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 and nine months ended September 30, 2013 and 2012 is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2013		2012		2013		2012
Impairment of operating communities:
Midwest	$	481	$	—	$	481	$	10
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of operating communities (a)	$	481	$	—	$	481	$	10
Impairment of future communities:
Midwest	$	1,655	$	1,309	$	2,465	$	1,771
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of future communities (a)	$	1,655	$	1,309	$	2,465	$	1,771
Impairment of land held for sale:
Midwest	$	—	$	—	$	1,291	$	95
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of land held for sale (a)	$	—	$	—	$	1,291	$	95
Option deposits and pre-acquisition costs write-offs:
Midwest	$	—	$	—	$	—	$	36
Southern	—		—		—		110
Mid-Atlantic	—		—		—		110
Total option deposits and pre-acquisition costs write-offs (b)	$	—	$	—	$	—	$	256
Impairment of investments in unconsolidated joint ventures:
Midwest	$	—	$	—	$	—	$	—
Southern	—		—		—		—
Mid-Atlantic	—		—		—		—
Total impairment of investments in unconsolidated joint ventures (a)	$	—	$	—	$	—	$	—
Total impairments and write-offs of option deposits and pre-acquisition costs	$	2,136	$	1,309	$	4,237	$	2,132


(a)	Amounts are recorded within Impairment of inventory and investment in unconsolidated joint ventures 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.