Accrued Expenses

3 Months Ended

Jan. 31, 2012

Accrued Expenses [Abstract]

Accrued Expenses

7. Accrued Expenses

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

		September 30,		September 30,
	January 31, 2012		October 31, 2011
Land, land development and construction	$	103,955	$	109,574
Compensation and employee benefit		91,016		96,037
Insurance and litigation		127,260		130,714
Commitments to unconsolidated entities		2,609		60,130
Warranty		43,109		42,474
Interest		29,611		25,968
Other		53,854		56,154
	$	451,414	$	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. 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):

		September 30,			September 30,
	Three months ended January 31,
	2012			2011
Balance, beginning of period	$	42,474		$	45,835
Additions – homes closed during the period		1,871			1,929
Addition – liabilities acquired		731
Increase (decrease) in accruals for homes closed in prior periods		1,783			(66	)
Charges incurred		(3,750	)		(1,770	)
Balance, end of period	$	43,109		$	45,928