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Land and Other Inventories
 6 Months Ended
Jun. 30, 2015
Land and Other Inventories [Abstract]  
Land and Other Inventories
Land and Other Inventories
 

Land and other inventories consist of the following (in thousands):
 
June 30, 2015
 
December 31, 2014
 


 
 
Land held for future development
$
21,385

 
$
20,844

Land developed and in process of development
315,060

 
269,764

Homes completed or under construction
160,465

 
92,576

 
$
496,910

 
$
383,184


 
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, 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 six months ended June 30, 2015 and 2014 (in thousands):
 
 
Three Months
 
Six Months
 
2015
 
2014
 
2015
 
2014
Interest incurred
$
6,788

 
$
2,356

 
$
13,501

 
$
4,687

Interest capitalized
(4,382
)
 
(2,356
)
 
(7,838
)
 
(4,576
)
Interest expense
$
2,406

 
$
—

 
$
5,663

 
$
111