Accrued Expenses (Tables)

6 Months Ended

Apr. 30, 2020

Payables and Accruals [Abstract]

Accrued expenses

Accrued expenses at April 30, 2020 and October 31, 2019 consisted of the following (amounts in thousands):

	April 30, 2020		October 31, 2019
Land, land development, and construction	$	180,212	$	192,658
Compensation and employee benefits	168,959		183,592
Escrow liability	34,113		31,587
Self-insurance	194,969		193,405
Warranty	157,154		201,886
Lease liabilities (1)	127,754		—
Deferred income	34,904		51,678
Interest	41,351		31,307
Commitments to unconsolidated entities	8,141		9,283
Other	50,986		55,536
	$	998,543	$	950,932

(1)  On November 1, 2019, we adopted ASU 2016-02 which resulted in the establishment of lease liabilities on our Condensed Consolidated Balance Sheet as of January 31, 2020. The Condensed Consolidated Balance Sheet as of October 31, 2019 does not reflect any changes resulting from the adoption of the new standard. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the adoption of ASU 2016-02.

Changes in the warranty accrual

The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands):

	Six months ended April 30,				Three months ended April 30,
	2020		2019		2020		2019
Balance, beginning of period	$	201,886	$	258,831	$	188,916	$	237,326
Additions – homes closed during the period	14,278		14,954		7,254		8,329
Addition – liabilities assumed in a business acquisition	60				60
Increase in accruals for homes closed in prior years	3,579		272		2,361		963
Decrease to water intrusion accrual	(24,400)				(24,400)
Charges incurred	(38,249)		(50,402)		(17,037)		(22,963)
Balance, end of period	$	157,154	$	223,655	$	157,154	$	223,655