10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________________________________________________________________ 

FORM 10-Q/A

Amendment No. 1

_________________________________________________________________________________ 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended December 31, 2018

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-12822

_________________________________________________________________________________ 

BEAZER HOMES USA, INC.

(Exact name of registrant as specified in its charter)

_________________________________________________________________________________

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)

(770) 829-3700

(Registrant’s telephone number, including area code)

_________________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    YES  x    NO  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	(Do not check if a smaller reporting company)
Smaller reporting company	¨	Emerging growth company	¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

Class	Outstanding as of January 30, 2019
Common Stock, $0.001 par value	32,136,987

EXPLANATORY NOTE

The sole purpose of this Amendment No. 1 to Beazer Homes USA, Inc.'s Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2018, originally filed with the Securities and Exchange Commission on February 4, 2019, is to file Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Due to a technical error, incorrect eXtensible Business Reporting Language (XBRL) data files were attached to the Form 10-Q. The correct XBRL data files are attached herewith.

No other changes have been made to the Form 10-Q. This Amendment No. 1 speaks as of the original filing date of the Form 10-Q, does not reflect events that have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original filing of the Form 10-Q.

Item 6. Exhibits

31.1†	Certification of Chief Executive Officer pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of the Sarbanes-Oxley Act of 2002.
31.2†	Certification of Chief Financial Officer pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of the Sarbanes-Oxley Act of 2002.
32.1†	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2†	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Schema Document
101.CAL*	XBRL Calculation Linkbase Document
101.LAB*	XBRL Labels Linkbase Document
101.PRE*	XBRL Presentation Linkbase Document
101.DEF*	XBRL Definition Linkbase Document

† Previously filed as an exhibit to the Form 10-Q.

* Filed herewith.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:	March 11, 2019	Beazer Homes USA, Inc.
		By:		/s/ Robert L. Salomon
			Name:	Robert L. Salomon
				Executive Vice President and Chief Financial Officer

3

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Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2018	Jan. 30, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	BEAZER HOMES USA INC
Entity Central Index Key	0000915840
Document Type	10-Q/A
Document Period End Date	Dec. 31, 2018
Amendment Flag	true
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		32,136,987
Amendment Description	The sole purpose of this Amendment No. 1 to Beazer Homes USA, Inc.'s Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2018, originally filed with the Securities and Exchange Commission on February 4, 2019, is to file Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Due to a technical error, incorrect eXtensible Business Reporting Language (XBRL) data files were attached to the Form 10-Q. The correct XBRL data files are attached herewith. No other changes have been made to the Form 10-Q. This Amendment No. 1 speaks as of the original filing date of the Form 10-Q, does not reflect events that have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original filing of the Form 10-Q.

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Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
ASSETS
Cash and cash equivalents	$ 84,399	$ 139,805
Restricted cash	12,637	13,443
Accounts receivable (net of allowance of $378 and $378, respectively)	19,349	24,647
Owned inventory	1,722,120	1,692,284
Investments in unconsolidated entities	3,650	4,035
Deferred tax assets, net	218,025	213,955
Property and equipment, net	24,408	20,843
Goodwill	10,605	9,751
Other assets	8,197	9,339
Total assets	2,103,390	2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	99,864	126,432
Other liabilities	112,633	126,389
Total debt, net	1,255,784	1,231,254
Total liabilities	1,468,281	1,484,075
Stockholders’ equity:
Preferred stock (par value $.01 per share, 5,000,000 shares authorized, no shares issued)	0	0
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 32,674,596 issued and outstanding and 33,522,046 issued and outstanding, respectively)	33	34
Paid-in capital	863,797	880,025
Accumulated deficit	(228,721)	(236,032)
Total stockholders’ equity	635,109	644,027
Total liabilities and stockholders’ equity	$ 2,103,390	$ 2,128,102

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Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
ASSETS
Allowances for accounts receivable	$ 378	$ 378
LIABILITIES AND STOCKHOLDERS’ EQUITY
Debt (premium) discounts	(2,447)	(2,640)
Debt issuance costs	$ 13,651	$ 14,336
Preferred stock, par value (in US$ per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in US$ per share)	$ 0.001	$ 0.001
Common stock, shares authorized	63,000,000	63,000,000
Common stock, shares issued	32,674,596	33,522,046
Common stock, shares outstanding	32,674,596	33,522,046

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Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Total revenue	$ 402,040	$ 372,489
Home construction and land sales expenses	340,378	311,660
Inventory impairments and abandonments	1,007	0
Gross profit	60,655	60,829
Commissions	15,737	14,356
General and administrative expenses	38,642	37,285
Depreciation and amortization	2,770	2,507
Operating income	3,506	6,681
Equity in loss of unconsolidated entities	(64)	(101)
Loss on extinguishment of debt	0	(25,904)
Other expense, net	(42)	(3,145)
(Loss) income from continuing operations before income taxes	3,400	(22,469)
(Benefit) expense from income taxes	(3,922)	108,106
Income (loss) from continuing operations	7,322	(130,575)
Loss from discontinued operations, net of tax	(11)	(372)
Net income (loss)	$ 7,311	$ (130,947)
Weighted average number of shares:
Basic (in shares)	31,801	32,055
Diluted (in shares)	32,055	32,055
Basic and diluted earnings (loss) per share:
Continuing Operations (in dollars per share)	$ 0.23	$ (4.07)
Discontinued Operations (in dollars per share)	0.00	(0.01)
Total (in dollars per shares)	$ 0.23	$ (4.08)

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Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 7,311	$ (130,947)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	2,770	2,507
Stock-based compensation expense	2,114	2,610
Inventory impairments and abandonments	1,007	450
Deferred and other income tax (benefit) expense	(4,070)	107,795
Gain on sale of fixed assets	(35)	(65)
Change in allowance for doubtful accounts	0	(1)
Equity in loss of unconsolidated entities	65	88
Cash distributions of income from unconsolidated entities	320	50
Non-cash loss on extinguishment of debt	0	3,173
Changes in operating assets and liabilities:
Decrease in accounts receivable	5,298	4,520
Increase in inventory	(29,722)	(83,205)
Decrease in other assets	1,430	1,252
Decrease in trade accounts payable	(26,568)	(5,949)
Decrease in other liabilities	(14,610)	(4,502)
Net cash used in operating activities	(54,690)	(102,224)
Cash flows from investing activities:
Capital expenditures	(6,354)	(3,702)
Proceeds from sale of fixed assets	54	84
Investments in unconsolidated entities	0	(421)
Net cash used in investing activities	(6,300)	(4,039)
Cash flows from financing activities:
Repayment of debt	(1,479)	(401,481)
Proceeds from issuance of new debt	0	400,000
Repayment of borrowings from credit facility	(75,000)	0
Borrowings from credit facility	100,000	0
Debt issuance costs	(400)	(5,649)
Repurchase of common stock	(16,500)	0
Tax payments for stock-based compensation awards	(1,850)	(1,322)
Other financing activities	7	0
Net cash provided by (used in) financing activities	4,778	(8,452)
Decrease in cash, cash equivalents, and restricted cash	(56,212)	(114,715)
Cash, cash equivalents, and restricted cash at beginning of period	153,248	304,609
Cash, cash equivalents, and restricted cash at end of period	$ 97,036	$ 189,894

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Description of Business

3 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

Description of Business

Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast.

Our homes are designed to appeal to homeowners at different price points across various demographic segments and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate exceptional value and quality, while seeking to maximize our return on invested capital over the course of a housing cycle.

For an additional description of our business, refer to Item 1 within our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 (2018 Annual Report).

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Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. As such, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. The results of the Company's consolidated operations presented herein for the three months ended December 31, 2018 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonal variations in our operations and other factors.

Basis of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Our net income (loss) is equivalent to our comprehensive income (loss), so we have not presented a separate statement of comprehensive income (loss).

In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for all periods presented (see Note 16 for a further discussion of our discontinued operations).

Our fiscal year 2019 began on October 1, 2018 and ends on September 30, 2019. Our fiscal year 2018 began on October 1, 2017 and ended on September 30, 2018.

Use of Estimates

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

Business Combinations

On July 13, 2018, the Company acquired substantially all of the assets, operations, and certain assumed liabilities of Venture Homes, a leading private homebuilder in the Atlanta market, for a purchase price of $61.3 million, net of cash acquired. As of December 31, 2018, $57.3 million of the purchase price had been paid, net of cash acquired, with the remaining $4.0 million due during the second quarter of fiscal 2019. The acquired assets consisted of more than 1,100 total owned or controlled lots within 27 single-family communities in the greater Atlanta metropolitan area. The acquired lots included a backlog of 48 homes and 6 model homes. The acquired assets and liabilities were recorded at their estimated fair values and resulted in inventory of $56.0 million and goodwill of $10.6 million, and other assets of $0.7 million as well as accounts payable of $5.5 million and other liabilities of $0.2 million.

The purchase price accounting reflected above is preliminary and is based on estimates and assumptions that are subject to change within the measurement period, which is generally up to one year from the acquisition date pursuant to ASC 805. The purchase price allocation of Venture Homes is provisional pending completion of the fair value analysis of acquired assets and assumed liabilities.

Share Repurchase Program

On November 13, 2018, the Company announced that its Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. As part of this program, the Company executed an accelerated share repurchase agreement (ASR) on November 15, 2018 to repurchase an aggregate of $16.5 million of its outstanding common stock. During December 2018, the ASR was completed with a repurchase of approximately 1.6 million shares at an average price per share of $10.62. As of December 31, 2018, the remaining availability of the share repurchase program was $33.5 million.

Inventory Valuation

Inventory assets are assessed for recoverability no less than quarterly in accordance with the policies described in Notes 2 and 5 to the audited consolidated financial statements within our 2018 Annual Report. Homebuilding inventories that are accounted for as held for development (projects in progress) include land and home construction assets grouped together as communities. Homebuilding inventories held for development are stated at cost (including direct construction costs, capitalized indirect costs, capitalized interest, and real estate taxes) unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. For communities that have been idled (land held for future development), all applicable interest and real estate taxes are expensed as incurred, and the inventory is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We record land held for sale at the lower of the carrying value or fair value less costs to sell.

Revenue Recognition

We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in Accounting Standards Codification Topic 606.

• Identify the contract(s) with a customer

• Identify the performance obligations

• Determine the transaction price

• Allocate the transaction price

• Recognize revenue when the performance obligations are met

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

	Three Months Ended
	December 31,
in thousands	2018		2017
Homebuilding revenue	$	400,982	$	367,754
Land sales and other revenue	1,058		4,735
Total revenue (a)	$	402,040	$	372,489

^(a) Please see Note 14 for total revenue disaggregated by reportable segment.

Homebuilding revenue

Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, and are considered deposits in-transit and classified as cash. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $13.5 million and $14.9 million as of December 31, 2018 and September 30, 2018, respectively. Of the customer liabilities outstanding as of September 30, 2018, $8.4 million were recognized in revenue during the three months ended December 31, 2018 upon closing of the related homes.

Land sales and other revenue

Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. In some periods, we also have other revenue related to broker fees as well as fees received for general contractor services that we perform on behalf of third parties. Revenue for broker and general contractor services are typically immaterial and are generally recognized as performance obligations are satisfied.

Recent Accounting Pronouncements

Revenue from Contracts with Customers. On October 1, 2018, we adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, collectively referred to as ASC 606. ASC 606 provides a new model for accounting for revenue arising from contracts with customers that supersedes most revenue recognition guidance. Under the new guidance, entities are required to recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled upon transferring control of goods or services to a customer. As part of our adoption of ASC 606, we applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Further, results for reporting periods beginning on or after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the previous accounting standards. The adoption of ASC 606 had no impact on opening retained earnings and did not materially affect the amount or timing of our revenue.

Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires lessees to record most leases on their balance sheets. The timing and classification of lease-related expenses for lessees will depend on whether a lease is determined to be an operating lease or a finance lease using updated criteria within ASU 2016-02. Operating leases will result in straight-line expense (similar to current operating leases), while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Regardless of lease type, the lessee will recognize a right-of-use asset, representing the right to use the identified asset during the lease term, and a related lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the current lease accounting rules. ASU 2016-02 also requires significantly enhanced disclosures around an entity's leases and the related accounting. The guidance within ASU 2016-02 will be effective for the Company's fiscal year beginning October 1, 2019, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements (ASU 2018-11), which provides an optional transition method to apply the requirements of the new lease standard through a cumulative-effect adjustment in the period of adoption. The Company expects to adopt the standard on October 1, 2019 using the optional transition method. We continue to evaluate the impact of ASU 2016-02 on our consolidated financial statements. However, a large majority of our leases are for office space, which we have determined will be treated as operating leases under ASU 2016-02. As such, we anticipate recording a right-of-use asset and related lease liability for these leases. We do not anticipate any significant change to our statements of operations or cash flows as a result of adopting ASU 2016-02.

Intangibles - Goodwill and Other. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 from the goodwill impairment test. This change will allow an entity to avoid calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination, thus reducing the cost and complexity of evaluating goodwill for impairment. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We do not believe the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements and disclosures.

Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework (ASU 2018-13). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. We are currently assessing the impact of adopting the updated provisions.

Internal-Use Software. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures.

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Supplemental Cash Flow Information

3 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

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

	Three Months Ended
	December 31,
in thousands	2018		2017
Supplemental disclosure of cash activity:
Interest payments	$	13,986	$	10,766
Income tax payments	121		—
Tax refunds received	1,148		39
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	84,399	$	177,812
Restricted cash	12,637		12,082
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	97,036	$	189,894

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Investments in Unconsolidated Entities

3 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Investments in Unconsolidated Entities

Unconsolidated Entities

As of December 31, 2018, the Company participated in certain joint ventures and had investments in unconsolidated entities in which it had less than a controlling interest. The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of December 31, 2018 and September 30, 2018:

in thousands	December 31, 2018		September 30, 2018
Beazer's investment in unconsolidated entities	$	3,650	$	4,035
Total equity of unconsolidated entities	8,578		10,113
Total outstanding borrowings of unconsolidated entities	11,867		12,266

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

	Three Months Ended
	December 31,
in thousands	2018			2017
Equity in loss of unconsolidated entities	$	(64	)	$	(101	)

For the three months ended December 31, 2018 and 2017, there were no impairments related to investments in unconsolidated entities.

Guarantees

Historically, the Company's joint ventures typically obtained secured acquisition, development, and construction financing. In addition, the Company and its joint venture partners provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of December 31, 2018 and September 30, 2018, the Company had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities.

