Inventories

Inventories consisted of the following (in thousands):



	February 28, 2018		November 30, 2017
Homes under construction	$	1,293,915	$	1,236,848
Land under development	1,766,034		1,651,339
Land held for future development or sale (a)	381,625		375,199
Total	$	3,441,574	$	3,263,386

(a) Land held for sale totaled $27.8 million at February 28, 2018 and $21.8 million at November 30, 2017.

Interest is capitalized to inventories while the related communities or land are being actively developed and until homes are completed or the land is available for immediate sale. 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 or sale.

Our interest costs were as follows (in thousands):



	Three Months Ended February 28,
	2018			2017
Capitalized interest at beginning of period	$	262,191		$	306,723
Interest incurred (a)	39,944			50,079
Interest expensed (a)	—			(6,307		)
Interest amortized to construction and land costs (b)	(42,350		)	(39,384		)
Capitalized interest at end of period (c)	$	259,785		$	311,111


(a)	Interest incurred and interest expensed for the three months ended February 28, 2017 included a charge of $5.7 million for the early extinguishment of debt.


(b)	Interest amortized to construction and land costs for the three months ended February 28, 2018 and 2017 included $1.0 million and $.5 million, respectively, related to land sales during those periods.


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