v3.26.1
Inventory
 6 Months Ended
Apr. 30, 2026
Inventory Disclosure [Abstract]  
Inventory Inventory
Major components of inventory at April 30, 2026 and October 31, 2025 were (amounts in thousands):
April 30, 2026October 31, 2025
Land deposits and costs of future communities$947,963 $843,110 
Land and land development costs3,286,410 3,018,179 
Land and land development costs associated with homes under construction3,967,014 3,738,695 
Total land and land development costs8,201,387 7,599,984 
Homes under construction2,577,971 2,535,219 
Model homes (1)
598,354 543,257 
$11,377,712 $10,678,460 
(1)    Includes the allocated land and land development costs associated with each of our model homes in operation.
The following table provides a summary of the composition of our inventory based on community status at April 30, 2026 and October 31, 2025 (amounts in thousands):
April 30, 2026October 31, 2025
Land controlled for future communities$395,261 $307,229 
Land owned for future communities456,619 406,506 
Operating communities10,525,832 9,964,725 
$11,377,712 $10,678,460 
Operating communities include communities offering homes for sale; communities that have sold all available home sites but have not completed delivery of the homes; and communities preparing to open for sale. The carrying value attributable to operating communities includes the cost of homes under construction, land and land development costs, the carrying cost of home sites in current and future phases of these communities, and the carrying cost of model homes.
The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable, included in home sales cost of revenues, are shown in the table below (amounts in thousands):
 Three months ended April 30,Six months ended April 30,
 2026202520262025
Land controlled for future communities$20,077 $1,674 $24,751 $5,631 
Operating communities12,400 8,125 19,400 20,585 
$32,477 $9,799 $44,151 $26,216 
We recognized $2.3 million of impairment charges on land held for sale during the three-month period ended April 30, 2026. No impairment charges on land held for sale were recognized in the three-month period ended April 30, 2025. We recognized $3.7 million and $1.8 million of impairment charges on land that we no longer plan to develop, which were included in land sales and other cost of revenues during the six-month periods ended April 30, 2026 and 2025.
See Note 14, “Commitments and Contingencies,” for information regarding land purchase commitments.
At April 30, 2026, we evaluated our land purchase contracts to determine whether any of the selling entities were variable interest entities (“VIEs”) and, if they were, whether we were the primary beneficiary of any of them. Under these land purchase contracts, we do not possess legal title to the land; our maximum exposure to loss is generally limited to deposits paid to the sellers and predevelopment costs incurred; and the creditors of the sellers generally have no recourse against us. At April 30, 2026, we determined that 318 land purchase contracts, with an aggregate purchase price of $7.24 billion, on which we had
made aggregate deposits totaling $814.2 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2025, we determined that 349 land purchase contracts, with an aggregate purchase price of $7.30 billion, on which we had made aggregate deposits totaling $724.6 million, were VIEs, but that we were not the primary beneficiary of any VIE related to such land purchase contracts. However, at April 30, 2026 and October 31, 2025, certain contracts were accrued as we concluded we were economically compelled to purchase the land. See Note 7, “Accrued Expenses,” for information regarding liabilities related to consolidated inventory not owned.
Interest incurred, capitalized, and expensed, for the periods indicated, were as follows (amounts in thousands):
 Three months ended April 30,Six months ended April 30,
 2026202520262025
Interest capitalized, beginning of period$199,951 $192,317 $190,844 $179,797 
Interest incurred29,372 35,653 58,919 69,855 
Interest expensed to home sales cost of revenues(27,416)(30,311)(47,496)(50,387)
Interest expensed to land sales and other cost of revenues(207)(624)(207)(638)
Interest capitalized on investments in unconsolidated entities(820)(1,581)(1,677)(3,284)
Previously capitalized interest on investments in unconsolidated entities transferred to inventory112 569 609 680 
Interest capitalized, end of period$200,992 $196,023 $200,992 $196,023