Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jan. 31, 2018 | Mar. 02, 2018 | |
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 | Jan. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,470,480 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 132,643,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jan. 31, 2018 | Oct. 31, 2017 |
Cash and cash equivalents | $ 282,288 | $ 469,320 |
Assets | 1,645,937 | 1,900,898 |
Revolving credit facility | 52,000 | 52,000 |
Liabilities | 2,137,126 | 2,361,269 |
Income taxes payable | 2,186 | 2,227 |
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at January 31, 2018 and at October 31, 2017 | 135,299 | 135,299 |
Paid in capital – common stock | 706,451 | 706,466 |
Accumulated deficit | (1,219,185) | (1,188,376) |
Treasury stock – at cost – 11,760,763 shares of Class A common stock and 691,748 shares of Class B common stock at January 31, 2018 and October 31, 2017 | (115,360) | (115,360) |
Total stockholders’ equity deficit | (491,189) | (460,371) |
Total liabilities and equity | 1,645,937 | 1,900,898 |
Common Class A [Member] | ||
Common stock | 1,444 | 1,440 |
Common Class B [Member] | ||
Common stock | 162 | 160 |
Homebuilding [Member] | ||
Cash and cash equivalents | 278,158 | 463,697 |
Restricted cash and cash equivalents | 3,213 | 2,077 |
Sold and unsold homes and lots under development | 807,714 | 744,119 |
Land and land options held for future development or sale | 151,925 | 140,924 |
Consolidated inventory not owned | 93,875 | 124,784 |
Total inventories | 1,053,514 | 1,009,827 |
Investments in and advances to unconsolidated joint ventures | 92,262 | 115,090 |
Receivables, deposits and notes, net | 53,816 | 58,149 |
Property, plant and equipment, net | 19,505 | 52,919 |
Prepaid expenses and other assets | 43,544 | 37,026 |
Assets | 1,544,012 | 1,738,785 |
Accounts payable and other liabilities | 289,099 | 335,057 |
Customers’ deposits | 34,389 | 33,772 |
Liabilities from inventory not owned, net of debt issuance costs | 68,040 | 91,101 |
Revolving credit facility | 52,000 | 52,000 |
Notes payable and term loan (net of discount and debt issuance costs) and accrued interest | 1,545,324 | 1,627,674 |
Liabilities | 2,053,302 | 2,217,128 |
Homebuilding [Member] | Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | ||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | 64,450 | 64,512 |
Homebuilding [Member] | Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | ||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | 13,012 | |
Financial Services [Member] | ||
Cash and cash equivalents | 4,130 | 5,623 |
Restricted cash and cash equivalents | 15,900 | 22,300 |
Other assets | 97,795 | 156,490 |
Liabilities | $ 81,638 | $ 141,914 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Millions | Jan. 31, 2018 | Oct. 31, 2017 |
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) | 144,403,778 | 144,046,073 |
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) | 16,162,230 | 15,999,355 |
Common stock, shares held in Treasury (in shares) | 691,748 | 691,748 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | ||
Total revenues | $ 417,166 | $ 552,009 | |
Inventory impairment loss and land option write-offs | 414 | 3,184 | |
Corporate general and administrative | 19,135 | 15,656 | |
Other interest | [1],[2] | 29,131 | 22,627 |
Other operations | 390 | 1,587 | |
Total expenses | 442,461 | 557,666 | |
Gain on extinguishment of debt | 7,646 | ||
(Loss) from unconsolidated joint ventures | (5,176) | (1,666) | |
(Loss) income before income taxes | (30,471) | 323 | |
Tax provision (benefit) | 338 | 466 | |
Net (loss) | $ (30,809) | $ (143) | |
Net (loss) per common share (in dollars per share) | $ (0.21) | $ 0 | |
Weighted-average number of common shares outstanding, basic (in shares) | 148,028 | 147,535 | |
Net (loss) per common share (in dollars per share) | $ (0.21) | $ 0 | |
Weighted-average number of common shares outstanding, assuming dilution (in shares) | 148,028 | 147,535 | |
State and Local Jurisdiction [Member] | |||
Tax provision (benefit) | $ 338 | $ (18) | |
Domestic Tax Authority [Member] | |||
Tax provision (benefit) | 484 | ||
Homebuilding [Member] | |||
Sale of homes | 401,577 | 531,415 | |
Land sales and other revenues | 4,701 | 7,745 | |
Total homebuilding | 406,278 | 539,160 | |
Cost of sales, excluding interest | 329,527 | 445,027 | |
Cost of sales interest | 12,292 | 18,322 | |
Inventory impairment loss and land option write-offs | 414 | 3,184 | |
Total cost of sales | 342,233 | 466,533 | |
Selling, general and administrative | 43,231 | 44,408 | |
Total homebuilding expenses | 385,464 | 510,941 | |
Financial Services [Member] | |||
Financial services | 10,888 | 12,849 | |
Financial services | $ 8,341 | $ 6,855 | |
[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: Other interest expensed of $29,131 plus interest paid by our mortgage and finance subsidiaries $601 Plus the decrease in accrued interest of 26,750 for 2018 and other interest expensed of $22,627 plus interest paid by our mortgage and finance subsidiaries $629 Plus the decrease in accrued interest of $763 for 2017. | ||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $19.6 million and $13.3 million for the three months ended January 31, 2018 and 2017, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $9.6 million and $9.3 million for the three months ended January 31, 2018 and 2017, respectively. |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity (Unaudited) - 3 months ended Jan. 31, 2018 - USD ($) $ 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, 2017 | 132,285,310 | 15,307,607 | 5,600 | ||||
Balance at Oct. 31, 2017 | $ 1,440 | $ 160 | $ 135,299 | $ 706,466 | $ (1,188,376) | $ (115,360) | $ (460,371) |
Stock options, amortization and issuances (in shares) | 24,000 | ||||||
Stock options, amortization and issuances | 210 | 210 | |||||
Restricted stock amortization, issuances and forfeitures (in shares) | 332,264 | 164,316 | |||||
Restricted stock amortization, issuances and forfeitures | $ 4 | $ 2 | (225) | (219) | |||
Conversion of Class B to Class A common stock (in shares) | 1,441 | (1,441) | |||||
Net (loss) | (30,809) | (30,809) | |||||
Balance (in shares) at Jan. 31, 2018 | 132,643,015 | 15,470,482 | 5,600 | ||||
Balance at Jan. 31, 2018 | $ 1,444 | $ 162 | $ 135,299 | $ 706,451 | $ (1,219,185) | $ (115,360) | $ (491,189) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | ||
Cash flows from operating activities: | |||
Net (loss) | $ (30,809) | $ (143) | |
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 790 | 1,013 | |
Compensation from stock options and awards | 1,039 | 452 | |
Amortization of bond discounts and deferred financing costs | 2,337 | 4,129 | |
Gain on sale and retirement of property and assets | (3,628) | (56) | |
Loss from unconsolidated joint ventures | 5,176 | 1,666 | |
Distributions of earnings from unconsolidated joint ventures | 185 | ||
Gain on extinguishment of debt | (7,646) | ||
Inventory impairment and land option write-offs | 414 | 3,184 | |
Deferred income tax provision | 20 | ||
(Increase) decrease in assets: | |||
Origination of mortgage loans | (198,878) | (229,537) | |
Sale of mortgage loans | 251,055 | 312,027 | |
Restricted cash, receivables, prepaids, deposits and other assets | 3,011 | 4,833 | |
Inventories | (31,063) | (13,526) | |
State income tax payable | (41) | 291 | |
Customers’ deposits | 617 | (1,476) | |
Accounts payable, accrued interest and other accrued liabilities | (82,544) | (49,500) | |
Net cash (used in) provided by operating activities | (82,524) | 25,916 | |
Cash flows from investing activities: | |||
Proceeds from sale of property and assets | 38,170 | 60 | |
Purchase of property, equipment and other fixed assets and acquisitions | (1,916) | (560) | |
