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Note 3 - Interest

9 Months Ended

Jul. 31, 2014

Home Building Interest [Text Block] [Abstract]

3.	Interest

Interest costs incurred, expensed and capitalized were:

	Three Months Ended July 31,		Nine Months Ended July 31,
(In thousands)	2014	2013	2014	2013

Interest capitalized at beginning of period	$107,992	$112,488	$105,093	$116,056
Plus interest incurred (1)	36,472	33,195	108,073	97,813
Less cost of sales interest expensed	15,827	13,757	37,724	35,311
Less other interest expensed (2)(3)	19,880	21,949	66,685	68,581
Interest capitalized at end of period(4)	$108,757	$109,977	$108,757	$109,977

(1)	Data does not include interest incurred by our mortgage and finance subsidiaries.

(2)

Other interest expensed consists 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 July 31,		Nine Months Ended July 31,
(In thousands)	2014	2013	2014	2013
Other interest expensed	$19,880	$21,949	$66,685	$68,581
Interest paid by our mortgage and finance subsidiaries	379	731	1,524	2,239
Decrease (increase) in accrued interest	5,245	5,018	1,234	(4,802	)
Cash paid for interest, net of capitalized interest	$25,504	$27,698	$69,443	$66,018

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