6. Accrued Expenses

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


	2011		2010
Land, land development and construction	$	109,574	$	110,301
Compensation and employee benefit		96,037		95,107
Insurance and litigation		130,714		143,421
Commitments to unconsolidated entities		60,130		88,121
Warranty		42,474		45,835
Interest		25,968		26,998
Other		56,154		60,538

	$	521,051	$	570,321

The Company accrues expected warranty costs at the time each home is closed and title and possession have been transferred to the home buyer. Changes in the warranty accrual during fiscal 2011, 2010 and 2009 were as follows (amounts in thousands):


	2011			2010			2009
Balance, beginning of year	$	45,835		$	53,937		$	57,292
Additions — homes closed during the year		8,809			9,147			10,499
Additions (reductions) to accruals for homes closed in prior years		(828	)		(4,684	)		1,697
Charges incurred		(11,342	)		(12,565	)		(15,551	)

Balance, end of year	$	42,474		$	45,835		$	53,937