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Note 3 - Interest
 6 Months Ended
Apr. 30, 2018
Notes to Financial Statements  
Home Building Interest [Text Block]
3.
Interest
 
Interest costs incurred, expensed and capitalized were:
 
   
Three Months Ended
April 30,
    
Six Months Ended
April 30,
  
(In thousands)
  
2018
    
2017
    
2018
    
2017
  
                                 
Interest capitalized at beginning of period
   $
70,793
     $
94,438
     $
71,051
     $
96,688
  
Plus interest incurred (1)
    
40,014
      
39,156
      
81,179
      
77,855
  
Less cost of sales interest expensed
    
19,364
      
20,337
      
31,656
      
38,659
  
Less other interest expensed (2)(3)
    
26,088
      
22,297
      
55,219
      
44,924
  
Interest capitalized at end of period (4)
   $
65,355
     $
90,960
     $
65,355
     $
90,960
  
 
(
1
)
Data does
not
include interest incurred by our mortgage and finance subsidiaries.
(
2
)
Other interest expensed includes interest that does
not
qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do
not
exceed our debt, which amounted to
$19.9
million and
$16.0
million for the
three
months ended
April 30, 2018
and
2017,
respectively, and
$39.5
million and
$29.3
million for the
six
months ended
April 30, 2018
and
2017,
respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does
not
qualify for capitalization, and therefore, is expensed. This component of other interest was
$6.2
million and
$6.3
million for the
three
months ended
April 30, 2018
and
2017,
respectively, and
$15.8
million and
$15.6
million for the
six
months ended
April 30, 2018
and
2017,
respectively.
(
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 on notes payable, which is calculated as follows:
 
 
   
Three Months Ended
April 30,
    
Six Months Ended
April 30,
  
(In thousands)
  
2018
    
2017
    
2018
    
2017
  
Other interest expensed
   $
26,088
     $
22,297
     $
55,219
     $
44,924
  
Interest paid by our mortgage and finance subsidiaries
    
585
      
455
      
1,186
      
1,084
  
(Increase) decrease in accrued interest
    
(23,448
 )    
591
      
3,302
      
1,354
  
Cash paid for interest, net of capitalized interest
   $
3,225
     $
23,343
     $
59,707
     $
47,362
  
 
(
4
)
Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.