4. Accrued Expenses

Accrued expenses at July 31, 2011 and October 31, 2010 consisted of the following (amounts in thousands):


	July 31,		October 31,
	2011		2010
Land, land development and construction	$	106,174	$	110,301
Compensation and employee benefits		92,546		95,107
Insurance and litigation		131,878		143,421
Commitments to unconsolidated entities		64,532		88,121
Warranty		44,190		45,835
Interest		29,862		26,998
Other		55,264		60,538

	$	524,446	$	570,321

The Company accrues for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Costs are accrued based upon historical experience. Changes in the warranty accrual for the nine-month and three-month periods ended July 31, 2011 and 2010 were as follows (amounts in thousands):


	Nine months ended July 31,						Three months ended July 31,
	2011			2010			2011			2010
Balance, beginning of period	$	45,835		$	53,937		$	46,321		$	52,769
Additions — homes closed during the period		6,147			6,758			2,248			2,753
Increase (decrease) in accruals for homes closed in prior periods		18			(2,292	)		(629	)		(2,896	)
Charges incurred		(7,810	)		(8,862	)		(3,750	)		(3,085	)

Balance, end of period	$	44,190		$	49,541		$	44,190		$	49,541