We had 477 and 403 communities under development and held for future development or sale at January 31, 2025 and 2024, respectively, which we evaluated for impairment indicators. We did not identify impairment indicators (i.e., those with a project operating loss) for any community during the three months ended January 31, 2025 and 2024.

Write-offs of options, engineering and capitalized interest costs are recorded in "Inventory impairments and land option write-offs" when we redesign communities, abandon certain engineering costs or do not exercise options in various locations because the pro forma profitability is not projected to produce adequate returns on investment commensurate with the risk. Total aggregate write-offs related to these items were $1.0 million and $0.3 million for the three months ended January 31, 2025 and 2024, respectively. The number of lots walked away from during the three months ended January 31, 2025 and 2024 were 2,434 and 928, respectively. The walk-aways during the first quarter of fiscal 2025 occurred across each of our segments and for the first quarter of fiscal 2024 the walk-aways occurred in our Southeast and West segments.

We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a third-party at the end of the respective lease. As a result of our continued involvement and the ability to repurchase model homes with below market options, for accounting purposes in accordance with ASC 606, these sale and leaseback transactions are considered a financing rather than a sale. Our Condensed Consolidated Balance Sheets at January 31, 2025 and October 31, 2024, included inventory of $60.2 million and $46.1 million, respectively, recorded to “Consolidated inventory not owned” with a corresponding amount of $61.4 million (net of debt issuance costs) and $46.2 million, respectively, recorded to “Liabilities from inventory not owned” for the amount of net cash received from the transactions.

We have land banking arrangements, whereby we sell our land parcels to a land banker and they provide us an option to purchase back finished lots on a predetermined schedule. Because of our options to repurchase these parcels, for accounting purposes in accordance with ASC 606, these transactions are considered a financing rather than a sale. Our Condensed Consolidated Balance Sheets at January 31, 2025 and October 31, 2024, included inventory of $176.7 million and $164.9 million, respectively, recorded to “Consolidated inventory not owned” with a corresponding amount of $94.9 million (net of debt issuance costs) and $94.1 million, respectively, recorded to “Liabilities from inventory not owned” for the amount of net cash received from the transactions.