Inventory And Land Held For Sale

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure

Inventory and land held for sale

Major components of inventory were as follows ($000’s omitted):

	September 30, 2014		December 31, 2013
Homes under construction	$	1,404,377	$	1,042,147
Land under development	2,243,887		2,189,387
Raw land	783,537		747,027
	$	4,431,801	$	3,978,561

We capitalize interest cost into inventory during the active development and construction of our communities. Each layer of capitalized interest is amortized over a period that approximates the average life of communities under development. Interest expense is recorded based on the timing of home closings. In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. Information related to interest capitalized into inventory is as follows ($000’s omitted):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Interest in inventory, beginning of period	$	210,603		$	298,575		$	230,922		$	331,880
Interest capitalized	32,025			35,962			98,793			118,527
Interest expensed	(52,286		)	(68,013		)	(139,373		)	(183,883		)
Interest in inventory, end of period	$	190,342		$	266,524		$	190,342		$	266,524
Interest incurred (a)	$	32,025		$	35,962		$	98,793		$	118,527

(a) Homebuilding interest incurred includes interest on senior debt and certain other financing arrangements.

Land held for sale

We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic

operating plans or are zoned for commercial or other development. Land held for sale was as follows ($000’s omitted):

	September 30, 2014			December 31, 2013
Land held for sale, gross	$	100,300		$	70,003
Net realizable value reserves	(7,138		)	(8,268		)
Land held for sale, net	$	93,162		$	61,735