Note 3 - Interest

6 Months Ended

Apr. 30, 2014

Home Building Interest [Abstract]

Home Building Interest [Text Block]

3. Interest

Interest costs incurred, expensed and capitalized were:

	Three Months Ended April 30,		Six Months Ended April 30,
(In thousands)	2014	2013	2014	2013
Interest capitalized at beginning of period	$107,089	$114,429	$105,093	$116,056
Plus interest incurred (1)	36,782	31,965	71,601	64,618
Less cost of sales interest expensed	12,407	11,274	21,897	21,554
Less other interest expensed (2)(3)	23,472	22,632	46,805	46,632
Interest capitalized at end of period(4)	$107,992	$112,488	$107,992	$112,488

(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 April 30,				Six Months Ended April 30,
(In thousands)	2014		2013		2014		2013
Other interest expensed	$23,472		$22,632		$46,805		$46,632
Interest paid by our mortgage and finance subsidiaries	409		631		1,145		1,508
Increase in accrued interest	(5,295	)	(1,600	)	(4,011	)	(9,820	)
Cash paid for interest, net of capitalized interest	$18,586		$21,663		$43,939		$38,320

(4) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.