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Note 3

6 Months Ended

Apr. 30, 2013

Home Building Interest [Text Block]

3. Interest costs incurred, expensed and capitalized were:

		Three Months Ended April 30,								Six Months Ended April 30,
(In thousands)		2013				2012				2013				2012

Interest capitalized at beginning of period		$	114,429			$	123,315			$	116,056			$	121,441
Plus interest incurred(1)			31,965				34,493				64,618				70,838
Less cost of sales interest expensed			11,274				13,317				21,554				25,793
Less other interest expensed(2)(3)			22,632				26,056				46,632				48,051
Interest capitalized at end of period(4)		$	112,488			$	118,435			$	112,488			$	118,435

(1)		Data does not include interest incurred by our mortgage and finance subsidiaries.
(2)		Other interest expensed is comprised of interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt. Interest on completed homes and land in planning, which does not qualify for capitalization, is expensed.
(3)		Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest, which is calculated as follows:

		Three Months Ended April 30,								Six Months Ended April 30,
(In thousands)		2013				2012				2013				2012
Other interest expensed		$	22,632			$	26,056			$	46,632			$	48,051
Interest paid by our mortgage and finance subsidiaries			631				468				1,508				944
(Increase)/decrease in accrued interest			(1,600	)			14,350				(9,820	)			3,283
Cash paid for interest, net of capitalized interest		$	21,663			$	40,874			$	38,320			$	52,278

(4)	Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.