The Company and its joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate the Company to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During the three months ended December 31, 2018 and 2017, the Company was not required to make any payments related to environmental indemnities.

In assessing the need to record a liability for these guarantees, the Company considers its historical experience in being required to perform under the guarantees, the fair value of the collateral underlying these guarantees, and the financial condition of the applicable unconsolidated entities. In addition, the fair value of the collateral of unconsolidated entities is monitored to ensure that the related borrowings do not exceed the specified percentage of the value of the property securing the borrowings. As of December 31, 2018, no liability was recorded for the contingent aspects of any guarantees that were determined to be reasonably possible but not probable.

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Inventory

3 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventory

Inventory

The components of our owned inventory are as follows as of December 31, 2018 and September 30, 2018:

in thousands	December 31, 2018		September 30, 2018
Homes under construction	$	478,539	$	476,752
Development projects in progress	925,728		907,793
Land held for future development	83,177		83,173
Land held for sale	6,997		7,781
Capitalized interest	151,886		144,645
Model homes	75,793		72,140
Total owned inventory	$	1,722,120	$	1,692,284

Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including the cost of the underlying lot. We had 223 (with a cost of $83.9 million) and 240 (with a cost of $84.8 million) substantially completed homes that were not subject to a sales contract (spec homes) as of December 31, 2018 and September 30, 2018, respectively.

Development projects in progress consist principally of land and land improvement costs. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract. Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable interest and real estate taxes on land held for future development are expensed as incurred. Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets and land is classified as held for sale once certain criteria are met. These assets are recorded at the lower of the carrying value or fair value less costs to sell.

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

Total owned inventory by reportable segment is presented in the table below as of December 31, 2018 and September 30, 2018:

in thousands	Projects in Progress (a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
December 31, 2018
West Segment	$	785,702	$	58,129	$	—	$	843,831
East Segment	277,300		14,077		3,906		295,283
Southeast Segment	357,172		10,971		3,091		371,234
Corporate and unallocated (b)	211,772		—		—		211,772
Total	$	1,631,946	$	83,177	$	6,997	$	1,722,120
September 30, 2018
West Segment	$	763,453	$	58,125	$	—	$	821,578
East Segment	280,761		14,077		4,580		299,418
Southeast Segment	358,126		10,971		3,177		372,274
Corporate and unallocated (b)	198,990		—		24		199,014
Total	$	1,601,330	$	83,173	$	7,781	$	1,692,284

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

^(b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Land held for sale amount includes parcels held by our discontinued operations.

Inventory Impairments

When conducting our community level review for the recoverability of inventory related to projects in progress, we establish a quarterly “watch list” comprised of communities that carry profit margins in backlog and in our forecast that are below a minimum threshold of profitability. We also include in our watch list communities with recent closings that have gross margins less than a specific threshold. Each community is first evaluated qualitatively to determine if there are temporary factors driving the low profitability levels. Following our qualitative evaluation, communities with more than ten homes remaining to close are subjected to substantial additional financial and operational analysis and review that considers the competitive environment and other factors contributing to gross margins below our watch list threshold. Our assumptions about future home sales prices and absorption rates require significant judgment because the residential homebuilding industry is cyclical and is highly sensitive to changes in economic conditions. For certain communities, we determined that it is prudent to reduce sales prices or further increase sales incentives in response to a variety of factors, including competitive market conditions in those specific submarkets for the product and locations of these communities. For communities where the current competitive and market dynamics indicate that these factors may be other than temporary, which may call into question the recoverability of our investment, a formal impairment analysis is performed. The formal impairment analysis consists of both qualitative competitive market analyses and a quantitative analysis reflecting market and asset specific information. Market deterioration that exceeds our initial estimates may lead us to incur impairment charges on previously impaired homebuilding assets, in addition to homebuilding assets not currently impaired but for which indicators of impairment may arise if markets deteriorate.

For the quarter ended December 31, 2018, there were four communities that were included in our watch list that required further analysis to be performed after considering the number of lots remaining in each community and certain other qualitative factors. This additional analysis led to a $1.0 million impairment charge for one of these communities, principally due to a reduction in price that is other than temporary based on current competitive and market dynamics. For the quarter ended December 31, 2017, there were two communities on our quarterly watch list. However, none of these communities required further impairment analysis to be performed after considering certain qualitative factors.

The table below summarizes the results of our undiscounted cash flow analyses by reportable segment, where applicable, for the quarter ended December 31, 2018 (the period that such analyses were required):

$ in thousands		Undiscounted Cash Flow Analyses Prepared
Segment (a)	# of Communities on Watch List (b)	# of Communities (c)	Pre-analysis Book Value (BV)		Aggregate Undiscounted Cash Flow as a % of BV (d)
Quarter Ended December 31, 2018
West	3	—	$	—	—	%
Southeast	1	1	2,225		71.3	%
Corporate and unallocated (e)	—	—	387		N/A (f)
Total	4	1	$	2,612

^(a) We have elected to aggregate our disclosure at the reportable segment level because we believe this level of disclosure is most meaningful to the readers of our financial statements.

^(b) Number of communities in this column excludes communities that are closing out and have less than ten closings remaining.

^(c) Number of communities in this column is lower than the number of communities on our watch list because it excludes communities due to certain qualitative considerations that would imply that the low profitability levels are temporary in nature.

^(d) An aggregate undiscounted cash flow as a percentage of book value under 100% would indicate a possible impairment and is consistent with our "watch list" methodology. The book value of each project assessed for recoverability on an undiscounted cash flow basis includes all inventory costs applicable to the project as of the date of the analysis, including capitalized interest and indirects.

^(e) Amount represents capitalized interest and indirects balance related to the communities for which an undiscounted cash flow analysis was prepared. Capitalized interest and indirects are maintained within our Corporate and unallocated segment.

^(f) N/A - not applicable.

The following table presents, by reportable segment, details of the impairment charges taken on projects in progress for the periods presented:

$ in thousands	Results of Discounted Cash Flow Analyses Prepared
Segment	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at time of Impairment
Quarter Ended December 31, 2018
Southeast	1	15	$	858	$	1,367
Corporate and unallocated (a)	—	—	149		238
Total	1	15	$	1,007	$	1,605

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

The following table presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities we impaired during the periods presented:

$ in thousands	Three Months Ended
Unobservable Inputs	December 31, 2018
Average selling price	$	412
Closings per community per month	1 - 2
Discount rate	16.8		%

Impairments on land held for sale generally represent write downs of these properties to net realizable value less estimated costs to sell and are based on current market conditions and our review of recent comparable transactions. Our assumptions about land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions. We calculate the estimated fair value of land held for sale based on current market conditions and assumptions made by management, which may differ materially from actual results and may result in additional impairments if market conditions deteriorate.

From time-to-time, we also determine that the proper course of action with respect to a community is to not exercise an option and to write off the deposit securing the option takedown and the related pre-acquisition costs, as applicable. In determining whether to abandon lots or lot option contracts, our evaluation is primarily based upon the expected cash flows from the property. Additionally, in certain limited instances, we are forced to abandon lots due to permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record a charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. Abandonment charges generally relate to our decision to abandon lots or not exercise certain option contracts that are not projected to produce adequate results, no longer fit with our long-term strategic plan or, in limited circumstances, are not suitable for building due to regulatory or environmental restrictions that are enacted.

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

	Three Months Ended December 31,
in thousands	2018		2017
Projects in Progress:
Southeast	$	858	$	—
Corporate and unallocated (a)	149		—
Total impairment charges on projects in progress	$	1,007	$	—
Discontinued Operations:
Land Held for Sale	—		450
Total impairment and abandonment charges	$	1,007	$	450

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

Lot Option Agreements and Variable Interest Entities (VIE)

As previously discussed, we also have access to land inventory through lot option contracts, which generally enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period of time at a specified price. Under lot option contracts, purchase of the properties is contingent upon satisfaction of certain requirements by us and the sellers. Our liability under option contracts is generally limited to forfeiture of the non-refundable deposits, letters of credit, and other non-refundable amounts incurred. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option contracts. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all.

The following table provides a summary of our interests in lot option agreements as of December 31, 2018 and September 30, 2018:

in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of December 31, 2018
Unconsolidated lot option agreements	$	71,644	$	367,026
As of September 30, 2018
Unconsolidated lot option agreements	$	72,191	$	383,150

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Interest

3 Months Ended

Dec. 31, 2018

Real Estate [Abstract]

Interest

Interest

Our ability to capitalize interest incurred during the three months ended December 31, 2018 and 2017 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:

	Three Months Ended December 31,
in thousands	2018			2017
Capitalized interest in inventory, beginning of period	$	144,645		$	139,203
Interest incurred	24,921			25,555
Capitalized interest impaired	(115		)	—
Interest expense not qualified for capitalization and included as other expense (a)	(242		)	(3,435		)
Capitalized interest amortized to home construction and land sales expenses (b)	(17,323		)	(16,476		)
Capitalized interest in inventory, end of period	$	151,886		$	144,847

^(a) The amount of interest we are able to capitalize is dependent upon our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale.

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

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Borrowings

3 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Borrowings

Borrowings

As of December 31, 2018 and September 30, 2018, we had the following debt, net of premium/discounts and unamortized debt issuance costs:

in thousands	Maturity Date	December 31, 2018			September 30, 2018
8 3/4% Senior Notes	March 2022	$	500,000		$	500,000
7 1/4% Senior Notes	February 2023	24,834			24,834
6 3/4% Senior Notes	March 2025	250,000			250,000
5 7/8% Senior Notes	October 2027	400,000			400,000
Unamortized debt premium, net		2,447			2,640
Unamortized debt issuance costs		(13,651		)	(14,336		)
Total Senior Notes, net		1,163,630			1,163,138
Junior Subordinated Notes (net of unamortized accretion of $36,253 and $36,770, respectively)	July 2036	64,520			64,003
Revolving Credit Facility	February 2021	25,000			—
Other Secured Notes payable	Various Dates	2,634			4,113
Total debt, net		$	1,255,784		$	1,231,254

Secured Revolving Credit Facility

The Secured Revolving Credit Facility (the Facility) provides working capital and letter of credit capacity. In October 2018, the Company executed a Fifth Amendment to the Facility, extending the termination date of the Facility from February 15, 2020 to February 15, 2021 and increasing the maximum aggregate amount of commitments under the Facility, including borrowings and letters of credit, from $200.0 million to $210.0 million. The aggregate collateral ratio (as defined by the underlying Credit Agreement) remained at 4.00 to 1.00 and the after-acquired exclusionary condition (also as defined by the underlying Credit Agreement) remained at $800.0 million. The Facility continues to be with three lenders. For additional discussion of the Facility, refer to Note 8 to the audited consolidated financial statements within our 2018 Annual Report.

As of December 31, 2018, $25.0 million of borrowings and $1.5 million letters of credit were outstanding under the Facility, resulting in a remaining capacity of $183.5 million. As of September 30, 2018, no borrowings and no letters of credit were outstanding under the Facility, resulting in a remaining capacity of $200.0 million. The Facility requires compliance with certain covenants, including negative covenants and financial maintenance covenants. As of December 31, 2018, the Company was in compliance with all such covenants.

Letter of Credit Facilities

We have entered into stand-alone, cash-secured letter of credit agreements with banks to maintain our pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Facility). As of December 31, 2018 and September 30, 2018, we had letters of credit outstanding under these additional facilities of $11.2 million and $10.4 million, respectively, all of which were secured by cash collateral in restricted accounts. The Company may enter into additional arrangements to provide additional letter of credit capacity.

In May 2018, the Company entered into a reimbursement agreement, which provides for the issuance of performance letters of credit, and an unsecured credit agreement that provides for the issuance of up to $50.0 million of standby letters of credit to backstop the Company's obligations under the reimbursement agreement (collectively, the "Bilateral Facility"). The Bilateral Facility will terminate on June 10, 2021. As of December 31, 2018, the total stated amount of performance letters of credit issued under the reimbursement agreement was $28.5 million (and the stated amount of the backstop standby letter of credit issued under the credit agreement was $30.0 million). The Company may enter into additional arrangements to provide greater letter of credit capacity.

Senior Notes

Our Senior Notes are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of our significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Facility. Each guarantor subsidiary is a 100% owned subsidiary of Beazer Homes. See Note 15 for further information.

All unsecured Senior Notes rank equally in right of payment with all of our existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, including indebtedness under the Facility, if outstanding, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes, but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture.

The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and to make certain investments. Compliance with our Senior Note covenants does not significantly impact our operations. We were in compliance with the covenants contained in the indentures of all of our Senior Notes as of December 31, 2018.

For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes:

Senior Note Description	Issuance Date	Maturity Date	Redemption Terms
8 3/4% Senior Notes	September 2016	March 2022	Callable at any time prior to March 15, 2019, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2019, callable at a redemption price equal to 104.375% of the principal amount; on or after March 15, 2020, callable at a redemption price equal to 102.188% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 100.000% of the principal amount plus, in each case, accrued and unpaid interest
7 1/4% Senior Notes	February 2013	February 2023	Callable at any time on or after February 1, 2018, callable at a redemption price equal to 103.625% of the principal amount; on or after February 1, 2019, callable at a redemption price equal to 102.417% of the principal amount; on or after February 1, 2020, callable at a redemption price equal to 101.208% of the principal amount; on or after February 1, 2021, callable at 100.000% of the principal amount plus, in each case, accrued and unpaid interest
6 3/4% Senior Notes	March 2017	March 2025	Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest
5 7/8% Senior Notes	October 2017	October 2027	Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest

Junior Subordinated Notes

Our unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036. The Junior Subordinated Notes are redeemable at par and paid interest at a fixed rate of 7.987% for the first ten years ending July 30, 2016. The securities now have a floating interest rate as defined in the Junior Subordinated Notes Indenture, which was a weighted-average of 4.97% as of December 31, 2018 (because the rate on the portion of the Junior Subordinated Notes that was modified, as discussed below, is subject to a floor). The obligations relating to these notes are subordinated to the Facility and the Senior Notes. In January 2010, we modified the terms of $75.0 million of these notes and recorded them at their then estimated fair value. Over the remaining life of the Junior Subordinated Notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of December 31, 2018, the unamortized accretion was $36.3 million and will be amortized over the remaining life of the notes. As of December 31, 2018, we were in compliance with all covenants under our Junior Subordinated Notes.

Other Secured Notes Payable

We periodically acquire land through the issuance of notes payable. As of December 31, 2018 and September 30, 2018, we had outstanding notes payable of $2.6 million and $4.1 million, respectively, primarily related to land acquisitions. These secured notes payable have varying expiration dates in 2019, a weighted-average fixed interest rate of 1.88% as of December 31, 2018, and are secured by the real estate to which they relate.

The agreements governing these other secured notes payable contain various affirmative and negative covenants. There can be no assurance that we will be able to obtain any future waivers or amendments that may become necessary without significant additional cost or at all. In each instance, however, a covenant default can be cured by repayment of the indebtedness.

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Contingencies

3 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated.

Warranty Reserves

We currently provide a limited warranty ranging from one to two years covering workmanship and materials per our defined quality standards. In addition, we provide a limited warranty for up to ten years covering only certain defined structural element failures.

Our homebuilding work is performed by subcontractors who typically must agree to indemnify us with regard to their work and provide certificates of insurance demonstrating that they have met our insurance requirements and have named us as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. In addition, we maintain insurance coverage related to our construction efforts that can result in recoveries of warranty and construction defect costs above certain specified limits.

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

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

	Three Months Ended
	December 31,
in thousands	2018			2017
Balance at beginning of period	$	15,331		$	18,091
Accruals for warranties issued (a)	2,305			4,212
Changes in liability related to warranties existing in prior periods	(1,874		)	(2,296		)
Payments made	(2,330		)	(4,191		)
Balance at end of period	$	13,432		$	15,816

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

Insurance Recoveries

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

Litigation

In the normal course of business, we are subject to various lawsuits. We cannot predict or determine the timing or final outcome of these lawsuits or the effect that any adverse findings or determinations in pending lawsuits may have on us. In addition, an estimate of possible loss or range of loss, if any, cannot presently be made with respect to certain of these pending matters. An unfavorable determination in any of the pending lawsuits could result in the payment by us of substantial monetary damages that may not be fully covered by insurance. Further, the legal costs associated with the lawsuits and the amount of time required to be spent by management and our Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations, or cash flows.

Other Matters

We and certain of our subsidiaries have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance. In our opinion, based on our current assessment, the ultimate resolution of these matters will not have a material adverse effect on our financial condition, results of operations, or cash flows.

We have an accrual of $3.3 million and $3.7 million in other liabilities on our condensed consolidated balance sheets related to litigation and other matters, excluding warranty, as of December 31, 2018 and September 30, 2018, respectively.

We had outstanding letters of credit and performance bonds of approximately $41.2 million and $250.1 million, respectively, as of December 31, 2018, related principally to our obligations to local governments to construct roads and other improvements in various developments.

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Fair Value Measurements

3 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

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

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

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

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

Certain of our assets are required to be recorded at fair value on a recurring basis. The fair value of our deferred compensation plan assets is based on market-corroborated inputs (Level 2).

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

During the three months ended December 31, 2018, we recorded impairments of $1.0 million on projects in process compared to $0.5 million of impairments for land held for sale during the three months ended December 31, 2017.

Determining within which hierarchical level an asset or liability falls requires significant judgment. We evaluate our hierarchy disclosures each quarter.

The following table presents the period-end balances of our assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented:

in thousands	Level 1		Level 2		Level 3		Total
As of December 31, 2018
Deferred compensation plan assets (a)	$	—	$	1,760	$	—	$	1,760
Development projects in progress (b)	—		—		1,605		1,605
As of September 30, 2018
Deferred compensation plan assets (a)	$	—	$	1,578	$	—	$	1,578
Development projects in progress (b)	—		—		1,312		1,312
Land held for sale (b)	—		—		1,724		1,724
Unconsolidated entity investments (b)	—		—		80		80

^(a) Measured at fair value on a recurring basis.

^(b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirects related to the asset.

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

The following table presents the carrying value and estimated fair value of certain of our other financial liabilities as of December 31, 2018 and September 30, 2018:

	As of December 31, 2018				As of September 30, 2018
in thousands	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
Senior Notes (b)	$	1,163,630	$	1,048,346	$	1,163,138	$	1,096,214
Junior Subordinated Notes	64,520		64,520		64,003		64,003
Total	$	1,228,150	$	1,112,866	$	1,227,141	$	1,160,217

^(a) Carrying amounts are net of unamortized debt premiums/discounts, debt issuance costs, or accretion.

^(b) The estimated fair value for our publicly-held Senior Notes has been determined using quoted market rates (Level 2).

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Income Taxes

3 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income Tax Provision

The Company'sincome tax provision for quarterly interim periods is based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items. The total income tax provision, including discontinued operations, was a tax benefit of $3.9 million for the three months ended December 31, 2018, compared to an income tax expense of $108.0 million for the three months ended December 31, 2017. The current fiscal year income tax benefit was primarily driven by the completion of work necessary to claim an additional $5.3 million in tax credits related to prior fiscal years, partially offset by income from continuing operations and discrete impacts related to stock-based compensation. The tax expense for the three months ended December 31, 2017 was primarily driven by the remeasurement of the Company's deferred tax assets as a result of the enactment of the Tax Cuts and Jobs Act and several discrete tax items, including stock-based compensation. These items were partially offset by the loss incurred from continuing operations.

Deferred Tax Assets and Liabilities

As of December 31, 2018, our net deferred tax asset is comprised of various tax attributes that includes $9.6 million of minimum tax credit carryforwards. Beginning with the fiscal 2019 tax return, the Company will be able to make cash refund claims for significant portions of these credits due to the elimination of the alternative minimum tax in the Tax Cuts and Jobs Act.

The Company continues to evaluate its deferred tax assets each period to determine if a valuation allowance is required based on whether it is more likely than not that some portion of these deferred tax assets will not be realized. As of December 31, 2018, management concluded that it is more likely than not that a substantial portion of our deferred tax assets will be realized. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in the estimate of our deferred tax assets that may be realized in the future. Our conclusions on the valuation allowance and Internal Revenue Code Section 382 limitations related to our deferred tax assets remain consistent with the determinations we made during the period ended September 30, 2018, and such conclusions are based on similar company specific and industry factors to those discussed in Note 13 to the audited consolidated financial statements within our 2018 Annual Report.

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Stock-based Compensation

3 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

Stock-based Compensation

Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. We recognized $2.1 million and $2.6 million of stock-based compensation expense related to stock options and restricted stock awards for the three months ended December 31, 2018 and December 31, 2017, respectively.

Stock Options

Following is a summary of stock option activity for the three months ended December 31, 2018:

	Three Months Ended
	December 31, 2018
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	533,052		$	14.26
Granted	25,230		10.38
Exercised	(1,000	)	7.56
Cancelled	(1,319	)	11.53
Outstanding at end of period	555,963		$	14.10
Exercisable at end of period	504,092		$	14.13
Vested or expected to vest in the future	552,799		$	14.13

As of December 31, 2018 and September 30, 2018, total unrecognized compensation cost related to unvested stock options was $0.3 million and $0.2 million, respectively. The cost remaining as of December 31, 2018 is expected to be recognized over a weighted-average period of 1.7 years.

Restricted Stock Awards

During the three months ended December 31, 2018, we issued time-based restricted stock awards that vest ratably over three years on each anniversary from the grant date and performance-based restricted stock awards with a payout subject to the achievement of performance and market conditions over a three-year period.

Following is a summary of restricted stock activity for the three months ended December 31, 2018:

	Three Months Ended December 31, 2018
	Performance-Based Restricted Shares		Time-Based Restricted Shares		Total Restricted Shares
Beginning of period	644,785		431,783		1,076,568
Granted (a)	467,819		441,991		909,810
Vested (a)	(309,843	)	(196,246	)	(506,089	)
Forfeited	(7,020	)	(21,329	)	(28,349	)
End of period	795,741		656,199		1,451,940

^(a) Grant and vesting activity during the three months ended December 31, 2018 include 86,050 shares that were issued above target based on the performance level achieved under performance-based restricted stock vesting in the current period.

As of December 31, 2018 and September 30, 2018, total unrecognized compensation cost related to unvested restricted stock awards was $14.8 million and $8.8 million, respectively. The remaining cost as of December 31, 2018 is expected to be recognized over a weighted average period of 2.2 years.

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Earnings Per Share

3 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted income (loss) per share adjusts the basic income (loss) per share for the effects of any potentially dilutive securities in periods in which the Company has net income and such effects are dilutive under the treasury stock method.

Following is a summary of the components of basic and diluted income (loss) per share for the periods presented:

	Three Months Ended December 31,
in thousands, except per share data	2018			2017
Numerator:
Income (loss) from continuing operations	$	7,322		$	(130,575	)
Loss from discontinued operations, net of tax	(11		)	(372		)
Net income (loss)	$	7,311		$	(130,947	)
Denominator:
Basic weighted-average shares	31,801			32,055
Dilutive effect of restricted stock awards	243			—
Dilutive effect of stock options	11			—
Diluted weighted-average shares (a)	32,055			32,055
Basic and diluted income (loss) per share:
Continuing operations	$	0.23		$	(4.07	)
Discontinued operations	—			(0.01		)
Total	$	0.23		$	(4.08	)

^(a) The following potentially dilutive shares were excluded from the calculation of diluted income (loss) per share as a result of their anti-dilutive effect. Due to the reported net loss for the three months ended December 31, 2017, all common stock equivalents were excluded from the computation of diluted loss per share for that period because inclusion would have resulted in anti-dilution.

	Three Months Ended December 31,
in thousands	2018	2017
Stock options	493	556
Time-based restricted stock	195	828
Performance-based restricted stock	—	628

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Other Liabilities

3 Months Ended

Dec. 31, 2018

Other Liabilities Disclosure [Abstract]

Other Liabilities

Other Liabilities

Otherliabilities include the following as of December 31, 2018 and September 30, 2018:

in thousands	December 31, 2018		September 30, 2018
Accrued interest	$	24,217	$	14,401
Accrued bonus and deferred compensation	20,236		41,508
Customer deposits	13,462		14,903
Accrued warranty expense	13,432		15,331
Litigation accrual	3,348		3,656
Income tax liabilities	856		710
Other	37,082		35,880
Total	$	112,633	$	126,389

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Segment Information

3 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

We currently operate in 13 states that are grouped into three homebuilding segments based on geography. Revenues from our homebuilding segments are derived from the sale of homes that we construct and from land and lot sales. Our reportable segments have been determined on a basis that is used internally by management for evaluating segment performance and resource allocations. We have considered the applicable aggregation criteria and have combined our homebuilding operations into three reportable segments as follows:

West: Arizona, California, Nevada, and Texas

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

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

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

Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding and land sales and other revenue less home construction, land development, and land sales expense, commission expense, depreciation and amortization, and certain G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are those described in Note 2 to the consolidated financial statements within our 2018 Annual Report.

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

	Three Months Ended
	December 31,
in thousands	2018		2017
Revenue
West	$	208,944	$	177,971
East	88,746		88,853
Southeast	104,350		105,665
Total revenue	$	402,040	$	372,489

	Three Months Ended
	December 31,
in thousands	2018			2017
Operating income (a)
West	$	24,261		$	21,110
East	5,395			7,396
Southeast	1,380			6,910
Segment total	31,036			35,416
Corporate and unallocated (b)	(27,530		)	(28,735		)
Total operating income	$	3,506		$	6,681

	Three Months Ended
	December 31,
in thousands	2018		2017
Depreciation and amortization
West	$	1,278	$	1,256
East	538		439
Southeast	610		579
Segment total	2,426		2,274
Corporate and unallocated (b)	344		233
Total depreciation and amortization	$	2,770	$	2,507

^(a) Operating income is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5).

^(b) Corporate and unallocated operating loss includes amortization of capitalized interest; movement in capitalized indirects; expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing; and other amounts that are not allocated to our operating segments. Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments.

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

	Three Months Ended
	December 31,
in thousands	2018		2017
Capital Expenditures
West	$	2,651	$	1,776
East	762		595
Southeast	859		743
Corporate and unallocated	2,082		588
Total capital expenditures	$	6,354	$	3,702

The following table presents assets by segment as of December 31, 2018 and September 30, 2018:

in thousands	December 31, 2018		September 30, 2018
Assets
West	$	855,823	$	835,230
East	305,232		335,474
Southeast	390,934		414,685
Corporate and unallocated (a)	551,401		542,713
Total assets	$	2,103,390	$	2,128,102

^(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirects, and other items that are not allocated to the segments.

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Supplemental Guarantor Information

3 Months Ended

Dec. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor information

Supplemental Guarantor Information

As discussed in Note 7, the Company's obligations to pay principal, premium, if any, and interest under certain debt agreements are guaranteed on a joint and several basis by substantially all of the Company's subsidiaries. Some of the immaterial subsidiaries do not guarantee the Senior Notes or the Facility. The guarantees are full and unconditional and the guarantor subsidiaries are 100% owned by Beazer Homes USA, Inc. The following unaudited financial information presents the line items of the Company's unaudited condensed consolidated financial statements separated by amounts related to the parent issuer, guarantor subsidiaries, non-guarantor subsidiaries, and consolidating adjustments as of or for the periods presented.

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

December 31, 2018

(Unaudited)

in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	82,115	$	2,267		$	17	$	—		$	84,399
Restricted cash	11,897		740			—		—			12,637
Accounts receivable (net of allowance of $378)	—		19,349			—		—			19,349
Owned inventory	—		1,722,120			—		—			1,722,120
Investments in unconsolidated entities	773		2,877			—		—			3,650
Deferred tax assets, net	218,025		—			—		—			218,025
Property and equipment, net	—		24,408			—		—			24,408
Investments in subsidiaries	636,800		—			—		(636,800		)	—
Intercompany	963,614		(6,858		)	1,686		(958,442		)	—
Goodwill	—		10,605			—		—			10,605
Other assets	982		7,215			—		—			8,197
Total assets	$	1,914,206	$	1,782,723		$	1,703	$	(1,595,242	)	$	2,103,390
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	99,864		$	—	$	—		$	99,864
Other liabilities	24,261		88,359			13		—			112,633
Intercompany	1,686		956,756			—		(958,442		)	—
Total debt (net of premium and debt issuance costs)	1,253,150		2,634			—		—			1,255,784
Total liabilities	1,279,097		1,147,613			13		(958,442		)	1,468,281
Stockholders’ equity	635,109		635,110			1,690		(636,800		)	635,109
Total liabilities and stockholders’ equity	$	1,914,206	$	1,782,723		$	1,703	$	(1,595,242	)	$	2,103,390

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

September 30, 2018

(Unaudited)

in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	93,875	$	45,355	$	575	$	—		$	139,805
Restricted cash	10,921		2,522		—		—			13,443
Accounts receivable (net of allowance of $378)	—		24,647		—		—			24,647
Owned inventory	—		1,692,284		—		—			1,692,284
Investments in unconsolidated entities	773		3,262		—		—			4,035
Deferred tax assets, net	213,955		—		—		—			213,955
Property and equipment, net	—		20,843		—		—			20,843
Investments in subsidiaries	645,086		—		—		(645,086		)	—
Intercompany	922,525		—		2,304		(924,829		)	—
Goodwill	—		9,751		—		—			9,751
Other assets	694		8,626		19		—			9,339
Total assets	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	126,432	$	—	$	—		$	126,432
Other liabilities	14,357		111,906		126		—			126,389
Intercompany	2,304		922,525		—		(924,829		)	—
Total debt (net of premium and debt issuance costs)	1,227,141		4,113		—		—			1,231,254
Total liabilities	1,243,802		1,164,976		126		(924,829		)	1,484,075
Stockholders’ equity	644,027		642,314		2,772		(645,086		)	644,027
Total liabilities and stockholders’ equity	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102

Beazer Homes USA, Inc.

Consolidating Statements of Operations

(Unaudited)

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Total revenue	$	—		$	402,040		$	115		$	(115	)	$	402,040
Home construction and land sales expenses	17,323			323,170			—			(115		)	340,378
Inventory impairments and abandonments	115			892			—			—			1,007
Gross (loss) profit	(17,438		)	77,978			115			—			60,655
Commissions	—			15,737			—			—			15,737
General and administrative expenses	—			38,646			(4		)	—			38,642
Depreciation and amortization	—			2,770			—			—			2,770
Operating (loss) income	(17,438		)	20,825			119			—			3,506
Equity in loss of unconsolidated entities	—			(64		)	—			—			(64		)
Other (expense) income, net	(242		)	204			(4		)	—			(42		)
(Loss) income from continuing operations before income taxes	(17,680		)	20,965			115			—			3,400
Expense (benefit) from income taxes	20,385			(24,336		)	29			—			(3,922		)
Equity in income of subsidiaries	45,387			—			—			(45,387		)	—
Income from continuing operations	7,322			45,301			86			(45,387		)	7,322
Loss from discontinued operations, net of tax	—			(7		)	(4		)	—			(11		)
Equity in loss of subsidiaries from discontinued operations	(11		)	—			—			11			—
Net income	$	7,311		$	45,294		$	82		$	(45,376	)	$	7,311
in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2017
Total revenue	$	—		$	372,489		$	14		$	(14	)	$	372,489
Home construction and land sales expenses	16,468			295,206			—			(14		)	311,660
Gross (loss) profit	(16,468		)	77,283			14			—			60,829
Commissions	—			14,356			—			—			14,356
General and administrative expenses	—			37,244			41			—			37,285
Depreciation and amortization	—			2,507			—			—			2,507
Operating (loss) income	(16,468		)	23,176			(27		)	—			6,681
Equity in loss of unconsolidated entities	—			(101		)	—			—			(101		)
Loss on extinguishment of debt	(25,904		)	—			—			—			(25,904		)
Other (expense) income, net	(3,435		)	296			(6		)	—			(3,145		)
(Loss) income from continuing operations before income taxes	(45,807		)	23,371			(33		)	—			(22,469		)
(Benefit) expense from income taxes	(12,185		)	120,303			(12		)	—			108,106
Equity in loss of subsidiaries	(96,953		)	—			—			96,953			—
Loss from continuing operations	(130,575		)	(96,932		)	(21		)	96,953			(130,575		)
Loss from discontinued operations	—			(369		)	(3		)	—			(372		)
Equity in loss of subsidiaries from discontinued operations	(372		)	—			—			372			—
Net loss	$	(130,947	)	$	(97,301	)	$	(24	)	$	97,325		$	(130,947	)

Beazer Homes USA, Inc.

Condensed Consolidating Statements of Cash Flow Information

(Unaudited)

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Net cash used in operating activities	$	(31,908	)	$	(22,756	)	$	(26	)	$	—		$	(54,690	)
Cash flows from investing activities:
Capital expenditures	—			(6,354		)	—			—			(6,354		)
Proceeds from sale of fixed assets	—			54			—			—			54
Return of capital from unconsolidated entities	532			—			(532		)	—			—
Advances to/from subsidiaries	21,204			—			—			(21,204		)	—
Net cash provided by (used in) investing activities	21,736			(6,300		)	(532		)	(21,204		)	(6,300		)
Cash flows from financing activities:
Repayment of debt	(11		)	(1,468		)	—			—			(1,479		)
Repayment of borrowings from credit facility	(75,000		)	—			—			—			(75,000		)
Borrowings from credit facility	100,000			—			—			—			100,000
Debt issuance costs	(400		)	—			—			—			(400		)
Repurchase of common stock	(16,500		)	—			—			—			(16,500		)
Tax payments for stock-based compensation awards	(1,850		)	—			—			—			(1,850		)
Advances to/from subsidiaries	—			(21,204		)	—			21,204			—
Other financing activities	7			—			—			—			7
Net cash provided by (used in) financing activities	6,246			(22,672		)	—			21,204			4,778
Decrease in cash, cash equivalents, and restricted cash	(3,926		)	(51,728		)	(558		)	—			(56,212		)
Cash, cash equivalents, and restricted cash at beginning of period	104,796			47,877			575			—			153,248
Cash, cash equivalents, and restricted cash at end of period	$	100,870		$	(3,851	)	$	17		$	—		$	97,036
in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2017
Net cash provided by (used in) operating activities	$	91,465		$	(193,721	)	$	32		$	—		$	(102,224	)
Cash flows from investing activities:
Capital expenditures	—			(3,702		)	—			—			(3,702		)
Proceeds from sale of fixed assets	—			84			—			—			84
Investments in unconsolidated entities	—			(421		)	—			—			(421		)
Advances to/from subsidiaries	(187,451		)	—			(26		)	187,477			—
Net cash used in investing activities	(187,451		)	(4,039		)	(26		)	187,477			(4,039		)
Cash flows from financing activities:
Repayment of debt	(400,012		)	(1,469		)	—			—			(401,481		)
Proceeds from issuance of new debt	400,000			—			—			—			400,000
Debt issuance costs	(5,649		)	—			—			—			(5,649		)
Tax payments for stock-based compensation awards	(1,322		)	—			—			—			(1,322		)
Advances to/from subsidiaries	—			186,563			—			(186,563		)	—
Other financing activities	—			—			—			—			—
Net cash (used in) provided by financing activities	(6,983		)	185,094			—			(186,563		)	(8,452		)
(Decrease) increase in cash, cash equivalents, and restricted cash	(102,969		)	(12,666		)	6			914			(114,715		)
Cash, cash equivalents, and restricted cash at beginning of period	294,192			16,854			724			(7,161		)	304,609
Cash, cash equivalents, and restricted cash at end of period	$	191,223		$	4,188		$	730		$	(6,247	)	$	189,894

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Discontinued Operations

3 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

We continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase stockholder value. This review entails an evaluation of both external market factors and our position in each market and over time has resulted in the decision to discontinue certain of our homebuilding operations. During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, the results of our New Jersey division are not included in the discontinued operations information shown below.

We have classified the results of operations of our discontinued operations separately in the accompanying condensed consolidated statements of operations for all periods presented. There were no material assets or liabilities related to our discontinued operations as of December 31, 2018 or September 30, 2018. Discontinued operations were not segregated in the condensed consolidated statements of cash flows. Therefore, amounts for certain captions in the condensed consolidated statements of cash flows will not agree with the respective data in the condensed consolidated statements of operations. The results of our discontinued operations in the condensed consolidated statements of operations for the periods presented were as follows:

	Three Months Ended
	December 31,
in thousands	2018			2017
Total revenue	$	55		$	625
Home construction and land sales expenses	33			667
Inventory impairments and lot option abandonments	—			450
Gross profit (loss)	22			(492		)
General and administrative expenses	33			16
Operating loss	(11		)	(508		)
Equity in (loss) income of unconsolidated entities	(1		)	12
Other expense, net	(1		)	(3		)
Loss from discontinued operations before income taxes	(13		)	(499		)
Benefit from income taxes	(2		)	(127		)
Loss from discontinued operations, net of tax	$	(11	)	$	(372	)

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Subsequent Event

3 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

Pursuant to the Company's share repurchase program, 561,851 shares of the Company's common stock were purchased from January 1, 2019 through February 1, 2019 for $6.4 million at an average price per share of $11.44. As of February 1, 2019, the remaining availability of the share repurchase program was $27.1 million.

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

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Basis of Consolidation

Basis of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Our net income (loss) is equivalent to our comprehensive income (loss), so we have not presented a separate statement of comprehensive income (loss).

In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for all periods presented (see Note 16 for a further discussion of our discontinued operations).

Our fiscal year 2019 began on October 1, 2018 and ends on September 30, 2019. Our fiscal year 2018 began on October 1, 2017 and ended on September 30, 2018.

Use of Estimates

Use of Estimates

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

Business Combinations

Business Combinations

On July 13, 2018, the Company acquired substantially all of the assets, operations, and certain assumed liabilities of Venture Homes, a leading private homebuilder in the Atlanta market, for a purchase price of $61.3 million, net of cash acquired. As of December 31, 2018, $57.3 million of the purchase price had been paid, net of cash acquired, with the remaining $4.0 million due during the second quarter of fiscal 2019. The acquired assets consisted of more than 1,100 total owned or controlled lots within 27 single-family communities in the greater Atlanta metropolitan area. The acquired lots included a backlog of 48 homes and 6 model homes. The acquired assets and liabilities were recorded at their estimated fair values and resulted in inventory of $56.0 million and goodwill of $10.6 million, and other assets of $0.7 million as well as accounts payable of $5.5 million and other liabilities of $0.2 million.

The purchase price accounting reflected above is preliminary and is based on estimates and assumptions that are subject to change within the measurement period, which is generally up to one year from the acquisition date pursuant to ASC 805. The purchase price allocation of Venture Homes is provisional pending completion of the fair value analysis of acquired assets and assumed liabilities.

Inventory Valuation

Inventory Valuation

Inventory assets are assessed for recoverability no less than quarterly in accordance with the policies described in Notes 2 and 5 to the audited consolidated financial statements within our 2018 Annual Report. Homebuilding inventories that are accounted for as held for development (projects in progress) include land and home construction assets grouped together as communities. Homebuilding inventories held for development are stated at cost (including direct construction costs, capitalized indirect costs, capitalized interest, and real estate taxes) unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. For communities that have been idled (land held for future development), all applicable interest and real estate taxes are expensed as incurred, and the inventory is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We record land held for sale at the lower of the carrying value or fair value less costs to sell.

Revenue Recognition

Revenue Recognition

We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in Accounting Standards Codification Topic 606.

• Identify the contract(s) with a customer

• Identify the performance obligations

• Determine the transaction price

• Allocate the transaction price

• Recognize revenue when the performance obligations are met

Homebuilding revenue

Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, and are considered deposits in-transit and classified as cash. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $13.5 million and $14.9 million as of December 31, 2018 and September 30, 2018, respectively. Of the customer liabilities outstanding as of September 30, 2018, $8.4 million were recognized in revenue during the three months ended December 31, 2018 upon closing of the related homes.

Land sales and other revenue

Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. In some periods, we also have other revenue related to broker fees as well as fees received for general contractor services that we perform on behalf of third parties. Revenue for broker and general contractor services are typically immaterial and are generally recognized as performance obligations are satisfied.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Revenue from Contracts with Customers. On October 1, 2018, we adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, collectively referred to as ASC 606. ASC 606 provides a new model for accounting for revenue arising from contracts with customers that supersedes most revenue recognition guidance. Under the new guidance, entities are required to recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled upon transferring control of goods or services to a customer. As part of our adoption of ASC 606, we applied the modified retrospective method to contracts that were not completed as of October 1, 2018. Further, results for reporting periods beginning on or after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the previous accounting standards. The adoption of ASC 606 had no impact on opening retained earnings and did not materially affect the amount or timing of our revenue.

Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires lessees to record most leases on their balance sheets. The timing and classification of lease-related expenses for lessees will depend on whether a lease is determined to be an operating lease or a finance lease using updated criteria within ASU 2016-02. Operating leases will result in straight-line expense (similar to current operating leases), while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Regardless of lease type, the lessee will recognize a right-of-use asset, representing the right to use the identified asset during the lease term, and a related lease liability, representing the present value of the lease payments over the lease term. Lessor accounting will be largely similar to that under the current lease accounting rules. ASU 2016-02 also requires significantly enhanced disclosures around an entity's leases and the related accounting. The guidance within ASU 2016-02 will be effective for the Company's fiscal year beginning October 1, 2019, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements (ASU 2018-11), which provides an optional transition method to apply the requirements of the new lease standard through a cumulative-effect adjustment in the period of adoption. The Company expects to adopt the standard on October 1, 2019 using the optional transition method. We continue to evaluate the impact of ASU 2016-02 on our consolidated financial statements. However, a large majority of our leases are for office space, which we have determined will be treated as operating leases under ASU 2016-02. As such, we anticipate recording a right-of-use asset and related lease liability for these leases. We do not anticipate any significant change to our statements of operations or cash flows as a result of adopting ASU 2016-02.

Intangibles - Goodwill and Other. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 from the goodwill impairment test. This change will allow an entity to avoid calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination, thus reducing the cost and complexity of evaluating goodwill for impairment. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We do not believe the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements and disclosures.

Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework (ASU 2018-13). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. We are currently assessing the impact of adopting the updated provisions.

Internal-Use Software. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures.

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

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Disaggregation of Revenue

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

	Three Months Ended
	December 31,
in thousands	2018		2017
Homebuilding revenue	$	400,982	$	367,754
Land sales and other revenue	1,058		4,735
Total revenue (a)	$	402,040	$	372,489

^(a) Please see Note 14 for total revenue disaggregated by reportable segment.

