Capitalized Interest

3 Months Ended

Mar. 31, 2021

Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract]

We capitalize interest costs to land under development during the active development of finished lots. In addition, we capitalize interest costs on our JV investments while the investments are considered qualified assets pursuant to ASC Topic 835-20 - Interest. Capitalized interest is transferred to sold or unsold inventory as the development of finished lots is completed, then charged to cost of sales upon our settlement of homes and the respective lots. Interest incurred in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred.

The following table reflects the changes in our capitalized interest during the three months ended March 31, 2021 and 2020:


	Three Months Ended March 31,
		2021		2020
Interest capitalized, beginning of period		$	1,025	$	3,499
Interest incurred		13,422		6,635
Interest charged to interest expense		(13,397)		(6,486)
Interest charged to cost of sales		(221)		(614)
Interest capitalized, end of period		$	829	$	3,034