Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Nov. 07, 2022 | Mar. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2022 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-12822 | ||
Entity Registrant Name | BEAZER HOMES USA, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-2086934 | ||
Entity Address, Address Line One | 1000 Abernathy Road | ||
Entity Address, Address Line Two | Suite 260 | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30328 | ||
City Area Code | 770 | ||
Local Phone Number | 829-3700 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | BZH | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 460,369,020 | ||
Entity Common Stock, Shares Outstanding | 30,880,138 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement for the registrant’s 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended September 30, 2022. | ||
Entity Central Index Key | 0000915840 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 214,594 | $ 246,715 |
Restricted cash | 37,234 | 27,428 |
Accounts receivable (net of allowance of $284 and $290, respectively) | 35,890 | 25,685 |
Income tax receivable | 9,606 | 9,929 |
Owned inventory | 1,737,865 | 1,501,602 |
Investments in unconsolidated entities | 964 | 4,464 |
Deferred tax assets, net | 156,358 | 204,766 |
Property and equipment, net | 24,566 | 22,885 |
Operating lease right-of-use assets | 9,795 | 12,344 |
Goodwill | 11,376 | 11,376 |
Other assets | 13,715 | 11,616 |
Total assets | 2,251,963 | 2,078,810 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Trade accounts payable | 143,641 | 133,391 |
Operating lease liabilities | 11,208 | 14,154 |
Other liabilities | 174,388 | 152,351 |
Total debt (net of debt issuance costs of $7,280 and $8,983, respectively) | 983,440 | 1,054,030 |
Total liabilities | 1,312,677 | 1,353,926 |
Stockholders’ equity: | ||
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued) | 0 | 0 |
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 30,880,138 issued and outstanding and 31,294,198 issued and outstanding, respectively) | 31 | 31 |
Paid-in capital | 859,856 | 866,158 |
Retained earnings (accumulated deficit) | 79,399 | (141,305) |
Total stockholders’ equity | 939,286 | 724,884 |
Total liabilities and stockholders’ equity | $ 2,251,963 | $ 2,078,810 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
ASSETS | ||
Allowances for accounts receivable | $ 284 | $ 290 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Debt issuance costs | $ 7,280 | $ 8,983 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 63,000,000 | 63,000,000 |
Common stock, shares issued (in shares) | 30,880,138 | 31,294,198 |
Common stock, shares outstanding (in shares) | 30,880,138 | 31,294,198 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Total revenue | $ 2,316,988 | $ 2,140,303 | $ 2,127,077 |
Home construction and land sales expenses | 1,776,518 | 1,735,195 | 1,776,534 |
Inventory impairments and abandonments | 2,963 | 853 | 2,903 |
Gross profit | 537,507 | 404,255 | 347,640 |
Commissions | 74,336 | 80,125 | 82,507 |
General and administrative expenses | 177,320 | 163,285 | 170,386 |
Depreciation and amortization | 13,360 | 13,976 | 15,640 |
Operating income | 272,491 | 146,869 | 79,107 |
Equity in income of unconsolidated entities | 521 | 594 | 347 |
Gain (loss) on extinguishment of debt, net | 309 | (2,025) | 0 |
Other income (expense), net | 668 | (1,712) | (8,165) |
Income from continuing operations before income taxes | 273,989 | 143,726 | 71,289 |
Expense from income taxes | 53,271 | 21,546 | 17,973 |
Income from continuing operations | 220,718 | 122,180 | 53,316 |
Loss from discontinued operations, net of tax | (14) | (159) | (1,090) |
Net income | $ 220,704 | $ 122,021 | $ 52,226 |
Weighted-average number of shares: | |||
Basic (in shares) | 30,432 | 29,954 | 29,704 |
Diluted (in shares) | 30,796 | 30,437 | 29,948 |
Basic income (loss) per share: | |||
Continuing operations (in dollars per share) | $ 7.25 | $ 4.08 | $ 1.80 |
Discontinued operations (in dollars per share) | 0 | (0.01) | (0.04) |
Total (in dollars per share) | 7.25 | 4.07 | 1.76 |
Diluted income (loss) per share: | |||
Continuing operations (in dollars per share) | 7.17 | 4.01 | 1.78 |
Discontinued operations (in dollars per share) | 0 | 0 | (0.04) |
Total (in dollars per share) | $ 7.17 | $ 4.01 | $ 1.74 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | (Accumulated Deficit) Retained Earnings |
Beginning balance (in shares) at Sep. 30, 2019 | 30,933 | |||
Beginning balance at Sep. 30, 2019 | $ 538,754 | $ 31 | $ 854,275 | $ (315,552) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income and comprehensive income | 52,226 | 52,226 | ||
Stock-based compensation expense | 10,036 | 10,036 | ||
Stock option exercises (in shares) | 52 | |||
Stock option exercises | 226 | 226 | ||
Shares issued under employee stock plans, net (in shares) | 588 | |||
Forfeiture and other settlements of restricted stock (in shares) | (26) | |||
Forfeiture and other settlements of restricted stock | (2,058) | (2,058) | ||
Common stock redeemed for tax liability (in shares) | (173) | |||
Common stock redeemed for tax liability | $ (2,686) | (2,686) | ||
Share repurchases (in shares) | (362) | (362) | ||
Share repurchases | $ (3,327) | (3,327) | ||
Ending balance (in shares) at Sep. 30, 2020 | 31,012 | |||
Ending balance at Sep. 30, 2020 | 593,171 | $ 31 | 856,466 | (263,326) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income and comprehensive income | 122,021 | 122,021 | ||
Stock-based compensation expense | 12,167 | 12,167 | ||
Stock option exercises (in shares) | 198 | |||
Stock option exercises | 569 | 569 | ||
Shares issued under employee stock plans, net (in shares) | 417 | |||
Forfeiture and other settlements of restricted stock (in shares) | (29) | |||
Forfeiture and other settlements of restricted stock | 0 | 0 | ||
Common stock redeemed for tax liability (in shares) | (304) | |||
Common stock redeemed for tax liability | (3,044) | (3,044) | ||
Share repurchases | 0 | |||
Ending balance (in shares) at Sep. 30, 2021 | 31,294 | |||
Ending balance at Sep. 30, 2021 | 724,884 | $ 31 | 866,158 | (141,305) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income and comprehensive income | 220,704 | 220,704 | ||
Stock-based compensation expense | 8,478 | 8,478 | ||
Stock option exercises (in shares) | 1 | |||
Stock option exercises | 5 | 5 | ||
Shares issued under employee stock plans, net (in shares) | 518 | |||
Forfeiture and other settlements of restricted stock (in shares) | (55) | |||
Forfeiture and other settlements of restricted stock | 0 | 0 | ||
Common stock redeemed for tax liability (in shares) | (308) | |||
Common stock redeemed for tax liability | $ (6,631) | (6,631) | ||
Share repurchases (in shares) | (570) | (570) | ||
Share repurchases | $ (8,154) | (8,154) | ||
Ending balance (in shares) at Sep. 30, 2022 | 30,880 | |||
Ending balance at Sep. 30, 2022 | $ 939,286 | $ 31 | $ 859,856 | $ 79,399 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 220,704 | $ 122,021 | $ 52,226 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,360 | 13,976 | 15,640 |
Stock-based compensation expense | 8,478 | 12,167 | 10,036 |
Inventory impairments and abandonments | 2,963 | 853 | 2,903 |
Deferred and other income tax expense | 53,267 | 21,501 | 17,664 |
Gain on sale of fixed assets | (332) | (392) | (335) |
Change in allowance for doubtful accounts | (6) | (68) | 54 |
Equity in income of unconsolidated entities | (521) | (594) | (347) |
Cash distributions of income from unconsolidated entities | 380 | 132 | 306 |
(Gain) loss on extinguishment of debt, net | (309) | 2,025 | 0 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (10,199) | (5,800) | 6,524 |
Decrease in income tax receivable | 0 | 460 | 315 |
(Increase) decrease in inventory | (231,445) | (147,511) | 154,865 |
(Increase) decrease in other assets | (2,620) | (1,922) | 3 |
Increase in trade accounts payable | 10,250 | 1,199 | 1,040 |
Increase in other liabilities | 17,104 | 13,609 | 28,201 |
Net cash provided by operating activities | 81,074 | 31,656 | 289,095 |
Cash flows from investing activities: | |||
Capital expenditures | (15,048) | (14,645) | (10,642) |
Proceeds from sale of fixed assets | 339 | 456 | 478 |
Net cash used in investing activities | (14,709) | (14,189) | (10,164) |
Cash flows from financing activities: | |||
Repayment of debt | (73,900) | (82,476) | (51,150) |
Repayment of borrowings from credit facility | (195,000) | 0 | (390,000) |
Borrowings from credit facility | 195,000 | 0 | 390,000 |
Debt issuance costs | 0 | (901) | (202) |
Repurchase of common stock | (8,154) | 0 | (3,327) |
Tax payments for stock-based compensation awards | (6,631) | (3,044) | (2,686) |
Stock option exercises and other financing activities | 5 | 569 | (1,832) |
Net cash used in financing activities | (88,680) | (85,852) | (59,197) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (22,315) | (68,385) | 219,734 |
Cash, cash equivalents, and restricted cash at beginning of period | 274,143 | 342,528 | 122,794 |
Cash, cash equivalents, and restricted cash at end of period | $ 251,828 | $ 274,143 | $ 342,528 |
Description of Business
Description of Business | 12 Months Ended |
Sep. 30, 2022 | |
Description of Business [Abstract] | |
Description of Business | Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast. Our homes are designed to appeal to homeowners at different price points across various demographic segments, and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate extraordinary value at an affordable price, delivered through our three strategic pillars discussed previously, while seeking to maximize our return on invested capital over the course of a housing cycle. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and present the consolidated financial position, income, stockholders' equity, and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income is equivalent to our comprehensive income, so we have not presented a separate statement of comprehensive income. In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying consolidated statements of operations for all periods presented (see Note 19 for a further discussion of our discontinued operations). Our fiscal year 2022 began on October 1, 2021 and ended on September 30, 2022. Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. Our fiscal year 2020 began on October 1, 2019 and ended on September 30, 2020. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. Cash and Cash Equivalents and Restricted Cash We consider highly liquid investments with maturities of three months or less when acquired to be cash equivalents. As of September 30, 2022, the majority of our cash and cash equivalents were on demand deposits with major banks. These assets were valued at par and had no withdrawal restrictions. Restricted cash includes cash restricted by state law or a contractual requirement, including cash collateral for our outstanding cash-secured letters of credit (refer to Note 8). Accounts Receivable and Allowance Accounts receivable include escrow deposits to be received from title companies associated with closed homes, receivables from municipalities related to the development of utilities or other infrastructure, land banker reimbursements to be received related to land development costs, rebates to be received from our suppliers and other miscellaneous receivables. Generally, we receive cash from title companies within a few days of the home being closed. We regularly review our receivable balances for collectability and record an allowance for expected credit losses. Owned Inventory Owned inventory includes land acquisition costs, land development costs, home construction costs, capitalized interest, real estate taxes, direct overhead costs and capitalized indirect costs incurred during land development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and other common costs (both incurred and estimated to be incurred) are allocated to individual lots on a pro-rata basis, and the cost of individual lots is transferred to homes under construction when home construction begins. Changes in estimated land and other common costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. Home construction costs are accumulated on a per-home basis. Cost of home closings includes the specific construction costs of the home and the allocated lot costs. Refer to Note 5 for a further discussion and detail of our inventory balance. Inventory Valuation - Projects in Progress Projects in progress inventory includes homes under construction and land under development grouped together as communities. Generally, upon the commencement of land development activities, it may take three We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. We evaluate, among other things, the average sales price and margins on recent home closings, homes in backlog and expected future home sales for each community. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. This undiscounted cash flow analysis requires important assumptions including, among other things, the current and future home sale prices, margins and the pace of closings to occur in the future. For those communities whose carrying values exceed the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. The fair value of the community is estimated using the present value of the estimated future cash flows using discount rates commensurate with the risk associated with the underlying community. Should the estimates or expectations used in determining estimated fair values deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to these assets, and such amounts could be material. Inventory Valuation - Land Held for Future Development Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for future development is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, such as the future enactment of a development plan or the occurrence of outside events. We evaluate the potential plans for each community in land held for future development if changes in facts and circumstances occur that would give rise to a more detailed analysis for a change in the status of a community. Inventory Valuation - Land Held for Sale Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets. We record land held for sale at the lower of the asset's carrying value or fair value less costs to sell (net realizable value). Land is classified as held for sale when the following criteria are met: • management has the authority and commits to a plan to sell the land; • the land is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of land assets; • there is an active program to locate a buyer and the plan to sell the property has been initiated; • the sale of the land is probable within one year; • the property is being actively marketed at a reasonable sale price relative to its current fair value; and • it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We evaluate the net realizable value of a land held for sale asset when indicators of impairment are present. In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals, any recent legitimate offers and listing prices of similar properties. If the current carrying value of the asset exceeds the estimated fair value less cost to sell, the asset is impaired and written down to its estimated fair value less cost to sell. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our analysis. Our assumptions about land sales prices require significant judgment because the market is highly sensitive to changes in economic conditions. We calculate the estimated fair values of land held for sale based on current market conditions and assumptions made by management, which may differ materially from actual results and may result in additional impairments if market conditions deteriorate. Lot Option Agreements and Variable Interest Entities (VIE) In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit, irrevocable letter of credit or surety bond based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit or surety bonds, and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option agreements. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all. The following table provides a summary of our interests in lot option agreements as of September 30, 2022 and 2021: in thousands Deposits & Non-refundable Pre-acquisition Costs Incurred (a) Remaining As of September 30, 2022 Unconsolidated lot option agreements $ 142,433 $ 827,600 As of September 30, 2021 Unconsolidated lot option agreements $ 114,688 $ 676,149 (a) Amount is included as a component of land under development within our owned inventory in the consolidated balance sheet. In accordance with Accounting Standards Codification (ASC) Topic 810, Consolidation (ASC 810), if the entity holding the land under option is a variable VIE, the Company's deposit represents a variable interest in that entity. ASC 810 requires a company consolidate a VIE if the company is determined to be the primary beneficiary. To determine whether we are the primary beneficiary of the VIE, we first evaluate whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to, (1) the ability to determine the budget and scope of land development work, if any; (2) the ability to control financing decisions for the VIE; (3) the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with Beazer; and (4) the ability to change or amend the existing option agreement with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE and thus do not consolidate the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE's losses or, if no party absorbs the majority of such losses, if we will benefit from potentially a significant amount of the VIE's expected gains. If we are the primary beneficiary of the VIE, we will consolidate the VIE even though creditors of the VIE have no recourse against the Company. For those we consolidate, we record the remaining contractual purchase price under the applicable lot option agreement, net of option deposits already paid, to consolidated inventory not owned with an offsetting increase to obligations related to consolidated inventory not owned on our consolidated balance sheets. Also, to reflect the total purchase price of this inventory on a consolidated basis, we present the related option deposits as consolidated inventory not owned. No VIEs required consolidation as of September 2022 and 2021 because we have determined that we were not the primary beneficiary of any VIEs. Investments in Unconsolidated Entities We participate in a number of joint ventures and other investments in which we have less than a controlling interest. We enter into the majority of these investments with land developers, other homebuilders and financial partners to acquire attractive land positions, to manage our risk profile and to leverage our capital base. The land positions are developed into finished lots for sale to the unconsolidated entity's members or other third parties. We recognize our share of equity in income (loss) and profits (losses) from the sale of lots to other buyers. Our share of profits from lots we purchase from the unconsolidated entities is deferred and treated as a reduction of the cost of the land purchased from the unconsolidated entity. Such profits are subsequently recognized at the time the home closes and title passes to the homebuyer. We evaluate our investments in unconsolidated entities for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of our investment in the unconsolidated entity has occurred that is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value, which is determined primarily using a discounted cash flow model. Our unconsolidated entities typically obtain secured acquisition, development and construction financing. We account for our interest in unconsolidated entities under the equity method. For additional discussion of these entities, refer to Note 4. Property and Equipment, Net Our property and equipment is recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis based on estimated useful lives as follows: Asset Class Useful Lives Buildings and improvements 25 - 30 years Information systems Lesser of estimated useful life of the asset or 5 years Furniture, fixtures and computer and office equipment 3 - 7 years Model and sales office improvements Lesser of estimated useful life of the asset or estimated life of the community Leasehold improvements Lesser of the lease term or the estimated useful life of the asset Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets from the businesses that we acq uire. The Company's entire goodwill balance is recorded in our Southeast reportable segment. The Company evaluates goodwill for impairment at the reporting unit level annually during the fourth quarter or more often if indicators of impairment exist. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of the reporting unit is less than the carrying value, then a quantitative assessment is performed. The fair value of the reporting unit is estimated using a combination of the income approach, utilizing the discounted cash flow method, and the market approach, utilizing readily available market valuation multiples. If the estimated fair value of the reporting unit is less than its carrying value, an impairment will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Determining the fair value of a reporting unit under the quantitative goodwill impairment assessment requires the Company to make estimates and assumptions regarding future operating results, cash flows (including timing), discount rates, expected growth rates, capital expenditures and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of the factors used in assessing fair value are outside the control of management, and these assumptions and estimates may change in future periods. During the fourth quarter of 2022, the Company performed its annual goodwill impairment analysis and concluded our goodwill was not impaired. Other Assets Our other assets principally include prepaid expenses, unamortized debt issuance costs on our Secured Revolving Credit Facility, and assets related to our deferred compensation plan (refer to Note 15 for a discussion of our deferred compensation plan). Other Liabilities Our other liabilities principally include accrued compensations and benefits, accrued interest on our outstanding borrowings, customer deposits, accrued warranty expense, litigation accruals, income tax liabilities and other accruals related to our operations. Refer to Note 12 for a detail of our other liabilities. Income Taxes Our provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities result from deductible or taxable amounts in future years when such assets and liabilities are recovered or settled, and are measured using the enacted tax rates and laws that are expected to be in effect when the assets and liabilities are recovered or settled. We include any estimated interest and penalties on tax related matters in income taxes payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. We record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. Changes in recognition of measurement are recorded in the period in which the change in judgment occurs. Refer to Note 13 for a detailed discussion of our tax provision, deferred tax assets and valuation allowance. Our income tax receivable includes the refundable portion of our alternative minimum tax credit. The alternative minimum tax credit became a refundable credit when the alternative minimum tax was eliminated with the enactment of the Tax Cuts and Jobs Act on December 22, 2017. During fiscal 2019, we recorded our initial refund claim of $4.6 million, or half of our outstanding $9.2 million credit. During fiscal 2020, the enactment of the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27, 2020 enabled us to claim the entire $9.2 million alternative minimum tax credit with the filing of our fiscal 2019 return. As a result, we reduced our deferred tax asset by the remaining $4.6 million of alternative minimum tax credits and increased our tax receivable for the refund we expect to receive. Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the process specified i n ASC Topic 606, Revenue from Contracts with Customers . The following table presents our total revenue disaggregated by revenue stream: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Homebuilding revenue $ 2,302,520 $ 2,127,700 $ 2,116,910 Land sales and other revenue 14,468 12,603 10,167 Total revenue (a) $ 2,316,988 $ 2,140,303 $ 2,127,077 (a) Please see Note 18 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home is transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $34.3 million and $28.5 million as of September 30, 2022 and 2021 , respectively. Of the customer liabilities outstanding as of September 30, 2021, $26.3 million was recognized in revenue during the year ended September 30, 2022, upon closing of the related homes, and $1.2 million was refunded to or forfeited by the buyer. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized when closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Home Construction Expenses Home construction expenses includes the specific construction costs of the home and the allocated lot costs (land acquisition, land development and other common costs are allocated to individual lots on a pro-rata basis based on the number of lots remaining to close). All home closing costs are charged to home construction expenses in the period when the revenues from home closing are recognized. Sales discounts and incentives include discounts on home prices, discounts on home building options and option upgrades, and seller-paid financing or closing costs. Home price discounts and option discounts are accounted for as a reduction in the sale price of the home, thereby decreasing the amount of revenue we recognize on that closing. All other sales incentives are recognized as a cost of selling the home and are included in home construction expenses. Estimated future warranty costs are charged to home construction expense in the period when the revenues from home closings are recognized. Such estimated warranty costs generally range from 0.3% to 1.0% of total revenue recognized for each home closed. Additional warranty costs are charged to home construction expenses as necessary based on management's estimate of the costs to remediate existing claims. See Note 9 for a more detailed discussion of warranty costs and related reserves. Advertising Costs Advertising costs related to continuing operations of $14.4 million , $14.0 million and $15.9 million for our fiscal years 2022, 2021 and 2020, respectively, were expensed as incurred and were included in general and administrative (G&A) expenses in the consolidated statements of operations. Fair Value Measurements Certain of our assets are required to be recorded at fair value on a recurring basis, for example, the fair value of our deferred compensation plan assets are based on market-corroborated inputs (level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recovered (level 3). For example, we review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value is based on estimated cash flows discounted for market risks associated with the long-lived assets. The fair value of certain of our financial instruments approximates their carrying amounts due to the short maturity of these assets and liabilities or the variable interest rates on such obligations. The fair value of our publicly-held debt is generally estimated based on quoted bid prices for these instruments (level 2). Certain of our other financial liabilities are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. See Note 10 for additional discussion of our fair value measurements. Stock-Based Compensation We use the Black-Scholes option-pricing model to value our stock option grants. Restricted stock awards with market conditions are valued using the Monte Carlo valuation method. Other restricted stock awards without market conditions are valued based on the market price of the Company's common stock on the date of the grant. In addition, we reflect the benefits of tax deductions in excess of recognized compensation cost as an operating cash outflow. Compensation cost arising from all stock-based compensation awards is recognized as expense using the straight-line method over the vesting period and is included in G&A in our consolidated statements of operations. See Note 16 for additiona l discussion of our stock-based compensation. Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact but do not expect that the adoption of ASU 2020-04 will have a material impact on our consolidated financial statements and related disclosures. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the consolidated balance sheets and consolidated statements of cash flows for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Supplemental disclosure of non-cash activity: Beginning operating lease right-of-use assets (ASC 842 adoption) (a) $ — $ — $ 13,895 Beginning operating lease liabilities (ASC 842 adoption) (a) $ — $ — $ 16,028 Increase in operating lease right-of-use assets (b) $ 835 $ 2,905 $ 3,104 Increase in operating lease liabilities (b) $ 835 $ 2,905 $ 3,104 Derecognition of investment in unconsolidated entities (c) $ 3,641 $ — $ — Supplemental disclosure of cash activity: Interest payments $ 70,132 $ 74,171 $ 71,888 Income tax payments $ 4,216 $ 3,462 $ 546 Tax refunds received $ — $ 1,078 $ 315 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 214,594 $ 246,715 $ 327,693 Restricted cash 37,234 27,428 14,835 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 251,828 $ 274,143 $ 342,528 (a) On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC Topic 842, Leases (ASC 842). Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets. (b) Represents leases renewed or additional leases commenced during the fiscal years ended September 30, 2022, 2021 and 2020. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Unconsolidated Entities As of September 30, 2022, the Company participated in certain joint ventures and had investments in unconsolidated entities in which it had less than a controlling interest. The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Investment in unconsolidated entities $ 964 $ 4,464 Total equity of unconsolidated entities $ 1,564 $ 7,316 Total outstanding borrowings of unconsolidated entities $ — $ 12,708 On May 20, 2022, the Company acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder. For the past 16 years, Beazer has held a one-third ownership stake in Imagine Homes, recorded as an investment in unconsolidated entities on the consolidated balance sheet. The transaction was deemed an asset acquisition under the guidance of ASC Topic 805-50, Business Combinations - Related Issues. The Company accounted for the asset acquisition following the cost accumulation model, whereby the sum of the carrying value of the previously held interest, additional consideration paid and transaction costs were allocated to the acquired assets on a relative fair value basis. The reduction in balances of the Company's investment in unconsolidated entities, total equity and outstanding borrowings of unconsolidated entities reflects the Imagine Homes transaction. Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Equity in income of unconsolidated entities $ 521 $ 594 $ 347 For the fiscal years ended September 30, 2022, 2021 and 2020 , there wer e no impairments related to investments in unconsolidated entities. Guarantees Historically, the Company's joint ventures typically obtained secured acquisition, development, and construction financing. In addition, the Company and its joint venture partners provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of September 30, 2022 and 2021, the Company had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities. The Company and its joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate the Company to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During our fiscal years ended September 30, 2022 and 2021, the Company was not required to make any payments related to environmental indemnities. In assessing the need to record a liability for these guarantees, the Company considers its historical experience in being required to perform under the guarantees, the fair value of the collateral underlying these guarantees, and the financial condition of the applicable unconsolidated entities. In addition, the fair value of the collateral of unconsolidated entities is monitored to ensure that the related borrowings do not exceed the specified percentage of the value of the property securing the borrowings. As of September 30, 2022, no liability was recorded for the contingent aspects of any guarantees that were determined to be reasonably possible but not probable. |
Owned Inventory
Owned Inventory | 12 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Owned Inventory | Owned Inventory The components of our owned inventory are as follows as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Homes under construction $ 785,742 $ 648,283 Land under development 731,190 648,404 Land held for future development 19,879 19,879 Land held for sale 15,674 9,179 Capitalized interest 109,088 106,985 Model homes 76,292 68,872 Total owned inventory $ 1,737,865 $ 1,501,602 Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including costs of the underlying lot, direct construction costs and capitalized indirect costs . As of September 30, 2022, we had 2,688 homes under construction, including 887 spec homes totaling $246.5 million (793 in-process spec homes totaling $208.7 million, and 94 finished spec homes totaling $37.8 million). As of September 30, 2021, we had 2,912 homes under construction, including 576 spec homes totaling $116.4 million 542 in-process spec homes totaling $105.2 million, and 34 finished spec homes totaling $11.2 million). Land under developmen t consists principally of land acquisition, land development and other common costs. These land related costs are allocated to individual lots on a pro-rata basis, and the lot costs are transferred to homes under construction when home construction begins for the respective lots. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract. Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2). These assets are recorded at the lower of the carrying value or fair value less costs to sell (net realizable value). The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and land under development but excludes land held for future development and land held for sale (see Note 6 for additional information on capitalized interest). Total owned inventory by reportable segment is presented in the table below as of September 30, 2022 and 2021: in thousands Projects in Progress (a) Land Held for Future Land Held Total Owned September 30, 2022 West $ 934,309 $ 3,483 $ 14,998 $ 952,790 East 313,613 10,888 — 324,501 Southeast 284,424 5,508 676 290,608 Corporate and unallocated (b) 169,966 — — 169,966 Total $ 1,702,312 $ 19,879 $ 15,674 $ 1,737,865 September 30, 2021 West $ 781,036 $ 3,483 $ 4,478 $ 788,997 East 264,991 10,888 584 276,463 Southeast 269,738 5,508 4,117 279,363 Corporate and unallocated (b) 156,779 — — 156,779 Total $ 1,472,544 $ 19,879 $ 9,179 $ 1,501,602 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. (b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Inventory Impairments The following table presents, by reportable segment, our total impairments and abandonment charges for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Land Held for Sale: West $ 1,303 $ — $ 89 Southeast — — 8 Corporate and unallocated (a) 565 — 1,160 Total impairment charges on land held for sale $ 1,868 $ — $ 1,257 Abandonments: West $ 289 $ — $ 923 East 143 465 82 Southeast 663 388 641 Total abandonments charges $ 1,095 $ 853 $ 1,646 Total impairments and abandonment charges $ 2,963 $ 853 $ 2,903 (a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. Projects in Progress Impairments We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. If the aggregate undiscounted cash flows are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the carrying value exceeds the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. No project in progress impairments were recognized during the fiscal years ended September 30, 2022, 2021 and 2020. Land Held for Sale Impairments Impairments on land held for sale generally represent write downs of these properties to net realizable value based on sales contracts, letters of intent, current market conditions and recent comparable land sale transactions, as applicable. Absent an executed sales contract, our assumptions related to land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results. During the fiscal year ended September 30, 2022, we recognized $1.9 million land held for sale impairment charges related to two held for sale communities in the West segment. No land held for sale impairment charges were recognized during the fiscal year ended September 30, 2021. During the fiscal year ended September 30, 2020, we recognized $1.3 million land held for sale impairment charges related to two held for sale communities: one in the West segment and one in the Southeast segment. Abandonments |
Interest
Interest | 12 Months Ended |
Sep. 30, 2022 | |
Real Estate Inventory Capitalized Interest Costs [Abstract] | |
Interest | Interest Interest capitalized during the fiscal years ended September 30, 2022, 2021 and 2020 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Capitalized interest in inventory, beginning of period $ 106,985 $ 119,659 $ 136,565 Interest incurred 74,161 77,397 87,224 Capitalized interest impaired (439) — (792) Interest expense not qualified for capitalization and included as other expense (a) — (2,781) (8,468) Capitalized interest amortized to home construction and land sales expenses (b) (71,619) (87,290) (94,870) Capitalized interest in inventory, end of period $ 109,088 $ 106,985 $ 119,659 (a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table presents our property and equipment as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Model furnishings and sales office improvements $ 22,544 $ 19,617 Information systems 23,074 18,628 Furniture, fixtures and office equipment 11,019 10,613 Leasehold improvements 4,124 4,279 Buildings and improvements 1,671 1,671 Property and equipment, gross 62,432 54,808 Less: Accumulated depreciation (37,866) (31,923) Property and equipment, net $ 24,566 $ 22,885 |
Borrowings
