Inventories

Inventories consisted of the following (in thousands):



	February 28, 2015		November 30, 2014
Homes under construction	$	956,428	$	928,272
Land under development	1,732,604		1,710,149
Land held for future development	557,351		579,966
Total	$	3,246,383	$	3,218,387

Interest is capitalized to inventories while the related communities are being actively developed and until homes are completed. Capitalized interest is amortized to construction and land costs as the related inventories are delivered to homebuyers. Interest and real estate taxes are not capitalized on land held for future development.

Our interest costs were as follows (in thousands):



	Three Months Ended February 28,
	2015			2014
Capitalized interest at beginning of period	$	266,668		$	216,681
Interest incurred	45,003			39,280
Interest expensed	(5,338		)	(11,276		)
Interest amortized to construction and land costs	(22,293		)	(17,485		)
Capitalized interest at end of period (a)	$	284,040		$	227,200


(a)	Capitalized interest amounts presented in the table reflect the gross amount of capitalized interest, as inventory impairment charges recognized, if any, are not generally allocated to specific components of inventory.