Capitalization of Interest

12 Months Ended

Dec. 31, 2021

Capitalization of Interest [Abstract]

Capitalization of Interest

Capitalization of InterestWe capitalize interest to inventories during the period of development in accordance with ASC Topic 835, Interest (“ASC 835”). Homebuilding interest capitalized as a cost of inventories is included in cost of sales during the period that related units or lots are delivered. To the extent our homebuilding debt exceeds our qualified assets as defined in ASC 835, we expense a portion of the interest incurred. Qualified homebuilding assets consist of all lots and homes, excluding finished unsold homes or finished models, within projects that are actively selling or under development. The table set forth below summarizes homebuilding interest activity. For all periods presented below, our qualified assets exceeded our homebuilding debt and as such, all interest incurred has been capitalized.

	Year Ended December 31,
	2021		2020		2019
	(Dollars in thousands)
Homebuilding interest incurred	$	72,500	$	61,276	$	63,635
Less: Interest capitalized	(72,500)		(61,276)		(63,635)
Homebuilding interest expensed	$	—	$	—	$	—
Interest capitalized, beginning of period	$	52,777	$	55,310	$	54,845
Plus: Interest capitalized during period	72,500		61,276		63,635
Less: Previously capitalized interest included in home and land cost of sales	(67,223)		(63,809)		(63,170)
Interest capitalized, end of period	$	58,054	$	52,777	$	55,310