildings and improvements | — | 2,329 | |||||
Property and equipment, gross | 58,678 | 58,616 | |||||
Less: Accumulated Depreciation | (39,540 | ) | (36,386 | ) | |||
Property and equipment, net | $ | 19,138 | $ | 22,230 |
(In thousands) | Maturity Date | September 30, 2016 | September 30, 2015 | ||||||
8 1/8% Senior Notes | June 2016 | $ | — | $ | 170,879 | ||||
6 5/8% Senior Secured Notes | April 2018 | — | 300,000 | ||||||
9 1/8% Senior Notes | May 2019 | — | 235,000 | ||||||
5 3/4% Senior Notes | June 2019 | 321,393 | 325,000 | ||||||
7 1/2% Senior Notes | September 2021 | 198,000 | 200,000 | ||||||
8 3/4% Senior Notes | March 2022 | 500,000 | — | ||||||
7 1/4% Senior Notes | February 2023 | 199,834 | 200,000 | ||||||
Unamortized debt net premium (discount) | 2,362 | (3,639 | ) | ||||||
Unamortized debt issuance costs | (14,063 | ) | (11,908 | ) | |||||
Total Senior Notes, net | 1,207,526 | 1,415,332 | |||||||
Term Loan (net of unamortized discount of $880 and unamortized debt issuance costs of $1,451) | March 2018 | 52,669 | — | ||||||
Junior Subordinated Notes (net of unamortized accretion of $40,903 and $42,970, respectively) | July 2036 | 59,870 | 57,803 | ||||||
Cash Secured Loans | November 2017 | — | 22,368 | ||||||
Other Secured Notes Payable | Various Dates | 11,813 | 20,864 | ||||||
Total debt, net | $ | 1,331,878 | $ | 1,516,367 |
Fiscal Year Ended September 30, | |||
(In thousands) | |||
2017 | $ | 25,692 | |
2018 | 35,160 | ||
2019 | 327,351 | ||
2020 | 3 | ||
2021 | 198,000 | ||
Thereafter | 800,607 | ||
Total | $ | 1,386,813 |
Senior Note Description | Issuance Date | Maturity Date | Redemption Terms | |||
5 3/4% Senior Notes | April 2014 | June 2019 | Callable at any time before March 15, 2019, in whole or in part, at a redemption price equal to 100% of the principal amount, plus a customary make-whole premium | |||
7 1/2% Senior Notes | September 2013 | September 2021 | Callable at a redemption price equal to 105.625% of the principal amount; after September 15, 2017, callable at a redemption price equal to 103.75% of the principal amount; after September 15, 2018, callable at a redemption price equal to 101.875% of the principal amount; after September 15, 2019, callable at 100% of the principal amount plus accrued and unpaid interest | |||
8 3/4% Senior Notes | September 2016 | March 2022 | Callable at any time prior to March 15, 2019, in whole or in part, at a redemption price equal to 100% of the principal amount, plus a customary make-whole premium; after March 15, 2019, callable at a redemption price equal to 104.375% of the principal amount; after March 15, 2020, callable at a redemption price equal to 102.188% of the principal amount; after September 15, 2021, callable at a redemption price equal to 100% of the principal amount | |||
7 1/4% Senior Notes | February 2013 | February 2023 | Callable at any time prior to February 1, 2018, in whole or in part, at a redemption price equal to 100% of the principal amount, plus a customary make-whole premium; after February 1, 2018, callable at a redemption price equal to 103.625% of the principal amount; after February 1, 2019, callable at a redemption price equal to 102.41% of the principal amount; after February 1, 2020, callable at a redemption price equal to 101.208% of the principal amount; after February 1, 2021, callable at 100% of the principal amount plus accrued and unpaid interest |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Balance at beginning of period | $ | 27,681 | $ | 16,084 | $ | 11,663 | |||||
Accruals for warranties issued (a) | 13,835 | 10,356 | 6,087 | ||||||||
Changes in liability related to warranties existing in prior periods (b) | 53,109 | 30,482 | 9,836 | ||||||||
Payments made (b) | (55,494 | ) | (29,241 | ) | (11,502 | ) | |||||
Balance at end of period | $ | 39,131 | $ | 27,681 | $ | 16,084 |
• | 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. |
(In thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Year Ended September 30, 2016 | |||||||||||||||
Deferred compensation plan assets (a) | $ | — | $ | 765 | $ | — | $ | 765 | |||||||
Development projects in progress (b) | — | — | 34,418 | (c) | 34,418 | ||||||||||
Land held for sale (b) | — | — | 19,973 | (d) | 19,973 | ||||||||||
Year Ended September 30, 2015 | |||||||||||||||
Deferred compensation plan assets (a) | — | 669 | — | 669 | |||||||||||
Land held for sale (b) | — | — | 8,814 | (d) | 8,814 | ||||||||||
Year Ended September 30, 2014 | |||||||||||||||
Available-for-sale marketable equity securities (a) | 24,765 | — | — | 24,765 | |||||||||||
Deferred compensation plan assets (a) | — | 517 | — | 517 | |||||||||||
Development projects in progress (b) | — | — | 14,379 | (c) | 14,379 | ||||||||||
Land held for sale (b) | — | — | 4,117 | (d) | 4,117 |
As of September 30, 2016 | As of September 30, 2015 | ||||||||||||||
(In thousands) | Carrying Amount (a) | Fair Value | Carrying Amount (a) | Fair Value | |||||||||||
Senior Notes (b) | $ | 1,207,526 | $ | 1,253,614 | $ | 1,415,332 | $ | 1,412,173 | |||||||
Term Loan | 52,669 | 52,669 | — | — | |||||||||||
Junior Subordinated Notes | 59,870 | 59,870 | 57,803 | 57,803 | |||||||||||
$ | 1,320,065 | $ | 1,366,153 | $ | 1,473,135 | $ | 1,469,976 |
Fiscal Year Ended September 30, | |||
(In thousands) | |||
2017 | $ | 3,982 | |
2018 | 3,177 | ||
2019 | 2,401 | ||
2020 | 1,616 | ||
2021 | 1,072 | ||
Thereafter | 404 | ||
Total | $ | 12,652 |
(In thousands) | September 30, 2016 | September 30, 2015 | |||||
Accrued warranty expenses | $ | 39,131 | $ | 27,681 | |||
Accrued bonus and deferred compensation | 30,466 | 25,076 | |||||
Customer deposits | 12,140 | 13,757 | |||||
Accrued interest | 11,530 | 31,632 | |||||
Litigation accrual | 10,178 | 12,607 | |||||
Income tax liabilities | 1,718 | 1,998 | |||||
Other | 29,090 | 36,215 | |||||
Total | $ | 134,253 | $ | 148,966 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Current federal | $ | — | $ | (64 | ) | $ | (44,789 | ) | |||
Current state | 595 | 520 | 322 | ||||||||
Deferred federal (a) | 5,574 | (314,651 | ) | 2,385 | |||||||
Deferred state (a) (b) | 10,329 | (10,374 | ) | 285 | |||||||
Total | $ | 16,498 | $ | (324,569 | ) | $ | (41,797 | ) |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Income tax computed at statutory rate | $ | 7,596 | $ | 7,711 | $ | (2,406 | ) | ||||
State income taxes, net of federal benefit | 4,974 | 2,485 | (172 | ) | |||||||
Decrease in valuation allowance - IRS Settlement | — | — | (26,846 | ) | |||||||
Increase (decrease) in valuation allowance - other (a) (b) | 6,457 | (334,605 | ) | 3,023 | |||||||
Changes for uncertain tax positions | (40 | ) | 42 | (14,276 | ) | ||||||
IRS interest refund | — | — | (1,714 | ) | |||||||
State rate change | (678 | ) | — | — | |||||||
Tax credits | (2,134 | ) | — | — | |||||||
Other, net | 323 | (202 | ) | 594 | |||||||
Total | $ | 16,498 | $ | (324,569 | ) | $ | (41,797 | ) |
(In thousands) | September 30, 2016 | September 30, 2015 | |||||
Deferred tax assets: | |||||||
Federal and state tax carryforwards | $ | 298,426 | $ | 292,346 | |||
Inventory adjustments | 62,985 | 87,335 | |||||
Warranty and other reserves | 16,943 | 14,913 | |||||
Incentive compensation | 15,390 | 10,780 | |||||
Property, equipment and other assets | 2,896 | 2,866 | |||||
Uncertain tax positions | 1,721 | 1,917 | |||||
Other | 809 | 3,814 | |||||
Total deferred tax assets | 399,170 | 413,971 | |||||
Deferred tax liabilities: | |||||||
Deferred revenues | (22,950 | ) | (30,939 | ) | |||
Total deferred tax liabilities | (22,950 | ) | (30,939 | ) | |||
Net deferred tax assets before valuation allowance | 376,220 | 383,032 | |||||
Valuation allowance (a) | (66,265 | ) | (57,659 | ) | |||
Net deferred tax assets | $ | 309,955 | $ | 325,373 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Balance at beginning of year | $ | 4,721 | $ | 4,616 | $ | 17,464 | |||||
(Reductions in) additions for tax positions related to current year | (180 | ) | 251 | 150 | |||||||
Additions for tax positions related to prior years | — | — | 1,365 | ||||||||
Reductions in tax positions of prior years | — | (10 | ) | (14,201 | ) | ||||||
Lapse of statute of limitations | — | (136 | ) | (162 | ) | ||||||
Balance at end of year | $ | 4,541 | $ | 4,721 | $ | 4,616 |
Fiscal Year Ended September 30, | |||||||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||||
Stock options expense | $ | 534 | $ | 697 | $ | 833 | |||||||
Restricted stock awards expense | 7,425 | 5,408 | 1,741 | ||||||||||
Before tax stock-based compensation expense | 7,959 | 6,105 | 2,574 | ||||||||||
Tax benefit | (2,832 | ) | — | (a) | — | (a) | |||||||
After tax stock-based compensation expense | $ | 5,127 | $ | 6,105 | $ | 2,574 |
Fiscal Year Ended September 30, | ||||||||||
2016 | 2015 | 2014 | ||||||||
Expected life of options | 4.9 years | N/A(a) | 5.1 years | |||||||
Expected volatility | 46.49 | % | N/A | 45.99 | % | |||||
Expected dividends | — | N/A | — | |||||||
Weighted average risk-free interest rate | 1.36 | % | N/A | 1.42 | % | |||||
Weighted average fair value | $ | 4.03 | N/A | $ | 7.97 |
2016 | 2015 | 2014 | ||||||||||||||||||
Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | |||||||||||||||
Outstanding at beginning of period | 643,907 | $ | 18.13 | 650,223 | $ | 18.12 | 560,784 | $ | 33.01 | |||||||||||
Granted | 125,449 | 9.19 | — | — | 161,010 | 19.11 | ||||||||||||||
Exercised | — | — | (1,209 | ) | 12.07 | (2,788 | ) | 14.29 | ||||||||||||
Expired | (86,606 | ) | 19.70 | — | — | (55,811 | ) | 170.32 | ||||||||||||
Forfeited | (10,081 | ) | 10.98 | (5,107 | ) | 19.05 | (12,972 | ) | 19.85 | |||||||||||
Outstanding at end of period | 672,669 | $ | 16.49 | 643,907 | $ | 18.13 | 650,223 | $ | 18.12 | |||||||||||
Exercisable at end of period | 503,594 | $ | 17.76 | 491,029 | $ | 18.40 | 355,703 | $ | 19.74 | |||||||||||
Vested or expected to vest in the future | 672,669 | $ | 16.49 | 643,877 | $ | 18.13 | 649,773 | $ | 18.12 |
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 - $15 | 371,983 | 4.91 | $ | 11.55 | 253,381 | 3.71 | $ | 12.28 | ||||||||||
$16 - $20 | 158,263 | 4.99 | 19.08 | 107,790 | 4.94 | 19.07 | ||||||||||||
$21- $30 | 142,423 | 0.81 | 26.51 | 142,423 | 0.81 | 26.51 | ||||||||||||
$1- $30 | 672,669 | 4.06 | $ | 16.49 | 503,594 | 3.15 | $ | 17.76 |
Fiscal Year Ended September 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
Beginning of period | 956,283 | $ | 18.27 | 746,567 | $ | 15.76 | 280,416 | $ | 12.32 | |||||||||||
Granted (a) | 491,443 | 14.69 | 410,192 | 19.01 | 595,567 | 18.68 | ||||||||||||||
Vested (b) | (127,993 | ) | 18.58 | (64,719 | ) | 15.96 | (113,320 | ) | 22.55 | |||||||||||
Forfeited | (63,916 | ) | 10.62 | (135,757 | ) | 7.77 | (16,096 | ) | 15.93 | |||||||||||
End of period | 1,255,817 | $ | 17.23 | 956,283 | $ | 18.27 | 746,567 | $ | 15.76 |
Fiscal Year Ended September 30, | |||||||||
(in thousands) | 2016 | 2015 | 2014 | ||||||
Basic shares | 31,798 | 27,628 | 25,795 | ||||||
Shares issued upon conversion of TEUs (a) | N/A | (b) | 4,069 | 5,784 | |||||
Shares issuable upon vesting/exercise of stock awards/options | 5 | 75 | 216 | ||||||
Diluted shares | 31,803 | 31,772 | 31,795 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Revenue | |||||||||||
West | $ | 827,907 | $ | 607,515 | $ | 556,741 | |||||
East | 526,949 | 576,560 | 552,082 | ||||||||
Southeast | 467,258 | 443,338 | 354,944 | ||||||||
Total revenue | $ | 1,822,114 | $ | 1,627,413 | $ | 1,463,767 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Operating income | |||||||||||
West | $ | 99,835 | $ | 67,236 | $ | 65,442 | |||||
East | 42,205 | 52,516 | 48,127 | ||||||||
Southeast (a) | 49,250 | 37,114 | 31,854 | ||||||||
Segment total | 191,290 | 156,866 | 145,423 | ||||||||
Corporate and unallocated (b) | (131,965 | ) | (105,279 | ) | (89,734 | ) | |||||
Total operating income | $ | 59,325 | $ | 51,587 | $ | 55,689 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Depreciation and amortization | |||||||||||
West | $ | 6,086 | $ | 5,544 | $ | 5,722 | |||||
East | 3,173 | 3,091 | 3,447 | ||||||||
Southeast | 2,451 | 2,776 | 2,075 | ||||||||
Segment total | 11,710 | 11,411 | 11,244 | ||||||||
Corporate and unallocated (b) | 2,084 | 1,927 | 2,035 | ||||||||
Total depreciation and amortization | $ | 13,794 | $ | 13,338 | $ | 13,279 |
Fiscal Year Ended September 30, | |||||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||||
Capital Expenditures | |||||||||||
West | $ | 6,570 | $ | 7,348 | $ | 6,660 | |||||
East | 2,441 | 3,692 | 3,050 | ||||||||
Southeast | 2,747 | 3,379 | 2,979 | ||||||||
Corporate and unallocated (a) | 461 | 2,219 | 1,864 | ||||||||
Total capital expenditures | $ | 12,219 | $ | 16,638 | $ | 14,553 |
(In thousands) | September 30, 2016 | September 30, 2015 | |||||
Assets | |||||||
West | $ | 778,521 | $ | 843,564 | |||
East | 344,898 | 436,346 | |||||
Southeast | 333,501 | 317,295 | |||||
Corporate and unallocated (a) | 756,238 | 812,090 | |||||
Total assets | $ | 2,213,158 | $ | 2,409,295 |
Beazer Homes USA, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated Beazer Homes USA, Inc. | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 215,646 | $ | 16,866 | $ | 859 | $ | (4,500 | ) | $ | 228,871 | ||||||||
Restricted cash | 12,867 | 1,538 | — | — | 14,405 | ||||||||||||||
Accounts receivable (net of allowance of $354) | — | 53,225 | 1 | — | 53,226 | ||||||||||||||
Income tax receivable | 292 | — | — | — | 292 | ||||||||||||||
Owned inventory | — | 1,569,279 | — | — | 1,569,279 | ||||||||||||||
Investments in unconsolidated entities | 773 | 9,697 | — | — | 10,470 | ||||||||||||||
Deferred tax assets, net | 309,955 | — | — | — | 309,955 | ||||||||||||||
Property and equipment, net | — | 19,138 | — | — | 19,138 | ||||||||||||||
Investments in subsidiaries | 701,931 | — | — | (701,931 | ) | — | |||||||||||||
Intercompany | 734,766 | — | 2,574 | (737,340 | ) | — | |||||||||||||
Other assets | 577 | 6,930 | 15 | — | 7,522 | ||||||||||||||
Total assets | $ | 1,976,807 | $ | 1,676,673 | $ | 3,449 | $ | (1,443,771 | ) | $ | 2,213,158 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Trade accounts payable | $ | — | $ | 104,174 | $ | — | $ | — | $ | 104,174 | |||||||||
Other liabilities | 11,315 | 122,561 | 377 | — | 134,253 | ||||||||||||||
Intercompany | 2,574 | 739,266 | — | (741,840 | ) | — | |||||||||||||
Total debt (net of premium/discount and debt issuance costs) | 1,320,065 | 11,813 | — | — | 1,331,878 | ||||||||||||||
Total liabilities | 1,333,954 | 977,814 | 377 | (741,840 | ) | 1,570,305 | |||||||||||||
Stockholders’ equity | 642,853 | 698,859 | 3,072 | (701,931 | ) | 642,853 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,976,807 | $ | 1,676,673 | $ | 3,449 | $ | (1,443,771 | ) | $ | 2,213,158 |
Beazer Homes USA, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated Beazer Homes USA, Inc. | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 232,226 | $ | 21,543 | $ | 1,006 | $ | (3,192 | ) | $ | 251,583 | ||||||||
Restricted cash | 37,177 | 1,724 | — | — | 38,901 | ||||||||||||||
Accounts receivable (net of allowance of $1,052) | — | 52,378 | 1 | — | 52,379 | ||||||||||||||
Income tax receivable | 419 | — | — | — | 419 | ||||||||||||||
Owned inventory | — | 1,697,590 | — | — | 1,697,590 | ||||||||||||||
Investments in unconsolidated entities | 773 | 12,961 | — | — | 13,734 | ||||||||||||||
Deferred tax assets, net | 325,373 | — | — | — | 325,373 | ||||||||||||||
Property and equipment, net | — | 22,230 | — | — | 22,230 | ||||||||||||||
Investments in subsidiaries | 649,701 | — | — | (649,701 | ) | — | |||||||||||||
Intercompany | 913,733 | — | 2,384 | (916,117 | ) | — | |||||||||||||
Other assets | 611 | 6,471 | 4 | — | 7,086 | ||||||||||||||
Total assets | $ | 2,160,013 | $ | 1,814,897 | $ | 3,395 | $ | (1,569,010 | ) | $ | 2,409,295 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Trade accounts payable | $ | — | $ | 113,539 | $ | — | $ | — | $ | 113,539 | |||||||||
Other liabilities | 31,703 | 116,718 | 545 | — | 148,966 | ||||||||||||||
Intercompany | 2,384 | 916,925 | — | (919,309 | ) | — | |||||||||||||
Total debt (net of discount and debt issuance costs) | 1,495,503 | 20,864 | — | — | 1,516,367 | ||||||||||||||
Total liabilities | 1,529,590 | 1,168,046 | 545 | (919,309 | ) | 1,778,872 | |||||||||||||
Stockholders’ equity | 630,423 | 646,851 | 2,850 | (649,701 | ) | 630,423 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,160,013 | $ | 1,814,897 | $ | 3,395 | $ | (1,569,010 | ) | $ | 2,409,295 |
Beazer Homes USA, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated Beazer Homes USA, Inc. | |||||||||||||||
Fiscal Year Ended September 30, 2016 | |||||||||||||||||||
Total revenue | $ | — | $ | 1,822,114 | $ | 156 | $ | (156 | ) | $ | 1,822,114 | ||||||||
Home construction and land sales expenses | 77,941 | 1,431,840 | — | (156 | ) | 1,509,625 | |||||||||||||
Inventory impairments and abandonments | 710 | 14,572 | — | — | 15,282 | ||||||||||||||
Gross (loss) profit | (78,651 | ) | 375,702 | 156 | — | 297,207 | |||||||||||||
Commissions | — | 70,460 | — | — | 70,460 | ||||||||||||||
General and administrative expenses | — | 153,524 | 104 | — | 153,628 | ||||||||||||||
Depreciation and amortization | — | 13,794 | — | — | 13,794 | ||||||||||||||
Operating (loss) income | (78,651 | ) | 137,924 | 52 | — | 59,325 | |||||||||||||
Equity in income of unconsolidated entities | — | 131 | — | — | 131 | ||||||||||||||
Loss on extinguishment of debt | (13,423 | ) | — | — | — | (13,423 | ) | ||||||||||||
Other (expense) income, net | (25,388 | ) | 1,061 | (3 | ) | — | (24,330 | ) | |||||||||||
(Loss) income before income taxes | (117,462 | ) | 139,116 | 49 | — | 21,703 | |||||||||||||
(Benefit) expense from income taxes | (70,126 | ) | 86,605 | 19 | — | 16,498 | |||||||||||||
Equity in income of subsidiaries | 52,541 | — | — | (52,541 | ) | — | |||||||||||||
Income from continuing operations | 5,205 | 52,511 | 30 | (52,541 | ) | 5,205 | |||||||||||||
Loss from discontinued operations, net of tax | — | (503 | ) | (9 | ) | — | (512 | ) | |||||||||||
Equity in loss of subsidiaries | (512 | ) | — | — | 512 | — | |||||||||||||
Net income and comprehensive income | $ | 4,693 | $ | 52,008 | $ | 21 | $ | (52,029 | ) | $ | 4,693 | ||||||||
Beazer Homes USA, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated Beazer Homes USA, Inc. | |||||||||||||||
Fiscal Year Ended September 30, 2015 | |||||||||||||||||||
Total revenue | $ | — | $ | 1,627,413 | $ | 198 | $ | (198 | ) | $ | 1,627,413 | ||||||||
Home construction and land sales expenses | 55,006 | 1,297,052 | — | (198 | ) | 1,351,860 | |||||||||||||
Inventory impairments and abandonments | — | 3,109 | — | — | 3,109 | ||||||||||||||
Gross (loss) profit | (55,006 | ) | 327,252 | 198 | — | 272,444 | |||||||||||||
Commissions | — | 65,023 | — | — | 65,023 | ||||||||||||||
General and administrative expenses | — | 142,391 | 105 | — | 142,496 | ||||||||||||||
Depreciation and amortization | — | 13,338 | — | — | 13,338 | ||||||||||||||
Operating (loss) income | (55,006 | ) | 106,500 | 93 | — | 51,587 | |||||||||||||
Equity in income of unconsolidated entities | — | 536 | — | — | 536 | ||||||||||||||
Loss on extinguishment of debt | (80 | ) | — | — | — | (80 | ) | ||||||||||||
Other expense, net | (29,752 | ) | (258 | ) | (3 | ) | — | (30,013 | ) | ||||||||||
(Loss) income before income taxes | (84,838 | ) | 106,778 | 90 | — | 22,030 | |||||||||||||
(Benefit) expense from income taxes | (32,275 | ) | (292,326 | ) | 32 | — | (324,569 | ) | |||||||||||
Equity in income of subsidiaries | 399,162 | — | — | (399,162 | ) | — | |||||||||||||
Income from continuing operations | 346,599 | 399,104 | 58 | (399,162 | ) | 346,599 | |||||||||||||
Loss from discontinued operations, net of tax | — | (2,495 | ) | (10 | ) | — | (2,505 | ) | |||||||||||
Equity in loss of subsidiaries | (2,505 | ) | — | — | 2,505 | — | |||||||||||||
Net income | $ | 344,094 | $ | 396,609 | $ | 48 | $ | (396,657 | ) | $ | 344,094 | ||||||||
Change in unrealized loss related to available-for-sale securities | 1,276 | — | — | — | 1,276 | ||||||||||||||
Comprehensive income | $ | 345,370 | $ | 396,609 | $ | 48 | $ | (396,657 | ) | $ | 345,370 |
Beazer Homes USA, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated Beazer Homes USA, Inc. | |||||||||||||||
Fiscal Year Ended September 30, 2014 | |||||||||||||||||||
Total revenue | $ | — | $ | 1,463,767 | $ | 379 | $ | (379 | ) | $ | 1,463,767 | ||||||||
Home construction and land sales expenses | 39,255 | 1,153,125 | — | (379 | ) | 1,192,001 | |||||||||||||
Inventory impairments and abandonments | 245 | 8,062 | — | — | 8,307 | ||||||||||||||
Gross (loss) profit | (39,500 | ) | 302,580 | 379 | — | 263,459 | |||||||||||||
Commissions | — | 58,028 | — | — | 58,028 | ||||||||||||||
General and administrative expenses | — | 136,349 | 114 | — | 136,463 | ||||||||||||||
Depreciation and amortization | — | 13,279 | — | — | 13,279 | ||||||||||||||
Operating (loss) income | (39,500 | ) | 94,924 | 265 | — | 55,689 | |||||||||||||
Equity in income of unconsolidated entities | — | 6,545 | — | — | 6,545 | ||||||||||||||
Loss on extinguishment of debt | (19,917 | ) | — | — | — | (19,917 | ) | ||||||||||||
Other (expense) income, net | (50,786 | ) | 1,600 | (5 | ) | — | (49,191 | ) | |||||||||||
(Loss) income before income taxes | (110,203 | ) | 103,069 | 260 | — | (6,874 | ) | ||||||||||||
(Benefit) expense from income taxes | (14,247 | ) | (27,642 | ) | 92 | — | (41,797 | ) | |||||||||||
Equity in income of subsidiaries | 130,879 | — | — | (130,879 | ) | — | |||||||||||||
Income from continuing operations | 34,923 | 130,711 | 168 | (130,879 | ) | 34,923 | |||||||||||||
Loss from discontinued operations, net of tax | — | (532 | ) | (8 | ) | — | (540 | ) | |||||||||||
Equity in loss of subsidiaries | (540 | ) | — | — | 540 | — | |||||||||||||
Net income | $ | 34,383 | $ | 130,179 | $ | 160 | $ | (130,339 | ) | $ | 34,383 | ||||||||
Change in unrealized loss related to available-for-sale securities | (1,276 | ) | — | — | — | (1,276 | ) | ||||||||||||
Comprehensive income | $ | 33,107 | $ | 130,179 | $ | 160 | $ | (130,339 | ) | $ | 33,107 |
Beazer Homes USA, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated Beazer Homes USA, Inc. | |||||||||||||||
Fiscal Year Ended September 30, 2016 | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (56,218 | ) | $ | 219,401 | $ | (158 | ) | $ | — | $ | 163,025 | |||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | — | (12,219 | ) | — | — | (12,219 | ) | ||||||||||||
Proceeds from sale of fixed assets | — | 2,624 | — | — | 2,624 | ||||||||||||||
Investments in unconsolidated entities | — | (4,241 | ) | — | — | (4,241 | ) | ||||||||||||
Return of capital from unconsolidated entities | — | 1,142 | — | — | 1,142 | ||||||||||||||
Increases in restricted cash | (2,388 | ) | (3,464 | ) | — | — | (5,852 | ) | |||||||||||
Decreases in restricted cash | 26,698 | 3,650 | — | — | 30,348 | ||||||||||||||
Advances to/from subsidiaries | 203,690 | — | 11 | (203,701 | ) | — | |||||||||||||
Net cash provided by (used in) investing activities | 228,000 | (12,508 | ) | 11 | (203,701 | ) | 11,802 | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Repayment of debt | (819,044 | ) | (9,177 | ) | — | — | (828,221 | ) | |||||||||||
Proceeds from issuance of new debt | 642,150 | — | — | — | 642,150 | ||||||||||||||
Repayment of borrowing from credit facility | (90,000 | ) | — | — | — | (90,000 | ) | ||||||||||||
Borrowing from credit facility | 90,000 | — | — | — | 90,000 | ||||||||||||||
Debt issuance costs | (11,246 | ) | — | — | — | (11,246 | ) | ||||||||||||
Other financing activities | (222 | ) | — | — | — | (222 | ) | ||||||||||||
Advances to/from subsidiaries | — | (202,393 | ) | — | 202,393 | — | |||||||||||||
Net cash (used in) provided by financing activities | (188,362 | ) | (211,570 | ) | — | 202,393 | (197,539 | ) | |||||||||||
Decrease in cash and cash equivalents | (16,580 | ) | (4,677 | ) | (147 | ) | (1,308 | ) | (22,712 | ) | |||||||||
Cash and cash equivalents at beginning of period | 232,226 | 21,543 | 1,006 | (3,192 | ) | 251,583 | |||||||||||||
Cash and cash equivalents at end of period | $ | 215,646 | $ | 16,866 | $ | 859 | $ | (4,500 | ) | $ | 228,871 |
Beazer Homes USA, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated Beazer Homes USA, Inc. | |||||||||||||||
Fiscal Year Ended September 30, 2015 | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (388,584 | ) | $ | 307,668 | $ | (133 | ) | $ | — | $ | (81,049 | ) | ||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | — | (15,964 | ) | — | — | (15,964 | ) | ||||||||||||
Investments in unconsolidated entities | — | (4,944 | ) | — | — | (4,944 | ) | ||||||||||||
Return of capital from marketable securities unconsolidated entities | — | 24,245 | — | — | 24,245 | ||||||||||||||
Increases in restricted cash | (2,982 | ) | (2,564 | ) | — | — | (5,546 | ) | |||||||||||
Decreases in restricted cash | 27,751 | 1,835 | — | — | 29,586 | ||||||||||||||
Advances to/from subsidiaries | 302,569 | — | 25 | (302,594 | ) | — | |||||||||||||
Net cash provided by investing activities | 327,338 | 2,608 | 25 | (302,594 | ) | 27,377 | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Repayment of debt | (8,703 | ) | (9,870 | ) | — | — | (18,573 | ) | |||||||||||
Repayment of borrowing from credit facility | (75,000 | ) | — | — | — | (75,000 | ) | ||||||||||||
Borrowing from credit facility | 75,000 | — | — | — | 75,000 | ||||||||||||||
Debt issuance costs | (126 | ) | — | — | — | (126 | ) | ||||||||||||
Other financing activities | (200 | ) | — | — | — | (200 | ) | ||||||||||||
Dividends paid | 500 | — | (500 | ) | — | — | |||||||||||||
Advances to/from subsidiaries | 21 | (300,897 | ) | — | 300,876 | — | |||||||||||||
Net cash used in financing activities | (8,508 | ) | (310,767 | ) | (500 | ) | 300,876 | (18,899 | ) | ||||||||||
Decrease in cash and cash equivalents | (69,754 | ) | (491 | ) | (608 | ) | (1,718 | ) | (72,571 | ) | |||||||||
Cash and cash equivalents at beginning of period | 301,980 | 22,034 | 1,614 | (1,474 | ) | 324,154 | |||||||||||||
Cash and cash equivalents at end of period | $ | 232,226 | $ | 21,543 | $ | 1,006 | $ | (3,192 | ) | $ | 251,583 | ||||||||
Fiscal Year Ended September 30, 2014 | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (119,074 | ) | $ | (41,429 | ) | $ | 34 | $ | — | $ | (160,469 | ) | ||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | — | (14,553 | ) | — | — | (14,553 | ) | ||||||||||||
