Accrued Expenses

6 Months Ended

Apr. 30, 2012

Accrued expenses at April 30, 2012 and October 31, 2011 consisted of the following (amounts in thousands):



	April 30, 2012		October 31, 2011
Land, land development and construction	$	103,501	$	109,574
Compensation and employee benefit	97,596		96,037
Insurance and litigation	120,309		130,714
Commitments to unconsolidated entities	2,077		60,205
Warranty	42,997		42,474
Interest	28,976		25,968
Other	61,818		56,079
	$	457,274	$	521,051

The Company accrues for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Warranty costs are accrued based upon historical experience. The table below provides, for the periods indicated, a reconciliation of the changes in the Company’s warranty accrual (amounts in thousands):



	Six Months Ended April 30,						Three Months Ended April 30,
	2012			2011			2012			2011
Balance, beginning of period	$	42,474		$	45,835		$	43,109		$	45,928
Additions – homes closed during the period	3,944			3,899			2,073			1,970
Addition – liabilities acquired	731
Increase (decrease) in accruals for homes closed in prior periods	1,765			647			(18		)	713
Charges incurred	(5,917		)	(4,060		)	(2,167		)	(2,290		)
Balance, end of period	$	42,997		$	46,321		$	42,997		$	46,321