Investments in and advances to unconsolidated joint ventures | (2,032) | [1] | (14,639) |
Distributions of capital from unconsolidated joint ventures | 6,646 | 1,939 | |
Net cash provided by (used in) investing activities | 41,051 | (15,525) | |
Cash flows from financing activities: | |||
Proceeds from mortgages and notes | 33,802 | 54,396 | |
Payments related to mortgages and notes | (46,596) | (63,307) | |
Proceeds from model sale leaseback financing programs | 746 | 747 | |
Payments related to model sale leaseback financing programs | (16,934) | (4,268) | |
Proceeds from land bank financing programs | 2,204 | 4,788 | |
Payments related to land bank financing programs | (9,449) | (27,650) | |
Payments for senior notes and senior amortizing notes | (56,002) | (33,086) | |
Net payments related to mortgage warehouse lines of credit | (51,487) | (86,058) | |
Deferred financing costs from land bank financing program and note issuances | (1,843) | (938) | |
Net cash used in financing activities | (145,559) | (155,376) | |
Net decrease in cash and cash equivalents | (187,032) | (144,985) | |
Cash and cash equivalents balance, beginning of period | 469,320 | 346,765 | |
Cash and cash equivalents balance, end of period | 282,288 | 201,780 | |
Supplemental disclosure of cash flow: | |||
Interest, net of capitalized interest (see Note 3 to the Condensed Consolidated Financial Statements) | 56,482 | 24,019 | |
Income taxes | 379 | 154 | |
Related to Mortgage Company [Member] | |||
Cash flows from investing activities: | |||
Increase (decrease) in restricted cash | 174 | (2,324) | |
Related to Letters of Credit [Member] | |||
Cash flows from investing activities: | |||
Increase (decrease) in restricted cash | $ 9 | $ (1) | |
[1] | In the first quarter of fiscal 2018, we acquired the remaining assets of one of our joint ventures, resulting in a $13.8 million reduction in our investment in the joint venture and a corresponding increase to inventory. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Investment in and advances to unconsolidated joint ventures, reduction in investment | $ 13.6 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Jan. 31, 2018 | |
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 not 10 October 31, 2017 . 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 |
Note 2 - Stock Compensation
Note 2 - Stock Compensation | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 2. Stock Compensation The Company ’s total stock-based compensation expense was $1.0 $0.5 three January 31, 2018 2017, $0.2 $0.1 three January 31, 2018 2017, |
Note 3 - Interest
Note 3 - Interest | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Home Building Interest [Text Block] | 3. Interest Interest costs incurred, expensed and capitalized were: Three Months Ended January 31, (In thousands) 2018 2017 Interest capitalized at beginning of period $ 71,051 $ 96,688 Plus interest incurred(1) 41,165 38,699 Less cost of sales interest expensed 12,292 18,322 Less other interest expensed(2)(3) 29,131 22,627 Interest capitalized at end of period(4) $ 70,793 $ 94,438 ( 1 Data does not ( 2 Other interest expensed includes interest that does not development) do not $19.6 $13.3 three January 31, 2018 2017, not $9.6 $9.3 three January 31, 2018 2017, ( 3 Cash paid f or interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Three Months Ended January 31, (In thousands) 2018 2017 Other interest expensed $ 29,131 $ 22,627 Interest paid by our mortgage and finance subsidiaries 601 629 Decrease in accrued interest 26,750 763 Cash paid for interest, net of capitalized interest $ 56,482 $ 24,019 ( 4 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 | 3 Months Ended |
Jan. 31, 2018 | |
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 first 2018, not no first 2017, 18.3% 19.8%. may During the three January 31, 2018 2017, 387 390 budgets or other market indicators of impairment. During the three January 31, 2018, we did not find any indicators of impairment and therefore did not perform any detailed impairment calculations. three January 31, 2017 six $13.8 three January 31, 2017, one $1.2 20%. three January 31, 2017, $2.7 five $12.6 The Condensed Consolidated Statement 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 $0.4 $0.5 three January 31, 2018 2017, not three January 31, 2018 2017 627 1,061, first 2018 first 2017. We decide to mothball (or stop development on) certain communities when we determine that the current performance does not further investment at the time. 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 2018, not one January 31, 2018 October 31, 2017, 21 22 $35.6 $36.7 $206.5 $214.1 From time to time we enter into option agreements that include specific performance requirements whereby we are required to purchase a minimum number of lots. Because of our obligation to purchase these lots, for accounting purposes in accordance with Accounting Standards Codification (“ASC”) 360 20 40 38, January 31, 2018 October 31, 2017, no We sell and lease back certain of our model ho mes with the right to participate in the potential profit when each home is sold to a third 360 20 40 38, January 31, 2018 October 31, 2017, $39.4 $58.5 not $35.8 $51.8 not We have land banking arrangements, whereby we sell our land parcels to the land bankers and they provide us an option to purchase back finished lots on a predetermined schedule. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC 360 20 40 38, January 31, 2018 October 31, 2017, $54.5 $66.3 not $32.2 $39.3 not |
Note 5 - Variable Interest Enti
Note 5 - Variable Interest Entities | 3 Months Ended |
Jan. 31, 2018 | |
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 th e right, but not not 810, may In compliance with ASC 810, not 810 January 31, 2018 October 31, 2017, not We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at January 31, 2018, $56.3 purchase land and lots with a total purchase price of $1.0 not |
Note 6 - Warranty Costs
Note 6 - Warranty Costs | 3 Months Ended |
Jan. 31, 2018 | |
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 insu rance 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 three January 31, 2018 2017, $1.0 $0.9 We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liabili ty insurance deductible. This accrual is expensed as selling, general and administrative costs. For homes delivered in fiscal 2018 2017, $20 2018 2017 $0.25 $5 $20 2018 $21 2017. not three January 31, 2018 2017 Three Months Ended January 31, (In thousands) 2018 2017 Balance, beginning of period $ 127,702 $ 121,144 Additions – Selling, general and administrative 2,169 2,908 Additions – Cost of sales 5,745 3,487 Charges incurred during the period (6,302 ) (9,526 ) Changes to pre-existing reserves - - Balance, end of period $ 129,314 $ 118,013 Warranty accruals are based upon historical experience. We engage a third not Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, were less than $0.1 three January 31, 2018 2017 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingent Liabilities | 3 Months Ended |
Jan. 31, 2018 | |