Investments in unconsolidated entities | — | (5,218 | ) | — | — | (5,218 | ) | ||||||||||||
Return of capital from unconsolidated entities | — | 1,703 | — | — | 1,703 | ||||||||||||||
Increases in restricted cash | (14,111 | ) | (1,497 | ) | — | — | (15,608 | ) | |||||||||||
Decreases in restricted cash | 39 | 1,606 | — | — | 1,645 | ||||||||||||||
Advances to/from subsidiaries | (78,951 | ) | — | — | 78,951 | — | |||||||||||||
Net cash used in investing activities | (93,023 | ) | (17,959 | ) | — | 78,951 | (32,031 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Repayment of debt | (305,061 | ) | (2,541 | ) | — | — | (307,602 | ) | |||||||||||
Proceeds from issuance of new debt | 325,000 | — | — | — | 325,000 | ||||||||||||||
Debt issuance costs | (5,490 | ) | — | — | — | (5,490 | ) | ||||||||||||
Other financing activities | 287 | — | — | — | 287 | ||||||||||||||
Advances to/from subsidiaries | — | 77,639 | (57 | ) | (77,582 | ) | — | ||||||||||||
Net cash provided by (used in) financing activities | 14,736 | 75,098 | (57 | ) | (77,582 | ) | 12,195 | ||||||||||||
(Decrease) increase in cash and cash equivalents | (197,361 | ) | 15,710 | (23 | ) | 1,369 | (180,305 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 499,341 | 6,324 | 1,637 | (2,843 | ) | 504,459 | |||||||||||||
Cash and cash equivalents at end of period | $ | 301,980 | $ | 22,034 | $ | 1,614 | $ | (1,474 | ) | $ | 324,154 |
Fiscal Year Ended September 30, | ||||||||||||
(In thousands) | 2016 | 2015 | 2014 | |||||||||
Total revenue | $ | — | $ | 1,030 | $ | 3,864 | ||||||
Home construction and land sales expenses (a) | 668 | 4,518 | 4,768 | |||||||||
Gross loss | (668 | ) | (3,488 | ) | (904 | ) | ||||||
General and administrative expenses (b) | 137 | 380 | (351 | ) | ||||||||
Operating loss | (805 | ) | (3,868 | ) | (553 | ) | ||||||
Equity in income of unconsolidated entities | 12 | — | — | |||||||||
Other income, net | 6 | 5 | 8 | |||||||||
Loss from discontinued operations before income taxes | (787 | ) | (3,863 | ) | (545 | ) | ||||||
Benefit from income taxes | (275 | ) | (1,358 | ) | (5 | ) | ||||||
Loss from discontinued operations, net of tax | $ | (512 | ) | $ | (2,505 | ) | $ | (540 | ) |
(In thousands, except per share data) | Quarter Ended | |||||||||||||||
Fiscal 2016 | December 31 | March 31 | June 30 | September 30 | ||||||||||||
Total revenue | $ | 344,449 | $ | 385,607 | $ | 459,937 | $ | 632,121 | ||||||||
Gross profit (a) | 57,582 | 59,566 | 77,653 | 102,406 | ||||||||||||
Operating income | 9,148 | 3,030 | 16,309 | 30,838 | ||||||||||||
Net income (loss) from continuing operations (b) | 1,199 | (1,312 | ) | 6,107 | (789 | ) | ||||||||||
Basic EPS from continuing operations (c) | $ | 0.04 | $ | (0.04 | ) | $ | 0.19 | $ | (0.03 | ) | ||||||
Diluted EPS from continuing operations (c) | $ | 0.04 | $ | (0.04 | ) | $ | 0.19 | $ | (0.03 | ) | ||||||
Fiscal 2015 | ||||||||||||||||
Total revenue | $ | 265,764 | $ | 299,359 | $ | 429,438 | $ | 632,852 | ||||||||
Gross profit (a) | 35,218 | 53,913 | 76,108 | 107,205 | ||||||||||||
Operating (loss) income | (9,490 | ) | 6,436 | 17,696 | 36,945 | |||||||||||
Net (loss) income from continuing operations (b) | (18,086 | ) | (2,060 | ) | 12,221 | 354,524 | ||||||||||
Basic EPS from continuing operations (c) | $ | (0.68 | ) | $ | (0.08 | ) | $ | 0.46 | $ | 11.42 | ||||||
Diluted EPS from continuing operations (c) | $ | (0.68 | ) | $ | (0.08 | ) | $ | 0.38 | $ | 11.16 |
(a) | Gross profit in fiscal 2016 and 2015 includes inventory impairment and abandonments as follows: |
(In thousands) | Fiscal 2016 | Fiscal 2015 | ||||||
1st Quarter | $ | 1,356 | $ | — | ||||
2nd Quarter | 1,825 | — | ||||||
3rd Quarter | 11,917 | 249 | ||||||
4th Quarter | 184 | 2,860 | ||||||
$ | 15,282 | $ | 3,109 |
(In thousands) | Fiscal 2016 | Fiscal 2015 | ||||||
1st Quarter | $ | (828 | ) | $ | — | |||
2nd Quarter | (1,631 | ) | — | |||||
3rd Quarter | 429 | — | ||||||
4th Quarter | (11,393 | ) | (80 | ) | ||||
$ | (13,423 | ) | $ | (80 | ) |
Page Herein | |
Consolidated Statements of Income and Comprehensive Income for the fiscal years ended September 30, 2016, 2015 and 2014 | |
Exhibit Number | Exhibit Description | ||
3.1 | — | Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 of the Company's Form 10-K for the year ended September 30, 2008) | |
3.2 | — | Certificate of Amendment, dated April 13, 2010, to the Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 of the Company's Form 10-Q for the quarter ended March 31, 2010) | |
3.3 | — | Certificate of Amendment, dated February 3, 2011, to the Amended and Restated Certificate of Incorporation of the Company, as amended (incorporated herein by reference to Exhibit 3.1 of the Company's Form 8-K filed on February 8, 2011) | |
3.4 | — | Certificate of Amendment, dated October 11, 2012, to the Amended and Restated Certificate of Incorporation of the Company, as amended (incorporated herein by reference to Exhibit 3.1 of the Company's Form 8-K filed on October 12, 2012) | |
3.5 | — | Certificate of Amendment, dated February 2, 2013, to the Amended and Restated Certificate of Incorporation of the Company, as amended (incorporated herein by reference to Exhibit 3.1 of the Company's Form 8-K filed on February 5, 2013) | |
3.6 | — | Certificate of Amendment, dated November 6, 2013, to the Amended and Restated Certificate of Incorporation of the Company, as amended (incorporated herein by reference to Exhibit 3.1 of the Company's Form 8-K filed on November 7, 2013) | |
3.7 | — | Fourth Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.3 of the Company's Form 10-K for the year ended September 30, 2010) | |
3.8 | — | Certificate of Amendment, dated November 11, 2016, to the Amended and Restated Certificate of Incorporation of the Company, as amended | |
4.1 | — | Specimen Physical Common Stock Certificate of Beazer Homes USA, Inc. (incorporated herein by reference to Exhibit 4.1 of the Company's Form 10-K filed on November 10, 2015) | |
4.2 | — | Indenture, dated as of April 17, 2002 among the Company, the Guarantors party thereto and U.S. Bank Trust National Association, as trustee (incorporated herein by reference to Exhibit 4.11 of the Company’s Registration Statement on Form S-4 filed on July 16, 2002) | |
4.3 | — | Seventh Supplemental Indenture, dated January 9, 2006, to the Indenture dated as of April 17, 2002 (incorporated herein by referenced to Exhibit 99.2 of the Company’s Form 8-K filed on January 17, 2006) | |
4.4 | — | Reserved. | |
4.5 | — | Reserved. | |
4.6 | — | Form of Junior Subordinated Indenture, dated June 15, 2006, between the Company and JPMorgan Chase Bank, National Association (incorporated herein by reference to Exhibit 4.1 of the Company's Form 8-K filed on June 21, 2006) | |
4.7 | — | Form of Amended and Restated Trust Agreement, dated June 15, 2006, among the Company, JPMorgan Chase Bank, National Association, Chase Bank USA, National Association, and certain individuals named therein as Administrative Trustees (incorporated herein by reference to Exhibit 4.2 of the Company's Form 8-K filed on June 21, 2006) | |
4.8 | — | Ninth Supplemental Indenture, dated October 26, 2007, amending and supplementing the Indenture dated April 17, 2002, by and among Beazer Homes USA, Inc., the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 10.3 of the Company's Form 8-K filed on October 30, 2007) | |
4.9 | — | Junior Subordinated Indenture between Beazer Homes USA, Inc. and Wilmington Trust Company, as trustee, dated as of January 15, 2010 (incorporated herein by reference to Exhibit 10.2 of the Company's Form 8-K dated January 21, 2010) | |
4.10 | — | Reserved. | |
4.11 | — | Fifteenth Supplemental Indenture, dated July 22, 2011, to the Indenture dated April 17, 2002, between the Company and U.S. Bank National Association, as trustee, amending and supplementing the Thirteenth Supplemental Indenture, dated May 20, 2010, and the Fourteenth Supplemental Indenture, dated November 12, 2010 (incorporated herein by reference to Exhibit 10.2 of the Company's Form 10-Q for the quarter ended June 30, 2011) | |
4.12 | — | Reserved. |
4.13 | — | Indenture for 7.250% Senior Secured Notes due 2023, dated February 1, 2013, by and among the Company, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.1 of the Company's Form 8-K filed on February 5, 2013) | |
4.14 | — | Form of 7.250% Senior Secured Note due 2023 (incorporated herein by reference to Exhibit 4.2 of the Company's Form 8-K filed on February 5, 2013) | |
4.15 | — | Indenture for 7.500% Senior Notes due 2021, dated September 30, 2013, by and among the Company, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.1 of the Company's Form 8-K filed on October 1, 2013) | |
4.16 | — | Form of 7.500% Senior Note due 2021 (incorporated herein by reference to Exhibit 4.2 of the Company's Form 8-K filed on October 1, 2013) | |
4.17 | — | Registration Rights Agreement for 7.500% Senior Notes due 2021, dated September 30, 2013, by and among the Company, the subsidiary guarantors party thereto and Credit Suisse Securities (USA) LLC (incorporated herein by reference to Exhibit 4.3 of the Company's Form 8-K filed on October 1, 2013) | |
4.18 | — | Section 382 Rights Agreement, dated as of November 6, 2013, and effective as of November 12, 2013, between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent (incorporated herein by reference to Exhibit 4.1 of the Company's Form 8-K filed on November 7, 2013) | |
4.19 | — | Seventeenth Supplemental Indenture, dated April 2, 2014, between Beazer-Inspirada LLC and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.2(i) to the Company’s Form S-4 filed on June 10, 2014 (File No. 333-196637)) | |
4.20 | — | Supplemental Indenture, dated April 2, 2014, between Beazer-Inspirada LLC and U.S. Bank National Association, as trustee, related to the Company’s 6.625% Senior Secured Notes due 2018 (incorporated herein by reference to Exhibit 4.5(c) to the Company’s Form S-4 filed on June 10, 2014 (File No. 333-196637)) | |
4.21 | — | Supplemental Indenture, dated April 2, 2014, between Beazer-Inspirada LLC and U.S. Bank National Association, as trustee, related to the Company’s 7.250% Senior Notes due 2023 (incorporated herein by reference to Exhibit 4.6(c) to the Company’s Form S-4 filed on June 10, 2014 (File No. 333-196637)) | |
4.22 | — | Supplemental Indenture, dated April 2, 2014, between Beazer-Inspirada LLC and U.S. Bank National Association, as trustee, related to the Company’s 7.500% Senior Notes due 2021 (incorporated herein by reference to Exhibit 4.7(c) to the Company’s Form S-4 filed on June 10, 2014 (File No. 333-196637)) | |
4.23 | — | Indenture for 5.750% Senior Notes due 2019, dated April 8, 2014, by and among the Company, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.1 of the Company’s Form 8-K filed on April 9, 2014) | |
4.24 | — | Form of 5.750% Senior Note due 2019 (incorporated herein by reference to Exhibit 4.2 of the Company’s Form 8-K filed on April 9, 2014) | |
4.25 | — | Registration Rights Agreement for 5.750% Senior Notes due 2019, dated April 8, 2014, by and among the Company, the subsidiary guarantors party thereto and Citigroup Global Markets Inc., as representative of the initial purchasers named therein (incorporated herein by reference to Exhibit 4.3 of the Company’s Form 8-K filed on April 9, 2014) | |
4.26 | — | Indenture for 8.750% Senior Notes due 2022, dated September 21, 2016, by and among the Company, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.1 of the Company’s Form 8-K filed on September 21, 2016) | |
4.27 | — | Form of 8.750% Senior Note due 2022 (incorporated by reference to Exhibit 4.2 of the Company’s Form 8-K filed on September 21, 2016) | |
4.28 | — | Supplemental Indenture for 8.750% Senior Notes due 2022, dated September 30, 2016, by and among the Company, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.1 of the Company’s Form 8-K filed on September 30, 2016) | |
4.29 | — | Registration Rights Agreement, dated as of September 21, 2016, by and among Beazer Homes USA, Inc. and Credit Suisse Securities (USA) LLC (incorporated herein by reference to Exhibit 4.3 of the Company’s Form 8-K filed September 21, 2016) | |
4.30 | — | Registration Rights Agreement, dated as of September 30, 2016, by and among Beazer Homes USA, Inc. and Credit Suisse Securities (USA) LLC (incorporated herein by reference to Exhibit 4.3 of the Company’s Form 8-K filed September 30, 2016) | |
10.1* | — | Non-Employee Director Stock Option Plan (incorporated herein by reference to Exhibit 10.2 of the Company's Form 10-K for the year ended September 30, 2003) | |
10.2* | — | Amended and Restated 1999 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.2 of the Company's Form 10-Q for the quarter ended June 30, 2008) | |
10.3* | — | Second Amended and Restated Corporate Management Stock Purchase Program (incorporated herein by reference to Exhibit 10.5 of the Company's Form 10-K for the year ended September 30, 2007) |
10.4* | — | Director Stock Purchase Program (incorporated herein by reference to Exhibit 10.7 of the Company's Form 10-K for the year ended September 30, 2004) | |
10.5* | — | Form of Stock Option and Restricted Stock Award Agreement (incorporated herein by reference to Exhibit 10.8 of the Company's Form 10-K for the year ended September 30, 2004) | |
10.6* | — | Form of Stock Option Award Agreement (incorporated herein by reference to Exhibit 10.9 of the Company's Form 10-K for the year ended September 30, 2004) | |
10.7* | — | Form of Amended and Restated 1999 Stock Incentive Plan Award Agreement for Performance Share Awards, dated as of February 2, 2006 (incorporated herein by reference to Exhibit 10.18 of the Company's Form 10-Q for the quarter ended March 31, 2006) | |
10.8* | — | Form of Amended and Restated 1999 Stock Incentive Plan Award Agreement for Option and Restricted Stock Awards, dated as of February 2, 2006 (incorporated herein by reference to Exhibit 10.19 of the Company's Form 10-Q for the quarter ended March 31, 2006) | |
10.9* | — | Form of Indemnification Agreement (incorporated herein by reference to Exhibit 10.1 of the Company's Form 8-K filed on July 1, 2008) | |
10.10* | — | 2008 Beazer Homes USA, Inc. Deferred Compensation Plan, adopted effective January 1, 2008 (incorporated herein by reference to Exhibit 10.27 of the Company's Form 10-K for the fiscal year ended September 30, 2007) | |
10.11* | — | Discretionary Employee Bonus Plan (incorporated herein by reference to Exhibit 10.28 of the Company's Form 10-K for the fiscal year ended September 30, 2007) | |
10.12* | — | 2010 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.1 of the Company's Form 10-Q for the quarter ended March 31, 2010) | |
10.13* | — | Form of 2010 Equity Incentive Plan Employee Award Agreement for Option and Restricted Stock Awards (incorporated herein by reference to Exhibit 10.1 of the Company's Form 10-Q for the quarter ended June 30, 2010) | |
10.14* | — | Form of 2010 Equity Incentive Plan Award Agreement for Option and Restricted Stock Awards (Non-Employee Directors) (incorporated herein by reference to Exhibit 10.2 of the Company's Form 10-Q for the quarter ended June 30, 2010) | |
10.15* | — | Form of 2010 Equity Incentive Plan Award Agreement for Option and Restricted Stock Awards (Named Executive Officers) dated as of November 16, 2011 (incorporated herein by reference to Exhibit 10.1 of the Company's 8-K filed on November 22, 2011) | |
10.16* | — | Form of 2010 Equity Incentive Plan Performance Cash Award Agreement (Named Executive Officers) (incorporated herein by reference to Exhibit 10.1 of the Company's 10-Q for the quarter ended December 31, 2012) | |
10.17* | — | 2014 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.1 of the Company’s Form 8-K filed on February 10, 2014) | |
10.18* | — | Award Agreement for Restricted Stock, effective as of September 18, 2014, by and between Allan P. Merrill and the Company (incorporated herein by reference to Exhibit 10.10 of the Company’s Form 10-K filed on November 13, 2014) | |
10.19* | — | Award Agreement for Restricted Stock, effective as of September 18, 2014, by and between Robert L. Salomon and the Company (incorporated herein by reference to Exhibit 10.19 of the Company’s Form 10-K filed on November 13, 2014) | |
10.20* | — | Award Agreement for Restricted Stock, effective as of September 18, 2014, by and between Kenneth F. Khoury and the Company (incorporated herein by reference to Exhibit 10.20 of the Company’s Form 10-K filed on November 13, 2014) | |
10.21* | — | Form of 2014 Long-Term Incentive Plan Award Agreement for Restricted Stock Awards (Named Executive Officers) (incorporated herein by reference to Exhibit 10.21 of the Company’s Form 10-K filed on November 13, 2014) | |
10.22* | — | Form of 2014 Long-Term Incentive Plan Award Agreement for TSR Performance Share Awards (Named Executive Officers) (incorporated herein by reference to Exhibit 10.22 of the Company’s Form 10-K filed on November 13, 2014) | |
10.23* | — | Form of 2014 Long-Term Incentive Plan Award Agreement for Pre-Tax Income Performance Share Awards (Named Executive Officers) (incorporated herein by reference to Exhibit 10.23 of the Company’s Form 10-K filed on November 13, 2014) | |
10.24* | — | Form of 2014 Long-Term Incentive Plan Award Agreement for Restricted Stock Awards (Non-Employee Directors) (incorporated herein by reference to Exhibit 10.24 of the Company’s Form 10-K filed on November 13, 2014) | |
10.25* | — | Form of 2014 Long-Term Incentive Plan Award Agreement for Performance Shares (Named Executive Officers) (incorporated herein by reference to Exhibit 10.1 of the Company’s Form 10-Q filed on February 4, 2016) |
10.26* | — | Employment Agreement, effective as of September 18, 2014, by and between Allan P. Merrill and the Company (incorporated herein by reference to Exhibit 10.1 of the Company’s Form 8-K filed on September 22, 2014) | |
10.27* | — | Employment Agreement, effective as of September 18, 2014, by and between Robert L. Salomon and the Company (incorporated herein by reference to Exhibit 10.2 of the Company’s Form 8-K filed on September 22, 2014) | |
10.28 | — | Employment Agreement, effective as of September 18, 2014, by and between Kenneth F. Khoury and the Company (incorporated herein by reference to Exhibit 10.3 of the Company’s Form 8-K filed on September 22, 2014) | |
10.29 | — | Delayed-Draw Term Loan Facility, dated November 16, 2010, among Beazer Homes USA, Inc., Citibank, N.A. and Citigroup Global Markets Inc. (incorporated herein by reference to Exhibit 10.1 of the Company's Form 8-K filed on November 18, 2010) | |
10.30 | — | Delayed-Draw Term Loan Facility, dated November 16, 2010, among Beazer Homes USA, Inc., Deutsche Bank AG Cayman Islands Branch and Deutsche Bank Securities Inc. (incorporated herein by reference to Exhibit 10.2 of the Company's Form 8-K filed on November 18, 2010) | |
10.31 | — | First Amendment to the Delayed-Draw Term Loan Facility, dated as of November 16, 2010, by and between Beazer Homes USA, Inc. and Citibank, N.A. (incorporated herein by reference to Exhibit 10.2 of the Company's 8-K filed on August 9, 2012) | |
10.32 | — | First Amendment to the Delayed-Draw Term Loan Facility, dated as of November 16, 2010, by and between Beazer Homes USA, Inc. and Deutsche Bank AG Cayman Islands Branch (incorporated herein by reference to Exhibit 10.3 of the Company's 8-K filed on August 9, 2012) | |
10.33 | — | Second Amended and Restated Credit Agreement, dated as of September 24, 2012, between Beazer Homes USA, Inc., as borrower, the lenders party thereto, the issuers party thereto, and Credit Suisse AG, Cayman Islands Branch, as agent (incorporated herein by reference to Exhibit 10.1 of the Company's 8-K filed on September 26, 2012) | |
10.34 | — | First Amendment to Second Amended and Restated Credit Agreement, dated as of November 10, 2014, between Beazer Homes USA, Inc., as borrower, the lenders party thereto, the issuers party thereto, and Credit Suisse AG, Cayman Islands Branch, as agent (incorporated herein by reference to Exhibit 10.33 of the Company’s Form 10-K filed on November 13, 2014) | |
10.35 | — | Second Amendment to Second Amended and Restated Credit Agreement, dated as of November 6, 2015, between Beazer Homes USA, Inc., as borrower, the lenders party thereto, the issuers party thereto, and Credit Suisse AG, Cayman Islands Branch, as agent. | |
10.36 | — | Credit Agreement, dated March 11, 2016, by and between Beazer Homes USA, Inc. and Wilmington Trust (incorporated herein by reference to Exhibit 10.1 of the Company’s Form 8-K filed on March 11, 2016) | |
10.37 | — | Third Amendment to Second Amended and Restated Credit Agreement, dated as of October 13, 2016, by and among Beazer Homes USA, Inc., as borrower, the lenders party thereto, the issuers party thereto, and Credit Suisse AG, Cayman Islands Branch (incorporated herein by reference to Exhibit 10.1 of the Company’s Form 8-K filed October 13, 2016) | |
21 | — | Subsidiaries of the Company | |
23 | — | Consent of Deloitte & Touche LLP | |
31.1 | — | Certification pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | — | Certification pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | — | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 | — | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101 | — | The following financial statements from Beazer Homes USA, Inc.’s Annual Report on Form 10-K for the period ended September 30, 2015, filed on November 10, 2015, formatted in XBRL (Extensible Business Reporting Language); (i) Consolidated Statements of Operations and Comprehensive Income (Loss), (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements |
4.1 | — | Specimen Physical Common Stock Certificate of Beazer Homes USA, Inc. | |
10.34 | — | Second Amendment to Second Amended and Restated Credit Agreement, dated as of November 6, 2015, between Beazer Homes USA, Inc., as borrower, the lenders party thereto, the issuers party thereto, and Credit Suisse AG, Cayman Islands Branch, as agent. | |
21 | — | Subsidiaries of the Company | |
23 | — | Consent of Deloitte & Touche LLP | |
31.1 | — | Certification pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | — | Certification pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | — | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | — | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101 | — | The following financial statements from Beazer Homes USA, Inc.’s Annual Report on Form 10-K for the period ended September 30, 2015, filed on November 10, 2015, formatted in XBRL (Extensible Business Reporting Language); (i) Consolidated Statements of Operations and Comprehensive Income (Loss), (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements |
Date: | November 15, 2016 | Beazer Homes USA, Inc. | ||
By: | /s/ Allan P. Merrill | |||
Name: | Allan P. Merrill | |||
President and Chief Executive Officer |
Date: | November 15, 2016 | By: | /s/ Stephen P. Zelnak | |
Name: | Stephen P. Zelnak, Jr. | |||
Director and Non-Executive Chairman of the Board |
Date: | November 15, 2016 | By: | /s/ Allan P. Merrill | |
Name: | Allan P. Merrill | |||
President, Chief Executive Officer and Director |
Date: | November 15, 2016 | By: | /s/ Elizabeth S. Acton | |
Name: | Elizabeth S. Acton | |||
Director |
Date: | November 15, 2016 | By: | /s/ Laurent Alpert | |
Name: | Laurent Alpert | |||
Director |
Date: | November 15, 2016 | By: | /s/ Brian C. Beazer | |
Name: | Brian C. Beazer | |||
Director and Chairman Emeritus |
Date: | November 15, 2016 | By: | /s/ Peter G. Leemputte | |
Name: | Peter G. Leemputte | |||
Director |
Date: | November 15, 2016 | By: | /s/ Peter M. Orser | |
Name: | Peter M. Orser | |||
Director |
Date: | November 15, 2016 | By: | /s/ Norma Provencio | |
Name: | Norma Provencio | |||
Director |
Date: | November 15, 2016 | By: | /s/ Larry T. Solari | |
Name: | Larry T. Solari | |||
Director |
Date: | November 15, 2016 | By: | /s/ Robert L. Salomon | |
Name: | Robert L. Salomon | |||
Executive Vice President and Chief Financial Officer |
1. | Article EIGHT of the Amended and Restated Certificate of Incorporation of the Corporation, as amended (the “Amended and Restated Certificate of Incorporation”), is hereby amended by replacing paragraph (i) of the existing Article EIGHT in its entirety with the following: |
2. | In accordance with the provisions of Section 242 of the DGCL, the Board of Directors of the Corporation duly adopted the above amendment to the Amended and Restated Certificate of Incorporation (the “Amendment”), deemed the Amendment advisable and directed that the Amendment be considered by the Corporation’s stockholders. Notice of the Amendment was duly given to the stockholders of the Corporation in accordance with Section 222 of the DGCL. The Amendment was adopted by the Corporation’s stockholders on February 2, 2016 in accordance with Section 242 of the DGCL. |
3. | Pursuant to Sections 103 and 242 of the DGCL, the Amendment shall become effective at 12:00 a.m., New York City time, on Saturday, November 12, 2016. |
Name | Jurisdiction of Incorporation | |
April Corporation | Colorado | |
Arden Park Ventures, LLC | Florida | |
Beazer Clarksburg, LLC | Maryland | |
Beazer General Services, Inc. | Delaware | |
Beazer Homes Capital Trust I | Delaware | |
Beazer Homes, LLC | Tennessee | |
Beazer Homes Holdings, LLC | Delaware | |
Beazer Homes Indiana LLP | Indiana | |
Beazer Homes Indiana Holdings Corp. | Delaware | |
Beazer Homes Investments, LLC | Delaware | |
Beazer Homes Michigan, LLC | Delaware | |
Beazer Homes Sales, Inc. | Delaware | |
Beazer Homes Texas Holdings, Inc. | Delaware | |
Beazer Homes Texas, L.P. | Delaware | |
Beazer-Inspirada LLC | Delaware | |
Beazer Mortgage Corporation | Delaware | |
Beazer Realty Corp. | Georgia | |
Beazer Realty, Inc. | New Jersey | |
Beazer Realty Los Angeles, Inc. | Delaware | |
Beazer Realty Sacramento, Inc. | Delaware | |
Beazer Realty Services, LLC | Delaware | |
Beazer/Squires Realty, Inc. | North Carolina | |
BH Building Products, LP | Delaware | |
BH Procurement Services, LLC | Delaware | |
Clarksburg Arora LLC | Maryland | |
Clarksburg Skylark, LLC | Maryland | |
Elysian Heights Potomia, LLC | Virginia | |
Dove Barrington Development LLC | Delaware | |
Gatherings, LLC | Delaware | |
Security Title Insurance Company | Vermont | |
United Home Insurance Company, A Risk Retention Group | Vermont |
1. | I have reviewed this annual report on Form 10-K of Beazer Homes USA, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | I have reviewed this annual report on Form 10-K of Beazer Homes USA, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 15, 2016 | |
/s/ Allan P. Merrill | ||
Allan P. Merrill | ||
President and Chief Executive Officer |
Date: | November 15, 2016 | |
/s/ Robert L. Salomon | ||
Robert L. Salomon | ||
Executive Vice President and Chief Financial Officer |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Nov. 10, 2016 |
Mar. 31, 2016 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BEAZER HOMES USA INC | ||
Entity Central Index Key | 0000915840 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,071,331 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 283,643,227 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
ASSETS | ||
Allowances for accounts receivable | $ 354 | $ 1,052 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
(Premium) discount on total debt | (2,362) | 3,639 |
Unamortized Debt Issuance Expense | $ 15,514 | $ 11,908 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 63,000,000 | 63,000,000 |
Common stock, shares issued | 33,071,331 | 32,660,583 |
Common stock, shares outstanding | 33,071,331 | 32,660,583 |
Basis of Presentation and Summary of Significant Accounting Policies |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and present the consolidated financial position, income, comprehensive income, stockholders' equity and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany balances have been eliminated in consolidation. 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 income for all periods presented (see Note 20 for a further discussion of our discontinued operations). We evaluated events that occurred after the balance sheet date but before these financial statements were issued for accounting treatment and disclosure. Our fiscal 2016 began on October 1, 2015 and ended on September 30, 2016. Our fiscal 2015 began on October 1, 2014 and ended on September 30, 2015. Our fiscal 2014 began on October 1, 2013 and ended on September 30, 2014. 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, 2016, the majority of our cash and cash equivalents were invested in highly marketable securities, or were on deposit with major banks. These assets were valued at par and had no withdrawal restrictions. The underlying investments of these funds were U.S. Government and U.S. Government Agency obligations or high-quality marketable securities. 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). The cash inflows and outflows related to restricted cash are classified as investing activities in our consolidated statements of cash flows. Accounts Receivable. 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, insurance recovery receivables, 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 collectiblity and record an allowance against any receivable for which collectiblity is deemed to be uncertain. Inventory. Owned inventory consists solely of residential real estate developments. Interest, real estate taxes and development costs are capitalized in inventory during the development and construction period. Construction and land costs are comprised of direct and allocated costs, such as for amenities and estimated costs for future warranties. Land, land improvements and other common costs are typically allocated to individual residential lots on a pro-rata basis, and the costs of residential lots are transferred to homes under construction when home construction begins. Land not owned under option agreements, if outstanding, represents the value of land under option agreements with a variable interest entity (VIE) where the Company is deemed to be the primary beneficiary of the VIE. VIEs are entities in which (1) equity investors do not have a controlling financial interest and/or (2) the entity is unable to finance its activities without additional subordinated financial support from other parties (refer to section below entitled “Land Not Owned Under Option Agreements” for a further discussion of VIEs). In addition, when our deposits and pre-acquisition development costs exceed certain thresholds, we record the remaining purchase price of the lots as consolidated inventory not owned and obligations related to consolidated inventory not owned on our consolidated balance sheets. Refer to Note 5 for a further discussion and detail of our inventory balance. Inventory Valuation - Projects in Progress. Our homebuilding inventories that are accounted for as held for development (projects in progress) include land and home construction assets grouped together as communities. Homebuilding inventories held for development are stated at cost (including direct construction costs, capitalized indirect costs, capitalized interest and real estate taxes) unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We assess these assets no less than quarterly for recoverability. Generally, upon the commencement of land development activities, it may take three to five years (depending on, among other things, the size of the community and its sales pace) to fully develop, sell, construct and close all the homes in a typical community. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If the expected undiscounted cash flows generated are expected to be less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such asset to its estimated fair value based on discounted cash flows. When conducting our community level review for the recoverability of our homebuilding inventory related to projects in progress, we establish a quarterly “watch list” of communities that carry profit margins in backlog or in our forecast that are below a minimum threshold of profitability, as well as recent closings that have gross margins less than a specified threshold. In our experience, this threshold represents a level of profitability that may be an indicator of conditions that would require an asset impairment, but does not necessitate that such an impairment is warranted without additional analysis. Each community is first evaluated qualitatively to determine if there are temporary factors driving the low profitability levels. Following our qualitative evaluation, communities with more than 10 homes remaining to close are subjected to substantial additional financial and operational analyses and review that consider the competitive environment and other factors contributing to profit margins below our watch list threshold. For communities where the current competitive and market dynamics indicate that these factors may be other than temporary, which may call into question the recoverability of our investment, a formal impairment analysis is performed. The formal impairment analysis consists of both qualitative competitive market analyses and a quantitative analysis reflecting market and asset specific information. Our qualitative competitive market analyses include site visits to new home communities of our competitors and written community-level competitive assessments. A competitive assessment consists of a comparison of our specific community with its competitor communities, considering square footage of homes offered, amenities offered within the homes and the communities, location, transportation availability and school districts, among other relevant attributes. In addition, we review the pace of monthly home sales of our competitor communities in relation to our specific community. We also review other factors, such as the target buyer and the macro-economic characteristics that impact the performance of our asset, including unemployment and the availability of mortgage financing, among other things. Based on this qualitative competitive market analysis, adjustments to our sales prices may be required in order to make our communities competitive. We incorporate these adjusted prices in our quantitative analysis for the specific community. The quantitative analyses compare the projected future undiscounted cash flows for each such community with its current carrying value. This undiscounted cash flow analysis requires important assumptions regarding the location and mix of house plans to be sold, current and future home sale prices and incentives for each plan, current and future construction costs for each plan and the pace of monthly sales to occur today and into the future. There is uncertainty associated with preparing the undiscounted cash flow analyses because future market conditions will almost certainly be different, either better or worse, than current conditions. The single most important input to the cash flow analysis is current and future home sales prices for a specific community. The risk of over or under-stating any of the important cash flow variables, including home prices, is greater with longer-lived communities and within markets that have historically experienced greater home price volatility. In an effort to address these risks, we consider some home price and construction cost appreciation in future years for certain communities that are expected to be selling for more than three years and/or if the market has typically exhibited high levels of price volatility. Absent these assumptions on cost and sales price appreciation, we believe the long-term cash flow analysis would be unrealistic and would serve to artificially improve expected future profitability. Finally, we also ensure that the monthly sales absorptions, including historical seasonal differences of our communities and those of our competitors, used in our undiscounted cash flow analyses are realistic, consider our development schedules and relate to those achieved by our competitors for the specific communities. If the aggregate undiscounted cash flows from our quantitative analyses are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the aggregate undiscounted cash flows are less than the carrying or book value, we perform a discounted cash flow analysis to determine the fair value of the community. 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 assets. The discount rate used may be different for each community. The factors considered when determining an appropriate discount rate for a community include, among others: (1) community specific factors such as the number of lots in the community, the status of land development in the community and the competitive factors influencing the sales performance of the community and (2) overall market factors such as employment levels, consumer confidence and the existing supply of new and used homes for sale. If the determined fair value is less than the carrying value of the specific asset, the asset is considered not recoverable and is written down to its fair value. The carrying value of assets in communities that were previously impaired and continue to be classified as projects in progress is not increased for future estimates of increases in fair value in future reporting periods. However, market deterioration that exceeds our initial estimates may lead us to incur additional impairment charges on previously impaired homebuilding assets. Asset Valuation - Land Held for Future Development. For those communities that have been idled (land held for future development), all applicable interest and real estate taxes are expensed as incurred, and the inventory is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, 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. Asset Valuation - Land Held for Sale. We record assets held for sale at the lower of the asset's carrying value or fair value less costs to sell. The following criteria are used to determine if land is held for sale: •management has the authority and commits to a plan to sell the land; •the land is available for immediate sale in its present condition; •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. Additionally, in certain circumstances, such as a change in strategy, management will re-evaluate the best use of an asset that is currently being accounted for as held for development. In such instances, management will review, among other things, the current and projected competitive circumstances of the community, including the level of supply of new and used inventory, the level of sales absorptions by us and our competition, the level of sales incentives required and the number of owned lots remaining in the community. If, based on this review, we believe that the best use of the asset is the sale of all or a portion of the asset in its current condition, then all or portions of the community are accounted for as held for sale if the foregoing criteria have been met as of the end of the applicable reporting period. 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 estimated fair value less cost to sell of an asset is less than its current carrying value, the asset is written down to its estimated fair value less cost to sell. Land Not Owned Under Option Agreements. 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 contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period of time at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option contracts, 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. In accordance with GAAP, if the entity holding the land under option is a VIE, the Company's deposit represents a variable interest in that entity. To determine whether we are the primary beneficiary of the VIE, we are first required to 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 cash deposits already paid, to land not owned under option agreements with an offsetting increase to obligations related to land not owned under option agreements 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 land not owned under option agreement. Consolidation of these VIEs has no impact on the Company’s statements of income or cash flows. Investments in Unconsolidated Entities and Marketable Securities. 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. 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. In prior periods, we had an investment in American Homes 4 Rent (AMH), a marketable investment that we treated as an available-for-sale security. All available-for-sale securities, while outstanding, are recorded at fair value, with changes in fair value being recorded as a component of accumulated other comprehensive income (AOCI). When the security is sold, we use specific identification to determine the cost of the security sold for the amount reclassified out of AOCI. We evaluate our investments in marketable securities, if outstanding, for impairment each reporting period. In doing so, we consider the length of time and extent to which the marketable value of the investment has been less than cost, either or both of which may lead to a conclusion that the security is other than temporarily impaired. Property and Equipment. Our property and equipment is recorded at cost. Depreciation is computed on a straight-line basis based on estimated useful lives as follows:
Other Assets. Our other assets principally include prepaid expenses 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 warranty expense, accrued interest on our outstanding borrowings, customer deposits, 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. Changes in recognition of measurement are recorded in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. For a discussion of our evaluation of and accounting for valuation allowances, refer to Note 13. Revenue Recognition and Classification of Costs. Revenue and related profit are recognized by us at the time of the closing of a sale, when title to and possession of the property, as well as risk of loss, are transferred to the buyer. Sales discounts and incentives include items such as cash discounts, discounts on options included in the home, option upgrades (such as upgrades for cabinetry, countertops and flooring) and seller-paid financing or closing costs. In addition, from time-to-time, we may also provide homebuyers with retail gift certificates and/or other nominal retail merchandise. All sales incentives other than cash discounts are recognized as a cost of selling the home and are included in home construction expense in our consolidated statements of income. Cash discounts are accounted for as a reduction in the sales price of the home, thereby decreasing the amount of revenue we recognize on that closing. 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 0.4% to 1.2% of total revenue recognized for each home closed. Additional warranty costs are charged to home construction expense 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 related to continuing operations of $19.2 million, $18.0 million and $17.8 million for our fiscal years 2016, 2015 and 2014, respectively, were expensed as incurred and were included in general and administrative (G&A) expenses. Fair Value Measurements. Certain of our assets are required to be recorded at fair value on a recurring basis. The fair value of our available-for-sale marketable equity securities, when outstanding, was based on readily available share prices (level 1). 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 instruments are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. The fair value of our investments in unconsolidated entities is determined primarily using a discounted cash flow model to value the underlying net assets of the respective entities. See Note 10 for additional discussion of our fair value measurements. Stock-Based Compensation. We use the Black-Scholes model to value our stock option grants. Other stock-based awards with only performance conditions granted to employees are valued based on the market price of the common stock on the date of the grant. Stock-based awards with market conditions granted to employees are valued using the Monte Carlo valuation method. Any portion of our stock-based awards that can be settled in cash is initially valued based on the market price of the underlying common stock on the date of the grant, and is adjusted to fair value until vested and recorded as a liability on our consolidated balance sheets. On the date of grant, we estimate forfeitures in calculating the expense related to stock-based compensation. 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 income. See Note 16 for additional discussion of our stock-based compensation. Recent Accounting Pronouncements Presentation of Debt Issuance Costs. In April 2015, the FASB issued Accounting Standards Update (ASU) 2015-03, Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires debt issuance costs to be presented on the balance sheet as a direct deduction from the related debt liability, similar to the presentation of debt discounts or premiums. The costs must continue to be amortized to interest expense. ASU 2015-03 requires retrospective application to all prior periods presented in the financial statements. In the fourth quarter of our current fiscal year, we early adopted ASU 2015-03, which requires us to comply with the applicable disclosures for a change in accounting principle. As a result of adoption of this guidance, certain line items within our consolidated balance sheets from prior fiscal years, as shown below, changed due to our movement of debt issuance costs from other assets to a direct deduction from our related debt liability. The debt issuance costs associated with our Secured Revolving Credit Facility remain in other assets on our consolidated balance sheets in accordance with ASU 2015-15, which states that an objection would not be made to an entity deferring such costs and continuing to present these as an asset until the costs are amortized ratably over the term of the line-of-credit agreement. The following table presents the changes to our consolidated balance sheet as of September 30, 2015 due to the adoption of ASU 2015-03:
Adoption of ASU 2015-03 did not impact our other consolidated financial statements in any periods presented. Stock Compensation. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (ASU 2016-09). ASU 2016-09 simplifies several aspects of accounting for employee stock-based compensation. First, ASU 2016-09 requires that all tax benefits and deficiencies related to share-based payments be recorded as income tax expense in the income statement, thereby eliminating the concept of the “APIC pool” contained in current guidance. This change is required to be applied prospectively to all excess tax benefits (“windfalls”) and tax deficiencies (“shortfalls”) resulting from settlements after the date of the adoption of the ASU. Second, ASU 2016-09 permits entities to make an election to either estimate forfeitures or recognize them when they occur. If elected, the change to recognize forfeitures when they occur needs to be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to opening retained earnings. Third, ASU 2016-09 modifies the current exception to liability classification of an award when the employer withholds shares to meet tax withholding requirements. Finally, the classification of certain transactions related to share-based payments within the statement of cash flows is clarified within the ASU. The Company adopted the guidance within ASU 2016-09 as of September 30, 2016. The impact of the adoption was not material to our consolidated financial statements, including prior year statements of cash flows, which were not restated. We continue to estimate forfeitures in calculating the expense related to stock-based compensation, and have therefore not elected to recognize forfeitures as they occur. Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 requires companies to recognize revenue at an amount that the entity expects to be entitled to upon transferring control of goods or services to a customer, as opposed to when risks and rewards transfer to a customer under the existing revenue recognition guidance. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 for one year, which makes the guidance effective for the Company's first fiscal year beginning after December 15, 2017. Additionally, the FASB also is permitting entities to early adopt the standard, which allows for either full retrospective or modified retrospective methods of adoption, for reporting periods beginning after December 15, 2016. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements, and have been involved in industry-specific discussion with the FASB on the treatment of certain items. Leases. In February 2016, the FASB issued ASU 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires lessees to record most leases on their balance sheets. The timing and classification of lease-related expenses for lessees will depend on whether a lease is determined to be a finance lease or an operating lease using updated criteria within ASU 2016-02. Operating leases will result in straight-line expense (similar to current operating leases), while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Regardless of lease type, the lessee will recognize a right-of-use asset, representing the right to use the identified asset during the lease term, and a related lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the current lease accounting rules. The guidance within ASU 2016-02 will be effective for the Company's first fiscal year beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 must be adopted using a modified retrospective approach, which requires application of the standard at the beginning of the earliest comparative period presented, with certain optional practical expedients. ASU 2016-02 also requires significantly enhanced disclosures around an entity's leases and the related accounting. We are currently evaluating the impact of ASU 2016-02 on our consolidated financial statements. |
Description of Business |
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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. |
Supplemental Cash Flow Information |
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Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table presents supplemental disclosure of non-cash and cash activity for the periods presented:
(a) For the fiscal year ended September 30, 2016, non-cash land acquisitions were comprised of lot takedowns from one of our unconsolidated land development joint ventures. For the fiscal year ended September 30, 2015, non-cash land acquisitions were comprised of $7.8 million related to non-cash seller financing and $5.1 million in lot takedowns from one of our unconsolidated land development joint ventures. (b) Elevated interest payments made during our fiscal 2016 is due to early redemption of certain of our outstanding debt obligations; refer to Note 8. |
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Investments in Unconsolidated Entities and Marketable Securities | Investments in Unconsolidated Entities and Marketable Securities Unconsolidated Entities As of September 30, 2016, we participated in certain joint ventures and other unconsolidated entities in which Beazer had less than a controlling interest. The following table presents our investment in these unconsolidated entities, as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2016 and September 30, 2015:
Our equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented:
