| Capitalized Interest |
Interest is capitalized to real estate inventories
and investment in unconsolidated joint ventures during development and 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 joint ventures is amortized to equity in net (loss) income of unconsolidated joint ventures as related joint
venture homes close.
For the periods reported, interest incurred,
capitalized, and expensed was as follows:
| |
|
Nine Months Ended September 30, |
|
| |
|
2020 |
|
|
2019 |
|
| |
|
(dollars in thousands) |
|
| Related party interest pushed down |
|
$ |
7,300 |
|
|
$ |
12,081 |
|
| Other interest incurred |
|
|
15,972 |
|
|
|
19,697 |
|
| Total interest incurred |
|
|
23,272 |
|
|
|
31,778 |
|
| |
|
|
|
|
|
|
|
|
| Related party interest capitalized |
|
|
7,300 |
|
|
|
12,081 |
|
| Other interest capitalized |
|
|
15,972 |
|
|
|
19,697 |
|
| Total interest capitalized |
|
|
23,272 |
|
|
|
31,778 |
|
| |
|
|
|
|
|
|
|
|
| Previously capitalized related party interest included in cost of sales |
|
$ |
8,653 |
|
|
$ |
7,256 |
|
| Previously capitalized other interest included in cost of sales |
|
|
14,925 |
|
|
|
10,900 |
|
| Related party interest relieved to equity in earnings (loss) from unconsolidated joint ventures |
|
|
903 |
|
|
|
1,630 |
|
| Other interest relieved to equity in earnings (loss) from unconsolidated joint ventures |
|
|
12 |
|
|
|
23 |
|
| Other interest expensed |
|
|
11 |
|
|
|
— |
|
| Total interest expense included in pretax income (loss) |
|
$ |
24,504 |
|
|
$ |
19,809 |
|
|
Interest is capitalized to real estate inventories
and investment in unconsolidated joint ventures during development and 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 joint ventures is amortized to equity in net (loss) income of unconsolidated joint ventures as related joint
venture homes close. For the periods reported, interest incurred, capitalized, and expensed was as follows:
| |
|
Year Ended December 31, |
|
| |
|
2019 |
|
|
2018 |
|
|
2017 |
|
| |
|
(dollars in thousands) |
|
| Related party interest pushed down |
|
$ |
11,115 |
|
|
$ |
16,534 |
|
|
$ |
16,179 |
|
| Other interest incurred |
|
|
24,906 |
|
|
|
24,364 |
|
|
|
4,323 |
|
| Total interest incurred |
|
|
36,021 |
|
|
|
40,898 |
|
|
|
20,502 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Related party interest capitalized |
|
|
11,115 |
|
|
|
16,534 |
|
|
|
16,179 |
|
| Other interest capitalized |
|
|
24,906 |
|
|
|
24,253 |
|
|
|
3,678 |
|
| Total interest capitalized |
|
|
36,021 |
|
|
|
40,787 |
|
|
|
19,857 |
|
| Interest expensed |
|
$ |
— |
|
|
$ |
111 |
|
|
|
645 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Previously capitalized related party interest included in cost of sales |
|
$ |
15,646 |
|
|
$ |
9,164 |
|
|
$ |
2,678 |
|
| Previously capitalized other interest included in cost of sales |
|
|
24,747 |
|
|
|
7,135 |
|
|
|
1,306 |
|
| Related party interest relieved to equity in net income (loss) of unconsolidated joint ventures |
|
|
1,908 |
|
|
|
4,095 |
|
|
|
— |
|
| Other interest relieved to equity in earnings (loss) from unconsolidated joint ventures |
|
|
26 |
|
|
|
58 |
|
|
|
— |
|
| Other interest expensed |
|
|
— |
|
|
|
111 |
|
|
|
645 |
|
| Total interest expense included in pretax income (loss) |
|
$ |
42,327 |
|
|
$ |
20,563 |
|
|
$ |
4,629 |
|
|