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Inventory | 9 Months Ended
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Jul. 31, 2025
Inventory Disclosure [Abstract] |
Inventory | Inventory Major components of inventory at July 31, 2025 and October 31, 2024 were (amounts in thousands):
| July 31, 2025 |  | October 31, 2024
Land deposits and costs of future communities | $ | 866,503 |  |  | $ | 620,040 |
Land and land development costs | 2,982,669 |  |  | 2,532,221 |
Land and land development costs associated with homes under construction | 3,828,611 |  |  | 3,617,266 |
Total land and land development costs | 7,677,783 |  |  | 6,769,527 |
Homes under construction | 2,851,445 |  |  | 2,458,541 |
Model homes (1) | 542,321 |  |  | 484,857 |
| $ | 11,071,549 |  |  | $ | 9,712,925 |
(1) Includes the allocated land and land development costs associated with each of our model homes in operation. The following table provides a summary of the composition of our inventory based on community status at July 31, 2025 and October 31, 2024 (amounts in thousands):
| July 31, 2025 |  | October 31, 2024
Land controlled for future communities | $ | 275,929 |  |  | $ | 200,166 |
Land owned for future communities | 422,007 |  |  | 353,030 |
Operating communities | 10,373,613 |  |  | 9,159,729 |
| $ | 11,071,549 |  |  | $ | 9,712,925 |
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 believed not to be recoverable, included in home sales cost of revenues, are shown in the table below (amounts in thousands):
| Three months ended July 31, |  | Nine months ended July 31,
| 2025 |  | 2024 |  | 2025 |  | 2024
Land controlled for future communities | $ | 15,815 |  |  | $ | 1,759 |  |  | $ | 21,446 |  |  | $ | 4,518 |
Operating communities | 7,500 |  |  | 3,700 |  |  | 28,085 |  |  | 30,840 |
| $ | 23,315 |  |  | $ | 5,459 |  |  | $ | 49,531 |  |  | $ | 35,358 |
We recognized $0.7 million and $2.6 million of impairment charges on land held for sale included in land sales and other cost of revenues during the three-month and nine-month periods ended July 31, 2025, respectively. We recognized $3.8 million and $4.4 million of similar impairment charges during the three-month and nine-month periods ended July 31, 2024, respectively. See Note 13, “Commitments and Contingencies,” for information regarding land purchase commitments. At July 31, 2025, 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 maximum exposure to loss 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 July 31, 2025, we determined that 335 land purchase contracts, with an aggregate purchase price of $7.07 billion, on which we had made aggregate deposits totaling $755.4 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2024, we determined that 297 land purchase contracts, with an aggregate purchase price of $5.59 billion, on which we had made aggregate deposits totaling $522.1 million, were VIEs and that we were not the primary beneficiary of any VIE related to our land purchase contracts. However, at July 31, 2025 and October 31, 2024, certain contracts were accrued as we concluded we were economically compelled to purchase the land. See Note 6, “Accrued Expenses,” for information regarding liabilities related to consolidated inventory not owned. Interest incurred, capitalized, and expensed, for the periods indicated, were as follows (amounts in thousands):
| Three months ended July 31, |  | Nine months ended July 31,
| 2025 |  | 2024 |  | 2025 |  | 2024
Interest capitalized, beginning of period | $ | 196,023 |  |  | $ | 193,478 |  |  | $ | 179,797 |  |  | $ | 190,550 |
Interest incurred | 31,379 |  |  | 33,579 |  |  | 101,235 |  |  | 100,018 |
Interest expensed to home sales cost of revenues | (30,163) |  |  | (32,803) |  |  | (80,550) |  |  | (91,121) |
Interest expensed to land sales and other cost of revenues | (1,712) |  |  | (802) |  |  | (2,351) |  |  | (1,821) |
Interest capitalized on investments in unconsolidated entities | (1,369) |  |  | (2,027) |  |  | (4,653) |  |  | (6,734) |
Previously capitalized interest on investments in unconsolidated entities transferred to inventory | 649 |  |  | 296 |  |  | 1,329 |  |  | 829 |
Interest capitalized, end of period | $ | 194,807 |  |  | $ | 191,721 |  |  | $ | 194,807 |  |  | $ | 191,721 |

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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 -Topic 330 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/330/tableOfContent + Details
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