Contract Land Deposits

As of September 30, 2012, NVR controlled approximately 50,000 lots under purchase agreements with deposits in cash and letters of credit totaling approximately $243,200 and $2,800, respectively. At December 31, 2011, NVR controlled approximately 48,200 lots under purchase agreements with deposits in cash and letters of credit totaling approximately $202,300 and $3,200, respectively. During the three and nine month periods ended September 30, 2012, the Company recognized a net pre-tax charge of approximately $900 related to the impairment of contract land deposits and a net pre-tax recovery of approximately $200 of contract land deposits previously determined to be uncollectible, respectively. During the three and nine month periods ended September 30, 2011, the Company recognized a net pre-tax charge of approximately $2,700 and $6,800, respectively, related to the impairment of contract land deposits. The contract land deposit asset is shown net of an approximate $69,800 and $70,300 impairment valuation allowance at September 30, 2012 and December 31, 2011, respectively.