Inventory And Land Held For Sale

9 Months Ended

Sep. 30, 2015

Inventory and land held for sale

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



	September 30, 2015		December 31, 2014
Homes under construction	$	1,605,529	$	1,084,137
Land under development	2,871,263		2,545,049
Raw land	764,140		762,914
	$	5,240,932	$	4,392,100

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,
	2015			2014			2015			2014
Interest in inventory, beginning of period	$	164,384		$	210,603		$	167,638		$	230,922
Interest capitalized	28,006			32,025			90,105			98,793
Interest expensed	(36,609		)	(52,286		)	(101,962		)	(139,373		)
Interest in inventory, end of period	$	155,781		$	190,342		$	155,781		$	190,342

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, 2015			December 31, 2014
Land held for sale, gross	$	92,040		$	108,725
Net realizable value reserves	(6,910		)	(7,535		)
Land held for sale, net	$	85,130		$	101,190