Inventories

9 Months Ended

Aug. 31, 2011

Inventories [Abstract]

Inventories

6. Inventories

Inventories consisted of the following (in thousands):

	August 31,		November 30,
	2011		2010
Homes, lots and improvements in production	$	1,466,803	$	1,298,085
Land under development		433,777		398,636
Total	$	1,900,580	$	1,696,721

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

	Nine Months Ended August 31,						Three Months Ended August 31,
	2011			2010			2011			2010
Capitalized interest at beginning of period	$	249,966		$	291,279		$	249,792		$	275,405
Capitalized interest related to consolidation of previously unconsolidated joint ventures		—			9,914			—			—
Interest incurred (a)		84,489			91,907			29,090			30,001
Interest expensed (a)		(36,902	)		(52,108	)		(12,342	)		(16,183	)
Interest amortized to construction and land costs		(52,746	)		(79,454	)		(21,733	)		(27,685	)
Capitalized interest at end of period (b)	$	244,807		$	261,538		$	244,807		$	261,538

(a)

Amounts for the nine months ended August 31, 2011 include a $3.6 million gain on the early extinguishment of secured debt. Amounts for the nine months ended August 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 an unsecured revolving credit facility (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 effective March 31, 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.