Inventory

3 Months Ended

Sep. 30, 2020

INVENTORY

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


	September 30, 2020		December 31, 2019
Homes completed or under construction	$	302,070	$	314,966
Land and lots - developed and under development	470,791		437,553
Land held for sale	6,499		1,048
Total inventory	$	779,360	$	753,567

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


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Interest capitalized at beginning of period	$	18,791		$	17,199		$	18,596		$	14,780
Interest incurred	2,010			3,052			7,677			9,066
Interest charged to cost of revenues	(2,999)			(2,324)			(8,471)			(5,919)
Interest capitalized at end of period	$	17,802		$	17,927		$	17,802		$	17,927

Capitalized interest as a percentage of inventory	2.3		%	2.5		%	2.3		%	2.5		%

As of September 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 September 30, 2020, the Company performed impairment analysis of the selling communities with indicators of impairment with a combined corresponding carrying value of approximately $8.2 million. For the three and nine months ended September 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.

There was no impairment adjustment 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.