Accrued Expenses

9 Months Ended

Jul. 31, 2012

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



	July 31, 2012		October 31, 2011
Land, land development and construction	$	109,612	$	109,574
Compensation and employee benefit	94,600		96,037
Insurance and litigation	114,542		130,714
Commitments to unconsolidated entities	2,101		60,205
Warranty	42,260		42,474
Interest	39,256		25,968
Other	62,351		56,079
	$	464,722	$	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):



	Nine Months Ended July 31,						Three Months Ended July 31,
	2012			2011			2012			2011
Balance, beginning of period	$	42,474		$	45,835		$	42,997		$	46,321
Additions – homes closed during the period	6,994			6,147			3,050			2,248
Addition – liabilities acquired	731
Increase (decrease) in accruals for homes closed in prior periods	1,236			18			(529		)	(629		)
Charges incurred	(9,175		)	(7,810		)	(3,258		)	(3,750		)
Balance, end of period	$	42,260		$	44,190		$	42,260		$	44,190