Inventories

Inventories Owned

Inventories owned consisted of the following at:

	June 30, 2016
	North		Southeast		Southwest		West		Total
	(Dollars in thousands)

Land and land under development	$	431,593	$	1,148,920	$	646,487	$	1,213,809	$	3,440,809
Homes completed and under construction		316,444		551,177		663,894		936,496		2,468,011
Model homes		73,860		133,947		111,944		193,166		512,917
Total inventories owned	$	821,897	$	1,834,044	$	1,422,325	$	2,343,471	$	6,421,737

	December 31, 2015
	North		Southeast		Southwest		West		Total
	(Dollars in thousands)

Land and land under development	$	370,584	$	1,169,350	$	687,792	$	1,318,563	$	3,546,289
Homes completed and under construction		266,967		464,668		599,183		708,779		2,039,597
Model homes		66,100		119,283		113,549		185,141		484,073
Total inventories owned	$	703,651	$	1,753,301	$	1,400,524	$	2,212,483	$	6,069,959

In accordance with ASC Topic 360,

Property, Plant, and Equipment

("ASC 360"), we record impairment losses on inventories when events and circumstances indicate that they may be impaired, and the future undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. Inventories that are determined to be impaired are written down to their estimated fair value. We calculate the fair value of a project under a land residual value analysis and in certain cases in conjunction with a discounted cash flow analysis. As of June 30, 2016 and 2015, the total active and future projects that we owned were 876 and 381, respectively. During the six months ended June 30, 2016 and 2015, we reviewed all projects for indicators of impairment and based on our review we did not record any inventory impairments during these periods.

b. Inventories Not Owned

Inventories not owned consisted of the following at:

	June 30, 2016		December 31, 2015
	(Dollars in thousands)

Land purchase and lot option deposits	$	81,050	$	82,693
Other lot option contracts, net of deposits		553		553
Total inventories not owned	$	81,603	$	83,246

Under ASC Topic 810,

Consolidation

("ASC 810"), a non-refundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur. Our land purchase and lot option deposits generally represent our maximum exposure to the land seller if we elect not to purchase the optioned property. In some instances, we may also expend funds for due diligence, development and construction activities with respect to optioned land prior to takedown. Such costs are classified as inventories owned, which we would have to write-off should we not exercise the option. Therefore, whenever we enter into a land option or purchase contract with an entity and make a non-refundable deposit, a variable interest entity ("VIE") may have been created. In accordance with ASC 810, we perform ongoing reassessments of whether we are the primary beneficiary of a VIE.

Other lot option contracts as of June 30, 2016 and December 31, 2015 represented purchase price allocated to lot option contracts assumed in connection with a business acquisition during the 2013 third quarter.