Inventory And Land Held For Sale

12 Months Ended

Dec. 31, 2022

Major components of inventory at December 31, 2022 and 2021 were ($000’s omitted):


	2022		2021
Homes under construction	$	5,440,186	$	4,225,309
Land under development	5,134,432		4,091,015
Raw land	679,341		731,245
Consolidated inventory not owned (a)	72,058		—
	$	11,326,017	$	9,047,569

(a) Consolidated inventory not owned includes land sold to third parties for which the Company retains a repurchase option.

In all periods presented, we capitalized all Homebuilding interest costs into inventory because the level of our active inventory exceeded our debt levels. Activity related to interest capitalized into inventory is as follows ($000’s omitted):


	Years Ended December 31,
	2022		2021		2020
Interest in inventory, beginning of period	$	160,756	$	193,409	$	210,383
Interest capitalized	130,051		129,380		159,575
Interest expensed	(153,545)		(162,033)		(176,549)
Interest in inventory, end of period	$	137,262	$	160,756	$	193,409

Land-related charges

We recorded the following land-related charges ($000's omitted):


	Statement of Operations Classification	2022		2021		2020
Net realizable value adjustments ("NRV") - land held for sale	Land sale and other cost of revenues	$	107	$	19	$	871
Land impairments	Home sale cost of revenues	2,990		—		7,044

Write-offs of deposits and pre-acquisition costs	Other expense, net	63,559		12,283		12,390
Total land-related charges		$	66,656	$	12,302	$	20,305

Our evaluations for land-related charges are based on our best estimates of the future cash flows for our communities. Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of certain of our communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates.