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Inventory and Capitalized Interest
6 Months Ended
Jun. 30, 2015
Inventory [Abstract]  
Inventory Disclosure [Text Block]
Inventory and Capitalized Interest
Inventory
Inventory is recorded at cost, unless events and circumstances indicate that the carrying value of the land is impaired, at which point the inventory is written down to fair value (see Note 4 for additional details relating to our procedures for evaluating our inventories for impairment). Inventory includes the costs of land acquisition, land development and home construction, capitalized interest, real estate taxes, direct overhead costs incurred during development and home construction, and common costs that benefit the entire community, less impairments, if any.
A summary of the Company’s inventory as of June 30, 2015 and December 31, 2014 is as follows:
(In thousands)
June 30, 2015
 
December 31, 2014
Single-family lots, land and land development costs
$
486,895

 
$
463,198

Land held for sale
5,754

 
10,647

Homes under construction
444,855

 
371,119

Model homes and furnishings - at cost (less accumulated depreciation: June 30, 2015 - $7,082;
   December 31, 2014 - $7,010)
64,206

 
46,780

Community development district infrastructure
1,496

 
2,571

Land purchase deposits
23,273

 
23,495

Consolidated inventory not owned
14,465

 
779

Total inventory
$
1,040,944

 
$
918,589



Single-family lots, land and land development costs include raw land that the Company has purchased to develop into lots, costs incurred to develop the raw land into lots, and lots for which development has been completed, but which have not yet been used to start construction of a home.
Homes under construction include homes that are in various stages of construction. As of June 30, 2015 and December 31, 2014, we had 917 homes (with a carrying value of $157.7 million) and 979 homes (with a carrying value of $186.7 million), respectively, included in homes under construction that were not subject to a sales contract.
Model homes and furnishings include homes that are under construction or have been completed and are being used as sales models. The amount also includes the net book value of furnishings included in our model homes. Depreciation on model home furnishings is recorded using an accelerated method over the estimated useful life of the assets, typically three years.
Land purchase deposits include both refundable and non-refundable amounts paid to third party sellers relating to the purchase of land. On an ongoing basis, the Company evaluates the land option agreements relating to the land purchase deposits. In the period during which the Company makes the decision not to proceed with the purchase of land under an agreement, the Company expenses any deposits and accumulated pre-acquisition costs relating to such agreement.
Capitalized Interest
The Company capitalizes interest during land development and home construction.  Capitalized interest is charged to land and housing costs and expenses as the related inventory is delivered to a third party.  The summary of capitalized interest for the three and six months ended June 30, 2015 and 2014 is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
2015
 
2014
 
2015
 
2014
Capitalized interest, beginning of period
$
15,542

 
$
13,944

 
$
15,296

 
$
13,802

Interest capitalized to inventory
4,675

 
4,730

 
8,460

 
7,980

Capitalized interest charged to land and housing costs and expenses
(3,780
)
 
(3,843
)
 
(7,319
)
 
(6,951
)
Capitalized interest, end of period
$
16,437

 
$
14,831

 
$
16,437

 
$
14,831

 
 
 
 
 
 
 
 
Interest incurred
$
8,425

 
$
7,460

 
$
16,672

 
$
14,880