Note 7 - Inventories

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

7.             Inventories

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

	December 31,		December 31,
	2014		2013
	(Dollars in thousands)
Housing Completed or Under Construction:
West	$	343,134	$	270,778
Mountain		220,489		194,101
East		169,069		171,821
Subtotal		732,692		636,700
Land and Land Under Development:
West		507,252		459,512
Mountain		277,583		211,526
East		150,433		103,923
Subtotal		935,268		774,961
Total Inventories	$	1,667,960	$	1,411,661

In accordance with 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 and the discussion below 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, 2014, 2013 and 2012 are shown in the table below:

	Year Ended December 31,
	2014		2013		2012
	(Dollars in thousands)
Housing Completed or Under Construction:
West	$	-	$	-	$	-
Mountain		234		-		-
East		1,000		802		295
Subtotal		1,234		802		295
Land and Land Under Development:
West		-		-		-
Mountain		526		-		-
East		-		117		810
Subtotal		526		117		810
Total Inventories	$	1,760	$	919	$	1,105

During the year ended December 31, 2014, we recorded $1.8 million of inventory impairments related to four projects; three in our Maryland division in our East segment and one in our Colorado division in our Mountain segment. During the year ended December 31, 2013, we recorded $0.9 million of inventory impairments related to three projects in Maryland. During the year ended December 31, 2012, we recorded $1.1 million of inventory impairments related to two projects in Maryland. These communities were all impaired based on their slow sales absorption rates experienced during each of 2014, 2013 and 2012 as well as the estimated or actual sales price reductions required to sell the remaining lots and houses.

For the years ended December 31, 2014, 2013 and 2012, we used discount rates ranging from 10% to 18% for the subdivisions that were impaired.