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Inventory And Land Held For Sale | 12 Months Ended
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Dec. 31, 2017
Inventory Disclosure [Abstract] |
Inventory and land held for sale | Inventory and land held for sale Major components of inventory at December 31, 2017 and 2016 were ($000’s omitted):
| 2017 |  | 2016
Homes under construction | $ | 2,421,405 |  |  | $ | 1,921,259 |
Land under development | 4,135,814 |  |  | 4,072,109 |
Raw land | 589,911 |  |  | 777,287 |
| $ | 7,147,130 |  |  | $ | 6,770,655 |
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,
| 2017 |  | 2016 |  | 2015
Interest in inventory, beginning of period | $ | 186,097 |  |  | $ | 149,498 |  |  | $ | 167,638 |
Interest capitalized | 181,719 |  |  | 160,506 |  |  | 120,001 |
Interest expensed | (141,205 | ) |  | (123,907 | ) |  | (138,141 | )
Interest in inventory, end of period | $ | 226,611 |  |  | $ | 186,097 |  |  | $ | 149,498 |
Land-related charges We recorded the following land-related charges ($000's omitted):
| Statement of Operations Classification |  | 2017 |  | 2016 |  | 2015
Land impairments | Home sale cost of revenues |  | $ | 88,952 |  |  | $ | 1,074 |  |  | $ | 7,347 |
Net realizable value adjustments ("NRV") - land held for sale | Land sale cost of revenues |  | 83,576 |  |  | 1,105 |  |  | (901 | )
Impairments of unconsolidated entities | Other expense, net |  | 8,017 |  |  | — |  |  | — |
Write-offs of deposits and pre-acquisition costs | Other expense, net |  | 11,367 |  |  | 17,157 |  |  | 5,021 |
Total land-related charges |  |  | $ | 191,912 |  |  | $ | 19,336 |  |  | $ | 11,467 |
The 2017 charges were primarily the result of a plan we announced in May 2017 to sell select non-core and underutilized land parcels following a strategic review of our land portfolio. These land parcels were located in diverse geographic areas and no longer fit into our strategic plans. The land parcels identified for sale included: land requiring significant additional development spend that would not yield suitable returns; land in excess of near-term need; and land entitled for certain product types inconsistent with our primary offerings. In addition to this strategic review, we recorded impairment charges related to certain communities due to operating performance that was significantly lower than expectations. The estimated fair values of these land parcels were based on sales contracts or letters of intent, comparisons to market comparable transactions, estimated future net cash flows discounted for inherent risk associated with each underlying asset, or similar information. The estimated cash flows for certain parcels incorporate estimates related to expected average selling prices, expected sales paces, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. The assumptions used in the valuations are specific to each community tested for impairment and typically do not assume improvements in market conditions in the near term. In certain instances, the determination of fair value requires discounting the estimated cash flows at a rate commensurate with the inherent risks associated with each of the assets and related estimated cash flow streams. The discount rate used in determining each community's fair value depends on the stage of development of the community and other specific factors that increase or decrease the inherent risks associated with the community's cash flow streams and ranged from 12% to 25%. Our evaluations for impairments 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 these communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates. Land held for sale Land held for sale at December 31, 2017 and 2016 was as follows ($000’s omitted):
| 2017 |  | 2016
Land held for sale, gross | $ | 142,070 |  |  | $ | 38,157 |
Net realizable value reserves | (73,686 | ) |  | (6,429 | )
Land held for sale, net | $ | 68,384 |  |  | $ | 31,728 |

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- Definition The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -URI http://asc.fasb.org/topic&trid=2126998 + Details
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