Consolidated Inventory Not Owned

12 Months Ended

Dec. 31, 2011

Consolidated Inventory Not Owned and Related Obligation [Abstract]

Consolidated Inventory Not Owned and Related Obligation [Text Block]

Consolidated Inventory Not Owned and Related Obligation

In the ordinary course of business, the Company enters into land option contracts in order to secure land for the construction of homes in the future.  Pursuant to these land option contracts, the Company will provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices.  If the entity holding the land under option is a variable interest entity, the Company’s deposit (including letters of credit) represents a variable interest in the entity.  The Company does not guarantee the obligations or performance of the variable interest entity.

As of December 31, 2011 and 2010, the Company had recorded $2.9 million and $0.5 million, respectively, within Inventory on the Consolidated Balance Sheets, representing the fair value of land under contract.  The corresponding liability has been classified as Obligation for consolidated inventory not owned on the Consolidated Balance Sheets.