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Inventory
 9 Months Ended
Jul. 31, 2024
Inventory Disclosure [Abstract]  
Inventory Inventory
Major components of inventory at July 31, 2024 and October 31, 2023 were (amounts in thousands):
July 31,
2024		October 31,
2023
Land deposits and costs of future communities$571,400 $549,035 
Land and land development costs2,855,478 2,631,147 
Land and land development costs associated with homes under construction3,488,892 2,916,334 
Total land and land development costs6,915,770 6,096,516 
Homes under construction2,784,577 2,515,484 
Model homes (1)497,713 445,578 
$10,198,060 $9,057,578 
(1)    Includes the allocated land and land development costs associated with each of our model homes in operation.
The following table provides a summary of the composition of our inventory based on community status at July 31, 2024 and October 31, 2023 (amounts in thousands):
July 31,
2024		October 31,
2023
Land controlled for future communities$204,529 $173,175 
Land owned for future communities614,473 663,413 
Operating communities9,379,058 8,220,990 
$10,198,060 $9,057,578 
Operating communities include communities offering homes for sale; communities that have sold all available home sites but have not completed delivery of the homes and communities preparing to open for sale. The carrying value attributable to operating communities includes the cost of homes under construction, land and land development costs, the carrying cost of home sites in current and future phases of these communities, and the carrying cost of model homes.
Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”).
The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, and which are included in home sales cost of revenues, are shown in the table below (amounts in thousands):
 Three months ended July 31,Nine months ended July 31,
 2024202320242023
Land controlled for future communities$1,759 $895 $4,518 $9,343 
Land owned for future communities— 369 — 694 
Operating communities3,700 2,100 30,840 12,400 
$5,459 $3,364 $35,358 $22,437 
In addition, we recognized $3.8 million and $4.4 million of impairment charges on land held for sale included in land sales and other cost of revenues during the three-month and nine-month periods ended July 31, 2024, respectively. We recognized $17.7 million of similar impairment charges during the nine-month period ended July 31, 2023. No impairment charges were recognized in land sales and other cost of revenues during the three-month period ended July 31, 2023.
See Note 13, “Commitments and Contingencies,” for information regarding land purchase commitments.
At July 31, 2024, we evaluated our land purchase contracts, including those to acquire land for apartment developments, to determine whether any of the selling entities were variable interest entities (“VIEs”) and, if they were, whether we were the primary beneficiary of any of them. Under these land purchase contracts, we do not possess legal title to the land; our risk is generally limited to deposits paid to the sellers and predevelopment costs incurred; and the creditors of the sellers generally have no recourse against us. At July 31, 2024, we determined that 260 land purchase contracts, with an aggregate purchase price of $4.79 billion, on which we had made aggregate deposits totaling $468.0 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2023, we determined that 251 land
purchase contracts, with an aggregate purchase price of $3.79 billion, on which we had made aggregate deposits totaling $421.4 million, were VIEs and that we were not the primary beneficiary of any VIE related to our land purchase contracts. However, at July 31, 2024 and October 31, 2023, certain contracts were accrued as we concluded we were economically compelled to purchase the land. See Note 6, “Accrued Expenses,” for information regarding liabilities related to consolidated inventory not owned.
Interest incurred, capitalized, and expensed, for the periods indicated, were as follows (amounts in thousands):
 Three months ended July 31,Nine months ended July 31,
 2024202320242023
Interest capitalized, beginning of period$193,478 $211,760 $190,550 $209,468 
Interest incurred33,579 32,624 100,018 107,341 
Interest expensed to home sales cost of revenues(32,803)(37,004)(91,121)(99,642)
Interest expensed to land sales and other cost of revenues(802)(1,258)(1,821)(6,086)
Interest capitalized on investments in unconsolidated entities(2,027)(2,271)(6,734)(7,432)
Previously capitalized interest transferred to investments in unconsolidated entities— — — (244)
Previously capitalized interest on investments in unconsolidated entities transferred to inventory296 296 829 742 
Interest capitalized, end of period$191,721 $204,147 $191,721 $204,147