Inventory

A summary of the Company's inventory as of September 30, 2012 and December 31, 2011 is as follows:



(In thousands)	September 30, 2012		December 31, 2011
Single-family lots, land and land development costs	$	230,040	$	242,372
Land held for sale	8,448		—
Homes under construction	252,325		181,483
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2012 - $4,390; December 31, 2011 - $4,340)	35,314		27,662
Community development district infrastructure	4,988		5,983
Land purchase deposits	6,204		2,676
Consolidated inventory not owned	6,552		6,596
Total inventory	$	543,871	$	466,772

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 include homes that are in various stages of construction. As of September 30, 2012 and December 31, 2011, we had 673 homes (with a carrying value of $81.6 million) and 573 homes (with a carrying value of $85.5 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. Refer to Note 3 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.