10. Interest Costs We capitalize a portion of our interest on funds borrowed during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and amortized over the useful lives of the assets. The following is a summary of our interest costs for the three- and six-month periods ended June 30, 2026 and 2025 (in thousands):
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For the Three Months
Ended June 30, |
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For the Six Months
Ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Interest costs charged to expense |
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$ |
16,884 |
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|
$ |
17,605 |
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|
$ |
32,992 |
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|
$ |
35,098 |
|
Amortization of deferred financing costs |
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|
937 |
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|
862 |
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|
1,841 |
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|
1,699 |
|
Amortization of the purchase price of interest rate caps |
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|
355 |
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|
490 |
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|
807 |
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|
1,230 |
|
Interest rate cap benefit |
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|
(1,075 |
) |
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(2,977 |
) |
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(2,155 |
) |
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(5,905 |
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Accretion of debt discount |
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492 |
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431 |
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|
954 |
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|
847 |
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Interest expense |
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17,593 |
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|
16,411 |
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|
34,439 |
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|
32,969 |
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Interest costs capitalized to property and equipment |
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— |
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|
966 |
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|
1,004 |
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|
1,895 |
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Interest costs capitalized to software |
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|
211 |
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|
495 |
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|
556 |
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|
953 |
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Total interest costs |
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$ |
17,804 |
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$ |
17,872 |
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$ |
35,999 |
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$ |
35,817 |
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