Inventory

9 Months Ended

Sep. 30, 2019

INVENTORY

A summary of inventory is as follows (in thousands):



	September 30, 2019		December 31, 2018
Homes completed or under construction	$	321,058	$	268,763
Land and lots - developed and under development	418,700		399,809
Land held for sale	1,041		389
Total inventory	$	740,799	$	668,961

A summary of interest costs incurred, capitalized and expensed is as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Interest capitalized at beginning of period	$	17,199		$	12,143		$	14,780		$	10,474
Interest incurred	3,052			2,479			9,066			6,113
Interest charged to cost of revenues	(2,324		)	(1,114		)	(5,919		)	(3,079		)
Interest capitalized at end of period	$	17,927		$	13,508		$	17,927		$	13,508

As of September 30, 2019, the Company reviewed the performance and outlook for all of its communities for indicators of potential impairment and performed detailed impairment analysis when necessary. As of September 30, 2019, the Company performed further impairment analysis of the “watchlist” selling communities with a combined corresponding carrying value of approximately $10.7 million.

There were no impairment adjustments related to inventory recorded during the three months ended September 30, 2019. An impairment adjustment of $0.1 million to reduce the carrying value of impaired communities to fair value was recorded for the nine months ended September 30, 2019.

There were no impairment adjustments related to inventory recorded during the three months ended September 30, 2018. The Company recorded an impairment adjustment of $0.1 million related to inventory for the nine months ended September 30, 2018.