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Elements [Abstract]

Supplemental disclosure of non-cash activity

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

	Three Months Ended
	December 31,
in thousands	2018		2017
Supplemental disclosure of cash activity:
Interest payments	$	13,986	$	10,766
Income tax payments	121		—
Tax refunds received	1,148		39
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	84,399	$	177,812
Restricted cash	12,637		12,082
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	97,036	$	189,894

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Investments in Unconsolidated Entities (Tables)

3 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments in unconsolidated joint ventures, total equity and outstanding borrowings

The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of December 31, 2018 and September 30, 2018:

in thousands	December 31, 2018		September 30, 2018
Beazer's investment in unconsolidated entities	$	3,650	$	4,035
Total equity of unconsolidated entities	8,578		10,113
Total outstanding borrowings of unconsolidated entities	11,867		12,266

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

	Three Months Ended
	December 31,
in thousands	2018			2017
Equity in loss of unconsolidated entities	$	(64	)	$	(101	)

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Inventory (Tables)

3 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Schedule of inventory

The components of our owned inventory are as follows as of December 31, 2018 and September 30, 2018:

in thousands	December 31, 2018		September 30, 2018
Homes under construction	$	478,539	$	476,752
Development projects in progress	925,728		907,793
Land held for future development	83,177		83,173
Land held for sale	6,997		7,781
Capitalized interest	151,886		144,645
Model homes	75,793		72,140
Total owned inventory	$	1,722,120	$	1,692,284

Schedule of total owned inventory, by segment

Total owned inventory by reportable segment is presented in the table below as of December 31, 2018 and September 30, 2018:

in thousands	Projects in Progress (a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
December 31, 2018
West Segment	$	785,702	$	58,129	$	—	$	843,831
East Segment	277,300		14,077		3,906		295,283
Southeast Segment	357,172		10,971		3,091		371,234
Corporate and unallocated (b)	211,772		—		—		211,772
Total	$	1,631,946	$	83,177	$	6,997	$	1,722,120
September 30, 2018
West Segment	$	763,453	$	58,125	$	—	$	821,578
East Segment	280,761		14,077		4,580		299,418
Southeast Segment	358,126		10,971		3,177		372,274
Corporate and unallocated (b)	198,990		—		24		199,014
Total	$	1,601,330	$	83,173	$	7,781	$	1,692,284

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

^(b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Land held for sale amount includes parcels held by our discontinued operations.

Schedule of Undiscounted Cash Flow Analysis Prepared

The table below summarizes the results of our undiscounted cash flow analyses by reportable segment, where applicable, for the quarter ended December 31, 2018 (the period that such analyses were required):

$ in thousands		Undiscounted Cash Flow Analyses Prepared
Segment (a)	# of Communities on Watch List (b)	# of Communities (c)	Pre-analysis Book Value (BV)		Aggregate Undiscounted Cash Flow as a % of BV (d)
Quarter Ended December 31, 2018
West	3	—	$	—	—	%
Southeast	1	1	2,225		71.3	%
Corporate and unallocated (e)	—	—	387		N/A (f)
Total	4	1	$	2,612

^(a) We have elected to aggregate our disclosure at the reportable segment level because we believe this level of disclosure is most meaningful to the readers of our financial statements.

^(b) Number of communities in this column excludes communities that are closing out and have less than ten closings remaining.

^(c) Number of communities in this column is lower than the number of communities on our watch list because it excludes communities due to certain qualitative considerations that would imply that the low profitability levels are temporary in nature.

^(d) An aggregate undiscounted cash flow as a percentage of book value under 100% would indicate a possible impairment and is consistent with our "watch list" methodology. The book value of each project assessed for recoverability on an undiscounted cash flow basis includes all inventory costs applicable to the project as of the date of the analysis, including capitalized interest and indirects.

^(e) Amount represents capitalized interest and indirects balance related to the communities for which an undiscounted cash flow analysis was prepared. Capitalized interest and indirects are maintained within our Corporate and unallocated segment.

^(f) N/A - not applicable.

Schedule of Discounted Cash Flow Analysis

The following table presents, by reportable segment, details of the impairment charges taken on projects in progress for the periods presented:

$ in thousands	Results of Discounted Cash Flow Analyses Prepared
Segment	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at time of Impairment
Quarter Ended December 31, 2018
Southeast	1	15	$	858	$	1,367
Corporate and unallocated (a)	—	—	149		238
Total	1	15	$	1,007	$	1,605

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

Quantitative unobservable inputs for inventory impairment

The following table presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities we impaired during the periods presented:

$ in thousands	Three Months Ended
Unobservable Inputs	December 31, 2018
Average selling price	$	412
Closings per community per month	1 - 2
Discount rate	16.8		%

Schedule of inventory impairments and lot option abandonment charges, by reportable homebuilding segment

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

	Three Months Ended December 31,
in thousands	2018		2017
Projects in Progress:
Southeast	$	858	$	—
Corporate and unallocated (a)	149		—
Total impairment charges on projects in progress	$	1,007	$	—
Discontinued Operations:
Land Held for Sale	—		450
Total impairment and abandonment charges	$	1,007	$	450

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

Summary of interests in lot option agreements

The following table provides a summary of our interests in lot option agreements as of December 31, 2018 and September 30, 2018:

in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of December 31, 2018
Unconsolidated lot option agreements	$	71,644	$	367,026
As of September 30, 2018
Unconsolidated lot option agreements	$	72,191	$	383,150

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Interest (Tables)

3 Months Ended

Dec. 31, 2018

Real Estate [Abstract]

Real Estate Inventory, Capitalized Interest Costs

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

	Three Months Ended December 31,
in thousands	2018			2017
Capitalized interest in inventory, beginning of period	$	144,645		$	139,203
Interest incurred	24,921			25,555
Capitalized interest impaired	(115		)	—
Interest expense not qualified for capitalization and included as other expense (a)	(242		)	(3,435		)
Capitalized interest amortized to home construction and land sales expenses (b)	(17,323		)	(16,476		)
Capitalized interest in inventory, end of period	$	151,886		$	144,847

^(a) The amount of interest we are able to capitalize is dependent upon our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale.

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

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Borrowings (Tables)

3 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

December 31, 2018 and September 30, 2018, we had the following debt, net of premium/discounts and unamortized debt issuance costs:

in thousands	Maturity Date	December 31, 2018			September 30, 2018
8 3/4% Senior Notes	March 2022	$	500,000		$	500,000
7 1/4% Senior Notes	February 2023	24,834			24,834
6 3/4% Senior Notes	March 2025	250,000			250,000
5 7/8% Senior Notes	October 2027	400,000			400,000
Unamortized debt premium, net		2,447			2,640
Unamortized debt issuance costs		(13,651		)	(14,336		)
Total Senior Notes, net		1,163,630			1,163,138
Junior Subordinated Notes (net of unamortized accretion of $36,253 and $36,770, respectively)	July 2036	64,520			64,003
Revolving Credit Facility	February 2021	25,000			—
Other Secured Notes payable	Various Dates	2,634			4,113
Total debt, net		$	1,255,784		$	1,231,254

Debt Instrument Redemption

For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes:

Senior Note Description	Issuance Date	Maturity Date	Redemption Terms
8 3/4% Senior Notes	September 2016	March 2022	Callable at any time prior to March 15, 2019, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2019, callable at a redemption price equal to 104.375% of the principal amount; on or after March 15, 2020, callable at a redemption price equal to 102.188% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 100.000% of the principal amount plus, in each case, accrued and unpaid interest
7 1/4% Senior Notes	February 2013	February 2023	Callable at any time on or after February 1, 2018, callable at a redemption price equal to 103.625% of the principal amount; on or after February 1, 2019, callable at a redemption price equal to 102.417% of the principal amount; on or after February 1, 2020, callable at a redemption price equal to 101.208% of the principal amount; on or after February 1, 2021, callable at 100.000% of the principal amount plus, in each case, accrued and unpaid interest
6 3/4% Senior Notes	March 2017	March 2025	Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest
5 7/8% Senior Notes	October 2017	October 2027	Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest

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Contingencies (Tables)

3 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Warranty reserves

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

	Three Months Ended
	December 31,
in thousands	2018			2017
Balance at beginning of period	$	15,331		$	18,091
Accruals for warranties issued (a)	2,305			4,212
Changes in liability related to warranties existing in prior periods	(1,874		)	(2,296		)
Payments made	(2,330		)	(4,191		)
Balance at end of period	$	13,432		$	15,816

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

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Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

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

The following table presents the period-end balances of our assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented:

in thousands	Level 1		Level 2		Level 3		Total
As of December 31, 2018
Deferred compensation plan assets (a)	$	—	$	1,760	$	—	$	1,760
Development projects in progress (b)	—		—		1,605		1,605
As of September 30, 2018
Deferred compensation plan assets (a)	$	—	$	1,578	$	—	$	1,578
Development projects in progress (b)	—		—		1,312		1,312
Land held for sale (b)	—		—		1,724		1,724
Unconsolidated entity investments (b)	—		—		80		80

^(a) Measured at fair value on a recurring basis.

^(b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirects related to the asset.

Schedule of carrying values and estimated fair values of other financial assets and liabilities

The following table presents the carrying value and estimated fair value of certain of our other financial liabilities as of December 31, 2018 and September 30, 2018:

	As of December 31, 2018				As of September 30, 2018
in thousands	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
Senior Notes (b)	$	1,163,630	$	1,048,346	$	1,163,138	$	1,096,214
Junior Subordinated Notes	64,520		64,520		64,003		64,003
Total	$	1,228,150	$	1,112,866	$	1,227,141	$	1,160,217

^(a) Carrying amounts are net of unamortized debt premiums/discounts, debt issuance costs, or accretion.

^(b) The estimated fair value for our publicly-held Senior Notes has been determined using quoted market rates (Level 2).

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Stock-based compensation (Tables)

3 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock options and SSARs outstanding

Following is a summary of stock option activity for the three months ended December 31, 2018:

	Three Months Ended
	December 31, 2018
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	533,052		$	14.26
Granted	25,230		10.38
Exercised	(1,000	)	7.56
Cancelled	(1,319	)	11.53
Outstanding at end of period	555,963		$	14.10
Exercisable at end of period	504,092		$	14.13
Vested or expected to vest in the future	552,799		$	14.13

Schedule of nonvested stock awards activity

Following is a summary of restricted stock activity for the three months ended December 31, 2018:

	Three Months Ended December 31, 2018
	Performance-Based Restricted Shares		Time-Based Restricted Shares		Total Restricted Shares
Beginning of period	644,785		431,783		1,076,568
Granted (a)	467,819		441,991		909,810
Vested (a)	(309,843	)	(196,246	)	(506,089	)
Forfeited	(7,020	)	(21,329	)	(28,349	)
End of period	795,741		656,199		1,451,940

^(a) Grant and vesting activity during the three months ended December 31, 2018 include 86,050 shares that were issued above target based on the performance level achieved under performance-based restricted stock vesting in the current period.

As of December 31, 2018 and September 30, 2018, total unrecognized compensation cost related to unvested restricted stock awards was $14.8 million and $8.8 million, respectively. The remaining cost as of December 31, 2018 is expected to be recognized over a weighted average period of 2.2 years.

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Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings per share

Following is a summary of the components of basic and diluted income (loss) per share for the periods presented:

	Three Months Ended December 31,
in thousands, except per share data	2018			2017
Numerator:
Income (loss) from continuing operations	$	7,322		$	(130,575	)
Loss from discontinued operations, net of tax	(11		)	(372		)
Net income (loss)	$	7,311		$	(130,947	)
Denominator:
Basic weighted-average shares	31,801			32,055
Dilutive effect of restricted stock awards	243			—
Dilutive effect of stock options	11			—
Diluted weighted-average shares (a)	32,055			32,055
Basic and diluted income (loss) per share:
Continuing operations	$	0.23		$	(4.07	)
Discontinued operations	—			(0.01		)
Total	$	0.23		$	(4.08	)

^(a) The following potentially dilutive shares were excluded from the calculation of diluted income (loss) per share as a result of their anti-dilutive effect. Due to the reported net loss for the three months ended December 31, 2017, all common stock equivalents were excluded from the computation of diluted loss per share for that period because inclusion would have resulted in anti-dilution.

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	Three Months Ended December 31,
in thousands	2018	2017
Stock options	493	556
Time-based restricted stock	195	828
Performance-based restricted stock	—	628

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Other Liabilities Other Liabilities (Tables)

3 Months Ended

Dec. 31, 2018

Other Liabilities Disclosure [Abstract]

Schedule of other liabilities

Otherliabilities include the following as of December 31, 2018 and September 30, 2018:

in thousands	December 31, 2018		September 30, 2018
Accrued interest	$	24,217	$	14,401
Accrued bonus and deferred compensation	20,236		41,508
Customer deposits	13,462		14,903
Accrued warranty expense	13,432		15,331
Litigation accrual	3,348		3,656
Income tax liabilities	856		710
Other	37,082		35,880
Total	$	112,633	$	126,389

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Segment Information (Tables)

3 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of segment reporting information

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

	Three Months Ended
	December 31,
in thousands	2018		2017
Revenue
West	$	208,944	$	177,971
East	88,746		88,853
Southeast	104,350		105,665
Total revenue	$	402,040	$	372,489

	Three Months Ended
	December 31,
in thousands	2018			2017
Operating income (a)
West	$	24,261		$	21,110
East	5,395			7,396
Southeast	1,380			6,910
Segment total	31,036			35,416
Corporate and unallocated (b)	(27,530		)	(28,735		)
Total operating income	$	3,506		$	6,681

	Three Months Ended
	December 31,
in thousands	2018		2017
Depreciation and amortization
West	$	1,278	$	1,256
East	538		439
Southeast	610		579
Segment total	2,426		2,274
Corporate and unallocated (b)	344		233
Total depreciation and amortization	$	2,770	$	2,507

^(a) Operating income is impacted by impairment and abandonment charges incurred during the periods presented (see Note 5).

^(b) Corporate and unallocated operating loss includes amortization of capitalized interest; movement in capitalized indirects; expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing; and other amounts that are not allocated to our operating segments. Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments.

pital expenditures by segment for the periods presented:

	Three Months Ended
	December 31,
in thousands	2018		2017
Capital Expenditures
West	$	2,651	$	1,776
East	762		595
Southeast	859		743
Corporate and unallocated	2,082		588
Total capital expenditures	$	6,354	$	3,702

The following table presents assets by segment as of December 31, 2018 and September 30, 2018:

in thousands	December 31, 2018		September 30, 2018
Assets
West	$	855,823	$	835,230
East	305,232		335,474
Southeast	390,934		414,685
Corporate and unallocated (a)	551,401		542,713
Total assets	$	2,103,390	$	2,128,102

^(a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirects, and other items that are not allocated to the segments.

