Inventories

Inventories consisted of the following (in thousands):



	August 31, 2014		November 30, 2013
Homes under construction	$	982,605	$	586,439
Land under development	1,641,001		1,066,916
Land held for future development	616,714		645,222
Total	$	3,240,320	$	2,298,577

Interest is capitalized to inventories while the related communities are being actively developed and until homes are completed. Capitalized interest is amortized to construction and land costs as the related inventories are delivered to homebuyers. Interest and real estate taxes are not capitalized on land held for future development.

Our interest costs are as follows (in thousands):



	Nine Months Ended August 31,						Three Months Ended August 31,
	2014			2013			2014			2013
Capitalized interest at beginning of period	$	216,681		$	217,684		$	241,583		$	215,577
Interest incurred	127,041			102,256			44,603			34,345
Interest expensed	(26,289		)	(41,073		)	(6,455		)	(11,326		)
Interest amortized to construction and land costs	(59,471		)	(62,943		)	(21,769		)	(22,672		)
Capitalized interest at end of period (a)	$	257,962		$	215,924		$	257,962		$	215,924


(a)	Capitalized interest amounts presented in the table reflect the gross amount of capitalized interest, as inventory impairment charges recognized, if any, are not generally allocated to specific components of inventory.