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 have a material adverse effect on our financial position, results of operations or cash flows, and we are subject to extensive and complex laws and regulations that affect the development of land and home building, sales and customer financing processes, including zoning, density, building standards and mortgage financing. 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 a site may may may may We anticipate that increasingly stringent requirements will be imposed on developers and homebuilders in the future. For example, for a number of years, the EPA and U.S. Army Corps of Engineers have been engaged in rulemakings to clarify the scope of federally regulated wetlands, which included a June 2015 June 2017 June 2015 February 2018 June 2015 February 2020 ( may may may In March 2013, from the Environmental Protection Agency (“EPA”) requesting information about our involvement in a housing redevelopment project in Newark, New Jersey that a Company entity undertook during the 1990s. August 2013, not may not April 2014 March 2017 The Grandview at Riverwalk Port Imperial Condominium Association, Inc. (the “ Grandview Plaintiff”) 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 Construction 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 Developments 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 classi fication issue and Consumer Fraud Act claims were unsuccessful. The trial commenced on April 17, 2017 third June 1, 2017, $3 $9 three 1 2 3 October 27, 2017, November 18, 2017, $1.8 $4.8 15, 2017, $1.4 $10.4 12, 2018. On January 24, 2018, ts of the verdict against them and a motion seeking a stay of execution of the judgement pending appeal. On February 16, 2018, $11.1 February 23, 2018, $0 $11.1 may In 2014, the Grandview II at Riverwalk Port Imperial condominium building (the “Grandview II Plaintiff”) filed a lawsuit in the Superior Court of New Jersey, Law Division, Hudson County (the “Court”) alleging various construction defects, design defects, and geotechnical issues relating to the building along with a claim for piercing the corporate veil as to certain defendants. The operative complaint (“Complaint”) brought claims against Hovnanian Enterprises, Inc. and several of its affiliates, including K. Hovnanian at Port Imperial Urban Renewal III, LLC, PI Investments I, LLC, K. Hovnanian Investments, LLC, K. Hovnanian Homes ( not $69 $79 December 7, 2017, December 14, 2017, October 31, 2017, December 15, 2017, On December 21, 2016, ’s Board were named as defendants in a derivative and class action lawsuit filed in the Delaware Court of Chancery by Plaintiff Joseph Hong (“Plaintiff Hong”). Plaintiff Hong had previously made a demand for inspection of the books and records of the Company pursuant to Delaware law. The Company had provided certain company documents in response to Plaintiff Hong’s demand. The complaint relates to the Board of Directors’ decisions to grant Ara K. Hovnanian equity awards in the form of Class B Common Stock, alleging that the defendants breached their fiduciary duties to the Company and its stockholders; that the equity awards granted in Class B Common Stock amounted to corporate waste; and that Ara. K Hovnanian was unjustly enriched by equity awards granted to him in Class B Common Stock. The complaint seeks a declaration that the equity awards granted to Ara K. Hovnanian in Class B Common Stock between June 13, 2014 June 10, 2016 On Dec ember 18, 2017, not $275,000, On January 11, 2018, Solus”) filed a complaint in the United States District Court for the Southern District of New York against GSO Capital Partners L.P., Hovnanian Enterprises, Inc. (“Hovnanian”), K. Hovnanian Enterprises, Inc. (“K. Hovnanian”), K. Hovnanian at Sunrise Trail III, LLC, Ara K. Hovnanian and J. Larry Sorsby. The complaint related to K. Hovnanian’s offer to exchange up to $185.0 8.0% 2019 13.5% 2026 5.0% 2040 8 December 28, 2017. 10 14 20 1934, January 25, 2018. January 29, 2018, Solus filed an amended complaint on February 1, 2018, 10 20 1934, no 10 14 8.0% 2019 March 2, 2018. Hovnanian believes that the claims and allegations set forth in the Solus complaint are without merit and intends to defend against them vigorously. Hovnanian is actively seeking insurance coverage for the litigation costs related to the Solus claims. |
Note 8 - Cash and Cash Equivale
Note 8 - Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's Deposits | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 8. Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's 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, January 31, 2018 October 31, 2017, $12.5 $13.3 Homebuilding - Restricted cash and cash equivalents on the Condensed Consolidated Balance Sheets totaled $3 .2 $2.1 January 31, 2018 October 31, 2017, 11. $0.5 $0.4 January 31, 2018 October 31, 2017, Financial services restricted cash and cash equivalents, which are included in Financial services other assets on the Co ndensed Consolidated Balance Sheets, totaled $15.9 $22.3 January 31, 2018 October 31, 2017, 1 $13.9 January 31, 2018 $20.0 October 31, 2017 2 $2.0 January 31, 2018 $2.3 October 31, 2017, 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 | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 9. Mortgage Loans Held for Sale 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 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 January 31, 2018 October 31, 2017, $ 64.5 $119.6 10 may not January 31, 2018 2017, 45 93 not 2017, The activity in our loan origination reserves during the three January 31, 2018 2017 follows: Three Months Ended January 31, (In thousands) 2018 2017 Loan origination reserves, beginning of period $ 3,158 $ 8,137 Provisions for losses during the period 30 34 Adjustments to pre-existing provisions for losses from changes in estimates 0 (3,094 ) Loan origination reserves, end of period $ 3,188 $ 5,077 |
Note 10 - Mortgages
Note 10 - Mortgages | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Line of Credit [Text Block] | 10. Mortgages We have nonrecourse mortgage loans for certain communities totaling $64 .5 January 31, 2018 October 31, 2017, $172.7 $157.8 5.3% January 31, 2018 October 31, 2017 $13.0 October 31, 2017. November 1, 2017, . 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. K. Hovnanian Mortgage finances the origination of mortgage loans through various master repurchase agreements, which are recorded in financial services liabilities on the Condensed Consolidated Balance Sheets. Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”), which was amended on January 31, 2018 January 31, 2019, $50.0 1.58% January 31, 2018, 2.5% 2.63% January 31, 2018 October 31, 2017, $21.3 $41.5 K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Customers Bank (“Customers Master Repurchase Agreement”), which was amended on February 16, 2018. $50.0 February 15, 2019. 2.375% 5.125% January 31, 2018 October 31, 2017, $29.6 $40.7 K. Hovnanian Mortgage also has a secured Master Repurchase Agreement with Comerica Bank (“ Comerica Master Repurchase Agreement”), which was amended on December 22, 2017, $50.0 December 20, 2018. 0.25%, 2.375%. January 31, 2018 October 31, 2017, $12.1 $32.4 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 January 31, 2018, |
Note 11 - Senior Notes and Cred
