Capitalized Interest

12 Months Ended

Dec. 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 to our joint venture investments while the investments are considered qualified assets pursuant to ASC 835-20, Interest. Capitalized interest is transferred to 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.

Our interest costs incurred, capitalized, expensed and charged to cost of sales during the years ended December 31, 2021, 2020 and 2019 was as follows:


	Year Ended December 31,
	2021		2020		2019
Interest capitalized, beginning of year	$	1,025	$	3,499	$	4,154
Interest incurred	53,248		41,327		26,463
Interest charged to interest expense	(53,117)		(40,872)		(25,380)
Interest charged to cost of sales	(563)		(2,929)		(1,738)
Interest capitalized, end of year	$	593	$	1,025	$	3,499