Note 3 - Land and Other Inventories

As of December 31, 2016 and 2015, land and other inventories consisted of the following (in thousands):


	December 31,
	2016		2015
Land held for future development	$	29,089	$	21,403
Land developed and in process of development		349,891		348,648
Homes completed or under construction		205,428		212,480
Total	$	584,408	$	582,531

We capitalize interest to inventories during the period of development in accordance with ASC 835, Interest (“ASC 835”). Homebuilding interest capitalized as cost of inventories is included in cost of sales as related units or lots are sold. To the extent our homebuilding debt exceeds our qualified assets, as defined in ASC 835, we expense a portion of interest incurred. Qualified homebuilding assets consist of land, lots and homes, excluding finished unsold homes or finished models, that are under development or construction.

The following table represents interest incurred, interest capitalized, and interest expense for December 31, 2016, 2015 and 2014 (in thousands):


	For the Years Ended December 31,
	2016		2015		2014
Interest incurred	$	26,145	$	28,207	$	18,107
Interest capitalized		(22,478)		(19,168)		(12,302)
Interest expense	$	3,667	$	9,039	$	5,805