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Inventory and Capitalized Interest
12 Months Ended
Dec. 31, 2019
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]
Inventory
A summary of the Company’s inventory as of December 31, 2019 and 2018 is as follows:
 
December 31,
(In thousands)
2019
 
2018
Single-family lots, land and land development costs
$
858,065

 
$
778,943

Land held for sale
5,670

 
12,633

Homes under construction
756,998

 
730,390

Model homes and furnishings - at cost (less accumulated depreciation: December 31, 2019 - $12,723;
December 31, 2018 - $13,441)
98,777

 
87,132

Community development district infrastructure
13,531

 
12,392

Land purchase deposits
28,532

 
33,662

Consolidated inventory not owned
7,934

 
19,308

Total inventory
$
1,769,507

 
$
1,674,460


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 December 31, 2019 and 2018, we had 1,459 homes (with a carrying value of $304.0 million) and 1,443 homes (with a carrying value of $311.0 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, which is typically three years.
The Company assesses inventory for recoverability on a quarterly basis. See Notes 1 and 3 to our Consolidated Financial Statements for additional details relating to our procedures for evaluating our inventories for impairment.
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 expensed as the related inventory is delivered to a third party.  The summary of capitalized interest for the years ended December 31, 2019, 2018 and 2017 is as follows:
 
Year Ended December 31,
(In thousands)
2019
 
2018
 
2017
Capitalized interest, beginning of period
$
20,765

 
$
17,169

 
$
16,012

Interest capitalized to inventory
30,253

 
29,053

 
21,484

Capitalized interest charged to cost of sales
(29,411
)
 
(25,457
)
 
(20,327
)
Capitalized interest, end of year
$
21,607

 
$
20,765

 
$
17,169

 
 
 
 
 
 
Interest incurred
$
51,628

 
$
49,537

 
$
40,358