0000039677
2011-06-30
0000039677
2010-12-31
0000039677
2011-01-01
2011-06-30
0000039677
2010-01-01
2010-06-30
0000039677
2011-04-01
2011-06-30
0000039677
2010-04-01
2010-06-30
0000039677
2009-12-31
0000039677
2010-06-30
0000039677
2011-07-31
iso4217:USD
iso4217:USD
xbrli:shares
xbrli:shares
306512000
305672000
3248000
-32000
-14097000
-168000
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0
146036000
115502000
217132000
160266000
1908000
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33627000
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252000
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Commitments and Contingencies</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We are involved in various pending litigation matters primarily arising in the normal course of our business. These cases are in various procedural stages. Although the outcome of these matters cannot be determined, Avatar believes it is probable in accordance with ASC 450-20, <font style="display: inline; font-style: italic;">Loss Contingencies</font>,<font style="display: inline; font-style: italic;"> </font>that certain claims may result in costs and expenses estimated at approximately $44 and $165, which have been accrued in the accompanying consolidated balance sheets as of June 30, 2011 and December 31, 2010, respectively<font style="display: inline; font-style: italic;">. </font>Liabilities or costs arising out of these and other currently pending litigation is not expected to have a material adverse effect on our business, consolidated financial position or results of operations.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Performance bonds, issued by third party entities, are used primarily to guarantee our performance to construct improvements in our various communities. As of June 30, 2011, we had outstanding performance bonds of approximately $2,248. We do not believe that it is likely any of these outstanding performance bonds will be drawn upon.</font></div></div>
50000000
50000000
15364489
15562732
15365000
15563000
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Comprehensive Loss</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Net loss and comprehensive loss are the same for the six months ended June 30, 2011 and 2010.</font></div></div>
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Notes, Mortgage Notes and Other Debt</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-style: italic; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">4.50% Convertible Senior Notes</font></font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">On March 30, 2004, we issued $120,000 aggregate principal amount of 4.50% Convertible Senior Notes due 2024 (the 4.50% Notes) in a private offering. Interest is payable semiannually on April 1 and October 1. The 4.50% Notes are senior, unsecured obligations and rank equal in right of payment to all of our existing and future unsecured and senior indebtedness. However, the 4.50% Notes are effectively subordinated to all of our existing and future secured debt to the extent of the collateral securing such indebtedness, and to all existing and future liabilities of our subsidiaries.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Each $1 in principal amount of the 4.50% Notes is convertible, at the option of the holder, at a conversion price of $52.63, or 19.0006 shares of our common stock, upon the satisfaction of one of the following conditions: a) during any calendar quarter (but only during such calendar quarter) commencing after June 30, 2004 if the closing sale price of our common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is more than 120% of the conversion price per share of common stock on such last day; or b) during the five business day period after any five-consecutive-trading-day period in which the trading price per $1 principal amount of the 4.50% Notes for each day of that period was less than 98% of the product of the closing sale price for our common stock for each day of that period and the number of shares of common stock issuable upon conversion of $1 principal amount of the 4.50% Notes, provided that if on the date of any such conversion that is on or after April 1, 2019, the closing sale price of Avatar's common stock is greater than the conversion price, then holders will receive, in lieu of common stock based on the conversion price, cash or common stock or a combination thereof, at our option, with a value equal to the principal amount of the 4.50% Notes plus accrued and unpaid interest, as of the conversion date.  During the first, second and third quarters of 2007, the 4.50% Notes were convertible; and $200 principal amount were converted into 3,800 shares of Avatar's common stock. During 2007, Avatar repurchased $5,000 principal amount of the 4.50% Notes; during 2008, we repurchased $35,920 principal amount; and during 2009, we repurchased $14,076 principal amount. On February 4, 2011, we purchased $17,765 principal amount of the 4.50% Notes which was accounted for as an extinguishment of debt in accordance with ASC 470-20. As of April 1, 2011, holders of $41,637 principal amount exercised their rights to require us to repurchase.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Holders may require us to repurchase the 4.50% Notes for cash on April 1, 2011, April 1, 2014 and April 1, 2019; or in certain circumstances involving a designated event, as defined in the indenture for the 4.50% Notes, holders may require us to purchase all or a portion of their 4.50% Notes. We may, at our option, redeem for cash all or a portion of the 4.50% Notes at any time on or after April 5, 2011. In each case, we will pay a repurchase price equal to 100% of their principal amount, plus accrued and unpaid interest, if any. On April 1, 2011, holders of $41,637 principal amount of the 4.50% Notes exercised their right to require us to repurchase the 4.50% Notes. As of June 30, 2011, $5,402 principal amount of the 4.50% Notes remained outstanding.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Financial Accounting Standards Board (“FASB”) ASC Subtopic 470-20, <font style="display: inline; font-style: italic;">Debt with Conversion Options – Cash Conversion </font>(“ASC 470-20”), requires the issuer of certain convertible debt instruments that may be settled in cash on conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's nonconvertible debt borrowing rate. ASC 470-20 requires bifurcation of the instrument into a debt component that is initially recorded at fair value and an equity component. The difference between the fair value of the debt component and the initial proceeds from issuance of the instrument is recorded as a component of equity.  The excess of the principal amount of the liability component over its carrying amount and the debt issuance costs are amortized to interest cost using the interest method over the expected life of a similar liability that does not have an associated equity component. ASC 470-20 applies to the 4.50% Notes, however bifurcation of the 7.50% Notes (described below) is not required since the instrument does not have a cash settlement option upon conversion.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The discount on the liability component of the 4.50% Notes was amortized using the effective interest method based on an effective rate of 7.5%, which was the estimated market interest rate for similar debt without a conversion option on the issuance date. The discount was amortized from the issuance date in 2004 through April 1, 2011, the first date that holders of the 4.50% Notes could require us to repurchase the 4.50% Notes. We recognized $293 and $0 in non-cash interest charges related to the amortization of the discount during the six and three months ended June 30, 2011, <font style="display: inline; font-size: 10pt; font-family: Times New Roman;">respectively. We recognized $718 and $359 in non-cash interest charges related to the amortization of the discount during the six and three months ended June 30, 2010, respectively.</font></font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-style: italic; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">JEN Transaction Notes</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">In conjunction with the JEN Transaction, we entered into two separate note payable agreements with JEN. Each note is for $6,000 bearing interest at 6% with maturity dates of October 25, 2011 and October 25, 2012. On May 6, 2011, we made a principal payment of $1,529 on the note which matures on October 25, 2011. As of June 30, 2011, $10,471 principal amount of these notes remained outstanding.</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-style: italic; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">7.50% Senior Convertible Notes</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">On January 31, 2011, Avatar and Avatar Properties Inc. (“API”), entered into an Underwriting Agreement (the “Underwriting Agreement”) with Barclays Capital Inc. (the “Underwriter”). Pursuant to the Underwriting Agreement, Avatar agreed to issue and sell to the Underwriter, and the Underwriter agreed to purchase for sale in an underwritten public offering, $100,000 aggregate principal amount of 7.50% Senior Convertible Notes due 2016 (the “7.50% Notes”). The 7.50% Notes were sold to the Underwriter at 95.75% of the principal amount of the 7.50% Notes, and were sold to the public at a purchase price of 100% of the principal amount of the 7.50% Notes, plus accrued interest, if any, from February 4, 2011.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The Underwriting Agreement includes customary representations, warranties, conditions to closing, and covenants. The Underwriting Agreement also provides for customary indemnification by each of Avatar, API and the Underwriter against certain liabilities. The 7.50% Notes are governed by a Base Indenture and Supplemental Indenture (in each case, as defined below), the principal terms of which are discussed below.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The sale of the 7.50% Notes was registered pursuant to a Registration Statement on Form S-3 (No. 333-161498), filed by Avatar with the Securities and Exchange Commission on August 21, 2009 (the “Registration Statement”). Net proceeds to Avatar from the sale of the 7.50% Notes was approximately $95,373 after deducting the Underwriter's discount of 4.25% and expenses of $377. Avatar intends to use the proceeds from the sale of the 7.50% Notes for general corporate purposes, including, without limitation, the repayment of debt, including Avatar's 4.50% Convertible Senior Notes due 2024 (the “4.50% Notes”), which notes may be put to Avatar pursuant to the terms thereof on each of April 1, 2011, April 1, 2014, and April 1, 2019, or called by Avatar at any time on or after April 5, 2011, and potential new acquisitions of real estate and real estate-related assets. On February 4, 2011, we purchased $17,765 principal amount of the 4.50% Notes which was accounted for as an extinguishment of debt in accordance with ASC 470-20. As of April 1, 2011, holders of $41,637 principal amount exercised their rights to require us to repurchase.