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Land and Other Inventories
 12 Months Ended
Dec. 31, 2015
Land and Other Inventories [Abstract]  
Land and Other Inventories

Land and Other Inventories

 

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

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2015

 

2014

 

Land held for future development

    

$
21,403

    

$
20,844

 

Land developed and in process of development

 

 
348,648

 

 
269,764

 

Homes completed or under construction

 

 
212,480

 

 
92,576

 

Total

 

$
582,531

 

$
383,184

 

 

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 2015, 2014 and 2013 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

 

2015

 

2014

 

2013

 

Interest incurred

    

$
28,207

    

$
18,107

    

$
9,296

 

Interest capitalized

 

 
(19,168)

 

 
(12,302)

 

 
(6,466)

 

Interest expense

 

$
9,039

 

$
5,805

 

$
2,830