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Inventory And Land Held For Sale
3 Months Ended
Mar. 31, 2014
Inventory Disclosure [Abstract]  
Inventory Disclosure
Inventory and land held for sale

Major components of inventory were as follows ($000’s omitted): 
 
March 31,
2014
 
December 31,
2013
Homes under construction
$
1,115,281

 
$
1,042,147

Land under development
2,157,677

 
2,189,387

Raw land
761,336

 
747,027

 
$
4,034,294

 
$
3,978,561



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
 
March 31,
 
2014
 
2013
Interest in inventory, beginning of period
$
230,922

 
$
331,880

Interest capitalized
35,313

 
42,656

Interest expensed
(40,616
)
 
(53,677
)
Interest in inventory, end of period
$
225,619

 
$
320,859

Interest incurred (a)
$
35,313

 
$
42,656


(a)
Homebuilding interest incurred includes interest on senior debt and certain other financing arrangements.

Land impairments

We record land impairment valuation adjustments to our communities within Homebuilding home sale cost of revenues. Our evaluations for impairments are based on our best estimates of the future cash flows of our communities. However, if conditions in our local markets worsen in the future or if our strategy related to certain communities changes, we may be required to evaluate our assets for further impairments or write-downs. There were no significant impairments during the three months ended March 31, 2014 or 2013.

Land held for sale

Land held for sale was as follows ($000’s omitted):
 
 
March 31,
2014
 
December 31,
2013
Land held for sale, gross
$
80,832

 
$
70,003

Net realizable value reserves
(8,301
)
 
(8,268
)
Land held for sale, net
$
72,531

 
$
61,735