Real Estate Inventory and Land Deposits (Tables)

9 Months Ended

Sep. 30, 2016

Inventory consists of the following (in thousands):



	As of
	September 30, 2016		December 31, 2015
Real estate developed and under development	$	2,169,321	$	2,167,771
Real estate held for development or held for sale⁽¹⁾	202,390		173,448
Operating communities ⁽²⁾	803,562		672,499
Capitalized interest	111,412		105,148
Total owned inventory	3,286,685		3,118,866
Real estate not owned under option agreements	612		7,921
Total real estate inventory	$	3,287,297	$	3,126,787

⁽¹⁾ Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, future phases of current projects that will be developed as prior phases sell out and long-term strategic assets.

⁽²⁾ Operating communities consists of all vertical construction costs relating to homes in progress and completed homes for all active production of inventory.

Schedule of Development Status of Land Inventory

The development status of our land inventory is as follows (dollars in thousands):



	As of
	September 30, 2016			December 31, 2015
	Owned Lots	Book Value of Land and Development		Owned Lots	Book Value of Land and Development
Raw	7,942	$	417,049	8,300	$	378,081
Partially developed	7,604	475,397		8,904	645,276
Finished	12,594	1,468,831		12,294	1,305,697
Long-term strategic assets	1,600	10,434		3,105	12,165
Total	29,740	$	2,371,711	32,603	$	2,341,219

Schedule of Interest Capitalized, Incurred, Expensed and Amortized

Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Interest capitalized - beginning of period	$	111,063		$	106,470		$	105,148		$	94,880
Interest incurred	21,851			22,401			66,296			70,708
Interest amortized to cost of home closings	(21,502		)	(21,886		)	(60,032		)	(58,603		)
Interest capitalized - end of period	$	111,412		$	106,985		$	111,412		$	106,985