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The 7.50% Notes are governed by a base indenture (the “Base Indenture”) and first supplemental indenture (the “Supplemental Indenture,” and together with the Base Indenture, the “Indenture”), both dated as of February 4, 2011, between Avatar and Wilmington Trust FSB, as trustee, and include the following terms:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">Interest</font>: Interest on the 7.50% Notes is 7.50% per year, payable semi-annually in arrears in cash on February 15 and August 15 of each year, beginning on August 15, 2011.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">Conversion</font>: Holders may convert the 7.50% Notes into shares of Avatar's common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date. The 7.50% Notes are convertible at an initial conversion rate of 33.3333 shares of common stock per $1 principal amount of the 7.50% Notes (equivalent to an initial conversion price of approximately $30.00 per share). The conversion rate, and thus the conversion price, may be adjusted under certain circumstances, including upon the occurrence of a “non-stock change of control” as such term is defined in the Indenture. Upon any conversion, subject to certain exceptions, holders will not receive any cash payment representing accrued and unpaid interest.</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">Financial covenants</font>: The Indenture includes the following financial covenants:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 45pt;"><div><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  </font></div></td><td style="width: 18pt;"><div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-size: 10pt; font-family: Symbol, serif;">·</font></font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">until February 15, 2014, Avatar will maintain, at all times, cash and cash equivalents of not less than $20,000;</font></div></td></tr></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 45pt;"><div><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  </font></div></td><td style="width: 18pt;"><div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-size: 10pt; font-family: Symbol, serif;">·</font></font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">until the second anniversary of the original issuance date of the 7.50% Notes, Avatar's total consolidated indebtedness (as “indebtedness” is defined in the Indenture) may not exceed $150,000 at any time;</font></div></td></tr></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 45pt;"><div><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  </font></div></td><td style="width: 18pt;"><div style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-family: Symbol, serif;">·</font></font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-size: 10pt;">until the second anniversary of the original issuance date of the 7.50% Notes, Avatar's total consolidated indebtedness (as “indebtedness” is defined in the Indenture) shall not exceed $50,000 at any time, excluding for purposes of this covenant: (a) the 7.50% Notes and (b) any indebtedness with a maturity date after February 15, 2014, which indebtedness does not provide the holder with a unilateral put right prior to February 15, 2014.</font></font></div></td></tr></table></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">Repurchase Right: </font>Holders of the 7.50% Notes have the right to require Avatar to repurchase the Notes on February 15, 2014; or upon the occurrence of a breach of any of the financial covenants, a “fundamental change” (as defined in the Indenture), or an event of default (as described in the Indenture).</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">Redemption Right</font>: Avatar may, at any time on or after February 15, 2014, at its option, redeem for cash all or any portion of the outstanding 7.50% Notes, but only if the last reported sale price of Avatar's common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day before the date Avatar provides the notice of redemption to holders exceeds 130% of the conversion price in effect on each such trading day and certain other conditions described in the Indenture are met.</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-style: italic; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Real Estate</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">As of June 30, 2011, we have approximately $174 outstanding from secured obligations related to the JEN Transaction. We had a $3,000 construction loan facility with Mutual of Omaha bearing interest at prime plus 2% with a minimum floor of 5.50% which matured on May 12, 2011. On May 12, 2011, we modified this construction loan facility capacity to $6,000 bearing interest at prime plus 2% with a minimum floor of 5.50% which matures on May 12, 2012. As of June 30, 2011, the interest rate on this facility was 5.50%. As of June 30, 2011, $114 was outstanding.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The following table represents interest incurred, interest capitalized, and interest expense for the six and three months ended June 30, 2011 and 2010:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="center"><table cellpadding="0" cellspacing="0" width="90%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" width="42%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" colspan="6" valign="bottom" width="22%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Six Months</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" colspan="6" valign="bottom" width="22%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Three Months</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom" width="42%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 0pt; text-indent: 27pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 0pt; text-indent: 27pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="42%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Interest incurred</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5,011</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,219</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2,492</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,528</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="42%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Interest capitalized</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(218</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(57</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(130</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(42</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="42%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Interest expense</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">4,793</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" valign="bottom" width="1%" style="border-bottom: black 4px double;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,162</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2,362</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 4px double;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,486</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We made interest payments of $1,491 and $2,114 during the six months ended June 30, 2011 and 2010, respectively.</font></div></div>
4627000
0
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Cash and Cash Equivalents</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt; text-align: justify;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We consider all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents. We also consider closing proceeds from our house closings held by our title insurance agency as cash equivalents which were $0 and $725 as of June 30, 2011 and December 31, 2010, respectively. As of June 30, 2011, our cash and cash equivalents were invested primarily in money market accounts that invest in U.S. government securities. Due to the short maturity period of the cash equivalents, the carrying amount of these instruments approximates their fair values.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Restricted cash includes deposits of $8,380 and $8,422 as of June 30, 2011 and December 31, 2010, respectively. The balance as of June 30, 2011 is comprised primarily of $7,669 on deposit with Wells Fargo, N.A. to collateralize outstanding letters of credit and $711 of housing deposits from customers that will become available when the housing contracts close. We held escrow funds of $192 and $100 as of June 30, 2011 and December 31, 2010, respectively, which are not considered assets of ours and, therefore, are excluded from restricted cash in the accompanying consolidated balance sheets.</font></div></div>
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Reclassifications</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Certain 2010 financial statement items have been reclassified to conform to the 2011 presentation.</font></div></div>
15000
-207000
143000
-117000
643000
580000
211000
0
0
0
-6750000
-7845000
-3349000
-3762000
14097000
168000
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Income Taxes</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Income tax receivable as of June 30, 2011 and December 31, 2010 consists of $1,766 in income tax refunds.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Income taxes have been provided using the liability method under ASC 740, <font style="display: inline; font-style: italic;">Income Taxes </font>(“ASC 740”).  The liability method is used in accounting for income taxes where deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. In accordance with ASC 740, Avatar evaluates its deferred tax assets quarterly to determine if valuation allowances are required. ASC 740 requires that companies assess whether valuation allowances should be established based on the consideration of all available evidence using a “more likely than not” standard. During 2008, we established a valuation allowance against our deferred tax assets. Our cumulative loss position over the evaluation period and the uncertain and volatile market conditions provided significant evidence supporting the need for a valuation allowance. During the six months ended June 30, 2011 we recognized an increase of $10,271 in the valuation allowance. As of June 30, 2011, our deferred tax asset valuation allowance was $32,793. In future periods, the allowance could be reduced based on sufficient evidence indicating that it is more likely than not that a portion of our deferred tax assets will be realized.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">On October 25, 2010, we received notification from the Internal Revenue Service that our federal income tax returns for tax years 2004, 2005, 2006 and 2009 are being examined. At this time it is not determinable as to the outcome of their examination as the IRS is in the preliminary stages of its review.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">In 2006, we closed on substantially all of the land sold under the threat of condemnation, and in 2007 we closed on the remainder. We believe these transactions entitled us to defer the payment of income taxes of $24,355 from the gain on these sales. During October 2009, we received from the Internal Revenue Service a final extension until December 31, 2010 to obtain replacement property to defer the entire payment of income taxes. As a result of the property acquisitions during 2009 and 2010 including the JEN Transaction, we believe the properties acquired will satisfy the required replacement property; however, we are uncertain as to the final determination. If it is determined that we have not acquired a sufficient amount of replacement property, we may be required to make an income tax payment plus interest on the portion determined not to have been replaced as of December 31, 2010.</font></div></div>
