Inventories

9 Months Ended

Aug. 31, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consisted of the following (in thousands):

	August 31, 2023		November 30, 2022
Homes completed or under construction	$	2,228,400	$	2,414,675
Land under development	2,957,475		3,128,501
Total	$	5,185,875	$	5,543,176

Land under development at August 31, 2023 and November 30, 2022 included land held for future development or sale of $27.4 million and $21.6 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,
	2023		2022		2023		2022
Capitalized interest at beginning of period	$	141,225	$	154,665	$	145,494	$	161,119
Interest incurred	26,810		31,778		80,609		89,102
Interest amortized to construction and land costs (a)	(29,305)		(35,979)		(87,373)		(99,757)
Capitalized interest at end of period	$	138,730	$	150,464	$	138,730	$	150,464

(a)    Interest amortized to construction and land costs for the three months and nine months ended August 31, 2023 included nominal amounts related to land sales during the periods.