Land and Other Inventories

9 Months Ended

Sep. 30, 2014

Land and Other Inventories [Abstract]

Land and Other Inventories consist of the following:



	September 30, 2014		December 31, 2013
Active Adult
Land held for future development or sale	$	20,845	$	58,423
Land developed and in process of development	84,986		57,138
Homes completed or under construction	48,179		25,478
Total Active Adult	154,010		141,039

Primary Residential
Land developed and in process of development	163,768		77,983
Homes completed or under construction	56,435		11,013
Total Primary Residential	220,203		88,996

Land developed and in process of development-Other	8,626		10,043
	$	382,839	$	240,078

We capitalize interest to inventories during the period of development in accordance with ASC 835, Interest ("ASC 835"). Homebuilding interest capitalized as cost of inventories is included in cost of sales as related units or lots are sold. To the extent our homebuilding debt exceeds our qualified assets, as defined in ASC 835, we expense a portion of interest incurred. Qualified homebuilding assets consist of land, lots and homes, excluding finished unsold homes or finished models, that are under development or construction.

The following table represents interest incurred, interest capitalized, and interest expense for the three and nine months ended September 30, 2014 and 2013:



	Three Months						Nine Months
	2014			2013			2014			2013
Interest incurred	$	6,716		$	2,324		$	11,403		$	6,974
Interest capitalized	(3,875		)	(3,344		)	(8,451		)	(4,459		)
Interest expense	$	2,841		$	(1,020	)	$	2,952		$	2,515

Interest expense for the three month period ended September 30, 2013 is negative due to an immaterial correction of

the amounts capitalized in the previous 2013 quarters.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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