1766000
1766000
42000
-22381000
17215000
17215000
-4793000
-3162000
-2362000
-1486000
300000
254000
132000
132000
8452000
8452000
312617000
326710000
1961000
5194000
155572000
114962000
559876000
545451000
279000
444000
<div><div align="left" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Non-controlling Interest</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Avatar has consolidated certain LLCs, which qualify as variable interest entities (“VIEs”) because we determined that Avatar is the primary beneficiary. Therefore, the LLCs' financial statements are consolidated in Avatar's consolidated financial statements and the other partners' equity in each of the LLCs is recorded as non-controlling interest as a component of consolidated stockholders' equity.  At June 30, 2011 and December 31, 2010, non-controlling interest was $279 and $444, respectively. The decrease in non-controlling interest of $255 is a result of the losses generated from these LLCs.</font></div></div>
34115000
-55881000
-35000
-100000
-3546000
-885000
-26623000
-15879000
-16526000
-5743000
30534000
-56866000
40578000
26925000
28366000
17302000
100000000
0
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Warranty Costs</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Warranty reserves for houses are established to cover estimated costs for materials and labor with regard to warranty-type claims to be incurred subsequent to the closing of a house. Reserves are determined based on historical data and other relevant factors. We may have recourse against subcontractors for claims relating to workmanship and materials. Warranty reserves are included in Accrued and Other Liabilities in the consolidated balance sheets.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">During the six and three months ended June 30, 2011 and 2010 changes in the warranty reserve consisted of the following:</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="center"><table cellpadding="0" cellspacing="0" width="90%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" width="42%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" colspan="6" valign="bottom" width="22%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Six Months</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" colspan="6" valign="bottom" width="22%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Three Months</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom" width="42%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 27pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 27pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="42%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Accrued warranty reserve, beginning of period</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">477</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">458</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">451</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">397</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="42%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Estimated warranty expense</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">171</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">257</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">97</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">174</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="42%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Amounts charged against warranty reserve</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(226</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(231</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(126</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 2px solid;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(87</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="42%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Accrued warranty reserve, end of period</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">422</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 4px double;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">484</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">422</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="border-bottom: black 4px double;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">484</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr></table></div></div>
44870000
45514000
0
82000
35000
48000
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Estimated Development Liability for Sold Land</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The estimated development liability consists primarily of utilities improvements in Poinciana and Rio Rico for more than 8,000 homesites previously sold and is summarized as follows:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="center"><table cellpadding="0" cellspacing="0" width="90%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" width="66%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">June 30,</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">December 31,</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom" width="66%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Gross estimated unexpended costs</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">26,173</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">26,197</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Less costs relating to unsold homesites</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(5,957</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(5,909</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="66%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Estimated development liability for sold land</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">20,216</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">20,288</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The estimated development liability for sold land is reduced by actual expenditures and is evaluated and adjusted, as appropriate, to reflect management's estimate of anticipated costs.  In addition, we obtain quarterly third-party engineer evaluations and adjust this liability to reflect changes in the estimated costs. We recorded charges associated with these obligations of $0 during both the six and three months ended June 30, 2011 and 2010. Future increases or decreases of costs for construction, material and labor as well as other land development and utilities infrastructure costs may have a significant effect on the estimated development liability.</font></div></div>
39978000
25938000
28201000
16496000
1856000
55881000
59402000
0
161197000
187820000
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Land and Other Inventories</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Land and Other Inventories are stated at cost unless the asset is determined to be impaired, in which case the asset would be written down to its fair value.  Land and Other Inventories include expenditures for land acquisition, construction, land development and direct and allocated costs. Land and Other Inventories owned and constructed by us also include interest cost capitalized until development and construction are substantially completed. Land and development costs, construction and direct and allocated costs are assigned to components of Land and Other Inventories based on specific identification or other allocation methods based upon United States generally accepted accounting principles.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">In accordance with ASC 360-10, <font style="display: inline; font-style: italic;">Property, Plant and Equipment </font>(“ASC 360-10”)<font style="display: inline; font-style: italic;"> </font>we review our Land and Other Inventories for indicators of impairment.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">For assets held and used, if indicators are present, we perform an impairment test in which the asset is reviewed for impairment by comparing the estimated future undiscounted cash flows to be generated by the asset to its carrying value. If such cash flows are less than the asset's carrying value, the carrying value is written down to its estimated fair value.  Generally, fair value is determined by discounting the estimated cash flows at a rate commensurate with the inherent risks associated with the asset and related estimated cash flow streams. The discount rate used in the determination of fair value would range between 15-25% depending on the stage of development. Assumptions and estimates used in the determination of the estimated future cash flows are based on expectations of future operations and economic conditions and certain factors described below. Changes to these assumptions could significantly affect the estimates of future cash flows which could affect the potential for future impairments. Due to the uncertainties of the estimation process, actual results could differ significantly from such estimates.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">For assets held for sale (such as homes completed or under construction), we perform an impairment test in which the asset is reviewed for impairment by comparing the fair value (estimated sales price) less cost to sell the asset to its carrying value. If such fair value less cost to sell is less than the asset's carrying value, the carrying value is written down to its estimated fair value less cost to sell.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We evaluate our Land and Other Inventories for impairment on a quarterly basis. During the six and three months ended June 30, 2011, our impairment assessment resulted in impairment charges of $14,097 and $13,800, respectively, which included approximately $997 and $700, respectively, in impairment charges related to homes completed or under construction and approximately $13,100 in impairment charges for land developed and/or held for future development or sale. During the six and three months ended June 30, 2010, our impairment assessment resulted in impairment charges of $168 and $0, respectively, which related to homes completed or under construction. Reduced interest from potential buyers during the second quarter of 2011 resulted in impairment charges for property located in Central Florida. As of June 30, 2011, other than the Land and Other Inventories that we determined to be impaired, we had no long-lived assets that had undiscounted cash flows within 25% of their carrying values.</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Land and Other Inventories that are subject to a review for indicators of impairment include our: (i) housing communities (active adult and primary residential, including scattered lots) and (ii) land developed and/or held for future development or sale. A discussion of the factors that impact our impairment assessment for these categories follows:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic; text-decoration: underline;">Housing communities:</font> Activities include the development of active adult and primary residential communities and the operation of amenities. The operating results and losses generated from active adult and primary residential communities during the six months ended June 30, 2011 and 2010 include operating expenses relating to the operation of the amenities in our communities as well as divisional overhead allocated among several communities.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Our active adult and primary residential communities are generally large master-planned communities in Florida and in Arizona. Several of these communities are long term projects on land we have owned for many years. In reviewing each of our communities, we determine if potential impairment indicators exist by reviewing actual contribution margins on homes closed in recent months, projected contribution margins on homes in backlog, projected contribution margins on speculative homes, average selling prices, sales activities and local market conditions. If indicators are present, the asset is reviewed for impairment.  In determining estimated future cash flows for purposes of the impairment test, the estimated future cash flows are significantly impacted by specific community factors such as: (i) sales absorption rates; (ii) estimated sales prices and sales incentives; and (iii) estimated cost of home construction, estimated land development costs, interest costs, indirect construction and overhead costs, and selling and marketing costs. In addition, our estimated future cash flows are also impacted by general economic and local market conditions, competition from other homebuilders, foreclosures and depressed home sales in the areas in which we build and sell homes, product desirability in our local markets and the buyers' ability to obtain mortgage financing. Except for those primary residential communities acquired in conjunction with a portfolio of real estate assets in Arizona and Florida acquired during October 2010 (the “JEN Transaction), build-out of our active adult and primary residential communities generally exceeds five years. Our current assumptions are based on current activity and recent trends at our active adult and primary residential communities.  There are a significant number of assumptions with respect to each analysis. Many of these assumptions extend over a significant number of years.  The substantial number of variables to these assumptions could significantly affect the potential for future impairments.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="left" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Declines in contribution margins below those realized from our current sales prices and estimations could result in future impairment losses in one or more of our housing communities.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic; text-decoration: underline;">Land developed and/or held for future development or sale</font><font style="display: inline; text-decoration: underline;">:</font> Our land developed and/or held for future development or sale represents land holdings for the potential development of future active adult and/or primary residential communities. For land developed and/or held for future development or sale, indicators of potential impairment include changes in use, changes in local market conditions, declines in the selling prices of similar assets and increases in costs. If indicators are present, the asset is reviewed for impairment. In determining estimated future cash flows for purposes of the impairment test, the estimated future cash flows are significantly impacted by specific community factors such as: (i) sales absorption rates; (ii) estimated sales prices and sales incentives; and (iii) estimated costs of home construction, estimated land and land development costs, interest costs, indirect construction and overhead costs, and selling and marketing costs. In addition, our estimated future cash flows are also impacted by general economic and local market conditions, competition from other homebuilders, foreclosures and depressed home sales in the areas where we own land for future development, product desirability in our local markets and the buyers' ability to obtain mortgage financing. Factors that we consider in determining the appropriateness of moving forward with land development or whether to write-off the related amounts capitalized include: our current inventory levels, local market economic conditions, availability of adequate resources and the estimated future net cash flows to be generated from the project. Except for those primary residential communities acquired in the JEN Transaction, build-out of our active adult and primary residential communities generally exceeds five years. There are a significant number of assumptions with respect to each analysis. Many of these assumptions extend over a significant number of years. The substantial number of variables to these assumptions could significantly affect the potential for future impairments.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Declines in market values below those realized from our current sales prices and estimations could result in future impairment.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Land and Other Inventories consist of the following:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="center"><table cellpadding="0" cellspacing="0" width="90%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" width="66%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">June 30,</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">December 31,</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom" width="66%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Land developed and in process of development</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">164,653</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">166,569</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Land held for future development or sale</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">120,813</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">134,347</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Homes completed or under construction</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">26,796</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">24,320</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Other</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">355</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,474</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="66%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">312,617</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">326,710</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">See “Financial Information Relating to Reportable Segments” below.</font></div></div>
285000
612000
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Financial Information Relating To Reportable Segments</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The following table summarizes Avatar's information for reportable segments for the six and three months ended June 30, 2011 and 2010:</font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"> </div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Six Months</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Three Months</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td align="left" valign="bottom" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman; text-decoration: underline;"><font style="display: inline;">Revenues:</font></font></div></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Segment revenues</font></div></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Active adult communities</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">17,273</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">17,053</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">9,467</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">12,375</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Primary residential</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">6,938</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">8,315</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,283</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,693</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Commercial and industrial and other land sales</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">15,065</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">23</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">15,065</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">23</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Other operations</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">702</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">599</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">391</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">408</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">39,978</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">25,990</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">28,206</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">16,499</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Unallocated revenues</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Interest income</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">300</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">254</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">132</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">132</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Other</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">300</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">681</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">28</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">671</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Total revenues</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">40,578</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">26,925</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">28,366</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">17,302</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td valign="bottom" width="52%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman; text-decoration: underline;"><font style="display: inline;">Operating </font><font style="display: inline;">income (loss):</font></font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Segment operating income (loss)</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Active adult communities</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(5,450</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(1,478</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(3,112</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">535</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Primary residential</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(2,214</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(2,503</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(979</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(861</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Commercial and industrial and other land sales</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">6,817</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(27</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">6,817</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">10</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Other operations</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">113</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">270</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">70</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">279</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(734</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(3,738</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2,796</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(37</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Unallocated income (expenses):</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Interest income</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">300</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">254</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">132</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">132</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Loss on repurchase of 4.50% Notes</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(211</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Equity earnings (losses) from unconsolidated entities</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">15</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(207</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">143</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(117</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Net loss attributable to non-controlling interests</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">255</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">272</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">128</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">139</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">General and administrative expenses</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(6,750</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(7,845</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(3,349</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(3,762</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Interest expense</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(4,793</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(3,162</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(2,362</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(1,486</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Other real estate expenses</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(1,605</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(1,453</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(914</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(612</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Impairment of land developed or held for future development</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(13,100</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(13,100</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Loss before income taxes</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(26,623</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(15,879</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(16,526</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(5,743</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr></table></div></div>
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Variable Interest Entities</font></font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">GAAP requires a variable interest entity (“VIE”) to be consolidated with a company which is the primary beneficiary. The primary beneficiary of a VIE is the entity that has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Entities determined to be VIEs, for which we are not the primary beneficiary, are accounted for under the equity method.</font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Avatar's variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets and/or (3) loans provided by Avatar to a VIE. We examine specific criteria and use judgment when determining if Avatar is the primary beneficiary of a VIE. Factors considered in determining whether we are the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, level of economic disproportionality between Avatar and the other partner(s) and contracts to purchase assets from VIEs.</font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We participate in entities with equity interests ranging from 20% to 50% for the purpose of acquiring and/or developing land in which we may or may not have a controlling interest. These entities are VIEs and our investments in these entities, along with other arrangements represent variable interests, depending on the contractual terms of the arrangement. We analyze these entities when they are entered into or upon a reconsideration event.</font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-style: italic; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Consolidation of Variable Interest Entities</font></font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">During 2009, we entered into two separate agreements with unrelated third parties providing for the formation of two separate limited liability companies (“LLCs”). We subsequently sold developed, partially-developed and undeveloped land to each of the newly formed companies for a combination of cash and purchase money notes. We acquired a minority ownership interest in each of the LLCs and participate in the management of each of the LLCs. We also entered into land option contracts with these newly formed LLCs. Under such land option contracts, we paid a specified option deposit in consideration for the right, but not the obligation, to purchase developed lots in the future at predetermined prices.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We determined that these entities qualify as VIEs which require consolidation by the entity determined to be the primary beneficiary.  As a result of our analyses, we hold a variable interest in the VIEs through the purchase money notes, the land option contracts and an economic interest in these LLCs.  As of June 30, 2011, our consolidated balance sheets include $3,470 in land and other inventories and $1,075 in property and equipment from these LLCs. As of December 31, 2010, our consolidated balance sheets include $3,440 in land and other inventories and $1,161 in property and equipment from these LLC's.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Avatar and its equity partners make initial or ongoing capital contributions to these consolidated entities on a pro rata basis. The obligation to make capital contributions is governed by each consolidated entity's respective operating agreement.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">As of June 30, 2011, these consolidated entities were financed by partner equity and do not have third-party debt. In addition, we have not provided any guarantees to these entities or our equity partners.</font></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-weight: bold;">  </font><font style="display: inline; font-style: italic; text-decoration: underline;">Unconsolidated Variable Interest Entities</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We participate in entities with equity interests ranging from 20% to 50% for the purpose of acquiring and/or developing land in which we do not have a controlling interest.  We analyze these entities when they are entered into or upon a reconsideration event.  All of such entities in which we had an equity interest at June 30, 2011 and December 31, 2010 are accounted for under the equity method.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Avatar shares in the profits and losses of these unconsolidated entities generally in accordance with its ownership interests. Avatar and its equity partners make initial or ongoing capital contributions to these unconsolidated entities on a pro rata basis. The obligation to make capital contributions is governed by each unconsolidated entity's respective operating agreement.</font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">During 2009 and 2008, we entered into various transactions with unaffiliated third parties providing for the formation of LLCs; and we subsequently sold developed and partially-developed land to each of the newly-formed LLCs.  We acquired a minority ownership interest in each of the LLCs and share in the management of each of the LLCs. Avatar made contributions totaling $57 and $115 to its unconsolidated entities during the six months ended June 30, 2011 and 2010, respectively.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">As of June 30, 2011, these unconsolidated entities were financed by partner equity and do not have third-party debt. In addition, we have not provided any guarantees to these entities or our equity partners.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The following are the consolidated condensed balance sheets of our unconsolidated entities as of June 30, 2011 and December 31, 2010:</font></div><div style="display: block; text-indent: 0pt;"> </div><div><div align="center"><table cellpadding="0" cellspacing="0" width="90%" style="font-size: 10pt; font-family: times new roman;"><tr><td align="left" valign="bottom" width="66%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">June 30</font></font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">December 31</font></font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td align="left" valign="bottom" width="66%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid; text-align: center;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman; text-decoration: underline;"><font style="display: inline;">Assets:</font></font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Cash</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">76</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">465</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Land and other inventory</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">8,621</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">11,574</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="66%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Other assets</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">35</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">84</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Total assets</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">8,732</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">12,123</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="66%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman; text-decoration: underline;"><font style="display: inline;">Liabilities and Partners' Capital:</font></font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Accounts payable and accrued liabilities</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,830</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,448</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Notes and interest payable to Avatar</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">756</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,724</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Partners' Capital of:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Avatar</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,205</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,470</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="66%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Equity partner</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">4,941</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5,481</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="66%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Total liabilities and partners' capital</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">8,732</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">12,123</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr></table></div></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The following are the consolidated condensed statements of operations of our unconsolidated entities for the six and three months ended June 30, 2011 and 2010:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Six Months</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Three Months</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Revenues</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,876</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,876</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Costs and expenses</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,667</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">627</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,326</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">323</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Net income (loss) from unconsolidated entities</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">209</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(622</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">550</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(318</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Avatar's share of income (loss) from unconsolidated entities</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">15</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(207</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">143</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(117</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr></table></div></div>
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Property and Equipment</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Property and Equipment are stated at cost and depreciation is computed by the straight-line method over the following estimated useful lives of the assets: land improvements 10 to 25 years; buildings and improvements 8 to 39 years; and machinery, equipment and fixtures 3 to 7 years. Maintenance and operating expenses of equipment utilized in the development of land are capitalized as land inventory cost.  Repairs and maintenance are expensed as incurred.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Property and Equipment includes the cost of amenities owned by us. The cost of amenities includes expenditures for land acquisition, construction, land development and direct and allocated costs. Property and Equipment owned and constructed by us also includes interest cost incurred during development and construction.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Each reporting period, we review our Property and Equipment for indicators of impairment in accordance with ASC 360-10. For our amenities, which are located within our housing communities, indicators of potential impairment are similar to those of our housing communities (described above) as these factors may impact our ability to generate revenues at our amenities or cause construction costs to increase. In addition, we factor in the collectability and potential delinquency of the fees due for our amenities.  For the three months ended June 30, 2011, no impairments existed for Property and Equipment.</font></div></div>
559876000
545451000
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Share-Based Payments and Other Executive Compensation</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">On June 2, 2011, the stockholders of Avatar approved the Amended and Restated 1997 Incentive and Capital Accumulation Plan (2011 Restatement) (the "Incentive Plan") to, among other things, increase the aggregate number of shares of Avatar's common stock, par value $1.00 per share, authorized for issuance under the Incentive Plan by 700,000 shares from 1,500,000 shares to 2,200,000 shares and extend the term of the Incentive Plan until October 25, 2020. The Incentive Plan provides for the grant of stock options, stock appreciation rights, stock awards, performance awards, and stock units to officers, employees and directors of Avatar. The exercise prices of stock options may not be less than the stock exchange closing price of our common stock on the date of grant. Stock option awards under the Incentive Plan generally expire 10 years after the date of grant.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">As of June 30, 2011, an aggregate of 1,319,022 shares of our Common Stock, subject to certain adjustments, were reserved for issuance under the Incentive Plan, including an aggregate of 414,804 options, restricted stock units and stock units granted. There were 904,218 shares available for grant at June 30, 2011.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Compensation expense related to restricted stock and restricted stock unit awards during the six months ended June 30, 2011 and 2010 was $588 and $528, respectively. Compensation expense related to restricted stock and restricted stock unit awards during the three months ended June 30, 2011 and 2010 was ($53) and $264, respectively. During the three months ended June 30, 2011, we reversed approximately $450 of previously recognized compensation expense related to 293,178 shares of restricted stock which were forfeited due to the resignation of our former CEO on June 15, 2011. During the six months ended June 30, 2011, we granted 97,160 restricted stock and restricted stock units, which have a weighted average grant date fair value of $15.19 per share. During the six months ended June 30, 2010, we granted 4,935 restricted stock units, which have a weighted average grant date fair value of $20.68 per share.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">As of June 30, 2011, there was $3,434 of unrecognized compensation expense related to unvested restricted stock and restricted stock units. That expense is expected to be recognized over a weighted-average period of 1.6 years.</font></div></div>
<div><div align="left" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Fair Value Disclosures</font></font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">FASB ASC 820, <font style="display: inline; font-style: italic;">Fair Value Measurements and Disclosures </font>(“ASC 820”), provides guidance for using fair value to measure assets and liabilities, defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles, expands disclosures about fair value measurements, and establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">FASB ASC 820-10-65, <font style="display: inline; font-style: italic;">Fair Value Measurements and Disclosures – Overall – Transition and Open Effective Date Information</font> provides guidelines for making fair value measurements more consistent with the principles presented in ASC 820-10, <font style="display: inline; font-style: italic;">Fair Value Measurements and Disclosures - Overall</font>. This topic provides additional authoritative guidance in determining whether a market is active or inactive, and whether a transaction is distressed; is applicable to all assets and liabilities (i.e. financial and nonfinancial); and requires enhanced disclosures.</font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The accounting standards require that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:</font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 81pt; text-align: right;"><div style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Level 1:      </font></div></td><td><div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Fair value determined based on quoted market prices in active markets for identical assets and liabilities.</font></div></td></tr></table></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div><div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left;" /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 81pt; text-align: right;"><div style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  Level 2:     </font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means.</font></div></td></tr></table></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 81pt; text-align: right;"><div style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  Level 3:      </font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Fair value determined using significant unobservable inputs, such as discounted cash flows, or similar techniques.</font></div></td></tr></table></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The carrying value of cash and cash equivalents, receivables and accounts payable approximates the fair value due to their short-term maturities.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The majority of our non-financial instruments, which include land and other inventories, Poinciana Parkway and property and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur such that a non-financial instrument is required to be evaluated for impairment, a resulting asset impairment would require that the non-financial instrument be recorded at the lower of historical cost or its fair value.