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House and Land Inventory | 9 Months Ended
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Sep. 30, 2025
Inventory Disclosure [Abstract] |
House and land inventory | House and land inventory Major components of inventory were as follows ($000’s omitted):
| September 30, 2025 |  | December 31, 2024
Homes under construction | $ | 5,857,201 |  |  | $ | 5,770,355 |
Land under development | 6,772,262 |  |  | 6,243,745 |
Raw land | 584,641 |  |  | 548,848 |
Consolidated inventory not owned (a) | 120,186 |  |  | 102,865 |
Land held for sale | 17,687 |  |  | 27,007 |
| $ | 13,351,977 |  |  | $ | 12,692,820 |
(a) Consolidated inventory not owned includes land sold to third parties for which the Company retains a repurchase option. We capitalize interest cost into inventory during the active development and construction of our communities. In all periods presented, we capitalized substantially 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 |  | Nine Months Ended
| September 30, |  | September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Interest in inventory, beginning of period | $ | 136,624 |  |  | $ | 149,362 |  |  | $ | 139,960 |  |  | $ | 139,078 |
Interest capitalized | 26,139 |  |  | 26,443 |  |  | 78,360 |  |  | 86,346 |
Interest expensed | (31,199) |  |  | (29,708) |  |  | (86,756) |  |  | (79,327) |
Interest in inventory, end of period | $ | 131,564 |  |  | $ | 146,097 |  |  | $ | 131,564 |  |  | $ | 146,097 |
Land option agreements We enter into land option agreements in order to procure land for the construction of homes in the future. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which may serve to reduce our financial risks associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option, the costs would be capitalized if we owned the land, and acquisition of the property is probable. Such costs are reflected in other assets and are reclassified to inventory upon taking title to the land. We write off deposits and pre-acquisition costs when it becomes probable that we will not go forward with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land purchases, the availability and best use of necessary incremental capital, and other factors. We record any such write-offs of deposits and pre-acquisition costs within other income, net. See Note 1. If an entity holding the land under option is a variable interest entity ("VIE"), our deposit represents a variable interest in that entity. No VIEs required consolidation at either September 30, 2025 or December 31, 2024 because we determined that we were not any VIE's primary beneficiary. Our maximum exposure to loss related to these VIEs is generally limited to our deposits and pre-acquisition costs under the land option agreements. The following provides a summary of our interests in land option agreements as of September 30, 2025 and December 31, 2024 ($000’s omitted):
| September 30, 2025 |  |  |  | December 31, 2024
| Deposits and Pre-acquisition Costs |  | Remaining Purchase Price |  |  |  | Deposits and Pre-acquisition Costs |  | Remaining Purchase Price |  |
Land options with VIEs | $ | 399,980 |  |  | $ | 3,477,827 |  |  |  |  | $ | 358,066 |  |  | $ | 3,104,196 |  |  |
Other land options | 765,801 |  |  | 6,394,924 |  |  |  |  | 700,397 |  |  | 6,127,486 |  |  |
| $ | 1,165,781 |  |  | $ | 9,872,751 |  |  |  |  | $ | 1,058,463 |  |  | $ | 9,231,682 |  |  |
Land-related charges We recorded the following land-related charges ($000's omitted):
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
| Statement of Operations Classification | 2025 |  | 2024 |  | 2025 |  | 2024
Land impairments | Home sale cost of revenues | $ | 16,752 |  |  | $ | 3,081 |  |  | $ | 42,181 |  |  | $ | 3,204 |
Net realizable value ("NRV") adjustments - land held for sale | Land sale and other cost of revenues | 39 |  |  | 4,318 |  |  | 1,115 |  |  | 4,319 |
Write-offs of deposits and pre-acquisition costs | Other expense, net | 10,836 |  |  | 4,732 |  |  | 26,515 |  |  | 12,406 |
|  | $ | 27,627 |  |  | $ | 12,131 |  |  | $ | 69,811 |  |  | $ | 19,929 |
Our evaluations for land impairments, NRV adjustments, and write-offs of deposits and pre-acquisition costs are based on our best estimates of the future cash flows of 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. See Note 3 for a summary of such charges by reportable segment.

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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/disclosureRef -Topic 330 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/330/tableOfContent + Details
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