Quarterly report pursuant to Section 13 or 15(d)

Capitalized Interest

v3.22.2
Capitalized Interest
6 Months Ended
Jun. 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 (loss) 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 June 30, Six Months Ended June 30,
2022 2021 2022 2021
(dollars in thousands) (dollars in thousands)
Related party interest incurred $ 41  $ —  $ 157  $ — 
Other interest incurred 7,458  6,998  14,593  12,104 
Total interest incurred 7,499  6,998  14,750  12,104 
 
Related party interest capitalized 41  —  157 
Other interest capitalized 7,458  6,998  14,593  12,104 
Total interest capitalized 7,499  6,998  14,750  12,104 
 
Previously capitalized related party interest included in cost of sales $ 1,600  $ 4,340  $ 3,117  $ 7,242 
Previously capitalized other interest included in cost of sales 13,137  6,959  18,009  11,124 
Related party interest relieved to equity in income from unconsolidated joint ventures 34  416  69  764 
Other interest relieved to equity in income from unconsolidated joint ventures 11 
Other interest expensed —  10  —  21 
Total interest expense included in pretax income $ 14,772  $ 11,731  $ 21,196  $ 19,162