Inventory

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Inventory

2. INVENTORY

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

	September 30, 2022		December 31, 2021
Homes completed or under construction	$	674,916	$	544,258
Land and lots - developed and under development	769,640		620,129
Land held for sale	8,500		39,356
Total inventory	$	1,453,056	$	1,203,743

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022		2021
Interest capitalized at beginning of period	$	20,420		$	18,960		$	19,950	$	17,520
Interest incurred	4,206			3,597			11,985		9,698
Interest charged to cost of revenues	(3,183)			(2,797)			(10,492)		(7,458)
Interest capitalized at end of period	$	21,443		$	19,760		$	21,443	$	19,760
Capitalized interest as a percentage of inventory	1.5		%	1.7		%

As of September 30, 2022, 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, 2022, the Company did not identify any selling communities with indicators of impairment.

For the three and nine months ended September 30, 2022 and 2021, the Company did not record an impairment adjustment to reduce the carrying value of impaired communities to fair value.