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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, 2022
Oct. 31, 2021
Oct. 31, 2020
Interest capitalized at beginning of year $ 58,159 [1] $ 65,010 [1] $ 71,264
Plus interest incurred(1) [2] 134,024 155,514 176,457
Less cost of sales interest expensed (85,240) (84,100) (74,330)
Less other interest expensed(2)(3) [3],[4] 47,343 77,716 103,801
Less interest contributed to unconsolidated joint venture(4) [5] 0 (3,667) (4,580)
Plus interest acquired from unconsolidated joint venture(5) [6] 0 3,118 0
Interest capitalized at end of year(6) [1] $ 59,600 $ 58,159 $ 65,010
[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 October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484
[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 $28.6 million, $57.1 million and $61.9 million for the years ended October 31, 2022, 2021 and 2020, 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 as incurred. This component of other interest was $18.8 million, $20.6 million and $41.9 million for the years ended October 31, 2022, 2021 and 2020, respectively.
[5] Represents capitalized interest which was included as part of the assets contributed to joint ventures, as discussed in Note 20. There was no impact to the Consolidated Statement of Operations as a result of these transactions.
[6] Represents capitalized interest which was included as part of the assets purchased from joint ventures, as discussed in Note 20. There was no impact to the Consolidated Statement of Operations as a result of these transactions.