Inventory

3 Months Ended

Jun. 30, 2020

INVENTORY

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


	June 30, 2020		December 31, 2019
Homes completed or under construction	$	318,232	$	314,966
Land and lots - developed and under development	426,551		437,553
Land held for sale	6,338		1,048
Total inventory	$	751,121	$	753,567

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


	Three Months Ended June 30,									Six Months Ended June 30,
	2020			2019			2020			2019
Interest capitalized at beginning of period	$	18,876		$	16,526		$	18,596		$	14,780
Interest incurred	2,708			3,128			5,667			6,014
Interest charged to cost of revenues	(2,793)			(2,455)			(5,472)			(3,595)
Interest capitalized at end of period	$	18,791		$	17,199		$	18,791		$	17,199

Capitalized interest as a percentage of inventory	2.5		%	2.4		%	2.5		%	2.4		%

As of June 30, 2020, 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 June 30, 2020, the Company performed further impairment analysis of the selling communities with indicators of impairment with a combined

corresponding carrying value of approximately $9.9 million. For the three and six months ended June 30, 2020, the Company recorded $0.0 million and a de minimis impairment adjustment, respectively, to reduce the carrying value of impaired communities to fair value.

An impairment adjustment of $0.1 million to reduce the carrying value of impaired communities to fair value was recorded for the three and six months ended June 30, 2019.