Land and Other Inventories

3 Months Ended

Mar. 31, 2016

Land and Other Inventories

Land and Other Inventories

Note 3 - Land and Other Inventories

Land and other inventories consist of the following (in thousands):

	March 31, 2016		December 31, 2015
Land held for future development	$	21,417	$	21,403
Land developed and in process of development		374,677		348,648
Homes completed or under construction		233,686		212,480
Total	$	629,780	$	582,531

We capitalize interest to inventories during the period of development in accordance with ASC 835, Interest ("ASC 835"). Homebuilding interest capitalized to cost of inventory 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 that are under development or construction, excluding finished unsold homes or finished models.

The following table represents interest incurred, interest capitalized, and interest expense for the three months ended March 31, 2016 and 2015 (in thousands):

	Three Months
	2016		2015
Interest incurred	$	6,853	$	6,713
Interest capitalized		(5,581)		(3,456)
Interest expense	$	1,272	$	3,257