Inventory

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventory

2. INVENTORY

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

	March 31, 2024		December 31, 2023
Homes completed or under construction	$	624,461	$	559,488
Land and lots - developed and under development	1,012,584		921,241
Land held for future development(1)	14,946		48,991
Land held for sale	3,503		3,503
Total inventory	$	1,655,494	$	1,533,223

(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 March 31, 2024, the Company reviewed the performance and outlook for all of its communities for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. As of March 31, 2024, one selling community had an indicator of impairment. The Company estimated the remaining undiscounted cash flows for this community and determined its carrying value of $22.3 million does not exceed the community’s fair value. For the three months ended March 31, 2024 and 2023, 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 March 31,
	2024			2023
Interest capitalized at beginning of period	$	24,126		$	22,752
Interest incurred	3,451			3,743
Interest charged to cost of revenues	(2,684)			(3,648)
Interest capitalized at end of period	$	24,893		$	22,847
Capitalized interest as a percentage of inventory	1.5		%	1.7		%