Note 11 - Senior Notes and Credit Facilities | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 11. Senior Notes and Credit Facilities Senior notes and credit facilities balances as of January 31, 2018 October 31, 2017, (In thousands) January 31, 2018(1)(2) October 31, 2017(1)(2) Senior Secured Term Loan due 2019, net of debt issuance costs $ 73,275 $ 72,987 Senior Secured Notes: 9.5% Senior Secured Notes due November 15, 2020 $ 74,403 $ 74,350 2.0% Senior Secured Notes due November 1, 2021 (net of discount) 53,067 53,058 5.0% Senior Secured Notes due November 1, 2021 (net of discount) 134,185 133,732 10.0% Senior Secured Notes due July 15, 2022 434,620 434,543 10.5% Senior Secured Notes due July 15, 2024 394,111 394,953 Total Senior Secured Notes, net of debt issuance costs $ 1,090,386 $ 1,090,636 Senior Notes: 7.0% Senior Notes due January 15, 2019 $ 132,074 $ 131,957 8.0% Senior Notes due November 1, 2019 234,501 234,293 Total Senior Notes, net of debt issuance costs $ 366,575 $ 366,250 11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs $ - $ 2,045 Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs $ - $ 53,919 Unsecured Revolving Credit Facility $ 52,000 $ 52,000 ( 1 Notes payable and term loan” on our Condensed Consolidated Balance Sheets as of January 31, 2018 October 31, 2017 $15.1 $41.8 ( 2 January 31, 2018 October 31, 2017 $16.1 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 th e Existing Term Loan Facility (as defined below), the Unsecured Revolving Credit Facility (as defined below) and senior secured notes and senior notes outstanding at January 31, 2018 ( 5.0% 2021 “5.0% 2021 2.0% 2021 “2.0% 2021 5.0% 2021 “2021 9.5% 2020 2021 not The credit agreement governing the Existing Term Loan Facility, the Unsecured Revolving Credit Facility and the indentures governing the notes outstanding at January 31, 2018 not 9.5% 2020 may not January 15, 2021 ( no February 15, 2021 ( 10.0% 2022 “10.0% 2022 7.0% 2019 “7.0% 8.0% 2019 “8.0% 7.0% “2019 may not July 16, 2024 (such restrictive covenant in respect of the 10.5% Senior Secured Notes due 2024 (the “10.5% 2024 Notes”) was eliminated pursuant to the Supplemental Indenture (as defined below) to the indenture governing the 10.0% 2022 Notes and 10.5% 2024 Notes as described below under “—Fiscal 2018”)), 2019 10.0% 2022 not January 31, 2018, If our consolidated fixed charge coverage ratio, as defined in the agreements governing our debt instruments , is less than 2.0 1.0, not 7.625% not Under the term s 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 li mited in the amount of debt we can incur that does not Fiscal 2018 On December 1, 2017, our 6.0% Senior Exchangeable Note Units were paid in full, which units consisted of $53.9 $2.1 11.0% mortizing Notes. On December 28, 2017 , one the 8.0% Pursuant to the Commitment Letter, the GSO Entities agreed to, among other things, provide the principal amount of the following: (i) a senior unsecured term loan credit facility (the “New Term Loan Credit Facility”) to be borrowed by K. Hovnanian and guaranteed by the Company and the Notes Guarantors, pursuant to which the GSO Entities committed to lend K. Hovnanian $132.5 7.0% $80.0 8.0% first $125.0 first January 15, 2019 ( five $25.0 10.5% 2024 10.5% 2024 $1,000 10.5% 2024 30 one January 15, 2019) 10.5% 2024 0.50%, On January 29, 2018, arantors, Wilmington Trust, National Association, as administrative agent (the “New Term Loan Administrative Agent”), and the GSO Entities entered into the New Term Loan Credit Facility. As discussed in Note 21, February 1, 2018 February 1, 2018 $132.5 7.0% 5.0% February 1, 2027, ninth first The New Term Loan Credit Facility contains representations and warranties, with the accuracy of certain specified representations and warranties being a condition to the funding of the New Term Loans on each date of funding, and affirmative and restrictive covenants that limit, among other things, and in each case subject to certain exceptions, the ability of the Company and certain of its subsidiaries, including K. Hovnanian, to incur additional indebtedness, pay dividends and make distributions on common and preferred stock, repurchase subordinated indebtedness and common and preferred stock, make other restricted payments, including investments, sell certain assets, incur liens, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets and enter into certain transactions with affiliates. The New Term Loan Credit Facility also contains customary events of default which would permit the New Term Loan Administrative Agent thereunder to declare New Term Loans made thereunder to be immediately due and payable if not On January 29, 2018, (the “Secured Administrative Agent”), and the GSO Entities entered into the New Secured Credit Facility. Availability under the New Secured Credit Facility will terminate on December 28, 2019 December 28, 2022. first 10.0% 2022 10.5% 2024 The Secured Loans will bear interest at a rate per annum equal to the lesser of (a) 10.0% 30 first 10.5% 2024 not 10.5% 2024 0.50%, not three 10.5% 2024 three The New Secured Credit Facility contains representations and warranties, with the accuracy of certain specified representations and warranties being a condition to the funding of the New Secured Loans on each date of funding, and affirmative and restrictive covenants that limit, among other things, and in each case subject to certain exceptions, the ability of the Company and certain of its subsidiaries, including K. Hovnanian, to incur additional indebtedness, pay dividends and make distributions on common and preferred stock, repurchase subordinated indebtedness and common and preferred stock, make other restricted payments, including investments, sell certain assets, incur liens, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets and enter into certain transactions with affiliates. The New Secured Credit Facility also contains customary events of default which would permit the Secured Administrative Agent thereunder to exercise remedies with respect to the collateral securing the New Secured Loans and declare New Secured Loans to be immediately due and payable if not The terms and covenants of the New Secured Credit Facility are effective as of January 29, 2018, As discussed in Note 21 , on February 1, 2018, $90.6 13.5% 2026 2026 $90.1 5.0% 2040 2040 2026 21 2026 2040. 21, February 1, 2018, $26.5 $26.0 8.0% 8.0% On January 16, 2018, Notes Guarantors and Wilmington Trust, National Association, as trustee and collateral agent, executed the Second Supplemental Indenture, dated as of January 16, 2018 ( 10.0% 2022 10.5% 2024 July 27, 2017 ( 10.5% 2024 10.5% 2024 2019 Secured Obligations Our $75 .0 August 1, 2019 7.0% 6.0%, September 8, 2018, may February 1, 2019 1.0% February 1, 2019 The 10.0% 2022 July 15, 2022 10.0% January 15 July 15 s of record at the close of business on 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 35.0% 10.0% 2022 July 15, 2019 110.0% The 10.5% 2024 have a maturity of July 15, 2024 10.5% January 15 July 15 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 Existing Term Loan Facility are guaranteed by the Notes Guarantors. The Existing 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 January 31, 2018, $454.8 not nts, home deliveries or impairments thereafter and which may $198.1 January 31, 2018, $1.7 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 Our 9.5% 9.5% 2020 November 15, 2020, 9.5% February 15 August 15 February 1 August 1, may 9.5% 2020 November 15, 2018 100% November 15, 2018, may 9.5% 2020 100% may 35% 9.5% 2020 November 15, 2018 109.5% The 5.0% 2021 2.0% 2021 ther than with respect to interest rate and related redemption provisions, and vote together as a single class. 5.0% 2021 5.0% November 1, 2021 2.0% 2021 2.0% November 1, 2021. 2021 May 1 November 1 April 15 October 15, may The 2021 100.0% 1% The 9.5% 2020 2021 2021 9.50% 2020 r exceptions, by a first January 31, 2018, 1 $82.8 $1.0 2 $140.3 not may 3 $65.4 January 31, 2018; not not 2021 not Senior Notes As discussed in Note 21, February 1, 2018, $132.5 7.0% K. Hovnanian ’s 8.0% August 1, 2019 100.0% August 1, 2019, may 100.0% 21, February 1, 2018, accepted all of the $170.2 8% not 72.14% 8% $26.5 8.0% Unsecured Revolving Credit Facility In June 2013, K. Hovnanian”), as borrower, and we and certain of our subsidiaries, as guarantors, entered into a five $75.0 two first January 31, 2018 $52.0 $11.9 October 31, 2017, $52.0 $14.6 January 31, 2018, In addition to the Unsecured Revolving Credit Facility, we have certain stand –alone cash collateralized letter of credit agreements and facilities under which there was a total of $2.7 $1.7 January 31, 2018 October 31, 2017, respectively. January 31, 2018 October 31, 2017, $2.7 $1.7 |
Note 12 - Per Share Calculation
Note 12 - Per Share Calculations | 3 Months Ended |
Jan. 31, 2018 | |
