REAL ESTATE INVENTORY AND LAND DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2018

Inventory consists of the following (in thousands):



	As of
	September 30, 2018		December 31, 2017
Real estate developed and under development	$	2,194,880	$	2,130,263
Real estate held for development or held for sale⁽¹⁾	65,971		76,552
Operating communities ⁽²⁾	899,937		659,398
Capitalized interest	94,512		90,496
Total owned inventory	3,255,300		2,956,709
Real estate not owned	13,811		2,527
Total real estate inventory	$	3,269,111	$	2,959,236

⁽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, properties where we have ceased development and/or marketing, and long-term strategic assets.

⁽²⁾ Operating communities consist 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, 2018			December 31, 2017
	Owned Lots	Book Value of Land and Development		Owned Lots	Book Value of Land and Development
Raw	7,362	$	286,753	7,703	$	338,642
Partially developed	7,639	473,725		5,811	543,200
Finished	12,982	1,500,373		11,644	1,314,243
Long-term strategic assets	—	—		763	10,730
Total	27,983	$	2,260,851	25,921	$	2,206,815

Schedule of Interest Capitalized, Incurred, Expensed and Amortized

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Interest capitalized - beginning of period	$	95,693		$	100,490		$	90,496		$	102,642
Interest incurred	20,164			20,762			59,979			62,187
Interest amortized to cost of home closings	(21,345		)	(21,789		)	(55,963		)	(65,366		)
Interest capitalized - end of period	$	94,512		$	99,463		$	94,512		$	99,463