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Accrued Expenses | 9 Months Ended
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Jul. 31, 2018
Payables and Accruals [Abstract] |
Accrued Expenses | Accrued Expenses Accrued expenses at July 31, 2018 and October 31, 2017 consisted of the following (amounts in thousands):
| July 31, 2018 |  | October 31, 2017
Land, land development, and construction | $ | 166,034 |  |  | $ | 146,168 |
Compensation and employee benefits | 150,679 |  |  | 149,145 |
Escrow liability | 33,105 |  |  | 45,209 |
Self-insurance | 163,330 |  |  | 149,303 |
Warranty | 277,753 |  |  | 329,278 |
Deferred income | 38,102 |  |  | 42,798 |
Interest | 45,809 |  |  | 36,035 |
Commitments to unconsolidated entities | 8,945 |  |  | 8,870 |
Other | 52,327 |  |  | 52,547 |
| $ | 936,084 |  |  | $ | 959,353 |
As previously disclosed in Note 7, “Accrued Expenses” in our 2017 Form 10-K, in response to a significant number of water intrusion claims received in fiscal 2014 and thereafter from owners of stucco and non-stucco homes in communities located in Pennsylvania and Delaware (which are in our Mid-Atlantic region), we reviewed homes built in these communities from 2002 through 2013 to determine whether repairs related to these homes would likely be needed. Our quarterly review process includes an analysis of many factors in these communities to determine whether a claim is likely to be received and the estimated costs to resolve any such claim, including: the closing dates of the homes; the number of claims received; our inspection of homes; an estimate of the number of homes we expect to repair; the type and cost of repairs that have been performed in each community; the estimated costs to remediate pending and future claims; the expected recovery from our insurance carriers and suppliers; and the previously recorded amounts related to these claims. We also monitor legal developments relating to these types of claims and review the volume and relative merits of claims in litigation or arbitration. Based on our review performed as of July 31, 2018, we determined that no adjustments to our previously recorded estimated costs were necessary. Our estimates are predicated on several assumptions for which there is uncertainty including assumptions about, but not limited to, the number of homes to be repaired, the extent of repairs needed, the repair methodology, the cost of those repairs, outcomes of pending litigations, arbitrations, and investigations, and expected recoveries from insurance carriers and suppliers. Due to the degree of judgment required and the potential for variability in the underlying assumptions, it is reasonably possible that our actual costs and recoveries could differ from those recorded, such differences could be material, and therefore, we are unable to estimate the range of any such differences. As of July 31, 2018 and 2017, our recorded aggregate estimated repair costs to be incurred for known and unknown water intrusion claims was $324.4 million, which remains unchanged from the amounts recorded as of October 31, 2017 and 2016. As of July 31, 2018, we recorded an aggregate of $152.6 million of estimated recoveries from our insurance carriers and suppliers for these claims, which also remains unchanged from the amounts recorded as of October 31, 2017 and 2016. We believe our collection of our recorded insurance receivables is probable based on the legal merits that support our coverage positions and the high credit ratings of our carriers; however, due to the complexity of the underlying claims and the variability of the other factors as described above, it is reasonably possible that our actual insurance recoveries could materially differ from those recorded. Our recorded remaining estimated repair costs related to water intrusion were approximately $199.0 million as of July 31, 2018 and $251.8 million as of October 31, 2017. Our recorded remaining expected recoveries from insurance carriers and suppliers were approximately $95.0 million as of July 31, 2018 and $119.7 million as of October 31, 2017. The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands):
| Nine months ended July 31, |  | Three months ended July 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Balance, beginning of period | $ | 329,278 |  |  | $ | 370,992 |  |  | $ | 297,343 |  |  | $ | 355,934 |
Additions – homes closed during the period | 24,588 |  |  | 21,220 |  |  | 9,901 |  |  | 8,519 |
Addition – liabilities acquired in a business acquisition |  |  |  | 1,111 |  |  |  |  |  |  |
Increase in accruals for homes closed in prior years | 4,770 |  |  | 5,539 |  |  | 1,615 |  |  | 2,351 |
Reclassification from other accruals |  |  |  | 1,082 |  |  |  |  |  |  |
Charges incurred | (80,883 | ) |  | (55,579 | ) |  | (31,106 | ) |  | (22,439 | )
Balance, end of period | $ | 277,753 |  |  | $ | 344,365 |  |  | $ | 277,753 |  |  | $ | 344,365 |

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- Definition The entire disclosure for accounts payable and accrued liabilities at the end of the reporting period. + 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 210.5-02.19(a),20,24) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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