(5) Interest

Our ability to capitalize all interest incurred during the three and nine months ended June 30, 2011 and 2010 has been limited by our inventory eligible for capitalization. The following table sets forth certain information regarding interest (in thousands):


	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Capitalized interest in inventory, beginning of period	$	47,624		$	41,107		$	36,884		$	38,338
Interest incurred		32,872			31,561			98,175			96,977
Capitalized interest impaired		(380	)		(196	)		(1,789	)		(1,292	)
Interest expense not qualified for capitalization
and included as other expense		(17,707	)		(17,381	)		(55,688	)		(57,478	)
Capitalized interest amortized to house
construction and land sales expenses		(11,179	)		(16,444	)		(26,352	)		(37,898	)

Capitalized interest in inventory, end of period	$	51,230		$	38,647		$	51,230		$	38,647