Inventory (Tables)

9 Months Ended

Jun. 30, 2019

The components of our owned inventory are as follows as of June 30, 2019 and September 30, 2018:



in thousands	June 30, 2019		September 30, 2018
Homes under construction	$	679,181	$	476,752
Development projects in progress	753,048		907,793
Land held for future development	28,531		83,173
Land held for sale	13,352		7,781
Capitalized interest	148,825		144,645
Model homes	79,787		72,140
Total owned inventory	$	1,702,724	$	1,692,284

Schedule of total owned inventory, by segment

Total owned inventory by reportable segment is presented in the table below as of June 30, 2019 and September 30, 2018:



in thousands	Projects in Progress ^(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
June 30, 2019
West Segment	$	773,121	$	3,483	$	5,750	$	782,354
East Segment	297,575		14,077		4,511		316,163
Southeast Segment	379,361		10,971		3,091		393,423
Corporate and unallocated ^(b)	210,784		—		—		210,784
Total	$	1,660,841	$	28,531	$	13,352	$	1,702,724
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 Discounted Cash Flow Analysis

The table below presents, by reportable segment, details of the impairment charges taken on projects in progress for the nine months ended June 30, 2019. No impairments on projects in progress were recognized during the three months ended June 30, 2019 or the three and nine months ended June 30, 2018.



	Results of Impairment Analyses
$ in thousands	Nine Months Ended
Segment	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at time of Impairment
June 30, 2019
West	9	839	$	92,912	$	69,449
Southeast	1	15	858		1,367
Corporate and unallocated ^(a)	—	—	16,260		14,166
Total	10	854	$	110,030	$	84,982

Quantitative unobservable inputs for inventory impairment

The table below presents the ranges or values of significant quantitative unobservable inputs we used in determining the fair value of the communities impaired during the nine months ended June 30, 2019. No impairments were recognized during the three months ended June 30, 2019.



$ in thousands	Nine Months Ended
Unobservable Inputs	June 30, 2019
Average selling price	$350 to $615
Closings per community per month	1 - 4
Discount rate	14.7% - 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 June 30,				Nine Months Ended June 30,
in thousands	2019		2018		2019		2018
Projects in Progress:
West	$	—	$	—	$	92,912	$	—
Southeast	—		—		858		—
Corporate and unallocated ^(a)	—		—		16,260		—
Total impairment charges on projects in progress	$	—	$	—	$	110,030	$	—
Land Held for Sale:
West ^(b)	$	—	$	—	$	37,963	$	—
East	—		168		—		168
Corporate and unallocated ^(a)	—		—		625		—
Total impairment charges on land held for sale	$	—	$	168	$	38,588	$	168
Discontinued Operations:
Land Held for Sale	$	—	$	—	$	—	$	450
Total impairment and abandonment charges	$	—	$	168	$	148,618	$	618

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

^(b)Land held for sale impairments during the nine months ended June 30, 2019 related to six communities representing 732 lots in California that were impaired in the second quarter of fiscal 2019. Two of these parcels were sold in July for amounts approximately equal to their carrying costs. While steps to initiate planned sales of our remaining land held for sale assets have been taken, the timing of completion of such asset dispositions is unknown.

Summary of interests in lot option agreements

The following table provides a summary of our interests in lot option agreements as of June 30, 2019 and September 30, 2018:



in thousands	Deposits & Non-refundable Pre-acquisition Costs Incurred		Remaining Obligation
As of June 30, 2019
Unconsolidated lot option agreements	$	75,740	$	389,772
As of September 30, 2018
Unconsolidated lot option agreements	$	72,191	$	383,150