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Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Jul. 31, 2019
Jul. 31, 2018
Jul. 31, 2019
Jul. 31, 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) [4] 1,978 1,978
Interest capitalized at end of period [5] $ 77,997 $ 67,510 $ 77,997 $ 67,510
[1] Data does not include interest incurred by our mortgage and finance subsidiaries.
[2] 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) 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
[3] 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.
[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.