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Inventory (Tables)
 6 Months Ended
Jun. 30, 2012
Summary of Inventory

At June 30, 2012 and December 31, 2011, inventory was as follows:

 

     June 30,
2012		      December 31,
2011		  
     (In thousands)  

Model homes

    $ 73,294       $ 82,339   

Completed homes for sale

      16,140         29,703   

Homes under construction

      170,881         97,952   

Lots available for construction

      292,613         282,292   

Land under development

      86,899         144,070   

Land held for future development

      128,072         129,247   

Land deposits and preacquisition costs

      26,862         18,207   
  

 

 

     

 

 

  

Total inventory

    $ 794,761       $ 783,810   
  

 

 

     

 

 

  
Inventory Impairment

For the three and six months ended June 30, 2012 and 2011, inventory impairment was as follows:

 

     Three Months Ended June 30,      Six Months Ended June 30,  
     2012      2011      2012      2011  
     (Dollars in thousands)  

Inventory impairment

    $ 0       $ 9,684       $ 0       $ 10,302   
  

 

 

     

 

 

     

 

 

     

 

 

  

Remaining carrying value of inventory impaired at end of period

    $ 0       $ 8,810       $ 0       $ 9,840   
  

 

 

     

 

 

     

 

 

     

 

 

  

Projects impaired

      0         2         0         3   
  

 

 

     

 

 

     

 

 

     

 

 

  

Projects evaluated for impairment (a)

      132         150         132         150   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) Large land parcels not subdivided into communities are counted as one project. Once parcels are subdivided, the project count will increase accordingly.
Interest Incurred, Capitalized and Expensed

For the three and six months ended June 30, 2012 and 2011, interest incurred, capitalized and expensed was as follows:

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2012     2011     2012     2011  
     (In thousands)  

Interest incurred

    $ 16,660      $ 17,582      $ 33,320      $ 37,244   
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest expensed (a)

    $ 5,909      $ 4,375      $ 12,197      $ 8,326   
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest capitalized as a cost of inventory

    $ 10,550      $ 12,862      $ 20,745      $ 28,133   
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest previously capitalized as a cost of inventory, included in cost of sales

    $ (10,074 )    $ (8,342 )    $ (17,858 )    $ (14,150 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest previously capitalized as a cost of inventory, transferred from investments in joint ventures

    $ 0      $ 641      $ 0      $ 641   
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest capitalized in ending inventory (b)

    $ 114,323      $ 120,575      $ 114,323      $ 120,575   
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest capitalized as a cost of investments in joint ventures

    $ 201      $ 345      $ 378      $ 785   
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest previously capitalized as a cost of investments in joint ventures, included in equity in income (loss) from joint ventures

    $ (201 )    $ (212 )    $ (378 )    $ (455 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest previously capitalized as a cost of investments in joint ventures, transferred to inventory

    $ 0      $ (641 )    $ 0      $ (641 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest capitalized in ending investments in joint ventures

    $ 0      $ 635      $ 0      $ 635   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) For the three and six months ended June 30, 2012 and 2011, assets qualifying for interest capitalization was less than debt; therefore, non-qualifying interest was expensed.
(b) Inventory impairment charges were recorded against total inventory of the respective community. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory.