Quarterly report pursuant to Section 13 or 15(d)

Capitalized Interest

v3.22.2.2
Capitalized Interest
9 Months Ended
Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Capitalized Interest Capitalized Interest
Interest is capitalized to real estate inventories and investment in unconsolidated joint ventures during development and as a result of other qualifying activities. Interest capitalized as a cost of real estate inventories is included in cost of sales as related inventories are delivered. Interest capitalized to investments in unconsolidated JVs is relieved to equity in net income of unconsolidated joint ventures as related joint venture homes close.
For the periods reported, interest incurred, capitalized, and expensed was as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
(dollars in thousands) (dollars in thousands)
Related party interest incurred $ 74  $ 183  $ 231  $ 183 
Other interest incurred 13,759  6,597  28,352  18,701 
Total interest incurred 13,833  6,780  28,583  18,884 
 
Related party interest capitalized 74  183  231  183
Other interest capitalized 13,759  6,597  28,352  18,701 
Total interest capitalized 13,833  6,780  28,583  18,884 
 
Previously capitalized related party interest included in cost of sales $ 714  $ 2,571  $ 3,831  $ 9,813 
Previously capitalized other interest included in cost of sales 9,436  4,711  27,445  15,835 
Related party interest relieved to equity in income from unconsolidated joint ventures —  278  69  1,042 
Other interest relieved to equity in income from unconsolidated joint ventures —  14 
Other interest expensed —  11  —  32 
Total interest expense included in pretax income $ 10,150  $ 7,574  $ 31,346  $ 26,736