Land and Other Inventories

12 Months Ended

Dec. 31, 2017

Land and Other Inventories

Land and Other Inventories

Note 3 - Land and Other Inventories

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

	December 31,
	2017		2016
Land held for future development	$	29,312	$	29,089
Land developed and in process of development		351,798		349,891
Homes completed or under construction		222,741		205,428
Total	$	603,851	$	584,408

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 December 31, 2017,  2016 and 2015 (in thousands):

	For the Years Ended December 31,
	2017		2016		2015
Interest incurred	$	32,490	$	26,145	$	28,207
Interest capitalized		(21,872)		(22,478)		(19,168)
Interest expense	$	10,618	$	3,667	$	9,039