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, and, for the first 2017, 6.0% 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 There were 3. 4 million and 4.2 three January 31, 2018 and January 31, 2017, respectively, which were Also, for the three January 31, 2018 2017, 3.3 10.0 2012 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 3.2 4.8 ion for the three January 31, 2018 2017, |
Note 13 - Preferred Stock
Note 13 - Preferred Stock | 3 Months Ended |
Jan. 31, 2018 | |
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 January 31, 2018 2017, not not |
Note 14 - Common Stock
Note 14 - Common Stock | 3 Months Ended |
Jan. 31, 2018 | |
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% one one On August 4, 2008, 11, 2018, 382 382. 382 5% 50 382. one August 15, 2008. August 15, 2008, 4.9% 4, 2008, 4.9% may August 14, 2021 14, 2019 not December 5, 2008. December 5, 2008, 382 5% 5% 5% 5% 5% On July 3, 2001, 4 There were no three January 31, 2018 . As of January 31, 2018, may 0.5 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The total income tax expense of $0.3 three January 31, 2018 not $0.5 three January 31, 2017 Our federal net operating losses of $1.6 2028 2037. $2.6 2018 2037. $247.1 2018 2022; $463.1 2023 2027; $1.5 2028 2032; $350.0 2033 2037. On December 22, 2017, of the United States signed into law the Tax Cuts and Jobs Act of 2017 January 1, 2018, 35% 21%. one Consequently, we have recorded a decrease related to deferred tax assets and liabilities of $298.5 $12.2 January 31, 2018, therefore no may may Deferred federal and state income tax assets (“ DTAs”) primarily represent the deferred tax benefits arising from NOL carryforwards and temporary differences between book and tax income which will be recognized in future years as an offset against 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 of January 31, 2018 , 740 . not not $661.1 January 31, 2018, 1. Fiscal 2017 $50.2 third 2017 $42.3 three July 31, 2017. W three January 31, 2018. 740, one 2. In the third 2017, 3. The refinancing discussed in item 2 2018 and future years (based on our longer term modeling) by $23.4 4. Recent financial results of $30.5 first 2018. 5. We incurred pre-tax losses during the housing market decline and the slower than expected housing market recovery. (Negative Objective Evidence) 6. We exited two 2016, one 2017, perations in one 7. Evidence of a sustained recovery in the housing markets in which we operate, supported by economic data showing housing starts, homebuilding volume and prices all increasing and forecasted to continue to increase. (Positive Subjective Evidence) 8. The historical cyclicality of the U.S. housing market, a more restrictive mortgage lending environment compared to before the 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 | 3 Months Ended |
Jan. 31, 2018 | |
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 geogr aphic proximity, similar regulatory environments, land acquisition characteristics and similar methods used to construct and sell homes. Our reportable segments consist of the following six 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 operat ions at our headquarters in 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 January 31, (In thousands) 2018 2017 Revenues: Northeast $ 20,199 $ 58,575 Mid-Atlantic 71,297 100,226 Midwest 40,579 43,702 Southeast 56,668 56,584 Southwest 128,305 183,409 West 85,050 96,531 Total homebuilding 402,098 539,027 Financial services 10,888 12,849 Corporate and unallocated (1) 4,180 133 Total revenues $ 417,166 $ 552,009 (Loss) i ncome before income taxes: Northeast $ (9,701 ) $ 906 Mid-Atlantic 1,952 3,882 Midwest (2,344 ) 712 Southeast (1,661 ) (294 ) Southwest 5,511 11,923 West 8,067 (754 ) Homebuilding income before income taxes 1,824 16,375 Financial services 2,547 5,994 Corporate and unallocated (1) (34,842 ) (22,046 ) (Loss) i ncome before income taxes $ (30,471 ) $ 323 ( 1 three January 31, 2018 $19.1 $19.6 3.9 three January 31, 2017 $15.7 $13.3 7.6 $0.6 (In thousands) January 31, 2018 October 31, 2017 Assets: Northeast $ 168,967 $ 180,545 Mid-Atlantic 222,284 224,398 Midwest 86,909 84,960 Southeast 234,358 231,644 Southwest 325,296 294,337 West 171,372 175,347 Total homebuilding 1,209,186 1,191,231 Financial services 101,925 162,113 Corporate and unallocated 334,826 547,554 Total assets $ 1,645,937 $ 1,900,898 |
Note 17 - Investments in Uncons
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures | 3 Months Ended |
Jan. 31, 2018 | |
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 third During the first 2017, one three in the receipt of $1 1.2 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) January 31, 2018 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 36,994 $ 823 $ 37,817 Inventories 652,030 8,370 660,400 Other assets 34,438 - 34,438 Total assets $ 723,462 $ 9,193 $ 732,655 Liabilities and equity: Accounts payable and accrued liabilities $ 106,971 $ 298 $ 107,269 Notes payable 364,886 - 364,886 Total liabilities 471,857 298 472,155 Equity of: Hovnanian Enterprises, Inc. 78,613 3,805 82,418 Others 172,992 5,090 178,082 Total equity 251,605 8,895 260,500 Total liabilities and equity $ 723,462 $ 9,193 $ 732,655 Debt to capitalization ratio 59 % 0 % 58 % (Dollars in thousands) October 31, 2017 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 60,580 $ 194 $ 60,774 Inventories 666,017 9,162 675,179 Other assets 36,026 - 36,026 Total assets $ 762,623 $ 9,356 $ 771,979 Liabilities and equity: Accounts payable and accrued liabilities $ 121,646 $ 429 $ 122,075 Notes payable 330,642 - 330,642 Total liabilities 452,288 429 452,717 Equity of: Hovnanian Enterprises, Inc. 88,884 3,746 92,630 Others 221,451 5,181 226,632 Total equity 310,335 8,927 319,262 Total liabilities and equity $ 762,623 $ 9,356 $ 771,979 Debt to capitalization ratio 52 % 0 % 51 % As of January 31, 2018 October 31, 2017, $23.1 $22.4 Accounts payable and accrued liabilities” balances in the tables above. On our Condensed Consolidated Balance Sheets, our “Investments in and advances to unconsolidated joint ventures” amounted to $92.3 $115.1 January 31, 2018 October 31, 2017, In some cases our net investment in these joint ventures is less than our proportionate share of the equity reflected in the table above because of the differences between asset impairments recorded against our joint venture investments and any impairments recorded in the applicable joint venture. Impairments of joint venture investments are recorded at fair value while impairments recorded in the joint venture are recorded when undiscounted cash flows trigger the impairment. During the three January 31, 2018, not one $0.7 For the Three Months Ended January 31, 2018 (In thousands) Homebuilding Land Development Total Revenues $ 58,565 $ 1,275 $ 59,840 Cost of sales and expenses (72,136 ) (1,158 ) (73,294 ) Joint venture net (loss) income $ (13,571 ) $ 117 $ (13,454 ) Our share of net (loss) income $ (5,199 ) $ 59 $ (5,140 ) For the Three Months Ended January 31, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 64,937 $ 1,202 $ 66,139 Cost of sales and expenses (67,226 ) (982 ) (68,208 ) Joint venture net (loss) income $ (2,289 ) $ 220 $ (2,069 ) Our share of net (loss) income $ (1,681 ) $ 110 $ (1,571 ) “ (Loss) income 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 $1.9 $2.2 three January 31, 2018 2017, In determining whether or not e the presumption of control by us as the manager of the joint venture. 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. For some of our joint ventures, obtaining financing was challenging, therefore, some of our joint ventures are capitalized only with equity. The total debt to capitalization ratio of all our joint ventures is currently 58%. 810 10 not not |
Note 18 - Recent Accounting Pro
Note 18 - Recent Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 18. Recent Accounting Pronounceme nts In May 2014, No. 2014 09, 606 2014 09” 2014 - 09 1 2 3 4 5 2014 - 09 605, August 2015, 2015 - 14 one 2014 - 09, November 1, 2018. December 15, 2016. 2014 - 09 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 November 1, 2018. In October 2016, No. 2016 - 16, 740 2016 - 16” 2016 - 16 2016 - 16 November 1, 2018. In October 2016, No. 2016 - 17, 810 2016 - 17” 2016 - 17 2016 - 17 November 1, 2017 not In November 2016, No. 2016 - 18, 230 2016 - 18” 2016 - 18 2016 - 18 November 1, 2018. |
Note 19 - Fair Value of Financi
Note 19 - Fair Value of Financial Instruments | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 19. Fair Value of Financial Instruments ASC 820, d as follows: 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 January 31, 2018 Fair Value at October 31, 2017 Mortgage loans held for sale (1) Level 2 $ 80,228 $ 132,424 Interest rate lock commitments Level 2 (248 ) (14 ) Forward contracts Level 2 268 15 Total $ 80,248 $ 132,425 ( 1 The aggregate unpaid principal balance was $78.0 $128.4 January 31, 2018 October 31, 2017, We elected the fair value option for our loans held for sale for mortgage loans originat ed subsequent to October 31, 2008, 825, The Financial Services segment had a pipeline of loan applications in process of $537.7 January 31, 2018. $56.2 January 31, 2018. 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 January 31, 2018, $19.5 February 21, 2018. 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 January 31, 2018 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Fair value included in net loss all reflected in financial services revenues $ 2,434 $ (248 ) $ 268 Three Months Ended January 31, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Fair value included in net loss all reflected in financial services revenues $ (3,024 ) $ 70 $ 31 The Company did not three January 31, 2018. mpany'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 January 31, 2017. Nonfinancial Assets Three Months Ended January 31, 2017 (In thousands) Fair Value Hierarchy Pre- Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 6,302 $ (2,587 ) $ 3,715 Land and land options held for future development or sale Level 3 $ 6,326 $ (81 ) $ 6,245 We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they may may not three January 31, 2018. $2.7 three January 31, 2017. 4 The fair value of our cash equivalents, restricted cash and cash equivalents and customers' deposits 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 the senior unsecured notes (other than the senior exchangeable notes and the senior amortizing notes outstanding at October 31, 2017) 2 31, 2017 $396.6 $383.7 January 31, 2018 October 31, 2017, The fair value of each of the senior secured notes (all series in the aggregate), the senior amortizing notes and the senior exchangeable notes outstanding at October 31, 2017 third 3 $1.2 January 31, 2018. October 31, 2017, $1.2 $2.1 $54.2 |
Note 20 - Transactions With Rel
Note 20 - Transactions With Related Parties | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 20. Transactions with Related Parties During the three January 31, 201 8 2017, $0.1 $0.2 |
Note 21 - Subsequent Events
Note 21 - Subsequent Events | 3 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 21. Subsequent events On February 1, 2018, certain of the previously announced financing transactions (see Note 11 $132.5 $132.5 7.0% 7.0% $170.2 8.0% not $90.6 2026 $90.1 2040 $26.5 8.0% K. Hovnanian issued the New 2026 2040 New Indenture”) dated as of February 1, 2018 The New Notes are issued by K. Hovnanian and guaranteed by the Notes Guarantors, except the Subsidiary Purchaser, which does not 2026 13.5% ature on February 1, 2026. 2040 5.0% February 1, 2040. February 1 August 1 August 1, 2018, January 15 July 15, may The New Indenture contains restrictive covenants that limit, among other things, and in each case subject to certain exceptions, the ability of the Company and certain of its subsidiaries, including K. Hovnanian, to incur additional indebtedness, pay dividends and make distributions on common and preferred stock, repurchase subordinated indebtedness and common and preferred stock, make other restricted payments, including investments, sell certain assets, incur liens, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets and enter into certain transactions with affiliates. The New Indenture also contains customary events of default which would permit the holders of the applicable series of New Notes to declare those New Notes to be immediately due and payable if not The New Indenture also contains limitations on actions with respect to the Purchased 8.0% not, June 6, 2018, 8.0% 8.0% not, not 8.0% not 8% 8% June 6, 2018 8% |
Note 3 - Interest (Tables)
Note 3 - Interest (Tables) | 3 Months Ended |
Jan. 31, 2018 | |
Notes Tables | |
Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block] | Three Months Ended January 31, (In thousands) 2018 2017 Interest capitalized at beginning of period $ 71,051 $ 96,688 Plus interest incurred(1) 41,165 38,699 Less cost of sales interest expensed 12,292 18,322 Less other interest expensed(2)(3) 29,131 22,627 Interest capitalized at end of period(4) $ 70,793 $ 94,438 |
Cash Paid for Interest Net of Capitalized Interest [Table Text Block] | Three Months Ended January 31, (In thousands) 2018 2017 Other interest expensed $ 29,131 $ 22,627 Interest paid by our mortgage and finance subsidiaries 601 629 Decrease in accrued interest 26,750 763 Cash paid for interest, net of capitalized interest $ 56,482 $ 24,019 |
Note 6 - Warranty Costs (Tables
Note 6 - Warranty Costs (Tables) | 3 Months Ended |
Jan. 31, 2018 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended January 31, (In thousands) 2018 2017 Balance, beginning of period $ 127,702 $ 121,144 Additions – Selling, general and administrative 2,169 2,908 Additions – Cost of sales 5,745 3,487 Charges incurred during the period (6,302 ) (9,526 ) Changes to pre-existing reserves - - Balance, end of period $ 129,314 $ 118,013 |
Note 9 - Mortgage Loans Held 31
Note 9 - Mortgage Loans Held for Sale (Tables) | 3 Months Ended |
Jan. 31, 2018 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Three Months Ended January 31, (In thousands) 2018 2017 Loan origination reserves, beginning of period $ 3,158 $ 8,137 Provisions for losses during the period 30 34 Adjustments to pre-existing provisions for losses from changes in estimates 0 (3,094 ) Loan origination reserves, end of period $ 3,188 $ 5,077 |
Note 11 - Senior Notes and Cr32
Note 11 - Senior Notes and Credit Facilities (Tables) | 3 Months Ended |
Jan. 31, 2018 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | (In thousands) January 31, 2018(1)(2) October 31, 2017(1)(2) Senior Secured Term Loan due 2019, net of debt issuance costs $ 73,275 $ 72,987 Senior Secured Notes: 9.5% Senior Secured Notes due November 15, 2020 $ 74,403 $ 74,350 2.0% Senior Secured Notes due November 1, 2021 (net of discount) 53,067 53,058 5.0% Senior Secured Notes due November 1, 2021 (net of discount) 134,185 133,732 10.0% Senior Secured Notes due July 15, 2022 434,620 434,543 10.5% Senior Secured Notes due July 15, 2024 394,111 394,953 Total Senior Secured Notes, net of debt issuance costs $ 1,090,386 $ 1,090,636 Senior Notes: 7.0% Senior Notes due January 15, 2019 $ 132,074 $ 131,957 8.0% Senior Notes due November 1, 2019 234,501 234,293 Total Senior Notes, net of debt issuance costs $ 366,575 $ 366,250 11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs $ - $ 2,045 Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs $ - $ 53,919 Unsecured Revolving Credit Facility $ 52,000 $ 52,000 |
Note 16 - Operating and Repor33
Note 16 - Operating and Reporting Segments (Tables) | 3 Months Ended |
Jan. 31, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (In thousands) January 31, 2018 October 31, 2017 Assets: Northeast $ 168,967 $ 180,545 Mid-Atlantic 222,284 224,398 Midwest 86,909 84,960 Southeast 234,358 231,644 Southwest 325,296 294,337 West 171,372 175,347 Total homebuilding 1,209,186 1,191,231 Financial services 101,925 162,113 Corporate and unallocated 334,826 547,554 Total assets $ 1,645,937 $ 1,900,898 |
Operating Segments [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended January 31, (In thousands) 2018 2017 Revenues: Northeast $ 20,199 $ 58,575 Mid-Atlantic 71,297 100,226 Midwest 40,579 43,702 Southeast 56,668 56,584 Southwest 128,305 183,409 West 85,050 96,531 Total homebuilding 402,098 539,027 Financial services 10,888 12,849 Corporate and unallocated (1) 4,180 133 Total revenues $ 417,166 $ 552,009 (Loss) i ncome before income taxes: Northeast $ (9,701 ) $ 906 Mid-Atlantic 1,952 3,882 Midwest (2,344 ) 712 Southeast (1,661 ) (294 ) Southwest 5,511 11,923 West 8,067 (754 ) Homebuilding income before income taxes 1,824 16,375 Financial services 2,547 5,994 Corporate and unallocated (1) (34,842 ) (22,046 ) (Loss) i ncome before income taxes $ (30,471 ) $ 323 |
Note 17 - Investments in Unco34
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables) | 3 Months Ended |
Jan. 31, 2018 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | (Dollars in thousands) January 31, 2018 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 36,994 $ 823 $ 37,817 Inventories 652,030 8,370 660,400 Other assets 34,438 - 34,438 Total assets $ 723,462 $ 9,193 $ 732,655 Liabilities and equity: Accounts payable and accrued liabilities $ 106,971 $ 298 $ 107,269 Notes payable 364,886 - 364,886 Total liabilities 471,857 298 472,155 Equity of: Hovnanian Enterprises, Inc. 78,613 3,805 82,418 Others 172,992 5,090 178,082 Total equity 251,605 8,895 260,500 Total liabilities and equity $ 723,462 $ 9,193 $ 732,655 Debt to capitalization ratio 59 % 0 % 58 % (Dollars in thousands) October 31, 2017 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 60,580 $ 194 $ 60,774 Inventories 666,017 9,162 675,179 Other assets 36,026 - 36,026 Total assets $ 762,623 $ 9,356 $ 771,979 Liabilities and equity: Accounts payable and accrued liabilities $ 121,646 $ 429 $ 122,075 Notes payable 330,642 - 330,642 Total liabilities 452,288 429 452,717 Equity of: Hovnanian Enterprises, Inc. 88,884 3,746 92,630 Others 221,451 5,181 226,632 Total equity 310,335 8,927 319,262 Total liabilities and equity $ 762,623 $ 9,356 $ 771,979 Debt to capitalization ratio 52 % 0 % 51 % For the Three Months Ended January 31, 2018 (In thousands) Homebuilding Land Development Total Revenues $ 58,565 $ 1,275 $ 59,840 Cost of sales and expenses (72,136 ) (1,158 ) (73,294 ) Joint venture net (loss) income $ (13,571 ) $ 117 $ (13,454 ) Our share of net (loss) income $ (5,199 ) $ 59 $ (5,140 ) For the Three Months Ended January 31, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 64,937 $ 1,202 $ 66,139 Cost of sales and expenses (67,226 ) (982 ) (68,208 ) Joint venture net (loss) income $ (2,289 ) $ 220 $ (2,069 ) Our share of net (loss) income $ (1,681 ) $ 110 $ (1,571 ) |
Note 19 - Fair Value of Finan35
Note 19 - Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Jan. 31, 2018 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | (In thousands) Fair Value Hierarchy Fair Value at January 31, 2018 Fair Value at October 31, 2017 Mortgage loans held for sale (1) Level 2 $ 80,228 $ 132,424 Interest rate lock commitments Level 2 (248 ) (14 ) Forward contracts Level 2 268 15 Total $ 80,248 $ 132,425 |
Fair Value, Option, Quantitative Disclosures [Table Text Block] | Three Months Ended January 31, 2018 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Fair value included in net loss all reflected in financial services revenues $ 2,434 $ (248 ) $ 268 Three Months Ended January 31, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Fair value included in net loss all reflected in financial services revenues $ (3,024 ) $ 70 $ 31 |
Fair Value Measurements, Nonrecurring [Table Text Block] | Three Months Ended January 31, 2017 (In thousands) Fair Value Hierarchy Pre- Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 6,302 $ (2,587 ) $ 3,715 Land and land options held for future development or sale Level 3 $ 6,326 $ (81 ) $ 6,245 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) | 3 Months Ended |
Jan. 31, 2018 | |
Homebuilding [Member] | |
Number of Reportable Segments | 6 |
Note 2 - Stock Compensation (De
Note 2 - Stock Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Allocated Share-based Compensation Expense, Net of Tax | $ 1 | $ 0.5 |
Employee Stock Option [Member] | ||
Allocated Share-based Compensation Expense, Net of Tax | $ 0.2 | $ 0.1 |
Note 3 - Interest (Details Text
Note 3 - Interest (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 29,131 | $ 22,627 |
Qualifying Assets Not Exceeding Debt [Member] | |||
Real Estate Inventory Expense Not Eligible for Capitalization | 19,600 | 13,300 | |
Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member] | |||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 9,600 | $ 9,300 | |
[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: Other interest expensed of $29,131 plus interest paid by our mortgage and finance subsidiaries $601 Plus the decrease in accrued interest of 26,750 for 2018 and other interest expensed of $22,627 plus interest paid by our mortgage and finance subsidiaries $629 Plus the decrease in accrued interest of $763 for 2017. | ||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $19.6 million and $13.3 million for the three months ended January 31, 2018 and 2017, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $9.6 million and $9.3 million for the three months ended January 31, 2018 and 2017, respectively. |
Note 3 - Interest - Interest Co
Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | ||
Interest capitalized at beginning of period | $ 71,051 | $ 96,688 | |
Plus interest incurred(1) | [1] | 41,165 | 38,699 |
Less cost of sales interest expensed | 12,292 | 18,322 | |
Less other interest expensed(2)(3) | [2],[3] | 29,131 | 22,627 |
Interest capitalized at end of period(4) | [4] | $ 70,793 | $ 94,438 |
[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: Other interest expensed of $29,131 plus interest paid by our mortgage and finance subsidiaries $601 Plus the decrease in accrued interest of 26,750 for 2018 and other interest expensed of $22,627 plus interest paid by our mortgage and finance subsidiaries $629 Plus the decrease in accrued interest of $763 for 2017. | ||
[3] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $19.6 million and $13.3 million for the three months ended January 31, 2018 and 2017, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $9.6 million and $9.3 million for the three months ended January 31, 2018 and 2017, respectively. | ||
[4] | Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Note 3 - Interest - Cash Paid f
Note 3 - Interest - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | ||
Less other interest expensed(2)(3) | [1],[2] | $ 29,131 | $ 22,627 |
Interest paid by our mortgage and finance subsidiaries | 601 | 629 | |
Decrease in accrued interest | 26,750 | 763 | |
Cash paid for interest, net of capitalized interest | $ 56,482 | $ 24,019 | |
[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: Other interest expensed of $29,131 plus interest paid by our mortgage and finance subsidiaries $601 Plus the decrease in accrued interest of 26,750 for 2018 and other interest expensed of $22,627 plus interest paid by our mortgage and finance subsidiaries $629 Plus the decrease in accrued interest of $763 for 2017. | ||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $19.6 million and $13.3 million for the three months ended January 31, 2018 and 2017, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $9.6 million and $9.3 million for the three months ended January 31, 2018 and 2017, respectively. |
