BEAZER HOMES USA INCBZH
BEAZER HOMES USA INC Fair Value Disclosure
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. The fair value of assets deemed to be impaired is determined based upon the type of asset being evaluated. The fair value of our owned inventory assets, when required to be calculated, is further discussed within Notes 2 and 4. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3.
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 for each hierarchy level:
| in thousands | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| As of September 30, 2025 | |||||||||||||||||||||||
Deferred compensation plan assets(a) | $ | 8,661 | $ | — | $ | — | $ | 8,661 | |||||||||||||||
| As of September 30, 2024 | |||||||||||||||||||||||
Deferred compensation plan assets(a) | $ | 8,115 | $ | — | $ | — | $ | 8,115 | |||||||||||||||
| As of September 30, 2023 | |||||||||||||||||||||||
Deferred compensation plan assets(a) | $ | 6,495 | $ | — | $ | — | $ | 6,495 | |||||||||||||||
(a) Amount is included in other assets within the consolidated balance sheets.
The fair value of cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, and amounts due under the Unsecured 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 assets and liabilities as of September 30, 2025 and 2024:
| As of September 30, 2025 | As of September 30, 2024 | ||||||||||||||||||||||
| in thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
| Financial assets | |||||||||||||||||||||||
Certificates of deposit(a) | $ | — | $ | — | $ | 9,449 | $ | 9,584 | |||||||||||||||
| Total financial assets | $ | — | $ | — | $ | 9,449 | $ | 9,584 | |||||||||||||||
Financial liabilities(b) | |||||||||||||||||||||||
Senior Notes(c) | $ | 950,644 | $ | 968,634 | $ | 948,945 | $ | 976,494 | |||||||||||||||
Junior Subordinated Notes(d) | 78,470 | 78,470 | 76,404 | 76,404 | |||||||||||||||||||
| Total financial liabilities | $ | 1,029,114 | $ | 1,047,104 | $ | 1,025,349 | $ | 1,052,898 | |||||||||||||||
(a) Certificates of deposit held for investment with an original maturity greater than three months are carried at original cost plus accrued interest and reported as other assets on the condensed consolidated balance sheets. The type of certificates of deposit that the Company invests in are not considered debt securities under ASC Topic 320, Investments - Debt Securities. The estimated fair value of our certificates of deposit has been determined using quoted market rates (Level 2).
(b) Carrying amounts for financial liabilities are net of unamortized debt issuance costs or accretion.
(c) The estimated fair value of our publicly-held Senior Notes has been determined using quoted market rates (Level 2).
(d) 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.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 13, 2025 | Showing above |
| 2024 | Nov 13, 2024 | |
| 2023 | Nov 16, 2023 | |
| 2022 | Nov 10, 2022 | |
| 2021 | Nov 10, 2021 | |
| 2020 | Nov 12, 2020 | |
| 2019 | Nov 13, 2019 | |
| 2018 | Nov 13, 2018 | |
| 2017 | Nov 14, 2017 | |
| 2016 | Nov 15, 2016 | |
| 2015 | Nov 10, 2015 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.