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Supplemental Guarantor Information (Tables)

3 Months Ended

Dec. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Unaudited Condensed Consolidating Balance Sheet Information

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

December 31, 2018

(Unaudited)

in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	82,115	$	2,267		$	17	$	—		$	84,399
Restricted cash	11,897		740			—		—			12,637
Accounts receivable (net of allowance of $378)	—		19,349			—		—			19,349
Owned inventory	—		1,722,120			—		—			1,722,120
Investments in unconsolidated entities	773		2,877			—		—			3,650
Deferred tax assets, net	218,025		—			—		—			218,025
Property and equipment, net	—		24,408			—		—			24,408
Investments in subsidiaries	636,800		—			—		(636,800		)	—
Intercompany	963,614		(6,858		)	1,686		(958,442		)	—
Goodwill	—		10,605			—		—			10,605
Other assets	982		7,215			—		—			8,197
Total assets	$	1,914,206	$	1,782,723		$	1,703	$	(1,595,242	)	$	2,103,390
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	99,864		$	—	$	—		$	99,864
Other liabilities	24,261		88,359			13		—			112,633
Intercompany	1,686		956,756			—		(958,442		)	—
Total debt (net of premium and debt issuance costs)	1,253,150		2,634			—		—			1,255,784
Total liabilities	1,279,097		1,147,613			13		(958,442		)	1,468,281
Stockholders’ equity	635,109		635,110			1,690		(636,800		)	635,109
Total liabilities and stockholders’ equity	$	1,914,206	$	1,782,723		$	1,703	$	(1,595,242	)	$	2,103,390

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

September 30, 2018

(Unaudited)

in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	93,875	$	45,355	$	575	$	—		$	139,805
Restricted cash	10,921		2,522		—		—			13,443
Accounts receivable (net of allowance of $378)	—		24,647		—		—			24,647
Owned inventory	—		1,692,284		—		—			1,692,284
Investments in unconsolidated entities	773		3,262		—		—			4,035
Deferred tax assets, net	213,955		—		—		—			213,955
Property and equipment, net	—		20,843		—		—			20,843
Investments in subsidiaries	645,086		—		—		(645,086		)	—
Intercompany	922,525		—		2,304		(924,829		)	—
Goodwill	—		9,751		—		—			9,751
Other assets	694		8,626		19		—			9,339
Total assets	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	126,432	$	—	$	—		$	126,432
Other liabilities	14,357		111,906		126		—			126,389
Intercompany	2,304		922,525		—		(924,829		)	—
Total debt (net of premium and debt issuance costs)	1,227,141		4,113		—		—			1,231,254
Total liabilities	1,243,802		1,164,976		126		(924,829		)	1,484,075
Stockholders’ equity	644,027		642,314		2,772		(645,086		)	644,027
Total liabilities and stockholders’ equity	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102

Unaudited Condensed Consolidating Statements of Income (Loss) and Unaudited Comprehensive Income (Loss)

Beazer Homes USA, Inc.

Consolidating Statements of Operations

(Unaudited)

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Total revenue	$	—		$	402,040		$	115		$	(115	)	$	402,040
Home construction and land sales expenses	17,323			323,170			—			(115		)	340,378
Inventory impairments and abandonments	115			892			—			—			1,007
Gross (loss) profit	(17,438		)	77,978			115			—			60,655
Commissions	—			15,737			—			—			15,737
General and administrative expenses	—			38,646			(4		)	—			38,642
Depreciation and amortization	—			2,770			—			—			2,770
Operating (loss) income	(17,438		)	20,825			119			—			3,506
Equity in loss of unconsolidated entities	—			(64		)	—			—			(64		)
Other (expense) income, net	(242		)	204			(4		)	—			(42		)
(Loss) income from continuing operations before income taxes	(17,680		)	20,965			115			—			3,400
Expense (benefit) from income taxes	20,385			(24,336		)	29			—			(3,922		)
Equity in income of subsidiaries	45,387			—			—			(45,387		)	—
Income from continuing operations	7,322			45,301			86			(45,387		)	7,322
Loss from discontinued operations, net of tax	—			(7		)	(4		)	—			(11		)
Equity in loss of subsidiaries from discontinued operations	(11		)	—			—			11			—
Net income	$	7,311		$	45,294		$	82		$	(45,376	)	$	7,311
in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2017
Total revenue	$	—		$	372,489		$	14		$	(14	)	$	372,489
Home construction and land sales expenses	16,468			295,206			—			(14		)	311,660
Gross (loss) profit	(16,468		)	77,283			14			—			60,829
Commissions	—			14,356			—			—			14,356
General and administrative expenses	—			37,244			41			—			37,285
Depreciation and amortization	—			2,507			—			—			2,507
Operating (loss) income	(16,468		)	23,176			(27		)	—			6,681
Equity in loss of unconsolidated entities	—			(101		)	—			—			(101		)
Loss on extinguishment of debt	(25,904		)	—			—			—			(25,904		)
Other (expense) income, net	(3,435		)	296			(6		)	—			(3,145		)
(Loss) income from continuing operations before income taxes	(45,807		)	23,371			(33		)	—			(22,469		)
(Benefit) expense from income taxes	(12,185		)	120,303			(12		)	—			108,106
Equity in loss of subsidiaries	(96,953		)	—			—			96,953			—
Loss from continuing operations	(130,575		)	(96,932		)	(21		)	96,953			(130,575		)
Loss from discontinued operations	—			(369		)	(3		)	—			(372		)
Equity in loss of subsidiaries from discontinued operations	(372		)	—			—			372			—
Net loss	$	(130,947	)	$	(97,301	)	$	(24	)	$	97,325		$	(130,947	)

Unaudited Condensed Consolidating Statements of Cash Flow Information

Beazer Homes USA, Inc.

Condensed Consolidating Statements of Cash Flow Information

(Unaudited)

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Net cash used in operating activities	$	(31,908	)	$	(22,756	)	$	(26	)	$	—		$	(54,690	)
Cash flows from investing activities:
Capital expenditures	—			(6,354		)	—			—			(6,354		)
Proceeds from sale of fixed assets	—			54			—			—			54
Return of capital from unconsolidated entities	532			—			(532		)	—			—
Advances to/from subsidiaries	21,204			—			—			(21,204		)	—
Net cash provided by (used in) investing activities	21,736			(6,300		)	(532		)	(21,204		)	(6,300		)
Cash flows from financing activities:
Repayment of debt	(11		)	(1,468		)	—			—			(1,479		)
Repayment of borrowings from credit facility	(75,000		)	—			—			—			(75,000		)
Borrowings from credit facility	100,000			—			—			—			100,000
Debt issuance costs	(400		)	—			—			—			(400		)
Repurchase of common stock	(16,500		)	—			—			—			(16,500		)
Tax payments for stock-based compensation awards	(1,850		)	—			—			—			(1,850		)
Advances to/from subsidiaries	—			(21,204		)	—			21,204			—
Other financing activities	7			—			—			—			7
Net cash provided by (used in) financing activities	6,246			(22,672		)	—			21,204			4,778
Decrease in cash, cash equivalents, and restricted cash	(3,926		)	(51,728		)	(558		)	—			(56,212		)
Cash, cash equivalents, and restricted cash at beginning of period	104,796			47,877			575			—			153,248
Cash, cash equivalents, and restricted cash at end of period	$	100,870		$	(3,851	)	$	17		$	—		$	97,036
in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2017
Net cash provided by (used in) operating activities	$	91,465		$	(193,721	)	$	32		$	—		$	(102,224	)
Cash flows from investing activities:
Capital expenditures	—			(3,702		)	—			—			(3,702		)
Proceeds from sale of fixed assets	—			84			—			—			84
Investments in unconsolidated entities	—			(421		)	—			—			(421		)
Advances to/from subsidiaries	(187,451		)	—			(26		)	187,477			—
Net cash used in investing activities	(187,451		)	(4,039		)	(26		)	187,477			(4,039		)
Cash flows from financing activities:
Repayment of debt	(400,012		)	(1,469		)	—			—			(401,481		)
Proceeds from issuance of new debt	400,000			—			—			—			400,000
Debt issuance costs	(5,649		)	—			—			—			(5,649		)
Tax payments for stock-based compensation awards	(1,322		)	—			—			—			(1,322		)
Advances to/from subsidiaries	—			186,563			—			(186,563		)	—
Other financing activities	—			—			—			—			—
Net cash (used in) provided by financing activities	(6,983		)	185,094			—			(186,563		)	(8,452		)
(Decrease) increase in cash, cash equivalents, and restricted cash	(102,969		)	(12,666		)	6			914			(114,715		)
Cash, cash equivalents, and restricted cash at beginning of period	294,192			16,854			724			(7,161		)	304,609
Cash, cash equivalents, and restricted cash at end of period	$	191,223		$	4,188		$	730		$	(6,247	)	$	189,894

XML

Discontinued Operations (Tables)

3 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Results of Discontinued Operations

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

	Three Months Ended
	December 31,
in thousands	2018			2017
Total revenue	$	55		$	625
Home construction and land sales expenses	33			667
Inventory impairments and lot option abandonments	—			450
Gross profit (loss)	22			(492		)
General and administrative expenses	33			16
Operating loss	(11		)	(508		)
Equity in (loss) income of unconsolidated entities	(1		)	12
Other expense, net	(1		)	(3		)
Loss from discontinued operations before income taxes	(13		)	(499		)
Benefit from income taxes	(2		)	(127		)
Loss from discontinued operations, net of tax	$	(11	)	$	(372	)

XML

Description of Business (Details)	Dec. 31, 2018 state region
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states in which home building segments operate | state	13
Number of regions in which entity operates | region	3

XML

Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 402,040	$ 372,489
Customer deposits	13,462		$ 14,903
Contract with customer, liability, revenue recognized	8,400
Homebuilding revenue
Disaggregation of Revenue [Line Items]
Total revenue	400,982	367,754
Land sales and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,058	$ 4,735

XML

Basis of Presentation and Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		1 Months Ended
	Nov. 15, 2018	Dec. 31, 2018	Nov. 13, 2018
Accounting Policies [Abstract]
Authorized amount repurchase of common stock			$ 50.0
Aggregate amount repurchased of outstanding common stock	$ 16.5
Completed common stock repurchase (in shares)		1.6
Average price per share (in dollars per share)		$ 10.62
Remaining authorized repurchase amount		$ 33.5

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Basis of Presentation and Summary of Significant Accounting Policies - Business Combinations (Details) - Venture Homes $ in Millions	Jul. 13, 2018 USD ($) home lot Community	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Purchase price, net of cash acquired	$ 61.3
Purchase price paid, net cash acquired		$ 57.3
Remaining payments due		$ 4.0
Number of active communities | Community	27
Number of homes in backlog | home	48
Number of model homes in backlog | home	6
Inventory acquired	$ 56.0
Intangible Assets, Net (Including Goodwill)	10.6
Other assets acquired	0.7
Accounts payable	5.5
Other liabilities assumed	$ 0.2
Minimum
Business Acquisition [Line Items]
Number of lots acquired | lot	1,100

XML

Supplemental Cash Flow Information - Supplemental Disclosure of Non-cash Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Supplemental disclosure of cash activity:
Interest payments	$ 13,986	$ 10,766
Income tax payments	121	0
Tax refunds received	1,148	39
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	84,399	177,812	$ 139,805
Restricted cash	12,637	12,082	$ 13,443
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 97,036	$ 189,894

XML

Investments in Unconsolidated Entities - Outstanding Borrowings of Unconsolidated Entities and Equity in Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	$ 3,650		$ 4,035
Total equity of unconsolidated entities	8,578		10,113
Total outstanding borrowings of unconsolidated entities	11,867		$ 12,266
Equity in loss of unconsolidated entities	$ (64)	$ (101)

XML

Investments in Unconsolidated Entities - Narrative (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Impairment of unconsolidated entity investments	$ 0	$ 0
Financial Guarantee
Schedule of Equity Method Investments [Line Items]
Outstanding guarantees	$ 0		$ 0

XML

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Inventory Disclosure [Abstract]
Homes under construction	$ 478,539	$ 476,752
Development projects in progress	925,728	907,793
Land held for future development	83,177	83,173
Land held for sale	6,997	7,781
Capitalized interest	151,886	144,645	$ 144,847	$ 139,203
Model homes	75,793	72,140
Total owned inventory	$ 1,722,120	$ 1,692,284

XML

Inventory - Narrative (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2018 USD ($) home Community	Dec. 31, 2017 USD ($) Community	Sep. 30, 2018 USD ($) home
Inventory Disclosure [Abstract]
Number of substantially completed homes unsold | home	223		240
Total value of substantially completed homes | $	$ 83,900		$ 84,800
Threshold number of homes below a minimum threshold of profitability | home	10
Inventory impairment charge | $	$ 1,007	$ 500
Real Estate Properties [Line Items]
Number of communities on watch list	4	2
Number of communities requiring further analysis	1	0
West Segment
Real Estate Properties [Line Items]
Number of communities on watch list	3
Number of communities requiring further analysis	0
Southeast Segment
Real Estate Properties [Line Items]
Number of communities on watch list	1
Number of communities requiring further analysis	1

XML

Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Segment Reporting Information [Line Items]
Projects in progress	$ 1,631,946	$ 1,601,330
Land held for future development	83,177	83,173
Land held for sale	6,997	7,781
Total owned inventory	1,722,120	1,692,284
Corporate and unallocated
Segment Reporting Information [Line Items]
Projects in progress	211,772	198,990
Land held for future development	0	0
Land held for sale	0	24
Total owned inventory	211,772	199,014
West Segment | Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	785,702	763,453
Land held for future development	58,129	58,125
Land held for sale	0	0
Total owned inventory	843,831	821,578
East Segment | Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	277,300	280,761
Land held for future development	14,077	14,077
Land held for sale	3,906	4,580
Total owned inventory	295,283	299,418
Southeast Segment | Operating Segments
Segment Reporting Information [Line Items]
Projects in progress	357,172	358,126
Land held for future development	10,971	10,971
Land held for sale	3,091	3,177
Total owned inventory	$ 371,234	$ 372,274

XML

Inventory - Recoverability Schedule of Inventory assets Held for Development, by Reportable Segment (Details) (Details) $ in Thousands	Dec. 31, 2018 USD ($) Community	Dec. 31, 2017 Community
Real Estate Properties [Line Items]
Number of Communities on Watch List	4	2
Number of Communities	1	0
Pre-analysis Book Value | $	$ 2,612
West Segment
Real Estate Properties [Line Items]
Number of Communities on Watch List	3
Number of Communities	0
Pre-analysis Book Value | $	$ 0
Aggregate Undiscounted Cash Flow as a % of BV	0.00%
Southeast Segment
Real Estate Properties [Line Items]
Number of Communities on Watch List	1
Number of Communities	1
Pre-analysis Book Value | $	$ 2,225
Aggregate Undiscounted Cash Flow as a % of BV	71.30%
Corporate and unallocated
Real Estate Properties [Line Items]
Number of Communities on Watch List	0
Number of Communities	0
Pre-analysis Book Value | $	$ 387

