Inventory And Land Held For Sale

12 Months Ended

Dec. 31, 2014

Major components of inventory at December 31, 2014 and 2013 were ($000’s omitted):



	2014		2013
Homes under construction	$	1,084,137	$	1,042,147
Land under development	2,545,049		2,189,387
Raw land	762,914		747,027
	$	4,392,100	$	3,978,561

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):



	Years Ended December 31,
	2014			2013			2012
Interest in inventory, beginning of period	$	230,922		$	331,880		$	355,068
Interest capitalized	131,444			154,107			201,103
Interest expensed (a)	(194,728		)	(255,065		)	(224,291		)
Interest in inventory, end of period	167,638			230,922			331,880


(a)	Interest expensed to Home sale cost of revenues for 2014, 2013, and 2012 included $1.3 million, $2.9 million, and $6.5 million, respectively, of capitalized interest write-offs resulting from land-related charges and sales.

Land-related charges

We recorded the following land-related charges:



	2014		2013		2012
Land impairments	$	3,911	$	2,944	$	13,437
Net realizable value adjustments ("NRV") - land held for sale	1,158		3,606		1,480
Write-off of deposits and pre-acquisition costs	6,099		3,122		2,278
Total land-related charges	$	11,168	$	9,672	$	17,195

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 at December 31, 2014 and 2013 was as follows ($000’s omitted):



	2014			2013
Land held for sale, gross	$	108,725		$	70,003
Net realizable value reserves	(7,535		)	(8,268		)
Land held for sale, net	$	101,190		$	61,735

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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