Annual report pursuant to Section 13 and 15(d)

REAL ESTATE AND CAPITALIZED INTEREST (Tables)

v3.3.1.900
REAL ESTATE AND CAPITALIZED INTEREST (Tables)
 12 Months Ended
Dec. 31, 2015
Inventory Disclosure [Abstract]  
Schedule of Real Estate
Real estate consists of the following (in thousands):
 
 
 
December 31, 2015
 
December 31, 2014
Homes under contract under construction (1)
 
$
456,138

 
$
328,931

Unsold homes, completed and under construction (1)
 
307,425

 
302,288

Model homes (1)
 
138,546

 
109,614

Finished home sites and home sites under development (2)
 
1,196,193

 
1,136,849

 
 
$
2,098,302

 
$
1,877,682

 
(1)
Includes the allocated land and land development costs associated with each lot for these homes.
(2)
Includes raw land, land held for development and land held for sale. 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 or phases of a larger land parcel that we plan to build out over several years. We do not capitalize interest for inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred.

Summary of Capitalized Interest
A summary of our capitalized interest is as follows (in thousands):
 
 
 
Years Ended December 31,
 
 
2015
 
2014
 
2013
Capitalized interest, beginning of year
 
$
54,060

 
$
32,992

 
$
21,600

Interest incurred
 
67,542

 
58,374

 
51,152

Interest expensed
 
(15,965
)
 
(5,163
)
 
(15,092
)
Interest amortized to cost of home and land closings
 
(44,435
)
 
(32,143
)
 
(24,668
)
Capitalized interest, end of year (1)
 
$
61,202

 
$
54,060

 
$
32,992

 
(1)
Approximately $445,000, $490,000 and $511,000 of the capitalized interest is related to our joint venture investments and is a component of “Investments in unconsolidated entities” in our consolidated balance sheet as of December 31, 2015, 2014 and 2013, respectively.