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Inventory

9 Months Ended

Sep. 30, 2021

2. INVENTORY

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


	September 30, 2021		December 31, 2020
Homes completed or under construction	$	584,538	$	356,706
Land and lots - developed and under development	581,766		482,371
Land held for sale	3,993		5,558
Total inventory	$	1,170,297	$	844,635

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


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021		2020
Interest capitalized at beginning of period	$	18,960		$	18,791		$	17,520	$	18,596
Interest incurred	3,597			2,010			9,698		7,677
Interest charged to cost of revenues	(2,797)			(2,999)			(7,458)		(8,471)
Interest capitalized at end of period	$	19,760		$	17,802		$	19,760	$	17,802

Capitalized interest as a percentage of inventory	1.7		%	2.3		%

As of September 30, 2021, 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, 2021, the Company did not identify any selling communities with indicators of impairment. For the three and nine months ended September 30, 2021, the Company did not record an impairment adjustment to reduce the carrying value of impaired communities to fair value.

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