| 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 relieved 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:
| Schedule of interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, |
| |
|
2020 |
|
2019 |
|
2018 |
| |
|
(dollars in thousands) |
| Related party interest pushed down |
|
$ |
10,112 |
|
|
$ |
11,115 |
|
|
$ |
16,534 |
|
| Other interest incurred |
|
|
21,425 |
|
|
|
24,906 |
|
|
|
24,364 |
|
| Total interest incurred |
|
|
31,537 |
|
|
|
36,021 |
|
|
|
40,898 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Related party interest capitalized |
|
|
10,112 |
|
|
|
11,115 |
|
|
|
16,534 |
|
| Other interest capitalized |
|
|
21,410 |
|
|
|
24,906 |
|
|
|
24,253 |
|
| Total interest capitalized |
|
|
31,522 |
|
|
|
36,021 |
|
|
|
40,787 |
|
| Interest expensed |
|
$ |
15 |
|
|
$ |
— |
|
|
|
111 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Previously capitalized related party interest included in cost of sales |
|
$ |
14,110 |
|
|
$ |
15,646 |
|
|
$ |
9,164 |
|
| Previously capitalized other interest included in
cost of sales |
|
|
23,816 |
|
|
|
24,747 |
|
|
|
7,135 |
|
| Related party interest relieved to equity in net (loss) income of unconsolidated joint ventures |
|
|
1,146 |
|
|
|
1,908 |
|
|
|
4,095 |
|
| Other interest relieved to equity in net (loss) income
from unconsolidated joint ventures |
|
|
16 |
|
|
|
26 |
|
|
|
58 |
|
| Other interest expensed |
|
|
15 |
|
|
|
— |
|
|
|
111 |
|
| Total interest expense included
in pretax (loss) income |
|
$ |
39,103 |
|
|
$ |
42,327 |
|
|
$ |
20,563 |
|
|