5.	Capitalized Interest

The Company capitalizes interest costs to land under development during the active development of finished lots. Capitalized interest is transferred to sold or unsold inventory as the development of finished lots is completed, then charged to cost of sales upon the Company’s settlement of homes and the respective lots. Interest incurred during the period in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred. NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the three and six months ended June 30, 2013 was as follows:


	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
Interest capitalized, beginning of period	$	1,577		$	893
Interest incurred		6,264			12,514
Interest charged to interest expense		(5,374	)		(10,940	)
Interest charged to cost of sales		(13	)		(13	)

Interest capitalized, end of period	$	2,454		$	2,454

There was no interest capitalized as of or during the six months ended June 30, 2012.