Borrowings | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2022 and 2021: in thousands Maturity Date September 30, 2022 September 30, 2021 Senior Unsecured Term Loan September 2022 $ — $ 50,000 6.750% Senior Notes (2025 Notes) March 2025 211,195 229,555 5.875% Senior Notes (2027 Notes) October 2027 357,255 363,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 Unamortized debt issuance costs (7,280) (8,983) Total Senior Notes, net 911,170 983,827 Junior Subordinated Notes (net of unamortized accretion of $28,503 and $30,570 , respectively) July 2036 72,270 70,203 Secured Revolving Credit Facility February 2024 (a) — — Total debt, net $ 983,440 $ 1,054,030 (a) The Secured Revolving Credit Facility was scheduled to mature in February 2024; however, it was terminated early in conjunction with the Company entering into the new Senior Unsecured Revolving Credit Facility. Refer to below for further discussion. As of September 30, 2022, the future maturities of our borrowings were as follows: Fiscal Year Ended September 30, in thousands 2023 $ — 2024 — 2025 211,195 2026 — 2027 357,255 Thereafter 450,773 Total $ 1,019,223 Secured Revolving Credit Facility The Secured Revolving Credit Facility provides working capital and letter of credit capacity of $250.0 million. The Facility allows us to issue letters of credit against the undrawn capacity. Subject to our option to cash collateralize our obligations under the Facility upon certain conditions, our obligations under the Facility were secured by liens on substantially all of our personal property and a significant portion of our owned real property. We also pledged approximately $1.06 billion of inventory assets to the Facility to collateralize potential future borrowings or letters of credit (in addition to the letters of credit already issued under the Facility, if any). As of September 30, 2022 and 2021 , no borrowings were outstanding under the Facility. As of September 30, 2022 , we had letters of credit outstanding of $5.5 million under the Facility, resulting in a remaining capacity of $244.5 million . We had no letters of credit outstanding under the Facility as of September 30, 2021 . The Facility requires compliance with certain covenants, including negative covenants and financial covenants. As of September 30, 2022 , the Company believes it was in compliance with all such covenants. New Senior Unsecured Revolving Credit Facility On October 13, 2022, the Company entered into a Senior Unsecured Revolving Credit Facility (the “New Unsecured Facility”). The New Unsecured Facility replaces the Secured Revolving Credit Facility, and the Company expects to use the proceeds from the New Unsecured Facility for general corporate purposes. The New Unsecured Facility provides for a revolving credit facility with borrowing capacity up to $265.0 million. The Company also will have the right from time to time to request to increase the size of the commitments under the New Unsecured Facility by up to $135.0 million for a maximum of $400.0 million. The New Unsecured Facility terminates on October 13, 2026 (the “Termination Date”), and the Company may borrow, repay and reborrow amounts under the New Unsecured Facility until the Termination Date. Obligations of the Company under the New Unsecured Facility are jointly and severally guaranteed by certain of the Company’s existing and future direct and indirect subsidiaries, excluding, among others, certain specified unrestricted subsidiaries. The New Unsecured Facility contains customary financial covenants, including (i) a maximum leverage ratio, (ii) a minimum liquidity test, (iii) a minimum interest coverage ratio and (iv) a minimum net worth test. In addition, the New Unsecured Facility contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit liens, asset sales and investments, in each case subject to negotiated exceptions and baskets. The New Unsecured Facility also contains representations and warranties and event of default provisions customary for a transaction of this type. Letter of Credit Facilities The Company has entered into stand-alone, cash-secured letter of credit agreements with banks to maintain pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Facility). As of September 30, 2022 and 2021, the Company had letters of credit outstanding under these additional facilities of $29.7 million and $21.8 million, respectively, all of which were secured by cash collateral in restricted accounts totaling $31.5 million and $22.3 million, respectively . The Company may enter into additional arrangements to provide additional letter of credit capacity. Senior Notes The Company's Senior Notes are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Facility. Each guarantor subsidiary is a wholly owned subsidiary of Beazer Homes. All unsecured Senior Notes rank equally in right of payment with all existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes, but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture. The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company believes it was in compliance with the covenants contained in the indentures of all of its Senior Notes as of September 30, 2022. During the fiscal year ended September 30, 2022, we repurchased $6.0 million of our outstanding 2027 Notes and $18.4 million of our outstanding 2025 Notes using cash on hand, resulting in a gain on extinguishment of debt of $0.3 million . During the fiscal year ended September 30, 2021, we repurchased $30.7 million of our outstanding 2027 Notes using cash on hand, resulting in a loss on extinguishment of debt of $2.0 million. During the fiscal year ended September 30, 2020, we made no repurchases of Senior Notes and thus, no gain or loss on extinguishment of debt was recognized. For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 6.750% 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 5.875% 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. 7.250% Senior Notes September 2019 October 2029 On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest Junior Subordinated Notes The Company's uns ecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036 and have an aggregate principal balance of $100.8 million as of September 30, 2022. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, which was a weighted-average of 5.23% as of September 30, 2022. The obligations relating to these notes were subordinated to the Facility and the Senior Notes, and they are now subordinated to the New Unsecured Facility and the Senior Notes. In January 2010, the Company restructured $75.0 million of these notes and recorded them at their then estimated fair value. Over the remaining life of the restructured notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of September 30, 2022, the unamortized accretion was $28.5 million and will be amortized over the remaining life of the restructured notes. The remaining $25.8 million of these notes are subject to the terms of the original agreement, have a floating interest rate equal to three-month LIBOR plus 2.45% per annum, resetting quarterly, and are redeemable in whole or in part at par value. The material terms of the $75.0 million restructured notes are identical to the terms of the original agreement except that the floating interest rate is subject to a floor of 4.25% and a cap of 9.25%. In addition, beginning on June 1, 2012, the Company has the option to redeem the $75.0 million principal balance in whole or in part at 75% of par value; beginning on June 1, 2022, the redemption price will increase by 1.785% annually. As of September 30, 2022, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes. |
Contingencies
Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated. Warranty Reserves We currently provide a limited warranty ranging from one Our homebuilding work is performed by subcontractors who typically must agree to indemnify us with regard to their work and provide certificates of insurance demonstrating that they have met our insurance requirements and have named us as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. Warranty reserves are included in other liabilities within the consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review includes a quarterly analysis of the historical data and trends in warranty expense by division. An analysis by division allows us to consider market specific factors such as warranty experience, the number of home closings, the prices of homes, product mix, and other data in estimating warranty reserves. In addition, the analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in historical data and trends that may need to be separately estimated based on management's judgment of the ultimate cost of repair for that specific issue. While estimated warranty liabilities are adjusted each reporting period based on the results of our quarterly analyses, we may not accurately predict actual warranty costs, which could lead to significant changes in the reserve. In addition, we maintain third-party insurance, subject to applicable self-insured retentions, for most construction defects that we encounter in the normal course of business. We believe that our warranty and litigation accruals and third-party insurance are adequate to cover the ultimate resolution of our potential liabilities associated with known and anticipated warranty and construction-defect related claims and litigation. However, there can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers; that we will be able to renew our insurance coverage or renew it at reasonable rates; that we will not be liable for damages, the cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence, or building related claims; or that claims will not arise out of events or circumstances not covered by insurance and/or not subject to effective indemnification agreements with our subcontractors. Changes in warranty reserves are as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Balance at beginning of period $ 12,931 $ 13,052 $ 13,388 Accruals for warranties issued (a) 12,711 10,963 10,910 Changes in liability related to warranties existing in prior periods 382 864 (1,352) Payments made (12,098) (11,948) (9,894) Balance at end of period $ 13,926 $ 12,931 $ 13,052 (a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home. Insurance Recoveries The Company has insurance policies that provide for the reimbursement of certain warranty costs incurred above specified thresholds for each period covered. Amounts recorded for anticipated insurance recoveries are reflected within the consolidated statements of operations as a reduction of home construction expenses. Amounts not yet received from our insurer are recorded on a gross basis, without any reduction for the associated warranty expense, within accounts receivable on our consolidated balance sheets. Litigation In the normal course of business, we and certain of our subsidiaries are subject to various lawsuits and have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance. We 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. We have an accrual of $9.8 million and $8.3 million in other liabilities on our consolidated balance sheets related to litigation matters as of September 30, 2022 and 2021 , respectively. Surety Bonds and Letters of Credit We had outstanding letters of credit and surety bonds of $35.2 million and $279.6 million, respectively, as of September 30, 2022, related principally to our obligations to local governments to construct roads and other improvements in various developments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of the dates presented, we had assets on our consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and • Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recoverable. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value on assets deemed to be impaired is determined based upon the type of asset being evaluated. Fair value of our owned inventory assets, when required to be calculated, is further discussed within Notes 2 and 5. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3. During the fiscal year ended September 30, 2022, we recognized no impairments on projects in progress and $1.9 million of impairments on land held for sale. During the fiscal year ended September 30, 2021, we recognized no impairments on projects in progress and land held for sale. D uring the fiscal year ended September 30, 2020, we recognized no impairments on projects in progress and $1.3 million of impairments on land held for sale. Determining within which hierarchical level an asset or liability falls requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table presents the period-end balances of assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented: in thousands Level 1 Level 2 Level 3 Total As of September 30, 2022 Deferred compensation plan assets (a) $ — $ 3,179 $ — $ 3,179 Land held for sale (b) — — 902 (c) 902 As of September 30, 2021 Deferred compensation plan assets (a) $ — $ 2,730 $ — $ 2,730 As of September 30, 2020 Deferred compensation plan assets (a) $ — $ 2,339 $ — $ 2,339 Land held for sale (b) — — 6,240 (c) 6,240 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirect costs related to the asset. (c) Amount represents the impairment-date fair value of land held for sale assets that were impaired during the period indicated. The fair value of cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, and amounts due under the Facility (if outstanding) approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value. The following table presents the carrying value and estimated fair value of certain other financial liabilities as of September 30, 2022 and 2021: As of September 30, 2022 As of September 30, 2021 in thousands Carrying (a) Fair Value Carrying (a) Fair Value Senior Notes and Term Loan (b) $ 911,170 $ 753,338 $ 983,827 $ 1,046,965 Junior Subordinated Notes (c) 72,270 72,270 70,203 70,203 Total $ 983,440 $ 825,608 $ 1,054,030 $ 1,117,168 (a) Carrying amounts are net of unamortized debt issuance costs or accretion. (b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. |
Operating Leases
Operating Leases | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Certain of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expense that do not depend on an index or rate. We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date. Operating lease expense is included as a component of general and administrative expenses in our consolidated statements of operations. Sublease income and variable lease expenses are de minimis. For the fiscal years ended September 30, 2022, 2021 and 2020, we recorded operating lease expense of $4.0 million, $4.3 million and $4.5 million, respectively. Cash payments on lease liabilities during the fiscal years ended September 30, 2022, 2021 and 2020 totaled $4.4 million, $4.8 million and $4.6 million, respectively. At September 30, 2022 and 2021, weighted-average remaining lease term and discount rate were as follows: Fiscal Year Ended September 30, 2022 2021 Weighted-average remaining lease term 4.3 years 4.8 years Weighted-average discount rate 4.43% 4.56% The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2022: Fiscal Years Ending September 30, in thousands 2023 $ 3,799 2024 2,688 2025 2,299 2026 1,643 2027 702 Thereafter 1,226 Total lease payments (a) 12,357 Less: imputed interest 1,149 Total operating lease liabilities $ 11,208 (a) Lease payments excludes $11.2 million legally binding minimum lease payments for an office lease signed but not yet commenced as of September 30, 2022. The related ROU asset and operating lease liability are not reflected on the Company's consolidated balance sheet as of September 30, 2022. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Sep. 30, 2022 | |
Other Liabilities [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities include the following as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Accrued compensations and benefits $ 57,781 $ 54,606 Customer deposits 34,270 28,526 Accrued interest 22,723 22,835 Accrued warranty expenses 13,926 12,931 Litigation accruals 9,832 8,325 Income tax liabilities 320 — Other 35,536 25,128 Total $ 174,388 $ 152,351 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Current federal (a) $ — $ — $ (4,641) Current state 4,859 1,126 485 Deferred federal 47,239 20,331 20,639 Deferred state 1,173 89 1,490 Total expense $ 53,271 $ 21,546 $ 17,973 (a) Fiscal 2020 federal current benefit is primarily driven by the expected refund of our remaining alternative minimum tax credit balance due to the enactment of the CARES Act. Refer to Note 2 for further discussion. The Company's expense (benefit) from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Income tax computed at statutory rate $ 57,538 $ 30,182 $ 14,971 State income taxes, net of federal benefit 4,482 1,564 1,300 Deferred rate change 346 (904) 260 Changes in uncertain tax positions — — (2) Permanent differences 2,952 2,433 2,177 Tax credits (12,081) (12,088) (939) Other, net 34 359 206 Total expense $ 53,271 $ 21,546 $ 17,973 The principal differences between our effective tax rate and the U.S. federal statutory rate for fiscal years 2022 , 2021 and 2020 relate to state taxes, permanent differences and tax credits. Due to the effects of tax credits, our income tax expense is not always directly correlated to the amount of pre-tax income for the associated periods. Deferred income taxes refl ect the net tax effects of temporary differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2022 and 2021 : in thousands September 30, 2022 September 30, 2021 Deferred tax assets: Federal and state net operating loss carryforwards $ 149,299 $ 177,611 Incentive compensation 12,914 13,793 Warranty and other reserves 7,091 6,006 Inventory adjustments 6,716 25,174 Intangible assets 1,515 6,016 Property, equipment and other assets 771 2,085 Uncertain tax positions 705 705 Other 2,743 2,435 Total deferred tax assets 181,754 233,825 Valuation allowance (25,396) (29,059) Deferred tax assets, net $ 156,358 $ 204,766 As of September 30, 2022, our gross deferred tax assets above included $61.0 million of federal net operating loss (NOL) carryforwards, $57.8 million of federal tax credits, and $33.9 million of state NOL carryforwards. The majority of our federal NOL carryforwards expire at various dates through our fiscal 2033, our federal tax credits expire at various dates through our fiscal 2042, and a majority of our state NOL carryforwards expire at various dates through our fiscal 2041. As of September 30, 2022, valuation allowance of $25.4 million remains on various state NOL carryforwards for which the Company has concluded it is not more likely than not that these attributes would be realized. We experienced an “ownership change” as defined in Section 382 of the Internal Revenue Code (Section 382) as of January 12, 2010. Section 382 contains rules that limit the ability of a company that undergoes an “ownership change” to utilize its net operating loss carryforwards, tax credits and certain built-in losses or deductions recognized during the five-year period after the ownership change to offset future taxable income. Because the five-year period has expired, we have determined the actual impact and final classification of those amounts, which are properly reflected in the amounts presented above. There can be no assurance that another ownership change, as defined in the tax law, will not occur. If another “ownership change” occurs, a new annual limitation on the utilization of net operating loss carryforwards, tax credits and built-in losses would be determined as of that date. This limitation, should one be required in the future, is subject to assumptions and estimates that could differ from actual results. Valuation Allowance A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, we assess the need to establish valuation allowances for deferred tax assets periodically based on the more-likely-than-not realization threshold criterion. In our assessment, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, the Company's experience with operating loss carryforwards and tax credit carryforwards not expiring unused, the Section 382 limitation on our ability to carryforward pre-ownership change net operating losses, recognized built-in losses or deductions and tax planning alternatives. Our assessment, while rooted in actual Company performance, are highly subjective and rely on certain estimates, including forecasts, which could differ materially from actual results. In fiscal 2022, our conclusions about our ability to more likely than not realize all of our federal and certain state tax attributes remain consistent with our prior determinations. We considered positive factors including significant increases in our current earnings, interest savings from our debt reduction strategies, shortage in housing supply, and our backlog. The negative factors included the overall health of the broader economy, significant increases in mortgage interest rates, and weakened housing demand. As of September 30, 2022, the Company will have to cumulatively generate approximately $907.1 million in pre-tax income over the course of its carryforward period to realize its deferred tax assets prior to their expiration, which, as previously discussed, is the Company's fiscal 2042. Unrecognized Tax Benefits A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Balance at beginning of year $ 3,358 $ 3,441 $ 3,473 Additions for tax positions related to current year — — — Additions for tax positions related to prior years — — — Reductions in tax positions of prior years — — — Lapse of statute of limitations — (83) (32) Balance at end of year $ 3,358 $ 3,358 $ 3,441 If we were to recognize our $3.4 million of gross unrecognized tax benefits remaining as of September 30, 2022, substantially all would impact our effective tax rate. Additionally, we had no accrued interest and penalties as of September 30, 2022, 2021 and 2020 . If applicable, we would record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. In the normal course of business, we are subject to audits by federal and state tax authorities regarding various tax liabilities. The statute of limitations for our major tax jurisdictions remains open for examination for fiscal year 2007 and subsequent years. As of September 30, 2022, we do not expect that any of our uncertain tax positions will reverse within the next twelve months. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock The Company currently has no shares of preferred stock outstanding. Common Stock As of September 30, 2022, the Company had 63,000,000 sha res of common stock authorized and 30,880,138 s hares both issued and outstanding. Common Stock Repurchases In May 2022 , the Company's Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. This newly authorized program replaced the prior share repurchase program authorized in the first quarter of fiscal 2019 of up to $50.0 million of common stock repurchases, pursuant to which $12.0 million of the capacity remained prior to the replacement of the program. As part of this new program, the C ompany repurchased 570 thousand shares of its common stock for $8.2 million at an average price per share of $14.33 during the year ended September 30, 2022 through open market transactions. No share repurchases were made during fiscal year 2021 . During the year ended September 30, 2020, the Company repurchased approximately 362 thousand shares of its common stock for $3.3 million at an average price per share of $9.20 through open market transactions, including 10b5-1 plans. All shares have been retired upon repurchase. The aggregate reduction to stockholders’ equity related to share repurchases duri ng the fiscal years ended September 30, 2022, 2021 and 2020 was $8.2 million, $0.0 million and $3.3 million, respectively. As of September 30, 2022 , the remaining availability of the new share repurchase program was $41.8 million. The repurchase program has no expiration date. Dividends The indentures under which our Senior Notes were issued contain certain restrictive covenants, including limitations on our payment of dividends. There were no dividends paid during our fiscal 2022, 2021 or 2020. Section 382 Rights Agreement Our certificate of incorporation prohibits certain transfers of our common stock that could result in an ownership change as defined in Section 382. In additio n, we are party to a rights agreement intended to act as a deterrent to any person desiring to acquire 4.95% or more of our common stock. These instruments are designed to preserve the value of certain tax assets associated with our net operating loss carryforwards, tax credits and built-in losses under Section 382. In February 2022, our stockholders approved an extension of these protective provisions in our certificate of incorporation and the rights agreement. |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plan | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement and Deferred Compensation Plan | Retirement and Deferred Compensation Plans 401(k) Retirement Plan The Company sponsors a defined-contribution plan that is a tax-qualified retirement plan under section 401(k) of the Internal Revenue Code (the Plan). Substantially all employees are eligible for participation in the Plan. Participants may defer and contribute from 1% to 80% of their salary to the Plan, with certain limitations on highly compensated individuals. The Company matches up to 50% of the participant's contributions limited to 6% of the participant's earnings. The participant's contributions vest immediately, while the Company's contributions vest over five years. The total Company contributions for the fiscal years ended September 30, 2022, 2021 and 2020 were approximately $3.5 million , $3.2 million and $3.4 million, respectively. During fiscal 2022, 2021 and 2020, participants forfeited $0.3 million , $0.8 million and $1.0 million, respectively, of unvested matching contributions. Deferred Compensation Plan The Beazer Homes USA, Inc. Deferred Compensation Plan (the DCP) is a non-qualified deferred compensation plan for a select group of executives and highly compensated employees. The DCP allows the executives to defer current compensation on a pre-tax basis to a future year, until termination of employment. The objectives of the DCP are to assist executives with financial planning and capital accumulation and to provide the Company with a method of attracting, rewarding and retaining executives. Participation in the DCP is voluntary. Beazer Homes may voluntarily make a contribution to the participants' DCP accounts. Deferred compensation assets of $3.2 million and $2.7 million as of September 30, 2022 and 2021, respectively, are included in other assets on our consolidated balance sheets and are recorded at fair value. Deferred compensation liabilities of $5.5 million and $7.2 million as of September 30, 2022 and 2021, respectively, are included in other liabilities on our consolidated balance sheets. For the years ended September 30, 2022, 2021 and 2020, the Company contributed approximately $0.2 million , $0.2 million and $0.2 million, respectively, to the DCP in the form of voluntary contributions. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has shares available for grant under the Amended and Restated 2014 Beazer Homes USA, Inc. Long-Term Incentive Plan. We issue new shares upon the exercise of stock options and the grant of restricted stock awards. In cases of forfeitures and cancellations, those shares are returned to the share pool for future issuance. As of September 30, 2022, we had 1.5 million shares of common stock for issuance under our various equity incentive plans, of which 1.5 million shares are available for future grants. Stock-based compensation expense is included in general and administrative expenses in our consolidated statements of operations. The following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2022, 2021 and 2020, respectively. Fiscal Year Ended September 30, in thousands 2022 2021 2020 Stock options expense $ 1 $ 25 $ 133 Restricted stock awards expense 8,477 12,142 9,903 Stock-based compensation expense $ 8,478 $ 12,167 $ 10,036 Stock Options Stock options have an exercise price equal to the fair market value of the common stock on the grant date, generally vest two The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model (Black-Scholes Model). As of September 30, 2022, the intrinsic value of our stock options outstanding and vested and exercisable were less than $0.1 million and less than $0.1 million, respectively. As of both September 30, 2022 and 2021, there was less than $0.1 million of total unrecognized compensation cost related to unvested stock options. The cost remaining as of September 30, 2022 is expected to be recognized over a weighted-average period of 1.4 years. During fiscal 2018, the Compensation Committee of our Board of Directors approved the Employee Stock Option Program (ESOP). This program is available to all full-time employees and is designed to enable employees to share in potential price appreciation of the Company's stock. The ESOP matches stock purchases made by eligible employees meeting certain conditions with an option to purchase an additional share of the Company's shares on a one-to-one basis. The exercise price of the options granted is equal to the closing price of the Company's stock on the day the underlying shares are purchased by the employee, which is also the ESOP grant date. The options will vest on the second anniversary of the date of grant but are forfeited if (1) the eligible employee no longer works for the Company or (2) the underlying shares are sold before the two-year vesting period is over. The total number of options available under the ESOP is limited to 100,000, each for one share of the Company's common stock, of which 31,968 options were granted through the end of fiscal 2022 . During the year ended September 30, 2022, we issued 236 s tock options, all were issued under the ESOP. No stock options were issued during the year ended September 30, 2021, and 950 stock options were issued during the year ended September 30, 2020. We used the following valuation assumptions for stock options granted for the periods presented: Fiscal Year Ended September 30, 2022 2020 Expected life of options 5.7 years 5.7 years Expected volatility 55.02 % 51.52 % Expected dividends — — Weighted-average risk-free interest rate 1.88 % 0.43 % Weighted-average fair value $ 8.54 $ 4.99 We relied upon a combination of the observed exercise behavior of our prior grants with similar characteristics, the vesting schedule of the current grants, and an index of peer companies with similar grant characteristics to determine the expected life of the options granted. We considered historic returns of our stock and the implied volatility of our publicly-traded options in determining expected volatility. We assumed no dividends would be paid since our Board of Directors has suspended payment of dividends indefinitely and payment of dividends is restricted under our Senior Notes covenants. The ri sk-free interest rate is based on the term structure of interest rates at the time of the option grant. A summary of stock option activity for the periods presented is as follows: 2022 2021 2020 Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at beginning of period 114,259 $ 17.89 392,465 $ 15.47 523,754 $ 14.34 Granted 236 16.58 — — 950 10.67 Exercised (988) 11.32 (278,206) 14.48 (128,921) 11.01 Expired (86,000) 19.11 — — — — Forfeited — — — — (3,318) 9.55 Outstanding at end of period 27,507 $ 14.31 114,259 $ 17.89 392,465 $ 15.47 Exercisable at end of period 27,271 $ 14.29 113,309 $ 17.95 354,796 $ 15.90 Information pertaining to the intrinsic value of options exercised and the fair market value of options that vested is below: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Intrinsic value of options exercised $ 6 $ 1,402 $ 587 Fair market value of options vested $ 5 $ 173 $ 144 Restricted Stock Awards The fair value of each restricted stock award with market conditions is estimated on the date of grant using the Monte Carlo valuation method. The fair value of restricted stock awards without market conditions is based on the market price of the Company's common stock on the date of grant. If applicable, the cash-settled component of any awards granted to employees is accounted for as a liability, which is adjusted to fair value each reporting period until vested. Compensation cost arising from restricted stock awards granted to employees is recognized as an expense using the straight-line method over the vesting period. As of September 30, 2022 and 2021 , there was $7.3 million and $7.2 million, respectively, of total unrecognized compensation cost related to unvested restricted stock awards. The cost remaining as of September 30, 2022 is expected to be recognized over a weighted-average period of 1.7 years . During fiscal 2022, we issued time-based restricted stock awards and performance-based restricted stock awards with a payout subject to certain performance and market conditions. Each award type is discussed below. Performance-Based Restricted Stock Awards During the yea r ended September 30, 2022, we i ss ued 91,858 shares of performance-based restricted stock (2022 Performance Shares), containing market conditions, to our executive officers and certain other employees. The 2022 Performance Shares are structured to be awarded based on the Company's performance under three pre-determined financial and operational metrics at the end of the three-year performance period. After determining the number of shares earned based on the financial and operational metrics, which can range from 0% to 175% of the targeted number of shares, the award will be subject to further upward or downward adjustment by as much as 20% based on the Company's relative total shareholder return (TSR) compared against a selected small to mid-cap homebuilder peers during the three-year performance period. The 2022 Performance Shares were val ued using the Monte Carlo valuation model due to the existence of the TSR market condition and had an estimated fair value of $23.36 per share on the date of grant. A Monte Carlo valuation model requires the following inputs: (1) the expected dividend yield on the underlying stock; (2) the expected price volatility of the underlying stock; (3) the risk-free interest rate for the period corresponding with the expected term of the award; and (4) the fair value of the underlying stock. For the Company and each member of the peer group, the following inputs were used, as applicable, in the Monte Carlo valuation model to determine the fair value as of the grant date for performance-based restricted stock granted in each of the fiscal years ended. Fiscal Year Ended September 30, 2022 2021 2020 Expected volatility range 41.0% - 89.0% 26.1% - 67.0% 21.2% - 54.8% Risk-free interest rate 0.81 % 0.23 % 1.61 % Dividend yield — — — Grant-date stock price range $21.40 - $142.99 $14.07 - $4,318.03 $15.62 - $3,595.17 Each of our performance shares represent a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2019, we cash settled 135,337 shares earned above target level based on the performance level achieved under our 2017 performance-based award plan. The cash payment totaled $2.1 million, which was reflected as a reduction to paid-in capital in the accompanying consolidated statements of stockholders' equity. We have not cash settled any such performance-based awards prior to or subsequent to the November 2019 transaction, and we have no current plans to cash settle any additional performance-based restricted shares in the future. The performance criteria of the 2020 Performance Share grant were satisfied as of September 30, 2022. Based on the actual performance level achieved, 334,736 performance-based restricted stock awards from the 2020 Performance Share grant cliff vested at the end of the three-year vesting period on November 15, 2022. Of the total $7.0 million compensation cost related to these awards, we have recognized $2.1 million, $3.3 million and $1.3 million during the fiscal years ended September 30, 2022, 2021 and 2020, respectively. The remaining $0.3 million of unrecognized compensation cost will be recognized in the first quarter of fiscal 2023. Time-Based Restricted Stock Awards During the year ended September 30, 2022, we also issued 246,844 shares of t ime-based restricted stock (Restricted Shares) to our directors, executive officers, and certain other employees. Restricted Shares are valued based on the market price of the Company's common stock on the date of the grant. The Restricted Shares granted to our non-employee directors vest on the first anniversary of the grant, while the Restricted Shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant. Activity relating to all restricted stock awards for the periods presented is as follows: Year Ended September 30, 2022 Performance-Based (a) Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 738,155 $ 13.45 486,574 $ 13.79 1,224,729 $ 13.59 Granted 269,617 18.98 246,844 21.40 516,461 20.14 Vested (552,417) 10.50 (286,182) 13.21 (838,599) 11.42 Forfeited (19,209) 17.27 (35,194) 16.49 (54,403) 16.77 End of period 436,146 $ 17.76 412,042 $ 18.52 848,188 $ 18.13 (a) Grant and vesting activity during the year ended September 30, 2022 include 177,759 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period. Year Ended September 30, 2021 Performance-Based (a) Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 796,024 $ 14.71 610,130 $ 13.85 1,406,154 $ 14.34 Granted 164,296 17.90 251,788 14.21 416,084 15.67 Vested (222,165) 22.40 (346,856) 14.36 (569,021) 17.50 Forfeited — — (28,488) 11.77 (28,488) 11.77 End of period 738,155 $ 13.45 486,574 $ 13.79 1,224,729 $ 13.59 (a) Grant and vesting activity during the year ended September 30, 2021 include 60,930 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period. Year Ended September 30, 2020 Performance-Based Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 778,814 $ 13.60 611,607 $ 12.11 1,390,421 $ 16.53 Granted 260,131 16.98 327,571 15.29 587,702 16.04 Vested (242,921) 13.60 (302,255) 11.89 (545,176) 12.65 Forfeited — — (26,793) 13.79 (26,793) 13.79 End of period 796,024 $ 14.71 610,130 $ 13.85 1,406,154 $ 14.34 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted income (loss) per share adjusts the basic income (loss) per share for the effects of any potentially dilutive securities in periods in which the Company has net income and such effects are dilutive under the treasury stock method. Following is a summary of the components of basic and diluted income (loss) per share for the periods presented: Fiscal Year Ended September 30, in thousands (except per share data) 2022 2021 2020 Numerator: Income from continuing operations $ 220,718 $ 122,180 $ 53,316 Loss from discontinued operations, net of tax (14) (159) (1,090) Net income $ 220,704 $ 122,021 $ 52,226 Denominator: Basic weighted-average shares 30,432 29,954 29,704 Dilutive effect of restricted stock awards 357 461 229 Dilutive effect of stock options 7 22 15 Diluted weighted-average shares (a) 30,796 30,437 29,948 Basic income (loss) per share: Continuing operations $ 7.25 $ 4.08 $ 1.80 Discontinued operations — (0.01) (0.04) Total $ 7.25 $ 4.07 $ 1.76 Diluted income (loss) per share: Continuing operations $ 7.17 $ 4.01 $ 1.78 Discontinued operations — — (0.04) Total $ 7.17 $ 4.01 $ 1.74 (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. Fiscal Year Ended September 30, in thousands 2022 2021 2020 Stock options 22 142 375 Time-based restricted stock — — 46 |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2022 | |
