6.	Inventories

The following table sets forth, by reportable segment, information relating to our homebuilding inventories:


	December 31,
	2012		2011
	(Dollars in thousands)
Housing Completed or Under Construction:
West	$	200,858	$	121,343
Mountain		183,522		80,964
East		128,569		98,407

Subtotal		512,949		300,714

Land and Land Under Development:
West		230,344		199,941
Mountain		137,221		164,961
East		122,007		140,436

Subtotal		489,572		505,338

Total Inventories	$	1,002,521	$	806,052

In accordance with ASC 360, Property, Plant and Equipment (“ASC 360”), homebuilding inventories are carried at cost unless events and circumstances indicate that the carrying value of the underlying subdivision may not be recoverable. We evaluate inventories for impairment at each quarter end. Please see “Inventories” in Note 1 for more detail on the methods and assumptions that were used to estimate the fair value of our inventories.

Inventory impairments recognized by segment for the years ended December 31, 2012, 2011 and 2010 are shown in the table below:


	Year Ended December 31,
	2012		2011		2010
	(Dollars in thousands)
Housing Completed or Under Construction:
West	$	-	$	7,270	$	14,808
Mountain		-		1,850		555
East		295		1,804		542

Subtotal		295		10,924		15,905

Land and Land Under Development:
West		-		1,499		3,163
Mountain		-		449		964
East		810		93		1,163

Subtotal		810		2,041		5,290

Inventory Impairments	$	1,105	$	12,965	$	21,195

During the year ended December 31, 2012, we recorded $1.1 million of inventory impairments related to two projects in our Maryland division. Based on the slow sales absorption rates experienced during 2012 and the estimated sales price reductions required to sell the remaining lots and houses in these communities, it was determined that the fair values were less than the carrying values.

During the year ended December 31, 2011, we recorded $13.0 million of asset impairments. These impairments primarily were incurred during the 2011 second and third quarters in select subdivisions primarily in the California and Nevada markets of our West segment, and the Utah market of our Mountain segment. The impairment of these specific subdivisions, most of which were purchased during 2010, primarily resulted from lowering anticipated home sales prices from those that were expected at the time we purchased the land, based on our experience with homes sold or closed in these subdivisions.

During the year ended December 31, 2010, we recorded $21.2 million of impairments. The impairments were concentrated in the Arizona and Nevada markets of our West segment and primarily resulted from lowering our estimated average selling prices of homes. This was primarily due to: (1) strong competition for sales of new homes; (2) overall low economic activity combined with high unemployment levels; (3) homebuyers having difficulty qualifying for new loans; and (4) the elevated levels of foreclosures and short sales of homes driving real estate values down.

For the years ended December 31, 2012, 2011 and 2010, we used discount rates generally ranging from 13% to 18% for the subdivisions that were impaired.