Land and Other Inventories

9 Months Ended

Sep. 30, 2017

Note 3 - Land and Other Inventories

As of September 30, 2017 and December 31, 2016, land and other inventories consisted of the following (in thousands):


	September 30, 2017		December 31, 2016
Land held for future development	$	29,201	$	29,089
Land developed and in process of development		355,068		349,891
Homes completed or under construction		295,626		205,428
Total	$	679,895	$	584,408

We capitalize interest to inventories during the period of development in accordance with ASC 835, Interest (“ASC 835”). Homebuilding interest capitalized to inventory is included in homebuilding cost of revenue as related units or lots are closed. 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 and nine months ended September 30, 2017 and 2016 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Interest incurred	$	8,523	$	6,483	$	24,046	$	19,873
Interest capitalized		(5,898)		(5,782)		(16,899)		(17,020)
Interest expense	$	2,625	$	701	$	7,147	$	2,853