For the fiscal years ended September, 2016, 2015 and 2014, there were no impairments related to our investments in these unconsolidated entities. South Edge/Inspirada. During our fiscal 2014, we and other members of the Inspirada joint venture (Inspirada) received land in exchange for our investment in Inspirada. We paid $4.5 million, $3.3 million and $1.0 million, respectively, to the joint venture for infrastructure and development costs during our fiscal 2016, 2015 and 2014, respectively, bringing our remaining obligation for our portion of future infrastructure and other development costs to $0.7 million as of September 30, 2016. Guarantees. Our joint ventures typically obtain secured acquisition, development and construction financing. Historically, Beazer and our land development joint venture partners had provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of September 30, 2016 and September 30, 2015, we had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities. We and our joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate us to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During our fiscal years ended September 30, 2016 and 2015, we were not required to make any payments related to environmental indemnities. In assessing the need to record a liability for the contingent aspect of these guarantees, we consider our 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, we monitor the fair value of the collateral of these unconsolidated entities to ensure that the related borrowings do not exceed the specified percentage of the value of the property securing the borrowings. We have not recorded a liability for the contingent aspects of any guarantees that we determined were reasonably possible but not probable. Marketable Securities During the fourth quarter of our fiscal 2014, the Company acquired shares of American Homes 4 Rent (AMH) in exchange for the Company's interest in a real estate investment trust (REIT). The shares represented marketable equity securities with a readily available fair value and were classified as available-for-sale securities. In March 2015, the Company sold the shares and recorded a loss of $1.8 million (approximately $0.5 million of which was attributable to fair value changes in fiscal 2015) that was recorded within other expense, net in our consolidated statements of income. Changes in value prior to the second quarter of fiscal 2015 were recorded to other comprehensive income, and then transferred to other expense, net upon sale. The proceeds received on the sale of the shares of AMH were recorded within investing activities in our consolidated statements of cash flows. |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | Inventory The components of our owned inventory are as follows as of September 30, 2016 and September 30, 2015:
Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction. We had 178 (with a cost of $56.1 million) and 128 (with a cost of $40.1 million) substantially completed homes that were not subject to a sales contract (spec homes) as of September 30, 2016 and 2015, respectively. Development projects in progress consist principally of land and land improvement costs. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract. Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled, and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable interest and real estate taxes on land held for future development are expensed as incurred. Land held for sale is recorded at the lower of the asset's carrying value or fair value less costs to sell. The amount of interest we are able to capitalize is dependent upon our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale (refer to Note 6 for additional information on capitalized interest). Total owned inventory, by reportable segment, is presented in the table below as of September 30, 2016 and September 30, 2015:
(a) Projects in progress include homes under construction, development projects in progress, capitalized interest and model home categories from the preceding table. (b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within Corporate and unallocated. Land held for sale amount includes parcels held by our discontinued operations. Inventory Impairments. When conducting our community level review for the recoverability of our inventory related to projects in progress, we establish a quarterly “watch list” of communities that carry profit margins in backlog and in our forecast that are below a minimum threshold of profitability, as well as recent closings that have gross margins less than a specific threshold. Each community is first evaluated qualitatively to determine if there are temporary factors driving the low profitability levels. Following our qualitative evaluation, communities with more than 10 homes remaining to close are subjected to substantial additional financial and operational analyses and review that consider the competitive environment and other factors contributing to profit margins below our watch list threshold. Our assumptions about future home sales prices and absorption rates require significant judgment because the residential homebuilding industry is cyclical and is highly sensitive to changes in economic conditions. For certain communities, we determined that it is prudent to reduce sales prices or further increase sales incentives in response to a variety of factors, including competitive market conditions in those specific submarkets for the product and locations of these communities. For communities where the current competitive and market dynamics indicate that these factors may be other than temporary, which may call into question the recoverability of our investment, a formal impairment analysis is performed. The formal impairment analysis consists of both qualitative competitive market analyses and a quantitative analysis reflecting market and asset specific information. Market deterioration that exceeds our initial estimates may lead us to incur impairment charges on previously impaired homebuilding assets, in addition to homebuilding assets not currently impaired but for which indicators of impairment may arise if markets deteriorate. For the year ended September 30, 2016, there were seven communities that were included in our watch list that required further analysis to be performed after considering the number of lots remaining in each community and certain other qualitative factors. This additional analysis led to an impairment charge of $13.7 million for three of these communities, principally due to a reduction in price taken at each community that is other than temporary based on current competitive and market dynamics. For the year ended September 30, 2015, there were no communities on our watch list that required further analysis. For the year ended September 30, 2014, there were four communities on our watch list that required further analysis to be performed. The table below summarizes the results of our undiscounted cash flow analysis by reportable segment, where applicable, for the periods ended September 30, 2016 and 2014 (the years that such analyses were required):
(a) We have elected to aggregate our disclosure at the reportable segment level because we believe this level of disclosure is most meaningful to the readers of our financial statements. (b) Number of communities in this column excludes communities that are closing out and have less than 10 closings remaining. As of September 30, 2016, six of these communities still remain on our watch list. (c) Number of communities in this column is lower than the number of communities on our watch list because it excludes communities due to certain qualitative considerations that would imply that the low profitability levels are temporary in nature. (d) An aggregate undiscounted cash flow as a percentage of book value under 100% would indicate a possible impairment and is consistent with our "watch list" methodology. While this metric for the communities in the West segment was above 100% for the year ended September 30, 2016 in total, for the two communities that we ultimately impaired, the metric was below 100%, while the metric for communities we did not impair was above 100%. (e) Amount represents capitalized interest and indirects balance related to communities for which an undiscounted cash flow analysis was prepared. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. (f) N/A - not applicable. (g) During the year ended September 30, 2014, we recorded an impairment charge of $0.1 million in our East segment on a single community. The community had less than 10 lots remaining to close at the time of the analysis and therefore, consistent with our policy, we did not prepare an undiscounted or discounted cash flow analysis related to this community. However, the community is shown here to list all communities for which an impairment was eventually recorded. The following table presents, by reportable segment, details around the impairment charges taken on projects in progress for the periods presented (no impairment were recorded on projects in progress during our fiscal 2015):
(a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. The following table presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities we impaired during the periods presented (the years that such analyses were required):
(a) For the fiscal year ended September 30, 2016, the lower end of this ASP range was related to the communities we impaired in our West segment, while the higher end of the ASP range was for the community we impaired in our East segment. Impairments on land held for sale generally represent write downs of these properties to net realizable value, less estimated costs to sell, and are based on current market conditions and our review of recent comparable transactions. Our assumptions about land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions. We calculate the estimated fair value of land held for sale based on current market conditions and assumptions made by management, which may differ materially from actual results and may result in additional impairments if market conditions deteriorate. From time-to-time, we also determine that the proper course of action with respect to a community is to not exercise an option and to write-off the deposit securing the option takedown and the related pre-acquisition costs, as applicable. In determining whether to abandon lots or lot option contracts, our evaluation is primarily based upon the expected cash flows from the property. Additionally, in certain limited instances, we are forced to abandon lots due to permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record a charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. Abandonment charges generally relate to our decision to abandon lots or not exercise certain option contracts that are not projected to produce adequate results, no longer fit with our long-term strategic plan or, in limited circumstances, are not suitable for building due to regulatory or environmental restrictions that are enacted. The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented:
Lot Option Agreements and Variable Interest Entities (VIE). As previously discussed, we also have access to land inventory through lot option contracts, which generally enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period of time at a specified price. Under lot option contracts, purchase of the properties is contingent upon satisfaction of certain requirements by us and the sellers. Our liability under option contracts is generally limited to forfeiture of the non-refundable deposits, letters of credit and other non-refundable amounts incurred. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option contracts. Various factors, some of which are beyond our control, such as market conditions, weather conditions and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all. The following table provides a summary of our interests in lot option agreements as of September 30, 2016 and September 30, 2015:
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Interest | Interest Our ability to capitalize interest incurred during the fiscal years ended September 30, 2016, 2015 and 2014 was limited by our inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:
(a) The amount of interest we are able to capitalize is dependent upon our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sale expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
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Property and Equipment | Property and Equipment The following table presents our property and equipment as of September 30, 2016 and September 30, 2015:
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Borrowings | Borrowings As of September 30, 2016 and September 30, 2015, we had the following debt, net of premium/discounts and unamortized debt issuance costs:
As of September 30, 2016, the future maturities of our borrowings were as follows:
Secured Revolving Credit Facility. Our Secured Revolving Credit Facility (the Facility) provides us with working capital and letter of credit capacity. On November 6, 2015, we executed a second amendment (the Second Amendment) to the Facility. The Second Amendment, among other things, increased the maximum aggregate amount of the Facility from $130.0 million to $145.0 million and extended its termination date to January 15, 2018. The Facility continues to be with three lenders. As of September 30, 2016 and September 30, 2015, we had no borrowings outstanding under the Facility. 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 $1.0 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). As of September 30, 2016, we had $38.2 million letters of credit outstanding under the Facility, leaving us with $106.8 million in remaining capacity. The Facility contains certain covenants, including negative covenants and financial maintenance covenants, with which we are required to comply. As of September 30, 2016, we were in compliance with all such covenants. Subsequent to September 30, 2016, we executed a third amendment to the Facility (the Third Amendment). The Third Amendment, among other things, extends the termination date of the Facility to February 15, 2019 and increases its capacity from $145.0 million to $180.0 million. For a further discussion of the Third Amendment, refer to Note 22. Letter of Credit Facilities. We have entered into stand-alone, cash-secured letter of credit agreements with banks to maintain our pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Facility). As of September 30, 2016 and September 30, 2015, we had letters of credit outstanding under these additional facilities of $12.1 million and $14.4 million, respectively, all of which were secured by cash collateral in restricted accounts. The Company may enter into additional arrangements to provide additional letter of credit capacity. Senior Notes. Our Senior Notes are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of our significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Facility. Each guarantor subsidiary is a 100% owned subsidiary of Beazer Homes. See Note 19 for further information. All unsecured Senior Notes rank equally in right of payment with all of our existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, including indebtedness under the Facility and the term loan (defined below), 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. The unsecured Senior Notes are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable Indenture. The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness and to make certain investments. Compliance with our Senior Note covenants does not significantly impact our operations. We were in compliance with the covenants contained in the indentures of all of our Senior Notes as of September 30, 2016. In September 2016, we issued and sold $400.0 million aggregate principal amount of 8.75% unsecured Senior Notes due March 2022 at par (before underwriting and other issuance costs) through a private placement to qualified institutional buyers. Soon thereafter, we issued an additional $100.0 million "tack on" aggregate principal amount of 8.75% unsecured Senior Notes due March 2022 at a premium of 104.25, for a total issuance of $500.0 million (collectively, the 2022 Notes). Interest on the 2022 Notes is payable semi-annually, beginning on March 15, 2017. The 2022 Notes will mature on March 15, 2022. We may redeem the 2022 Notes at any time prior to March 15, 2019, in whole or in part, at a redemption price equal to 100% of the principal amount, together with accrued and unpaid interest to, but excluding, the redemption date, plus a customary make-whole premium. In addition, on or prior to March 15, 2019, we may redeem up to 35% of the aggregate principal amount of the 2022 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 108.75% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2022 Notes originally issued remain outstanding immediately after such redemption. For additional redemption features of the 2022 Notes after March 15, 2019, refer to the table below that summarizes the redemption terms for our Senior Notes. The 2022 Notes are unsecured senior obligations that rank equally with all of our other unsecured senior indebtedness. The 2022 Notes are fully and unconditionally guaranteed jointly and severally on an unsecured senior basis by substantially all of our subsidiaries. The 2022 Notes and related guarantees are effectively junior to our secured obligations (such as the Facility and our term loan discussed below) to the extent of the value of the collateral securing those obligations. Upon the occurrence of certain specified changes of control, the holders of the 2022 Notes will have the right to require us to purchase all or a part of the notes at a repurchase price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The proceeds from the 2022 Notes were principally used to redeem all of our remaining outstanding 6.625% Senior Secured Notes due April 2018 (the 2018 Notes) and our 9.125% Senior Notes due May 2019 (the May 2019 Notes). The table below summarizes the redemption terms for our Senior Notes:
During the current fiscal year, we redeemed the 2018 Notes and the May 2019 Notes principally by utilizing the proceeds received from the issuance of the 2022 Notes, as well as cash on hand. We also redeemed the remaining Senior Notes due 2016 (the 2016 Notes) outstanding, mainly by utilizing the proceeds received from the term loan issued in March 2016, which is discussed below. Additionally, we redeemed $3.6 million of our Senior Notes due June 2019 and $2.0 million of our Senior Notes due September 2021 during the current fiscal year, as well as a de minimus amount of our Senior Notes due February 2023. These debt repurchase activities resulted in a total net loss on extinguishment of debt of $13.4 million for the year ended September 30, 2016. Term Loan. In March 2016, we entered into a credit agreement (the Credit Agreement) that provided us with a $140 million, two-year secured term loan (the Term Loan). The Term Loan requires quarterly principal payments of $17.5 million starting on June 30, 2016, and bears interest at the London Interbank Offered Rate (LIBOR) plus 550 basis points (6.750% as of September 30, 2016). The proceeds from the Term Loan were used to fund the redemption of the 2016 Notes. The Term Loan will mature and all remaining amounts outstanding thereunder will be due and payable on March 11, 2018, but can be pre-paid at any time without penalty. During our fiscal 2016, we redeemed $85.0 million of the Term Loan through our two scheduled payments of $17.5 million due June 30, 2016 and September 30, 2016, as well as a $50.0 million prepayment made during the fourth quarter. Substantially all of our subsidiaries are guarantors of the obligations under the Credit Agreement. Collectively, we granted security interests and mortgage liens on substantially all of our tangible and intangible assets on a second lien basis, since they are subordinate to those that exist on the Facility. The Credit Agreement contains covenants which, subject to certain exceptions, limit the ability of the Company and its restricted subsidiaries (as defined in the Credit Agreement) to, among other things, incur additional indebtedness, engage in certain asset sales, make certain types of restricted payments and create liens on assets of the Company or its restricted subsidiaries; these covenants are similar to existing covenants under our Senior Notes. In addition, the Credit Agreement requires the Company’s inventory (as defined in the Credit Agreement) to be no less than $1.25 billion as of the last day of any fiscal quarter. The Credit Agreement also includes customary events of default, including, but not limited to, the failure to pay any interest, principal or fees when due; the failure to perform or the violation of any covenant or agreement; inaccurate or false representations or warranties; a default on other material indebtedness, insolvency or bankruptcy; a change of control; and the occurrence of certain material judgments against the Company. As of September 30, 2016, we were in compliance with all such covenants. Junior Subordinated Notes. Our unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036. The Junior Subordinated Notes are redeemable at par and paid interest at a fixed rate of 7.987% for the first ten years ending July 30, 2016. The securities now have a floating interest rate as defined in the Junior Subordinated Notes Indenture, which was a weighted-average of 3.98% as of September 30, 2016 (because the rate on the portion of the Junior Subordinated Notes that were modified, as discussed below, is subject to a floor). The obligations relating to these notes are subordinated to the Facility, the Senior Notes and the Term Loan. In January 2010, we modified the terms of $75.0 million of these notes and recorded them at their then estimated fair value. Over the remaining life of the Junior Subordinated Notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of September 30, 2016, the unamortized accretion was $40.9 million and will be amortized over the remaining life of the notes. As of September 30, 2016, we were in compliance with all covenants under our Junior Subordinated Notes. Cash Secured Loans. In March 2016, we redeemed the entire balance of our cash secured loan facilities using the cash that fully secured the borrowings under these facilities. This secured cash was reflected as restricted cash on our consolidated balance sheets. Other Secured Notes Payable. We periodically acquire land through the issuance of notes payable. As of September 30, 2016 and September 30, 2015, we had outstanding notes payable of $11.8 million and $20.9 million, respectively, primarily related to land acquisitions. These secured notes payable related to land acquisitions have varying expiration dates between 2017 and 2019, and have a weighted average fixed interest rate of 4.48% as of September 30, 2016. These notes are secured by the real estate to which they relate. The agreements governing these other secured notes payable contain various affirmative and negative covenants. There can be no assurance that we will be able to obtain any future waivers or amendments that may become necessary without significant additional cost or at all. In each instance, however, a covenant default can be cured by repayment of the indebtedness. |
Contingencies |
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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 arising from its business. In determining loss contingencies, we consider the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated. Warranty Reserves. We currently provide a limited warranty (ranging from one to two years) covering workmanship and materials per our defined standards of performance. In addition, we provide a limited warranty for up to ten years covering only certain defined structural element failures. Our homebuilding work is performed by subcontractors that typically must agree to indemnify us with regard to their work and provide us with certificates of insurance demonstrating that they have met our insurance requirements and that we are named as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. In addition, we maintain insurance coverage related to our construction efforts that can result in recoveries of warranty and construction defect costs above certain specified limits. Our warranty reserves are included in other liabilities on our consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in our consolidated statements of income. We record reserves covering anticipated warranty expense for each home we close. Management reviews the adequacy of warranty reserves each reporting period based on historical experience and management’s estimate of the costs to remediate the claims and adjusts these provisions accordingly. 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 our warranty experience, the number of home closings, the prices of homes, product mix and other data in estimating our warranty reserves. In addition, our analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in our historical data and trends. While we adjust our estimated warranty liabilities each reporting period to the extent required as a result of our quarterly analyses, historical data and trends may not accurately predict actual warranty costs, which could lead to a significant change in the reserve. Changes in our warranty reserves are as follows for the periods presented:
(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. The continued increase in the amount of accrual compared to the respective prior year periods is mainly due to an increase in the number of closings and the sales prices of homes closed, as well as increases in certain divisions' accrual rates. (b) Changes in liability related to warranties existing and payments made in all periods, particularly fiscal 2016 and fiscal 2015, are elevated due to charges and subsequent payments related to water intrusion issues in certain of our communities located in Florida (refer to separate discussion below). Florida and New Jersey Water Intrusion Issues In the latter portion of our fiscal 2014, we began to experience an increase in calls from homeowners reporting stucco and water intrusion issues in certain of our communities in Florida and one community in New Jersey. These issues continued to be reported to us in Florida throughout our fiscal 2015 and fiscal 2016. In New Jersey, while the calls were initially isolated to one community, we received calls from a second community with similar issues during the current fiscal year. Through September 30, 2016, we have cumulatively recorded $80.4 million in charges related to these issues, of which $78.6 million related to communities in Florida and $1.8 million related to the two communities in New Jersey. Refer to discussion below for further detail. Florida. The water intrusion issues in Florida (the Florida stucco issues) relate to stucco installation in multiple communities that first became known during our fiscal 2014. Other builders were also dealing with similar stucco issues, some of which received local media coverage. Throughout fiscal 2015, with many homeowners seeing an increased level of warranty-related activities occurring in their communities, the number of stucco and water-related warranty calls in Florida increased significantly. This led us to expand the scope of our inspections, including to homes and communities from which no warranty calls had been received. This enhanced review resulted in us determining that more homes and communities in Florida were likely to be adversely affected, leading to higher repair costs. Based on all of these activities and our resulting analysis, we recorded additional warranty expense of $26.3 million during the year ended September 30, 2015 related to the Florida stucco issues, in addition to the $4.3 million recorded during our fiscal 2014. As of September 30, 2015, the accrual to cover outstanding payments and potential repair costs for the impacted homes was $14.5 million, after considering the repair costs already paid. During our fiscal 2016, we received additional homeowner calls beyond those anticipated based on our procedures and previous call history and increased our cost estimates, causing us to record additional warranty expense related to the Florida stucco issues of $48.0 million. Our cost estimates to repair homes discovered in more recent periods are considerably higher than initial estimates, as these homes require more extensive repairs. As of September 30, 2016, 690 homes have been identified as likely to require repairs (an increase of 158 homes to those that were anticipated to require repairs as of the end of our fiscal 2015), of which 437 homes have been repaired. We made payments related to the Florida stucco issues of $39.9 million during the current fiscal year, including payments on fully repaired homes, as well as payments on homes for which remediation is not yet complete, bringing the remaining accrual to $22.6 million as of September 30, 2016, which is included in our overall warranty liability detailed above. As of September 30, 2016, additional homes in the impacted communities remain within the period specified by the applicable statute of repose but are not yet deemed likely to require repairs and have not been reserved for. The cost to repair these additional homes would be approximately $4.7 million if the current cost estimates were applied to these additional homes. Our assessment of the Florida stucco issues is ongoing. As a result, we anticipate that the ultimate magnitude of our liability may change as additional information is obtained. Certain visual and other inspections of the homes that could be subject to defect often do not reveal the severity or extent of the defects, which can only be discovered once we receive a homeowner call and begin repairs. The current fiscal year charges were more than offset by additional insurance recoveries from our insurers, while $13.6 million and $4.3 million in expense related to the Florida stucco issues was not offset by expected insurance recoveries in fiscal 2015 and 2014, respectively, as we had not yet surpassed the thresholds specified in our insurance policies. For a discussion of the amounts we have already recovered or anticipate recovering from our insurer, refer to “Insurance Recoveries” section below. In addition, we believe that we will also recover a portion of such repair costs from sources other than our own insurer, including the subcontractors involved with the construction of these homes and their insurers; however, no amounts related to subcontractor recoveries have been recorded in our consolidated financial statements as of September 30, 2016. Any amounts recovered from our subcontractors related to homes closed during policy years for which we have surpassed the thresholds in our insurance policies would be remitted to our third-party insurers, while recoveries in other policy years would be retained by us. New Jersey. Initially, the water intrusion issues in New Jersey related to flashing and stone installation on homes in one specific community, for which we recorded $0.6 million in charges during our fiscal 2014. During our fiscal 2016, we began to receive homeowner calls related to one additional community citing similar issues, causing us to inspect the homes within the community and record an additional reserve of $1.2 million during the current fiscal year, which is also included in our overall warranty liability as of September 30, 2016. Similar to the Florida stucco issues discussed above, the costs recorded during the current year period were fully offset by additional insurance recoveries from our third-party insurance, which is described below, while costs incurred related to this issue in our fiscal 2014 were not offset. Insurance Recoveries The Company has insurance policies that provide for the reimbursement of certain warranty costs incurred by us above a specified threshold for each period covered. We have surpassed these thresholds for certain policy years, particularly those that cover most of the homes impacted by the water intrusion issues discussed above. As such, we expect a substantial majority of additional costs incurred after the first quarter of our fiscal 2015 for warranty work on homes within these policy years to be reimbursed by our insurers. For one policy year, our accruals have exceeded the insurance claim limit for one division under our first layer of coverage; however, we expect to claim and recover such amounts under our excess insurance coverage. Warranty expense beyond the thresholds set in our insurance policies was recorded related to homes impacted by the Florida stucco issues and the water intrusion issues in New Jersey, as well as other various warranty issues, resulting in our recognition of $59.3 million and $18.9 million in insurance recoveries during our fiscal 2016 and 2015, respectively, that we have received or deem probable of receiving. Amounts recorded for anticipated insurance recoveries are reflected within our consolidated statements of income as a reduction of our home construction expenses, and associated amounts not yet received from our insurer were recorded on a gross basis (i.e. not net of any associated warranty expense) as a receivable within accounts receivable on our consolidated balance sheets. As of September 30, 2016, we have cumulatively recorded $78.2 million in insurance recoveries related to insurance policy years for which we have surpassed our deductible. We have received multiple payments under these policies from our insurance provider during fiscal 2015 and 2016, reducing our insurance recovery receivable related to insurance policy years for which we have surpassed our deductible to $30.7 million as of September 30, 2016. The total recovery amount recorded during the current fiscal year of $59.3 million fully offsets the incremental expense recorded related to the water intrusion issues in New Jersey, and was $3.6 million greater than the underlying expense related to the Florida stucco issues, as we began to recover more costs than initially anticipated. The remaining insurance recovery amount for the year ended September 30, 2016 beyond the water intrusion issues in New Jersey and the Florida stucco issues related to expenditures for warranty issues that are individually immaterial but are also in excess of our insurance thresholds. The total recovery amount recorded during our fiscal 2015 of $18.9 million offset $12.7 million of the underlying expense related to the Florida stucco issues (leaving a net expense of $13.6 million related to these matters), while the remainder related to expenditures for warranty issues that were individually immaterial but were also in excess of our insurance thresholds. Amounts still to be recovered under our insurance policies will vary based on whether expected additional warranty costs are actually incurred for periods for which our threshold has already been met. As a result, we anticipate the balance of our established receivable for insurance recoveries to fluctuate for potential future reimbursements, as well as the amounts ultimately owed to us from our insurer. Additionally, we entered into agreements with our third-party insurer during the current fiscal year to resolve certain issues related to the extent of our insurance coverage for multiple policy years. These agreements resulted in our recognition of $15.5 million in further insurance recoveries (in addition to those discussed above), which was recorded within our consolidated statement of income as a reduction of our home construction expenses. As of September 30, 2016, we collected the entire settlement. Litigation From time-to-time, we have received claims from institutions that have acquired mortgages originated by our subsidiary, Beazer Mortgage Corporation (BMC), demanding damages or indemnity arising from BMC's activities or that we repurchase such mortgages. BMC stopped originating mortgages in 2008. We have been able to resolve these claims for amounts that are not material to our consolidated financial statements. We currently have one outstanding claim for an immaterial amount. We cannot rule out the potential for additional mortgage loan repurchase or indemnity claims in the future from other investors. At this time, we do not believe that the exposure related to any such claims would be material to our consolidated financial condition, results of operations or cash flows. As of September 30, 2016, no liability has been recorded for any such additional claims, as such exposure is not both probable and reasonably estimable. A purported class action lawsuit was filed on July 7, 2016 against the Company in Maricopa County Arizona Superior Court on behalf of all homeowners in Arizona that purchased homes from the Company that included a certain roof underlayment. The complaint alleges various construction defects, but principally claims that the roof underlayment used in these homes is susceptible to leaks and was not installed in accordance with best practices. The monetary damages the plaintiffs seek have not been quantified. The Company believes these allegations are without merit and that class action treatment is inappropriate. We have removed this case to federal court. The Company intends to vigorously defend itself against these claims, and believes at this time that any potential exposure is neither probable nor able to be estimated. To that end, we filed motions to dismiss the class action allegations on various grounds. After the filing of the motions to dismiss, the plaintiffs agreed to withdraw the class action allegations without prejudice and filed an amended complaint removing the class action portion of the allegations. 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, which 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 the Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations or cash flows. Other Matters On July 1, 2009, we entered into a Deferred Prosecution Agreement and associated Bill of Information (the DPA) with the United States Attorney for the Western District of North Carolina and a separate but related agreement with the United States Department of Housing and Urban Development (HUD) and the Civil Division of the United States Department of Justice (the HUD Agreement). We have satisfied our obligations under the DPA and in July 2014 the United States District Court for the Western Division of North Carolina dismissed the Bill of Information. However, under these agreements, we were obligated to make payments equal to 4% of “adjusted EBITDA,” as defined in the agreements, until the earlier of (a) September 30, 2016 or (b) the date that a cumulative $48.0 million had been paid pursuant to the DPA and the HUD Agreement. Accordingly, after making the fiscal year 2016 payments described below, our obligations under the HUD Agreement will expire. As of September 30, 2016, we have paid a cumulative $28.1 million related to the DPA and the HUD Agreement. Additionally, we have a liability of $6.9 million recorded on our consolidated balance sheet as of September 30, 2016 related to the DPA and the HUD Agreement. Our expense related to these agreements was $4.9 million, $5.3 million, and $5.4 million for our fiscal 2016, 2015 and 2014, respectively, and was recorded in G&A in our consolidated statements of income. 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 part by insurance. In our opinion, based on our current assessment, the ultimate resolution of these matters will not have a material adverse effect on our financial condition, results of operations or cash flows. We have an accrual of $10.2 million and $12.6 million in other liabilities on our consolidated balance sheets related to litigation and other matters, excluding warranty, as of September 30, 2016 and 2015, respectively. We had outstanding letters of credit and performance bonds of approximately $50.3 million and $207.6 million, respectively, as of September 30, 2016, related principally to our obligations to local governments to construct roads and other improvements in various developments. We had an immaterial amount of outstanding letters of credit relating to our land option contracts as of September 30, 2016. |
Fair Value Measurements |
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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:
Certain of our assets are required to be recorded at fair value on a recurring basis. The fair value of our deferred compensation plan assets is based on market-corroborated inputs (Level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recovered. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value on assets deemed to be impaired is determined based upon the type of asset being evaluated. Fair value of our owned inventory assets, when required to be calculated, is further discussed within Notes 2 and 5. The fair value of our investments in unconsolidated entities is determined primarily using a discounted cash flow model to value the underlying net assets of the respective entities. During the fiscal year ended September 30, 2016, we recorded $13.7 million in impairments on projects in process and impairments on land held for sale impairments of $0.8 million. During the fiscal year ended September 30, 2015, we recorded impairments related to land held for sale of $1.4 million. During the fiscal year ended September 30, 2014, we recorded impairments related to projects in progress of $5.4 million and impairments on land held for sale of $0.2 million. See Notes 2, 5 and 15 for additional information related to the fair value accounting for the assets listed below. Determining which hierarchical level an asset or liability falls within requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table presents the period-end balances of our assets measured at fair value on a recurring basis, and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis, for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented:
(a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis. (c) Amount represents the impairment-date fair value of the projects in progress that we impaired during the periods indicated. Refer to Note 5 for additional discussion. (d) Amount represents the impairment-date fair value of certain land held for sale assets that were impaired during periods indicated. Refer to Note 5 for additional discussion. The fair value of our cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, amounts due under the Facility (if outstanding) and other secured notes payable approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value. The following table presents the carrying value and estimated fair value of certain of our other financial liabilities as of September 30, 2016 and September 30, 2015:
(a) Carrying amounts are net of unamortized debt premium/discounts, debt issuance costs or accretion. (b) The estimated fair value for our publicly-held Senior Notes has been determined using quoted market rates (Level 2). |
Operating Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Operating Leases | Operating Leases We are obligated under various noncancelable operating leases for our office facilities and equipment. Rental expense under these agreements, which is included in G&A in our consolidated statements of income, amounted to approximately $4.7 million, $5.2 million and $5.4 million for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. This rental expense excludes expense related to our discontinued operations, which is not material in any period presented. Additionally, sublease income received in all periods presented was not material. As of September 30, 2016, future minimum lease payments under noncancelable operating lease agreements are as follows:
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Other Liabilities |
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Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other Liabilities Other liabilities include the following as of September 30, 2016 and September 30, 2015:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Our expense (benefit) from income taxes from continuing operations consists of the following for the periods presented:
(a) Fiscal 2015 benefit is due to release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion below titled “Valuation Allowance.” (b) Fiscal 2016 expense includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.” The expense (benefit) from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented:
(a) For fiscal 2015, amount includes $335.2 million release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion below titled “Valuation Allowance.” (b) For fiscal 2016, amount includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.” The principal differences between our effective tax rate and the U.S. federal statutory rate relate to state taxes, changes in our valuation allowance and tax credits. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2016 and September 30, 2015:
(a) For fiscal 2016, amount includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.” As of September 30, 2016, our gross deferred tax assets above included $252.5 million for federal net operating loss carryforwards, $31.6 million for state net operating loss carryforwards, $9.8 million for an alternative minimum tax credit and $7.1 million for general business credits. The net operating loss carryforwards expire at various dates through 2033, and the general business credits expire at various dates through 2036. The alternative minimum tax credit has an unlimited carryforward period. 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 (NOLs) 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. The actual realization of our deferred tax assets is difficult to predict and is dependent on future events. We recognized income tax expense from continuing operations of $16.5 million in our fiscal 2016, compared to income tax benefits from continuing operations of $324.6 million and $41.8 million in our fiscal 2015 and fiscal 2014, respectively. The income tax expense in our fiscal 2016 primarily resulted from income in the current year and the additional valuation allowance on some of our state deferred tax assets (refer to additional discussion below, titled “Valuation Allowance”), offset by the generation of federal tax credits. The income tax benefit in our fiscal 2015 primarily resulted from the release of a substantial portion of the valuation allowance on our deferred tax assets. In fiscal 2014, our income tax benefit was due to the resolution of a federal tax audit, which resulted in a refund of $26.8 million, as well as the recognition of unrecognized tax benefits of $14.3 million. Due to the effects of changes in our valuation allowance on our deferred tax balance and changes in our unrecognized tax benefits, our effective tax rates in fiscal 2016, 2015 and 2014 are not meaningful metrics, as our income tax amounts were not directly correlated to the amount of our pretax income (loss) for those periods. 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, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the more-likely-than-not realization threshold criterion. In the assessment for a valuation allowance, 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 loss carryforwards not expiring unused and tax planning alternatives. Based upon an evaluation of all available evidence, the most important of which was recent losses incurred, we established a valuation allowance for substantially all of our deferred tax assets during our fiscal 2008. We have continued to evaluate the need for our valuation allowance by assessing all positive and negative evidence indicating our ability to realize our deferred tax assets. In these evaluations, we gave more significant weight to objective evidence, such as our actual financial condition and results of operations, as compared to subjective evidence. The positive evidence we considered as part of our analysis during the fourth quarter of 2015 included our recent trends in cumulative income from continuing operations, along with our growth in backlog units, closings and ASP for both backlog and actual closings. Our levels of backlog (in both units and dollars) supported our expectations of future profitability. The negative evidence we considered as part of our analysis centered around significant quarterly losses that the Company incurred through the quarter ended March 31, 2013, which rolled-off our 36-month cumulative income position during the first half of our fiscal 2016. The removal of these losses from our analysis provided a significant increase in our recent earnings trend and, coupled with our actual improvements in continuing operations, pointed to an objectively verifiable increase in our earnings profile. Therefore, during the quarter ended September 30, 2015, we concluded that it was more likely than not that a substantial amount of our deferred tax assets would be realized. This conclusion was based on an evaluation of all relevant evidence, both positive and negative, as discussed above, as well as a generally improving housing market and stabilization in broader economic conditions. The principal positive evidence that led us to this determination was our improved pre-tax earnings profile, particularly over our most recent fiscal years. Given the remaining recovery period for the majority of our deferred tax assets, our recent historical operating results continued to support the realization of a significant amount of our deferred tax assets. The valuation allowance on our deferred tax assets was $57.7 million as of September 30, 2015. The remaining valuation allowance was balanced between various federal and state attributes for which the Company had concluded it is not more likely than not that these attributes would be realized at that time. During our fiscal 2016, we continued to monitor the various factors that led to our determination of the realization of a significant portion of our deferred tax assets during the prior fiscal year. Our fiscal 2016 income from continuing operations, less certain charges including loss on extinguishment of debt and impairments and abandonments, continues to reflect the positive trends of recent years, along with increases in closings and ASP from closings. We continue to maintain levels of backlog and community count to support our expectations of future profitability. During the current fiscal year, the Company enacted a plan to repurchase portions of its outstanding debt, which altered its debt maturity and interest rate profile through new issuances and redemptions of prior issuances. The change in the Company's debt portfolio will create future interest expense savings that further support its estimates of future profitability, and may result in the realization of additional deferred tax assets in the future. As of September 30, 2016, the Company will have to cumulatively generate approximately $760.0 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 2036. During our current fiscal year, we contemplated various tax planning strategies based on our operations profile. This planning resulted in a restructuring effort immediately following the close of our fiscal 2016, where we executed certain tax elections and a number of changes to the legal forms of our operating entities, which will significantly reduce our income profile in certain state jurisdictions going forward. We expect this restructuring to reduce our effective tax rate in fiscal 2017 to an amount that is in-line with our peers through a significant reduction in our state effective tax rate. In addition, the restructure provides cash tax savings in various jurisdictions where we no longer have significant state loss carryforwards available. In conjunction with the restructure, we also evaluated our ability to realize certain state components of our deferred tax asset. Given this change, we evaluated both positive and negative evidence, including consideration of a change in expected future taxable earnings in the separate state jurisdictions that will be impacted by the restructuring. Based on those evaluations, we recorded an additional $8.6 million in valuation allowance during the quarter ended September 30, 2016 for state deferred tax assets we concluded are no longer more likely than not to be realized. The remaining valuation allowance of $66.3 million as of September 30, 2016 was balanced between various federal and state attributes for which the Company has concluded it is not more likely than not that these attributes would be realized at that time. Unrecognized Tax Benefits A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented:
If we were to recognize our $4.5 million of gross unrecognized tax benefits remaining as of September 30, 2016, substantially all would impact our effective tax rate. Additionally, we had $0.3 million and $0.4 million, respectively, of accrued interest and penalties as of September 30, 2016 and 2015. Our income tax expense includes tax-related interest. In the normal course of business, we are subject to audits by federal and state tax authorities regarding various tax liabilities. Certain state income tax returns for various fiscal years are under routine examination. The statute of limitations for our major tax jurisdictions remains open for examination for fiscal years 2007 and subsequent years. As of September 30, 2016, it is reasonably possible that none of our uncertain tax positions will reverse within the next twelve months. |