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 (a) East : Delaware, Indiana, Maryland, New Jersey (b) , Tennessee, and Virginia Southeast : Florida, Georgia, North Carolina, and South Carolina (a) On May 20, 2022, we acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder in which the Company has held a one-third ownership stake for the past 16 years. The results of our San Antonio operations are reported herein within our West reportable segment. (b) During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, it is included in this listing because the segment information below continues to include New Jersey. Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding and land sales and other revenue less home construction, land development, and land sales expense, commission expense, depreciation and amortization, and certain G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are those described in Note 2. The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Revenue West $ 1,331,553 $ 1,118,578 $ 1,183,339 East 560,747 569,835 477,624 Southeast 424,688 451,890 466,114 Total revenue $ 2,316,988 $ 2,140,303 $ 2,127,077 Fiscal Year Ended September 30, in thousands 2022 2021 2020 Operating income West $ 253,961 $ 181,303 $ 161,786 East 102,146 84,630 56,319 Southeast 68,726 57,581 40,746 Segment total 424,833 323,514 258,851 Corporate and unallocated (a) (152,342) (176,645) (179,744) Total operating income $ 272,491 $ 146,869 $ 79,107 (a) Includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. Fiscal Year Ended September 30, in thousands 2022 2021 2020 Depreciation and amortization West $ 8,178 $ 7,250 $ 8,227 East 1,649 2,207 2,458 Southeast 1,843 2,552 2,857 Segment total 11,670 12,009 13,542 Corporate and unallocated (a) 1,690 1,967 2,098 Total depreciation and amortization $ 13,360 $ 13,976 $ 15,640 (a) R epresents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Capital expenditures West $ 7,755 $ 6,924 $ 5,063 East 1,208 1,549 2,237 Southeast 1,215 1,447 2,985 Corporate and unallocated 4,870 4,725 357 Total capital expenditures $ 15,048 $ 14,645 $ 10,642 The following table presents assets by segment as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Assets West $ 995,339 $ 819,317 East 334,323 286,133 Southeast 305,443 296,581 Corporate and unallocated (a) 616,858 676,779 Total assets $ 2,251,963 $ 2,078,810 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued OperationsWe continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase stockholder value. This review entails an evaluation of both external market factors and our position in each market, and over time has resulted in the decision to discontinue certain of our homebuilding operations. We have classified the results of operations of our discontinued operations separately in the accompanying consolidated statements of operations for all periods presented. There were no material assets or liabilities related to our discontinued operations as of September 30, 2022 or 2021 . Discontinued operations were not segregated in the consolidated statements of cash flows. Therefore, amounts for certain captions in the consolidated statements of cash flows will not agree with the respective data in the consolidated statements of operations. The results of our discontinued operations in the consolidated statements of operations for the periods presented were as follows: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Home construction and land sales expenses (a) $ (5) $ 119 $ 1,245 Gross profit (loss) 5 (119) (1,245) General and administrative expenses 23 85 173 Operating loss (18) (204) (1,418) Other income, net — — 19 Loss from discontinued operations before income taxes (18) (204) (1,399) Benefit from income taxes (4) (45) (309) Loss from discontinued operations, net of tax $ (14) $ (159) $ (1,090) (a) Hom e construction and land sales expenses for the year ended September 30, 2020 include a $1.3 million estimated litigation settlement accrual relating to a case regarding past construction defects in our discontinued operations. Pursuant to the settlement agreement, the Company paid $1.4 million during fiscal 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 13, 2022 , the Company entered into a Senior Unsecured Revolving Credit Facility (the “New Unsecured Facility”) which replaced our existing secured revolving credit facility. Refer to Note 8 for additional details related to the New Unsecured Facility. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and present the consolidated financial position, income, stockholders' equity, and cash flows of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income is equivalent to our comprehensive income, so we have not presented a separate statement of comprehensive income. In the past, we have discontinued homebuilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying consolidated statements of operations for all periods presented (see Note 19 for a further discussion of our discontinued operations). Our fiscal year 2022 began on October 1, 2021 and ended on September 30, 2022. Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. Our fiscal year 2020 began on October 1, 2019 and ended on September 30, 2020. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted CashWe consider highly liquid investments with maturities of three months or less when acquired to be cash equivalents. As of September 30, 2022, the majority of our cash and cash equivalents were on demand deposits with major banks. These assets were valued at par and had no withdrawal restrictions. Restricted cash includes cash restricted by state law or a contractual requirement, including cash collateral for our outstanding cash-secured letters of credit (refer to Note 8). |
Accounts Receivables and Allowance | Accounts Receivable and Allowance Accounts receivable include escrow deposits to be received from title companies associated with closed homes, receivables from municipalities related to the development of utilities or other infrastructure, land banker reimbursements to be received related to land development costs, rebates to be received from our suppliers and other miscellaneous receivables. Generally, we receive cash from title companies within a few days of the home being closed. We regularly review our receivable balances for collectability and record an allowance for expected credit losses. |
Owned Inventory | Owned InventoryOwned inventory includes land acquisition costs, land development costs, home construction costs, capitalized interest, real estate taxes, direct overhead costs and capitalized indirect costs incurred during land development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and other common costs (both incurred and estimated to be incurred) are allocated to individual lots on a pro-rata basis, and the cost of individual lots is transferred to homes under construction when home construction begins. Changes in estimated land and other common costs to be incurred in a community are generally allocated to the remaining lots on a prospective basis. Home construction costs are accumulated on a per-home basis. Cost of home closings includes the specific construction costs of the home and the allocated lot costs. |
Inventory Valuation - Projects in Progress | Inventory Valuation - Projects in Progress Projects in progress inventory includes homes under construction and land under development grouped together as communities. Generally, upon the commencement of land development activities, it may take three We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. We evaluate, among other things, the average sales price and margins on recent home closings, homes in backlog and expected future home sales for each community. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. This undiscounted cash flow analysis requires important assumptions including, among other things, the current and future home sale prices, margins and the pace of closings to occur in the future. For those communities whose carrying values exceed the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. The fair value of the community is estimated using the present value of the estimated future cash flows using discount rates commensurate with the risk associated with the underlying community. Should the estimates or expectations used in determining estimated fair values deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to these assets, and such amounts could be material. |
Inventory Valuation - Land Held for Future Development and Sale | Inventory Valuation - Land Held for Future Development Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for future development is stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable, such as the future enactment of a development plan or the occurrence of outside events. We evaluate the potential plans for each community in land held for future development if changes in facts and circumstances occur that would give rise to a more detailed analysis for a change in the status of a community. Inventory Valuation - Land Held for Sale Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets. We record land held for sale at the lower of the asset's carrying value or fair value less costs to sell (net realizable value). Land is classified as held for sale when the following criteria are met: • management has the authority and commits to a plan to sell the land; • the land is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of land assets; • there is an active program to locate a buyer and the plan to sell the property has been initiated; • the sale of the land is probable within one year; • the property is being actively marketed at a reasonable sale price relative to its current fair value; and • it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We evaluate the net realizable value of a land held for sale asset when indicators of impairment are present. In determining the fair value of the assets less cost to sell, we consider factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals, any recent legitimate offers and listing prices of similar properties. If the current carrying value of the asset exceeds the estimated fair value less cost to sell, the asset is impaired and written down to its estimated fair value less cost to sell. Due to uncertainties in the estimation process, it is reasonably possible that actual results could differ from the estimates used in our analysis. Our assumptions about land sales prices require significant judgment because the market is highly sensitive to changes in economic conditions. We calculate the estimated fair values of land held for sale based on current market conditions and assumptions made by management, which may differ materially from actual results and may result in additional impairments if market conditions deteriorate. |
Lot Option Agreements and Variable Interest Entities (VIE) | Lot Option Agreements and Variable Interest Entities (VIE) In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit, irrevocable letter of credit or surety bond based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit or surety bonds, and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option agreements. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all. The following table provides a summary of our interests in lot option agreements as of September 30, 2022 and 2021: in thousands Deposits & Non-refundable Pre-acquisition Costs Incurred (a) Remaining As of September 30, 2022 Unconsolidated lot option agreements $ 142,433 $ 827,600 As of September 30, 2021 Unconsolidated lot option agreements $ 114,688 $ 676,149 (a) Amount is included as a component of land under development within our owned inventory in the consolidated balance sheet. In accordance with Accounting Standards Codification (ASC) Topic 810, Consolidation (ASC 810), if the entity holding the land under option is a variable VIE, the Company's deposit represents a variable interest in that entity. ASC 810 requires a company consolidate a VIE if the company is determined to be the primary beneficiary. To determine whether we are the primary beneficiary of the VIE, we first evaluate whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to, (1) the ability to determine the budget and scope of land development work, if any; (2) the ability to control financing decisions for the VIE; (3) the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with Beazer; and (4) the ability to change or amend the existing option agreement with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE and thus do not consolidate the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are expected to absorb a potentially significant amount of the VIE's losses or, if no party absorbs the majority of such losses, if we will benefit from potentially a significant amount of the VIE's expected gains. |
Investments in Unconsolidated Entities | Investments in Unconsolidated EntitiesWe participate in a number of joint ventures and other investments in which we have less than a controlling interest. We enter into the majority of these investments with land developers, other homebuilders and financial partners to acquire attractive land positions, to manage our risk profile and to leverage our capital base. The land positions are developed into finished lots for sale to the unconsolidated entity's members or other third parties. We recognize our share of equity in income (loss) and profits (losses) from the sale of lots to other buyers. Our share of profits from lots we purchase from the unconsolidated entities is deferred and treated as a reduction of the cost of the land purchased from the unconsolidated entity. Such profits are subsequently recognized at the time the home closes and title passes to the homebuyer. We evaluate our investments in unconsolidated entities for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of our investment in the unconsolidated entity has occurred that is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value, which is determined primarily using a discounted cash flow model. Our unconsolidated entities typically obtain secured acquisition, development and construction financing. We account for our interest in unconsolidated entities under the equity method. |
Property and Equipment, Net | Property and Equipment, Net Our property and equipment is recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis based on estimated useful lives as follows: Asset Class Useful Lives Buildings and improvements 25 - 30 years Information systems Lesser of estimated useful life of the asset or 5 years Furniture, fixtures and computer and office equipment 3 - 7 years Model and sales office improvements Lesser of estimated useful life of the asset or estimated life of the community Leasehold improvements Lesser of the lease term or the estimated useful life of the asset |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets from the businesses that we acq uire. The Company's entire goodwill balance is recorded in our Southeast reportable segment. The Company evaluates goodwill for impairment at the reporting unit level annually during the fourth quarter or more often if indicators of impairment exist. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of the reporting unit is less than the carrying value, then a quantitative assessment is performed. |
Other Assets | Other Assets Our other assets principally include prepaid expenses, unamortized debt issuance costs on our Secured Revolving Credit Facility, and assets related to our deferred compensation plan (refer to Note 15 for a discussion of our deferred compensation plan). |
Other Liabilities | Other LiabilitiesOur other liabilities principally include accrued compensations and benefits, accrued interest on our outstanding borrowings, customer deposits, accrued warranty expense, litigation accruals, income tax liabilities and other accruals related to our operations. |
Income Taxes | Income TaxesOur provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities result from deductible or taxable amounts in future years when such assets and liabilities are recovered or settled, and are measured using the enacted tax rates and laws that are expected to be in effect when the assets and liabilities are recovered or settled. We include any estimated interest and penalties on tax related matters in income taxes payable. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. We record interest and penalties related to unrecognized tax benefits in income tax expense within our consolidated statements of operations. Changes in recognition of measurement are recorded in the period in which the change in judgment occurs. Our income tax receivable includes the refundable portion of our alternative minimum tax credit. The alternative minimum tax credit became a refundable credit when the alternative minimum tax was eliminated with the enactment of the Tax Cuts and Jobs Act on December 22, 2017. |
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 process specified i n ASC Topic 606, Revenue from Contracts with Customers . The following table presents our total revenue disaggregated by revenue stream: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Homebuilding revenue $ 2,302,520 $ 2,127,700 $ 2,116,910 Land sales and other revenue 14,468 12,603 10,167 Total revenue (a) $ 2,316,988 $ 2,140,303 $ 2,127,077 (a) Please see Note 18 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home is transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and totaled $34.3 million and $28.5 million as of September 30, 2022 and 2021 , respectively. Of the customer liabilities outstanding as of September 30, 2021, $26.3 million was recognized in revenue during the year ended September 30, 2022, upon closing of the related homes, and $1.2 million was refunded to or forfeited by the buyer. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized when closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Home Construction Expenses Home construction expenses includes the specific construction costs of the home and the allocated lot costs (land acquisition, land development and other common costs are allocated to individual lots on a pro-rata basis based on the number of lots remaining to close). All home closing costs are charged to home construction expenses in the period when the revenues from home closing are recognized. Sales discounts and incentives include discounts on home prices, discounts on home building options and option upgrades, and seller-paid financing or closing costs. Home price discounts and option discounts are accounted for as a reduction in the sale price of the home, thereby decreasing the amount of revenue we recognize on that closing. All other sales incentives are recognized as a cost of selling the home and are included in home construction expenses. Estimated future warranty costs are charged to home construction expense in the period when the revenues from home closings are recognized. Such estimated warranty costs generally range from 0.3% to 1.0% |
Fair Value Measurements | Fair Value MeasurementsCertain of our assets are required to be recorded at fair value on a recurring basis, for example, the fair value of our deferred compensation plan assets are based on market-corroborated inputs (level 2). Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recovered (level 3). For example, we review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value is based on estimated cash flows discounted for market risks associated with the long-lived assets. The fair value of certain of our financial instruments approximates their carrying amounts due to the short maturity of these assets and liabilities or the variable interest rates on such obligations. The fair value of our publicly-held debt is generally estimated based on quoted bid prices for these instruments (level 2). Certain of our other financial liabilities are estimated by discounting scheduled cash flows through maturity or using market rates currently being offered on loans with similar terms and credit quality. |
