Interest

Interest capitalized during the three and six months ended March 31, 2018 and 2017 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:



	Three Months Ended March 31,						Six Months Ended March 31,
(In thousands)	2018			2017			2018			2017
Capitalized interest in inventory, beginning of period	$	144,847		$	144,299		$	139,203		$	138,108
Interest incurred	25,492			26,482			51,047			53,569
Interest expense not qualified for capitalization and included as other expense ^(a)	(1,650		)	(4,046		)	(5,085		)	(9,298		)
Capitalized interest amortized to home construction and land sales expenses ^(b)	(19,655		)	(19,819		)	(36,131		)	(35,463		)
Capitalized interest in inventory, end of period	$	149,034		$	146,916		$	149,034		$	146,916

^(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.