Inventory

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventory

2. INVENTORY

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

	June 30, 2023		December 31, 2022
Homes completed or under construction	$	509,677	$	603,953
Land and lots - developed and under development	843,053		768,194
Land held for future development(1)	48,453		48,369
Land held for sale	3,215		2,164
Total inventory	$	1,404,398	$	1,422,680

(1)Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred.

As of June 30, 2023, the Company reviewed the performance and outlook for all of its communities and land inventory for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. As of June 30, 2023, the Company performed further impairment analysis of one selling community with indicators of impairment with a combined corresponding carrying value of approximately $26.6 million. For the three and six months ended June 30, 2023 and 2022, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023		2022
Interest capitalized at beginning of period	$	22,847		$	20,751		$	22,752	$	19,950
Interest incurred	3,624			4,045			7,367		7,779
Interest charged to cost of revenues	(3,872)			(4,376)			(7,520)		(7,309)
Interest capitalized at end of period	$	22,599		$	20,420		$	22,599	$	20,420
Capitalized interest as a percentage of inventory	1.6		%	1.5		%