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Avatar's assets measured at fair value as of June 30, 2011 and gains (losses) for the quarter ended June 30, 2011 on a nonrecurring basis are summarized below:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" width="51%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="25%"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Fair Value</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Fair Value at</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Gains/</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td align="left" valign="bottom" width="51%" style="border-bottom: black 2px solid;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Non-financial Assets/Liabilities</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="25%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Hierarchy</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">June 30, 2011</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(Losses)</font></div></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom" width="51%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="25%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" width="10%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="51%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Homes completed or under construction</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="25%"><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Level 2</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">4,313</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(700</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="51%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Land developed and/or held for future development or sale</font></div></td><td align="left" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="left" valign="bottom" width="25%"><div align="left" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Level 3</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,060</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(13,100</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="51%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Earn-out liability related to the JEN Transaction</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="25%"><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Level 3</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">3,366</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,022</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">For assets held for sale (such as homes completed or under construction), we perform an impairment test in which the asset is reviewed for impairment by comparing the fair value (estimated sales price) less cost to sell the asset to its carrying value. If such fair value less cost to sell is less than the asset's carrying value, the carrying value is written down to its estimated fair value less cost to sell.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">For assets held and used, if indicators are present, we perform an impairment test in which the asset is reviewed for impairment by comparing the estimated future undiscounted cash flows to be generated by the asset to its carrying value. If such cash flows are less than the asset's carrying value, the carrying value is written down to its estimated fair value.  Generally, fair value is determined by discounting the estimated cash flows at a rate commensurate with the inherent risks associated with the asset and related estimated cash flow streams. The discount rate used in the determination of fair value would range between 15-25% depending on the stage of development. Assumptions and estimates used in the determination of the estimated future cash flows are based on expectations of future operations and economic conditions and certain factors described below. Changes to these assumptions could significantly affect the estimates of future cash flows which could affect the potential for future impairments. Due to the uncertainties of the estimation process, actual results could differ significantly from such estimates.</font></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"> </div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We estimated the fair value of the earn-out using a probability-weighted discounted cash flow model. This fair value measurement is based on a discounted cash flow and thus represents a Level 3 measurement as defined in ASC 820. As of June 30, 2011, there were no significant changes in the range of outcomes of the earn-out compared to the acquisition date. As of June 30, 2011, the earn-out liability decreased to $3,366 as a result of a decrease in Avatar's stock price as of June 30, 2011 compared to December 31, 2010.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The carrying amounts and fair values of our financial instruments at June 30, 2011 and December 31, 2010 are as follows:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">June 30, 2011</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">December 31, 2010</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Carrying</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Fair</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Carrying</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Fair</font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Amount</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Value</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Amount</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Value</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Cash and cash equivalents</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">146,036</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">146,036</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">115,502</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">115,502</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Restricted cash</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">8,380</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">8,380</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">8,422</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">8,422</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Receivables, net</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5,632</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5,632</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">6,434</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">6,434</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Income tax receivable</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,766</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,766</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,766</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">1,766</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Notes, mortgage notes and other debt:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Corporate:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 27pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">4.50% Notes</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5,402</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5,388</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">64,445</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">64,966</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 27pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">7.50% Notes</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">100,000</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">101,000</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 27pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">6% Notes payable</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">10,471</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">9,922</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">12,000</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">11,029</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Real estate:</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 27pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">5.50% Term Bonds payable</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">111</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">111</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">111</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">111</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 27pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Construction loan</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">114</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">109</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">396</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">388</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 27pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Promissory Note Payable</font></div></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">60</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">60</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">105</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">105</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr></table></div><div style="display: block; text-indent: 0pt;"><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 18pt;"><div><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  </font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">In estimating the fair value of financial instruments, we used the following methods and assumptions:</font></div></td></tr></table></div><div style="display: block; text-indent: 0pt;"><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 13.5pt;"><div><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  </font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">Cash and cash equivalents and restricted cash:</font> The carrying amount reported in the consolidated balance sheets for cash and cash equivalents and restricted cash approximates their fair value.</font></div></td></tr></table></div><div style="display: block; text-indent: 0pt;"><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 13.5pt;"><div><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  </font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">Receivables, net and income tax receivable:</font> The carrying amount reported in the consolidated balance sheets for receivables, net and income tax receivable approximates their fair value.</font></div></td></tr></table></div><div style="display: block; text-indent: 0pt;"><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 13.5pt;"><div><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  </font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">7.50% Notes and 4.50% Notes:</font> At June 30, 2011 and December 31, 2010, the fair value of the 7.50% Notes and the 4.50% Notes is estimated, based on quoted or estimated market prices.</font></div></td></tr></table></div><div style="display: block; text-indent: 0pt;"><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: Times New Roman;"><tr valign="top"><td style="width: 13.5pt;"><div><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">  </font></div></td><td><div align="justify"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-style: italic;">Real estate notes payable:</font> The fair values of the 6% notes payable and construction loan as of June 30, 2011 and December 31, 2010 are estimated using discounted cash flow analysis based on the current incremental borrowing rates for similar types of borrowing arrangements. The carrying values for the 5.50% term bonds payable and the promissory note payable approximates their fair value.</font></div></td></tr></table></div></div>
79049000
79010000
1
1
2664592
2662106
404025000
430045000
0
0
0
0
300000
733000
33000