XML

Inventory - Results of Discounted Cash Flow Analysis (Details) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2018 USD ($) lot Community	Dec. 31, 2017 USD ($)
Real Estate, Write-down or Reserve [Line Items]
Number of Communities Impaired | Community	1
Number of Lots Impaired | lot	15
Impairment Charge	$ 1,007	$ 500
Estimated Fair Value of Impaired Inventory at time of Impairment	$ 1,605
Continuing Operations | Southeast Segment
Real Estate, Write-down or Reserve [Line Items]
Number of Communities Impaired | Community	1
Number of Lots Impaired | lot	15
Impairment Charge	$ 858
Estimated Fair Value of Impaired Inventory at time of Impairment	$ 1,367
Corporate and unallocated | Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Number of Communities Impaired | Community	0
Number of Lots Impaired | lot	0
Impairment Charge	$ 149
Estimated Fair Value of Impaired Inventory at time of Impairment	$ 238

XML

Inventory - Quantitative Unobservable Inputs (Details) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2018 USD ($) home
Quantitative unobservable inputs for inventory impairment [Line Items]
Average selling price | $	$ 412
Minimum
Quantitative unobservable inputs for inventory impairment [Line Items]
Closings per community per month	1
Maximum
Quantitative unobservable inputs for inventory impairment [Line Items]
Closings per community per month	2
Measurement Input, Discount Rate
Quantitative unobservable inputs for inventory impairment [Line Items]
Discount rate	0.168

XML

Inventory - Impairments and Lot Option Abandonment Charges, by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Real Estate, Write-down or Reserve [Line Items]
Total impairment and abandonment charges	$ 1,007	$ 450
Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Impairment charges on projects in progress	1,007	0
Discontinued Operations
Real Estate, Write-down or Reserve [Line Items]
Land Held for Sale	0	450
Southeast Segment | Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Impairment charges on projects in progress	858	0
Corporate and unallocated | Continuing Operations
Real Estate, Write-down or Reserve [Line Items]
Impairment charges on projects in progress	$ 149	$ 0

XML

Inventory - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Real Estate Properties [Line Items]
Deposits & Non-refundable Pre-acquisition Costs Incurred	$ 71,644	$ 72,191
Remaining Obligation	$ 367,026	$ 383,150

XML

Interest - Schedule of Capitalized Interest (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Capitalized interest in inventory, beginning of period	$ 144,645	$ 139,203
Interest incurred	24,921	25,555
Capitalized interest impaired	(115)	0
Interest expense not qualified for capitalization and included as other expense	(242)	(3,435)
Capitalized interest amortized to home construction and land sales expenses	(17,323)	(16,476)
Capitalized interest in inventory, end of period	$ 151,886	$ 144,847

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Borrowings - Schedule of Long-term Debt (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018	Jul. 30, 2016
Debt Instrument [Line Items]
Unamortized debt premium, net	$ 2,447,000	$ 2,640,000
Unamortized debt issuance costs	(13,651,000)	(14,336,000)
Total debt, net	1,255,784,000	1,231,254,000
Senior Notes
Debt Instrument [Line Items]
Unamortized debt premium, net	2,447,000	2,640,000
Unamortized debt issuance costs	(13,651,000)	(14,336,000)
Total debt, net	$ 1,163,630,000	1,163,138,000
Senior Notes | 8 3/4% Senior Notes Maturing March 2022
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	8.75%
Total debt, net	$ 500,000,000	500,000,000
Senior Notes | 7 1/4% Senior Notes Maturing February 2023
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	7.25%
Total debt, net	$ 24,834,000	24,834,000
Senior Notes | 6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	6.75%
Total debt, net	$ 250,000,000	250,000,000
Senior Notes | 5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	5.875%
Total debt, net	$ 400,000,000	400,000,000
Junior Subordinated Notes
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)			7.987%
Total debt, net	64,520,000	64,003,000
Other Secured Notes payable
Debt Instrument [Line Items]
Total debt, net	2,634,000	4,113,000
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility	$ 25,000,000	$ 0

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Borrowings - Narrative (Details)	Jul. 30, 2016	Dec. 31, 2018 USD ($) lender	Sep. 30, 2018 USD ($)	May 31, 2018 USD ($)	Jan. 31, 2010 USD ($)
Line of Credit Facility [Abstract]
Amount of available borrowings under the Secured Revolving Credit Facility		$ 183,500,000	$ 200,000,000
Senior Notes [Abstract]
Ownership interest In guarantor subsidiaries		100.00%
Secured Debt [Abstract]
Total debt, net		$ 1,255,784,000	1,231,254,000
Junior Subordinated Notes
Junior Subordinated Notes [Abstract]
Stated interest rate on debt instrument (percent)	7.987%
Effective period of debt instrument interest rate	10 years
Face amount modification					$ 75,000,000
Unamortized accretion		36,253,000	36,770,000
Secured Debt [Abstract]
Total debt, net		$ 64,520,000	64,003,000
Weighted average fixed interest rate of debt (percent)		4.97%
Other secured notes payable
Secured Debt [Abstract]
Total debt, net		$ 2,634,000	4,113,000
Weighted average fixed interest rate of debt (percent)		1.88%
Revolving Credit Facility
Line of Credit Facility [Abstract]
Credit facility borrowing capacity		$ 210,000,000.0	200,000,000.0
Inventory assets pledged as collateral		$ 800,000,000
Number of lenders | lender		3
Borrowings outstanding		$ 25,000,000	0
Letters of credit secured using cash collateral		$ 1,500,000.0	0
Revolving Credit Facility | Maximum
Line of Credit Facility [Abstract]
Aggregate collateral ratio		4.00
Revolving Credit Facility | Minimum
Line of Credit Facility [Abstract]
Aggregate collateral ratio		1.00
Letter of Credit, Cash Secured
Line of Credit Facility [Abstract]
Letters of credit secured using cash collateral		$ 11,200,000	$ 10,400,000
Standby Letters of Credit | Standby Letters for Credit Facility
Line of Credit Facility [Abstract]
Credit facility borrowing capacity				$ 50,000,000.0
Letters of credit secured using cash collateral		$ 28,500,000
Standby Letters of Credit | Backstop Standby Letters of Credit
Line of Credit Facility [Abstract]
Credit facility borrowing capacity				$ 30,000,000

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Borrowings - Debt Redemption (Details) - Senior Notes	3 Months Ended
	Dec. 31, 2018
8 3/4% Senior Notes Maturing March 2022
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	8.75%
8 3/4% Senior Notes Maturing March 2022 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
8 3/4% Senior Notes Maturing March 2022 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	104.375%
8 3/4% Senior Notes Maturing March 2022 | Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.188%
8 3/4% Senior Notes Maturing March 2022 | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
7 1/4% Senior Notes Maturing February 2023
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	7.25%
7 1/4% Senior Notes Maturing February 2023 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	103.625%
7 1/4% Senior Notes Maturing February 2023 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.417%
7 1/4% Senior Notes Maturing February 2023 | Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.208%
7 1/4% Senior Notes Maturing February 2023 | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
6 3/4% Senior Notes Maturing March of 2025
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	6.75%
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	105.063%
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	103.375%
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.688%
6 3/4% Senior Notes Maturing March of 2025 | Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
5 7/8% Senior Notes Maturing October 2027
Debt Instrument [Line Items]
Stated interest rate on debt instrument (percent)	5.875%
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price (as a percentage)	102.938%
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price (as a percentage)	101.958%
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.979%
5 7/8% Senior Notes Maturing October 2027 | Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Redemption price (as a percentage)	100.00%

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Contingencies - Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Standard product warranty length, minimum	1 year
Standard product warranty length, maximum	2 years
Limited product warranty length (up to)	10 years
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 15,331	$ 18,091
Accruals for warranties issued	2,305	4,212
Changes in liability related to warranties existing in prior periods	(1,874)	(2,296)
Payments made	(2,330)	(4,191)
Balance at end of period	$ 13,432	$ 15,816

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Contingencies - Litigation and Other Matters (Details) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
Legal Reserve
Loss Contingencies [Line Items]
Accrued amounts for litigation and other contingent liabilities	$ 3.3	$ 3.7
Performance Bonds
Loss Contingencies [Line Items]
Letters of credit secured using cash collateral	41.2
Outstanding performance bonds	$ 250.1

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Fair Value Measurements - Fair Value Assets Measured on a Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 1,760	$ 1,578
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	0	0
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	1,760	1,578
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	0	0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress	1,605	1,312
Land held for sale		1,724
Unconsolidated entity investments		80
Fair Value, Measurements, Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress	0	0
Land held for sale		0
Unconsolidated entity investments		0
Fair Value, Measurements, Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress	0	0
Land held for sale		0
Unconsolidated entity investments		0
Fair Value, Measurements, Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Development projects in progress	$ 1,605	1,312
Land held for sale		1,724
Unconsolidated entity investments		$ 80

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Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 1,228,150	$ 1,227,141
Carrying Amount | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,163,630	1,163,138
Carrying Amount | Junior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	64,520	64,003
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,112,866	1,160,217
Fair Value | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	1,048,346	1,096,214
Fair Value | Junior Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable	$ 64,520	$ 64,003

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Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Impairment Charge	$ 1,007	$ 500

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Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense (benefit), including discontinued operations	$ (3.9)	$ 108.0
Tax credit	5.3
Deferred tax assets, tax credit carryforwards	$ 9.6

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Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,114	$ 2,610
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs related to non-vested stock options award	$ 300		$ 200
Weighted average period to recognize remaining cost	1 year 8 months 19 days
Nonvested Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs related to non-vested stock awards	$ 14,800		$ 8,800
Weighted average period to recognize remaining cost	2 years 2 months 9 days

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Stock-based Compensation - Stock Options Outstanding (Details) - Stock Options	3 Months Ended
	Dec. 31, 2018 $ / shares shares
Shares
Outstanding at beginning of period (shares) | shares	533,052
Granted (shares) | shares	25,230
Exercised (shares) | shares	(1,000)
Forfeited (shares) | shares	(1,319)
Outstanding at end of period (shares) | shares	555,963
Exercisable at end of period (shares) | shares	504,092
Vested or expected to vest in the future (shares) | shares	552,799
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 14.26
Granted (in dollars per share) | $ / shares	10.38
Exercised (in dollars per share) | $ / shares	7.56
Forfeited (in dollars per share) | $ / shares	11.53
Outstanding at end of period (in dollars per share) | $ / shares	14.10
Exercisable at end of period (in dollars per share) | $ / shares	14.13
Vested or expected to vest in the future (in dollars per share) | $ / shares	$ 14.13

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Stock-based Compensation - Restricted Stock Awards (Details)	3 Months Ended
	Dec. 31, 2018 shares
Shares
Granted (in shares)	441,991
Performance-Based Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Granted and Vested in Period	86,050
Restricted Stock
Shares
Beginning of period (in shares)	1,076,568
Granted (in shares)	909,810
Vested (in shares)	(506,089)
Forfeited (in shares)	(28,349)
End of period (in shares)	1,451,940
Performance-Based Restricted Stock Awards
Shares
Beginning of period (in shares)	644,785
Granted (in shares)	467,819
Vested (in shares)	(309,843)
Forfeited (in shares)	(7,020)
End of period (in shares)	795,741
Time Based Restricted Stock Awards
Shares
Beginning of period (in shares)	431,783
Vested (in shares)	(196,246)
Forfeited (in shares)	(21,329)
End of period (in shares)	656,199

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Earnings Per Share - Schedule of Earnings Per Share. Basic and Dilutive (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
(Loss) income from continuing operations	$ 7,322	$ (130,575)
Loss from discontinued operations	(11)	(372)
Net (loss) income	$ 7,311	$ (130,947)
Basic weighted-average shares (in shares)	31,801	32,055
Dilutive effect of restricted stock awards (in shares)	243	0
Dilutive effect of stock options (in shares)	11	0
Dilutive weighted-average shares (in shares)	32,055	32,055
Basic and diluted earnings (loss) per share:
Continuing Operations (in dollars per share)	$ 0.23	$ (4.07)
Discontinued Operations (in dollars per share)	0.00	(0.01)
Total (in dollars per shares)	$ 0.23	$ (4.08)

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Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Restricted Stock
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	493	556
Time Based Restricted Stock Awards
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	195	828
Performance Shares
Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	628

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Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Other Liabilities Disclosure [Abstract]
Accrued interest	$ 24,217	$ 14,401
Accrued bonus and deferred compensation	20,236	41,508
Customer deposits	13,462	14,903
Accrued warranty expense	13,432	15,331	$ 15,816	$ 18,091
Litigation accrual	3,348	3,656
Income tax liabilities	856	710
Other	37,082	35,880
Total	$ 112,633	$ 126,389

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Segment Information (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2018 USD ($) segment state region	Dec. 31, 2017 USD ($)	Sep. 30, 2018 USD ($)
Segment Reporting [Abstract]
Number of states in which home building segments operate | state	13
Number of regions in which entity operates | region	3
Number of homebuilding segments | segment	3
Segment Reporting Information [Line Items]
Revenue	$ 402,040	$ 372,489
Operating income	3,506	6,681
Depreciation and amortization	2,770	2,507
Capital Expenditures	6,354	3,702
Assets	2,103,390		$ 2,128,102
Operating Segments
Segment Reporting Information [Line Items]
Operating income	31,036	35,416
Depreciation and amortization	2,426	2,274
Corporate and unallocated
Segment Reporting Information [Line Items]
Operating income	(27,530)	(28,735)
Depreciation and amortization	344	233
Capital Expenditures	2,082	588
Assets	551,401		542,713
West Segment
Segment Reporting Information [Line Items]
Revenue	208,944	177,971
West Segment | Operating Segments
Segment Reporting Information [Line Items]
Operating income	24,261	21,110
Depreciation and amortization	1,278	1,256
Capital Expenditures	2,651	1,776
Assets	855,823		835,230
East Segment
Segment Reporting Information [Line Items]
Revenue	88,746	88,853
East Segment | Operating Segments
Segment Reporting Information [Line Items]
Operating income	5,395	7,396
Depreciation and amortization	538	439
Capital Expenditures	762	595
Assets	305,232		335,474
Southeast Segment
Segment Reporting Information [Line Items]
Revenue	104,350	105,665
Southeast Segment | Operating Segments
Segment Reporting Information [Line Items]
Operating income	1,380	6,910
Depreciation and amortization	610	579
Capital Expenditures	859	$ 743
Assets	$ 390,934		$ 414,685

