Quarterly report pursuant to Section 13 or 15(d)

Real Estate and Capitalized Interest (Tables)

v2.4.0.8
Real Estate and Capitalized Interest (Tables)
9 Months Ended
Sep. 30, 2013
Inventory Disclosure [Abstract]  
Real estate properties
 
 
At September 30, 2013
 
At December 31, 2012
Homes under contract under construction (1)
$
316,508

 
$
192,948

Unsold homes, completed and under construction (1)
123,602

 
107,466

Model homes (1)
78,017

 
62,411

Finished home sites and home sites under development
721,492

 
634,106

Land held for development (2)
53,053

 
56,118

Land held for sale
19,630

 
21,650

Communities in mothball status (3)
32,912

 
38,488

 
$
1,345,214

 
$
1,113,187

 
(1)    Includes the allocated land and land development costs associated with each lot for these homes.
(2)
Land held for development primarily reflects land and land development costs related to land where development activity is not currently underway but is expected to begin in the future. For these parcels, we may have chosen not to currently develop certain land holdings as they typically represent a portion of a larger land parcel that we plan to build out over several years.
(3)
Represents communities where we have decided to cease operations (mothball) as we have determined that their economic performance would be maximized by deferring development. In the future, some of these communities may be re-opened while others may be sold to third parties. If we deem our carrying value to not be fully recoverable, we adjust our carrying value for these assets to fair value at the time they are placed into mothball status. As of September 30, 2013, we had six mothballed communities with a carrying value of $29.6 million in our West Region and two mothballed communities with a carrying value of $3.3 million in our Central Region. We do not capitalize interest for such mothballed assets, and all ongoing costs of land ownership are also expensed as incurred.
Summary of capitalized interest
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Capitalized interest, beginning of period
$
26,294

 
$
17,836

 
$
21,600

 
$
14,810

Interest incurred
12,508

 
11,654

 
37,876

 
33,819

Interest expensed
(3,462
)
 
(5,009
)
 
(13,113
)
 
(18,718
)
Interest amortized to cost of home and land closings
(6,342
)
 
(4,296
)
 
(17,365
)
 
(9,726
)
Capitalized interest, end of period (1)
$
28,998

 
$
20,185

 
$
28,998

 
$
20,185

 
(1)
Approximately $511,000 and $539,000 of the capitalized interest is related to our joint venture investments and is a component of “Investments in unconsolidated entities” on our consolidated balance sheets as of September 30, 2013 and December 31, 2012, respectively.