Accrued Expenses (Tables)

3 Months Ended

Jan. 31, 2020

Payables and Accruals [Abstract]

Accrued expenses

Accrued expenses at January 31, 2020 and October 31, 2019 consisted of the following (amounts in thousands):

	January 31, 2020		October 31, 2019
Land, land development, and construction	$	169,203	$	192,658
Compensation and employee benefits	149,636		183,592
Escrow liability	36,891		31,587
Self-insurance	192,115		193,405
Warranty	188,916		201,886
Lease liabilities (1)	113,534		—
Deferred income	53,385		51,678
Interest	48,630		31,307
Commitments to unconsolidated entities	9,068		9,283
Other	50,170		55,536
	$	1,011,548	$	950,932

(1)

On November 1, 2019, we adopted ASU 2016-02 which resulted in the establishment of lease liabilities on our Condensed Consolidated Balance Sheet as of January 31, 2020. The Condensed Consolidated Balance Sheet as of October 31, 2019 does not reflect any changes resulting from the adoption of the new standard. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the adoption of ASU 2016-02.

Changes in the warranty accrual

The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands):

	Three months ended January 31,
	2020			2019
Balance, beginning of period	$	201,886		$	258,831
Additions – homes closed during the period	7,024			6,625
Increase (decrease) in accruals for homes closed in prior years	1,218			(691		)
Charges incurred	(21,212		)	(27,439		)
Balance, end of period	$	188,916		$	237,326