Stockholders' Equity |
12 Months Ended |
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Sep. 30, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock. We currently have no shares of preferred stock outstanding. Common Stock. As of September 30, 2016, we had 63,000,000 shares of common stock authorized and 33,071,331 shares both issued and outstanding. Common Stock Repurchases. During our fiscal 2016, 2015 and 2014, we did not repurchase any shares of our common stock in the open market. Any future stock repurchases, to the extent allowed by our existing debt covenants, must be approved by the Company's Board of Directors or its Finance Committee. During our fiscal 2016, 2015 and 2014, 16,779, 10,302 and 23,602 shares of our common stock, respectively, were surrendered to us by employees as payment of minimum tax obligations upon the vesting of restricted stock awards under our stock incentive plans. We valued the surrendered stock at the market price on the date of surrender, for an aggregate value of approximately $222 thousand in fiscal 2016, $192 thousand in fiscal 2015 and $450 thousand in fiscal 2014. 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 2016, 2015 or 2014. Section 382 Rights Agreement. In February 2011, the Company’s stockholders approved an amendment to the Company’s Certificate of Incorporation (the Protective Amendment) designed to preserve the value of certain tax assets associated with NOL carryforwards under Section 382. In February 2013, the Company’s stockholders approved an extension of the term of the Protective Amendment and approved a Section 382 Rights Agreement that was adopted by our Board of Directors. These instruments are intended to act as deterrents to any person or group, together with their affiliates and associates, from being or becoming the beneficial owner of 4.95% or more of the Company’s common stock. In February 2016, the Company’s stockholders approved an extension of the Protective Amendment to November 12, 2019 and approved a new Section 382 Rights Agreement adopted by our Board of Directors with an expiration date of November 14, 2019. |
Retirement and Deferred Compensation Plan |
12 Months Ended |
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Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement and Deferred Compensation Plan | Retirement and Deferred Compensation Plans 401(k) Retirement Plan. We sponsor 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 after completing one calendar month of service. Participants may defer and contribute from 1% to 80% of their salary to the Plan, with certain limitations on highly compensated individuals. We match 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. Our total contributions for the fiscal years ended September 30, 2016, 2015 and 2014 were approximately $2.6 million, $2.4 million and $2.0 million, respectively. During fiscal 2016, 2015 and 2014, participants forfeited $0.4 million, $0.5 million and $0.4 million, respectively, of unvested matching contributions. Deferred Compensation Plan. The Beazer Homes USA, Inc. Deferred Compensation Plan (the DCP Plan) is a non-qualified deferred compensation plan for a select group of executives and highly compensated employees. The DCP Plan 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 Plan 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 Plan is voluntary. Beazer Homes may voluntarily make a contribution to the participants' DCP accounts. Deferred compensation assets of $0.8 million and $0.7 million and deferred compensation liabilities of $3.0 million and $2.6 million as of September 30, 2016, and 2015, respectively, are included in other assets and other liabilities on our consolidated balance sheets, and are recorded at fair value. For the years ended September 30, 2016, 2015 and 2014, we contributed approximately $204,000, $227,000 and $212,000, respectively, to the DCP Plan in the form of voluntary contributions. |
Stock-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock-Based Compensation During fiscal 2014, we adopted, and our stockholders approved, the 2014 Beazer Homes USA, Inc. Long-Term Incentive Plan (the 2014 Plan). Following adoption of the 2014 Plan, shares available for grant under our 2010 Equity Incentive Plan (the 2010 Plan) remain available for grant in accordance with the terms of that plan. However, there are no more shares available for future issuance under our Amended and Restated 1999 Stock Incentive Plan (the 1999 Plan). We issue new shares upon the exercise of stock options and the vesting of restricted stock awards. In cases of forfeitures and shares returned to us for taxes, those shares are returned to the share pool for future issuance. As of September 30, 2016, we had approximately 1.5 million shares of common stock for issuance under our various equity incentive plans, of which approximately 0.8 million shares are available for future grants. Our total stock-based compensation expense is included in G&A expenses in our consolidated statements of income and recognized as an expense using the straight-line method over the vesting period. A summary of the expense related to stock-based compensation by award type is as follows for the periods presented:
(a) Tax impact is zero due to the existence of a valuation allowance on our deferred tax assets in prior year periods. Stock Options. We have issued stock options to officers and key employees under the 2014 Plan, the 2010 Plan and the 1999 Plan. Stock options have an exercise price equal to the fair market value of the common stock on the grant date, vest three years after the date of grant and may be exercised thereafter until their expiration, subject to forfeiture upon termination of employment as provided in the applicable plan. Under certain conditions of retirement, eligible participants may receive a partial vesting of stock options. Stock options generally expire on the seventh or eighth anniversary from the date such options were granted depending on the terms of the award. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model (Black-Scholes Model). The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price. As of September 30, 2016, the intrinsic value of our stock options outstanding, vested and expected to vest and exercisable were $0.4 million, $0.4 million and $0.1 million, respectively. As of September 30, 2016 and September 30, 2015, there was $0.4 million and $0.5 million, respectively, of total unrecognized compensation cost related to nonvested stock options. The cost remaining as of September 30, 2016 is expected to be recognized over a weighted average period of 1.7 years. During the current fiscal year, the Compensation Committee of our Board of Directors approved the Employee Stock Option Program (EOP). This program is available to all full-time employees, other than our senior leadership team, and is designed to enable employees to share in potential price appreciation of the Company's stock. The EOP 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 stock is purchased. 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 EOP is limited to 100,000, of which 84,849 options were granted during the current fiscal year. During the year ended September 30, 2016, we issued 125,449 stock options, including those issued under the EOP, each for one share of the Company's stock. These stock options typically vest ratably over three years from the date of grant, or two years from the date of grant if issued under the EOP. We used the following assumptions for stock options granted, which derived the weighted average fair value shown, for the period presented:
(a) N/A - Not applicable, as no stock options were granted during the period. 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 risk-free interest rate is based on the term structure of interest rates at the time of the option grant. Activity related to stock options is as follows for the periods presented:
The following table summarizes information about stock options outstanding and exercisable as of September 30, 2016:
Restricted Stock Awards. The fair value of each restricted stock award with any market conditions is estimated on the date of grant using the Monte Carlo valuation method. The fair value of any 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, 2016 and September 30, 2015, there was $11.0 million and $11.7 million, respectively, of total unrecognized compensation cost related to nonvested restricted stock awards. The cost remaining as of September 30, 2016 is expected to be recognized over a weighted average period of 1.8 years. We have issued restricted stock awards to officers and key employees under both the 2014 Plan and the 2010 Plan. During our fiscal 2016, we issued two types of restricted stock awards as follows: (1) performance-based restricted stock awards with a payout based on the Company's performance and certain market conditions and (2) time-based restricted stock awards. Each award type is discussed further below. Performance-Based Restricted Stock Awards. During the year ended September 30, 2016, we issued 231,624 shares of performance-based restricted stock (2016 Performance Shares) to our executive officers and certain other employees that also have market conditions. The 2016 Performance Shares are structured to be awarded based on the Company's performance under three pre-determined financial metrics at the end of the three-year performance period. After determining the number of shares earned based on the financial 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 2016 Performance Shares were valued using the Monte Carlo valuation model due to the existence of the TSR market condition and had an estimated fair value of $15.43 per share on the date of grant. A Monte Carlo valuation model requires the following inputs: (1) the expected dividend yield on the underlying stock; (2) the expected price volatility of the underlying stock; (3) the risk-free interest rate for the period corresponding with the expected term of the award; and (4) the fair value of the underlying stock. For the Company and each member of the peer group, the following inputs were used, as applicable, in the Monte Carlo valuation model to determine the fair value as of the grant date for the 2016 Performance Shares: 0% dividend yield for the Company, expected price volatility ranging from 29.9% to 151.2% and a risk-free interest rate of 1.21%. 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. Each 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. Any 2016 Performance Shares earned in excess of the target number of 231,624 may be settled in cash or additional shares at the discretion of the Compensation Committee. Any portion of these shares that do not vest at the end of the period will be forfeited. Time-Based Restricted Stock Awards. During the year ended September 30, 2016, we also issued 259,819 shares of time-based restricted stock (Restricted Shares) to our directors, executive officers and certain other employees. Restricted Shares are valued based on the market price of the Company's common stock on the date of the grant. The Restricted Shares granted to our non-employee directors vest on the first anniversary of the grant, while the Restricted Shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant. Activity relating to all restricted stock awards is as follows for the periods presented:
(a) The shares granted for the years ended September 30, 2016, 2015 and 2014 include 231,624, 201,157 and 28,690 performance-based restricted shares, respectively. The remaining shares granted are time-based restricted shares. (b) No performance-based restricted shares vested during the years ended September 30, 2016, 2015 and 2014. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic income per share is calculated by dividing net income by the weighted average number of shares outstanding during the period. Diluted income per share adjusts the basic income per share for the effects of any potentially dilutive instruments, only in periods in which the Company has net income and such effects are dilutive under the treasury stock method. Basic and diluted income per share is calculated using unrounded numbers. For the years ended September 30, 2016, 2015 and 2014, 1.5 million, 1.1 million and 0.6 million shares related to nonvested stock-based compensation awards, respectively, were excluded from our calculation of diluted income per share as a result of their anti-dilutive effect. The weighted-average number of common shares outstanding used to calculate basic income per share is reconciled to shares used to calculate diluted income per share as follows for the periods presented:
(a) In July 2015, the remaining prepaid stock purchase contracts related to our previously outstanding Tangible Equity Units were settled in Beazer Homes' common stock. This conversion required us to issue approximately 5.2 million shares of common stock to the instrument holders. These instruments were dilutive from October 1, 2014 through July 15, 2015; once the shares were converted, they were included in the number of the weighted-average basic shares outstanding. (b) N/A - Not applicable |
Segment Information |
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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, land sale and other revenues less home construction, land development and land sales expense, commission expense, depreciation and amortization and certain G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are those described in Note 2. The following tables contain our revenue, operating income and depreciation and amortization by segment for the periods presented:
(a) Operating income for our Southeast segment for the years ended September 30, 2016, 2015 and 2014 was impacted by unexpected warranty costs related to the Florida stucco issues, net of expected insurance recoveries. This impact was a credit of $3.6 million in fiscal 2016, and expense of $13.6 million and $4.3 million in fiscal 2015 and 2014, respectively. (b) Corporate and unallocated operating loss includes amortization of capitalized interest; movement in capitalized indirects; expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing; and certain other amounts that are not allocated to our operating segments. For the year ended September 30, 2016, the Corporate and unallocated operating loss includes a $15.5 million reduction in home construction expenses resulting from an agreement entered into during the current fiscal year with our third-party insurer to resolve certain issues related to the extent of our insurance coverage (refer to Note 9). Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by corporate functions that benefit all segments. The following table contains our capital expenditures by segment for the periods presented:
(a) Amount for fiscal 2015 includes non-cash capital expenditure; refer to Note 3. The following table contains our asset balance by segment as of September 30, 2016 and 2015:
(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirects and other items that are not allocated to the segments. |
Supplemental Guarantor Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Information | Supplemental Guarantor Information As discussed in Note 8, our obligations to pay principal, premium, if any, and interest under certain debt are guaranteed on a joint and several basis by substantially all of our subsidiaries. Certain of our immaterial subsidiaries do not guarantee our Senior Notes, Term Loan, or the Facility. The guarantees are full and unconditional and the guarantor subsidiaries are 100% owned by Beazer Homes USA, Inc. The following financial information presents the line items of our consolidated financial statements separated by amounts related to the parent issuer, guarantor subsidiaries, non-guarantor subsidiaries and consolidating adjustments as of or for the periods presented. Beazer Homes USA, Inc. Condensed Consolidating Balance Sheet Information September 30, 2016 (In thousands)
Beazer Homes USA, Inc. Condensed Consolidating Balance Sheet Information September 30, 2015 (In thousands)
Beazer Homes USA, Inc. Consolidating Statements of Income and Comprehensive Income Information (In thousands)
Beazer Homes USA, Inc. Consolidating Statements of Income and Comprehensive Income Information (In thousands)
Beazer Homes USA, Inc. Condensed Consolidating Statements of Cash Flow Information (In thousands)
Beazer Homes USA, Inc. Condensed Consolidating Statements of Cash Flow Information (In thousands)
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Discontinued Operations |
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Discontinued Operations | Discontinued Operations We continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase stockholder value. This review entails an evaluation of both external market factors and our position in each market, and over time has resulted in the decision to discontinue certain of our homebuilding operations. During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, the results of our New Jersey division are not included in the discontinued operations information shown below. We have classified the results of operations of our discontinued operations separately in the accompanying consolidated statements of income for all periods presented. There were no material assets or liabilities related to our discontinued operations as of September 30, 2016 or September 30, 2015. 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 income. The results of our discontinued operations in the consolidated statements of income were as follows for the periods presented:
(a) The year ended September 30, 2015 included a $3.7 million expense related to the probable liability of a case regarding alleged past construction defects in our discontinued operations in Denver, Colorado. (b) The year ended September 30, 2014 included approximately $1.9 million of recoveries received for legal fees related to outstanding matters in Denver, Colorado. |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Selected summarized quarterly financial information is as follows for the periods presented:
(b) Net income (loss) from continuing operations in fiscal 2016 and 2015 includes gain (loss) on extinguishment of debt as follows:
Additionally, net income from continuing operations for the quarter ended September 30, 2015 includes the $335.2 million release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion in Note 13. (c) Amounts shown above for EPS for the quarterly periods are calculated separately from the full fiscal year amounts. Accordingly, quarterly amounts will not add to the respective annual amount. |
Subsequent Event |
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Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 13, 2016, we executed a Third Amendment to the Facility. The Third Amendment (1) extends the termination date of the Facility from January 15, 2018 to February 15, 2019; (2) increases the maximum aggregate amount of commitments under the Facility (including borrowings and letters of credit) from $145.0 million to $180.0 million; (3) reduces the aggregate collateral ratio (as defined by the underlying Credit Agreement) from 5.00 to 1.00 to 4.00 to 1.00; and (4) reduces the after-acquired exclusionary condition (also as defined by the underlying Credit Agreement) from $1.0 billion to $800.0 million. |
Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and present the consolidated financial position, income, comprehensive income, stockholders' equity and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany balances have been eliminated in consolidation. 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 income for all periods presented (see Note 20 for a further discussion of our discontinued operations). We evaluated events that occurred after the balance sheet date but before these financial statements were issued for accounting treatment and disclosure. |
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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. |
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Cash and Cash Equivalents and Restricted Cash | 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, 2016, the majority of our cash and cash equivalents were invested in highly marketable securities, or were on deposit with major banks. These assets were valued at par and had no withdrawal restrictions. The underlying investments of these funds were U.S. Government and U.S. Government Agency obligations or high-quality marketable securities. 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). The cash inflows and outflows related to restricted cash are classified as investing activities in our consolidated statements of cash flows. |
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Accounts Receivables | Accounts Receivable. 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, insurance recovery receivables, 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 collectiblity and record an allowance against any receivable for which collectiblity is deemed to be uncertain. |
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Inventory | Inventory. Owned inventory consists solely of residential real estate developments. Interest, real estate taxes and development costs are capitalized in inventory during the development and construction period. Construction and land costs are comprised of direct and allocated costs, such as for amenities and estimated costs for future warranties. Land, land improvements and other common costs are typically allocated to individual residential lots on a pro-rata basis, and the costs of residential lots are transferred to homes under construction when home construction begins. Land not owned under option agreements, if outstanding, represents the value of land under option agreements with a variable interest entity (VIE) where the Company is deemed to be the primary beneficiary of the VIE. VIEs are entities in which (1) equity investors do not have a controlling financial interest and/or (2) the entity is unable to finance its activities without additional subordinated financial support from other parties (refer to section below entitled “Land Not Owned Under Option Agreements” for a further discussion of VIEs). In addition, when our deposits and pre-acquisition development costs exceed certain thresholds, we record the remaining purchase price of the lots as consolidated inventory not owned and obligations related to consolidated inventory not owned on our consolidated balance sheets. |
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Inventory Valuation - Projects in Progress | Inventory Valuation - Projects in Progress. Our homebuilding inventories that are accounted for as held for development (projects in progress) include land and home construction assets grouped together as communities. Homebuilding inventories held for development are stated at cost (including direct construction costs, capitalized indirect costs, capitalized interest and real estate taxes) unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We assess these assets no less than quarterly for recoverability. Generally, upon the commencement of land development activities, it may take three to five years (depending on, among other things, the size of the community and its sales pace) to fully develop, sell, construct and close all the homes in a typical community. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If the expected undiscounted cash flows generated are expected to be less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such asset to its estimated fair value based on discounted cash flows. When conducting our community level review for the recoverability of our homebuilding inventory related to projects in progress, we establish a quarterly “watch list” of communities that carry profit margins in backlog or in our forecast that are below a minimum threshold of profitability, as well as recent closings that have gross margins less than a specified threshold. In our experience, this threshold represents a level of profitability that may be an indicator of conditions that would require an asset impairment, but does not necessitate that such an impairment is warranted without additional analysis. Each community is first evaluated qualitatively to determine if there are temporary factors driving the low profitability levels. Following our qualitative evaluation, communities with more than 10 homes remaining to close are subjected to substantial additional financial and operational analyses and review that consider the competitive environment and other factors contributing to profit margins below our watch list threshold. For communities where the current competitive and market dynamics indicate that these factors may be other than temporary, which may call into question the recoverability of our investment, a formal impairment analysis is performed. The formal impairment analysis consists of both qualitative competitive market analyses and a quantitative analysis reflecting market and asset specific information. Our qualitative competitive market analyses include site visits to new home communities of our competitors and written community-level competitive assessments. A competitive assessment consists of a comparison of our specific community with its competitor communities, considering square footage of homes offered, amenities offered within the homes and the communities, location, transportation availability and school districts, among other relevant attributes. In addition, we review the pace of monthly home sales of our competitor communities in relation to our specific community. We also review other factors, such as the target buyer and the macro-economic characteristics that impact the performance of our asset, including unemployment and the availability of mortgage financing, among other things. Based on this qualitative competitive market analysis, adjustments to our sales prices may be required in order to make our communities competitive. We incorporate these adjusted prices in our quantitative analysis for the specific community. The quantitative analyses compare the projected future undiscounted cash flows for each such community with its current carrying value. This undiscounted cash flow analysis requires important assumptions regarding the location and mix of house plans to be sold, current and future home sale prices and incentives for each plan, current and future construction costs for each plan and the pace of monthly sales to occur today and into the future. There is uncertainty associated with preparing the undiscounted cash flow analyses because future market conditions will almost certainly be different, either better or worse, than current conditions. The single most important input to the cash flow analysis is current and future home sales prices for a specific community. The risk of over or under-stating any of the important cash flow variables, including home prices, is greater with longer-lived communities and within markets that have historically experienced greater home price volatility. In an effort to address these risks, we consider some home price and construction cost appreciation in future years for certain communities that are expected to be selling for more than three years and/or if the market has typically exhibited high levels of price volatility. Absent these assumptions on cost and sales price appreciation, we believe the long-term cash flow analysis would be unrealistic and would serve to artificially improve expected future profitability. Finally, we also ensure that the monthly sales absorptions, including historical seasonal differences of our communities and those of our competitors, used in our undiscounted cash flow analyses are realistic, consider our development schedules and relate to those achieved by our competitors for the specific communities. If the aggregate undiscounted cash flows from our quantitative analyses are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the aggregate undiscounted cash flows are less than the carrying or book value, we perform a discounted cash flow analysis to determine the fair value of the community. 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 assets. The discount rate used may be different for each community. The factors considered when determining an appropriate discount rate for a community include, among others: (1) community specific factors such as the number of lots in the community, the status of land development in the community and the competitive factors influencing the sales performance of the community and (2) overall market factors such as employment levels, consumer confidence and the existing supply of new and used homes for sale. If the determined fair value is less than the carrying value of the specific asset, the asset is considered not recoverable and is written down to its fair value. The carrying value of assets in communities that were previously impaired and continue to be classified as projects in progress is not increased for future estimates of increases in fair value in future reporting periods. However, market deterioration that exceeds our initial estimates may lead us to incur additional impairment charges on previously impaired homebuilding assets. |
