XML 23 R9.htm IDEA: XBRL DOCUMENT
v3.22.4

REAL ESTATE AND CAPITALIZED INTEREST | 12 Months Ended
--- | ---
Dec. 31, 2022
Inventory Disclosure [Abstract] |
REAL ESTATE AND CAPITALIZED INTEREST | REAL ESTATE AND CAPITALIZED INTEREST Real estate consists of the following (in thousands):
|  | At December 31,
|  | 2022 |  | 2021
Homes under contract under construction (1) |  | $ | 822,428 |  |  | $ | 1,039,822 |
Unsold homes, completed and under construction (1) |  | 1,155,543 |  |  | 484,999 |
Model homes (1) |  | 97,198 |  |  | 81,049 |
Finished home sites and home sites under development (2) (3) |  | 2,283,094 |  |  | 2,128,538 |
|  | $ | 4,358,263 |  |  | $ | 3,734,408 |
(1)Includes the allocated land and land development costs associated with each lot for these homes. (2)Includes raw land, land held for development and land held for sale, less impairments, if any. We do not capitalize interest for inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred. (3)Includes land held for sale of $66.8 million and $62.1 million as of December 31, 2022 and 2021, respectively. As previously noted, in accordance with ASC 360-10, each of our land inventory and related real estate assets is reviewed for recoverability when certain criteria are met, but at least annually, as our inventory is considered “long-lived” in accordance with GAAP. ASC 360-10 requires impairment charges to be recorded if the asset is not deemed recoverable and the fair value of such assets is less than their carrying amounts. Our determination of fair value is based on projections and estimates. In communities where impairment indicators are present, we may also evaluate alternative product offerings or other strategies for the land, such as pausing development, selling, or holding the land for sale. We recorded impairment charges of approximately $0.2 million, $2.1 million and $24.9 million for the years ended December 31, 2022, 2021 and 2020, respectively, primarily as a result of dispositions of certain assets that no longer fit our strategy of entry-level and first move-up communities. Subject to sufficient qualifying assets, we capitalize our development period interest costs incurred to applicable qualifying assets in connection with our real estate development and construction activities. Capitalized interest is allocated to active real estate when incurred and charged to Cost of closings when the related property is delivered. A summary of our capitalized interest is as follows (in thousands):
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Capitalized interest, beginning of year |  | $ | 56,253 |  |  | $ | 58,940 |  |  | $ | 82,014 |
Interest incurred |  | 60,599 |  |  | 62,836 |  |  | 66,289 |
Interest expensed |  | (41) |  |  | (318) |  |  | (2,177) |
Interest amortized to cost of home and land closings |  | (56,642) |  |  | (65,205) |  |  | (87,186) |
Capitalized interest, end of year (1) |  | $ | 60,169 |  |  | $ | 56,253 |  |  | $ | 58,940 |
(1)Approximately $208,000, $208,000 and $217,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities in our consolidated balance sheets as of December 31, 2022, 2021 and 2020, respectively.

X
- References No definition available. + Details
Name: | us-gaap_InventoryDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI https://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI https://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI https://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI https://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI https://asc.fasb.org/topic&trid=2134617 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration