Capitalized Interest (Notes)

3 Months Ended

Dec. 31, 2019

Capitalized Interest

The Company capitalizes interest costs to real estate throughout the development period (active real estate). Capitalized interest is charged to cost of sales as the related real estate is sold to the buyer. During periods in which the Company’s active real estate is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred. During the first quarter of fiscal 2020 and fiscal year 2019, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate.

The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three months ended December 31, 2019 and 2018.



	Three Months Ended December 31,
	2019			2018
	(In millions)
Capitalized interest, beginning of period	$	23.7		$	3.2
Interest incurred	9.9			2.8
Interest charged to cost of sales	(3.8		)	(0.7		)
Capitalized interest, end of period	$	29.8		$	5.3