Inventory

A summary of the Company's inventory as of December 31, 2011 and 2010 is as follows:



	December 31,
(In thousands)	2011		2010
Single-family lots, land and land development costs	$	242,372	$	262,960
Homes under construction	181,483		151,524
Model homes and furnishings - at cost (less accumulated depreciation: December 31, 2011 - $4,340; December 31, 2010 - $3,230)	27,662		23,255
Community development district infrastructure	5,983		7,112
Land purchase deposits	2,676		1,965
Consolidated inventory not owned	6,596		4,120
Total inventory	$	466,772	$	450,936

Single-family lots, land and land development costs include raw land that the Company has purchased to develop into lots, costs incurred to develop the raw land into lots, and lots for which development has been completed but which have not yet been used to start construction of a home.

Homes under construction includes homes that are in various stages of construction. As of December 31, 2011 and 2010, we had 573 homes (with a carrying value of $85.5 million) and 561 homes (with a carrying value of $74.4 million), respectively, included in homes under construction that were not subject to a sales contract.

Model homes and furnishings include homes that are under construction or have been completed and are being used as sales models. The amount also includes the net book value of furnishings included in our model homes. Depreciation on model home furnishings is recorded using an accelerated method over the estimated useful life of the assets, typically three years.

The Company assesses inventory for recoverability on a quarterly basis, by reviewing for impairment whenever events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable. Refer to Note 4 for additional details relating to our procedures for evaluating our inventories for impairment.

Land purchase deposits include both refundable and non-refundable amounts paid to third party sellers relating to the purchase of land. On an ongoing basis, the Company evaluates the land option agreements relating to the land purchase deposits. In the period during which the Company makes the decision not to proceed with the purchase of land under an agreement, the Company writes off any deposits and accumulated pre-acquisition costs relating to such agreement. For the years ended December 31, 2011 and 2010, the Company wrote off $1.0 million and $0.6 million, respectively, in option deposits and pre-acquisition costs. Refer to Note 6 for additional details relating to write-offs of land option deposits and pre-acquisition costs.