Accrued Expenses (Tables)

12 Months Ended

Oct. 31, 2018

Payables and Accruals [Abstract]

Accrued expenses

Accrued expenses at October 31, 2018 and 2017, consisted of the following (amounts in thousands):

	2018		2017
Land, land development and construction	$	213,641	$	146,168
Compensation and employee benefits	159,374		149,145
Escrow liability	32,543		45,209
Self-insurance	168,012		149,303
Warranty	258,831		329,278
Deferred income	42,179		42,798
Interest	40,325		36,035
Commitments to unconsolidated entities	10,553		8,870
Other	48,123		52,547
	$	973,581	$	959,353

Changes in the warranty accrual

The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2018, 2017, and 2016 as follows (amounts in thousands):

	2018			2017			2016
Balance, beginning of year	$	329,278		$	370,992		$	93,083
Additions - homes closed during the year	37,045			31,798			28,927
Addition - liabilities acquired				1,495
Increase in accruals for homes closed in prior years *	6,162			6,226			26,689
Reclassification from other accruals				1,082
Increase to water intrusion reserves **							267,258
Charges incurred	(113,654		)	(82,315		)	(44,965		)
Balance, end of year	$	258,831		$	329,278		$	370,992

* The fiscal 2016 amount included (i) a charge of $9.3 million, which is included in “Cost of revenues” 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 revenues” 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.