Stock-Based Compensation | Stock-Based CompensationWe use the Black-Scholes option-pricing model to value our stock option grants. Restricted stock awards with market conditions are valued using the Monte Carlo valuation method. Other restricted stock awards without market conditions are valued based on the market price of the Company's common stock on the date of the grant. In addition, we reflect the benefits of tax deductions in excess of recognized compensation cost as an operating cash outflow. Compensation cost arising from all stock-based compensation awards is recognized as expense using the straight-line method over the vesting period and is included in G&A in our consolidated statements of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact but do not expect that the adoption of ASU 2020-04 will have a material impact on our consolidated financial statements and related disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of interests in lot option agreements | The following table provides a summary of our interests in lot option agreements as of September 30, 2022 and 2021: in thousands Deposits & Non-refundable Pre-acquisition Costs Incurred (a) Remaining As of September 30, 2022 Unconsolidated lot option agreements $ 142,433 $ 827,600 As of September 30, 2021 Unconsolidated lot option agreements $ 114,688 $ 676,149 |
Schedule of estimated useful lives | Depreciation is computed on a straight-line basis based on estimated useful lives as follows: Asset Class Useful Lives Buildings and improvements 25 - 30 years Information systems Lesser of estimated useful life of the asset or 5 years Furniture, fixtures and computer and office equipment 3 - 7 years Model and sales office improvements Lesser of estimated useful life of the asset or estimated life of the community Leasehold improvements Lesser of the lease term or the estimated useful life of the asset The following table presents our property and equipment as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Model furnishings and sales office improvements $ 22,544 $ 19,617 Information systems 23,074 18,628 Furniture, fixtures and office equipment 11,019 10,613 Leasehold improvements 4,124 4,279 Buildings and improvements 1,671 1,671 Property and equipment, gross 62,432 54,808 Less: Accumulated depreciation (37,866) (31,923) Property and equipment, net $ 24,566 $ 22,885 |
Schedule of revenue recognition | The following table presents our total revenue disaggregated by revenue stream: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Homebuilding revenue $ 2,302,520 $ 2,127,700 $ 2,116,910 Land sales and other revenue 14,468 12,603 10,167 Total revenue (a) $ 2,316,988 $ 2,140,303 $ 2,127,077 (a) Please see Note 18 for total revenue disaggregated by reportable segment. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosure of non-cash activity | The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the consolidated balance sheets and consolidated statements of cash flows for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Supplemental disclosure of non-cash activity: Beginning operating lease right-of-use assets (ASC 842 adoption) (a) $ — $ — $ 13,895 Beginning operating lease liabilities (ASC 842 adoption) (a) $ — $ — $ 16,028 Increase in operating lease right-of-use assets (b) $ 835 $ 2,905 $ 3,104 Increase in operating lease liabilities (b) $ 835 $ 2,905 $ 3,104 Derecognition of investment in unconsolidated entities (c) $ 3,641 $ — $ — Supplemental disclosure of cash activity: Interest payments $ 70,132 $ 74,171 $ 71,888 Income tax payments $ 4,216 $ 3,462 $ 546 Tax refunds received $ — $ 1,078 $ 315 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 214,594 $ 246,715 $ 327,693 Restricted cash 37,234 27,428 14,835 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 251,828 $ 274,143 $ 342,528 (a) On October 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (ASU 2016-02) and related amendments, collectively codified in ASC Topic 842, Leases (ASC 842). Upon adoption of ASC 842, we recorded net operating lease right-of-use (ROU) assets of $13.9 million and operating lease liabilities of $16.0 million. Existing prepaid rent and accrued rent were recorded as an offset to the gross operating lease ROU assets. (b) Represents leases renewed or additional leases commenced during the fiscal years ended September 30, 2022, 2021 and 2020. |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in unconsolidated joint ventures, total equity and outstanding borrowings | The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Investment in unconsolidated entities $ 964 $ 4,464 Total equity of unconsolidated entities $ 1,564 $ 7,316 Total outstanding borrowings of unconsolidated entities $ — $ 12,708 Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Equity in income of unconsolidated entities $ 521 $ 594 $ 347 |
Owned Inventory (Tables)
Owned Inventory (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of inventory | The components of our owned inventory are as follows as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Homes under construction $ 785,742 $ 648,283 Land under development 731,190 648,404 Land held for future development 19,879 19,879 Land held for sale 15,674 9,179 Capitalized interest 109,088 106,985 Model homes 76,292 68,872 Total owned inventory $ 1,737,865 $ 1,501,602 |
Schedule of total inventory by segment | Total owned inventory by reportable segment is presented in the table below as of September 30, 2022 and 2021: in thousands Projects in Progress (a) Land Held for Future Land Held Total Owned September 30, 2022 West $ 934,309 $ 3,483 $ 14,998 $ 952,790 East 313,613 10,888 — 324,501 Southeast 284,424 5,508 676 290,608 Corporate and unallocated (b) 169,966 — — 169,966 Total $ 1,702,312 $ 19,879 $ 15,674 $ 1,737,865 September 30, 2021 West $ 781,036 $ 3,483 $ 4,478 $ 788,997 East 264,991 10,888 584 276,463 Southeast 269,738 5,508 4,117 279,363 Corporate and unallocated (b) 156,779 — — 156,779 Total $ 1,472,544 $ 19,879 $ 9,179 $ 1,501,602 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. |
Schedule of inventory impairments and lot option abandonment charges | The following table presents, by reportable segment, our total impairments and abandonment charges for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Land Held for Sale: West $ 1,303 $ — $ 89 Southeast — — 8 Corporate and unallocated (a) 565 — 1,160 Total impairment charges on land held for sale $ 1,868 $ — $ 1,257 Abandonments: West $ 289 $ — $ 923 East 143 465 82 Southeast 663 388 641 Total abandonments charges $ 1,095 $ 853 $ 1,646 Total impairments and abandonment charges $ 2,963 $ 853 $ 2,903 (a) Amount represents capitalized interest and indirects balance that was impaired. Capitalized interest and indirects are maintained within our Corporate and unallocated segment. |
Interest (Tables)
Interest (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Real Estate Inventory Capitalized Interest Costs [Abstract] | |
Schedule of capitalized interest costs | The following table presents certain information regarding interest for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Capitalized interest in inventory, beginning of period $ 106,985 $ 119,659 $ 136,565 Interest incurred 74,161 77,397 87,224 Capitalized interest impaired (439) — (792) Interest expense not qualified for capitalization and included as other expense (a) — (2,781) (8,468) Capitalized interest amortized to home construction and land sales expenses (b) (71,619) (87,290) (94,870) Capitalized interest in inventory, end of period $ 109,088 $ 106,985 $ 119,659 (a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Depreciation is computed on a straight-line basis based on estimated useful lives as follows: Asset Class Useful Lives Buildings and improvements 25 - 30 years Information systems Lesser of estimated useful life of the asset or 5 years Furniture, fixtures and computer and office equipment 3 - 7 years Model and sales office improvements Lesser of estimated useful life of the asset or estimated life of the community Leasehold improvements Lesser of the lease term or the estimated useful life of the asset The following table presents our property and equipment as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Model furnishings and sales office improvements $ 22,544 $ 19,617 Information systems 23,074 18,628 Furniture, fixtures and office equipment 11,019 10,613 Leasehold improvements 4,124 4,279 Buildings and improvements 1,671 1,671 Property and equipment, gross 62,432 54,808 Less: Accumulated depreciation (37,866) (31,923) Property and equipment, net $ 24,566 $ 22,885 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The Company's debt, net of unamortized debt issuance costs consisted of the following as of September 30, 2022 and 2021: in thousands Maturity Date September 30, 2022 September 30, 2021 Senior Unsecured Term Loan September 2022 $ — $ 50,000 6.750% Senior Notes (2025 Notes) March 2025 211,195 229,555 5.875% Senior Notes (2027 Notes) October 2027 357,255 363,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 Unamortized debt issuance costs (7,280) (8,983) Total Senior Notes, net 911,170 983,827 Junior Subordinated Notes (net of unamortized accretion of $28,503 and $30,570 , respectively) July 2036 72,270 70,203 Secured Revolving Credit Facility February 2024 (a) — — Total debt, net $ 983,440 $ 1,054,030 (a) The Secured Revolving Credit Facility was scheduled to mature in February 2024; however, it was terminated early in conjunction with the Company entering into the new Senior Unsecured Revolving Credit Facility. Refer to below for further discussion. |
Schedule of maturities of long-term debt | As of September 30, 2022, the future maturities of our borrowings were as follows: Fiscal Year Ended September 30, in thousands 2023 $ — 2024 — 2025 211,195 2026 — 2027 357,255 Thereafter 450,773 Total $ 1,019,223 |
Schedule of debt instrument redemption | For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 6.750% 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 5.875% 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. 7.250% Senior Notes September 2019 October 2029 On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of warranty reserves | Changes in warranty reserves are as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Balance at beginning of period $ 12,931 $ 13,052 $ 13,388 Accruals for warranties issued (a) 12,711 10,963 10,910 Changes in liability related to warranties existing in prior periods 382 864 (1,352) Payments made (12,098) (11,948) (9,894) Balance at end of period $ 13,926 $ 12,931 $ 13,052 (a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets measured on a non-recurring basis | These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented: in thousands Level 1 Level 2 Level 3 Total As of September 30, 2022 Deferred compensation plan assets (a) $ — $ 3,179 $ — $ 3,179 Land held for sale (b) — — 902 (c) 902 As of September 30, 2021 Deferred compensation plan assets (a) $ — $ 2,730 $ — $ 2,730 As of September 30, 2020 Deferred compensation plan assets (a) $ — $ 2,339 $ — $ 2,339 Land held for sale (b) — — 6,240 (c) 6,240 (a) Measured at fair value on a recurring basis. (b) Measured at fair value on a non-recurring basis, including the capitalized interest and indirect costs related to the asset. (c) Amount represents the impairment-date fair value of land held for sale assets that were impaired during the period indicated. |
Schedule of carrying values and estimated fair values of other financial assets and liabilities | The following table presents the carrying value and estimated fair value of certain other financial liabilities as of September 30, 2022 and 2021: As of September 30, 2022 As of September 30, 2021 in thousands Carrying (a) Fair Value Carrying (a) Fair Value Senior Notes and Term Loan (b) $ 911,170 $ 753,338 $ 983,827 $ 1,046,965 Junior Subordinated Notes (c) 72,270 72,270 70,203 70,203 Total $ 983,440 $ 825,608 $ 1,054,030 $ 1,117,168 (a) Carrying amounts are net of unamortized debt issuance costs or accretion. (b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease cost | At September 30, 2022 and 2021, weighted-average remaining lease term and discount rate were as follows: Fiscal Year Ended September 30, 2022 2021 Weighted-average remaining lease term 4.3 years 4.8 years Weighted-average discount rate 4.43% 4.56% |
Lessee, operating lease, liability, maturity | The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2022: Fiscal Years Ending September 30, in thousands 2023 $ 3,799 2024 2,688 2025 2,299 2026 1,643 2027 702 Thereafter 1,226 Total lease payments (a) 12,357 Less: imputed interest 1,149 Total operating lease liabilities $ 11,208 (a) Lease payments excludes $11.2 million legally binding minimum lease payments for an office lease signed but not yet commenced as of September 30, 2022. The related ROU asset and operating lease liability are not reflected on the Company's consolidated balance sheet as of September 30, 2022. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Other Liabilities [Abstract] | |
Schedule of other liabilities | Other liabilities include the following as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Accrued compensations and benefits $ 57,781 $ 54,606 Customer deposits 34,270 28,526 Accrued interest 22,723 22,835 Accrued warranty expenses 13,926 12,931 Litigation accruals 9,832 8,325 Income tax liabilities 320 — Other 35,536 25,128 Total $ 174,388 $ 152,351 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Current federal (a) $ — $ — $ (4,641) Current state 4,859 1,126 485 Deferred federal 47,239 20,331 20,639 Deferred state 1,173 89 1,490 Total expense $ 53,271 $ 21,546 $ 17,973 |
Schedule of effective income tax rate reconciliation | The Company's expense (benefit) from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Income tax computed at statutory rate $ 57,538 $ 30,182 $ 14,971 State income taxes, net of federal benefit 4,482 1,564 1,300 Deferred rate change 346 (904) 260 Changes in uncertain tax positions — — (2) Permanent differences 2,952 2,433 2,177 Tax credits (12,081) (12,088) (939) Other, net 34 359 206 Total expense $ 53,271 $ 21,546 $ 17,973 |
Schedule of deferred tax assets and liabilities | The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2022 and 2021 : in thousands September 30, 2022 September 30, 2021 Deferred tax assets: Federal and state net operating loss carryforwards $ 149,299 $ 177,611 Incentive compensation 12,914 13,793 Warranty and other reserves 7,091 6,006 Inventory adjustments 6,716 25,174 Intangible assets 1,515 6,016 Property, equipment and other assets 771 2,085 Uncertain tax positions 705 705 Other 2,743 2,435 Total deferred tax assets 181,754 233,825 Valuation allowance (25,396) (29,059) Deferred tax assets, net $ 156,358 $ 204,766 |
Schedule of unrecognized tax benefits roll forward | A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Balance at beginning of year $ 3,358 $ 3,441 $ 3,473 Additions for tax positions related to current year — — — Additions for tax positions related to prior years — — — Reductions in tax positions of prior years — — — Lapse of statute of limitations — (83) (32) Balance at end of year $ 3,358 $ 3,358 $ 3,441 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of allocation of share-based compensation costs by plan | The following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the fiscal years ended 2022, 2021 and 2020, respectively. Fiscal Year Ended September 30, in thousands 2022 2021 2020 Stock options expense $ 1 $ 25 $ 133 Restricted stock awards expense 8,477 12,142 9,903 Stock-based compensation expense $ 8,478 $ 12,167 $ 10,036 |
Schedule of assumptions for stock option activity | We used the following valuation assumptions for stock options granted for the periods presented: Fiscal Year Ended September 30, 2022 2020 Expected life of options 5.7 years 5.7 years Expected volatility 55.02 % 51.52 % Expected dividends — — Weighted-average risk-free interest rate 1.88 % 0.43 % Weighted-average fair value $ 8.54 $ 4.99 following inputs were used, as applicable, in the Monte Carlo valuation model to determine the fair value as of the grant date for performance-based restricted stock granted in each of the fiscal years ended. Fiscal Year Ended September 30, 2022 2021 2020 Expected volatility range 41.0% - 89.0% 26.1% - 67.0% 21.2% - 54.8% Risk-free interest rate 0.81 % 0.23 % 1.61 % Dividend yield — — — Grant-date stock price range $21.40 - $142.99 $14.07 - $4,318.03 $15.62 - $3,595.17 |
Schedule of stock options activity | A summary of stock option activity for the periods presented is as follows: 2022 2021 2020 Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at beginning of period 114,259 $ 17.89 392,465 $ 15.47 523,754 $ 14.34 Granted 236 16.58 — — 950 10.67 Exercised (988) 11.32 (278,206) 14.48 (128,921) 11.01 Expired (86,000) 19.11 — — — — Forfeited — — — — (3,318) 9.55 Outstanding at end of period 27,507 $ 14.31 114,259 $ 17.89 392,465 $ 15.47 Exercisable at end of period 27,271 $ 14.29 113,309 $ 17.95 354,796 $ 15.90 |
Schedule of stock options exercised and vested | Information pertaining to the intrinsic value of options exercised and the fair market value of options that vested is below: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Intrinsic value of options exercised $ 6 $ 1,402 $ 587 Fair market value of options vested $ 5 $ 173 $ 144 |
Schedule of nonvested stock awards and performance shares | Activity relating to all restricted stock awards for the periods presented is as follows: Year Ended September 30, 2022 Performance-Based (a) Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 738,155 $ 13.45 486,574 $ 13.79 1,224,729 $ 13.59 Granted 269,617 18.98 246,844 21.40 516,461 20.14 Vested (552,417) 10.50 (286,182) 13.21 (838,599) 11.42 Forfeited (19,209) 17.27 (35,194) 16.49 (54,403) 16.77 End of period 436,146 $ 17.76 412,042 $ 18.52 848,188 $ 18.13 (a) Grant and vesting activity during the year ended September 30, 2022 include 177,759 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period. Year Ended September 30, 2021 Performance-Based (a) Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 796,024 $ 14.71 610,130 $ 13.85 1,406,154 $ 14.34 Granted 164,296 17.90 251,788 14.21 416,084 15.67 Vested (222,165) 22.40 (346,856) 14.36 (569,021) 17.50 Forfeited — — (28,488) 11.77 (28,488) 11.77 End of period 738,155 $ 13.45 486,574 $ 13.79 1,224,729 $ 13.59 (a) Grant and vesting activity during the year ended September 30, 2021 include 60,930 shares that were issued above target based on performance level achieved under performance-based restricted stock vesting in the current period. Year Ended September 30, 2020 Performance-Based Time-Based Total Shares Weighted- Shares Weighted- Shares Weighted- Beginning of period 778,814 $ 13.60 611,607 $ 12.11 1,390,421 $ 16.53 Granted 260,131 16.98 327,571 15.29 587,702 16.04 Vested (242,921) 13.60 (302,255) 11.89 (545,176) 12.65 Forfeited — — (26,793) 13.79 (26,793) 13.79 End of period 796,024 $ 14.71 610,130 $ 13.85 1,406,154 $ 14.34 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | Following is a summary of the components of basic and diluted income (loss) per share for the periods presented: Fiscal Year Ended September 30, in thousands (except per share data) 2022 2021 2020 Numerator: Income from continuing operations $ 220,718 $ 122,180 $ 53,316 Loss from discontinued operations, net of tax (14) (159) (1,090) Net income $ 220,704 $ 122,021 $ 52,226 Denominator: Basic weighted-average shares 30,432 29,954 29,704 Dilutive effect of restricted stock awards 357 461 229 Dilutive effect of stock options 7 22 15 Diluted weighted-average shares (a) 30,796 30,437 29,948 Basic income (loss) per share: Continuing operations $ 7.25 $ 4.08 $ 1.80 Discontinued operations — (0.01) (0.04) Total $ 7.25 $ 4.07 $ 1.76 Diluted income (loss) per share: Continuing operations $ 7.17 $ 4.01 $ 1.78 Discontinued operations — — (0.04) Total $ 7.17 $ 4.01 $ 1.74 |
