Note 3 - Interest

6 Months Ended

Apr. 30, 2016

Notes to Financial Statements

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)	2016		2015		2016		2015
Interest capitalized at beginning of period		$117,113		$114,241		$123,898		$109,158
Plus interest incurred (1)		44,224		40,703		86,183		82,175
Less cost of sales interest expensed		21,444		12,013		38,287		23,331
Less other interest expensed (2)(3)		24,084		23,030		45,309		48,101
Less interest contributed to unconsolidated joint venture (4)		-		-		10,676		-
Interest capitalized at end of period (5)		$115,809		$119,901		$115,809		$119,901

(1)	Data does not include interest incurred by our mortgage and finance subsidiaries.
(2)	Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt. Also includes interest on completed homes and land in planning, which does not qualify for capitalization, and therefore, 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 on notes payable, which is calculated as follows:

	Three Months Ended April 30,						Six Months Ended April 30,
(In thousands)	2016			2015			2016		2015
Other interest expensed		$24,084			$23,030			$45,309		$48,101
Interest paid by our mortgage and finance subsidiaries		851			268			1,410		676
Decrease (increase) in accrued interest		(9,948	)		(8,726	)		1,268		(7,716	)
Cash paid for interest, net of capitalized interest		$14,987			$14,572			$47,987		$41,061

(4)	Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in November 2015, as discussed in Note 18. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
(5)	Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.