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Supplemental Guarantor Information - Unaudited Condensed Consolidating Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Condensed Financial Statements, Captions [Line Items]
Allowance for Doubtful Accounts Receivable	$ 378	$ 378
ASSETS
Cash and cash equivalents	84,399	139,805	$ 177,812
Restricted cash	12,637	13,443	$ 12,082
Accounts receivable (net of allowance of $378 and $378, respectively)	19,349	24,647
Owned inventory	1,722,120	1,692,284
Investments in unconsolidated entities	3,650	4,035
Deferred tax assets, net	218,025	213,955
Property and equipment, net	24,408	20,843
Investments in subsidiaries	0	0
Intercompany	0	0
Goodwill	10,605	9,751
Other assets	8,197	9,339
Total assets	2,103,390	2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	99,864	126,432
Other liabilities	112,633	126,389
Intercompany	0	0
Total debt, net	1,255,784	1,231,254
Total liabilities	1,468,281	1,484,075
Stockholders’ equity	635,109	644,027
Total liabilities and stockholders’ equity	2,103,390	2,128,102
Consolidating Adjustments
ASSETS
Cash and cash equivalents	0	0
Restricted cash	0	0
Accounts receivable (net of allowance of $378 and $378, respectively)	0	0
Owned inventory	0	0
Investments in unconsolidated entities	0	0
Deferred tax assets, net	0	0
Property and equipment, net	0	0
Investments in subsidiaries	(636,800)	(645,086)
Intercompany	(958,442)	(924,829)
Goodwill	0	0
Other assets	0	0
Total assets	(1,595,242)	(1,569,915)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0	0
Other liabilities	0	0
Intercompany	(958,442)	(924,829)
Total debt, net	0	0
Total liabilities	(958,442)	(924,829)
Stockholders’ equity	(636,800)	(645,086)
Total liabilities and stockholders’ equity	(1,595,242)	(1,569,915)
Beazer Homes USA, Inc.
Condensed Financial Statements, Captions [Line Items]
Allowance for Doubtful Accounts Receivable	378			$ 378
ASSETS
Cash and cash equivalents	82,115	93,875
Restricted cash	11,897	10,921
Accounts receivable (net of allowance of $378 and $378, respectively)	0	0
Owned inventory	0	0
Investments in unconsolidated entities	773	773
Deferred tax assets, net	218,025	213,955
Property and equipment, net	0	0
Investments in subsidiaries	636,800	645,086
Intercompany	963,614	922,525
Goodwill	0	0
Other assets	982	694
Total assets	1,914,206	1,887,829
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0	0
Other liabilities	24,261	14,357
Intercompany	1,686	2,304
Total debt, net	1,253,150	1,227,141
Total liabilities	1,279,097	1,243,802
Stockholders’ equity	635,109	644,027
Total liabilities and stockholders’ equity	1,914,206	1,887,829
Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	2,267	45,355
Restricted cash	740	2,522
Accounts receivable (net of allowance of $378 and $378, respectively)	19,349	24,647
Owned inventory	1,722,120	1,692,284
Investments in unconsolidated entities	2,877	3,262
Deferred tax assets, net	0	0
Property and equipment, net	24,408	20,843
Investments in subsidiaries	0	0
Intercompany	(6,858)	0
Goodwill	10,605	9,751
Other assets	7,215	8,626
Total assets	1,782,723	1,807,290
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	99,864	126,432
Other liabilities	88,359	111,906
Intercompany	956,756	922,525
Total debt, net	2,634	4,113
Total liabilities	1,147,613	1,164,976
Stockholders’ equity	635,110	642,314
Total liabilities and stockholders’ equity	1,782,723	1,807,290
Non-Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	17	575
Restricted cash	0	0
Accounts receivable (net of allowance of $378 and $378, respectively)	0	0
Owned inventory	0	0
Investments in unconsolidated entities	0	0
Deferred tax assets, net	0	0
Property and equipment, net	0	0
Investments in subsidiaries	0	0
Intercompany	1,686	2,304
Goodwill	0	0
Other assets	0	19
Total assets	1,703	2,898
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	0	0
Other liabilities	13	126
Intercompany	0	0
Total debt, net	0	0
Total liabilities	13	126
Stockholders’ equity	1,690	2,772
Total liabilities and stockholders’ equity	$ 1,703	$ 2,898

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Supplemental Guarantor Information - Unaudited Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Financial Statements, Captions [Line Items]
Total revenue	$ 402,040	$ 372,489
Home construction and land sales expenses	340,378	311,660
Inventory impairments and abandonments	1,007	0
Gross profit	60,655	60,829
Commissions	15,737	14,356
General and administrative expenses	38,642	37,285
Depreciation and amortization	2,770	2,507
Operating income	3,506	6,681
Equity in loss of unconsolidated entities	(64)	(101)
Loss on extinguishment of debt	0	(25,904)
Other (expense) income, net	(42)	(3,145)
(Loss) income from continuing operations before income taxes	3,400	(22,469)
Expense (benefit) from income taxes	(3,922)	108,106
Equity in income of subsidiaries	0	0
Income (loss) from continuing operations	7,322	(130,575)
Loss from discontinued operations	(11)	(372)
Equity in loss of subsidiaries from discontinued operations	0	0
Net income (loss)	7,311	(130,947)
Consolidating Adjustments
Condensed Financial Statements, Captions [Line Items]
Total revenue	(115)	(14)
Home construction and land sales expenses	(115)	(14)
Inventory impairments and abandonments	0
Gross profit	0	0
Commissions	0	0
General and administrative expenses	0	0
Depreciation and amortization	0	0
Operating income	0	0
Equity in loss of unconsolidated entities	0	0
Loss on extinguishment of debt		0
Other (expense) income, net	0	0
(Loss) income from continuing operations before income taxes	0	0
Expense (benefit) from income taxes	0	0
Equity in income of subsidiaries	(45,387)	96,953
Income (loss) from continuing operations	(45,387)	96,953
Loss from discontinued operations	0	0
Equity in loss of subsidiaries from discontinued operations	11	372
Net income (loss)	(45,376)	97,325
Beazer Homes USA, Inc.
Condensed Financial Statements, Captions [Line Items]
Total revenue	0	0
Home construction and land sales expenses	17,323	16,468
Inventory impairments and abandonments	115
Gross profit	(17,438)	(16,468)
Commissions	0	0
General and administrative expenses	0	0
Depreciation and amortization	0	0
Operating income	(17,438)	(16,468)
Equity in loss of unconsolidated entities	0	0
Loss on extinguishment of debt		(25,904)
Other (expense) income, net	(242)	(3,435)
(Loss) income from continuing operations before income taxes	(17,680)	(45,807)
Expense (benefit) from income taxes	20,385	(12,185)
Equity in income of subsidiaries	45,387	(96,953)
Income (loss) from continuing operations	7,322	(130,575)
Loss from discontinued operations	0	0
Equity in loss of subsidiaries from discontinued operations	(11)	(372)
Net income (loss)	7,311	(130,947)
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Total revenue	402,040	372,489
Home construction and land sales expenses	323,170	295,206
Inventory impairments and abandonments	892
Gross profit	77,978	77,283
Commissions	15,737	14,356
General and administrative expenses	38,646	37,244
Depreciation and amortization	2,770	2,507
Operating income	20,825	23,176
Equity in loss of unconsolidated entities	(64)	(101)
Loss on extinguishment of debt		0
Other (expense) income, net	204	296
(Loss) income from continuing operations before income taxes	20,965	23,371
Expense (benefit) from income taxes	(24,336)	120,303
Equity in income of subsidiaries	0	0
Income (loss) from continuing operations	45,301	(96,932)
Loss from discontinued operations	(7)	(369)
Equity in loss of subsidiaries from discontinued operations	0	0
Net income (loss)	45,294	(97,301)
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Total revenue	115	14
Home construction and land sales expenses	0	0
Inventory impairments and abandonments	0
Gross profit	115	14
Commissions	0	0
General and administrative expenses	(4)	41
Depreciation and amortization	0	0
Operating income	119	(27)
Equity in loss of unconsolidated entities	0	0
Loss on extinguishment of debt		0
Other (expense) income, net	(4)	(6)
(Loss) income from continuing operations before income taxes	115	(33)
Expense (benefit) from income taxes	29	(12)
Equity in income of subsidiaries	0	0
Income (loss) from continuing operations	86	(21)
Loss from discontinued operations	(4)	(3)
Equity in loss of subsidiaries from discontinued operations	0	0
Net income (loss)	$ 82	$ (24)

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Supplemental Guarantor Information - Unaudited Condensed Consolidating Statements of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ (54,690)	$ (102,224)
Cash flows from investing activities:
Capital expenditures	(6,354)	(3,702)
Proceeds from sale of fixed assets	54	84
Investments in unconsolidated entities	0	(421)
Return of capital from unconsolidated entities	0
Advances to/from subsidiaries	0	0
Net cash used in investing activities	(6,300)	(4,039)
Cash flows from financing activities:
Repayment of debt	(1,479)	(401,481)
Proceeds from issuance of new debt	0	400,000
Repayment of borrowings from credit facility	(75,000)	0
Borrowings from credit facility	100,000	0
Debt issuance costs	(400)	(5,649)
Repurchase of common stock	(16,500)	0
Tax payments for stock-based compensation awards	(1,850)	(1,322)
Advances to/from subsidiaries	0	0
Other financing activities	7	0
Net cash provided by (used in) financing activities	4,778	(8,452)
Decrease in cash, cash equivalents, and restricted cash	(56,212)	(114,715)
Cash, cash equivalents, and restricted cash at beginning of period	153,248	304,609
Cash, cash equivalents, and restricted cash at end of period	97,036	189,894
Consolidating Adjustments
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	0	0
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Investments in unconsolidated entities		0
Return of capital from unconsolidated entities	0
Advances to/from subsidiaries	(21,204)	187,477
Net cash used in investing activities	(21,204)	187,477
Cash flows from financing activities:
Repayment of debt	0	0
Proceeds from issuance of new debt		0
Repayment of borrowings from credit facility	0
Borrowings from credit facility	0
Debt issuance costs	0	0
Repurchase of common stock	0
Tax payments for stock-based compensation awards	0	0
Advances to/from subsidiaries	21,204	(186,563)
Other financing activities	0	0
Net cash provided by (used in) financing activities	21,204	(186,563)
Decrease in cash, cash equivalents, and restricted cash	0	914
Cash, cash equivalents, and restricted cash at beginning of period	0	(7,161)
Cash, cash equivalents, and restricted cash at end of period	0	(6,247)
Beazer Homes USA, Inc.
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(31,908)	91,465
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Investments in unconsolidated entities		0
Return of capital from unconsolidated entities	532
Advances to/from subsidiaries	21,204	(187,451)
Net cash used in investing activities	21,736	(187,451)
Cash flows from financing activities:
Repayment of debt	(11)	(400,012)
Proceeds from issuance of new debt		400,000
Repayment of borrowings from credit facility	(75,000)
Borrowings from credit facility	100,000
Debt issuance costs	(400)	(5,649)
Repurchase of common stock	(16,500)
Tax payments for stock-based compensation awards	(1,850)	(1,322)
Advances to/from subsidiaries	0	0
Other financing activities	7	0
Net cash provided by (used in) financing activities	6,246	(6,983)
Decrease in cash, cash equivalents, and restricted cash	(3,926)	(102,969)
Cash, cash equivalents, and restricted cash at beginning of period	104,796	294,192
Cash, cash equivalents, and restricted cash at end of period	100,870	191,223
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(22,756)	(193,721)
Cash flows from investing activities:
Capital expenditures	(6,354)	(3,702)
Proceeds from sale of fixed assets	54	84
Investments in unconsolidated entities		(421)
Return of capital from unconsolidated entities	0
Advances to/from subsidiaries	0	0
Net cash used in investing activities	(6,300)	(4,039)
Cash flows from financing activities:
Repayment of debt	(1,468)	(1,469)
Proceeds from issuance of new debt		0
Repayment of borrowings from credit facility	0
Borrowings from credit facility	0
Debt issuance costs	0	0
Repurchase of common stock	0
Tax payments for stock-based compensation awards	0	0
Advances to/from subsidiaries	(21,204)	186,563
Other financing activities	0	0
Net cash provided by (used in) financing activities	(22,672)	185,094
Decrease in cash, cash equivalents, and restricted cash	(51,728)	(12,666)
Cash, cash equivalents, and restricted cash at beginning of period	47,877	16,854
Cash, cash equivalents, and restricted cash at end of period	(3,851)	4,188
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(26)	32
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from sale of fixed assets	0	0
Investments in unconsolidated entities		0
Return of capital from unconsolidated entities	(532)
Advances to/from subsidiaries	0	(26)
Net cash used in investing activities	(532)	(26)
Cash flows from financing activities:
Repayment of debt	0	0
Proceeds from issuance of new debt		0
Repayment of borrowings from credit facility	0
Borrowings from credit facility	0
Debt issuance costs	0	0
Repurchase of common stock	0
Tax payments for stock-based compensation awards	0	0
Advances to/from subsidiaries	0	0
Other financing activities	0	0
Net cash provided by (used in) financing activities	0	0
Decrease in cash, cash equivalents, and restricted cash	(558)	6
Cash, cash equivalents, and restricted cash at beginning of period	575	724
Cash, cash equivalents, and restricted cash at end of period	$ 17	$ 730

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Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Inventory impairments and lot option abandonments	$ 1,007	$ 0
Loss from discontinued operations, net of tax	(11)	(372)
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenue	55	625
Home construction and land sales expenses	33	667
Inventory impairments and lot option abandonments	0	450
Gross profit (loss)	22	(492)
General and administrative expenses	33	16
Operating loss	(11)	(508)
Equity in (loss) income of unconsolidated entities	(1)	12
Other expense, net	(1)	(3)
Loss from discontinued operations before income taxes	(13)	(499)
Benefit from income taxes	(2)	(127)
Loss from discontinued operations, net of tax	$ (11)	$ (372)

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Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended
	Nov. 15, 2018	Feb. 01, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Completed common stock repurchase (in shares)			1,600,000
Shares repurchased, value	$ 16.5
Remaining authorized repurchase amount			$ 33.5
Subsequent Event
Subsequent Event [Line Items]
Completed common stock repurchase (in shares)		561,851
Shares repurchased, value		$ 6.4
Average price per share (in dollars per share)		$ 11.44
Remaining authorized repurchase amount		$ 27.1