Inventories

Inventories consisted of the following (in thousands):



	May 31, 2013		November 30, 2012
Homes under construction	$	543,858	$	454,108
Land under development	851,469		567,470
Land held for future development	634,063		684,993
Total	$	2,029,390	$	1,706,571

Homes under construction is comprised of costs associated with homes in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs, capitalized interest and real estate taxes associated with land undergoing improvement activity. Land held for future development principally reflects land acquisition and land development costs related to land where development activity has been suspended or has not yet begun, but is expected to occur in the future. These assets held for future development are located in various submarkets where conditions do not presently support further investment or development, or are subject to a building permit moratorium or other regulatory restrictions, or are portions of larger land parcels that we plan to build out over several years and/or that have not yet been entitled. We may also suspend development activity if we believe it will result in greater returns and/or maximize the economic performance of a community.

Our interest costs are as follows (in thousands):



	Six Months Ended May 31,						Three Months Ended May 31,
	2013			2012			2013			2012
Capitalized interest at beginning of period	$	217,684		$	233,461		$	217,161		$	234,917
Interest incurred (a)	67,911			60,020			34,489			29,609
Interest expensed (a)	(29,747		)	(30,755		)	(14,507		)	(14,469		)
Interest amortized to construction and land costs	(40,271		)	(27,694		)	(21,566		)	(15,025		)
Capitalized interest at end of period (b)	$	215,577		$	235,032		$	215,577		$	235,032


(a)	Amounts for the six months ended May 31, 2012 include a $2.0 million loss on the early extinguishment of debt.


(b)	Inventory impairment charges are recognized against all inventory costs of a community, such as land, land development, cost of home construction and capitalized interest. Capitalized interest amounts presented in the table reflect the gross amount of capitalized interest as impairment charges recognized are not generally allocated to specific components of inventory.