Schedule of antidilutive securities | Fiscal Year Ended September 30, in thousands 2022 2021 2020 Stock options 22 142 375 Time-based restricted stock — — 46 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Revenue West $ 1,331,553 $ 1,118,578 $ 1,183,339 East 560,747 569,835 477,624 Southeast 424,688 451,890 466,114 Total revenue $ 2,316,988 $ 2,140,303 $ 2,127,077 Fiscal Year Ended September 30, in thousands 2022 2021 2020 Operating income West $ 253,961 $ 181,303 $ 161,786 East 102,146 84,630 56,319 Southeast 68,726 57,581 40,746 Segment total 424,833 323,514 258,851 Corporate and unallocated (a) (152,342) (176,645) (179,744) Total operating income $ 272,491 $ 146,869 $ 79,107 (a) Includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. Fiscal Year Ended September 30, in thousands 2022 2021 2020 Depreciation and amortization West $ 8,178 $ 7,250 $ 8,227 East 1,649 2,207 2,458 Southeast 1,843 2,552 2,857 Segment total 11,670 12,009 13,542 Corporate and unallocated (a) 1,690 1,967 2,098 Total depreciation and amortization $ 13,360 $ 13,976 $ 15,640 (a) R epresents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Capital expenditures West $ 7,755 $ 6,924 $ 5,063 East 1,208 1,549 2,237 Southeast 1,215 1,447 2,985 Corporate and unallocated 4,870 4,725 357 Total capital expenditures $ 15,048 $ 14,645 $ 10,642 The following table presents assets by segment as of September 30, 2022 and 2021: in thousands September 30, 2022 September 30, 2021 Assets West $ 995,339 $ 819,317 East 334,323 286,133 Southeast 305,443 296,581 Corporate and unallocated (a) 616,858 676,779 Total assets $ 2,251,963 $ 2,078,810 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of results of discontinued operations | The results of our discontinued operations in the consolidated statements of operations for the periods presented were as follows: Fiscal Year Ended September 30, in thousands 2022 2021 2020 Home construction and land sales expenses (a) $ (5) $ 119 $ 1,245 Gross profit (loss) 5 (119) (1,245) General and administrative expenses 23 85 173 Operating loss (18) (204) (1,418) Other income, net — — 19 Loss from discontinued operations before income taxes (18) (204) (1,399) Benefit from income taxes (4) (45) (309) Loss from discontinued operations, net of tax $ (14) $ (159) $ (1,090) (a) Hom e construction and land sales expenses for the year ended September 30, 2020 include a $1.3 million estimated litigation settlement accrual relating to a case regarding past construction defects in our discontinued operations. Pursuant to the settlement agreement, the Company paid $1.4 million during fiscal 2021. |
Description of Business (Detail
Description of Business (Details) | Sep. 30, 2022 state region |
Description of Business [Abstract] | |
Number of states in which home building segments operate | state | 13 |
Number of regions in which entity operates | region | 3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 USD ($) home | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Threshold number of homes below a minimum threshold of profitability | home | 10 | |||
Measurement threshold of likelihood of being realized (percent) | 50% | |||
Income tax, refund claim | $ 4,600 | |||
Alternative minimum tax credit | $ 4,600 | $ 9,200 | ||
Income tax receivable, alternative minimum tax | 9,200 | |||
Customer deposits | $ 34,270 | $ 28,526 | ||
Contract with customer, liability, revenue recognized | 26,300 | |||
Refunded by buyer | 1,200 | |||
Advertising costs | $ 14,400 | $ 14,000 | $ 15,900 | |
Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated time to develop, sell, construct and close all homes (in years) | 3 years | |||
Estimated future warranty costs as a percentage or revenue (percent) | 0.30% | |||
Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated time to develop, sell, construct and close all homes (in years) | 5 years | |||
Estimated future warranty costs as a percentage or revenue (percent) | 1% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Real Estate Properties [Line Items] | ||
Deposits & Non-refundable Pre-acquisition Costs Incurred | $ 142,433 | $ 114,688 |
Remaining Obligation, Net of Cash Deposits | $ 827,600 | $ 676,149 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Buildings and improvements | Minimum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 25 years |
Buildings and improvements | Maximum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 30 years |
Information systems | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 5 years |
Furniture, fixtures and computer and office equipment | Minimum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Furniture, fixtures and computer and office equipment | Maximum | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life | 7 years |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | $ 2,316,988 | $ 2,140,303 | $ 2,127,077 |
Homebuilding revenue | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | 2,302,520 | 2,127,700 | 2,116,910 |
Land sales and other revenue | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total revenue | $ 14,468 | $ 12,603 | $ 10,167 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 01, 2019 | |
Supplemental disclosure of non-cash activity: | ||||
Operating lease right-of-use assets | $ 9,795 | $ 12,344 | ||
Operating lease liabilities | 11,208 | 14,154 | ||
Increase in operating leases right-of-use assets | 835 | 2,905 | $ 3,104 | |
Increase in operating leases liabilities | 835 | 2,905 | 3,104 | |
Supplemental disclosure of cash activity: | ||||
Interest payments | 70,132 | 74,171 | 71,888 | |
Income tax payments | 4,216 | 3,462 | 546 | |
Tax refunds received | 0 | 1,078 | 315 | |
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 214,594 | 246,715 | 327,693 | |
Restricted cash | 37,234 | 27,428 | 14,835 | |
Cash, Cash Equivalents, and Restricted Cash | 251,828 | 274,143 | 342,528 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Supplemental disclosure of non-cash activity: | ||||
Derecognition of investment in unconsolidated entities | 3,641 | 0 | 0 | |
Accounting Standards Update 2016-02 | ||||
Supplemental disclosure of non-cash activity: | ||||
Operating lease right-of-use assets | 0 | 0 | 13,895 | $ 13,900 |
Operating lease liabilities | $ 0 | $ 0 | $ 16,028 | $ 16,000 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Unconsolidated Entities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated entities | $ 964 | $ 4,464 | ||
Total equity of unconsolidated entities | 939,286 | 724,884 | $ 593,171 | $ 538,754 |
Total outstanding borrowings of unconsolidated entities | 0 | 12,708 | ||
Equity in income of unconsolidated entities | 521 | 594 | $ 347 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total equity of unconsolidated entities | $ 1,564 | $ 7,316 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities - Narrative (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | May 19, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Impairment of unconsolidated entity investment | $ 0 | $ 0 | $ 0 | |
Imagine Homes | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 33% | |||
Financial Guarantee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Outstanding guarantees | $ 0 | $ 0 |
Owned Inventory - Schedule of I
Owned Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Real Estate [Abstract] | ||||
Homes under construction | $ 785,742 | $ 648,283 | ||
Land under development | 731,190 | 648,404 | ||
Land held for future development | 19,879 | 19,879 | ||
Land held for sale | 15,674 | 9,179 | ||
Capitalized interest | 109,088 | 106,985 | $ 119,659 | $ 136,565 |
Model homes | 76,292 | 68,872 | ||
Total owned inventory | $ 1,737,865 | $ 1,501,602 |
Owned Inventory - Narrative (De
Owned Inventory - Narrative (Details) | 12 Months Ended | ||
Sep. 30, 2022 USD ($) community home | Sep. 30, 2021 USD ($) home | Sep. 30, 2020 USD ($) community | |
Segment Reporting Information [Line Items] | |||
Number of homes under construction | home | 2,688 | 2,912 | |
Number of homes under construction, spec homes | home | 887 | 576 | |
Total, spec homes | $ 246,500,000 | $ 116,400,000 | |
Number of homes under construction, in-process spec homes | home | 793 | 542 | |
In-process spec homes | $ 208,700,000 | $ 105,200,000 | |
Number of homes under construction, finished spec homes | home | 94 | 34 | |
Finished spec homes | $ 37,800,000 | $ 11,200,000 | |
Threshold number of homes below a minimum threshold of profitability | home | 10 | ||
Impairment of projects in process | $ 0 | 0 | $ 0 |
Land held for sale | 1,900,000 | 0 | $ 1,300,000 |
Number of communities | community | 2 | ||
Abandonments | $ 1,095,000 | $ 853,000 | $ 1,646,000 |
West | |||
Segment Reporting Information [Line Items] | |||
Number of communities | community | 2 | 1 | |
Southeast | |||
Segment Reporting Information [Line Items] | |||
Number of communities | community | 1 |
Owned Inventory - Total Owned I
Owned Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Segment Reporting Information [Line Items] | ||
Projects in Progress | $ 1,702,312 | $ 1,472,544 |
Land Held for Future Development | 19,879 | 19,879 |
Land Held for Sale | 15,674 | 9,179 |
Total owned inventory | 1,737,865 | 1,501,602 |
Corporate and unallocated | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 169,966 | 156,779 |
Land Held for Future Development | 0 | 0 |
Land Held for Sale | 0 | 0 |
Total owned inventory | 169,966 | 156,779 |
West | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 934,309 | 781,036 |
Land Held for Future Development | 3,483 | 3,483 |
Land Held for Sale | 14,998 | 4,478 |
Total owned inventory | 952,790 | 788,997 |
East | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 313,613 | 264,991 |
Land Held for Future Development | 10,888 | 10,888 |
Land Held for Sale | 0 | 584 |
Total owned inventory | 324,501 | 276,463 |
Southeast | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 284,424 | 269,738 |
Land Held for Future Development | 5,508 | 5,508 |
Land Held for Sale | 676 | 4,117 |
Total owned inventory | $ 290,608 | $ 279,363 |
Owned Inventory - Inventory Imp
Owned Inventory - Inventory Impairments and Lot Option Abandonment Charges, by Reportable Segment (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Real Estate, Write-down or Reserve [Line Items] | |||
Land held for sale | $ 1,900,000 | $ 0 | $ 1,300,000 |
Abandonments | 1,095,000 | 853,000 | 1,646,000 |
Total impairments and abandonment charges | 2,963,000 | 853,000 | 2,903,000 |
West | Operating Segments | |||
Real Estate, Write-down or Reserve [Line Items] | |||
Abandonments | 289,000 | 0 | 923,000 |
East | Operating Segments | |||
Real Estate, Write-down or Reserve [Line Items] | |||
Abandonments | 143,000 | 465,000 | 82,000 |
Southeast | Operating Segments | |||
Real Estate, Write-down or Reserve [Line Items] | |||
Abandonments | 663,000 | 388,000 | 641,000 |
Continuing Operations | |||
Real Estate, Write-down or Reserve [Line Items] | |||
Land held for sale | 1,868,000 | 0 | 1,257,000 |
Continuing Operations | Corporate and unallocated | |||
Real Estate, Write-down or Reserve [Line Items] | |||
Land held for sale | 565,000 | 0 | 1,160,000 |
Continuing Operations | West | |||
Real Estate, Write-down or Reserve [Line Items] | |||
Land held for sale | 1,303,000 | 0 | 89,000 |
Continuing Operations | Southeast | |||
Real Estate, Write-down or Reserve [Line Items] | |||
Land held for sale | $ 0 | $ 0 | $ 8,000 |
Interest (Details)
Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Capitalized interest in inventory, beginning of period | $ 106,985 | $ 119,659 | $ 136,565 |
Interest incurred | 74,161 | 77,397 | 87,224 |
Capitalized interest impaired | (439) | 0 | (792) |
Interest expense not qualified for capitalization and included as other expense | 0 | (2,781) | (8,468) |
Capitalized interest amortized to home construction and land sales expenses | (71,619) | (87,290) | (94,870) |
Capitalized interest in inventory, end of period | $ 109,088 | $ 106,985 | $ 119,659 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 62,432 | $ 54,808 |
Less: Accumulated depreciation | (37,866) | (31,923) |
Property and equipment, net | 24,566 | 22,885 |
Model furnishings and sales office improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,544 | 19,617 |
Information systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 23,074 | 18,628 |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,019 | 10,613 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,124 | 4,279 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,671 | $ 1,671 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (7,280,000) | $ (8,983,000) |
Total debt, net | 983,440,000 | 1,054,030,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Secured Revolving Credit Facility | 0 | 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Unsecured Term Loan | 0 | 50,000,000 |
Unamortized debt issuance costs | (7,280,000) | (8,983,000) |
Total debt, net | 911,170,000 | 983,827,000 |
Junior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Total debt, net | 72,270,000 | 70,203,000 |
Unamortized discount | 28,503,000 | 30,570,000 |
6.750% Senior Notes (2025 Notes) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt, net | $ 211,195,000 | 229,555,000 |
Stated interest rate on debt instrument | 6.75% | |
5.875% Senior Notes (2027 Notes) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt, net | $ 357,255,000 | 363,255,000 |
Stated interest rate on debt instrument | 5.875% | |
7.250% Senior Notes (2029 Notes) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt, net | $ 350,000,000 | $ 350,000,000 |
Stated interest rate on debt instrument | 7.25% | |
Junior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount | $ 28,500,000 |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Debt Maturities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 211,195 |
2026 | 0 |
2027 | 357,255 |
Thereafter | 450,773 |
Total | $ 1,019,223 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Oct. 13, 2022 | Jun. 01, 2022 | Jun. 01, 2012 | Jan. 31, 2010 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | |||||||
Gain (loss) on extinguishment of debt, net | $ 309,000 | $ (2,025,000) | $ 0 | ||||
Senior Notes | 5.875% Senior Notes (2027 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Repurchased senior debt | 6,000,000 | 30,700,000 | 0 | ||||
Gain (loss) on extinguishment of debt, net | 300,000 | (2,000,000) | $ 0 | ||||
Senior Notes | 6.750% Senior Notes (2025 Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Repurchased senior debt | 18,400,000 | ||||||
Junior Subordinated Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principle balance of notes | $ 100,800,000 | ||||||
Weighted average fixed interest rate of debt (percent) | 5.23% | ||||||
Unamortized discount | $ 28,500,000 | ||||||
Junior Subordinated Debt, Modified Terms | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of debt | $ 75,000,000 | ||||||
Redemption price percentage | 75% | ||||||
Annual increase of percentage of principal amount redeemable | 1.785% | ||||||
Junior Subordinated Debt, Modified Terms | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate floor | 4.25% | ||||||
Variable rate cap | 9.25% | ||||||
Junior Subordinated Debt, Original Terms | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of debt | $ 25,800,000 | ||||||
Junior Subordinated Debt, Original Terms | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.45% | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||
Secured Revolving Credit Facility | 0 | 0 | |||||
Letters of credit secured using cash collateral | 5,500,000 | 0 | |||||
Line of credit facility, remaining borrowing capacity | 244,500,000 | 244,500,000 | |||||
Collateral amount | 1,060,000,000 | ||||||
Revolving Credit Facility | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 265,000,000 | ||||||
Line of credit facility, increase to size of the commitments | 135,000,000 | ||||||
Revolving Credit Facility | Subsequent Event | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Letters of credit secured using cash collateral | 29,700,000 | 21,800,000 | |||||
Collateral amount | $ 31,500,000 | $ 22,300,000 |
Borrowings - Schedule of Debt R
Borrowings - Schedule of Debt Redemption (Details) | 12 Months Ended |
Sep. 30, 2022 | |
6.750% Senior Notes (2025 Notes) | Senior Notes | |
Debt Instrument, Redemption [Line Items] | |
Stated interest rate on debt instrument | 6.75% |
5.875% Senior Notes (2027 Notes) | Senior Notes | |
Debt Instrument, Redemption [Line Items] | |
Stated interest rate on debt instrument | 5.875% |
7.250% Senior Notes (2029 Notes) | Senior Notes | |
Debt Instrument, Redemption [Line Items] | |
Stated interest rate on debt instrument | 7.25% |
Senior Notes | 6.750% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period One | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 100% |
Senior Notes | 6.750% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period Two | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 105.063% |
Senior Notes | 6.750% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period Three | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 103.375% |
Senior Notes | 6.750% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period Four | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 101.688% |
Senior Notes | 6.750% Senior Notes (2025 Notes) | Debt Instrument, Redemption, Period Five | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 100% |
Senior Notes | 5.875% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period One | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 100% |
Senior Notes | 5.875% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period Two | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 102.938% |
Senior Notes | 5.875% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period Three | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 101.958% |
Senior Notes | 5.875% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period Four | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 100.979% |
Senior Notes | 5.875% Senior Notes (2027 Notes) | Debt Instrument, Redemption, Period Five | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 100% |
Senior Notes | 7.250% Senior Notes (2029 Notes) | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 107.25% |
Percentage of principal amount redeemed | 35% |
Percentage of principal amount outstanding after redemption | 65% |
Senior Notes | 7.250% Senior Notes (2029 Notes) | Debt Instrument, Redemption, Period One | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 100% |
Senior Notes | 7.250% Senior Notes (2029 Notes) | Debt Instrument, Redemption, Period Two | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 103.625% |
Senior Notes | 7.250% Senior Notes (2029 Notes) | Debt Instrument, Redemption, Period Three | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 102.417% |
Senior Notes | 7.250% Senior Notes (2029 Notes) | Debt Instrument, Redemption, Period Four | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 101.208% |
Senior Notes | 7.250% Senior Notes (2029 Notes) | Debt Instrument, Redemption, Period Five | |
Debt Instrument, Redemption [Line Items] | |
