Inventory

6 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

INVENTORY

INVENTORIES

At the end of each quarter, the Company reviews the performance and outlook for all of its communities and land inventories for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. As of March 31, 2023, the Company performed detailed impairment evaluations of communities and land inventories and determined that communities with a combined carrying value of $30.6 million were impaired. As a result, impairment charges of $9.2 million were recorded during the three months ended March 31, 2023 to reduce the carrying value of the related inventory to fair value. During the six months ended March 31, 2023, impairment charges totaled $14.0 million. There were $3.8 million of impairment charges recorded in the three and six months ended March 31, 2022.

During the three and six months ended March 31, 2023, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $14.6 million and $37.4 million, respectively, compared to $11.4 million and $16.2 million in the same periods of fiscal 2022. Inventory impairments and land option charges are included in cost of sales in the consolidated statements of operations.