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Inventory | 3 Months Ended
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Jan. 31, 2016
Inventory Disclosure [Abstract] |
Inventory | Inventory Inventory at January 31, 2016 and October 31, 2015 consisted of the following (amounts in thousands):
| January 31, 2016 |  | October 31, 2015
Land controlled for future communities | $ | 78,191 |  |  | $ | 75,214 |
Land owned for future communities | 1,913,008 |  |  | 2,033,447 |
Operating communities | 5,188,851 |  |  | 4,888,855 |
| $ | 7,180,050 |  |  | $ | 6,997,516 |
Operating communities include communities offering homes for sale, communities that have sold all available home sites but have not completed delivery of the homes, communities that were previously offering homes for sale but are temporarily closed due to business conditions or nonavailability of improved home sites and that are expected to reopen within 12 months of the end of the fiscal period being reported on, and communities preparing to open for sale. The carrying value attributable to operating communities includes the cost of homes under construction, land and land development costs, the carrying cost of home sites in current and future phases of these communities, and the carrying cost of model homes. Communities that were previously offering homes for sale but are temporarily closed due to business conditions and that do not have any remaining backlog and are not expected to reopen within 12 months of the end of the fiscal period being reported on have been classified as land owned for future communities. Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”). Information regarding the classification, number, and carrying value of these temporarily closed communities, as of the dates indicated, is provided in the table below.
| January 31, 2016 |  | October 31, 2015
Land owned for future communities: |  |  |
Number of communities | 21 |  |  | 15 |
Carrying value (in thousands) | $ | 144,979 |  |  | $ | 119,138 |
Operating communities: |  |  |
Number of communities | 7 |  |  | 11 |
Carrying value (in thousands) | $ | 39,901 |  |  | $ | 63,668 |
The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable, for the periods indicated, are shown in the table below (amounts in thousands):
| Three months ended January 31,
| 2016 |  | 2015
Land controlled for future communities | $ | 381 |  |  | $ | 244 |
Land owned for future communities | 300 |  |  |  |
Operating communities | 600 |  |  | 900 |
| $ | 1,281 |  |  | $ | 1,144 |
See Note 12, “Fair Value Disclosures,” for information regarding the number of operating communities that we tested for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and the fair values of those communities, net of impairment charges. See Note 14, “Commitments and Contingencies,” for information regarding land purchase commitments. At January 31, 2016, we evaluated our land purchase contracts to determine whether any of the selling entities were VIEs and, if they were, whether we were the primary beneficiary of any of them. Under these land purchase contracts, we do not possess legal title to the land. Our risk is generally limited to deposits paid to the sellers and predevelopment costs incurred, and the creditors of the sellers generally have no recourse against us. At January 31, 2016, we determined that 59 land purchase contracts, with an aggregate purchase price of $640.5 million, on which we had made aggregate deposits totaling $41.0 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2015, we determined that 61 land purchase contracts, with an aggregate purchase price of $663.6 million, on which we had made aggregate deposits totaling $45.0 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. Interest incurred, capitalized, and expensed, for the periods indicated, was as follows (amounts in thousands):
| Three months ended January 31,
| 2016 |  | 2015
Interest capitalized, beginning of period | $ | 373,128 |  |  | $ | 356,180 |
Interest incurred | 40,107 |  |  | 40,504 |
Interest expensed to cost of revenues | (32,023 | ) |  | (28,377 | )
Write-off against other income | (275 | ) |  | (1,328 | )
Interest capitalized on investments in unconsolidated entities | (1,007 | ) |  | (2,751 | )
Interest capitalized, end of period | $ | 379,930 |  |  | $ | 364,228 |

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- Definition The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.6) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a, b, c -Article 5 + Details
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