| 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:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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(dollars in thousands) |
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(dollars in thousands) |
| Related party interest incurred |
$ |
74 |
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$ |
183 |
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$ |
231 |
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$ |
183 |
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| Other interest incurred |
13,759 |
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|
6,597 |
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|
28,352 |
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|
18,701 |
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| Total interest incurred |
13,833 |
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6,780 |
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28,583 |
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|
18,884 |
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| Related party interest capitalized |
74 |
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183 |
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231 |
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|
183 |
| Other interest capitalized |
13,759 |
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6,597 |
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28,352 |
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18,701 |
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| Total interest capitalized |
13,833 |
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6,780 |
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28,583 |
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18,884 |
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| Previously capitalized related party interest included in cost of sales |
$ |
714 |
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$ |
2,571 |
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$ |
3,831 |
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$ |
9,813 |
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| Previously capitalized other interest included in cost of sales |
9,436 |
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4,711 |
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27,445 |
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15,835 |
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| Related party interest relieved to equity in income from unconsolidated joint ventures |
— |
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|
278 |
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|
69 |
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|
1,042 |
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| Other interest relieved to equity in income from unconsolidated joint ventures |
— |
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3 |
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1 |
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14 |
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| Other interest expensed |
— |
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11 |
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— |
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32 |
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| Total interest expense included in pretax income |
$ |
10,150 |
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$ |
7,574 |
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$ |
31,346 |
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$ |
26,736 |
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