Inventories

9 Months Ended

Aug. 31, 2022

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consisted of the following (in thousands):

	August 31, 2022		November 30, 2021
Homes completed or under construction	$	2,696,548	$	2,103,038
Land under development	3,040,154		2,699,791
Total	$	5,736,702	$	4,802,829

Land under development at August 31, 2022 and November 30, 2021 included land held for future development or sale of $53.3 million and $45.2 million, respectively.

Interest is capitalized to inventories while the related communities or land parcels 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). In the case of land held for future development and land held for sale, applicable interest is expensed as incurred.

Our interest costs were as follows (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2022		2021		2022		2021
Capitalized interest at beginning of period	$	154,665	$	180,065	$	161,119	$	190,113
Interest incurred	31,778		29,605		89,102		91,807
Interest amortized to construction and land costs (a)	(35,979)		(37,544)		(99,757)		(109,794)
Capitalized interest at end of period	$	150,464	$	172,126	$	150,464	$	172,126

(a)For the nine months ended August 31, 2021, interest amortized to construction and land costs included a nominal amount related to land sales during the period.