Inventory

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Inventory

2. INVENTORY

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

	September 30, 2023		December 31, 2022
Homes completed or under construction	$	535,334	$	603,953
Land and lots - developed and under development	874,436		768,194
Land held for future development(1)	48,991		48,369
Land held for sale	3,503		2,164
Total inventory	$	1,462,264	$	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 September 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. For the three and nine months ended September 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 September 30,						Nine Months Ended September 30,
	2023			2022			2023		2022
Interest capitalized at beginning of period	$	22,599		$	20,420		$	22,752	$	19,950
Interest incurred	3,641			4,206			11,008		11,985
Interest charged to cost of revenues	(2,971)			(3,183)			(10,491)		(10,492)
Interest capitalized at end of period	$	23,269		$	21,443		$	23,269	$	21,443
Capitalized interest as a percentage of inventory	1.6		%	1.5		%