Note 3 - Interest

9 Months Ended

Jul. 31, 2015

Home Building Interest [Abstract]

Home Building Interest [Text Block]

3. Interest

Interest costs incurred, expensed and capitalized were:

	Three Months Ended July 31,				Nine Months Ended July 31,
(In thousands)	2015		2014		2015		2014
Interest capitalized at beginning of period		$119,901		$107,992		$109,158		$105,093
Plus interest incurred (1)		41,856		36,472		124,031		108,073
Less cost of sales interest expensed		16,323		15,827		39,654		37,724
Less other interest expensed (2)(3)		22,493		19,880		70,594		66,685
Interest capitalized at end of period (4)		$122,941		$108,757		$122,941		$108,757

(1)		Data does not include interest incurred by our mortgage and finance subsidiaries.
(2)		Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt. Also includes interest on completed homes and land in planning, which does not qualify for capitalization, and therefore, is expensed.
(3)	Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows:

	Three Months Ended July 31,				Nine Months Ended July 31,
(In thousands)	2015		2014		2015		2014
Other interest expensed		$22,493		$19,880		$70,594		$66,685
Interest paid by our mortgage and finance subsidiaries		618		379		1,294		1,524
Decrease in accrued interest		9,381		5,245		1,665		1,234
Cash paid for interest, net of capitalized interest		$32,492		$25,504		$73,553		$69,443

(4) Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.