Accrued Expenses (Tables)

9 Months Ended

Jul. 31, 2020

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


	July 31, 2020		October 31, 2019
Land, land development, and construction	$	184,805	$	192,658
Compensation and employee benefits	184,024		183,592
Escrow liability	23,919		31,587
Self-insurance	198,638		193,405
Warranty	158,399		201,886
Lease liabilities (1)	125,231		—
Deferred income	35,427		51,678
Interest	45,854		31,307
Commitments to unconsolidated entities	8,499		9,283
Other	50,026		55,536
	$	1,014,822	$	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):


	Nine months ended July 31,						Three months ended July 31,
	2020		2019		2020		2019
Balance, beginning of period	$	201,886	$	258,831	$	157,154	$	223,655
Additions – homes closed during the period	23,252		23,771		8,975		8,817
Addition – liabilities assumed in a business acquisition	60		425				425
Increase in accruals for homes closed in prior years	5,730		1,834		2,150		1,562

Decrease to water intrusion accrual	(24,400)
Charges incurred	(48,129)		(75,942)		(9,880)		(25,540)
Balance, end of period	$	158,399	$	208,919	$	158,399	$	208,919