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<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Loss Per Share</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We present loss per share in accordance with ASC 260, <font style="display: inline; font-style: italic;">Earnings Per Share.</font> Basic earnings (loss) per share is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of Avatar. In accordance with ASC 260, the computation of diluted earnings (loss) per share for the six and <font style="display: inline; font-size: 10pt;">three months ended June 30, 2011 and 2010 </font>did not assume the effect of restricted stock units, employee stock options or the 4.50% Notes because the effects were antidilutive.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; font-size: 10pt;">The weighted average number of shares outstanding in calculating basic loss per share includes the issuance of 66,538 and 9,271 shares of our common stock for the six and three months ended June 30, 2011, respectively, and 28,900 shares for the six and three months ended June 30, 2010. </font>In accordance with ASC 260, nonvested shares are not included in basic earnings per share until the vesting requirements are met.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The following table represents the net loss and weighted average shares outstanding for the calculation of basic and diluted loss per share for the six and three months ended June 30, 2011 and 2010:</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="left"><table cellpadding="0" cellspacing="0" width="100%" style="font-size: 10pt; font-family: times new roman;"><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Six Months</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="6" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Three Months</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2011</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">2010</font></div></td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr><td align="left" valign="bottom"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman; text-decoration: underline;"><font style="display: inline;">Numerator:</font></font></div></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td colspan="2" valign="bottom"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Basic and diluted loss per share – net loss</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(26,623</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(15,879</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(16,526</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">(5,743</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">)</font></td></tr><tr bgcolor="white"><td valign="bottom" width="52%"><font style="display: inline; font-size: 10pt; font-family: times new roman;">  </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman; text-decoration: underline;"><font style="display: inline;">Denominator:</font></font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">Basic and diluted weighted average shares outstanding</font></div></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">12,441,098</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">11,245,520</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">12,442,616</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td align="right" valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-size: 10pt; font-family: times new roman;">11,250,226</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="padding-bottom: 4px; text-align: left;"><font style="display: inline; font-size: 10pt; font-family: times new roman;"> </font></td></tr></table></div></div>
-26878000
-16151000
-16654000
-5882000
-255000
-272000
-128000
-139000
1915000
2379000
404304000
430489000
8380000
8422000
12947000
10242000
1707000
3743000
11727000
6929000
-26878000
-16151000
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802000
-185000
<div><div align="left"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Basis of Financial Statement Presentation and Summary of Significant Accounting Policies</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt; text-align: justify;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The accompanying consolidated financial statements include the accounts of Avatar Holdings Inc. and all subsidiaries, partnerships and other entities in which Avatar Holdings Inc. (“Avatar”, “we”, “us” or “our”) has a controlling interest. Our investments in unconsolidated entities in which we have less than a controlling interest are accounted for using the equity method.  All significant intercompany accounts and transactions have been eliminated in consolidation.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The consolidated balance sheets as of June 30, 2011 and December 31, 2010, and the related consolidated statements of operations for the six and three months ended June 30, 2011 and 2010 and the consolidated statements of cash flows for the six months ended June 30, 2011 and 2010 have been prepared in accordance with United States generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statement presentation. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements have been included. Such adjustments consisted only of normal recurring items. Interim results are not necessarily indicative of results for a full year.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The preparation of our consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Due to Avatar's normal operating cycle being in excess of one year, we present unclassified balance sheets.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">The consolidated balance sheet as of December 31, 2010 was derived from audited consolidated financial statements included in our 2010 Annual Report on Form 10-K but does not include all disclosures required by United States generally accepted accounting principles. These consolidated financial statements should be read in conjunction with our December 31, 2010 audited consolidated financial statements included in our 2010 Annual Report on Form 10-K and the notes to the consolidated financial statements included therein.</font></div></div>
-159000
21000
<div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Repurchase of Common Stock</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">On October 13, 2008, our Board of Directors amended its June 2005 authorization to purchase the 4.50% Notes and/or common stock to allow expenditures up to $30,000, including the $9,864 previously authorized. On October 17, 2008, we repurchased $35,920 principal amount of the 4.50% Notes for approximately $28,112 including accrued interest. On December 12, 2008, our Board of Directors amended its June 2005 authorization to purchase the 4.50% Notes and/or common stock to allow expenditures up to $30,000, including the $1,888 remaining after the October 2008 activities. On March 30, 2009, we repurchased $7,500 principal amount of the 4.50% Notes for approximately $6,038 including accrued interest. On June 19, 2009, we repurchased $6,576 principal amount of the 4.50% Notes for approximately $5,658 including accrued interest. As of June 30, 2011, the remaining authorization is $18,304.</font></div></div>
-2.14
-1.41
-1.33
-0.51
false
--12-31
2011-06-30
No
No
Yes
Accelerated Filer
170329083
AVATAR HOLDINGS INC
0000039677
12699897
2011
Q2
10-Q
<div><div style="display: block; text-indent: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Poinciana Parkway</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">In December 2006, we entered into agreements with Osceola County, Florida and Polk County, Florida for us to develop and construct at our cost a 9.66 mile four-lane road (including a 4.15 mile private toll section) in Osceola and Polk Counties to be known as the Poinciana Parkway (the “Poinciana Parkway”). Such agreements have been amended so that we are required to obtain financing and commence construction of the Parkway by February 14, 2012 and complete such construction by May 7, 2014, subject to extension for force majeure.  We have acquired all of the rights of way necessary to construct the Poinciana Parkway.  We also have all material permits for construction of the Poinciana Parkway and such permits do not expire until February 14, 2018.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">If funding and commencement of construction of the Poinciana Parkway is not achieved by February 14, 2012, the Counties have no right to obtain damages or seek specific performance against Avatar; however, (i) a portion of Avatar's land in Osceola County will become subject to Osceola traffic concurrency requirements applicable generally to other home builders in the County and (ii) Avatar will be required to contribute approximately $1,900 towards the construction cost of certain traffic improvements in Osceola County that we otherwise might have been obligated to build or fund if we had not agreed to construct the Poinciana Parkway.  </font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Osceola County and Avatar are still attempting to locate governmental funds for development of the Poinciana Parkway.  We cannot predict whether any governmental funds will be available. We intend to seek extensions of the deadlines in our agreements with Polk and Osceola Counties.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;"> For the Poinciana Parkway, indicators of impairment are general economic conditions, rate of population growth and estimated change in traffic levels. If indicators are present, we perform an impairment test in which the asset is reviewed for impairment by comparing the estimated future undiscounted cash flows to be generated by the asset to its carrying value. If such cash flows are less than the asset's carrying value, the carrying value is written down to its estimated fair value. In determining estimated future cash flows for purposes of the impairment test, we incorporate current market assumptions based on general economic conditions such as anticipated estimated revenues and estimated costs. These assumptions can significantly affect our estimates of future cash flows.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Our estimate of the right-of-way acquisition, development and construction costs for the Poinciana Parkway approximates $175,000 to $200,000. However, no assurance of the ultimate costs can be given at this stage. As of June 30, 2011, approximately $47,500 has been expended. During fiscal years 2009 and 2008, we recorded impairment charges of $8,108 and $30,228, respectively, associated with the Poinciana Parkway.</font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">We review the recoverability of the carrying value of the Poinciana Parkway on a quarterly basis in accordance with authoritative accounting guidance. Based on our review as of June 30, 2011, we determined the estimated future undiscounted cash flows of the Poinciana Parkway were greater than its carrying value, therefore no impairment losses were recorded during the six and three months ended June 30, 2011. Non-capitalizable expenditures of $46 and $20 related to the Poinciana Parkway were expensed during the six and three months ended June 30, 2011, respectively, and $265 and $57 during the six and three months ended June 30, 2010, respectively. At June 30, 2011, the carrying value of the Poinciana Parkway is $8,452.</font></div></div>
<div><div style="display: block; text-indent: 0pt;"><font style="display: inline; font-weight: bold; font-size: 10pt; font-family: Times New Roman;"><font style="display: inline; text-decoration: underline;">Income Tax Receivable</font></font></div><div style="display: block; text-indent: 0pt;"><br /></div><div align="justify" style="display: block; margin-left: 0pt; text-indent: 36pt; margin-right: 0pt;"><font style="display: inline; font-size: 10pt; font-family: Times New Roman;">Income tax receivable consists of tax refunds we expect to receive within one year. As of June 30, 2011 and December 31, 2010, we had $1,766 of income tax receivables.</font></div></div>
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