Interest

Interest costs incurred, expensed and capitalized were:

	Three Months Ended July 31,		Nine Months Ended July 31,
(In thousands)	2019	2018	2019	2018

Interest capitalized at beginning of period	$79,277	$65,355	$68,117	$71,051
Plus interest incurred (1)	42,104	40,438	122,340	121,617
Less cost of sales interest expensed	19,029	13,424	43,169	45,080
Less other interest expensed (2)(3)	22,377	24,859	67,313	80,078
Less interest contributed to unconsolidated joint venture(4)	1,978	-	1,978	-
Interest capitalized at end of period (5)	$77,997	$67,510	$77,997	$67,510

(

)

Data does

not

include interest incurred by our mortgage and finance subsidiaries.

(

)

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, which amounted to

$13.7

million and

$20.2

million for the

three

months ended

July 31, 2019

and

2018,

respectively, and

$46.4

million and

$59.7

million for the

nine

months ended

July 31, 2019

and

2018,

respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does

not

qualify for capitalization, and therefore, is expensed. This component of other interest was

$8.7

million and

$4.6

million for the

three

months ended

July 31, 2019

and

2018,

respectively, and

$21.0

million and

$20.4

million for the

nine

months ended

July 31, 2019

and

2018,

respectively.

(

)

Cash paid for interest, net of capitalized interest, is the sum of the 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)	2019	2018	2019	2018
Other interest expensed	$22,377	$24,859	$67,313	$80,078
Interest paid by our mortgage and finance subsidiaries	673	616	1,876	1,802
Decrease in accrued interest	15,404	20,672	13,105	23,974
Cash paid for interest, net of capitalized interest	$38,454	$46,147	$82,294	$105,854

( 4 )	Represents capitalized interest which was included as part of the assets contributed to a joint venture the company entered into in June 2019. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
( 5 )	Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.