Interest

Interest capitalized during the three months ended December 31, 2019 and 2018 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 December 31,
in thousands	2019			2018
Capitalized interest in inventory, beginning of period	$	136,565		$	144,645
Interest incurred	21,556			24,921
Capitalized interest impaired	—			(115		)
Interest expense not qualified for capitalization and included as other expense ^(a)	(1,442		)	(242		)
Capitalized interest amortized to home construction and land sales expenses ^(b)	(19,669		)	(17,323		)
Capitalized interest in inventory, end of period	$	137,010		$	151,886

^(a)The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. The qualified inventory balance includes the majority of 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 sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors.