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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, 2022
Jul. 31, 2021
Jul. 31, 2022
Jul. 31, 2021
Interest capitalized at beginning of period $ 63,573 $ 59,772 $ 58,159 $ 65,010
Plus interest incurred(1) [1] 32,644 39,181 99,299 122,508
Less cost of sales interest expensed 22,453 19,240 57,876 58,130
Less other interest expensed(2)(3) [2],[3] 9,624 19,158 35,442 65,166
Less interest contributed to unconsolidated joint venture(4) [4] 0 0 0 3,667
Plus interest acquired from unconsolidated joint venture(5) [5] 0 3,118 0 3,118
Interest capitalized at end of period(6) [5] $ 64,140 $ 63,673 $ 64,140 $ 63,673
[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 Nine Months Ended July 31, July 31, (In thousands) 2022 2021 2022 2021 Other interest expensed $ 9,624 $ 19,158 $ 35,442 $ 65,166 Interest paid by our mortgage and finance subsidiaries 404 602 1,234 1,554 Increase in accrued interest (19,194 ) (12,139 ) (19,408 ) (11,897 ) Cash paid for interest, net of capitalized interest $ (9,166 ) $ 7,621 $ 17,268 $ 54,823
[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 $5.0 million and $14.4 million for the three months ended July 31, 2022 and 2021, respectively, and $25.5 million and $48.1 million for the nine months ended July 31, 2022 and 2021, 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 $4.6 million and $4.8 million for the three months ended July 31, 2022 and 2021, respectively, and $9.9 million and $17.1 million for the nine months ended July 31, 2022 and 2021, respectively.
[4] Represents capitalized interest which was included as part of the assets contributed to joint ventures, as discussed in Note 18. There was no impact to the Condensed Consolidated Statement of Operations as a result of these transactions.
[5] Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.