Redemption price percentage | 100% |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Standard product warranty length, minimum | 1 year | |
Standard product warranty length, maximum | 2 years | |
Limited product warranty length (up to) | 10 years | |
Legal Reserve | ||
Loss Contingencies [Line Items] | ||
Accrued amounts for litigation and other contingent liabilities | $ 9.8 | $ 8.3 |
Performance Bonds | ||
Loss Contingencies [Line Items] | ||
Letters of credit secured using cash collateral | 35.2 | |
Outstanding performance bonds | $ 279.6 |
Contingencies - Warranty (Detai
Contingencies - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 12,931 | $ 13,052 | $ 13,388 |
Accruals for warranties issued | 12,711 | 10,963 | 10,910 |
Changes in liability related to warranties existing in prior periods | 382 | 864 | (1,352) |
Payments made | (12,098) | (11,948) | (9,894) |
Balance at end of period | $ 13,926 | $ 12,931 | $ 13,052 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |||
Impairment of projects in process | $ 0 | $ 0 | $ 0 |
Impairment of land held for sale | $ 1,900,000 | $ 0 | $ 1,300,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on a Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | $ 3,179 | $ 2,730 | $ 2,339 |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | 3,179 | 2,730 | 2,339 |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | 0 | $ 0 | 0 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land held for sale | 902 | 6,240 | |
Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land held for sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land held for sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Land held for sale | $ 902 | $ 6,240 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes and Term Loan | $ 911,170 | $ 983,827 |
Junior Subordinated Notes | 72,270 | 70,203 |
Total debt, net | 983,440 | 1,054,030 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes and Term Loan | 753,338 | 1,046,965 |
Junior Subordinated Notes | 72,270 | 70,203 |
Total debt, net | $ 825,608 | $ 1,117,168 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | |||
Operating lease expense | $ 4 | $ 4.3 | $ 4.5 |
Operating lease payments | $ 4.4 | $ 4.8 | $ 4.6 |
Operating Leases - Weighted-Ave
Operating Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 4 years 3 months 18 days | 4 years 9 months 18 days |
Weighted-average discount rate | 4.43% | 4.56% |
Operating Leases - Lease Maturi
Operating Leases - Lease Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2023 | $ 3,799 | |
2024 | 2,688 | |
2025 | 2,299 | |
2026 | 1,643 | |
2027 | 702 | |
Thereafter | 1,226 | |
Total lease payments | 12,357 | |
Less: imputed interest | 1,149 | |
Operating lease liabilities | 11,208 | $ 14,154 |
Liabilities for leases that have not yet commenced | $ 11,200 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Other Liabilities [Abstract] | ||||
Accrued compensations and benefits | $ 57,781 | $ 54,606 | ||
Customer deposits | 34,270 | 28,526 | ||
Accrued interest | 22,723 | 22,835 | ||
Accrued warranty expenses | 13,926 | 12,931 | $ 13,052 | $ 13,388 |
Litigation accruals | 9,832 | 8,325 | ||
Income tax liabilities | 320 | 0 | ||
Other | 35,536 | 25,128 | ||
Total | $ 174,388 | $ 152,351 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current federal | $ 0 | $ 0 | $ (4,641) |
Current state | 4,859 | 1,126 | 485 |
Deferred federal | 47,239 | 20,331 | 20,639 |
Deferred state | 1,173 | 89 | 1,490 |
Total expense | $ 53,271 | $ 21,546 | $ 17,973 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax computed at statutory rate | $ 57,538 | $ 30,182 | $ 14,971 |
State income taxes, net of federal benefit | 4,482 | 1,564 | 1,300 |
Deferred rate change | 346 | (904) | 260 |
Changes in uncertain tax positions | 0 | 0 | (2) |
Permanent differences | 2,952 | 2,433 | 2,177 |
Tax credits | (12,081) | (12,088) | (939) |
Other, net | 34 | 359 | 206 |
Total expense | $ 53,271 | $ 21,546 | $ 17,973 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred tax assets: | ||
Federal and state net operating loss carryforwards | $ 149,299 | $ 177,611 |
Incentive compensation | 12,914 | 13,793 |
Warranty and other reserves | 7,091 | 6,006 |
Inventory adjustments | 6,716 | 25,174 |
Intangible assets | 1,515 | 6,016 |
Property, equipment and other assets | 771 | 2,085 |
Uncertain tax positions | 705 | 705 |
Other | 2,743 | 2,435 |
Total deferred tax assets | 181,754 | 233,825 |
Valuation allowance | (25,396) | (29,059) |
Deferred tax assets, net | $ 156,358 | $ 204,766 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Tax Credit Carryforward [Line Items] | ||||
Federal net operating loss carryforwards | $ 61,000 | |||
Federal and state net operating loss carryforwards | 149,299 | $ 177,611 | ||
State net operating loss carryforwards | 33,900 | |||
Valuation allowance | (25,396) | (29,059) | ||
Pre-tax income required to realize deferred tax assets prior to expiration | 907,100 | |||
Unrecognized tax benefits | 3,358 | $ 3,358 | $ 3,441 | $ 3,473 |
Federal tax authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal and state net operating loss carryforwards | $ 57,800 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 3,358 | $ 3,441 | $ 3,473 |
Additions for tax positions related to current year | 0 | 0 | 0 |
Additions for tax positions related to prior years | 0 | 0 | 0 |
Reductions in tax positions of prior years | 0 | 0 | 0 |
Lapse of statute of limitations | 0 | (83) | (32) |
Balance at end of year | $ 3,358 | $ 3,358 | $ 3,441 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | May 31, 2022 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||||||
Preferred stock outstanding (in shares) | 0 | |||||
Common stock authorized (in shares) | 63,000,000 | 63,000,000 | ||||
Common stock issued (in shares) | 30,880,138 | 31,294,198 | ||||
Common stock outstanding (in shares) | 30,880,138 | 31,294,198 | ||||
Authorized amount repurchase of common stock | $ 50,000,000 | $ 50,000,000 | ||||
Remaining availability repurchase amount | $ 41,800,000 | $ 12,000,000 | ||||
Share repurchases (in shares) | 570,000 | 362,000 | ||||
Aggregate repurchased value | $ 8,154,000 | $ 0 | $ 3,327,000 | |||
Shares repurchased, average price per share (in usd per share) | $ 14.33 | $ 9.20 | ||||
Dividends paid | $ 0 | $ 0 | $ 0 | |||
382 ownership limitation | 4.95% |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plan - 401(k) Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution percentage | 50% | ||
Percentage of maximum contributions per employee | 6% | ||
Contribution vesting period | 5 years | ||
Employer contribution amount | $ 3.5 | $ 3.2 | $ 3.4 |
Total matching contributions forfeited by plan participants during period | $ 0.3 | $ 0.8 | $ 1 |
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee deferral or contribution | 1% | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee deferral or contribution | 80% |
Retirement and Deferred Compe_3
Retirement and Deferred Compensation Plan - Deferred Compensation Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued compensations and benefits | $ 57,781 | $ 54,606 | |
Deferred Compensation Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation plan assets | 3,200 | 2,700 | |
Accrued compensations and benefits | 5,500 | 7,200 | |
Employer contribution to deferred compensation plan | $ 200 | $ 200 | $ 200 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | 36 Months Ended | 60 Months Ended | |||
Nov. 30, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares of common stock reserved for issuance under plan (in shares) | 1,500,000 | 1,500,000 | 1,500,000 | ||||
Number of shares of common stock available for future grants (in shares) | 1,500,000 | 1,500,000 | 1,500,000 | ||||
Intrinsic value of stock options outstanding | $ 0.1 | $ 0.1 | $ 0.1 | ||||
Intrinsic value of stock options exercisable | $ 0.1 | $ 0.1 | $ 0.1 | ||||
Granted (in shares) | 236 | 0 | |||||
ESOP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options available under ESOP (in shares) | 100,000 | 100,000 | 100,000 | ||||
Granted (in shares) | 31,968 | ||||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | |||
Weighted average period to recognize remaining cost | 1 year 4 months 24 days | ||||||
Granted (in shares) | 236 | 0 | 950 | ||||
Stock options | 2014 Plan and the 2010 Equity Incentive Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Stock options | 2014 Plan and the 2010 Equity Incentive Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Stock options | ESOP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 7.3 | $ 7.2 | $ 7.3 | $ 7.3 | |||
Weighted average period to recognize remaining cost | 1 year 8 months 12 days | ||||||
Estimated fair value of nonvested stock (in dollars per share) | $ 20.14 | $ 15.67 | $ 16.04 | ||||
Performance share awards to be vested (in shares) | 848,188 | 1,224,729 | 1,406,154 | 848,188 | 848,188 | 1,390,421 | |
Performance-based restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Stock awards granted in period (in shares) | 91,858 | ||||||
Estimated fair value of nonvested stock (in dollars per share) | $ 18.98 | $ 17.90 | $ 16.98 | ||||
Performance share awards to be vested (in shares) | 436,146 | 738,155 | 796,024 | 436,146 | 436,146 | 778,814 | |
Performance-based restricted stock | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payout percentage | 0% | ||||||
Performance-based restricted stock | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payout percentage | 175% | ||||||
Performance-based restricted stock | 2020 Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Unrecognized compensation cost | $ 0.3 | $ 0.3 | $ 0.3 | ||||
Performance share awards to be vested (in shares) | 334,736 | 334,736 | 334,736 | ||||
Compensation cost related to performance based awards | $ 2.1 | $ 3.3 | $ 1.3 | $ 7 | |||
Performance-based restricted stock | 2017 Performance-Based Award Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance based restricted stock settled in cash payment (in shares) | 135,337 | ||||||
Cash settlement of performance-based restricted stock | $ 2.1 | ||||||
Total Shareholder Return Performance Share | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Payout percentage | 20% | ||||||
Estimated fair value of nonvested stock (in dollars per share) | $ 23.36 | ||||||
Time-based restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Stock awards granted in period (in shares) | 246,844 | ||||||
Estimated fair value of nonvested stock (in dollars per share) | $ 21.40 | $ 14.21 | $ 15.29 | ||||
Performance share awards to be vested (in shares) | 412,042 | 486,574 | 610,130 | 412,042 | 412,042 | 611,607 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Compensation Cost for Share-based Payment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 8,478 | $ 12,167 | $ 10,036 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1 | 25 | 133 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 8,477 | $ 12,142 | $ 9,903 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Assumptions for Stock Options Granted (Details) - Stock options - $ / shares | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of options (in years) | 5 years 8 months 12 days | 5 years 8 months 12 days |
Expected volatility (percentage) | 55.02% | 51.52% |
Expected dividends | 0% | 0% |
Weighted-average risk-free interest rate | 1.88% | 0.43% |
Weighted average fair value (in dollars per share) | $ 8.54 | $ 4.99 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock Options Activity (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Shares | |||
Granted (in shares) | 236 | 0 | |
Employee Stock Option | |||
Shares | |||
Outstanding at beginning of period (in shares) | 114,259 | 392,465 | 523,754 |
Granted (in shares) | 236 | 0 | 950 |
Exercised (in shares) | (988) | (278,206) | (128,921) |
Expired (in shares) | (86,000) | 0 | 0 |
Forfeited (in shares) | 0 | 0 | (3,318) |
Outstanding at end of period (in shares) | 27,507 | 114,259 | 392,465 |
Exercisable at end of period (in shares) | 27,271 | 113,309 | 354,796 |
Weighted- Average Exercise Price | |||
Outstanding at beginning or period (in dollars per share) | $ 17.89 | $ 15.47 | $ 14.34 |
Granted (in dollars per share) | 16.58 | 0 | 10.67 |
Exercised (in dollars per share) | 11.32 | 14.48 | 11.01 |
Expired (in dollars per share) | 19.11 | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 | 9.55 |
Outstanding at end of period (in dollars per share) | 14.31 | 17.89 | 15.47 |
Exercisable at end of period (in dollars per share) | $ 14.29 | $ 17.95 | $ 15.90 |
Stock-Based Compensation - Intr
Stock-Based Compensation - Intrinsic and Fair Market Value of Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 6 | $ 1,402 | $ 587 |
Fair market value of options vested | $ 5 | $ 173 | $ 144 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - Performance-based restricted stock - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum (percentage) | 41% | 26.10% | 21.20% |
Expected volatility, maximum (percentage) | 89% | 67% | 54.80% |
Risk-free interest rate (percentage) | 0.81% | 0.23% | 1.61% |
Dividend yield | 0% | 0% | 0% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant-date stock price (in dollars per share) | $ 21.40 | $ 14.07 | $ 15.62 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant-date stock price (in dollars per share) | $ 142.99 | $ 4,318.03 | $ 3,595.17 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Nonvested Stock Awards and Performance Shares (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restricted Stock | |||
Shares | |||
Beginning of period (in shares) | 1,224,729 | 1,406,154 | 1,390,421 |
Granted (in shares) | 516,461 | 416,084 | 587,702 |
Vested (in shares) | (838,599) | (569,021) | (545,176) |
Forfeited (in shares) | (54,403) | (28,488) | (26,793) |
End of period (in shares) | 848,188 | 1,224,729 | 1,406,154 |
Weighted- Average Grant Date Fair Value | |||
Beginning of period (in dollars per share) | $ 13.59 | $ 14.34 | $ 16.53 |
Granted (in dollars per share) | 20.14 | 15.67 | 16.04 |
Vested (in dollars per share) | 11.42 | 17.50 | 12.65 |
Forfeited (in dollars per share) | 16.77 | 11.77 | 13.79 |
End of period (in dollars per share) | $ 18.13 | $ 13.59 | $ 14.34 |
Performance-based restricted stock | |||
Shares | |||
Beginning of period (in shares) | 738,155 | 796,024 | 778,814 |
Granted (in shares) | 269,617 | 164,296 | 260,131 |
Vested (in shares) | (552,417) | (222,165) | (242,921) |
Forfeited (in shares) | (19,209) | 0 | 0 |
End of period (in shares) | 436,146 | 738,155 | 796,024 |
Weighted- Average Grant Date Fair Value | |||
Beginning of period (in dollars per share) | $ 13.45 | $ 14.71 | $ 13.60 |
Granted (in dollars per share) | 18.98 | 17.90 | 16.98 |
Vested (in dollars per share) | 10.50 | 22.40 | 13.60 |
Forfeited (in dollars per share) | 17.27 | 0 | 0 |
End of period (in dollars per share) | $ 17.76 | $ 13.45 | $ 14.71 |
Granted and vested in period (in shares) | 177,759 | 60,930 | |
Time-based restricted stock | |||
Shares | |||
Beginning of period (in shares) | 486,574 | 610,130 | 611,607 |
Granted (in shares) | 246,844 | 251,788 | 327,571 |
Vested (in shares) | (286,182) | (346,856) | (302,255) |
Forfeited (in shares) | (35,194) | (28,488) | (26,793) |
End of period (in shares) | 412,042 | 486,574 | 610,130 |
Weighted- Average Grant Date Fair Value | |||
Beginning of period (in dollars per share) | $ 13.79 | $ 13.85 | $ 12.11 |
Granted (in dollars per share) | 21.40 | 14.21 | 15.29 |
Vested (in dollars per share) | 13.21 | 14.36 | 11.89 |
Forfeited (in dollars per share) | 16.49 | 11.77 | 13.79 |
End of period (in dollars per share) | $ 18.52 | $ 13.79 | $ 13.85 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Dilutive (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | |||
Income from continuing operations | $ 220,718 | $ 122,180 | $ 53,316 |
Loss from discontinued operations, net of tax | (14) | (159) | (1,090) |
Net income | $ 220,704 | $ 122,021 | $ 52,226 |
Denominator: | |||
Basic weighted-average shares (in shares) | 30,432 | 29,954 | 29,704 |
Dilutive effect of restricted stock awards (in shares) | 357 | 461 | 229 |
Dilutive effect of stock options (in shares) | 7 | 22 | 15 |
Diluted weighted-average shares (in shares) | 30,796 | 30,437 | 29,948 |
Basic income (loss) per share: | |||
Continuing operations (in dollars per share) | $ 7.25 | $ 4.08 | $ 1.80 |
Discontinued operations (in dollars per share) | 0 | (0.01) | (0.04) |
Total (in dollars per share) | 7.25 | 4.07 | 1.76 |
Diluted income (loss) per share: | |||
Continuing operations (in dollars per share) | 7.17 | 4.01 | 1.78 |
Discontinued operations (in dollars per share) | 0 | 0 | (0.04) |
Total (in dollars per share) | $ 7.17 | $ 4.01 | $ 1.74 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 22 | 142 | 375 |
Time-based restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 46 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 USD ($) segment state region | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | May 19, 2022 | |
Segment Reporting [Abstract] | ||||
Number of states with active operations | state | 13 | |||
Number of regions in which entity operates | region | 3 | |||
Number of homebuilding segments | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 2,316,988 | $ 2,140,303 | $ 2,127,077 | |
Total operating income | 272,491 | 146,869 | 79,107 | |
Depreciation and amortization | 13,360 | 13,976 | 15,640 | |
Capital expenditures | 15,048 | 14,645 | 10,642 | |
Assets | 2,251,963 | 2,078,810 | ||
Imagine Homes | ||||
Segment Reporting [Abstract] | ||||
Equity method investment, ownership percentage | 33% | |||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income | 424,833 | 323,514 | 258,851 | |
Depreciation and amortization | 11,670 | 12,009 | 13,542 | |
Corporate and unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income | (152,342) | (176,645) | (179,744) | |
Depreciation and amortization | 1,690 | 1,967 | 2,098 | |
Capital expenditures | 4,870 | 4,725 | 357 | |
Assets | 616,858 | 676,779 | ||
West | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,331,553 | 1,118,578 | 1,183,339 | |
West | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income | 253,961 | 181,303 | 161,786 | |
Depreciation and amortization | 8,178 | 7,250 | 8,227 | |
Capital expenditures | 7,755 | 6,924 | 5,063 | |
Assets | 995,339 | 819,317 | ||
East | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 560,747 | 569,835 | 477,624 | |
East | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income | 102,146 | 84,630 | 56,319 | |
Depreciation and amortization | 1,649 | 2,207 | 2,458 | |
Capital expenditures | 1,208 | 1,549 | 2,237 | |
Assets | 334,323 | 286,133 | ||
Southeast | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 424,688 | 451,890 | 466,114 | |
Southeast | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income | 68,726 | 57,581 | 40,746 | |
Depreciation and amortization | 1,843 | 2,552 | 2,857 | |
Capital expenditures | 1,215 | 1,447 | $ 2,985 | |
Assets | $ 305,443 | $ 296,581 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss from discontinued operations, net of tax | $ (14) | $ (159) | $ (1,090) |
Litigation settlement accrual | 1,300 | ||
Litigation settlement expense | 1,400 | ||
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Home construction and land sales expenses | (5) | 119 | 1,245 |
Gross profit (loss) | 5 | (119) | (1,245) |
General and administrative expenses | 23 | 85 | 173 |
Operating loss | (18) | (204) | (1,418) |
Other income, net | 0 | 0 | 19 |
Loss from discontinued operations before income taxes | (18) | (204) | (1,399) |
Benefit from income taxes | (4) | (45) | (309) |
Loss from discontinued operations, net of tax | $ (14) | $ (159) | $ (1,090) |