Inventories

6 Months Ended

May 31, 2011

Inventories consisted of the following (in thousands):


	May 31,		November 30,
	2011		2010

Homes, lots and improvements in production		$1,390,352	$	1,298,085
Land under development		504,629		398,636


Total		$1,894,981	$	1,696,721

The Company’s interest costs were as follows (in thousands):


	Six Months Ended May 31,						Three Months Ended May 31,
	2011			2010			2011			2010

Capitalized interest at beginning of period	$	249,966		$	291,279		$	253,040		$	290,451
Capitalized interest related to consolidation of previously unconsolidated joint ventures		—			9,914			—			—
Interest incurred (a)		55,399			61,906			29,462			29,855
Interest expensed (a)		(24,560	)		(35,925	)		(13,121	)		(16,518	)
Interest amortized to construction and land costs		(31,013	)		(51,769	)		(19,589	)		(28,383	)


Capitalized interest at end of period (b)	$	249,792		$	275,405		$	249,792		$	275,405

(a)

Amounts for the six months ended May 31, 2011 include a $3.6 million gain on the early extinguishment of secured debt. Amounts for the three months ended May 31, 2010 include $.4 million of debt issuance costs written off in connection with the Company’s voluntary termination of an unsecured revolving credit facility (the “Credit Facility”) effective March 31, 2010. Amounts for the six months ended May 31, 2010 include $1.8 million of debt issuance costs written off in connection with the Company’s voluntary reduction of the aggregate commitment under the Credit Facility from $650.0 million to $200.0 million during the first quarter of 2010 and the voluntary termination of the Credit Facility in the second quarter of 2010.

(b)

Inventory impairment charges are recognized against all inventory costs of a community, such as land, land improvements, costs of home construction and capitalized interest. Capitalized interest amounts presented in the table reflect the gross amount of capitalized interest as impairment charges recognized are not generally allocated to specific components of inventory.