8. Interest

Interest is capitalized to inventories while the related communities are being actively developed and until homes are completed. As our qualifying assets exceeded our outstanding debt during the three months ended March 31, 2015 and 2014, we capitalized all interest costs incurred during these periods, except for interest incurred on capital leases of equipment related to our golf course operations.

Our interest costs are as follows (in thousands):



	Three Months Ended
	March 31,
	2015		2014
Interest capitalized beginning of period	$	11,302	$	2,820
Interest capitalized during period		3,919		59
Less: capitalized interest in cost of sales		(1,621)		(76)
Interest capitalized end of period	$	13,600	$	2,803