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Note 3 - Summary of Significant Accounting Policies - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($)
$ in Thousands
12 Months Ended
Oct. 31, 2018
Oct. 31, 2017
Oct. 31, 2016
Interest capitalized at beginning of year $ 71,051 [1] $ 96,688 [1] $ 123,898
Plus interest incurred(1) [2] 161,048 160,203 166,824
Less cost of sales interest expensed 60,685 88,536 92,391
Less other interest expensed(2)(3) [3],[4] 103,297 97,304 90,967
Less interest contributed to unconsolidated joint venture(4) [5] 10,676
Interest capitalized at end of year(5) [1] $ 68,117 $ 71,051 $ 96,688
[1] Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.
[2] Data does not include interest incurred by our mortgage and finance subsidiaries.
[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: Year Ended (In thousands) October 31, 2018 October 31, 2017 October 31, 2016 Other interest expensed $103,297 $97,304 $90,967 Interest paid by our mortgage and finance subsidiaries 2,478 1,944 2,866 Decrease (increase) in accrued interest 6,241 (9,412) 7,963 Cash paid for interest, net of capitalized interest $112,016 $89,836 $101,796
[4] 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 $76.2 million, $69.1 million and $50.4 million for the years ended October 31, 2018, 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 $27.1 million, $28.2 million and $40.6 million for the years ended October 31, 2018, 2017 and 2016.
[5] 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 20. There was no impact to the Consolidated Statement of Operations as a result of this transaction.