Valuation Adjustments and Write-offs

The Company assesses inventory for recoverability on a quarterly basis, by reviewing for impairment whenever events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable.

A summary of the Company’s valuation adjustments and write-offs for the three and nine months ended September 30, 2011 and 2010 is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2011		2010		2011		2010
Impairment of operating communities:
Midwest	$	962	$	141	$	3,944	$	276
Southern	594		72		2,459		583
Mid-Atlantic	—		110		17		3,086
Total impairment of operating communities (a)	$	1,556	$	323	$	6,420	$	3,945
Impairment of future communities:
Midwest	$	141	$	—	$	6,519	$	2,837
Southern	—		1,473		3,455		3,134
Mid-Atlantic	—		—		—		1,290
Total impairment of future communities (a)	$	141	$	1,473	$	9,974	$	7,261
Impairment of land held for sale:
Midwest	$	—	$	—	$	—	$	—
Southern	—		—		590		—
Mid-Atlantic	—		—		—		—
Total impairment of land held for sale (a)	$	—	$	—	$	590	$	—
Option deposits and pre-acquisition costs write-offs:
Midwest	$	121	$	5	$	143	$	94
Southern	19		94		56		95
Mid-Atlantic	—		41		241		208
Total option deposits and pre-acquisition costs write-offs (b)	$	140	$	140	$	440	$	397
Impairment of investments in Unconsolidated LLCs:
Midwest	$	—	$	—	$	979	$	—
Southern	—		—		50		—
Mid-Atlantic	—		—		—		—
Total impairment of investments in Unconsolidated LLCs (a)	$	—	$	—	$	1,029	$	—

Total impairments and write-offs of option deposits and
pre-acquisition costs	$	1,837	$	1,936	$	18,453	$	11,603


(a)	Amounts are recorded within Impairment of inventory and investment in Unconsolidated LLCs in the Company's Unaudited Condensed Consolidated Statements of Operations.


(b)	Amounts are recorded within General and administrative expenses in the Company's Unaudited Condensed Consolidated Statements of Operations.