Interest

Our ability to capitalize interest incurred during the three and nine months ended June 30, 2017 and 2016 was limited by our inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:



	Three Months Ended June 30,						Nine Months Ended June 30,
(In thousands)	2017			2016			2017			2016
Capitalized interest in inventory, beginning of period	$	146,916		$	140,139		$	138,108		$	123,457
Interest incurred	26,243			28,758			79,812			89,313
Capitalized interest impaired	—			(626		)	—			(710		)
Interest expense not qualified for capitalization and included as other expense ^(a)	(2,934		)	(5,406		)	(12,232		)	(19,471		)
Capitalized interest amortized to home construction and land sales expenses ^(b)	(21,895		)	(20,467		)	(57,358		)	(50,191		)
Capitalized interest in inventory, end of period	$	148,330		$	142,398		$	148,330		$	142,398

^(a) The amount of interest we are able to capitalize is dependent upon our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and development projects in progress, but excludes land held for future development and land held for sale.

^(b)Capitalized interest amortized to home construction and land sale expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors.