Real Estate Inventory and Land Deposits (Tables)

3 Months Ended

Mar. 31, 2017

Inventory consists of the following (in thousands):



	As of
	March 31, 2017		December 31, 2016
Real estate developed and under development	$	2,069,795	$	2,074,651
Real estate held for development or held for sale⁽¹⁾	176,688		183,638
Operating communities ⁽²⁾	709,474		650,036
Capitalized interest	103,059		102,642
Total owned inventory	3,059,016		3,010,967
Real estate not owned under option agreements	4,682		6,252
Total real estate inventory	$	3,063,698	$	3,017,219

⁽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
	March 31, 2017			December 31, 2016
	Owned Lots	Book Value of Land and Development		Owned Lots	Book Value of Land and Development
Raw	6,145	$	341,389	7,142	$	403,902
Partially developed	7,983	549,083		8,037	501,496
Finished	11,571	1,341,236		11,318	1,336,709
Long-term strategic assets	1,425	14,775		1,489	16,182
Total	27,124	$	2,246,483	27,986	$	2,258,289

Schedule of Interest Capitalized, Incurred, Expensed and Amortized

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



	Three Months Ended March 31,
	2017			2016
Interest capitalized - beginning of period	$	102,642		$	105,148
Interest incurred	20,714			22,244
Interest amortized to cost of home closings	(20,297		)	(16,430		)
Interest capitalized - end of period	$	103,059		$	110,962