Note O — Interest

The following chart summarizes the interest incurred, capitalized and paid, as well as the amortization of capitalized interest for 2012, 2011 and 2010:



(Thousands)	2012		2011		2010
Interest incurred	$	3,334	$	2,860	$	2,696
Less capitalized interest	200		48		31
Total net expense	$	3,134	$	2,812	$	2,665
Interest paid	$	2,639	$	2,211	$	2,225
Amortization of capitalized interest included in cost of sales	$	336	$	441	$	499

The difference in expense among 2012, 2011 and 2010 was primarily due to changes in the level of outstanding debt, capital leases and the average borrowing rate. Amortization of deferred financing costs within interest expense was $0.6 million in 2012, $0.6 million in 2011 and $0.5 million in 2010.