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Capitalized Interest
6 Months Ended
Mar. 31, 2016
Interest Costs Incurred [Abstract]  
CAPITALIZED INTEREST
CAPITALIZED INTEREST

The Company capitalizes interest costs incurred to inventory during active development and construction (active inventory). Capitalized interest is charged to cost of sales as the related inventory is delivered to the buyer. During periods in which the Company’s active inventory is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During the first half of fiscal 2016 and in fiscal 2015, the Company’s active inventory exceeded its debt level and all interest incurred was capitalized to inventory.

The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three and six months ended March 31, 2016 and 2015:
 
 
Three Months Ended 
 March 31,
 
Six Months Ended 
 March 31,
 
 
2016
 
2015
 
2016
 
2015
 
 
(In millions)
Capitalized interest, beginning of period
 
$
215.0

 
$
205.2

 
$
208.0

 
$
198.5

Interest incurred (1)
 
40.4

 
42.6

 
82.6

 
83.0

Interest expensed:
 
 
 
 
 
 
 
 
Charged to cost of sales
 
(40.9
)
 
(35.6
)
 
(76.1
)
 
(69.2
)
Written off with inventory impairments
 

 

 

 
(0.1
)
Capitalized interest, end of period
 
$
214.5

 
$
212.2

 
$
214.5

 
$
212.2


_______________
(1)
Interest incurred includes interest incurred on the Company's financial services mortgage repurchase facility of $1.9 million and $3.5 million in the three and six months ended March 31, 2016, respectively, and $1.6 million and $3.1 million in the same periods of 2015.