Interest

Interest costs incurred, expensed and capitalized were:

	Three Months Ended
	January 31,
(In thousands)	2020	2019
Interest capitalized at beginning of period	$71,264	$68,117
Plus interest incurred(1)	44,334	38,853
Less cost of sales interest expensed	18,136	10,242
Less other interest expensed(2)(3)	25,003	22,273
Less interest contributed to unconsolidated joint venture(4)	4,580	-
Interest capitalized at end of period(5)	$67,879	$74,455

(

)

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

$14.9

million and

$17.6

million for the

three

months ended

January 31, 2020

and

2019

, 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

$10.1

million and

$4.7

million for the

three

months ended

January 31, 2020

and

2019

, respectively.

(

)

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 January 31,
(In thousands)	2020		2019
Other interest expensed	$25,003		$22,273
Interest paid by our mortgage and finance subsidiaries	770		689
(Increase) decrease in accrued interest	(11,818	)	17,477
Cash paid for interest, net of capitalized interest	$13,955		$40,439

( 4 )	Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in December 2019, as discussed in Note 18. 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.