Capitalized Interest (Notes)

3 Months Ended

Dec. 31, 2021

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. In the first three months of fiscal 2022 and fiscal year 2021, 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 in the three months ended December 31, 2021 and 2020.


	Three Months Ended December 31,
	2021		2020
	(In millions)
Capitalized interest, beginning of period	$	53.7	$	48.7
Interest incurred	8.2		11.5
Interest charged to cost of sales	(9.0)		(9.2)
Capitalized interest, end of period	$	52.9	$	51.0