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Inventory
6 Months Ended
Jun. 30, 2018
Inventory Disclosure [Abstract]  
Inventory
INVENTORY

Inventory consists of raw land scheduled for development, land in the process of development, developed lots, completed homes, and model homes. Inventory is valued at cost unless the carrying value is determined to be not recoverable in which case the affected inventory is written down to net realizable value. Cost includes any related pre-acquisition costs that are directly identifiable with a specific property so long as those pre-acquisition costs are anticipated to be recoverable at the sale of the property.

A summary of inventory is as follows (in thousands):
 
June 30, 2018
 
December 31, 2017
Completed home inventory and residential lots held for sale
$
144,935

 
$
106,043

Work in process and land under development
436,433

 
390,011

Total inventory
$
581,368

 
$
496,054



The Company capitalizes interest costs incurred to inventory during active development and other qualifying activities. Interest capitalized as cost of inventory is charged to cost of sales as related homes, land and/or lots are closed.

A summary of interest costs incurred, capitalized and expensed is as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Interest capitalized at beginning of period
$
11,221

 
$
9,435

 
$
10,474

 
$
9,417

Interest incurred
2,006

 
885

 
3,634

 
1,778

Interest charged to cost of sales
(1,084
)
 
(895
)
 
(1,965
)
 
(1,770
)
Interest capitalized at end of period
$
12,143

 
$
9,425

 
$
12,143

 
$
9,425