[1]

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

[2]

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: 8 Table of Contents 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

[3]

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.

[4]

Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.