Capitalized Interest

6 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Capitalized Interest

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 six months of fiscal 2023 and fiscal 2022, 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 and six months ended March 31, 2023 and 2022.

	Three Months Ended March 31,				Six Months Ended March 31,
	2023		2022		2023		2022
	(In millions)
Capitalized interest, beginning of period	$	55.7	$	52.9	$	52.5	$	53.7
Interest incurred	8.2		8.1		16.4		16.3
Interest charged to cost of sales	(5.1)		(10.4)		(10.1)		(19.4)
Capitalized interest, end of period	$	58.8	$	50.6	$	58.8	$	50.6