Accrued Expenses

12 Months Ended

Oct. 31, 2025

Accrued expenses at October 31, 2025 and 2024, consisted of the following (amounts in thousands):


	2025		2024
Land, land development and construction	$	237,003	$	356,613
Liabilities related to consolidated inventory not owned	754,824		388,778
Compensation and employee benefits	209,822		208,394
Escrow liability associated with our wholly owned captive title company	72,233		62,038
Self-insurance	237,353		242,306
Warranty	248,391		189,258
Lease liabilities	128,340		128,588
Deferred income	52,524		51,138
Interest	32,433		29,669
Commitments to unconsolidated entities	33,142		38,661
Other	55,854		57,405
	$	2,061,919	$	1,752,848

At the time each home is closed and title and possession are transferred to the home buyer, we record an initial accrual for expected warranty costs on that home. Our initial accrual for expected warranty costs is based upon historical warranty claim experience. Adjustments to our warranty liabilities related to homes delivered in prior periods are recorded in the period in which a change in our estimate occurs. The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2025, 2024, and 2023 (amounts in thousands):


	2025		2024		2023
Balance, beginning of year	$	189,258	$	206,171	$	164,409
Additions - homes closed during the year	43,022		36,186		44,949

Increase in accruals for homes closed in prior years - net	10,326		3,150		12,739
Increase (decrease) in accruals expected to be recovered from third parties (1)	44,000		(6,000)		58,000

Reclassification from self-insurance accruals	—		—		696

Charges incurred	(38,215)		(50,249)		(74,622)
Balance, end of year	$	248,391	$	189,258	$	206,171

(1) The increase (decrease) in accruals for warranty charges are expected to be recovered from our insurance carriers or suppliers, which are recorded as receivables included in “Receivables, prepaid expenses, and other assets” on our Consolidated Balance Sheets.