Accrued Expenses

6 Months Ended

Apr. 30, 2014

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses at April 30, 2014 and October 31, 2013 consisted of the following (amounts in thousands):

	April 30, 2014		October 31, 2013
Land, land development and construction	$	136,781	$	152,674
Compensation and employee benefit	111,664		111,561
Insurance and litigation	92,814		89,104
Warranty	52,579		43,819
Interest	37,444		25,675
Commitments to unconsolidated entities	4,259		3,804
Other	104,132		96,350
	$	539,673	$	522,987

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,
	2014			2013			2014			2013
Balance, beginning of year	$	43,819		$	41,706		$	42,688		$	41,241
Additions - homes closed during the year	7,302			5,223			4,205			2,934
Addition - Shapell liabilities acquired	9,244						9,244
Increase (decrease) in accruals for homes closed in prior years	1,421			(478		)	1,077			(212		)
Charges incurred	(9,207		)	(5,342		)	(4,635		)	(2,854		)
Balance, end of year	$	52,579		$	41,109		$	52,579		$	41,109