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Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($)
$ in Thousands
3 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Interest capitalized at beginning of period $ 71,264 $ 68,117
Plus interest incurred(1) [1] 44,334 38,853
Less cost of sales interest expensed 18,136 10,242
Less other interest expensed(2)(3) [2],[3] 25,003 22,273
Less interest contributed to unconsolidated joint venture(4) [4] 4,580
Interest capitalized at end of period(5) [5] $ 67,879 $ 74,455
[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 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
[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 $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.
[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.