Interest

Interest costs incurred, expensed and capitalized were:

	Three Months Ended January 31,
(In thousands)	2019	2018
Interest capitalized at beginning of period	$68,117	$71,051
Plus interest incurred(1)	38,853	41,165
Less cost of sales interest expensed	10,242	12,292
Less other interest expensed(2)(3)	22,273	29,131
Interest capitalized at end of period(4)	$74,455	$70,793

(

)

Data does

not

include interest incurred by our mortgage and finance subsidiaries.

(

)

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

$17.6

million and

$19.6

million for the

three

months ended

January 31, 2019

and

2018,

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

$4.7

million and

$9.6

million for the

three

months ended

January 31, 2019

and

2018,

respectively.

(

)

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 January 31,
(In thousands)	2019	2018
Other interest expensed	$22,273	$29,131
Interest paid by our mortgage and finance subsidiaries	689	601
Decrease in accrued interest	17,477	26,750
Cash paid for interest, net of capitalized interest	$40,439	$56,482

(

)

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