Note 8 - Capitalization of Interest

9 Months Ended

Sep. 30, 2014

Capitalization Disclosure [Abstract]

Capitalization Disclosure [Text Block]

8.             Capitalization of Interest

We 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 as related units or lots are sold. To the extent our homebuilding debt exceeds our qualified assets, as defined in ASC 835, we expense a portion of 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.

The homebuilding interest expensed in the table below relates to the portion of interest incurred where our homebuilding debt exceeded our qualified inventory for such periods in accordance with ASC 835.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(Dollars in thousands)
Homebuilding interest incurred	$	16,499		$	15,852		$	52,211		$	45,536
Less: Interest capitalized		(16,499	)		(15,852	)		(51,526	)		(43,810	)
Homebuilding interest expensed	$	-		$	-		$	685		$	1,726
Interest capitalized, beginning of period	$	80,936		$	74,547		$	74,155		$	69,143
Plus: Interest capitalized during period		16,499			15,852			51,526			43,810
Less: Previously capitalized interest included in home cost of sales		(14,966	)		(15,567	)		(43,212	)		(38,121	)
Interest capitalized, end of period	$	82,469		$	74,832		$	82,469		$	74,832