XML 31 R14.htm IDEA: XBRL DOCUMENT v3.6.0.2
Note 8 - Capitalization of Interest
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
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 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.
 
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.
 
   
Year Ended December 31,
 
 
 
2016
 
 
2015
 
 
2014
 
 
 
(Dollars in thousands)
 
Homebuilding interest incurred
 
$
52,681
 
 
$
53,061
 
 
$
66,269
 
Less: Interest capitalized
 
 
(52,681
)
 
 
(53,061
)
 
 
(65,584
)
Homebuilding interest expensed
 
$
-
 
 
$
-
 
 
$
685
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest capitalized, beginning of period
 
$
77,541
 
 
$
79,231
 
 
$
74,155
 
Plus: Interest capitalized during period
 
 
52,681
 
 
 
53,061
 
 
 
65,584
 
Less: Previously capitalized interest included in home and land cost of sales
 
 
(62,137
)
 
 
(54,751
)
 
 
(60,508
)
Interest capitalized, end of period
 
$
68,085
 
 
$
77,541
 
 
$
79,231