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 three months ended March 31, 2012 and 2011 is as follows:



	Three Months Ended March 31,
(In thousands)	2012		2011
Impairment of operating communities:
Midwest	$	—	$	2,868
Southern	—		1,764
Total impairment of operating communities (a)	$	—	$	4,632
Impairment of future communities:
Midwest	$	—	$	2,144
Southern	—		3,455
Total impairment of future communities (a)	$	—	$	5,599
Impairment of land held for sale:
Midwest	$	95	$	—
Southern	—		590
Total impairment of land held for sale (a)	$	95	$	590
Option deposits and pre-acquisition costs write-offs:
Midwest	$	2	$	21
Southern	7		8
Mid-Atlantic	22		229
Total option deposits and pre-acquisition costs write-offs (b)	$	31	$	258
Impairment of investments in Unconsolidated LLCs:
Southern	—		50
Total impairment of investments in Unconsolidated LLCs (a)	$	—	$	50
Total impairments and write-offs of option deposits and pre-acquisition costs	$	126	$	11,129


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


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