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Note 3
3 Months Ended
Jan. 31, 2012
Home Building Interest [Text Block]
3.  Interest costs incurred, expensed and capitalized were:

   
Three Months Ended
January 31,
 
(In thousands)
 
2012
   
2011
 
             
Interest capitalized at beginning of period
  $ 121,441     $ 136,288  
Plus interest incurred(1)
    36,345       37,827  
Less cost of sales interest expensed
    (12,476 )     (15,626 )
Less other interest expensed(2)(3)
    (21,995 )     (23,985 )
Interest capitalized at end of period(4)
  $ 123,315     $ 134,504  

(1) 
Data does not include interest incurred by our mortgage and finance subsidiaries.

(2)
Other interest expensed is comprised of interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt.  Interest on completed homes and land in planning, which does not qualify for capitalization, is expensed.

(3)
Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest, which is calculated as follows:

   
Three Months Ended January 31,
 
(In thousands)
 
2012
   
2011
 
Other interest expensed
  $ 21,995     $ 23,985  
Interest paid by our mortgage and finance subsidiaries
    476       582  
Increase in accrued interest
    (11,067 )     (8,985 )
Cash paid for interest, net of capitalized interest
  $ 11,404     $ 15,582  

(4)
We have incurred significant inventory impairments in recent years, which are determined based on total inventory including capitalized interest. However, the capitalized interest amounts above are shown gross before allocating any portion of the impairments to capitalized interest.