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, 2014
Inventory Disclosure [Abstract]  
Real estate properties
Real estate consists of the following (in thousands):
 
At September 30, 2014
 
At December 31, 2013
Homes under contract under construction (1)
$
440,033

 
$
262,633

Unsold homes, completed and under construction (1)
283,883

 
147,889

Model homes (1)
100,027

 
81,541

Finished home sites and home sites under development (2)
1,041,108

 
913,236

 
$
1,865,051

 
$
1,405,299

 
(1)    Includes the allocated land and land development costs associated with each lot for these homes.
(2)
Includes 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):
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
Capitalized interest, beginning of period
$
44,355

 
$
26,294

 
$
32,992

 
$
21,600

Interest incurred
14,695

 
12,508

 
43,333

 
37,876

Interest expensed
(460
)
 
(3,462
)
 
(4,569
)
 
(13,113
)
Interest amortized to cost of home and land closings
(8,135
)
 
(6,342
)
 
(21,301
)
 
(17,365
)
Capitalized interest, end of period (1)
$
50,455

 
$
28,998

 
$
50,455

 
$
28,998

 
(1)
Approximately $511,000 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, 2014 and December 31, 2013.