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Inventory | 6 Months Ended
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Apr. 30, 2023
Inventory Disclosure [Abstract] |
Inventory | Inventory Inventory at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands):
| April 30, 2023 |  | October 31, 2022
Land controlled for future communities | $ | 170,613 |  |  | $ | 240,751 |
Land owned for future communities | 876,561 |  |  | 808,851 |
Operating communities | 8,060,704 |  |  | 7,683,724 |
| $ | 9,107,878 |  |  | $ | 8,733,326 |
Operating communities include communities offering homes for sale; communities that have sold all available home sites but have not completed delivery of the homes 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. Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”). The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, which are included in home sales cost of revenues, are shown in the table below (amounts in thousands):
| Three months ended April 30, |  | Six months ended April 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Land controlled for future communities | $ | 5,844 |  |  | $ | 2,192 |  |  | $ | 8,448 |  |  | $ | 2,985 |
Land owned for future communities | 325 |  |  | — |  |  | 325 |  |  | 1,440 |
Operating communities | 4,900 |  |  | — |  |  | 10,300 |  |  | — |
| $ | 11,069 |  |  | $ | 2,192 |  |  | $ | 19,073 |  |  | $ | 4,425 |
We have also recognized $4.7 million and $17.7 million of impairment charges on land held for sale included in land sales and other cost of revenues during the three-month and six-month periods ended April 30, 2023, respectively. We recognized $5.2 million of similar charges during the three-month and six-month periods ended April 30, 2022. See Note 13, “Commitments and Contingencies,” for information regarding land purchase commitments. At April 30, 2023, we evaluated our land purchase contracts, including those to acquire land for apartment developments, to determine whether any of the selling entities were variable interest entities (“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 April 30, 2023, we determined that 236 land purchase contracts, with an aggregate purchase price of $3.75 billion, on which we had made aggregate deposits totaling $414.6 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2022, we determined that 237 land purchase contracts, with an aggregate purchase price of $3.89 billion, on which we had made aggregate deposits totaling $417.6 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 April 30, |  | Six months ended April 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Interest capitalized, beginning of period | $ | 215,197 |  |  | $ | 247,942 |  |  | $ | 209,468 |  |  | $ | 253,938 |
Interest incurred | 37,862 |  |  | 31,888 |  |  | 74,716 |  |  | 62,893 |
Interest expensed to home sales cost of revenues | (37,558) |  |  | (40,822) |  |  | (62,638) |  |  | (73,259) |
Interest expensed to land sales and other cost of revenues | (1,350) |  |  | (219) |  |  | (4,827) |  |  | (3,628) |
Interest capitalized on investments in unconsolidated entities | (2,668) |  |  | (1,516) |  |  | (5,161) |  |  | (2,806) |
Previously capitalized interest transferred to investments in unconsolidated entities | — |  |  | — |  |  | (244) |  |  | — |
Previously capitalized interest on investments in unconsolidated entities transferred to inventory | 277 |  |  | 60 |  |  | 446 |  |  | 195 |
Interest capitalized, end of period | $ | 211,760 |  |  | $ | 237,333 |  |  | $ | 211,760 |  |  | $ | 237,333 |

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- Definition The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -URI https://asc.fasb.org/topic&trid=2126998 + Details
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