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Asset Valuation - Land Held for Future Development and Sale | Asset Valuation - Land Held for Future Development. For those communities that have been idled (land held for future development), all applicable interest and real estate taxes are expensed as incurred, and the inventory is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, 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. Asset Valuation - Land Held for Sale. We record assets held for sale at the lower of the asset's carrying value or fair value less costs to sell. The following criteria are used to determine if land is held for sale: •management has the authority and commits to a plan to sell the land; •the land is available for immediate sale in its present condition; •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. Additionally, in certain circumstances, such as a change in strategy, management will re-evaluate the best use of an asset that is currently being accounted for as held for development. In such instances, management will review, among other things, the current and projected competitive circumstances of the community, including the level of supply of new and used inventory, the level of sales absorptions by us and our competition, the level of sales incentives required and the number of owned lots remaining in the community. If, based on this review, we believe that the best use of the asset is the sale of all or a portion of the asset in its current condition, then all or portions of the community are accounted for as held for sale if the foregoing criteria have been met as of the end of the applicable reporting period. 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 estimated fair value less cost to sell of an asset is less than its current carrying value, the asset is written down to its estimated fair value less cost to sell. |
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Land Not Owned Under Option Agreements | Land Not Owned Under Option Agreements. 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 contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period of time at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option contracts, 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. In accordance with GAAP, if the entity holding the land under option is a VIE, the Company's deposit represents a variable interest in that entity. To determine whether we are the primary beneficiary of the VIE, we are first required to 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 cash deposits already paid, to land not owned under option agreements with an offsetting increase to obligations related to land not owned under option agreements 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 land not owned under option agreement. Consolidation of these VIEs has no impact on the Company’s statements of income or cash flows. |
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Investments in Unconsolidated Entities and Marketable Securities | Investments in Unconsolidated Entities and Marketable Securities. 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. 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. In prior periods, we had an investment in American Homes 4 Rent (AMH), a marketable investment that we treated as an available-for-sale security. All available-for-sale securities, while outstanding, are recorded at fair value, with changes in fair value being recorded as a component of accumulated other comprehensive income (AOCI). When the security is sold, we use specific identification to determine the cost of the security sold for the amount reclassified out of AOCI. We evaluate our investments in marketable securities, if outstanding, for impairment each reporting period. In doing so, we consider the length of time and extent to which the marketable value of the investment has been less than cost, either or both of which may lead to a conclusion that the security is other than temporarily impaired. |
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Property and Equipment | Property and Equipment. Our property and equipment is recorded at cost. Depreciation is computed on a straight-line basis based on estimated useful lives as follows:
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Other Assets | Other Assets. Our other assets principally include prepaid expenses and assets related to our deferred compensation plan (refer to Note 15 for a discussion of our deferred compensation plan). |
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Other Liabilities | Other Liabilities. Our other liabilities principally include accrued warranty expense, accrued interest on our outstanding borrowings, customer deposits, income tax liabilities and other accruals related to our operations. |
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Income Taxes | 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. Changes in recognition of measurement are recorded in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. |
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Revenue Recognition and Classification of Costs | Revenue Recognition and Classification of Costs. Revenue and related profit are recognized by us at the time of the closing of a sale, when title to and possession of the property, as well as risk of loss, are transferred to the buyer. Sales discounts and incentives include items such as cash discounts, discounts on options included in the home, option upgrades (such as upgrades for cabinetry, countertops and flooring) and seller-paid financing or closing costs. In addition, from time-to-time, we may also provide homebuyers with retail gift certificates and/or other nominal retail merchandise. All sales incentives other than cash discounts are recognized as a cost of selling the home and are included in home construction expense in our consolidated statements of income. Cash discounts are accounted for as a reduction in the sales price of the home, thereby decreasing the amount of revenue we recognize on that closing. 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 0.4% to 1.2% of total revenue recognized for each home closed. Additional warranty costs are charged to home construction expense 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 related to continuing operations of $19.2 million, $18.0 million and $17.8 million for our fiscal years 2016, 2015 and 2014, respectively, were expensed as incurred and were included in general and administrative (G&A) expenses. |
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Fair Value Measurements | Fair Value Measurements. Certain of our assets are required to be recorded at fair value on a recurring basis. The fair value of our available-for-sale marketable equity securities, when outstanding, was based on readily available share prices (level 1). 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 instruments are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. The fair value of our investments in unconsolidated entities is determined primarily using a discounted cash flow model to value the underlying net assets of the respective entities. |
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Stock-Based Compensation | Stock-Based Compensation. We use the Black-Scholes model to value our stock option grants. Other stock-based awards with only performance conditions granted to employees are valued based on the market price of the common stock on the date of the grant. Stock-based awards with market conditions granted to employees are valued using the Monte Carlo valuation method. Any portion of our stock-based awards that can be settled in cash is initially valued based on the market price of the underlying common stock on the date of the grant, and is adjusted to fair value until vested and recorded as a liability on our consolidated balance sheets. On the date of grant, we estimate forfeitures in calculating the expense related to stock-based compensation. 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 income. |
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Recent Accounting Pronouncements | Adoption of ASU 2015-03 did not impact our other consolidated financial statements in any periods presented. Stock Compensation. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (ASU 2016-09). ASU 2016-09 simplifies several aspects of accounting for employee stock-based compensation. First, ASU 2016-09 requires that all tax benefits and deficiencies related to share-based payments be recorded as income tax expense in the income statement, thereby eliminating the concept of the “APIC pool” contained in current guidance. This change is required to be applied prospectively to all excess tax benefits (“windfalls”) and tax deficiencies (“shortfalls”) resulting from settlements after the date of the adoption of the ASU. Second, ASU 2016-09 permits entities to make an election to either estimate forfeitures or recognize them when they occur. If elected, the change to recognize forfeitures when they occur needs to be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to opening retained earnings. Third, ASU 2016-09 modifies the current exception to liability classification of an award when the employer withholds shares to meet tax withholding requirements. Finally, the classification of certain transactions related to share-based payments within the statement of cash flows is clarified within the ASU. The Company adopted the guidance within ASU 2016-09 as of September 30, 2016. The impact of the adoption was not material to our consolidated financial statements, including prior year statements of cash flows, which were not restated. We continue to estimate forfeitures in calculating the expense related to stock-based compensation, and have therefore not elected to recognize forfeitures as they occur. Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 requires companies to recognize revenue at an amount that the entity expects to be entitled to upon transferring control of goods or services to a customer, as opposed to when risks and rewards transfer to a customer under the existing revenue recognition guidance. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 for one year, which makes the guidance effective for the Company's first fiscal year beginning after December 15, 2017. Additionally, the FASB also is permitting entities to early adopt the standard, which allows for either full retrospective or modified retrospective methods of adoption, for reporting periods beginning after December 15, 2016. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements, and have been involved in industry-specific discussion with the FASB on the treatment of certain items. Leases. In February 2016, the FASB issued ASU 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires lessees to record most leases on their balance sheets. The timing and classification of lease-related expenses for lessees will depend on whether a lease is determined to be a finance lease or an operating lease using updated criteria within ASU 2016-02. Operating leases will result in straight-line expense (similar to current operating leases), while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Regardless of lease type, the lessee will recognize a right-of-use asset, representing the right to use the identified asset during the lease term, and a related lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the current lease accounting rules. The guidance within ASU 2016-02 will be effective for the Company's first fiscal year beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 must be adopted using a modified retrospective approach, which requires application of the standard at the beginning of the earliest comparative period presented, with certain optional practical expedients. ASU 2016-02 also requires significantly enhanced disclosures around an entity's leases and the related accounting. We are currently evaluating the impact of ASU 2016-02 on our consolidated financial statements. Recent Accounting Pronouncements Presentation of Debt Issuance Costs. In April 2015, the FASB issued Accounting Standards Update (ASU) 2015-03, Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires debt issuance costs to be presented on the balance sheet as a direct deduction from the related debt liability, similar to the presentation of debt discounts or premiums. The costs must continue to be amortized to interest expense. ASU 2015-03 requires retrospective application to all prior periods presented in the financial statements. In the fourth quarter of our current fiscal year, we early adopted ASU 2015-03, which requires us to comply with the applicable disclosures for a change in accounting principle. As a result of adoption of this guidance, certain line items within our consolidated balance sheets from prior fiscal years, as shown below, changed due to our movement of debt issuance costs from other assets to a direct deduction from our related debt liability. The debt issuance costs associated with our Secured Revolving Credit Facility remain in other assets on our consolidated balance sheets in accordance with ASU 2015-15, which states that an objection would not be made to an entity deferring such costs and continuing to present these as an asset until the costs are amortized ratably over the term of the line-of-credit agreement. |
Basis of Presentation and Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated useful lives | Depreciation is computed on a straight-line basis based on estimated useful lives as follows:
The following table presents our property and equipment as of September 30, 2016 and September 30, 2015:
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Schedule of New Accounting Pronouncements | The following table presents the changes to our consolidated balance sheet as of September 30, 2015 due to the adoption of ASU 2015-03:
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Supplemental Cash Flow Information (Tables) |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental disclosure of non-cash activity | The following table presents supplemental disclosure of non-cash and cash activity for the periods presented:
(a) For the fiscal year ended September 30, 2016, non-cash land acquisitions were comprised of lot takedowns from one of our unconsolidated land development joint ventures. For the fiscal year ended September 30, 2015, non-cash land acquisitions were comprised of $7.8 million related to non-cash seller financing and $5.1 million in lot takedowns from one of our unconsolidated land development joint ventures. (b) Elevated interest payments made during our fiscal 2016 is due to early redemption of certain of our outstanding debt obligations; refer to Note 8. |
Investments in Unconsolidated Entities and Marketable Securities (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in unconsolidated joint ventures, total equity and outstanding borrowings | The following table presents our investment in these unconsolidated entities, as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2016 and September 30, 2015:
Our equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented:
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Inventory (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventory | The components of our owned inventory are as follows as of September 30, 2016 and September 30, 2015:
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Schedule of total inventory by segment | Total owned inventory, by reportable segment, is presented in the table below as of September 30, 2016 and September 30, 2015:
(a) Projects in progress include homes under construction, development projects in progress, capitalized interest and model home categories from the preceding table. (b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within Corporate and unallocated. Land held for sale amount includes parcels held by our discontinued operations. |
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Schedule of inventory assets held for development by reportable segment | The table below summarizes the results of our undiscounted cash flow analysis by reportable segment, where applicable, for the periods ended September 30, 2016 and 2014 (the years that such analyses were required):
(a) We have elected to aggregate our disclosure at the reportable segment level because we believe this level of disclosure is most meaningful to the readers of our financial statements. (b) Number of communities in this column excludes communities that are closing out and have less than 10 closings remaining. As of September 30, 2016, six of these communities still remain on our watch list. (c) Number of communities in this column is lower than the number of communities on our watch list because it excludes communities due to certain qualitative considerations that would imply that the low profitability levels are temporary in nature. (d) An aggregate undiscounted cash flow as a percentage of book value under 100% would indicate a possible impairment and is consistent with our "watch list" methodology. While this metric for the communities in the West segment was above 100% for the year ended September 30, 2016 in total, for the two communities that we ultimately impaired, the metric was below 100%, while the metric for communities we did not impair was above 100%. (e) Amount represents capitalized interest and indirects balance related to communities for which an undiscounted cash flow analysis was prepared. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. (f) N/A - not applicable. (g) During the year ended September 30, 2014, we recorded an impairment charge of $0.1 million in our East segment on a single community. The community had less than 10 lots remaining to close at the time of the analysis and therefore, consistent with our policy, we did not prepare an undiscounted or discounted cash flow analysis related to this community. However, the community is shown here to list all communities for which an impairment was eventually recorded. |
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Summary of discounted cash flow analysis | The following table presents, by reportable segment, details around the impairment charges taken on projects in progress for the periods presented (no impairment were recorded on projects in progress during our fiscal 2015):
(a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. |
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Quantitative unobservable inputs for inventory impairment | The following table presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities we impaired during the periods presented (the years that such analyses were required):
(a) For the fiscal year ended September 30, 2016, the lower end of this ASP range was related to the communities we impaired in our West segment, while the higher end of the ASP range was for the community we impaired in our East segment. |
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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:
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Summary of interests in lot option agreements | The following table provides a summary of our interests in lot option agreements as of September 30, 2016 and September 30, 2015:
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Interest (Tables) |
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Real Estate Inventory Capitalized Interest Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of capitalized interest costs | The following table presents certain information regarding interest for the periods presented:
(a) The amount of interest we are able to capitalize is dependent upon our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sale 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) |
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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:
The following table presents our property and equipment as of September 30, 2016 and September 30, 2015:
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Borrowings (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | As of September 30, 2016 and September 30, 2015, we had the following debt, net of premium/discounts and unamortized debt issuance costs:
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Schedule of maturities of long-term debt | As of September 30, 2016, the future maturities of our borrowings were as follows:
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Debt instrument redemption | The table below summarizes the redemption terms for our Senior Notes:
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Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty reserves | Changes in our warranty reserves are as follows for the periods presented:
(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. The continued increase in the amount of accrual compared to the respective prior year periods is mainly due to an increase in the number of closings and the sales prices of homes closed, as well as increases in certain divisions' accrual rates. (b) Changes in liability related to warranties existing and payments made in all periods, particularly fiscal 2016 and fiscal 2015, are elevated due to charges and subsequent payments related to water intrusion issues in certain of our communities located in Florida (refer to separate discussion below). |
Fair Value Measurements (Tables) |
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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:
(a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis. (c) Amount represents the impairment-date fair value of the projects in progress that we impaired during the periods indicated. Refer to Note 5 for additional discussion. (d) Amount represents the impairment-date fair value of certain land held for sale assets that were impaired during periods indicated. Refer to Note 5 for additional discussion. |
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Schedule of carrying values and estimated fair values of other financial assets and liabilities | The following table presents the carrying value and estimated fair value of certain of our other financial liabilities as of September 30, 2016 and September 30, 2015:
(a) Carrying amounts are net of unamortized debt premium/discounts, debt issuance costs or accretion. (b) The estimated fair value for our publicly-held Senior Notes has been determined using quoted market rates (Level 2). |
Operating Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | As of September 30, 2016, future minimum lease payments under noncancelable operating lease agreements are as follows:
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Other Liabilities (Tables) |
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Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other liabilities | Other liabilities include the following as of September 30, 2016 and September 30, 2015:
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of income tax expense (benefit) | Our expense (benefit) from income taxes from continuing operations consists of the following for the periods presented:
