Valuation Adjustments and Write-offs

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

A summary of the Company’s valuation adjustments and write-offs for the years ended December 31, 2011, 2010 and 2009 is as follows:



	Year Ended December 31,
(In thousands)	2011		2010		2009
Impairment of operating communities:
Midwest	$	5,493	$	828	$	10,262
Southern	2,608		621		6,702
Mid-Atlantic	1,833		3,121		7,708
Total impairment of operating communities (a)	$	9,934	$	4,570	$	24,672
Impairment of future communities:
Midwest	$	6,985	$	2,837	$	6,892
Southern	3,455		3,134		8,405
Mid-Atlantic	—		1,290		2,180
Total impairment of future communities (a)	$	10,440	$	7,261	$	17,477
Impairment of land held for sale:
Midwest	$	—	$	—	$	2,016
Southern	590		587		1,883
Mid-Atlantic	—		88		1,642
Total impairment of land held for sale (a)	$	590	$	675	$	5,541
Option deposits and pre-acquisition costs write-offs:
Midwest	$	441	$	198	$	569
Southern	89		160		20
Mid-Atlantic	444		262		1,067
Total option deposits and pre-acquisition costs write-offs (b)	$	974	$	620	$	1,656
Impairment of investments in Unconsolidated LLCs:
Midwest	$	979	$	—	$	616
Southern	50		32		7,115
Mid-Atlantic	—		—		—
Total impairment of investments in Unconsolidated LLCs (a)	$	1,029	$	32	$	7,731

Total impairments and write-offs of option deposits and pre-acquisition costs	$	22,967	$	13,158	$	57,077


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


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