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NOTE 11: REAL ESTATE IN PROCESS OF
DEVELOPMENT AND FOR SALE
Carrying Value of Our Real Estate in Process of Development
and for Sale
HOW WE ACCOUNT FOR OUR REAL ESTATE IN PROCESS OF
DEVELOPMENT AND FOR SALE
Real estate and land under development is stated at cost
unless events and circumstances trigger an impairment review.
The Impairment of Long-Lived Assets section of Note 1: Summary
of Significant Accounting Policies provides details about
how we handle and account for impairments related to our real
estate in process of development and for sale.
In 2007, unfavorable market conditions continued to cause our
Real Estate segment to reduce prices or increase customer
incentives which triggered impairment reviews for some of the
segment’s real estate and land in process of development and
for sale. Real Estate recognized impairment charges on long-lived
assets as follow:
• $128 million in 2007;
• $36 million in 2006; and
• $33 million in 2005.
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