Capitalized Interest

9 Months Ended

Sep. 30, 2023

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 and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest capitalized, beginning of period	$	189	$	680	$	570	$	593
Interest incurred	6,921		7,118		20,750		32,721
Interest charged to interest expense	(6,896)		(7,202)		(20,949)		(32,625)
Interest charged to cost of sales	(22)		(32)		(179)		(125)
Interest capitalized, end of period	$	192	$	564	$	192	$	564