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, 2012, 2011 and 2010 is as follows:



	Year Ended December 31,
(In thousands)	2012		2011		2010
Impairment of operating communities:
Midwest	$	285	$	5,493	$	828
Southern	—		2,608		621
Mid-Atlantic	—		1,833		3,121
Total impairment of operating communities (a)	$	285	$	9,934	$	4,570
Impairment of future communities:
Midwest	$	2,732	$	6,985	$	2,837
Southern	—		3,455		3,134
Mid-Atlantic	—		—		1,290
Total impairment of future communities (a)	$	2,732	$	10,440	$	7,261
Impairment of land held for sale:
Midwest	$	95	$	—	$	—
Southern	—		590		587
Mid-Atlantic	—		—		88
Total impairment of land held for sale (a)	$	95	$	590	$	675
Option deposits and pre-acquisition costs write-offs:
Midwest	$	36	$	441	$	198
Southern	110		89		160
Mid-Atlantic	110		444		262
Total option deposits and pre-acquisition costs write-offs (b)	$	256	$	974	$	620
Impairment of investments in Unconsolidated LLCs:
Midwest	$	390	$	979	—
Southern	—		50		32
Mid-Atlantic	—		—		—
Total impairment of investments in Unconsolidated LLCs (a)	$	390	$	1,029	$	32
Total impairments and write-offs of option deposits and pre-acquisition costs	$	3,758	$	22,967	$	13,158


(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.