XML 31 R11.htm IDEA: XBRL DOCUMENT v3.25.0.1
Inventory and Capitalized Interest
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]
Inventory
A summary of the Company’s inventory as of December 31, 2024 and 2023 is as follows:
December 31,
(In thousands)20242023
Single-family lots, land and land development costs$1,630,190 $1,446,576 
Land held for sale7,699 6,932 
Homes under construction1,271,626 1,177,101 
Model homes and furnishings - at cost (less accumulated depreciation: December 31, 2024 - $12,765;
    December 31, 2023 - $10,940)
88,216 68,696 
Community development district infrastructure12,839 19,339 
Land purchase deposits69,483 51,608 
Consolidated inventory not owned11,809 26,899 
Total inventory$3,091,862 $2,797,151 
Single-family lots, land and land development costs include raw land that the Company has purchased to develop into lots, costs incurred to develop the raw land into lots, and lots for which development has been completed, but which have not yet been used to start construction of a home.
Homes under construction include homes that are in various stages of construction. As of December 31, 2024 and 2023, we had 2,502 homes (with a carrying value of $551.3 million) and 2,023 homes (with a carrying value of $424.2 million), respectively, included in homes under construction that were not subject to a sales contract. Homes under construction increased from prior year due to the Company’s inventory management decision to offer more affordable homes that are move-in ready in order for customers to benefit from selective sales incentives.
Model homes and furnishings include homes that are under construction or have been completed and are being used as sales models. The amount also includes the net book value of furnishings included in our model homes. Depreciation on model home furnishings is recorded using an accelerated method over the estimated useful life of the assets, which is typically three years.
The Company assesses inventory for recoverability on a quarterly basis. See Notes 1 and 3 to our Consolidated Financial Statements for additional details relating to our procedures for evaluating our inventories for impairment.
Land purchase deposits include both refundable and non-refundable amounts paid to third party sellers relating to the purchase of land. On an ongoing basis, the Company evaluates the land option agreements relating to the land purchase deposits. The Company expenses any deposits and accumulated pre-acquisition costs relating to such agreements in the period when the Company makes the decision not to proceed with the purchase of land under an agreement.
Capitalized Interest
The Company capitalizes interest during land development and home construction. Capitalized interest is charged to land and housing costs and expensed as the related inventory is delivered to a third party. The summary of capitalized interest for the years ended December 31, 2024, 2023 and 2022 is as follows:
Year Ended December 31,
(In thousands)202420232022
Capitalized interest, beginning of period$32,144 $29,625 $24,343 
Interest capitalized to inventory35,862 35,845 35,552 
Capitalized interest charged to land and housing costs and expenses(32,053)(33,326)(30,270)
Capitalized interest, end of period$35,953 $32,144 $29,625 
Interest incurred net of interest income
$8,348 $15,823 $37,802