Inventories

Inventories consisted of the following (in thousands):



	February 29, 2016		November 30, 2015
Homes under construction	$	1,110,826	$	1,031,356
Land under development	1,879,363		1,766,045
Land held for future development	478,455		516,346
Total	$	3,468,644	$	3,313,747

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 or land buyers (as applicable). Interest and real estate taxes are not capitalized on land held for future development.

Our interest costs were as follows (in thousands):



	Three Months Ended
	February 29, 2016			February 28, 2015
Capitalized interest at beginning of period	$	288,442		$	266,668
Interest incurred	46,251			45,003
Interest expensed	(3,697		)	(5,338		)
Interest amortized to construction and land costs (a)	(30,682		)	(22,293		)
Capitalized interest at end of period (b)	$	300,314		$	284,040


(a)	Interest amortized to construction and land costs for the three months ended February 29, 2016 included $.5 million related to land sales during the period.


(b)	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.