(a) Fiscal 2015 benefit is due to release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion below titled “Valuation Allowance.” (b) Fiscal 2016 expense includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.” |
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Schedule of effective income tax rate reconciliation | The expense (benefit) from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented:
(a) For fiscal 2015, amount includes $335.2 million release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion below titled “Valuation Allowance.” (b) For fiscal 2016, amount includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.” |
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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, 2016 and September 30, 2015:
(a) For fiscal 2016, amount includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.” |
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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:
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Stock-based Compensation (Tables) |
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Sep. 30, 2016 |
Sep. 30, 2015 |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of allocation of share-based compensation costs by plan | A summary of the expense related to stock-based compensation by award type is as follows for the periods presented:
(a) Tax impact is zero due to the existence of a valuation allowance on our deferred tax assets in prior year periods. |
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Schedule of assumptions for stock option activity | We used the following assumptions for stock options granted, which derived the weighted average fair value shown, for the period presented:
(a) N/A - Not applicable, as no stock options were granted during the period. |
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Schedule of stock options and SSARs outstanding | Activity related to stock options is as follows for the periods presented:
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Schedule of stock options and SSARS outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable as of September 30, 2016:
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Schedule of nonvested stock awards and performance shares | Activity relating to all restricted stock awards is as follows for the periods presented:
(a) The shares granted for the years ended September 30, 2016, 2015 and 2014 include 231,624, 201,157 and 28,690 performance-based restricted shares, respectively. The remaining shares granted are time-based restricted shares. (b) No performance-based restricted shares vested during the years ended September 30, 2016, 2015 and 2014. |
Earnings Per Share (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted earnings per share | The weighted-average number of common shares outstanding used to calculate basic income per share is reconciled to shares used to calculate diluted income per share as follows for the periods presented:
(a) In July 2015, the remaining prepaid stock purchase contracts related to our previously outstanding Tangible Equity Units were settled in Beazer Homes' common stock. This conversion required us to issue approximately 5.2 million shares of common stock to the instrument holders. These instruments were dilutive from October 1, 2014 through July 15, 2015; once the shares were converted, they were included in the number of the weighted-average basic shares outstanding. (b) N/A - Not applicable |
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information | The following tables contain our revenue, operating income and depreciation and amortization by segment for the periods presented:
(a) Operating income for our Southeast segment for the years ended September 30, 2016, 2015 and 2014 was impacted by unexpected warranty costs related to the Florida stucco issues, net of expected insurance recoveries. This impact was a credit of $3.6 million in fiscal 2016, and expense of $13.6 million and $4.3 million in fiscal 2015 and 2014, respectively. (b) Corporate and unallocated operating loss includes amortization of capitalized interest; movement in capitalized indirects; expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing; and certain other amounts that are not allocated to our operating segments. For the year ended September 30, 2016, the Corporate and unallocated operating loss includes a $15.5 million reduction in home construction expenses resulting from an agreement entered into during the current fiscal year with our third-party insurer to resolve certain issues related to the extent of our insurance coverage (refer to Note 9). Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by corporate functions that benefit all segments. The following table contains our capital expenditures by segment for the periods presented:
(a) Amount for fiscal 2015 includes non-cash capital expenditure; refer to Note 3. The following table contains our asset balance by segment as of September 30, 2016 and 2015:
(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirects and other items that are not allocated to the segments. |
Supplemental Guarantor Information (Tables) |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidating balance sheet information |
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Consolidating statement of operations information |
Beazer Homes USA, Inc. Consolidating Statements of Income and Comprehensive Income Information (In thousands)
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Consolidating statements of cash flow information |
Beazer Homes USA, Inc. Condensed Consolidating Statements of Cash Flow Information (In thousands)
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Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of results of discontinued operations | The results of our discontinued operations in the consolidated statements of income were as follows for the periods presented:
(a) The year ended September 30, 2015 included a $3.7 million expense related to the probable liability of a case regarding alleged past construction defects in our discontinued operations in Denver, Colorado. (b) The year ended September 30, 2014 included approximately $1.9 million of recoveries received for legal fees related to outstanding matters in Denver, Colorado. |
Selected Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of quarterly financial information | Selected summarized quarterly financial information is as follows for the periods presented:
(b) Net income (loss) from continuing operations in fiscal 2016 and 2015 includes gain (loss) on extinguishment of debt as follows:
Additionally, net income from continuing operations for the quarter ended September 30, 2015 includes the $335.2 million release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion in Note 13. (c) Amounts shown above for EPS for the quarterly periods are calculated separately from the full fiscal year amounts. Accordingly, quarterly amounts will not add to the respective annual amount. |
Description of Business (Details) |
Sep. 30, 2016
state
region
|
---|---|
Description of Business [Abstract] | |
Number of states in which home building segments operate | state | 13 |
Number of regions in which entity operates | region | 3 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Supplemental disclosure of non-cash activity: | |||
Decrease in obligations related to land not owned under option agreements | $ 0 | $ (2,916) | $ (1,717) |
Decrease in debt related to conversion of Mandatory Convertible Subordinated Notes and Tangible Equity Units for common stock | 0 | 0 | (2,376) |
Sale of interest in REIT for shares of AMH | 0 | 0 | 26,040 |
Purchase of AMH shares in exchange for interest in REIT | 0 | 0 | (26,040) |
Non-cash land acquisitions | 8,265 | 12,904 | 20,274 |
Issuance of stock under deferred bonus stock plans | 0 | 0 | 103 |
Non-cash capital expenditure | 0 | 674 | 0 |
Supplemental disclosure of cash activity: | |||
Interest payments | 131,730 | 117,177 | 117,501 |
Income tax payments | 1,420 | 942 | 212 |
Tax refunds received | $ 201 | 0 | $ 33,271 |
Non-cash seller financing | 7,800 | ||
Lot takedown costs | $ 5,100 |
Investments in Unconsolidated Entities and Marketable Securities - Unconsolidated Entities (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Equity Method Investments and Joint Ventures [Abstract] | |||
Beazer’s investment in unconsolidated entities | $ 10,470 | $ 13,734 | |
Total equity of unconsolidated entities | 31,615 | 52,118 | |
Total outstanding borrowings of unconsolidated entities | 14,702 | 12,206 | |
Income from unconsolidated entity activity | $ 131 | $ 536 | $ 6,545 |
Investments in Unconsolidated Entities and Marketable Securities - Narrative (Details) - USD ($) |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Loss on sale of investments | $ 1,800,000 | |||
Fair value changes | $ 500,000 | |||
South Edge | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Amount paid for infrastructure and development costs | $ 4,500,000 | 3,300,000 | $ 1,000,000 | |
Remaining obligation | 700,000 | |||
Financial Guarantee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Impairment of unconsolidated entity investment | $ 0 | $ 0 |
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2013 |
---|---|---|---|---|
Real Estate [Abstract] | ||||
Homes under construction | $ 377,191 | $ 377,281 | ||
Development projects in progress | 742,417 | 809,900 | ||
Land held for future development | 213,006 | 270,990 | ||
Land held for sale | 29,696 | 44,555 | ||
Capitalized interest | 138,108 | 123,457 | $ 87,619 | $ 52,562 |
Model homes | 68,861 | 71,407 | ||
Total owned inventory | $ 1,569,279 | $ 1,697,590 |
Inventory Inventory - Quantitative Unobservable Inputs (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016
USD ($)
home
|
Sep. 30, 2014
USD ($)
home
|
|
Quantitative unobservable inputs for inventory impairment [Line Items] | ||
Discount rate | 14.97% | |
Minimum | ||
Quantitative unobservable inputs for inventory impairment [Line Items] | ||
Average selling price (in thousands) (a) | $ | $ 355 | $ 260 |
Closings per community per month | home | 2 | 1 |
Discount rate | 14.15% | |
Maximum | ||
Quantitative unobservable inputs for inventory impairment [Line Items] | ||
Average selling price (in thousands) (a) | $ | $ 560 | $ 280 |
Closings per community per month | home | 4 | 4 |
Discount rate | 15.33% |
Inventory - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Real Estate Properties [Line Items] | ||
Deposits & Non-refundable Preacquisition Costs Incurred | $ 80,433 | $ 51,475 |
Remaining Obligation | $ 446,414 | $ 420,070 |
Interest (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Capitalized interest in inventory, beginning of period | $ 123,457 | $ 87,619 | $ 52,562 |
Interest incurred | 119,360 | 121,754 | 126,906 |
Capitalized interest impaired | (710) | 0 | (245) |
Interest expense not qualified for capitalization and included as other expense | (25,388) | (29,752) | (50,784) |
Capitalized interest amortized to home construction and land sales expenses | (78,611) | (56,164) | (40,820) |
Capitalized interest in inventory, end of period | $ 138,108 | $ 123,457 | $ 87,619 |
Property and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 58,678 | $ 58,616 |
Less: Accumulated Depreciation | (39,540) | (36,386) |
Property and equipment, net | 19,138 | 22,230 |
Model furnishings and sales office improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 28,036 | 25,111 |
Information systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,326 | 14,290 |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,247 | 11,864 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,069 | 5,022 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 2,329 |
Borrowings - Schedule of Future Debt Maturities (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2017 | $ 25,692 |
2018 | 35,160 |
2019 | 327,351 |
2020 | 3 |
2021 | 198,000 |
Thereafter | 800,607 |
Total | $ 1,386,813 |
Contingencies - Warranty (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 27,681 | $ 16,084 | $ 11,663 |
Accruals for warranties issued | 13,835 | 10,356 | 6,087 |
Changes in liability related to warranties existing in prior periods | 53,109 | 30,482 | 9,836 |
Payments made | (55,494) | (29,241) | (11,502) |
Balance at end of period | $ 39,131 | $ 27,681 | $ 16,084 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Fair Value Disclosures [Abstract] | |||
Impairment of projects in process | $ 13.7 | $ 5.4 | |
Impairment of land held for sale | $ 0.8 | $ 1.4 | $ 0.2 |
Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 1,207,526 | $ 1,415,332 |
Term Loan | 52,669 | 0 |
Junior Subordinated Notes | 59,870 | 57,803 |
Total debt, net | 1,320,065 | 1,473,135 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 1,253,614 | 1,412,173 |
Term Loan | 52,669 | 0 |
Junior Subordinated Notes | 59,870 | 57,803 |
Total debt, net | $ 1,366,153 | $ 1,469,976 |
Operating Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Leases [Abstract] | |||
Rental expense | $ 4,700 | $ 5,200 | $ 5,400 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2017 | 3,982 | ||
2018 | 3,177 | ||
2019 | 2,401 | ||
2020 | 1,616 | ||
2021 | 1,072 | ||
Thereafter | 404 | ||
Total | $ 12,652 |
Other Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2013 |
---|---|---|---|---|
Other Liabilities [Abstract] | ||||
Accrued warranty expenses | $ 39,131 | $ 27,681 | $ 16,084 | $ 11,663 |
Accrued bonus and deferred compensation | 30,466 | 25,076 | ||
Customer deposits | 12,140 | 13,757 | ||
Accrued interest | 11,530 | 31,632 | ||
Litigation accrual | 10,178 | 12,607 | ||
Income tax liabilities | 1,718 | 1,998 | ||
Other | 29,090 | 36,215 | ||
Total | $ 134,253 | $ 148,966 |
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Current federal | $ 0 | $ (64) | $ (44,789) |
Current state | 595 | 520 | 322 |
Deferred federal | 5,574 | (314,651) | 2,385 |
Deferred state | 10,329 | (10,374) | 285 |
Total | 16,498 | (324,569) | $ (41,797) |
Income Tax Contingency [Line Items] | |||
Valuation allowances and reserves, adjustments | $ 335,200 | ||
State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Valuation allowances and reserves, adjustments | $ 8,600 |
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Income tax computed at statutory rate | $ 7,596 | $ 7,711 | $ (2,406) |
State income taxes, net of federal benefit | 4,974 | 2,485 | (172) |
Decrease in valuation allowance - IRS Settlement | 0 | 0 | (26,846) |
Increase (decrease) in valuation allowance - other | 6,457 | (334,605) | 3,023 |
Changes for uncertain tax positions | (40) | 42 | (14,276) |
IRS interest refund | 0 | 0 | (1,714) |
State rate change | (678) | 0 | 0 |
Tax credits | (2,134) | 0 | 0 |
Other, net | 323 | (202) | 594 |
Total | 16,498 | (324,569) | $ (41,797) |
Income Tax Contingency [Line Items] | |||
Valuation allowances and reserves, adjustments | $ 335,200 | ||
State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Valuation allowances and reserves, adjustments | $ 8,600 |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Deferred tax assets: | ||
Federal and state tax carryforwards | $ 298,426 | $ 292,346 |
Inventory adjustments | 62,985 | 87,335 |
Warranty and other reserves | 16,943 | 14,913 |
Incentive compensation | 15,390 | 10,780 |
Property, equipment and other assets | 2,896 | 2,866 |
Uncertain tax positions | 1,721 | 1,917 |
Other | 809 | 3,814 |
Total deferred tax assets | 399,170 | 413,971 |
Deferred tax liabilities: | ||
Deferred revenues | (22,950) | (30,939) |
Total deferred tax liabilities | (22,950) | (30,939) |
Net deferred tax assets before valuation allowance | 376,220 | 383,032 |
Valuation allowance | (66,265) | (57,659) |
Net deferred tax assets | $ 309,955 | $ 325,373 |
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 4,721 | $ 4,616 | $ 17,464 |
(Reductions in) additions for tax positions related to current year | (180) | 251 | 150 |
Additions for tax positions related to prior years | 0 | 0 | 1,365 |
Reductions in tax positions of prior years | 0 | (10) | (14,201) |
Lapse of statute of limitations | 0 | (136) | (162) |
Balance at end of year | $ 4,541 | $ 4,721 | $ 4,616 |
Stockholders' Equity (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock outstanding (in shares) | 0 | ||
Common stock authorized (in shares) | 63,000,000 | 63,000,000 | |
Common stock issued (in shares) | 33,071,331 | 32,660,583 | |
Common stock outstanding (in shares) | 33,071,331 | 32,660,583 | |
Number of shares surrendered by employees | 16,779 | 10,302 | 23,602 |
Value of redeemed stock | $ 222,000 | $ 192,000 | $ 450,000 |
Dividends paid | $ 0 | $ 0 | $ 0 |
382 ownership limitation | 4.95% |
Retirement and Deferred Compensation Plan - 401(k) Retirement Plan (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
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 | $ 2.6 | $ 2.4 | $ 2.0 |
Total matching contributions forfeited by plan participants during period | $ 0.4 | $ 0.5 | $ 0.4 |
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 Compensation Plan - Deferred Compensation Plan (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued bonus and deferred compensation | $ 30,466,000 | $ 25,076,000 | |
Deferred Compensation Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan assets | 800,000 | 700,000 | |
Accrued bonus and deferred compensation | 3,000,000 | 2,600,000 | |
Employer contribution to deferred compensation plan | $ 204,000 | $ 227,000 | $ 212,000 |
Stock-based Compensation - Schedule of Compensation Cost for Share-based Payment (Details) - USD ($) |
12 Months Ended | 24 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Before tax stock-based compensation expense | $ 7,959,000 | $ 6,105,000 | $ 2,574,000 | |
Tax benefit | (2,832,000) | 0 | 0 | $ 0 |
After tax stock-based compensation expense | 5,127,000 | 6,105,000 | 2,574,000 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Before tax stock-based compensation expense | 534,000 | 697,000 | 833,000 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Before tax stock-based compensation expense | $ 7,425,000 | $ 5,408,000 | $ 1,741,000 |
Stock-based Compensation - Schedule of Assumptions for Stock Options Granted (Details) - Stock Options - $ / shares |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of options | 4 years 11 months 5 days | 5 years 1 month 6 days |
Expected volatility | 46.49% | 45.99% |
Expected dividends | 0.00% | 0.00% |
Weighted average risk-free interest rate | 1.36% | 1.42% |
Weighted average fair value (in dollars per share) | $ 4.03 | $ 7.97 |
Stock-based Compensation - Schedule of Nonvested Stock Awards and Performance Shares (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Restricted Stock | |||
Shares [Roll Forward] | |||
Beginning of period (in shares) | 956,283 | 746,567 | 280,416 |
Granted (in shares) | 491,443 | 410,192 | 595,567 |
Vested (in shares) | (127,993) | (64,719) | (113,320) |
Forfeited (in shares) | (63,916) | (135,757) | (16,096) |
End of period (in shares) | 1,255,817 | 956,283 | 746,567 |
Weighted-Average Grant Date Fair Value ($ per share) [Roll Forward] | |||
Beginning of period (in dollars per share) | $ 18.27 | $ 15.76 | $ 12.32 |
Granted (in dollars per share) | 14.69 | 19.01 | 18.68 |
Vested (in dollars per share) | 18.58 | 15.96 | 22.55 |
Forfeited (in dollars per share) | 10.62 | 7.77 | 15.93 |
End of period (in dollars per share) | $ 17.23 | $ 18.27 | $ 15.76 |
Performance Shares | |||
Shares [Roll Forward] | |||
Vested (in shares) | 0 | 0 | 0 |
Earnings Per Share - Narrative (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1.5 | 1.1 | 0.6 |
Earnings Per Share - Schedule of Earnings Per Share, Basic and Dilutive (Details) shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016
shares
|
Sep. 30, 2015
shares
|
Sep. 30, 2014
shares
|
|
Earnings Per Share [Abstract] | |||
Basic shares | 31,798 | 27,628 | 25,795 |
Shares issued upon conversion of TEUs | 4,069 | 5,784 | |
Shares issuable upon vesting/exercise of stock awards/options | 5 | 75 | 216 |
Diluted shares | 31,803 | 31,772 | 31,795 |
Senior Notes | Tangible Equity Units | |||
Debt Instrument [Line Items] | |||
Number of convertible equity instruments | 5,200 |
Segment Information (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
state
region
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Sep. 30, 2016
USD ($)
state
region
segment
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2014
USD ($)
|
Sep. 30, 2016
USD ($)
state
region
|
|
Segment Reporting [Abstract] | ||||||||||||
Number of states with active operations | state | 13 | 13 | 13 | |||||||||
Number of regions in which entity operates | region | 3 | 3 | 3 | |||||||||
Number of homebuilding segments | segment | 3 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | $ 632,121 | $ 459,937 | $ 385,607 | $ 344,449 | $ 632,852 | $ 429,438 | $ 299,359 | $ 265,764 | $ 1,822,114 | $ 1,627,413 | $ 1,463,767 | |
Operating income | 30,838 | $ 16,309 | $ 3,030 | $ 9,148 | 36,945 | $ 17,696 | $ 6,436 | $ (9,490) | 59,325 | 51,587 | 55,689 | |
Depreciation and amortization | 13,794 | 13,338 | 13,279 | |||||||||
Excess insurance recovery | 3,600 | |||||||||||
Reduction in home construction expenses | 59,300 | 18,900 | $ 78,200 | |||||||||
Capital Expenditures | 12,219 | 15,964 | 14,553 | |||||||||
Total Capital Expenditure, cash and noncash | 12,219 | 16,638 | 14,553 | |||||||||
Assets | 2,213,158 | 2,409,295 | 2,213,158 | 2,409,295 | 2,213,158 | |||||||
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 191,290 | 156,866 | 145,423 | |||||||||
Depreciation and amortization | 11,710 | 11,411 | 11,244 | |||||||||
Corporate and unallocated | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | (131,965) | (105,279) | (89,734) | |||||||||
Depreciation and amortization | 2,084 | 1,927 | 2,035 | |||||||||
Capital Expenditures | 461 | 2,219 | 1,864 | |||||||||
Assets | 756,238 | 812,090 | 756,238 | 812,090 | 756,238 | |||||||
West | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 827,907 | 607,515 | 556,741 | |||||||||
West | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 99,835 | 67,236 | 65,442 | |||||||||
Depreciation and amortization | 6,086 | 5,544 | 5,722 | |||||||||
Capital Expenditures | 6,570 | 7,348 | 6,660 | |||||||||
Assets | 778,521 | 843,564 | 778,521 | 843,564 | 778,521 | |||||||
East | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 526,949 | 576,560 | 552,082 | |||||||||
East | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 42,205 | 52,516 | 48,127 | |||||||||
Depreciation and amortization | 3,173 | 3,091 | 3,447 | |||||||||
Capital Expenditures | 2,441 | 3,692 | 3,050 | |||||||||
Assets | 344,898 | 436,346 | 344,898 | 436,346 | 344,898 | |||||||
Southeast | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 467,258 | 443,338 | 354,944 | |||||||||
Southeast | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 49,250 | 37,114 | 31,854 | |||||||||
Depreciation and amortization | 2,451 | 2,776 | 2,075 | |||||||||
Capital Expenditures | 2,747 | 3,379 | $ 2,979 | |||||||||
Assets | $ 333,501 | $ 317,295 | $ 333,501 | $ 317,295 | $ 333,501 |
Supplemental Guarantor Information - Consolidating Balance Sheet Information Additional Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Allowances for accounts receivable | $ 354 | $ 1,052 |
Discontinued Operations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenue | $ 0 | $ 1,030 | $ 3,864 |
Home construction and land sales expenses | 668 | 4,518 | 4,768 |
Gross loss | (668) | (3,488) | (904) |
General and administrative expenses | 137 | 380 | (351) |
Operating loss | (805) | (3,868) | (553) |
Equity in income of unconsolidated entities | 12 | 0 | 0 |
Other income, net | 6 | 5 | 8 |
Loss from discontinued operations before income taxes | (787) | (3,863) | (545) |
Benefit from income taxes | (275) | (1,358) | (5) |
Loss from discontinued operations, net of tax | $ (512) | (2,505) | (540) |
Colorado | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Home construction and land sales expenses | $ 3,700 | ||
General and administrative expenses | $ 1,900 |
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 632,121 | $ 459,937 | $ 385,607 | $ 344,449 | $ 632,852 | $ 429,438 | $ 299,359 | $ 265,764 | $ 1,822,114 | $ 1,627,413 | $ 1,463,767 |
Gross profit | 102,406 | 77,653 | 59,566 | 57,582 | 107,205 | 76,108 | 53,913 | 35,218 | 297,207 | 272,444 | 263,459 |
Operating income | 30,838 | 16,309 | 3,030 | 9,148 | 36,945 | 17,696 | 6,436 | (9,490) | 59,325 | 51,587 | 55,689 |
Net (loss) income from continuing operations | $ (789) | $ 6,107 | $ (1,312) | $ 1,199 | $ 354,524 | $ 12,221 | $ (2,060) | $ (18,086) | $ 5,205 | $ 346,599 | $ 34,923 |
Basic EPS from continuing operations (in dollars per share) | $ (0.03) | $ 0.19 | $ (0.04) | $ 0.04 | $ 11.42 | $ 0.46 | $ (0.08) | $ (0.68) | $ 0.16 | $ 12.54 | $ 1.35 |
Diluted EPS from continuing operations (in dollars per share) | $ (0.03) | $ 0.19 | $ (0.04) | $ 0.04 | $ 11.16 | $ 0.38 | $ (0.08) | $ (0.68) | $ 0.16 | $ 10.91 | $ 1.10 |
Inventory impairments and abandonments | $ 184 | $ 11,917 | $ 1,825 | $ 1,356 | $ 2,860 | $ 249 | $ 0 | $ 0 | $ 15,282 | $ 3,109 | $ 8,307 |
Loss on extinguishment of debt | $ (11,393) | $ 429 | $ (1,631) | $ (828) | $ (80) | $ 0 | $ 0 | $ 0 | $ (13,423) | (80) | $ (19,917) |
Valuation allowances and reserves, adjustments | $ 335,200 |
Subsequent Event (Details) - Secured Revolving Credit Facility |
Oct. 13, 2016
USD ($)
|
Oct. 01, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
---|---|---|---|---|
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $ 145,000,000 | $ 130,000,000 | ||
Inventory assets pledged as collateral | $ 1,000,000,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $ 180,000,000.0 | $ 180,000,000 | ||
Inventory assets pledged as collateral | $ 800,000,000 | |||
Maximum | ||||
Subsequent Event [Line Items] | ||||
Aggregate Collateral Ratio | 5.00 | |||
Maximum | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Aggregate Collateral Ratio | 4.00 | |||
Minimum | ||||
Subsequent Event [Line Items] | ||||
Aggregate Collateral Ratio | 1.00 | |||
Minimum | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Aggregate Collateral Ratio | 1.00 |
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