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Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Apr. 30, 2017
Apr. 30, 2016
Apr. 30, 2017
Apr. 30, 2016
Interest capitalized at beginning of period $ 94,438 $ 117,113 $ 96,688 $ 123,898
Plus interest incurred (1) [1] 39,156 44,224 77,855 86,183
Less cost of sales interest expensed 20,337 21,444 38,659 38,287
Less other interest expensed (2)(3) [2],[3] 22,297 24,084 44,924 45,309
Less interest contributed to unconsolidated joint venture (4) [4] 10,676
Interest capitalized at end of period (5) [5] $ 90,960 $ 115,809 $ 90,960 $ 115,809
[1] Data does not include interest incurred by our mortgage and finance subsidiaries.
[2] 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:
[3] 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, which amounted to $16.0 million and $12.2 million for the three months ended April 30, 2017 and 2016, respectively, and $29.3 million and $26.7 million for the six months ended April 30, 2017 and 2016, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $6.3 million and $11.9 million for the three months ended April 30, 2017 and 2016, respectively, and $15.6 million and $18.6 million for the six months ended April 30, 2017 and 2016, respectively.
[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 17. 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.