XML 55 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accrued Expenses (Tables)
 12 Months Ended
Oct. 31, 2017
Payables and Accruals [Abstract]  
Accrued expenses
Accrued expenses at October 31, 2017 and 2016, consisted of the following (amounts in thousands):
 
2017
 
2016
Land, land development and construction
$
146,168

 
$
153,264

Compensation and employee benefits
149,145

 
138,282

Escrow liability
45,209

 
137,396

Self-insurance
149,303

 
126,431

Warranty
329,278

 
370,992

Deferred income
42,798

 
43,488

Interest
36,035

 
34,903

Commitments to unconsolidated entities
8,870

 
5,637

Other
52,547

 
61,907

 
$
959,353

 
$
1,072,300
Changes in the warranty accrual
We accrue for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Warranty costs are accrued based upon historical experience. The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2017, 2016, and 2015 as follows (amounts in thousands):
 
2017
 
2016
 
2015
Balance, beginning of year
$
370,992

 
$
93,083

 
$
86,282

Additions - homes closed during the year
31,798

 
28,927

 
20,934

Addition - liabilities acquired
1,495

 


 


Increase in accruals for homes closed in prior years *
6,226

 
26,689

 
2,661

Reclassification from other accruals
1,082

 


 


Increase to water intrusion reserves (see above) **


 
267,258

 
14,685

Charges incurred
(82,315
)
 
(44,965
)
 
(31,479
)
Balance, end of year
$
329,278

 
$
370,992

 
$
93,083


*
The fiscal 2016 amount included (i) a charge of $9.3 million, which is included in “Cost of sales” in our 2016 Consolidated Statement of Operations and Comprehensive Income and (ii) $17.3 million of non-water intrusion warranty charges expected to be recovered from our insurance carriers and suppliers, which we recorded as a receivable at October 31, 2016 and is included in “Receivables, prepaid expenses, and other assets” on our 2016 Consolidated Balance Sheet.
**
The fiscal 2016 amount included (i) a charge of $125.6 million, which is included in “Cost of sales” in our 2016 Consolidated Statement of Operations and Comprehensive Income and (ii) $141.7 million of water intrusion warranty charges expected to be recovered from our insurance carriers and suppliers, which we recorded as a receivable at October 31, 2016 and is included in “Receivables, prepaid expenses, and other assets” on our 2016 Consolidated Balance Sheet.