Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jul. 31, 2017 | Sep. 01, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | HOVNANIAN ENTERPRISES INC | |
Entity Central Index Key | 357,294 | |
Trading Symbol | hov | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,307,607 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 132,285,310 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 | |
Income taxes receivable - including net deferred tax benefits | $ 283,633 | [1] | |
Assets | 1,822,319 | 2,354,956 | [1] |
Cash and cash equivalents | 285,732 | 346,765 | |
Restricted cash and cash equivalents | 25,400 | 22,900 | |
Income taxes payable | 1,796 | [1] | |
Liabilities | 2,293,481 | 2,483,466 | [1] |
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at July 31, 2017 and at October 31, 2016 | 135,299 | 135,299 | [1] |
Paid in capital - common stock | 707,516 | 706,137 | [1] |
Accumulated deficit | (1,200,217) | (856,183) | [1] |
Treasury stock - at cost – 11,760,763 shares of Class A common stock and 691,748 shares of Class B common stock at July 31, 2017 and October 31, 2016 | (115,360) | (115,360) | [1] |
Total stockholders’ equity deficit | (471,162) | (128,510) | [1] |
Total liabilities and equity | 1,822,319 | 2,354,956 | [1] |
Common Class A [Member] | |||
Common stock | 1,440 | 1,438 | [1] |
Common Class B [Member] | |||
Common stock | 160 | 159 | [1] |
Homebuilding [Member] | |||
Investments in and advances to unconsolidated joint ventures | 108,560 | 100,502 | |
Receivables, deposits and notes, net | 38,847 | 49,726 | [1] |
Property, plant and equipment, net | 52,436 | 50,332 | [1] |
Prepaid expenses and other assets | 43,464 | 46,762 | [1] |
Assets | 1,712,597 | 1,874,093 | [1] |
Cash and cash equivalents | 278,486 | 339,773 | [1] |
Restricted cash and cash equivalents | 1,955 | 3,914 | [1] |
Sold and unsold homes and lots under development | 867,703 | 899,082 | [1] |
Land and land options held for future development or sale | 182,617 | 175,301 | [1] |
Consolidated inventory not owned | 138,529 | 208,701 | [1] |
Total inventories | 1,188,849 | 1,283,084 | [1] |
Accounts payable and other liabilities | 331,048 | 369,228 | [1] |
Customers’ deposits | 37,853 | 37,429 | [1] |
Liabilities from inventory not owned, net of debt issuance costs | 98,507 | 150,179 | [1] |
Revolving credit facility | 52,000 | 52,000 | [1] |
Notes payable and term loan, net of discount and debt issuance costs | 1,598,543 | 1,605,758 | [1] |
Liabilities | 2,202,116 | 2,311,021 | [1] |
Homebuilding [Member] | Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | |||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | 70,818 | 82,115 | |
Homebuilding [Member] | Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | |||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | 13,347 | 14,312 | [1] |
Financial Services [Member] | |||
Other assets | 102,476 | 190,238 | |
Assets | 109,722 | 197,230 | |
Cash and cash equivalents | 7,246 | 6,992 | [1] |
Liabilities | $ 89,569 | $ 172,445 | [1] |
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Millions | Jul. 31, 2017 | Oct. 31, 2016 | [1] |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 | |
Preferred stock, shares issued (in shares) | 5,600 | 5,600 | |
Preferred stock, shares outstanding (in shares) | 5,600 | 5,600 | |
Preferred stock, liquidation preference | $ 140 | $ 140 | |
Common Class A [Member] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, shares issued (in shares) | 144,046,073 | 143,806,775 | |
Common stock, shares held in Treasury (in shares) | 11,760,763 | 11,760,763 | |
Common Class B [Member] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 | |
Common stock, shares issued (in shares) | 15,999,355 | 15,942,809 | |
Common stock, shares held in Treasury (in shares) | 691,748 | 691,748 | |
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Total revenues | $ 592,035 | $ 716,850 | $ 1,729,979 | $ 1,947,178 | |
Inventory impairment loss and land option write-offs | 9,334 | 22,915 | |||
Corporate general and administrative | 15,698 | 14,885 | 47,425 | 43,804 | |
Other interest | [1],[2] | 23,559 | 23,159 | 68,483 | 68,468 |
Other operations | (26) | 957 | 1,466 | 3,488 | |
Total expenses | 596,069 | 713,356 | 1,742,565 | 1,971,656 | |
Loss on extinguishment of debt | (42,258) | (34,854) | |||
Loss from unconsolidated joint ventures | (3,881) | (2,401) | (10,109) | (5,227) | |
(Loss) income before income taxes | (50,173) | 1,093 | (57,549) | (29,705) | |
Tax provision (benefit) | 287,036 | 1,567 | 286,485 | (4,597) | |
Net loss | $ (337,209) | $ (474) | $ (344,034) | $ (25,108) | |
Loss per common share, basic (in dollars per share) | $ (2.28) | $ 0 | $ (2.33) | $ (0.17) | |
Weighted-average number of common shares outstanding, basic (in shares) | 147,748 | 147,412 | 147,628 | 147,383 | |
Loss per common share, assuming dilution (in dollars per share) | $ (2.28) | $ 0 | $ (2.33) | $ (0.17) | |
Weighted-average number of common shares outstanding, assuming dilution (in shares) | 147,748 | 147,412 | 147,628 | 147,383 | |
State and Local Jurisdiction [Member] | |||||
Tax provision (benefit) | $ 8,523 | $ 1,434 | $ 10,797 | $ 4,995 | |
Domestic Tax Authority [Member] | |||||
Tax provision (benefit) | 278,513 | 133 | 275,688 | (9,592) | |
Homebuilding [Member] | |||||
Sale of homes | 574,282 | 640,386 | 1,673,250 | 1,823,318 | |
Land sales and other revenues | 2,760 | 59,979 | 14,393 | 72,146 | |
Total homebuilding | 577,042 | 700,365 | 1,687,643 | 1,895,464 | |
Cost of sales, excluding interest | 478,886 | 583,783 | 1,399,353 | 1,583,979 | |
Cost of sales interest | 19,371 | 28,406 | 58,030 | 66,693 | |
Inventory impairment loss and land option write-offs | 4,197 | 1,565 | 9,334 | 22,915 | |
Total cost of sales | 502,454 | 613,754 | 1,466,717 | 1,673,587 | |
Selling, general and administrative | 45,517 | 51,685 | 135,392 | 155,560 | |
Total homebuilding expenses | 547,971 | 665,439 | 1,602,109 | 1,829,147 | |
Total expenses | 587,202 | 704,440 | 1,719,483 | 1,944,907 | |
Financial Services [Member] | |||||
Financial services | 14,993 | 16,485 | 42,336 | 51,714 | |
Financial services | 8,867 | 8,916 | 23,082 | 26,749 | |
Total expenses | $ 8,867 | $ 8,916 | $ 23,082 | $ 26,749 | |
[1] | 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: | ||||
[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 $17.2 million and $10.1 million for the three months ended July 31, 2017 and 2016, respectively, and $46.5 million and $36.8 million for the nine months ended July 31, 2017 and 2016, 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 $6.4 million and $13.1 million for the three months ended July 31, 2017 and 2016, respectively, and $22.0 million and $31.6 million for the nine months ended July 31, 2017 and 2016, respectively. |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity (Unaudited) - 9 months ended Jul. 31, 2017 - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total | |
Balance (in shares) at Oct. 31, 2016 | 132,046,012 | 15,251,061 | 5,600 | |||||
Balance at Oct. 31, 2016 | $ 1,438 | $ 159 | $ 135,299 | $ 706,137 | $ (856,183) | $ (115,360) | $ (128,510) | [1] |
Stock options, amortization and issuances (in shares) | 48,250 | |||||||
Stock options, amortization and issuances | 467 | 467 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 188,548 | 59,046 | ||||||
Restricted stock amortization, issuances and forfeitures | $ 2 | $ 1 | 912 | 915 | ||||
Conversion of Class B to class A common stock (in shares) | 2,500 | (2,500) | ||||||
Conversion of Class B to class A common stock | ||||||||
Net loss | (344,034) | (344,034) | ||||||
Balance at Jul. 31, 2017 | $ 1,440 | $ 160 | $ 135,299 | $ 707,516 | $ (1,200,217) | $ (115,360) | $ (471,162) | |
Balance (in shares) at Jul. 31, 2017 | 132,285,310 | 15,307,607 | 5,600 | |||||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (344,034) | $ (25,108) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 3,212 | 2,608 |
Compensation from stock options and awards | 1,606 | 1,777 |
Amortization of bond discounts and deferred financing costs | 11,385 | 9,209 |
Gain on sale and retirement of property and assets | (123) | (616) |
Loss from unconsolidated joint ventures | 10,109 | 5,227 |
Distributions of earnings from unconsolidated joint ventures | 1,260 | 677 |
Loss on extinguishment of debt | 34,854 | |
Inventory impairment and land option write-offs | 9,334 | 22,915 |
Deferred income tax benefit | 285,579 | (2,462) |
(Increase) decrease in assets: | ||
Origination of mortgage loans | (743,467) | (887,281) |
Sale of mortgage loans | 831,079 | 879,817 |
Restricted cash, receivables, prepaids, deposits and other assets | 14,235 | 10,533 |
Inventories | 84,901 | 154,909 |
State income tax payable | (149) | (617) |
Customers’ deposits | 424 | 1,312 |
Accounts payable, accrued interest and other accrued liabilities | (54,753) | 21,656 |
Net cash provided by operating activities | 145,452 | 194,556 |
Cash flows from investing activities: | ||
Proceeds from sale of property and assets | 209 | 643 |
Purchase of property, equipment and other fixed assets and acquisitions | (5,034) | (5,094) |
Investments in and advances to unconsolidated joint ventures | (33,403) | (39,089) |
Distributions of capital from unconsolidated joint ventures | 13,976 | 6,403 |
Net cash used in investing activities | (22,568) | (36,176) |
Cash flows from financing activities: | ||
Proceeds from mortgages and notes | 153,517 | 147,170 |
Payments related to mortgages and notes | (165,935) | (200,273) |
Proceeds from model sale leaseback financing programs | 10,177 | 24,297 |
Payments related to model sale leaseback financing programs | (17,544) | (24,917) |
Proceeds from land bank financing programs | 10,663 | 162,468 |
Payments related to land bank financing programs | (56,683) | (70,749) |
Proceeds from senior secured notes | 840,000 | |
Payments related to senior secured, senior, senior amortizing and senior exchangeable notes | (861,976) | (263,994) |
Borrowings from revolving credit facility | 5,000 | |
Net (payments) proceeds related to mortgage warehouse lines of credit | (83,525) | 6,781 |
Deferred financing costs from land bank financing programs and note issuances | (12,611) | (7,866) |
Net cash used in financing activities | (183,917) | (222,083) |
Net decrease in cash and cash equivalents | (61,033) | (63,703) |
Cash and cash equivalents balance, beginning of period | 346,765 | 253,745 |
Cash and cash equivalents balance, end of period | 285,732 | 190,042 |
Supplemental disclosure of cash flow: | ||
Interest, net of capitalized interest (see Note 3 to the Condensed Consolidated Financial Statements) | 88,914 | 80,493 |
Income taxes | 1,055 | (1,517) |
Related to Mortgage Company [Member] | ||
Cash flows from investing activities: | ||
(Increase) decrease in restricted cash | 1,686 | 88 |
Related to Letters of Credit [Member] | ||
Cash flows from investing activities: | ||
(Increase) decrease in restricted cash | $ (2) | $ 873 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Basis of Presentation Hovnanian Enterprises, Inc. and Subsidiaries (the “Company”, “we”, “us” or “our”) has reportable segments consisting of six 16 The accompanying unaudited Condensed Consolidated Financial Statements include our accounts and those of all wholly-owned subsidiaries after elimination of all significant intercompany balances and transactions. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10 10 X 10 October 31, 2016. In the opinion of management, all adjustments for interim periods presented have been made, which include normal recurring accruals and deferrals necessary for a fair presentation of our condensed consolidated financial position, results of operations and cash flows. The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and these differences could have a significant impact on the Condensed Consolidated Financial Statements. Results for interim periods are not October 31, 2016 not Reclassifications In November 2016, 2015 03, $24.5 $1.3 not $3.0 $20.2 2017 November 2016, 2015 15 835 30 2015 15” 2015 03. 2015 15 no |
Note 2 - Stock Compensation
Note 2 - Stock Compensation | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 2. Stock Compensation The Company had total stock-based compensation expense of $ 0.1 $1.6 three nine July 31, 2017, $1.0 $1.8 $0.8 $1.5 three nine July 31, 2016, three nine July 31, 2017 $0.2 $0.4 $0.3 three July 31, 2016 $1.6 nine July 31, 2016, $2.1 no $0.5 nine July 31, 2016. |
Note 3 - Interest
Note 3 - Interest | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Home Building Interest [Text Block] | 3. Interest Interest costs incurred, expensed and capitalized were: Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Interest capitalized at beginning of period $ 90,960 $ 115,809 $ 96,688 $ 123,898 Plus interest incurred (1) 39,089 40,300 116,944 126,483 Less cost of sales interest expensed 19,371 28,406 58,030 66,693 Less other interest expensed (2)(3) 23,559 23,159 68,483 68,468 Less interest contributed to unconsolidated joint venture (4) - - - 10,676 Interest capitalized at end of period (5) $ 87,119 $ 104,544 $ 87,119 $ 104,544 ( 1 Data does not ( 2 Other interest expensed includes interest that does not not $17.2 $10.1 three July 31, 2017 2016, $46.5 $36.8 nine July 31, 2017 2016, which does not $6.4 $13.1 three July 31, 2017 2016, $22.0 $31.6 nine July 31, 2017 2016, ( 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 July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Other interest expensed $ 23,559 $ 23,159 $ 68,483 $ 68,468 Interest paid by our mortgage and finance subsidiaries 465 706 1,549 2,116 Decrease in accrued interest 17,528 8,641 18,882 9,909 Cash paid for interest, net of capitalized interest $ 41,552 $ 32,506 $ 88,914 $ 80,493 ( 4 Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in November 2015, 17. no ( 5 Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Note 4 - Reduction of Inventory
Note 4 - Reduction of Inventory to Fair Value | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Inventory Impairments and Land Option Cost Write-offs [Text Block] | 4. Reduction of Inventory to Fair Value We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they may If the expected undiscounted cash flows are less than the carrying amount, then the community is written down to its fair value. We estimate the fair value of each impaired community by determining the present value of the estimated future cash flows at a discount rate commensurate with the risk of the respective community. For the nine July 31, 2017, 18.3% 19.8%. nine July 31, 2016, 16.8% 18.5%. No may During the nine July 31, 2017 2016, 380 418 communities under development and held for future development or sale, respectively, for impairment indicators through preparation and review of detailed budgets or other market indicators of impairment. We performed detailed impairment calculations during the nine July 31, 2017 2016 10 22 $82.7 $95.5 nine July 31, 2017 2016, three 11 $45.8 $47.8 20%. $3.2 $7.4 one seven $15.9 $37.0 three nine July 31, 2017, $1.3 $16.4 two 12 $5.4 $50.8 three nine July 31, 2016, nine July 31, 2017 nine July 31, 2016 The Condensed Consolidated Statements of Operations line entitled “Homebuilding: Inventory impairment loss and land option write-offs” also includes write-offs of options and approval, engineering and capitalized interest costs that we record when we redesign communities and/or abandon certain engineering costs and we do not not Total aggregate write-offs related to these items were $1.0 $0.2 three July 31, 2017 2016, $1.9 $6.5 nine July 31, 2017 2016, first three 2017 first three 2016. not three July 31, 2017 2016 1,200 1,570, 2,739 5,089 nine July 31, 2017 2016, We decide to mothball (or stop development on) certain communities when we determine that the current performance does not When we decide to mothball a community, the inventory is reclassified on our Condensed Consolidated Balance Sheets from “Sold and unsold homes and lots under development” to “Land and land options held for future development or sale.” During the first three 2017, not three two July 31, 2017 October 31, 2016, 24 29 $61.6 $74.4 $239.0 $296.3 We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a third 360 20 40 38, July 31, 2017 October 31, 2016, $70.9 $79.2 not $62.7 $69.7 not We have land banking arrangements, whereby we sell our land parcels to land bankers and they provide us an option to purchase back finished lots on a predetermined basis. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC 360 20 40 38, July 31, 2017 October 31, 2016, $67.6 $129.5 not $35.8 $80.5 not |
Note 5 - Variable Interest Enti
Note 5 - Variable Interest Entities | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 5. Variable Interest Entities The Company enters into land and lot option purchase contracts to procure land or lots for the construction of homes. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not not Under the requirements of ASC 810, may In compliance with ASC 810, not 810 July 31, 2017 October 31, 2016, not We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at July 31, 2017, $48.6 $942.1 not |
Note 6 - Warranty Costs
Note 6 - Warranty Costs | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 6. Warranty Costs General liability insurance for homebuilding companies and their suppliers and subcontractors is very difficult to obtain. The availability of general liability insurance is limited due to a decreased number of insurance companies willing to underwrite for the industry. In addition, those few insurers willing to underwrite liability insurance have significantly increased the premium costs. To date, we have been able to obtain general liability insurance but at higher premium costs with higher deductibles. Our subcontractors and suppliers have advised us that they have also had difficulty obtaining insurance that also provides us coverage. As a result, we have an owner controlled insurance program for certain of our subcontractors whereby the subcontractors pay us an insurance premium (through a reduction of amounts we would otherwise owe such subcontractors for their work on our homes) based on the risk type of the trade. We absorb the liability associated with their work on our homes as part of our overall general liability insurance at no nine July 31, 2017 2016, $3.0 $3.1 We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible. This accrual is expensed as selling, general and administrative costs. For homes delivered in fiscal 2017 2016, $20 2017 2016 $0.25 $5 2017 2016 $21 not three nine July 31, 2017 2016 Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Balance, beginning of period $ 117,207 $ 136,706 $ 121,144 $ 135,053 Additions - Selling, general and administrative 2,639 4,247 8,403 13,162 Additions - Cost of sales 4,434 4,426 11,436 12,347 Charges incurred during the period (5,489 ) (5,942 ) (22,192 ) (21,125 ) Changes to pre-existing reserves - - - - Balance, end of period $ 118,791 $ 139,437 $ 118,791 $ 139,437 Warranty accruals are based upon historical experience. We engage a third not Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, were $0.5 $0.2 three July 31, 2017 2016, $0.7 $3.9 nine July 31, 2017 2016, first three 2016, two |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingent Liabilities | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 7. Commitments and Contingent Liabilities We are involved in litigation arising in the ordinary course of business, none These laws and regulations often provide broad discretion to the administering governmental authorities. This can delay or increase the cost of development or homebuilding. We also are subject to a variety of local, state, federal and foreign laws and regulations concerning protection of health and the environment, including those regulating the emission or discharge of materials into the environment, the management of storm water runoff at construction sites, the handling, use, storage and disposal of hazardous substances, impacts to wetlands and other sensitive environments, and the remediation of contamination at properties that we have owned or developed or currently own or are developing (“environmental laws”). The particular environmental laws that apply to any given community vary greatly according to the community site, the site’s environmental conditions and the present and former uses of the site. These environmental laws may may may In March 2013, 1990s. ’s request. In August 2013, not may not April 2014 March 2017 The Grandview at Riverwalk Port Imperial Condominium Association, Inc. filed a construction defect lawsuit against Hovnanian Enterprises, Inc. and several of its affiliates, including K. Hovnanian at Port Imperial Urban Renewal II, LLC, K. Hovnanian Const ruction Management, Inc., K. Hovnanian Companies, LLC, K. Hovnanian Enterprises, Inc., K. Hovnanian North East, Inc. aka and/or dba K. Hovnanian Companies North East, Inc., K. Hovnanian Construction II, Inc., K. Hovnanian Cooperative, Inc., K. Hovnanian Development of New Jersey, Inc., and K. Hovnanian Holdings NJ, LLC, as well as the project architect, the geotechnical engineers and various construction contractors for the project alleging various construction defects, design defects and geotechnical issues totaling approximately $41.3 1 2 The parties reached a settlement on the construction defect issues prior to trial, but attempts to settle the subsidence, building classification issue and Consumer Fraud Act claims were unsuccessful. The trial commenced on April 17, 2017 third June 1, 2017, $3 $9 ’s counsel fees, per the statute. The jury also found in favor of Plaintiff on its veil piercing theory. The parties have fully briefed post-trial motions on three 1 2 3 September 29, 2017 three $0 $9 may The Condominium Association of a second not $70 iscovery is ongoing in this matter, and the trial is scheduled for January 2018. not We anticipate that increasingly stringent requirements will be imposed on developers and homebuilders in the future. Although we cannot reliably predict the extent of any effect these requirements may |
Note 8 - Restricted Cash and De
Note 8 - Restricted Cash and Deposits | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 8. Restricted Cash and Deposits Cash represents cash deposited in checking accounts. Cash equivalents include certificates of deposit, Treasury bills and government money market funds with maturities of 90 may, July 31, 2017 October 31, 2016, $6.4 $9.4 Restricted cash and cash equivalents on the Condensed Consolidated Balance Sheets totaled $25.4 $22.9 July 31, 2017 October 31, 2016, 10. Also included in this balance were ( 1 $0.3 $20.6 July 31, 2017, $2.2 $15.1 October 31, 2016, 2 $2.8 July 31, 2017 $3.9 October 31, 2016 Total Homebuilding Customers ’ deposits are shown as a liability on the Condensed Consolidated Balance Sheets. These liabilities are significantly more than the applicable periods’ restricted cash balances because in some states, the deposits are not |
Note 9 - Mortgage Loans Held fo
Note 9 - Mortgage Loans Held for Sale | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 9. Mortgage Loans Held for Sale Our mortgage banking subsidiary originates mortgage loans, primarily from the sale of our homes. Such mortgage loans are sold in the secondary mortgage market within a short period of time of origination. Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. We have elected the fair value option to record loans held for sale and therefore these loans are recorded at fair value with the changes in the value recognized in the Condensed Consolidated Statements of Operations in “Revenues: Financial services.” We currently use forward sales of mortgage-backed securities (“MBS”), interest rate commitments from borrowers and mandatory and/or best efforts forward commitments to sell loans to third not At July 31, 2017 October 31, 2016, $65.4 $147.4 10 may not July 31, 2017 2016, 94 and 130 not The activity in our loan origination reserves during the three nine July 31, 2017 2016 Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Loan origination reserves, beginning of period $ 3,782 $ 8,306 $ 8,137 $ 8,025 Provisions for losses during the period $ 41 45 $ 120 203 Adjustments to pre-existing provisions for losses from changes in estimates (51 ) (27 ) $ (4,485 ) 96 Payments/settlements (197 ) (197 ) Loan origination reserves, end of period $ 3,772 $ 8,127 $ 3,772 $ 8,127 |
Note 10 - Mortgages and Notes P
Note 10 - Mortgages and Notes Payable | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Line of Credit [Text Block] | 10. Mortgages and Notes Payable We had nonrecourse mortgage loans for certain communities totaling $70.8 $82.1 July 31, 2017 October 31, 2016, of $170.9 $201.8 5.5% 4.9% July 31, 2017 October 31, 2016, $13.3 $14.3 July 31, 2017 October 31, 2016, 8.9% July 31, 2017 8.8% October 31, 2016, July 31, 2017, October 31 $0.3 2017, $1.4 2018, $1.5 2019, $1.7 2020, $1.8 2021 $6.6 2021. In June 2013, five $75.0 The Credit Facility does not 8.0% 2019, 11. not two first July 31, 2017 $52.0 $15.0 October 31, 2016, $52.0 $17.9 July 31, 2017, In addition to the Credit Facility, we have certain stand-alone cash collateralized letter of credit agreements and facilities under which there was a total of $1.7 July 31, 2017 October 31, 2016, July 31, 2017 October 31, 2016, $1.7 Our wholly owned mortgage banking subsidiary, K. Hovnanian American Mortgage, LLC (“K. Hovnanian Mortgage”), originates mortgage loans primarily from the sale of our homes. Such mortgage loans and related servicing rights are sold in the secondary mortgage market within a short period of time. In certain instances, we retain the servicing rights for a small amount of loans. Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”), which was amended on July 31, 2017 July 31, 2018, $50.0 1.23% July 31, 2017, 2.5% 2.63% July 31, 2017 October 31, 2016, $24.7 $44.1 K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Customers Bank (“Customers Master Repurchase Agreement”), which was amended on February 17, 2017, which is a short-term borrowing facility that provides up to $50.0 February 16, 2018. 2.5% 5.25% July 31, 2017 October 31, 2016, $31.2 $38.8 K. Hovnanian Mortgage also has a secured Master Repurchase Agreement with Comerica Bank (“Comerica Master Repurchase Agreement”), which was amended on June 23, 2017 June 21, 2018. $50.0 Interest is payable monthly at the current LIBOR rate, subject to a floor of 0.25%, 2.5%. July 31, 2017 October 31, 2016, $6.2 $29.8 K. Hovnanian Mortgage had a secured Master Repurchase Agreement with Credit Suisse First Boston Mortgage Capital LLC which was a short-term borrowing facility that provided up to $50.0 February 21, 2017. not no July 31, 2017. October 31, 2016, $32.9 The Chase Master Repurchase Agreement, Customers Master Repurchase Agreement and Comerica Master Repurchase Agreement (together, the “Master Repurchase Agreements”) require K. Hovnanian Mortgage to satisfy and maintain specified financial ratios and other financial condition tests. Because of the extremely short period of time mortgages are held by K. Hovnanian Mortgage before the mortgages are sold to investors (generally a period of a few weeks), the immateriality to us on a consolidated basis of the size of the Master Repurchase Agreements, the levels required by these financial covenants, our ability based on our immediately available resources to contribute sufficient capital to cure any default, were such conditions to occur, and our right to cure any conditions of default based on the terms of the applicable agreement, we do not July 31, 2017, |
Note 11 - Senior Notes and Term
Note 11 - Senior Notes and Term Loan | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 11. Senior Notes and Term Loan Senior Notes and Term Loan balances as of July 31, 2017 October 31, 2016, (In thousands) July 31, 2017(1)(2) October 31, 2016(1)(2) Senior Secured Term Loan, net of debt issuance costs $ 72,699 $ 72,646 Senior Secured Notes: 7.25% Senior Secured First Lien Notes due October 15, 2020 $ - $ 569,641 10.0% Senior Secured Second Lien Notes due October 15, 2018 (net of discount) - 68,951 9.125% Senior Secured Second Lien Notes due November 15, 2020 - 143,337 9.5% Senior Secured Notes due November 15, 2020 74,298 74,140 2.0% Senior Secured Notes due November 1, 2021 (net of discount) 53,049 53,022 5.0% Senior Secured Notes due November 1, 2021 (net of discount) 133,292 131,998 10.0% Senior Secured Notes due July 15, 2022 435,060 - 10.5% Senior Secured Notes due July 15, 2024 395,507 - Total Senior Secured Notes, net of debt issuance costs $ 1,091,206 $ 1,041,089 Senior Notes: 7.0% Senior Notes due January 15, 2019 $ 131,839 $ 148,800 8.0% Senior Notes due November 1, 2019 234,084 247,348 Total Senior Notes, net of debt issuance costs $ 365,923 $ 396,148 11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs $ 2,018 $ 6,152 Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs $ 53,155 $ 57,298 ( 1 July 31, 2017 October 31, 2016 $13.5 $32.4 ( 2 1, 2015 03 November 2016. 2017 $20.2 October 31, 2016, July 31, 2017 $15.9 General Except for K. Hovnanian, the issuer of the notes, our home mortgage subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures and certain of our title insurance subsidiaries, we and each of our subsidiaries are guarantors of the senior secured term loan and senior secured, senior, senior amortizing and senior exchangeable notes outstanding at July 31, 2017 ( 5.0% 2021 “5.0% 2021 2.0% 2021 “2.0% 2021 5.0% 2021 “2021 9.5% 2020 “9.5% 2020 2021 not K. Hovnanian's other indebtedness. The Term Loan Credit Agreement (defined below) and the indentures governing the notes outstanding at July 31, 2017 not ’s ability and that of certain of its subsidiaries, including K. Hovnanian, to incur additional indebtedness (other than nonrecourse indebtedness, certain permitted indebtedness and refinancing indebtedness (under the Term Loans (defined below) and the 9.5% 2020 may not January 15, 2021 ( no February 15, 2021 ( 10.0% 2022 “10.0% 2022 10.5% 2024 “10.5% 2024 7.0% 2019 “7.0% 8.0% 2019 “8.0% 7.0% “2019 may not July 16, 2024)), 2019 10.0% 2022 and 10.5% 2024 not July 31, 2017, If our consolidated fixed charge coverage ratio, as defined in the agreements governing our debt instruments (other than the senior exchangeable notes discussed below), is less than 2.0 1.0, not 7.625% not Under the terms of our debt agreements, we have the right to make certain redemptions and prepayments and, depending on market conditions and covenant restrictions, may may Any liquidity-enhancing transaction will depend on identifying counterparties, negotiation of documentation and applicable closing conditions and any required approvals. Due to covenant restrictions in our debt instruments, we are currently limited in the amount of debt we can incur that does not Fiscal 2017 During the nine July 31, 2017, $17.5 7.0% $14.0 8.0% 6,925 $6.9 $30.8 $7.8 $0.4 9.5% 2020 fourth 2016 third 2017 On July 27, 2017, K. Hovnanian issued $440.0 10.0% 2022 $400.0 10.5% 2024 $575,912,000 7.25% 2020 “7.25% $87,321,000 9.125% 2020 “9.125% 7.25% "2020 $75,000,000 10.0% “10.0% 7.25% 9.125% 10.0% 7.25% 9.125% 10.0% October 15, 2017 November 15, 2017 $1,088,000 7.25% $57,679,000 9.125% not 2020 $42.3 The 10.0% 2022 July 15, 2022 10.0% January 15 July 15 January 15, 2018, January 1 July 1, may 10.0% 2022 July 15, 2019 100.0% may 10.0% 2022 105.0% July 15, 2019, 102.50% July 15, 2020 100.0% July 15, 2021. may 35% 10.0% 2022 July 15, 2019 110.0% The 10.5% 2024 July 15, 2024 10.5% January 15 July 15 January 15, 2018, January 1 July 1, may 10.5% 2024 July 15, 2020 100.0% may 10.5% 2024 105.25% July 15, 2020, 102.625% July 15, 2021 100.0% July 15, 2022. may 35.0% 10.5% 2024 July 15, 2020 110.50% All of K. Hovnanian ’s obligations under the 10.0% 2022 10.5% 2024 10.0% 2022 10.5% 2024 10.0% 2022 10.5% 2024 10.0% 2022 10.5% 2024 10.0% 2022 10.5% 2024 10.0% 2022 10.5% 2024 In connection with the issuance of the 10.0% 2022 10.5% 2024 10.0% 2022 10.5% 2024 The indenture governing the 10.0% 2022 10.5% 2024 July 27, 2017 —General”. Other Secured Obligations Our $75.0 August 1, 2019 ( ’s 7.0% October 15, 2018, October 15, 2018, 7.0% January 15, 2021, October 15, 2018) 7.0% 6.0%, September 8, 2018, may February 1, 2019 1.0% February 1, 2019 Our 9.5% 2020 November 15, 2020, 9.50% February 15 August 15 February 15, 2017, February 1 August 1, may 9.5% 2020 November 15, 2018 100.0% November 15, 2018, may 9.5% 2020 100.0% may 35.0% 9.5% 2020 November 15, 2018 109.50% The 5.0% 2021 2.0% 2021 2021 100.0% 1.0% All of K. Hovnanian ’s obligations under the Term Loan Facility are guaranteed by the Notes Guarantors. The Term Loan Facility and the guarantees thereof are secured, subject to permitted liens and other exceptions, on a first 10.0% 2022 10.5% 2024 first first 9.5% 2020 9.5% 2020 first 2021 At July 31, 2017, 544.3 not may $202.5 July 31, 2017, $1.7 The guarantees of the JV Holdings Secured Group with respect to the 2021 9.5% 2020 first July 31, 2017, 1 $77.7 2 $150.9 not may 3 $84.5 July 31, 2017; not not 2021 not Senior Notes K. Hovnanian ’s 7.0% 101.75% January 15, 2017 100.0% January 15, 2018. K. Hovnanian ’s 8.0% August 1, 2019 100.0% August 1, 2019, may 100.0% Units On October 2, 2012, $100,000,000 6.0% 100,000 Each $1,000 1 zero December 1, 2017 ( no $768.51 $1,000 2 December 1, 2017 ( $231.49 11.0% December 1, 2017. may may Each Senior Exchangeable Note had an initial principal amount of $768.51 $1,000 5.17% may 5:00 December 1, 2017. 185.5288 $1,000 $5.39 July 31, 2017, 18,305 3.4 first 2013. September 2016, 20,823 $20.6 November 2016, 6,925 $6.9 nine July 31, 2017, 2017”. On each June 1 December 1 ( $30.00 June 1, 2013 $39.83 6.0% $1,000 Each installment will constitute a payment of interest (at a rate of 11.0% |
Note 12 - Per Share Calculation
Note 12 - Per Share Calculation | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 12. Per Share Calculation Basic earnings per share is computed by dividing net income (loss) (the “numerator”) by the weighted-average number of common shares outstanding, adjusted for nonvested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of options and nonvested shares of restricted stock, as well as common shares issuable upon exchange of our Senior Exchangeable Notes issued as part of our Units. Any options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. All outstanding nonvested shares that contain nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two two ’s restricted common stock (“nonvested shares”) are considered participating securities. There were no three nine July 31, 2017 2016. three nine July 31, 2017, 10.0 10.1 2012 three nine July 31, 2016, 15.2 were excluded from the computation of diluted earnings per share because we had a net loss for the period. In addition, shares related to out-of-the money stock options that could potentially dilute basic earnings per share in the future that were not 4.5 4.6 three nine July 31, 2017, 6.8 7.3 three nine July 31, 2016, |
Note 13 - Preferred Stock
Note 13 - Preferred Stock | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | 13. Preferred Stock On July 12, 2005, 5,600 7.625% $25,000 not 7.625%. not 1/1000th three nine July 31, 2017 2016, not not |
Note 14 - Common Stock
Note 14 - Common Stock | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Common Stock [Text Block] | 14. Common Stock Each share of Class A Common Stock entitles its holder to one ten 110.0% one one On August 4, 2008, 382 382. 382 5% 50 382. one August 15, 2008. August 15, 2008, 4.9% 4.9% may August 15, 2018, December 5, 2008. December 5, 2008, 382 5% 5% 5% 5% 5% On July 3, 2001, 4 There were no three nine July 31, 2017. July 31, 2017, may 0.5 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The total income tax expense of $287.0 $286.5 three nine July 31, 2017, not T he total income tax expense of $1.6 three July 31, 2016 $4.6 nine July 31, 2016 no 2002, The permanent difference related to stock compensation arose because for tax purposes, the amount of stock compensation the Compa ny expenses is the amount reported on an associate’s W- 2 first nine 2016 not 2. 2016 ten 2016, 2016. The federal specified liabi lity loss refund of taxes in fiscal year 2002 October 31, 2016. 2012 172 1 ten October 31, 2002. February 2016 second 2016. Our state NOLs of $2.2 2017 2036. $301.7 2017 2021; $253.9 2022 2026; $1,327.3 2027 2031; $348.0 2032 2036. Deferred federal and state income tax assets primarily represent the deferred tax benefits arising from temporary differences between book and tax income which will be recognized in future years as an offset ag ainst future taxable income. If the combination of future years’ income (or loss) and the reversal of the timing differences results in a loss, such losses can be carried forward to future years. In accordance with ASC 740, 740 not” As o f July 31, 2017, 740. not not $922 July 31, 2017 1. Recent financial results , especially the $50.2 third 2017 $42.3 three July 31, 2017. 740, one 2. In the third 2017, a debt refinancing/restructuring transaction which, by extending our debt maturities, will enable us to allocate cash to invest in new communities and grow our community count to get back to sustained profitability. (Positive Objective Evidence) 3. The refinancing discussed above will increase our interest incurred in fiscal 2018 $23.4 4. We incurred pre-tax losses during the housing market decline and the slower than expected housing market recovery. (Negative Objective Evidence) 5. We exited two two ill be able to redeploy capital to better performing markets, which over time should improve our profitability. (Positive Subjective Evidence) 6. Evidence of a sustained recovery in the housing markets in which we operate, supported by economic data showing h ousing starts, homebuilding volume and prices all increasing and forecasted to continue to increase. (Positive Subjective Evidence) 7. The historical cyclicality of the U.S. housing market, a more restrictive mortgage lending environment compared to before th e housing downturn, the uncertainty of the overall US economy and government policies and consumer confidence, all or any of which could continue to hamper a faster, stronger recovery of the housing market. (Negative Subjective Evidence) |
Note 16 - Operating and Reporti
Note 16 - Operating and Reporting Segments | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 16. Operating and Reporting Segments Our operating segments are components of our business for which discrete financial information is available and reviewed regularly by the chief operating decision maker, our Chief Executive Officer, to evaluate performance and make operating decisions. Based on this criteria, each of our communities qualifies as an operating segment, and therefore, it is impractical to provide segment disclosures for this many segments. As such, we have aggregated the homebuilding operating segments into six Our homebuilding operating segments are aggregated into reportable segments based primarily upon geographic proximity, similar regulatory environments, land acquisition characteristics and similar methods used to construct and sell homes. Our reportable segments consist of the following six 2016, third 2016, Homebuilding: ( 1 ) Northeast (New Jersey and Pennsylvania ) ( 2 Mid-Atlantic (Delaware, Maryland, Virginia, Washington D.C. and West Virginia) ( 3 Midwest (Illinois and Ohio) ( 4 Southeast (Florida, Georgia and South Carolina) ( 5 Southwest (Arizona and Texas) ( 6 West (California) Financial Services Operations of the Company ’s Homebuilding segments primarily include the sale and construction of single-family attached and detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. In addition, from time to time, operations of the homebuilding segments include sales of land. Operations of the Company’s Financial Services segment include mortgage banking and title services provided to the homebuilding operations’ customers. We do not Corporate and unallocated primarily represents operations at our headquarters in Red Bank, New Jersey. This includes our executive offices, information services, human resources, corporate accounting, training, treasury, process redesign, internal audit, construction services, and administration of insurance, quality and safety. It also includes interest income and interest expense resulting from interest incurred that cannot be capitalized in inventory in the Homebuilding segments, as well as the gains or losses on extinguishment of debt from any debt repurchases or exchanges. Evaluation of segment performance is based primarily on operating earnings from continuing operations before provision for income taxes (“Income (loss) before income taxes”). Income (loss) before income taxes for the Homebuilding segments consist of revenues generated from the sales of homes and land, income (loss) from unconsolidated entities, management fees and other income, less the cost of homes and land sold, selling, general and administrative expenses and interest expense. Income before income taxes for the Financial Services segment consist of revenues generated from mortgage financing, title insurance and closing services, less the cost of such services and selling, general and administrative expenses incurred by the Financial Services segment. Operational results of each segment are not Financial information relating to the Company ’s segment operations was as follows: Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Revenues: Northeast $ 39,956 $ 69,989 $ 144,481 $ 196,539 Mid-Atlantic 113,298 111,739 314,124 295,546 Midwest 41,052 72,581 126,773 249,132 Southeast 68,435 96,323 181,654 186,873 Southwest 209,295 248,546 617,959 729,606 West 104,523 101,158 301,897 237,831 Total homebuilding 576,559 700,336 1,686,888 1,895,527 Financial services 14,993 16,485 42,336 51,714 Corporate and unallocated 483 29 755 (63 ) Total revenues $ 592,035 $ 716,850 $ 1,729,979 $ 1,947,178 (Loss) income before income taxes: Northeast $ (5,737 ) $ (995 ) $ (7,553 ) $ (4,945 ) Mid-Atlantic 3,714 3,467 8,514 7,161 Midwest (3,313 ) (2,452 ) (5,771 ) (8,034 ) Southeast (1,580 ) (5,621 ) (1,446 ) (14,710 ) Southwest 19,010 20,532 50,718 55,392 West 5,873 3,297 7,436 (6,989 ) Homebuilding income before income taxes 17,967 18,228 51,898 27,875 Financial services 6,126 7,569 19,254 24,965 Corporate and unallocated (1) (74,266 ) (24,704 ) (128,701 ) (82,545 ) ( Loss) income before income taxes $ (50,173 ) $ 1,093 $ (57,549 ) $ (29,705 ) ( 1 three July 31, 2017 $15.7 $17.2 $42.3 $0.9 nine July 31, 2017 $47.4 $46.5 $34.9 $0.1 (In thousands) July 31, 2017 October 31, 2016 Assets: Northeast $ 183,486 $ 219,363 Mid-Atlantic 280,711 292,899 Midwest 104,962 111,596 Southeast 246,251 226,124 Southwest 335,601 341,472 West 197,816 269,400 Total homebuilding 1,348,827 1,460,854 Financial services 109,722 197,230 Corporate and unallocated(1) 363,770 696,872 Total assets $ 1,822,319 $ 2,354,956 ( 1 $283.6 October 31, 2016. |
Note 17 - Investments in Uncons
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 17. Investments in Unconsolidated Homebuilding and Land Development Joint Ventures We enter into homebuilding and land development joint ventures from time to time as a means of accessing lot positions, expanding our market opportunities, establishing strategic alliances, managing our risk profile, leveraging our capital base and enhancing returns on capital. Our homebuilding joint ventures are generally entered into with third third ’s members or other third In November 2015, new joint venture to which the Company contributed a land parcel that had been mothballed by the Company, but on which construction by the joint venture has now begun. Upon formation of the joint venture, the Company received $25.7 third 2016, eight one $29.8 first 2017, one three $11.2 The tables set forth below summarize the combined financial information related to our unconsolidated homebuilding and land development joint ventures that are accounted for under the equity method. (Dollars in thousands) July 31, 2017 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 38,501 $ 223 $ 38,724 Inventories 661,510 8,582 670,092 Other assets 29,817 - 29,817 Total assets $ 729,828 $ 8,805 $ 738,633 Liabilities and equity: Accounts payable and accrued liabilities $ 108,799 $ 469 $ 109,268 Notes payable 313,436 489 313,925 Total liabilities 422,235 958 423,193 Equity of: Hovnanian Enterprises, Inc. 84,538 3,196 87,734 Others 223,055 4,651 227,706 Total equity 307,593 7,847 315,440 Total liabilities and equity $ 729,828 $ 8,805 $ 738,633 Debt to capitalization ratio 50 % 6 % 50 % (Dollars in thousands) October 31, 2016 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 48,542 $ 1,478 $ 50,020 Inventories 516,947 11,010 527,957 Other assets 25,865 - 25,865 Total assets $ 591,354 $ 12,488 $ 603,842 Liabilities and equity: Accounts payable and accrued liabilities $ 72,302 $ 1,812 $ 74,114 Notes payable 214,911 2,261 217,172 Total liabilities 287,213 4,073 291,286 Equity of: Hovnanian Enterprises, Inc. 88,379 3,220 91,599 Others 215,762 5,195 220,957 Total equity 304,141 8,415 312,556 Total liabilities and equity $ 591,354 $ 12,488 $ 603,842 Debt to capitalization ratio 41 % 21 % 41 % As of July 31, 2017 October 31, 2016, $20.8 $8.9 On our Condensed Consolidated Balance Sheets, our “Investments in and advances to unconsolidated joint ventures” amounted to $108.6 $100.5 July 31, 2017 October 31, 2016, For the Three Months Ended July 31, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 62,610 $ 1,789 $ 64,399 Cost of sales and expenses (70,411 ) (1,873 ) (72,284 ) Joint venture net loss $ (7,801 ) $ (84 ) $ (7,885 ) Our share of net loss $ (3,966 ) $ (42 ) $ (4,008 ) For the Three Months Ended July 31, 2016 (In thousands) Homebuilding Land Development Total Revenues $ 31,145 $ 1,219 $ 32,364 Cost of sales and expenses (37,245 ) (1,143 ) (38,388 ) Joint venture net (loss) income $ (6,100 ) $ 76 $ (6,024 ) Our share of net (loss) income $ (2,418 ) $ 38 $ (2,380 ) For the Nine Months Ended July 31, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 214,103 $ 4,649 $ 218,752 Cost of sales and expenses (225,594 ) (4,696 ) (230,290 ) Joint venture net loss $ (11,491 ) $ (47 ) $ (11,538 ) Our share of net loss $ (10,230 ) $ (24 ) $ (10,254 ) For the Nine Months Ended July 31, 2016 (In thousands) Homebuilding Land Development Total Revenues $ 77,171 $ 2,836 $ 80,007 Cost of sales and expenses (92,904 ) (2,462 ) (95,366 ) Joint venture net (loss) income $ (15,733 ) $ 374 $ (15,359 ) Our share of net (loss) income $ (5,267 ) $ 187 $ (5,080 ) “Loss from unconsolidated joint ventures” is reflected as a separate line in the accompanying Condensed Consolidated Statements of Operations and reflects our proportionate share of the income or loss of these unconsolidated homebuilding and land development joint ventures. The difference between our share of the income or loss from these unconsolidated joint ventures in the tables above compared to the Condensed Consolidated Statements of Operations is due primarily to the reclassification of the intercompany portion of management fee income from certain joint ventures and the deferral of income for lots purchased by us from certain joint ventures. To compensate us for the administrative services we provide as the manager of certain joint ventures we receive a management fee based on a percentage of the applicable joint venture’s revenues. These management fees, which totaled $2.5 $1.2 three July 31, 2017 2016, $7.6 $3.1 nine July 31, 2017 2016, In determining whether or not In most cases, the presumption is overcome because the joint venture agreements require that both partners agree on establishing the operations and capital decisions of the partnership, including budgets in the ordinary course of business. Typically, our unconsolidated joint ventures obtain separate project specific mortgage financing. The amount of financing is generally targeted to be no 50% 50%. 810 10 not not |
Note 18 - Recent Accounting Pro
Note 18 - Recent Accounting Pronouncements | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 18. Recent Accounting Pronouncements In May 2014, No. 2014 09, 606 2014 09” 2014 09 1 2 3 4 5 2014 09 605, August 2015, issued ASU 2015 14 one 2014 09, November 1, 2018. December 15, 2016. However, due to the nature of our operations, we expect to identify similar performance obligations under ASU 2014 09 In August 2014, 2014 15, ’s Ability to Continue as a Going Concern” (“ASU 2014 15” one 2014 15 October 31, 2017. not 2014 15 In February 2016, 2016 02, 842 2016 02” 2016 02 12 2016 02 November 1, 2019. In August 2016, No. 2016 15, 230 2016 15” 2016 15 2016 15 ’s fiscal year beginning November 1, 2018. In October 2016, No. 2016 16, 740 2016 16” 2016 16 2016 16 ’s fiscal year beginning November 1, 2018. In October 2016, No. 2016 17, 810 2016 17” 2016 17 2016 17 ’s fiscal year beginning November 1, 2017. In November 2016, No. 2016 18, 230 2016 18” 2016 18 2016 18 ’s fiscal year beginning November 1, 2018. |
Note 19 - Fair Value of Financi
Note 19 - Fair Value of Financial Instruments | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 19. Fair Value of Financial Instruments ASC 820, Level 1: Fair value determined based on quoted prices in active markets for identical assets. Level 2: Fair value determined using significant other observable inputs. Level 3: Fair value determined using significant unobservable inputs. Our financial instruments measured at fair value on a recurring basis are summarized below: (In thousands) Fair Value Hierarchy Fair Value at July 31, 2017 Fair Value at October 31, 2016 Mortgage loans held for sale (1) Level 2 $ 77,505 $ 165,077 Interest rate lock commitments Level 2 65 (80 ) Forward contracts Level 2 (99 ) 86 Total $ 77,471 $ 165,083 ( 1 The aggregate unpaid principal balance was $72.9 $149.4 July 31, 2017 October 31, 2016, We elected the fair value option for our loans held for sale for mortgage loans originated subsequent to October 31, 2008, 825, The Financial Services segment had a pipeline of loan applications in process of $539.2 July 31, 2017. $57.9 July 31, 2017. 60 not The Financial Services segment uses investor commitments and forward sales of mandatory MBS to hedge its mortgage-related interest rate exposure. These instruments involve, to varying degrees, elements of credit and interest rate risk. Credit risk is managed by entering into MBS forward commitments, option contracts with investment banks, federally regulated bank affiliates and loan sales transactions with permanent investors meeting the segment ’s credit standards. The segment’s risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At July 31, 2017, $29.5 September 21, 2017. The assets accounted for using the fair value option are initially measured at fair value. Gains and losses from initial measurement and subsequent changes in fair value are recognized in the Financial Services segment ’s income. The changes in fair values that are included in income are shown, by financial instrument and financial statement line item, below: Three Months Ended July 31, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ (532 ) $ (34 ) $ 206 Three Months Ended July 31, 2016 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ (175 ) $ 560 $ (268 ) Nine Months Ended July 31, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ (2,911 ) $ 145 $ (186 ) Nine Months Ended July 31, 2016 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ 3,654 $ 590 $ (818 ) The Company ’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs during the three nine July 31, 2017 2016. Nonfinancial Assets Three Months Ended July 31, 2017 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ - $ - $ - Land and land options held for future development or sale Level 3 $ 15,852 $ (3,215 ) $ 12,637 Three Months Ended July 31, 2016 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ - $ - $ - Land and land options held for future development or sale Level 3 $ 5,407 $ (1,282 ) $ 4,125 Nine Months Ended July 31, 2017 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 14,776 $ (4,136 ) $ 10,640 Land and land options held for future development or sale Level 3 $ 22,178 $ (3,296 ) $ 18,882 Nine Months Ended July 31, 2016 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 44,238 $ (14,399 ) $ 29,839 Land and land options held for future development or sale Level 3 $ 6,576 $ (1,976 ) $ 4,600 We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they may If the expected undiscounted cash flows are less than the carrying amount, then the community is written down to its fair value. We estimate the fair value of each impaired community by determining the present value of its estimated future cash flows at a discount rate commensurate with the risk of the respective community. Should the estimates or expectations used in determining cash flows or fair value decrease or differ from current estimates in the future, we may $3.2 $7.4 three nine July 31, 2017, $1.3 $16.4 three nine July 31, 2016, 4 The fair value of our cash equivalents and restricted cash and cash equivalents approximates their carrying amount, based on Level 1 The fair value of our borrowings under the revolving credit and term loan facilities approximates their carrying amount based on level 2 2 $367.0 $251.7 July 31, 2017 October 31, 2016, The fair value of each of the senior secured notes (all series in the aggregate), the senior amortizing notes and the senior exchangeable notes is estimated based on third 3 $1.1 $2.1 $54.1 July 31, 2017. October 31, 2016, $883.0 $6.3 $55.2 |
Note 20 - Financial Information
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Condensed Financial Statements [Text Block] | 20. Financial Information of Subsidiary Issuer and Subsidiary Guarantors Hovnanian Enterprises, Inc., the parent company (the “Parent”), is the issuer of publicly traded common stock and preferred stock, which is represented by depository shares. One of its wholly owned subsidiaries, K. Hovnanian Enterprises, Inc. (the “Subsidiary Issuer”), acts as a finance entity that, as of July 31, 2017, $1,110.0 $1,091.2 $368.5 $365.9 $2.1 $2.0 $53.3 $53.2 In addition to the Parent, each of the wholly owned subsidiaries of the Parent other than the Subsidiary Issuer (collectively, “Notes Guarantors”), with the exception of our home mortgage subsidiaries, certain of our title insurance subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures (collectively, the “Nonguarantor Subsidiaries”), have guaranteed fully and unconditionally, on a joint and several basis, the obligations of the Subsidiary Issuer to pay principal and interest under the senior secured notes (other than the 2021 9.5% 2020 100% 2021 9.5% 2020 11 The senior amortizing notes and senior exchangeable notes have been registered under the Securities Act of 1933, 7.0% 8.0% 11 not, The Condensed Consolidating Financial Statements presented below are in respect of our registered notes only and not 7.0% 8.0% 7.0% 8.0% 10.0% 2022 10.5% 2024 not The following Condensed Consolidating Financial Statements present the results of operations, financial position and cash flows of (i) the Parent, (ii) the Subsidiary Issuer, (iii) the Notes Guarantors, (iv) the Nonguarantor Subsidiaries and (v) the eliminations to arrive at the information for Hovnanian Enterprises, Inc. on a consolidated basis. HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING BALANCE SHEET JULY 31 , 2017 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $ - $ 211,869 $ 1,088,088 $ 412,640 $ - $ 1,712,597 Financial services 19,018 90,704 109,722 Intercompany receivable 1,216,923 13,634 (1,230,557 ) - Investments in and amounts due from consolidated subsidiaries 380,546 (380,546 ) - Total assets $ - $ 1,428,792 $ 1,487,652 $ 516,978 $ (1,611,103 ) $ 1,822,319 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $ 2,756 $ 1,571 $ 481,863 $ 65,383 $ - $ 551,573 Financial services 19,021 70,548 89,569 Income taxes (receivable) payable (2,233 ) 4,029 1,796 Notes payable and term loan and Revolving credit facility 1,648,211 1,834 498 1,650,543 Intercompany payable 153,060 1,077,497 (1,230,557 ) - Amounts due to consolidated subsidiaries 317,579 73,936 (391,515 ) - Stockholders ’ (deficit) equity (471,162 ) (294,926 ) (96,592 ) 380,549 10,969 (471,162 ) Total liabilities and equity $ - $ 1,428,792 $ 1,487,652 $ 516,978 $ (1,611,103 ) $ 1,822,319 HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING BALANCE SHEET OCTOBER 31, 2016 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $ - $ 271,216 $ 1,194,267 $ 408,610 $ - $ 1,874,093 Financial services 13,453 183,777 197,230 Income taxes receivable 115,940 (58,597 ) 226,258 32 283,633 Intercompany receivable 1,227,334 88,112 (1,315,446 ) - Investments in and amounts due from consolidated subsidiaries 4,914 437,628 (442,542 ) - Total assets $ 115,940 $ 1,444,867 $ 1,871,606 $ 680,531 $ (1,757,988 ) $ 2,354,956 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $ 3,506 $ 1,118 $ 565,163 $ 83,476 $ - $ 653,263 Financial services 13,338 159,107 172,445 Notes payable and term loan and Revolving credit facility 1,652,357 5,084 317 1,657,758 Intercompany payable 157,993 1,157,453 (1,315,446 ) - Amounts due to consolidated subsidiaries 82,951 (82,951 ) - Stockholders ’ (deficit) equity (128,510 ) (208,608 ) 130,568 437,631 (359,591 ) (128,510 ) Total liabilities and equity $ 115,940 $ 1,444,867 $ 1,871,606 $ 680,531 $ (1,757,988 ) $ 2,354,956 HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED JULY 31, 2017 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 489,346 $ 87,696 $ - $ 577,042 Financial services 2,569 12,424 14,993 Intercompany charges 21,792 (21,792 ) - Total revenues - 21,792 491,915 100,120 (21,792 ) 592,035 Expenses: Homebuilding 375 33,132 477,253 76,442 587,202 Financial services 20 1,714 7,133 8,867 Intercompany charges 21,792 (21,792 ) - Total expenses 395 33,132 500,759 83,575 (21,792 ) 596,069 Loss on extinguishment of debt (42,258 ) (42,258 ) Income (loss) from unconsolidated joint ventures 83 (3,964 ) (3,881 ) (Loss) income before income taxes (395 ) (53,598 ) (8,761 ) 12,581 - (50,173 ) State and federal income tax provision (benefit) 129,825 (43,308 ) 200,487 32 287,036 Equity in (loss) income of consolidated subsidiaries (206,989 ) (49,961 ) 12,549 244,401 - Net (loss) income $ (337,209 ) $ (60,251 ) $ (196,699 ) $ 12,549 $ 244,401 $ (337,209 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED JULY 31, 2016 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 595,124 $ 105,241 $ - $ 700,365 Financial services 2,645 13,840 16,485 Intercompany charges 26,433 (26,433 ) - Total revenues - 26,433 597,769 119,081 (26,433 ) 716,850 Expenses: Homebuilding 1,277 32,225 565,447 105,491 704,440 Financial services 16 1,761 7,139 8,916 Intercompany charges 27,239 (806 ) (26,433 ) - Total expenses 1,293 32,225 594,447 111,824 (26,433 ) 713,356 Income (loss) from unconsolidated joint ventures 17 (2,418 ) (2,401 ) (Loss) income before income taxes (1,293 ) (5,792 ) 3,339 4,839 - 1,093 State and federal income tax (benefit) provision (484 ) (6,936 ) 8,987 1,567 Equity in income (loss) of consolidated subsidiaries 335 93 4,839 (5,267 ) - Net (loss) income $ (474 ) $ 1,237 $ (809 ) $ 4,839 $ (5,267 ) $ (474 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS NINE MONTHS ENDED JULY 31, 2017 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 1,428,660 $ 258,983 $ - $ 1,687,643 Financial services 7,816 34,520 42,336 Intercompany charges 67,950 (67,950 ) - Total revenues - 67,950 1,436,476 293,503 (67,950 ) 1,729,979 Expenses: Homebuilding 2,374 99,161 1,394,594 223,354 1,719,483 Financial services 20 5,187 17,875 23,082 Intercompany charges 67,950 (67,950 ) - Total expenses 2,394 99,161 1,467,731 241,229 (67,950 ) 1,742,565 Loss on extinguishment of debt (34,854 ) (34,854 ) Income (loss) from unconsolidated joint ventures 119 (10,228 ) (10,109 ) (Loss) income before income taxes (2,394 ) (66,065 ) (31,136 ) 42,046 - (57,549 ) State and federal income tax provision (benefit) 107,012 (58,597 ) 238,038 32 286,485 Equity in (loss) income of consolidated subsidiaries (234,628 ) (78,850 ) 42,014 271,464 - Net (loss) income $ (344,034 ) $ (86,318 ) $ (227,160 ) $ 42,014 $ 271,464 $ (344,034 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS NINE MONTHS ENDED JULY 31, 2016 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 1,593,452 $ 302,012 $ - $ 1,895,464 Financial services 7,566 44,148 51,714 Intercompany charges 87,540 (87,540 ) - Total revenues - 87,540 1,601,018 346,160 (87,540 ) 1,947,178 Expenses: Homebuilding 2,874 101,432 1,557,620 282,981 1,944,907 Financial services 16 5,208 21,525 26,749 Intercompany charges 87,540 (87,540 ) - Total expenses 2,890 101,432 1,650,368 304,506 (87,540 ) 1,971,656 Income (loss) from unconsolidated joint ventures 40 (5,267 ) (5,227 ) (Loss) income before income taxes (2,890 ) (13,892 ) (49,310 ) 36,387 - (29,705 ) State and federal income tax (benefit) provision (19,919 ) (22,264 ) 37,586 (4,597 ) Equity in (loss) income of consolidated subsidiaries (42,137 ) (26,979 ) 36,387 32,729 - Net (loss) income $ (25,108 ) $ (18,607 ) $ (50,509 ) $ 36,387 $ 32,729 $ (25,108 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS NINE MONTHS ENDED JULY 31, 2017 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $ (344,034 ) $ (86,318 ) $ (227,160 ) $ 42,014 $ 271,464 $ (344,034 ) Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities 114,339 (28,510 ) 674,835 286 (271,464 ) 489,486 Net cash (used in) provided by operating activities (229,695 ) (114,828 ) 447,675 42,300 - 145,452 Cash flows from investing activities: Proceeds from sale of property and assets 199 10 209 Purchase of property, equipment & other fixed assets and acquisitions (5,034 ) (5,034 ) Decrease in restricted cash related to mortgage company 1,686 1,686 Increase in restricted cash related to letters of credit (2 ) (2 ) Investments in and advances to unconsolidated joint ventures (624 ) (467 ) (32,312 ) (33,403 ) Distributions of capital from unconsolidated joint ventures 13,976 13,976 Intercompany investing activities 89,261 (89,261 ) - Net cash provided by (used in) investing activities - 88,635 (5,302 ) (16,640 ) (89,261 ) (22,568 ) Cash flows from financing activities: Net payments related to mortgages and notes (8,618 ) (3,800 ) (12,418 ) Net payments from model sale leaseback financing programs (4,094 ) (3,273 ) (7,367 ) Net payments from land bank financing programs (36,047 ) (9,973 ) (46,020 ) Proceeds from senior secured notes 840,000 840,000 Payments related to senior secured, senior, senior amortizing and senior exchangeable notes (861,976 ) (861,976 ) Net payments related to mortgage warehouse lines of credit (83,525 ) (83,525 ) Deferred financing costs from land bank financing programs and note issuances (11,295 ) (1,150 ) (166 ) (12,611 ) Intercompany financing activities 229,695 (393,434 ) 74,478 89,261 - Net cash provided by (used in) financing activities 229,695 (33,271 ) (443,343 ) (26,259 ) 89,261 (183,917 ) Net decrease in cash and cash equivalents - (59,464 ) (970 ) (599 ) - (61,033 ) Cash and cash equivalents balance, beginning of period 261,553 (395 ) 85,607 346,765 Cash and cash equivalents balance, end of period $ - $ 202,089 $ (1,365 ) $ 85,008 $ - $ 285,732 HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS NINE MONTHS ENDED JULY 31, 2016 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $ (25,108 ) $ (18,607 ) $ (50,509 ) $ 36,387 $ 32,729 $ (25,108 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities (9,089 ) (25,300 ) 289,872 (3,090 ) (32,729 ) 219,664 Net cash (used in) provided by operating activities (34,197 ) (43,907 ) 239,363 33,297 - 194,556 Cash flows from investing activities: Proceeds from sale of property and assets 622 21 643 Purchase of property, equipment & other fixed assets and acquisitions (5,064 ) (30 ) (5,094 ) Decrease in restricted cash related to mortgage company 88 88 Decrease in restricted cash related to letters of credit 873 873 Investments in and advances to unconsolidated joint ventures (110 ) (1,395 ) (37,584 ) (39,089 ) Distributions of capital from unconsolidated joint ventures (186 ) 1,087 5,502 6,403 Intercompany investing activities 231,254 (231,254 ) - Net cash (used in) provided by investing activities - 231,831 (4,750 ) (32,003 ) (231,254 ) (36,176 ) Cash flows from financing activities: Net (payments) proceeds related to mortgages and notes (53,780 ) 677 (53,103 ) Net (payments) proceeds from model sale leaseback financing programs (977 ) 357 (620 ) Net proceeds from land bank financing programs 69,388 22,331 91,719 Payments related to senior notes and senior amortizing notes (263,994 ) (263,994 ) Net proceeds from revolving credit facility 5,000 5,000 Net proceeds related to mortgage warehouse lines of credit 6,781 6,781 Deferred financing costs from land bank financing programs and note issuances (2,139 ) (4,180 ) (1,547 ) (7,866 ) Intercompany financing activities 34,197 (245,387 ) (20,064 ) 231,254 - Net cash provided by (used in) financing activities 34,197 (261,133 ) (234,936 ) 8,535 231,254 (222,083 ) Net (decrease) increase in cash and cash equivalents - (73,209 ) (323 ) 9,829 - (63,703 ) Cash and cash equivalents balance, beginning of period 199,318 (4,800 ) 59,227 253,745 Cash and cash equivalents balance, end of period $ - $ 126,109 $ (5,123 ) $ 69,056 $ - $ 190,042 |
Note 21 - Transactions With Rel
Note 21 - Transactions With Related Parties | 9 Months Ended |
Jul. 31, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 21. Transactions with Related Parties During the three July 31, 2017 2016, $0.2 nine July 31, 2017 2016, $0.6 $0.8 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Hovnanian Enterprises, Inc. and Subsidiaries (the “Company”, “we”, “us” or “our”) has reportable segments consisting of six 16 The accompanying unaudited Condensed Consolidated Financial Statements include our accounts and those of all wholly-owned subsidiaries after elimination of all significant intercompany balances and transactions. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10 10 X 10 October 31, 2016. In the opinion of management, all adjustments for interim periods presented have been made, which include normal recurring accruals and deferrals necessary for a fair presentation of our condensed consolidated financial position, results of operations and cash flows. The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and these differences could have a significant impact on the Condensed Consolidated Financial Statements. Results for interim periods are not October 31, 2016 not |
Reclassification, Policy [Policy Text Block] | Reclassifications In November 2016, 2015 03, $24.5 $1.3 not $3.0 $20.2 2017 November 2016, 2015 15 835 30 2015 15” 2015 03. 2015 15 no |
Note 3 - Interest (Tables)
Note 3 - Interest (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Interest capitalized at beginning of period $ 90,960 $ 115,809 $ 96,688 $ 123,898 Plus interest incurred (1) 39,089 40,300 116,944 126,483 Less cost of sales interest expensed 19,371 28,406 58,030 66,693 Less other interest expensed (2)(3) 23,559 23,159 68,483 68,468 Less interest contributed to unconsolidated joint venture (4) - - - 10,676 Interest capitalized at end of period (5) $ 87,119 $ 104,544 $ 87,119 $ 104,544 |
Cash Paid for Interest Net of Capitalized Interest [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Other interest expensed $ 23,559 $ 23,159 $ 68,483 $ 68,468 Interest paid by our mortgage and finance subsidiaries 465 706 1,549 2,116 Decrease in accrued interest 17,528 8,641 18,882 9,909 Cash paid for interest, net of capitalized interest $ 41,552 $ 32,506 $ 88,914 $ 80,493 |
Note 6 - Warranty Costs (Tables
Note 6 - Warranty Costs (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Balance, beginning of period $ 117,207 $ 136,706 $ 121,144 $ 135,053 Additions - Selling, general and administrative 2,639 4,247 8,403 13,162 Additions - Cost of sales 4,434 4,426 11,436 12,347 Charges incurred during the period (5,489 ) (5,942 ) (22,192 ) (21,125 ) Changes to pre-existing reserves - - - - Balance, end of period $ 118,791 $ 139,437 $ 118,791 $ 139,437 |
Note 9 - Mortgage Loans Held 31
Note 9 - Mortgage Loans Held for Sale (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Loan origination reserves, beginning of period $ 3,782 $ 8,306 $ 8,137 $ 8,025 Provisions for losses during the period $ 41 45 $ 120 203 Adjustments to pre-existing provisions for losses from changes in estimates (51 ) (27 ) $ (4,485 ) 96 Payments/settlements (197 ) (197 ) Loan origination reserves, end of period $ 3,772 $ 8,127 $ 3,772 $ 8,127 |
Note 11 - Senior Notes and Te32
Note 11 - Senior Notes and Term Loan (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | (In thousands) July 31, 2017(1)(2) October 31, 2016(1)(2) Senior Secured Term Loan, net of debt issuance costs $ 72,699 $ 72,646 Senior Secured Notes: 7.25% Senior Secured First Lien Notes due October 15, 2020 $ - $ 569,641 10.0% Senior Secured Second Lien Notes due October 15, 2018 (net of discount) - 68,951 9.125% Senior Secured Second Lien Notes due November 15, 2020 - 143,337 9.5% Senior Secured Notes due November 15, 2020 74,298 74,140 2.0% Senior Secured Notes due November 1, 2021 (net of discount) 53,049 53,022 5.0% Senior Secured Notes due November 1, 2021 (net of discount) 133,292 131,998 10.0% Senior Secured Notes due July 15, 2022 435,060 - 10.5% Senior Secured Notes due July 15, 2024 395,507 - Total Senior Secured Notes, net of debt issuance costs $ 1,091,206 $ 1,041,089 Senior Notes: 7.0% Senior Notes due January 15, 2019 $ 131,839 $ 148,800 8.0% Senior Notes due November 1, 2019 234,084 247,348 Total Senior Notes, net of debt issuance costs $ 365,923 $ 396,148 11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs $ 2,018 $ 6,152 Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs $ 53,155 $ 57,298 |
Note 16 - Operating and Repor33
Note 16 - Operating and Reporting Segments (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (In thousands) July 31, 2017 October 31, 2016 Assets: Northeast $ 183,486 $ 219,363 Mid-Atlantic 280,711 292,899 Midwest 104,962 111,596 Southeast 246,251 226,124 Southwest 335,601 341,472 West 197,816 269,400 Total homebuilding 1,348,827 1,460,854 Financial services 109,722 197,230 Corporate and unallocated(1) 363,770 696,872 Total assets $ 1,822,319 $ 2,354,956 |
Operating Segments [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2017 2016 2017 2016 Revenues: Northeast $ 39,956 $ 69,989 $ 144,481 $ 196,539 Mid-Atlantic 113,298 111,739 314,124 295,546 Midwest 41,052 72,581 126,773 249,132 Southeast 68,435 96,323 181,654 186,873 Southwest 209,295 248,546 617,959 729,606 West 104,523 101,158 301,897 237,831 Total homebuilding 576,559 700,336 1,686,888 1,895,527 Financial services 14,993 16,485 42,336 51,714 Corporate and unallocated 483 29 755 (63 ) Total revenues $ 592,035 $ 716,850 $ 1,729,979 $ 1,947,178 (Loss) income before income taxes: Northeast $ (5,737 ) $ (995 ) $ (7,553 ) $ (4,945 ) Mid-Atlantic 3,714 3,467 8,514 7,161 Midwest (3,313 ) (2,452 ) (5,771 ) (8,034 ) Southeast (1,580 ) (5,621 ) (1,446 ) (14,710 ) Southwest 19,010 20,532 50,718 55,392 West 5,873 3,297 7,436 (6,989 ) Homebuilding income before income taxes 17,967 18,228 51,898 27,875 Financial services 6,126 7,569 19,254 24,965 Corporate and unallocated (1) (74,266 ) (24,704 ) (128,701 ) (82,545 ) ( Loss) income before income taxes $ (50,173 ) $ 1,093 $ (57,549 ) $ (29,705 ) |
Note 17 - Investments in Unco34
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | (Dollars in thousands) July 31, 2017 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 38,501 $ 223 $ 38,724 Inventories 661,510 8,582 670,092 Other assets 29,817 - 29,817 Total assets $ 729,828 $ 8,805 $ 738,633 Liabilities and equity: Accounts payable and accrued liabilities $ 108,799 $ 469 $ 109,268 Notes payable 313,436 489 313,925 Total liabilities 422,235 958 423,193 Equity of: Hovnanian Enterprises, Inc. 84,538 3,196 87,734 Others 223,055 4,651 227,706 Total equity 307,593 7,847 315,440 Total liabilities and equity $ 729,828 $ 8,805 $ 738,633 Debt to capitalization ratio 50 % 6 % 50 % (Dollars in thousands) October 31, 2016 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 48,542 $ 1,478 $ 50,020 Inventories 516,947 11,010 527,957 Other assets 25,865 - 25,865 Total assets $ 591,354 $ 12,488 $ 603,842 Liabilities and equity: Accounts payable and accrued liabilities $ 72,302 $ 1,812 $ 74,114 Notes payable 214,911 2,261 217,172 Total liabilities 287,213 4,073 291,286 Equity of: Hovnanian Enterprises, Inc. 88,379 3,220 91,599 Others 215,762 5,195 220,957 Total equity 304,141 8,415 312,556 Total liabilities and equity $ 591,354 $ 12,488 $ 603,842 Debt to capitalization ratio 41 % 21 % 41 % For the Three Months Ended July 31, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 62,610 $ 1,789 $ 64,399 Cost of sales and expenses (70,411 ) (1,873 ) (72,284 ) Joint venture net loss $ (7,801 ) $ (84 ) $ (7,885 ) Our share of net loss $ (3,966 ) $ (42 ) $ (4,008 ) For the Three Months Ended July 31, 2016 (In thousands) Homebuilding Land Development Total Revenues $ 31,145 $ 1,219 $ 32,364 Cost of sales and expenses (37,245 ) (1,143 ) (38,388 ) Joint venture net (loss) income $ (6,100 ) $ 76 $ (6,024 ) Our share of net (loss) income $ (2,418 ) $ 38 $ (2,380 ) For the Nine Months Ended July 31, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 214,103 $ 4,649 $ 218,752 Cost of sales and expenses (225,594 ) (4,696 ) (230,290 ) Joint venture net loss $ (11,491 ) $ (47 ) $ (11,538 ) Our share of net loss $ (10,230 ) $ (24 ) $ (10,254 ) For the Nine Months Ended July 31, 2016 (In thousands) Homebuilding Land Development Total Revenues $ 77,171 $ 2,836 $ 80,007 Cost of sales and expenses (92,904 ) (2,462 ) (95,366 ) Joint venture net (loss) income $ (15,733 ) $ 374 $ (15,359 ) Our share of net (loss) income $ (5,267 ) $ 187 $ (5,080 ) |
Note 19 - Fair Value of Finan35
Note 19 - Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | (In thousands) Fair Value Hierarchy Fair Value at July 31, 2017 Fair Value at October 31, 2016 Mortgage loans held for sale (1) Level 2 $ 77,505 $ 165,077 Interest rate lock commitments Level 2 65 (80 ) Forward contracts Level 2 (99 ) 86 Total $ 77,471 $ 165,083 |
Fair Value, Option, Quantitative Disclosures [Table Text Block] | Three Months Ended July 31, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ (532 ) $ (34 ) $ 206 Three Months Ended July 31, 2016 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ (175 ) $ 560 $ (268 ) Nine Months Ended July 31, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ (2,911 ) $ 145 $ (186 ) Nine Months Ended July 31, 2016 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ 3,654 $ 590 $ (818 ) |
Fair Value Measurements, Nonrecurring [Table Text Block] | Three Months Ended July 31, 2017 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ - $ - $ - Land and land options held for future development or sale Level 3 $ 15,852 $ (3,215 ) $ 12,637 Three Months Ended July 31, 2016 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ - $ - $ - Land and land options held for future development or sale Level 3 $ 5,407 $ (1,282 ) $ 4,125 Nine Months Ended July 31, 2017 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 14,776 $ (4,136 ) $ 10,640 Land and land options held for future development or sale Level 3 $ 22,178 $ (3,296 ) $ 18,882 Nine Months Ended July 31, 2016 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 44,238 $ (14,399 ) $ 29,839 Land and land options held for future development or sale Level 3 $ 6,576 $ (1,976 ) $ 4,600 |
Note 20 - Financial Informati36
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors (Tables) | 9 Months Ended |
Jul. 31, 2017 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $ - $ 211,869 $ 1,088,088 $ 412,640 $ - $ 1,712,597 Financial services 19,018 90,704 109,722 Intercompany receivable 1,216,923 13,634 (1,230,557 ) - Investments in and amounts due from consolidated subsidiaries 380,546 (380,546 ) - Total assets $ - $ 1,428,792 $ 1,487,652 $ 516,978 $ (1,611,103 ) $ 1,822,319 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $ 2,756 $ 1,571 $ 481,863 $ 65,383 $ - $ 551,573 Financial services 19,021 70,548 89,569 Income taxes (receivable) payable (2,233 ) 4,029 1,796 Notes payable and term loan and Revolving credit facility 1,648,211 1,834 498 1,650,543 Intercompany payable 153,060 1,077,497 (1,230,557 ) - Amounts due to consolidated subsidiaries 317,579 73,936 (391,515 ) - Stockholders ’ (deficit) equity (471,162 ) (294,926 ) (96,592 ) 380,549 10,969 (471,162 ) Total liabilities and equity $ - $ 1,428,792 $ 1,487,652 $ 516,978 $ (1,611,103 ) $ 1,822,319 Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $ - $ 271,216 $ 1,194,267 $ 408,610 $ - $ 1,874,093 Financial services 13,453 183,777 197,230 Income taxes receivable 115,940 (58,597 ) 226,258 32 283,633 Intercompany receivable 1,227,334 88,112 (1,315,446 ) - Investments in and amounts due from consolidated subsidiaries 4,914 437,628 (442,542 ) - Total assets $ 115,940 $ 1,444,867 $ 1,871,606 $ 680,531 $ (1,757,988 ) $ 2,354,956 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $ 3,506 $ 1,118 $ 565,163 $ 83,476 $ - $ 653,263 Financial services 13,338 159,107 172,445 Notes payable and term loan and Revolving credit facility 1,652,357 5,084 317 1,657,758 Intercompany payable 157,993 1,157,453 (1,315,446 ) - Amounts due to consolidated subsidiaries 82,951 (82,951 ) - Stockholders ’ (deficit) equity (128,510 ) (208,608 ) 130,568 437,631 (359,591 ) (128,510 ) Total liabilities and equity $ 115,940 $ 1,444,867 $ 1,871,606 $ 680,531 $ (1,757,988 ) $ 2,354,956 |
Condensed Income Statement [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 489,346 $ 87,696 $ - $ 577,042 Financial services 2,569 12,424 14,993 Intercompany charges 21,792 (21,792 ) - Total revenues - 21,792 491,915 100,120 (21,792 ) 592,035 Expenses: Homebuilding 375 33,132 477,253 76,442 587,202 Financial services 20 1,714 7,133 8,867 Intercompany charges 21,792 (21,792 ) - Total expenses 395 33,132 500,759 83,575 (21,792 ) 596,069 Loss on extinguishment of debt (42,258 ) (42,258 ) Income (loss) from unconsolidated joint ventures 83 (3,964 ) (3,881 ) (Loss) income before income taxes (395 ) (53,598 ) (8,761 ) 12,581 - (50,173 ) State and federal income tax provision (benefit) 129,825 (43,308 ) 200,487 32 287,036 Equity in (loss) income of consolidated subsidiaries (206,989 ) (49,961 ) 12,549 244,401 - Net (loss) income $ (337,209 ) $ (60,251 ) $ (196,699 ) $ 12,549 $ 244,401 $ (337,209 ) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 595,124 $ 105,241 $ - $ 700,365 Financial services 2,645 13,840 16,485 Intercompany charges 26,433 (26,433 ) - Total revenues - 26,433 597,769 119,081 (26,433 ) 716,850 Expenses: Homebuilding 1,277 32,225 565,447 105,491 704,440 Financial services 16 1,761 7,139 8,916 Intercompany charges 27,239 (806 ) (26,433 ) - Total expenses 1,293 32,225 594,447 111,824 (26,433 ) 713,356 Income (loss) from unconsolidated joint ventures 17 (2,418 ) (2,401 ) (Loss) income before income taxes (1,293 ) (5,792 ) 3,339 4,839 - 1,093 State and federal income tax (benefit) provision (484 ) (6,936 ) 8,987 1,567 Equity in income (loss) of consolidated subsidiaries 335 93 4,839 (5,267 ) - Net (loss) income $ (474 ) $ 1,237 $ (809 ) $ 4,839 $ (5,267 ) $ (474 ) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 1,428,660 $ 258,983 $ - $ 1,687,643 Financial services 7,816 34,520 42,336 Intercompany charges 67,950 (67,950 ) - Total revenues - 67,950 1,436,476 293,503 (67,950 ) 1,729,979 Expenses: Homebuilding 2,374 99,161 1,394,594 223,354 1,719,483 Financial services 20 5,187 17,875 23,082 Intercompany charges 67,950 (67,950 ) - Total expenses 2,394 99,161 1,467,731 241,229 (67,950 ) 1,742,565 Loss on extinguishment of debt (34,854 ) (34,854 ) Income (loss) from unconsolidated joint ventures 119 (10,228 ) (10,109 ) (Loss) income before income taxes (2,394 ) (66,065 ) (31,136 ) 42,046 - (57,549 ) State and federal income tax provision (benefit) 107,012 (58,597 ) 238,038 32 286,485 Equity in (loss) income of consolidated subsidiaries (234,628 ) (78,850 ) 42,014 271,464 - Net (loss) income $ (344,034 ) $ (86,318 ) $ (227,160 ) $ 42,014 $ 271,464 $ (344,034 ) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 1,593,452 $ 302,012 $ - $ 1,895,464 Financial services 7,566 44,148 51,714 Intercompany charges 87,540 (87,540 ) - Total revenues - 87,540 1,601,018 346,160 (87,540 ) 1,947,178 Expenses: Homebuilding 2,874 101,432 1,557,620 282,981 1,944,907 Financial services 16 5,208 21,525 26,749 Intercompany charges 87,540 (87,540 ) - Total expenses 2,890 101,432 1,650,368 304,506 (87,540 ) 1,971,656 Income (loss) from unconsolidated joint ventures 40 (5,267 ) (5,227 ) (Loss) income before income taxes (2,890 ) (13,892 ) (49,310 ) 36,387 - (29,705 ) State and federal income tax (benefit) provision (19,919 ) (22,264 ) 37,586 (4,597 ) Equity in (loss) income of consolidated subsidiaries (42,137 ) (26,979 ) 36,387 32,729 - Net (loss) income $ (25,108 ) $ (18,607 ) $ (50,509 ) $ 36,387 $ 32,729 $ (25,108 ) |
Condensed Cash Flow Statement [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $ (344,034 ) $ (86,318 ) $ (227,160 ) $ 42,014 $ 271,464 $ (344,034 ) Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities 114,339 (28,510 ) 674,835 286 (271,464 ) 489,486 Net cash (used in) provided by operating activities (229,695 ) (114,828 ) 447,675 42,300 - 145,452 Cash flows from investing activities: Proceeds from sale of property and assets 199 10 209 Purchase of property, equipment & other fixed assets and acquisitions (5,034 ) (5,034 ) Decrease in restricted cash related to mortgage company 1,686 1,686 Increase in restricted cash related to letters of credit (2 ) (2 ) Investments in and advances to unconsolidated joint ventures (624 ) (467 ) (32,312 ) (33,403 ) Distributions of capital from unconsolidated joint ventures 13,976 13,976 Intercompany investing activities 89,261 (89,261 ) - Net cash provided by (used in) investing activities - 88,635 (5,302 ) (16,640 ) (89,261 ) (22,568 ) Cash flows from financing activities: Net payments related to mortgages and notes (8,618 ) (3,800 ) (12,418 ) Net payments from model sale leaseback financing programs (4,094 ) (3,273 ) (7,367 ) Net payments from land bank financing programs (36,047 ) (9,973 ) (46,020 ) Proceeds from senior secured notes 840,000 840,000 Payments related to senior secured, senior, senior amortizing and senior exchangeable notes (861,976 ) (861,976 ) Net payments related to mortgage warehouse lines of credit (83,525 ) (83,525 ) Deferred financing costs from land bank financing programs and note issuances (11,295 ) (1,150 ) (166 ) (12,611 ) Intercompany financing activities 229,695 (393,434 ) 74,478 89,261 - Net cash provided by (used in) financing activities 229,695 (33,271 ) (443,343 ) (26,259 ) 89,261 (183,917 ) Net decrease in cash and cash equivalents - (59,464 ) (970 ) (599 ) - (61,033 ) Cash and cash equivalents balance, beginning of period 261,553 (395 ) 85,607 346,765 Cash and cash equivalents balance, end of period $ - $ 202,089 $ (1,365 ) $ 85,008 $ - $ 285,732 Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $ (25,108 ) $ (18,607 ) $ (50,509 ) $ 36,387 $ 32,729 $ (25,108 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities (9,089 ) (25,300 ) 289,872 (3,090 ) (32,729 ) 219,664 Net cash (used in) provided by operating activities (34,197 ) (43,907 ) 239,363 33,297 - 194,556 Cash flows from investing activities: Proceeds from sale of property and assets 622 21 643 Purchase of property, equipment & other fixed assets and acquisitions (5,064 ) (30 ) (5,094 ) Decrease in restricted cash related to mortgage company 88 88 Decrease in restricted cash related to letters of credit 873 873 Investments in and advances to unconsolidated joint ventures (110 ) (1,395 ) (37,584 ) (39,089 ) Distributions of capital from unconsolidated joint ventures (186 ) 1,087 5,502 6,403 Intercompany investing activities 231,254 (231,254 ) - Net cash (used in) provided by investing activities - 231,831 (4,750 ) (32,003 ) (231,254 ) (36,176 ) Cash flows from financing activities: Net (payments) proceeds related to mortgages and notes (53,780 ) 677 (53,103 ) Net (payments) proceeds from model sale leaseback financing programs (977 ) 357 (620 ) Net proceeds from land bank financing programs 69,388 22,331 91,719 Payments related to senior notes and senior amortizing notes (263,994 ) (263,994 ) Net proceeds from revolving credit facility 5,000 5,000 Net proceeds related to mortgage warehouse lines of credit 6,781 6,781 Deferred financing costs from land bank financing programs and note issuances (2,139 ) (4,180 ) (1,547 ) (7,866 ) Intercompany financing activities 34,197 (245,387 ) (20,064 ) 231,254 - Net cash provided by (used in) financing activities 34,197 (261,133 ) (234,936 ) 8,535 231,254 (222,083 ) Net (decrease) increase in cash and cash equivalents - (73,209 ) (323 ) 9,829 - (63,703 ) Cash and cash equivalents balance, beginning of period 199,318 (4,800 ) 59,227 253,745 Cash and cash equivalents balance, end of period $ - $ 126,109 $ (5,123 ) $ 69,056 $ - $ 190,042 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) $ in Millions | 9 Months Ended |
Jul. 31, 2017USD ($) | |
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Nonrecourse Mortgages Secured by Inventory, Liabilities from Inventory not Owned and Notes Payable and Term Loan [Member] | October 31, 2016 [Member] | |
Prior Period Reclassification Adjustment | $ 24.5 |
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Nonrecourse Mortgages Secured by Inventory [Member] | October 31, 2016 [Member] | |
Prior Period Reclassification Adjustment | 1.3 |
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Liabilities from Inventory not Owned [Member] | October 31, 2016 [Member] | |
Prior Period Reclassification Adjustment | 3 |
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Notes Payable and Term Loan [Member] | October 31, 2016 [Member] | |
Prior Period Reclassification Adjustment | $ 20.2 |
Homebuilding [Member] | |
Number of Reportable Segments | 6 |
Note 2 - Stock Compensation (De
Note 2 - Stock Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Allocated Share-based Compensation Expense, Net of Tax | $ 0.8 | $ 1.5 | ||
Allocated Share-based Compensation Expense | $ 0.1 | 1 | $ 1.6 | 1.8 |
Employee Stock Option [Member] | ||||
Allocated Share-based Compensation Expense | $ 0.2 | $ 0.3 | $ 0.4 | 0.5 |
Share-based Compensation Income | 1.6 | |||
Performance Shares [Member] | ||||
Share-based Compensation, Reverse of Previously Recognized Expense | $ 2.1 |
Note 3 - Interest (Details Text
Note 3 - Interest (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 23,559 | $ 23,159 | $ 68,483 | $ 68,468 |
Qualifying Assets Not Exceeding Debt [Member] | |||||
Real Estate Inventory Expense Not Eligible for Capitalization | 17,200 | 10,100 | 46,500 | 36,800 | |
Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member] | |||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 6,400 | $ 13,100 | $ 22,000 | $ 31,600 | |
[1] | 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: | ||||
[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 $17.2 million and $10.1 million for the three months ended July 31, 2017 and 2016, respectively, and $46.5 million and $36.8 million for the nine months ended July 31, 2017 and 2016, 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 $6.4 million and $13.1 million for the three months ended July 31, 2017 and 2016, respectively, and $22.0 million and $31.6 million for the nine months ended July 31, 2017 and 2016, respectively. |
Note 3 - Interest - Interest Co
Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Interest capitalized at beginning of period | $ 90,960 | $ 115,809 | $ 96,688 | $ 123,898 | |
Plus interest incurred (1) | [1] | 39,089 | 40,300 | 116,944 | 126,483 |
Less cost of sales interest expensed | 19,371 | 28,406 | 58,030 | 66,693 | |
Other interest expensed | [2],[3] | 23,559 | 23,159 | 68,483 | 68,468 |
Less interest contributed to unconsolidated joint venture (4) | [4] | 10,676 | |||
Interest capitalized at end of period (5) | [5] | $ 87,119 | $ 104,544 | $ 87,119 | $ 104,544 |
[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: | ||||
[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 $17.2 million and $10.1 million for the three months ended July 31, 2017 and 2016, respectively, and $46.5 million and $36.8 million for the nine months ended July 31, 2017 and 2016, 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 $6.4 million and $13.1 million for the three months ended July 31, 2017 and 2016, respectively, and $22.0 million and $31.6 million for the nine months ended July 31, 2017 and 2016, respectively. | ||||
[4] | Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in November 2015, as discussed in Note 17. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction. | ||||
[5] | Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Note 3 - Interest - Cash Paid f
Note 3 - Interest - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Other interest expensed | [1],[2] | $ 23,559 | $ 23,159 | $ 68,483 | $ 68,468 |
Interest paid by our mortgage and finance subsidiaries | 465 | 706 | 1,549 | 2,116 | |
Decrease in accrued interest | 17,528 | 8,641 | 18,882 | 9,909 | |
Cash paid for interest, net of capitalized interest | $ 41,552 | $ 32,506 | $ 88,914 | $ 80,493 | |
[1] | 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: | ||||
[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 $17.2 million and $10.1 million for the three months ended July 31, 2017 and 2016, respectively, and $46.5 million and $36.8 million for the nine months ended July 31, 2017 and 2016, 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 $6.4 million and $13.1 million for the three months ended July 31, 2017 and 2016, respectively, and $22.0 million and $31.6 million for the nine months ended July 31, 2017 and 2016, respectively. |
Note 4 - Reduction of Invento42
Note 4 - Reduction of Inventory to Fair Value (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Oct. 31, 2016USD ($) | ||
Number of Communities Evaluated for Impairment | 380 | 418 | ||||
Number of Communities Performed Detailed Impairment Calculations | 10 | 22 | ||||
Carrying Value of Communities Tested for Impairment | $ 82,700 | $ 95,500 | ||||
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount By Less Than 20 Percent | 3 | 11 | ||||
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount by Less than 20 Percent | $ 45,800 | $ 47,800 | ||||
Percentage Undiscounted Cash Flow Exceeds Carrying Amount | 20.00% | |||||
Impairment of Real Estate | $ 3,200 | $ 1,300 | $ 7,400 | $ 16,400 | ||
Number of Communities Impaired | 1 | 2 | 7 | 12 | ||
PreImpairment Value | $ 15,900 | $ 5,400 | $ 37,000 | $ 50,800 | ||
Homebuilding [Member] | ||||||
Land Option Write Offs | $ 1,000 | $ 200 | $ 1,900 | $ 6,500 | ||
Number of Walk Away Lots | 1,200 | 1,570 | 2,739 | 5,089 | ||
Number of Communities Mothballed During the Period | 0 | |||||
Number of Previously Mothballed Communities Sold During the Period | 3 | |||||
Number of Mothballed Communities Reactivated | 2 | |||||
Number of Communities Mothballed | 24 | 24 | 29 | |||
Inventory Real Estate Mothballed Communities | $ 61,600 | $ 61,600 | $ 74,400 | |||
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges | 239,000 | 239,000 | 296,300 | |||
Liabilities from Inventory Real Estate Not Owned | 98,507 | 98,507 | 150,179 | [1] | ||
Homebuilding [Member] | Model Sale Leaseback Financing Arrangements [Member] | ||||||
Liabilities from Inventory Real Estate Not Owned | 62,700 | 62,700 | 69,700 | |||
Inventory Real Estate, Other Options | 70,900 | 70,900 | 79,200 | |||
Homebuilding [Member] | Land Banking Arrangement [Member] | ||||||
Liabilities from Inventory Real Estate Not Owned | 35,800 | 35,800 | 80,500 | |||
Inventory Real Estate, Other Options | $ 67,600 | $ 67,600 | $ 129,500 | |||
Homebuilding [Member] | Real Estate Inventory [Member] | Minimum [Member] | ||||||
Fair Value Inputs, Discount Rate | 18.30% | 16.80% | ||||
Homebuilding [Member] | Real Estate Inventory [Member] | Maximum [Member] | ||||||
Fair Value Inputs, Discount Rate | 19.80% | 18.50% | ||||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 5 - Variable Interest En43
Note 5 - Variable Interest Entities (Details Textual) $ in Millions | Jul. 31, 2017USD ($) |
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 48.6 |
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 942.1 |
Note 6 - Warranty Costs (Detail
Note 6 - Warranty Costs (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | |
Cash Received from Subcontractors for Owner Controlled Insurance Program | $ 3,000 | $ 3,100 | ||
Payments by Insurance Companies for Claims | $ 500 | $ 200 | 700 | 3,900 |
General Liability Insurance Deductible | 20,000 | 20,000 | 20,000 | 20,000 |
Bodily Injury Insurance Deductible | 250 | 250 | 250 | 250 |
Bodily Injury Insurance Limit | 5,000 | 5,000 | 5,000 | 5,000 |
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims | $ 21,000 | $ 21,000 | $ 21,000 | $ 21,000 |
Homebuilding [Member] | Northeast [Member] | ||||
Number of Construction Defect Claims Settled During the Period | 2 |
Note 6 - Warranty Costs - Warra
Note 6 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Balance, beginning of period | $ 117,207 | $ 136,706 | $ 121,144 | $ 135,053 |
Charges incurred during the period | (5,489) | (5,942) | (22,192) | (21,125) |
Changes to pre-existing reserves | ||||
Balance, end of period | 118,791 | 139,437 | 118,791 | 139,437 |
Selling, General and Administrative Expenses [Member] | ||||
Additions | 2,639 | 4,247 | 8,403 | 13,162 |
Cost of Sales [Member] | ||||
Additions | $ 4,434 | $ 4,426 | $ 11,436 | $ 12,347 |
Note 7 - Commitments and Cont46
Note 7 - Commitments and Contingent Liabilities (Details Textual) - USD ($) | Jun. 01, 2017 | Jul. 31, 2017 |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | ||
Loss Contingency, Damages Sought, Value | $ 41,300,000 | |
Loss Contingency, Damages Awarded, Value | $ 9,000,000 | |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Minimum [Member] | ||
Loss Contingency, Estimate of Possible Loss | 0 | |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Maximum [Member] | ||
Loss Contingency, Estimate of Possible Loss | 9,000,000 | |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Breach of Warranty and New Jersey Fraud Claims Prior to Statutory Trebling [Member] | ||
Loss Contingency, Damages Awarded, Value | $ 3,000,000 | |
Construction and Design Defects Lawsuit from Second Condominium Association [Member] | ||
Loss Contingency, Damages Sought, Value | $ 70,000,000 |
Note 8 - Restricted Cash and 47
Note 8 - Restricted Cash and Deposits (Details Textual) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 | |
Cash Equivalents, at Carrying Value | $ 6,400 | $ 9,400 | |
Restricted Cash and Cash Equivalents | 25,400 | 22,900 | |
Homebuilding [Member] | |||
Restricted Cash and Cash Equivalents | 1,955 | 3,914 | [1] |
Customer Deposits [Member] | Homebuilding [Member] | |||
Restricted Cash and Cash Equivalents | 300 | 2,200 | |
Customer Deposits [Member] | Financial Services [Member] | |||
Restricted Cash and Cash Equivalents | 20,600 | 15,100 | |
Mortgage Warehouse Lines of Credit [Member] | |||
Restricted Cash and Cash Equivalents | $ 2,800 | $ 3,900 | |
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 9 - Mortgage Loans Held 48
Note 9 - Mortgage Loans Held for Sale (Details Textual) $ in Millions | Jul. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jul. 31, 2016 |
Loans Pledged as Collateral | $ 65.4 | $ 147.4 | |
Number of Loans Reserved For | 94 | 130 |
Note 9 - Mortgage Loans Held 49
Note 9 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Loan origination reserves, beginning of period | $ 3,782 | $ 8,306 | $ 8,137 | $ 8,025 |
Provisions for losses during the period | 41 | 45 | 120 | 203 |
Adjustments to pre-existing provisions for losses from changes in estimates | (51) | (27) | (4,485) | 96 |
Payments/settlements | (197) | (197) | ||
Loan origination reserves, end of period | $ 3,772 | $ 8,127 | $ 3,772 | $ 8,127 |
Note 10 - Mortgages and Notes50
Note 10 - Mortgages and Notes Payable (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jun. 30, 2013 | Jul. 31, 2017 | Oct. 31, 2016 | ||
Letter of Credit [Member] | ||||
Letters of Credit Outstanding, Amount | $ 1,700 | $ 1,700 | ||
Citi Bank [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument, Term | 5 years | |||
Debt Instrument Basis Spread on Variable Rate Number of Business Days Prior to First Day of Interest Period Spread Determined | 2 days | |||
Long-term Line of Credit | $ 52,000 | 52,000 | ||
Letters of Credit Outstanding, Amount | 15,000 | 17,900 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | |||
JP Morgan Chase Bank [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | |||
Warehouse Agreement Borrowings | $ 24,700 | 44,100 | ||
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument Variable Rate Basis Adjusted London Interbank Offered Rate LIBOR | 1.23% | |||
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.63% | |||
Customers Bank [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
Warehouse Agreement Borrowings | $ 31,200 | 38,800 | ||
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% | |||
Homebuilding [Member] | ||||
Long-term Line of Credit | $ 52,000 | 52,000 | [1] | |
Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | Homebuilding [Member] | ||||
Secured Debt | 70,818 | 82,115 | ||
Debt Instrument, Collateral Amount | $ 170,900 | $ 201,800 | ||
Debt, Weighted Average Interest Rate | 5.50% | 4.90% | ||
Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | Corporate, Non-Segment [Member] | ||||
Secured Debt | $ 13,300 | $ 14,300 | ||
Debt, Weighted Average Interest Rate | 8.90% | 8.80% | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 300 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 1,400 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1,500 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 1,700 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 1,800 | |||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 6,600 | |||
Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | Homebuilding [Member] | ||||
Secured Debt | $ 13,347 | $ 14,312 | [1] | |
8.0% Senior Notes Due 2019 [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Comerica Master Repurchase Agreement [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
Warehouse Agreement Borrowings | $ 6,200 | 29,800 | ||
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument Variable Rate Basis Floor Rate | 0.25% | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Credit Suisse Master Repurchase Agreement [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
Warehouse Agreement Borrowings | 0 | 32,900 | ||
The 7.25% 2020 Notes, 9.125% 2020 Notes, 2018 10.0% Second Lien Notes and Term Loan [Member] | Senior Secured Notes [Member] | Letter of Credit [Member] | Restricted Cash [Member] | ||||
Cash Collateral for Borrowed Securities | $ 1,700 | $ 1,700 | ||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 11 - Senior Notes and Te51
Note 11 - Senior Notes and Term Loan (Details Textual) | Jul. 31, 2017USD ($) | Jul. 27, 2017USD ($) | Jun. 01, 2013USD ($) | Nov. 30, 2016USD ($)shares | Sep. 30, 2016USD ($)shares | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2017USD ($)shares | Jul. 31, 2016USD ($) | Nov. 15, 2017USD ($) | Oct. 15, 2017USD ($) | Oct. 31, 2016USD ($) | Sep. 08, 2016USD ($) | Oct. 02, 2012USD ($)$ / sharesshares | |||||
Debt Covenant Fixed Charge Coverage Ratio Minimum | 2 | 2 | 2 | ||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ (42,258,000) | $ (34,854,000) | |||||||||||||||||
Interest Payable | $ 13,500,000 | 13,500,000 | 13,500,000 | $ 32,400,000 | |||||||||||||||
Debt Issuance Costs, Net | 15,900,000 | 15,900,000 | $ 15,900,000 | ||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | ||||||||||||||||||
Senior Secured Notes [Member] | Real Estate Inventory [Member] | Term Loan Facility [Member] | |||||||||||||||||||
Debt Instrument, Collateral Amount | 544,300,000 | 544,300,000 | $ 544,300,000 | ||||||||||||||||
Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member] | Term Loan Facility [Member] | |||||||||||||||||||
Debt Instrument, Collateral Amount | 202,500,000 | 202,500,000 | 202,500,000 | ||||||||||||||||
Senior Secured Notes [Member] | Restricted Cash [Member] | Term Loan Facility [Member] | |||||||||||||||||||
Debt Instrument, Collateral Amount | 1,700,000 | 1,700,000 | 1,700,000 | ||||||||||||||||
Senior Notes and Senior Exchangeable Note Units [Member] | |||||||||||||||||||
Debt Instrument, Repurchase Amount | $ 30,800,000 | $ 30,800,000 | 30,800,000 | ||||||||||||||||
Gain (Loss) on Extinguishment of Debt | 7,800,000 | ||||||||||||||||||
9.5 % Senior Secured Notes [Member] | |||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ (400,000) | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | 9.50% | 9.50% | ||||||||||||||||
Senior Secured Term Loan [Member] | |||||||||||||||||||
Debt Instrument, Voluntary Prepayment Premium, Aggregate Principal Amount, Percentage | 1.00% | 1.00% | 1.00% | ||||||||||||||||
Senior Secured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | ||||||||||||||||||
Senior Secured Term Loan [Member] | Base Rate [Member] | |||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.00% | ||||||||||||||||||
Senior Amortizing Notes [Member] | |||||||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 39.83 | $ 30 | |||||||||||||||||
The 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
The 9.50% 2020 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% | 9.50% | 9.50% | ||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 440,000,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | [1],[2] | 10.00% | 10.00% | [1],[2] | 10.00% | [1],[2] | 10.00% | [1],[2] | ||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 105.00% | ||||||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | ||||||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 110.00% | ||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 400,000,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | [1],[2] | 10.50% | 10.50% | [1],[2] | 10.50% | [1],[2] | 10.50% | [1],[2] | ||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 105.25% | ||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.625% | ||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 110.50% | ||||||||||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | |||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 17,500,000 | $ 17,500,000 | $ 17,500,000 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | 7.00% | ||||||||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 101.75% | ||||||||||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
The 7.0% 2019 Notes [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | 7.00% | 7.00% | 7.00% | ||||||||||||||
8.0% Senior Notes Due 2019 [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | ||||||||||||||||
8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 14,000,000 | $ 14,000,000 | $ 14,000,000 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | ||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
The 6.00% Exchangeable Note Units [Member] | Exchangeable Note Units [Member] | |||||||||||||||||||
Exchangeable Note Unit Face Amount | $ 6,900,000 | $ 20,600,000 | |||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.17% | ||||||||||||||||||
Shares Issued Upon Conversion of Convertible Debt | shares | 185.5288 | ||||||||||||||||||
Share Price for Exchangeable Note Conversion | $ / shares | $ 5.39 | ||||||||||||||||||
Senior Exchangeable Notes Exchanged for Class A Common Stock | shares | 18,305 | ||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 3,400,000 | ||||||||||||||||||
Debt Instrument, Exchangeable, Number of Units Repurchased | shares | 6,925 | 20,823 | 6,925 | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 6,900,000 | $ 6,900,000 | $ 6,900,000 | ||||||||||||||||
Note Units Number | 100,000 | ||||||||||||||||||
Note Units Stated Amount | $ 1,000 | ||||||||||||||||||
Note Units Initial Principal Amount Exchangeable Note | $ / shares | $ 768.51 | ||||||||||||||||||
Note Units Principal Amount at Maturity | $ / shares | 1,000 | ||||||||||||||||||
Note Units Initial Principal Amount Senior Amortizing Note | $ / shares | $ 231.49 | ||||||||||||||||||
Debt Instrument, Face Amount | $ 100,000,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||||||||||
The 7.25% 2020 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 575,912,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | [1],[2] | 7.25% | 7.25% | [1],[2] | 7.25% | [1],[2] | 7.25% | [1],[2] | ||||||||||
The 7.25% 2020 Notes [Member] | Senior Secured Notes [Member] | Scenario, Forecast [Member] | |||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 1,088,000 | ||||||||||||||||||
The 9.125% 2020 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 87,321,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.125% | [1],[2] | 9.125% | 9.125% | [1],[2] | 9.125% | [1],[2] | 9.125% | [1],[2] | ||||||||||
The 9.125% 2020 Notes [Member] | Senior Secured Notes [Member] | Scenario, Forecast [Member] | |||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 57,679,000 | ||||||||||||||||||
The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 75,000,000 | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | [1],[2] | 10.00% | 10.00% | [1],[2] | 10.00% | [1],[2] | 10.00% | [1],[2] | ||||||||||
The 7.25% 2020 Notes, The 9.125% 2020 Notes, and The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ (42,300,000) | ||||||||||||||||||
Term Loan [Member] | |||||||||||||||||||
Debt Instrument, Face Amount | $ 75,000,000 | ||||||||||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 35.00% | ||||||||||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 109.50% | ||||||||||||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Secured Group [Member] | Investment in Joint Ventures [Member] | |||||||||||||||||||
Debt Instrument, Collateral Amount | $ 84,500,000 | $ 84,500,000 | $ 84,500,000 | ||||||||||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member] | |||||||||||||||||||
Debt Instrument, Collateral Amount | 77,700,000 | 77,700,000 | 77,700,000 | ||||||||||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Real Estate [Member] | |||||||||||||||||||
Debt Instrument, Collateral Amount | $ 150,900,000 | $ 150,900,000 | $ 150,900,000 | ||||||||||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Additional and Market Whole Amount [Member] | |||||||||||||||||||
Debt Instrument, Voluntary Prepayment Premium, Aggregate Principal Amount, Percentage | 1.00% | 1.00% | 1.00% | ||||||||||||||||
The 11.0% 2017 Amortizing Note [Member] | Senior Amortizing Notes [Member] | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 11.00% | 11.00% | 11.00% | 11.00% | ||||||||||||||
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Notes Payable and Term Loan [Member] | October 31, 2016 [Member] | |||||||||||||||||||
Prior Period Reclassification Adjustment | $ 20,200,000 | ||||||||||||||||||
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of July 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $13.5 million and $32.4 million, respectively. | ||||||||||||||||||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at July 31, 2017 were $15.9 million. |
Note 11 - Senior Notes and Te52
Note 11 - Senior Notes and Term Loan - Senior Secured, Senior and Senior Subordinated Notes (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 | |
Senior Secured Term Loan [Member] | |||
Senior Notes | [1],[2] | $ 72,699 | $ 72,646 |
Senior Secured Notes [Member] | |||
Senior Notes | [1],[2] | 1,091,206 | 1,041,089 |
Senior Secured Notes [Member] | The 7.25% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 569,641 | |
Senior Secured Notes [Member] | The 10.0% 2018 Notes [Member] | |||
Senior Notes | [1],[2] | 68,951 | |
Senior Secured Notes [Member] | The 9.125% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 143,337 | |
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 74,298 | 74,140 |
Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member] | |||
Senior Notes | [1],[2] | 53,049 | 53,022 |
Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member] | |||
Senior Notes | [1],[2] | 133,292 | 131,998 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | |||
Senior Notes | [1],[2] | 435,060 | |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | |||
Senior Notes | [1],[2] | 395,507 | |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||
Senior Notes | [1],[2] | 365,923 | 396,148 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | |||
Senior Notes | [1],[2] | 131,839 | 148,800 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member] | |||
Senior Notes | [1],[2] | 234,084 | 247,348 |
Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member] | |||
Senior Notes | [1],[2] | 2,018 | 6,152 |
Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member] | |||
Senior Notes | [1],[2] | $ 53,155 | $ 57,298 |
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of July 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $13.5 million and $32.4 million, respectively. | ||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at July 31, 2017 were $15.9 million. |
Note 11 - Senior Notes and Te53
Note 11 - Senior Notes and Term Loan - Senior Secured, Senior and Senior Subordinated Notes (Details) (Parentheticals) | 9 Months Ended | 12 Months Ended | ||||
Jul. 31, 2017 | Oct. 31, 2016 | Jul. 27, 2017 | ||||
Senior Secured Notes [Member] | The 7.25% 2020 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | [1],[2] | 7.25% | [1],[2] | 7.25% | |
Debt Instrument, Maturity Date | [1],[2] | Oct. 15, 2020 | Oct. 15, 2020 | |||
Senior Secured Notes [Member] | The 10.0% 2018 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | [1],[2] | 10.00% | [1],[2] | 10.00% | |
Debt Instrument, Maturity Date | [1],[2] | Oct. 15, 2018 | Oct. 15, 2018 | |||
Senior Secured Notes [Member] | The 9.125% 2020 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.125% | [1],[2] | 9.125% | [1],[2] | 9.125% | |
Debt Instrument, Maturity Date | [1],[2] | Nov. 15, 2020 | Nov. 15, 2020 | |||
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% | |||
Debt Instrument, Maturity Date | [1],[2] | Nov. 15, 2020 | Nov. 15, 2020 | |||
Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 2.00% | 2.00% | |||
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2021 | Nov. 1, 2021 | |||
Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 5.00% | 5.00% | |||
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2021 | Nov. 1, 2021 | |||
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | [1],[2] | 10.00% | [1],[2] | 10.00% | |
Debt Instrument, Maturity Date | [1],[2] | Jul. 15, 2022 | Jul. 15, 2022 | |||
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | [1],[2] | 10.50% | [1],[2] | 10.50% | |
Debt Instrument, Maturity Date | [1],[2] | Jul. 15, 2024 | Jul. 15, 2024 | |||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | 7.00% | |||
Debt Instrument, Maturity Date | [1],[2] | Jan. 15, 2019 | Jan. 15, 2019 | |||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 8.00% | 8.00% | |||
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2019 | Nov. 1, 2019 | |||
Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 11.00% | 11.00% | |||
Debt Instrument, Maturity Date | [1],[2] | Dec. 1, 2017 | Dec. 1, 2017 | |||
Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member] | ||||||
Debt Instrument, Maturity Date | [1],[2] | Dec. 1, 2017 | Dec. 1, 2017 | |||
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of July 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $13.5 million and $32.4 million, respectively. | |||||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at July 31, 2017 were $15.9 million. |
Note 12 - Per Share Calculati54
Note 12 - Per Share Calculation (Details Textual) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Non Vested Stock and Outstanding Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Convertible Debt Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,000 | 15,200 | 10,100 | 15,200 |
Out of the Money Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,500 | 6,800 | 4,600 | 7,300 |
Note 13 - Preferred Stock (Deta
Note 13 - Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jul. 12, 2005 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | [1] |
Preferred Stock, Shares Issued | 5,600 | 5,600 | 5,600 | ||||
Preferred Class A [Member] | |||||||
Preferred Stock, Shares Issued | 5,600 | ||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 25,000 | ||||||
Preferred Stock, Depositary Shares, Number of Shares of Preferred Stock in Each Depositary Share | 0.001 | ||||||
Payments of Dividends | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 14 - Common Stock (Details
Note 14 - Common Stock (Details Textual) shares in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2017shares | Jul. 31, 2017shares | Dec. 05, 2008 | Aug. 15, 2008 | Aug. 04, 2008 | Jul. 03, 2001shares | |
Common Stock Dividends Percent of Increase from Class A to Class B | 110.00% | 110.00% | ||||
Conversion of Stock From Class B to Class A Conversion Ratio | 1 | |||||
Shareholder Ownership Percentage of Increase | 50.00% | |||||
Minimum [Member] | ||||||
Shareholder Ownership Percentage | 5.00% | |||||
Common Class B [Member] | ||||||
Common Stock Voting Rights Votes per Share Number | 10 | |||||
Common Class A [Member] | ||||||
Number of Rights | 1 | |||||
Shareholder Ownership Percentage | 4.90% | |||||
Shareholders Pre Existing Ownership Percentage | 5.00% | |||||
Shareholders Current Ownership Percentage | 5.00% | |||||
Shareholders Ownership Percentage on Transfers | 5.00% | |||||
Shareholders Ownership Percentage Threshold | 5.00% | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 4,000 | |||||
Stock Repurchased During Period, Shares | 0 | 0 | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 500 | 500 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2018 | |
Income Tax Expense (Benefit) | $ 287,036 | $ 1,567 | $ 286,485 | $ (4,597) | |
Deferred Tax Assets, Valuation Allowance | 922,000 | 922,000 | |||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (50,173) | 1,093 | (57,549) | (29,705) | |
Gain (Loss) on Extinguishment of Debt | (42,258) | (34,854) | |||
Scenario, Forecast [Member] | |||||
Increase in Interest Incurred Per Year, Amount | $ 23,400 | ||||
State and Local Jurisdiction [Member] | |||||
Income Tax Expense (Benefit) | 8,523 | $ 1,434 | 10,797 | $ 4,995 | |
State and Local Jurisdiction [Member] | Between 2017 and 2036 [Member] | |||||
Operating Loss Carryforwards | 2,200,000 | 2,200,000 | |||
State and Local Jurisdiction [Member] | Between 2017 and 2021 [Member] | |||||
Operating Loss Carryforwards | 301,700 | 301,700 | |||
State and Local Jurisdiction [Member] | Between 2022 and 2026 [Member] | |||||
Operating Loss Carryforwards | 253,900 | 253,900 | |||
State and Local Jurisdiction [Member] | Between 2027 and 2031 [Member] | |||||
Operating Loss Carryforwards | 1,327,300 | 1,327,300 | |||
State and Local Jurisdiction [Member] | Between 2032 and 2036 [Member] | |||||
Operating Loss Carryforwards | $ 348,000 | $ 348,000 |
Note 16 - Operating and Repor58
Note 16 - Operating and Reporting Segments (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Oct. 31, 2016USD ($) | |||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 23,559 | $ 23,159 | $ 68,483 | $ 68,468 | ||
Gain (Loss) on Extinguishment of Debt | (42,258) | (34,854) | |||||
Other Nonoperating Income (Expense) | 26 | (957) | (1,466) | (3,488) | |||
Deferred Tax Assets, Net of Valuation Allowance | $ 283,633 | [3] | |||||
Qualifying Assets Not Exceeding Debt [Member] | |||||||
Real Estate Inventory Expense Not Eligible for Capitalization | 17,200 | $ 10,100 | 46,500 | $ 36,800 | |||
Corporate, Non-Segment [Member] | |||||||
Real Estate Inventory Expense Not Eligible for Capitalization | 46,500 | ||||||
Gain (Loss) on Extinguishment of Debt | (42,300) | (34,900) | |||||
Other Nonoperating Income (Expense) | 900 | 100 | |||||
General and Administrative Expense | 15,700 | $ 47,400 | |||||
Deferred Tax Assets, Net of Valuation Allowance | $ 283,600 | ||||||
Corporate, Non-Segment [Member] | Qualifying Assets Not Exceeding Debt [Member] | |||||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 17,200 | ||||||
Homebuilding [Member] | |||||||
Number of Reportable Segments | 6 | ||||||
[1] | 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: | ||||||
[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 $17.2 million and $10.1 million for the three months ended July 31, 2017 and 2016, respectively, and $46.5 million and $36.8 million for the nine months ended July 31, 2017 and 2016, 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 $6.4 million and $13.1 million for the three months ended July 31, 2017 and 2016, respectively, and $22.0 million and $31.6 million for the nine months ended July 31, 2017 and 2016, respectively. | ||||||
[3] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 16 - Operating and Repor59
Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Total revenues | $ 592,035 | $ 716,850 | $ 1,729,979 | $ 1,947,178 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (50,173) | 1,093 | (57,549) | (29,705) | |
Corporate, Non-Segment [Member] | |||||
Total revenues | 483 | 29 | 755 | (63) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | [1] | (74,266) | (24,704) | (128,701) | (82,545) |
Homebuilding [Member] | Operating Segments [Member] | |||||
Total revenues | 576,559 | 700,336 | 1,686,888 | 1,895,527 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 17,967 | 18,228 | 51,898 | 27,875 | |
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | |||||
Total revenues | 39,956 | 69,989 | 144,481 | 196,539 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (5,737) | (995) | (7,553) | (4,945) | |
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | |||||
Total revenues | 113,298 | 111,739 | 314,124 | 295,546 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 3,714 | 3,467 | 8,514 | 7,161 | |
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | |||||
Total revenues | 41,052 | 72,581 | 126,773 | 249,132 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (3,313) | (2,452) | (5,771) | (8,034) | |
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | |||||
Total revenues | 68,435 | 96,323 | 181,654 | 186,873 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (1,580) | (5,621) | (1,446) | (14,710) | |
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | |||||
Total revenues | 209,295 | 248,546 | 617,959 | 729,606 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 19,010 | 20,532 | 50,718 | 55,392 | |
Homebuilding [Member] | West [Member] | Operating Segments [Member] | |||||
Total revenues | 104,523 | 101,158 | 301,897 | 237,831 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 5,873 | 3,297 | 7,436 | (6,989) | |
Financial Services [Member] | Operating Segments [Member] | |||||
Total revenues | 14,993 | 16,485 | 42,336 | 51,714 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 6,126 | $ 7,569 | $ 19,254 | $ 24,965 | |
[1] | Corporate and unallocated for the three months ended July 31, 2017 included corporate general and administrative costs of $15.7 million, interest expense of $17.2 million (a component of Other interest on our Condensed Consolidated Statements of Operations), loss on extinguishment of debt of $42.3 million and $0.9 million of other income and expenses primarily related to interest income, rental income and stock compensation. Corporate and unallocated for the nine months ended July 31, 2017 included corporate general and administrative costs of $47.4 million, interest expense of $46.5 million (a component of Other interest on our Condensed Consolidated Statements of Operations), loss on extinguishment of debt of $34.9 million and $0.1 million of other income and expenses primarily related to interest income, rental income, bond amortization and stock compensation. |
Note 16 - Operating and Repor60
Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 | ||
Assets | $ 1,822,319 | $ 2,354,956 | [1] | |
Corporate, Non-Segment [Member] | ||||
Assets | [2] | 363,770 | 696,872 | |
Homebuilding [Member] | ||||
Assets | 1,712,597 | 1,874,093 | [1] | |
Homebuilding [Member] | Operating Segments [Member] | ||||
Assets | 1,348,827 | 1,460,854 | ||
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | ||||
Assets | 183,486 | 219,363 | ||
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | ||||
Assets | 280,711 | 292,899 | ||
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | ||||
Assets | 104,962 | 111,596 | ||
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | ||||
Assets | 246,251 | 226,124 | ||
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | ||||
Assets | 335,601 | 341,472 | ||
Homebuilding [Member] | West [Member] | Operating Segments [Member] | ||||
Assets | 197,816 | 269,400 | ||
Financial Services [Member] | ||||
Assets | 109,722 | 197,230 | ||
Financial Services [Member] | Operating Segments [Member] | ||||
Assets | $ 109,722 | $ 197,230 | ||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). | |||
[2] | Includes $283.6 million of income taxes receivable, including deferred tax assets, as of October 31, 2016. |
Note 17 - Investments in Unco61
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2015USD ($) | Jul. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Oct. 31, 2016USD ($) | |
Number of Owned Communities Transferred to the Joint Venture | 1 | 8 | |||||
Number of Optioned Communities Transferred to the Joint Venture | 3 | 1 | |||||
Proceeds from Transfer of Land to Joint Venture | $ 11,200 | $ 29,800 | |||||
Joint Venture Financing Percent of Assets | 50.00% | 50.00% | |||||
Joint Venture Total Debt to Capitalization Ratio | 50.00% | 50.00% | |||||
Corporate Joint Venture [Member] | |||||||
Advances to Affiliate | $ 20,800 | $ 20,800 | $ 8,900 | ||||
Joint Venture Total Debt to Capitalization Ratio | 50.00% | 50.00% | 41.00% | ||||
Land Development Venture [Member] | |||||||
Proceeds from Transfer of Land to Joint Venture | $ 25,700 | ||||||
Homebuilding [Member] | |||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 108,560 | $ 108,560 | $ 100,502 | ||||
Management Fees Revenue | $ 2,500 | $ 1,200 | $ 7,600 | $ 3,100 |
Note 17 - Investments in Unco62
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Debt to capitalization ratio | 50.00% | 50.00% | |||
Our share of net (loss) income | $ (3,881) | $ (2,401) | $ (10,109) | $ (5,227) | |
Corporate Joint Venture [Member] | |||||
Others | 227,706 | 227,706 | $ 220,957 | ||
Total equity | 315,440 | 315,440 | 312,556 | ||
Total liabilities and equity | $ 738,633 | $ 738,633 | $ 603,842 | ||
Debt to capitalization ratio | 50.00% | 50.00% | 41.00% | ||
Cash and cash equivalents | $ 38,724 | $ 38,724 | $ 50,020 | ||
Inventories | 670,092 | 670,092 | 527,957 | ||
Other assets | 29,817 | 29,817 | 25,865 | ||
Total assets | 738,633 | 738,633 | 603,842 | ||
Accounts payable and accrued liabilities | 109,268 | 109,268 | 74,114 | ||
Notes payable | 313,925 | 313,925 | 217,172 | ||
Total liabilities | 423,193 | 423,193 | 291,286 | ||
Hovnanian Enterprises, Inc. | 87,734 | 87,734 | 91,599 | ||
Cost of sales and expenses | (72,284) | (38,388) | (230,290) | (95,366) | |
Joint venture net (loss) income | (7,885) | (6,024) | (11,538) | (15,359) | |
Our share of net (loss) income | (4,008) | (2,380) | (10,254) | (5,080) | |
Revenues | 64,399 | 32,364 | 218,752 | 80,007 | |
Homebuilding Joint Venture [Member] | Corporate Joint Venture [Member] | |||||
Others | 223,055 | 223,055 | 215,762 | ||
Total equity | 307,593 | 307,593 | 304,141 | ||
Total liabilities and equity | $ 729,828 | $ 729,828 | $ 591,354 | ||
Debt to capitalization ratio | 50.00% | 50.00% | 41.00% | ||
Cash and cash equivalents | $ 38,501 | $ 38,501 | $ 48,542 | ||
Inventories | 661,510 | 661,510 | 516,947 | ||
Other assets | 29,817 | 29,817 | 25,865 | ||
Total assets | 729,828 | 729,828 | 591,354 | ||
Accounts payable and accrued liabilities | 108,799 | 108,799 | 72,302 | ||
Notes payable | 313,436 | 313,436 | 214,911 | ||
Total liabilities | 422,235 | 422,235 | 287,213 | ||
Hovnanian Enterprises, Inc. | 84,538 | 84,538 | 88,379 | ||
Cost of sales and expenses | (70,411) | (37,245) | (225,594) | (92,904) | |
Joint venture net (loss) income | (7,801) | (6,100) | (11,491) | (15,733) | |
Our share of net (loss) income | (3,966) | (2,418) | (10,230) | (5,267) | |
Revenues | 62,610 | 31,145 | 214,103 | 77,171 | |
Land Development Joint Venture [Member] | Corporate Joint Venture [Member] | |||||
Others | 4,651 | 4,651 | 5,195 | ||
Total equity | 7,847 | 7,847 | 8,415 | ||
Total liabilities and equity | $ 8,805 | $ 8,805 | $ 12,488 | ||
Debt to capitalization ratio | 6.00% | 6.00% | 21.00% | ||
Cash and cash equivalents | $ 223 | $ 223 | $ 1,478 | ||
Inventories | 8,582 | 8,582 | 11,010 | ||
Other assets | |||||
Total assets | 8,805 | 8,805 | 12,488 | ||
Accounts payable and accrued liabilities | 469 | 469 | 1,812 | ||
Notes payable | 489 | 489 | 2,261 | ||
Total liabilities | 958 | 958 | 4,073 | ||
Hovnanian Enterprises, Inc. | 3,196 | 3,196 | $ 3,220 | ||
Cost of sales and expenses | (1,873) | (1,143) | (4,696) | (2,462) | |
Joint venture net (loss) income | (84) | 76 | (47) | 374 | |
Our share of net (loss) income | (42) | 38 | (24) | 187 | |
Revenues | $ 1,789 | $ 1,219 | $ 4,649 | $ 2,836 |
Note 19 - Fair Value of Finan63
Note 19 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2016 | |
Loans Held for Sale Mortgages Unpaid Principal | $ 72.9 | $ 72.9 | $ 149.4 | ||
Other Commitment | 29.5 | 29.5 | |||
Impairment of Real Estate | 3.2 | $ 1.3 | 7.4 | $ 16.4 | |
Fair Value, Inputs, Level 2 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||
Notes Payable, Fair Value Disclosure | 367 | 367 | 251.7 | ||
Fair Value, Inputs, Level 3 [Member] | Senior Secured Notes [Member] | |||||
Notes Payable, Fair Value Disclosure | 1,100 | 1,100 | 883 | ||
Fair Value, Inputs, Level 3 [Member] | Senior Amortizing Notes [Member] | |||||
Notes Payable, Fair Value Disclosure | 2.1 | 2.1 | 6.3 | ||
Fair Value, Inputs, Level 3 [Member] | Senior Exchangeable Notes [Member] | |||||
Notes Payable, Fair Value Disclosure | 54.1 | 54.1 | $ 55.2 | ||
Loan Origination Commitments [Member] | |||||
Loan Applications in Process | 539.2 | $ 539.2 | |||
Loan Origination Commitments [Member] | Maximum [Member] | |||||
Number of Days in Committment | 60 days | ||||
Interest Rate Committed Loan Applications [Member] | |||||
Interest Rate Committed Loan Applications | $ 57.9 | $ 57.9 |
Note 19 - Fair Value of Finan64
Note 19 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 | |
Total | $ 77,471 | $ 165,083 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Mortgage loans held for sale | [1] | 77,505 | 165,077 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | |||
Derivative Fair Value | 65 | (80) | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | |||
Derivative Fair Value | $ (99) | $ 86 | |
[1] | The aggregate unpaid principal balance was $72.9 million and $149.4 million at July 31, 2017 and October 31, 2016, respectively. |
Note 19 - Fair Value of Finan65
Note 19 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Loans Held for Sale [Member] | ||||
Changes in fair value included in net loss all reflected in financial services revenues | $ (532) | $ (175) | $ (2,911) | $ 3,654 |
Interest Rate Lock Commitments [Member] | ||||
Changes in fair value included in net loss all reflected in financial services revenues | (34) | 560 | 145 | 590 |
Forward Contracts [Member] | ||||
Changes in fair value included in net loss all reflected in financial services revenues | $ 206 | $ (268) | $ (186) | $ (818) |
Note 19 - Fair Value of Finan66
Note 19 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Total Losses | $ (3,200) | $ (1,300) | $ (7,400) | $ (16,400) |
PreImpairment Value | 15,900 | 5,400 | 37,000 | 50,800 |
Sold and Unsold Homes and Lots Under Development [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Total Losses | (4,136) | (14,399) | ||
Fair Value of Inventory | 10,640 | 29,839 | ||
PreImpairment Value | 14,776 | 44,238 | ||
Land and Land Options Held for Future Development or Sale [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Total Losses | (3,215) | (1,282) | (3,296) | (1,976) |
Fair Value of Inventory | 12,637 | 4,125 | 18,882 | 4,600 |
PreImpairment Value | $ 15,852 | $ 5,407 | $ 22,178 | $ 6,576 |
Note 20 - Financial Informati67
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors (Details Textual) - USD ($) | 9 Months Ended | |||||
Jul. 31, 2017 | Jul. 27, 2017 | Oct. 31, 2016 | ||||
Direct or Indirect Ownership in Guarantor Subsidiaries Percentage | 100.00% | |||||
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% | |||
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | ||||||
Debt Instrument, Face Amount | $ 440,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | [1],[2] | 10.00% | 10.00% | [1],[2] | |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | ||||||
Debt Instrument, Face Amount | $ 400,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | [1],[2] | 10.50% | 10.50% | [1],[2] | |
Senior Secured Notes [Member] | Subsidiary Issuer [Member] | ||||||
Debt Instrument, Face Amount | $ 1,110,000,000 | |||||
Senior Notes | $ 1,091,200,000 | |||||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | 7.00% | |||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 8.00% | 8.00% | |||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | Subsidiary Issuer [Member] | ||||||
Debt Instrument, Face Amount | $ 368,500,000 | |||||
Senior Notes | 365,900,000 | |||||
Senior Amortizing Notes [Member] | Subsidiary Issuer [Member] | ||||||
Debt Instrument, Face Amount | 2,100,000 | |||||
Senior Notes | 2,000,000 | |||||
Senior Exchangeable Notes [Member] | Subsidiary Issuer [Member] | ||||||
Debt Instrument, Face Amount | 53,300,000 | |||||
Senior Notes | $ 53,200,000 | |||||
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of July 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $13.5 million and $32.4 million, respectively. | |||||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at July 31, 2017 were $15.9 million. |
Note 20 - Financial Informati68
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Oct. 31, 2016 | |
Notes payable and term loan and Revolving credit facility | $ 1,650,543 | $ 1,657,758 | |
Stockholders’ (deficit) equity | (471,162) | (128,510) | [1] |
Total liabilities and equity | 1,822,319 | 2,354,956 | [1] |
Income taxes receivable | 283,633 | ||
Assets | 1,822,319 | 2,354,956 | [1] |
Liabilities | 2,293,481 | 2,483,466 | [1] |
Income taxes (receivable) payable | 1,796 | ||
Homebuilding [Member] | |||
Assets | 1,712,597 | 1,874,093 | [1] |
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 551,573 | 653,263 | |
Liabilities | 2,202,116 | 2,311,021 | [1] |
Financial Services [Member] | |||
Assets | 109,722 | 197,230 | |
Liabilities | 89,569 | 172,445 | [1] |
Consolidation, Eliminations [Member] | |||
Notes payable and term loan and Revolving credit facility | |||
Intercompany payable | (1,230,557) | (1,315,446) | |
Amounts due to consolidated subsidiaries | (391,515) | (82,951) | |
Stockholders’ (deficit) equity | 10,969 | (359,591) | |
Total liabilities and equity | (1,611,103) | (1,757,988) | |
Intercompany receivable | (1,230,557) | (1,315,446) | |
Investments in and amounts due from consolidated subsidiaries | (380,546) | (442,542) | |
Assets | (1,611,103) | (1,757,988) | |
Income taxes (receivable) payable | |||
Consolidation, Eliminations [Member] | Homebuilding [Member] | |||
Assets | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | |||
Parent Company [Member] | Reportable Legal Entities [Member] | |||
Notes payable and term loan and Revolving credit facility | |||
Intercompany payable | 153,060 | 157,993 | |
Amounts due to consolidated subsidiaries | 317,579 | 82,951 | |
Stockholders’ (deficit) equity | (471,162) | (128,510) | |
Total liabilities and equity | 115,940 | ||
Income taxes receivable | 115,940 | ||
Assets | 115,940 | ||
Income taxes (receivable) payable | (2,233) | ||
Parent Company [Member] | Reportable Legal Entities [Member] | Homebuilding [Member] | |||
Assets | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 2,756 | 3,506 | |
Subsidiary Issuer [Member] | Reportable Legal Entities [Member] | |||
Notes payable and term loan and Revolving credit facility | 1,648,211 | 1,652,357 | |
Amounts due to consolidated subsidiaries | 73,936 | ||
Stockholders’ (deficit) equity | (294,926) | (208,608) | |
Total liabilities and equity | 1,428,792 | 1,444,867 | |
Income taxes receivable | (58,597) | ||
Intercompany receivable | 1,216,923 | 1,227,334 | |
Investments in and amounts due from consolidated subsidiaries | 4,914 | ||
Assets | 1,428,792 | 1,444,867 | |
Income taxes (receivable) payable | |||
Subsidiary Issuer [Member] | Reportable Legal Entities [Member] | Homebuilding [Member] | |||
Assets | 211,869 | 271,216 | |
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 1,571 | 1,118 | |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Notes payable and term loan and Revolving credit facility | 1,834 | 5,084 | |
Intercompany payable | 1,077,497 | 1,157,453 | |
Stockholders’ (deficit) equity | (96,592) | 130,568 | |
Total liabilities and equity | 1,487,652 | 1,871,606 | |
Income taxes receivable | 226,258 | ||
Investments in and amounts due from consolidated subsidiaries | 380,546 | 437,628 | |
Assets | 1,487,652 | 1,871,606 | |
Income taxes (receivable) payable | 4,029 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Homebuilding [Member] | |||
Assets | 1,088,088 | 1,194,267 | |
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 481,863 | 565,163 | |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Financial Services [Member] | |||
Assets | 19,018 | 13,453 | |
Liabilities | 19,021 | 13,338 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Notes payable and term loan and Revolving credit facility | 498 | 317 | |
Stockholders’ (deficit) equity | 380,549 | 437,631 | |
Total liabilities and equity | 516,978 | 680,531 | |
Income taxes receivable | 32 | ||
Intercompany receivable | 13,634 | 88,112 | |
Assets | 516,978 | 680,531 | |
Income taxes (receivable) payable | |||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Homebuilding [Member] | |||
Assets | 412,640 | 408,610 | |
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 65,383 | 83,476 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Financial Services [Member] | |||
Assets | 90,704 | 183,777 | |
Liabilities | $ 70,548 | $ 159,107 | |
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 20 - Financial Informati69
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Gain (Loss) on Extinguishment of Debt | $ (42,258) | $ (34,854) | ||
Income (loss) from unconsolidated joint ventures | (3,881) | (2,401) | (10,109) | (5,227) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (50,173) | 1,093 | (57,549) | (29,705) |
State and federal income tax provision (benefit) | 287,036 | 1,567 | 286,485 | (4,597) |
Net (loss) income | (337,209) | (474) | (344,034) | (25,108) |
Total revenues | 592,035 | 716,850 | 1,729,979 | 1,947,178 |
Total expenses | 596,069 | 713,356 | 1,742,565 | 1,971,656 |
Homebuilding [Member] | ||||
Homebuilding revenue | 577,042 | 700,365 | 1,687,643 | 1,895,464 |
Total expenses | 587,202 | 704,440 | 1,719,483 | 1,944,907 |
Financial Services [Member] | ||||
Financial services revenue | 14,993 | 16,485 | 42,336 | 51,714 |
Total expenses | 8,867 | 8,916 | 23,082 | 26,749 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Income (loss) from unconsolidated joint ventures | 83 | 17 | 119 | 40 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (8,761) | 3,339 | (31,136) | (49,310) |
State and federal income tax provision (benefit) | 200,487 | 8,987 | 238,038 | 37,586 |
Equity in (loss) income of consolidated subsidiaries | 12,549 | 4,839 | 42,014 | 36,387 |
Net (loss) income | (196,699) | (809) | (227,160) | (50,509) |
Intercompany charges | 21,792 | 27,239 | 67,950 | 87,540 |
Total revenues | 491,915 | 597,769 | 1,436,476 | 1,601,018 |
Total expenses | 500,759 | 594,447 | 1,467,731 | 1,650,368 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||||
Homebuilding revenue | 489,346 | 595,124 | 1,428,660 | 1,593,452 |
Total expenses | 477,253 | 565,447 | 1,394,594 | 1,557,620 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | Financial Services [Member] | ||||
Financial services revenue | 2,569 | 2,645 | 7,816 | 7,566 |
Total expenses | 1,714 | 1,761 | 5,187 | 5,208 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Income (loss) from unconsolidated joint ventures | (3,964) | (2,418) | (10,228) | (5,267) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 12,581 | 4,839 | 42,046 | 36,387 |
State and federal income tax provision (benefit) | 32 | 32 | ||
Net (loss) income | 12,549 | 4,839 | 42,014 | 36,387 |
Intercompany charges | (806) | |||
Total revenues | 100,120 | 119,081 | 293,503 | 346,160 |
Total expenses | 83,575 | 111,824 | 241,229 | 304,506 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||||
Homebuilding revenue | 87,696 | 105,241 | 258,983 | 302,012 |
Total expenses | 76,442 | 105,491 | 223,354 | 282,981 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Financial Services [Member] | ||||
Financial services revenue | 12,424 | 13,840 | 34,520 | 44,148 |
Total expenses | 7,133 | 7,139 | 17,875 | 21,525 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | ||||
Gain (Loss) on Extinguishment of Debt | (42,258) | (34,854) | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (53,598) | (5,792) | (66,065) | (13,892) |
State and federal income tax provision (benefit) | (43,308) | (6,936) | (58,597) | (22,264) |
Equity in (loss) income of consolidated subsidiaries | (49,961) | 93 | (78,850) | (26,979) |
Net (loss) income | (60,251) | 1,237 | (86,318) | (18,607) |
Intercompany charges | 21,792 | 26,433 | 67,950 | 87,540 |
Total revenues | 21,792 | 26,433 | 67,950 | 87,540 |
Total expenses | 33,132 | 32,225 | 99,161 | 101,432 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | Homebuilding [Member] | ||||
Total expenses | 33,132 | 32,225 | 99,161 | 101,432 |
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (395) | (1,293) | (2,394) | (2,890) |
State and federal income tax provision (benefit) | 129,825 | (484) | 107,012 | (19,919) |
Equity in (loss) income of consolidated subsidiaries | (206,989) | 335 | (234,628) | (42,137) |
Net (loss) income | (337,209) | (474) | (344,034) | (25,108) |
Total expenses | 395 | 1,293 | 2,394 | 2,890 |
Reportable Legal Entities [Member] | Parent Company [Member] | Homebuilding [Member] | ||||
Total expenses | 375 | 1,277 | 2,374 | 2,874 |
Reportable Legal Entities [Member] | Parent Company [Member] | Financial Services [Member] | ||||
Total expenses | 20 | 16 | 20 | 16 |
Consolidation, Eliminations [Member] | ||||
State and federal income tax provision (benefit) | ||||
Equity in (loss) income of consolidated subsidiaries | 244,401 | (5,267) | 271,464 | 32,729 |
Net (loss) income | 244,401 | (5,267) | 271,464 | 32,729 |
Intercompany charges | (21,792) | (26,433) | (67,950) | (87,540) |
Total revenues | (21,792) | (26,433) | (67,950) | (87,540) |
Total expenses | $ (21,792) | $ (26,433) | $ (67,950) | $ (87,540) |
Note 20 - Financial Informati70
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Purchase of property, equipment & other fixed assets and acquisitions | $ (5,034) | $ (5,094) | ||
Investments in and advances to unconsolidated joint ventures | (33,403) | (39,089) | ||
Distributions of capital from unconsolidated joint ventures | 13,976 | 6,403 | ||
Net cash provided by (used in) investing activities | (22,568) | (36,176) | ||
Net payments related to mortgages and notes | (12,418) | |||
Net (payments) proceeds related to mortgages and notes | (53,103) | |||
Net payments from model sale leaseback financing programs | (7,367) | (620) | ||
Net payments from land bank financing programs | (46,020) | 91,719 | ||
Proceeds from senior secured notes | 840,000 | |||
Payments related to senior secured, senior, senior amortizing and senior exchangeable notes | (861,976) | (263,994) | ||
Net proceeds from revolving credit facility | 5,000 | |||
Net payments related to mortgage warehouse lines of credit | (83,525) | 6,781 | ||
Deferred financing costs from land bank financing programs and note issuances | (12,611) | (7,866) | ||
Intercompany financing activities | ||||
Net cash provided by (used in) financing activities | (183,917) | (222,083) | ||
Net decrease in cash and cash equivalents | (61,033) | (63,703) | ||
Cash and cash equivalents balance, beginning of period | 346,765 | 253,745 | ||
Net (loss) income | $ (337,209) | $ (474) | (344,034) | (25,108) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | 489,486 | 219,664 | ||
Net cash (used in) provided by operating activities | 145,452 | 194,556 | ||
Proceeds from sale of property and assets | 209 | 643 | ||
Cash and cash equivalents balance, end of period | 285,732 | 190,042 | 285,732 | 190,042 |
Related to Mortgage Company [Member] | ||||
(Increase) decrease in restricted cash | 1,686 | 88 | ||
Related to Letters of Credit [Member] | ||||
(Increase) decrease in restricted cash | (2) | 873 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
Net (payments) proceeds related to mortgages and notes | ||||
Net payments from model sale leaseback financing programs | ||||
Net payments from land bank financing programs | ||||
Proceeds from senior secured notes | ||||
Payments related to senior secured, senior, senior amortizing and senior exchangeable notes | ||||
Net payments related to mortgage warehouse lines of credit | ||||
Intercompany financing activities | 229,695 | 34,197 | ||
Net cash provided by (used in) financing activities | 229,695 | 34,197 | ||
Net decrease in cash and cash equivalents | ||||
Net (loss) income | (337,209) | (474) | (344,034) | (25,108) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | 114,339 | (9,089) | ||
Net cash (used in) provided by operating activities | (229,695) | (34,197) | ||
Reportable Legal Entities [Member] | Parent Company [Member] | Related to Mortgage Company [Member] | ||||
(Increase) decrease in restricted cash | ||||
Reportable Legal Entities [Member] | Parent Company [Member] | Related to Letters of Credit [Member] | ||||
(Increase) decrease in restricted cash | ||||
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | ||||
Investments in and advances to unconsolidated joint ventures | (624) | (110) | ||
Distributions of capital from unconsolidated joint ventures | (186) | |||
Intercompany investing activities | 89,261 | 231,254 | ||
Net cash provided by (used in) investing activities | 88,635 | 231,831 | ||
Net (payments) proceeds related to mortgages and notes | ||||
Net payments from model sale leaseback financing programs | ||||
Net payments from land bank financing programs | ||||
Proceeds from senior secured notes | 840,000 | |||
Payments related to senior secured, senior, senior amortizing and senior exchangeable notes | (861,976) | (263,994) | ||
Net proceeds from revolving credit facility | 5,000 | |||
Net payments related to mortgage warehouse lines of credit | ||||
Deferred financing costs from land bank financing programs and note issuances | (11,295) | (2,139) | ||
Net cash provided by (used in) financing activities | (33,271) | (261,133) | ||
Net decrease in cash and cash equivalents | (59,464) | (73,209) | ||
Cash and cash equivalents balance, beginning of period | 261,553 | 199,318 | ||
Net (loss) income | (60,251) | 1,237 | (86,318) | (18,607) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | (28,510) | (25,300) | ||
Net cash (used in) provided by operating activities | (114,828) | (43,907) | ||
Cash and cash equivalents balance, end of period | 202,089 | 126,109 | 202,089 | 126,109 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | Related to Mortgage Company [Member] | ||||
(Increase) decrease in restricted cash | ||||
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | Related to Letters of Credit [Member] | ||||
(Increase) decrease in restricted cash | (2) | 873 | ||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Purchase of property, equipment & other fixed assets and acquisitions | (5,034) | (5,064) | ||
Investments in and advances to unconsolidated joint ventures | (467) | (1,395) | ||
Distributions of capital from unconsolidated joint ventures | 1,087 | |||
Net cash provided by (used in) investing activities | (5,302) | (4,750) | ||
Net payments related to mortgages and notes | (8,618) | |||
Net (payments) proceeds related to mortgages and notes | (53,780) | |||
Net payments from model sale leaseback financing programs | (4,094) | (977) | ||
Net payments from land bank financing programs | (36,047) | 69,388 | ||
Proceeds from senior secured notes | ||||
Payments related to senior secured, senior, senior amortizing and senior exchangeable notes | ||||
Net payments related to mortgage warehouse lines of credit | ||||
Deferred financing costs from land bank financing programs and note issuances | (1,150) | (4,180) | ||
Intercompany financing activities | (393,434) | (245,387) | ||
Net cash provided by (used in) financing activities | (443,343) | (234,936) | ||
Net decrease in cash and cash equivalents | (970) | (323) | ||
Cash and cash equivalents balance, beginning of period | (395) | (4,800) | ||
Net (loss) income | (196,699) | (809) | (227,160) | (50,509) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | 674,835 | 289,872 | ||
Net cash (used in) provided by operating activities | 447,675 | 239,363 | ||
Proceeds from sale of property and assets | 199 | 622 | ||
Cash and cash equivalents balance, end of period | (1,365) | (5,123) | (1,365) | (5,123) |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | Related to Mortgage Company [Member] | ||||
(Increase) decrease in restricted cash | ||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | Related to Letters of Credit [Member] | ||||
(Increase) decrease in restricted cash | ||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Purchase of property, equipment & other fixed assets and acquisitions | (30) | |||
Investments in and advances to unconsolidated joint ventures | (32,312) | (37,584) | ||
Distributions of capital from unconsolidated joint ventures | 13,976 | 5,502 | ||
Net cash provided by (used in) investing activities | (16,640) | (32,003) | ||
Net payments related to mortgages and notes | (3,800) | |||
Net (payments) proceeds related to mortgages and notes | 677 | |||
Net payments from model sale leaseback financing programs | (3,273) | 357 | ||
Net payments from land bank financing programs | (9,973) | 22,331 | ||
Proceeds from senior secured notes | ||||
Payments related to senior secured, senior, senior amortizing and senior exchangeable notes | ||||
Net payments related to mortgage warehouse lines of credit | (83,525) | 6,781 | ||
Deferred financing costs from land bank financing programs and note issuances | (166) | (1,547) | ||
Intercompany financing activities | 74,478 | (20,064) | ||
Net cash provided by (used in) financing activities | (26,259) | 8,535 | ||
Net decrease in cash and cash equivalents | (599) | 9,829 | ||
Cash and cash equivalents balance, beginning of period | 85,607 | 59,227 | ||
Net (loss) income | 12,549 | 4,839 | 42,014 | 36,387 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | 286 | (3,090) | ||
Net cash (used in) provided by operating activities | 42,300 | 33,297 | ||
Proceeds from sale of property and assets | 10 | 21 | ||
Cash and cash equivalents balance, end of period | 85,008 | 69,056 | 85,008 | 69,056 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Related to Mortgage Company [Member] | ||||
(Increase) decrease in restricted cash | 1,686 | 88 | ||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Related to Letters of Credit [Member] | ||||
(Increase) decrease in restricted cash | ||||
Consolidation, Eliminations [Member] | ||||
Intercompany investing activities | (89,261) | (231,254) | ||
Net cash provided by (used in) investing activities | (89,261) | (231,254) | ||
Net (payments) proceeds related to mortgages and notes | ||||
Net payments from model sale leaseback financing programs | ||||
Net payments from land bank financing programs | ||||
Proceeds from senior secured notes | ||||
Payments related to senior secured, senior, senior amortizing and senior exchangeable notes | ||||
Net payments related to mortgage warehouse lines of credit | ||||
Intercompany financing activities | 89,261 | 231,254 | ||
Net cash provided by (used in) financing activities | 89,261 | 231,254 | ||
Net decrease in cash and cash equivalents | ||||
Net (loss) income | $ 244,401 | $ (5,267) | 271,464 | 32,729 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | (271,464) | $ (32,729) | ||
Consolidation, Eliminations [Member] | Related to Mortgage Company [Member] | ||||
(Increase) decrease in restricted cash | ||||
Consolidation, Eliminations [Member] | Related to Letters of Credit [Member] | ||||
(Increase) decrease in restricted cash |
Note 21 - Transactions With R71
Note 21 - Transactions With Related Parties (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | |
Tavit Najarian [Member] | ||||
Related Party Transaction, Amounts of Transaction | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.8 |