Question-and-Answer Session
Operator
(Operator Instructions). And your first question comes from the line Carl Reichardt. Please proceed.
Carl Reichardt - Wachovia Capital Markets
Good morning, guys. How are you?
Jeffrey Orleans
Hi Carl, how are you.
Carl Reichardt - Wachovia Capital Markets
Fine, thank you. I have a few a questions, a couple of clean ups on the numbers. Garry, the impairment that was included in the Arizona discontinued operation is somewhere around $20 million. I think we backed into that's about right.
Garry Herdler
That's about right.
Carl Reichardt - Wachovia Capital Markets
Oh 20, okay. And then the GAAP liability associated with the land sale with the option take backwards kind of like a FIN 46 type of minority interest with?
Garry Herdler
I think of it exactly the same way as you do, although it's works slightly to the opposite. It's the proceeds you received on those two deals get booked rather than 1046 you put a 100% which you would actually owe. As lots are taking down, you sort of theoretically accrete some interest, it's not really interest, but it a from a GAAP perspective, but this looks, smells and tastes like a regular option contract. The issue is that under FAS 66 this is a continuing involvement, because when you sold that you still had an option.
Carl Reichardt - Wachovia Capital Markets
Still the option? Okay.
Garry Herdler
So that number we will separately have an asset liability that separately booked on the balance sheet.
Carl Reichardt - Wachovia Capital Markets
Okay. All right, great. And then a couple of other?
Garry Herdler
And that liability is not included as a liability for our bank covenants.
Carl Reichardt - Wachovia Capital Markets
Yeah, I figured as much, and it's broken out some of that jacks, figured that. There a couple of questions on then just sort of a broader trend. Jeff you had mentioned that, you felt that traffic over the last weekend had been, that you call it just very good. Can you give me a little more detail on that? Obviously, we'd normally see a seasonal pick up, and I want to know by your conversion rate as well, has it just been traffic or have the orders also improved?
Jeffrey Orleans
Right from the middle of December to the beginning of January things don't get worse in that cost. So let's start to worry about them and then work our way up to -- last weekend we -- over 200 account for our Northern division in traffic is good. We were 240. We were running around 150, 160 which is really very bad. So, trafficwise, now conversionwise we took deposit, we really can't give our sales accounts for January yet, but the first couple of weeks and the last couple of weeks, we had a 30 day drought there that was getting pretty divesting.
- To read the full transcript on Seeking Alpha, click here »