Note 4 - Reduction of Invento41
Note 4 - Reduction of Inventory to Fair Value (Details Textual) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Oct. 31, 2017USD ($) | |
Number of Communities Evaluated for Impairment | 387 | 390 | |
Number of Communities Performed Detailed Impairment Calculations | 6 | ||
Carrying Value of Communities Tested for Impairment | $ 13,800 | ||
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount By Less Than 20 Percent | 1 | ||
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount by Less than 20 Percent | $ 1,200 | ||
Percentage Undiscounted Cash Flow Exceeds Carrying Amount | 20.00% | ||
Impairment of Real Estate | $ 0 | $ 2,700 | |
Homebuilding [Member] | |||
Impairment of Real Estate | $ 2,700 | ||
Number of Communities Impaired | 5 | ||
PreImpairment Value | $ 12,600 | ||
Land Option Write Offs | $ 400 | $ 500 | |
Number of Walk Away Lots | 627 | 1,061 | |
Number of Previously Mothballed Communities Sold During the Period | 0 | ||
Number of Communities Mothballed During the Period | 0 | ||
Number of Mothballed Communities Reactivated | 1 | ||
Number of Communities Mothballed | 21 | 22 | |
Inventory Real Estate Mothballed Communities | $ 35,600 | $ 36,700 | |
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges | 206,500 | 214,100 | |
Liabilities from Inventory Real Estate Not Owned | 68,040 | 91,101 | |
Homebuilding [Member] | Model Sale Leaseback Financing Arrangements [Member] | |||
Inventory Real Estate, Other Options | 39,400 | 58,500 | |
Liabilities from Inventory Real Estate Not Owned | 35,800 | 51,800 | |
Homebuilding [Member] | Land Banking Arrangement [Member] | |||
Inventory Real Estate, Other Options | 54,500 | 66,300 | |
Liabilities from Inventory Real Estate Not Owned | $ 32,200 | $ 39,300 | |
Homebuilding [Member] | Real Estate Inventory [Member] | |||
Fair Value Inputs, Discount Rate | 0.00% | ||
Homebuilding [Member] | Real Estate Inventory [Member] | Minimum [Member] | |||
Fair Value Inputs, Discount Rate | 18.30% | ||
Homebuilding [Member] | Real Estate Inventory [Member] | Maximum [Member] | |||
Fair Value Inputs, Discount Rate | 19.80% |
Note 5 - Variable Interest En42
Note 5 - Variable Interest Entities (Details Textual) $ in Millions | Jan. 31, 2018USD ($) |
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 56.3 |
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 1,000 |
Note 6 - Warranty Costs (Detail
Note 6 - Warranty Costs (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Oct. 31, 2017 | |
Cash Received from Subcontractors for Owner Controlled Insurance Program | $ 1,000 | $ 900 | |
General Liability Insurance Deductible | 20,000 | $ 20,000 | |
Bodily Injury Insurance Deductible | 250 | 250 | |
Bodily Injury Insurance Limit | 5,000 | 5,000 | |
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims | 20,000 | $ 21,000 | |
Payments by Insurance Companies for Claims | $ 100 | $ 100 |
Note 6 - Warranty Costs - Warra
Note 6 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Balance, beginning of period | $ 127,702 | $ 121,144 |
Charges incurred during the period | (6,302) | (9,526) |
Changes to pre-existing reserves | ||
Balance, end of period | 129,314 | 118,013 |
Selling, General and Administrative Expenses [Member] | ||
Additions | 2,169 | 2,908 |
Cost of Sales [Member] | ||
Additions | $ 5,745 | $ 3,487 |
Note 7 - Commitments and Cont45
Note 7 - Commitments and Contingent Liabilities (Details Textual) - USD ($) | Jan. 12, 2018 | Dec. 18, 2017 | Dec. 15, 2017 | Nov. 18, 2017 | Jun. 01, 2017 | Jan. 31, 2018 | Feb. 23, 2018 | Feb. 01, 2018 | Jan. 11, 2018 |
8.0% Senior Notes due 2019, 13.5% Senior Notes due 2026 and 5.0% Senior Notes due 2040 [Member] | |||||||||
Debt Instrument, Face Amount | $ 185,000,000 | ||||||||
8.0% Senior Notes Due 2019 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||
Thirteen and a Half Percent Senior Notes Due 2026 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||||||
Five Percent Senior Notes due 2040 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||
Subsequent Event [Member] | 8.0% Senior Notes Due 2019 [Member] | |||||||||
Debt Instrument, Face Amount | $ 170,200,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||
Subsequent Event [Member] | Thirteen and a Half Percent Senior Notes Due 2026 [Member] | |||||||||
Debt Instrument, Face Amount | $ 90,600,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||||||
Subsequent Event [Member] | Five Percent Senior Notes due 2040 [Member] | |||||||||
Debt Instrument, Face Amount | $ 90,100,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||
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 | ||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 10,400,000 | ||||||||
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 | 11,100,000 | ||||||||
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Subsequent Event [Member] | |||||||||
Loss Contingency, Supersedeas Bond | $ 11,100,000 | ||||||||
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 | ||||||||
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Attorney Fees and Costs [Member] | |||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 1,400,000 | $ 1,800,000 | |||||||
Litigation Settlement, Amount Sought from Other Party | $ 4,800,000 | ||||||||
Construction and Design Defects Lawsuit from Second Condominium Association [Member] | Minimum [Member] | |||||||||
Loss Contingency, Damages Sought, Value | 69,000,000 | ||||||||
Construction and Design Defects Lawsuit from Second Condominium Association [Member] | Maximum [Member] | |||||||||
Loss Contingency, Damages Sought, Value | $ 79,000,000 | ||||||||
Class Action Lawsuit Filed by Plaintiff Joseph Hong [Member] | |||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 275,000 |
Note 8 - Cash and Cash Equiva46
Note 8 - Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's Deposits (Details Textual) - USD ($) $ in Thousands | Jan. 31, 2018 | Oct. 31, 2017 |
Cash Equivalents, at Carrying Value | $ 12,500 | $ 13,300 |
Mortgage Warehouse Lines of Credit [Member] | ||
Restricted Cash and Cash Equivalents | 2,000 | 2,300 |
Homebuilding [Member] | ||
Restricted Cash and Cash Equivalents | 3,213 | 2,077 |
Homebuilding [Member] | Customer Deposits [Member] | ||
Restricted Cash and Cash Equivalents | 500 | 400 |
Financial Services [Member] | ||
Restricted Cash and Cash Equivalents | 15,900 | 22,300 |
Financial Services [Member] | Customer Deposits [Member] | ||
Restricted Cash and Cash Equivalents | $ 13,900 | $ 20,000 |
Note 9 - Mortgage Loans Held 47
Note 9 - Mortgage Loans Held for Sale (Details Textual) $ in Millions | Jan. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Jan. 31, 2017 |
Loans Pledged as Collateral | $ 64.5 | $ 119.6 | |
Number of Loans Reserved For | 45 | 93 |
Note 9 - Mortgage Loans Held 48
Note 9 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Loan origination reserves, beginning of period | $ 3,158 | $ 8,137 |
Provisions for losses during the period | 30 | 34 |
Adjustments to pre-existing provisions for losses from changes in estimates | 0 | (3,094) |
Loan origination reserves, end of period | $ 3,188 | $ 5,077 |
Note 10 - Mortgages (Details Te
Note 10 - Mortgages (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2018 | Oct. 31, 2017 | |
JP Morgan Chase Bank [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |
Warehouse Agreement Borrowings | $ 21,300 | $ 41,500 |
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument Variable Rate Basis Adjusted London Interbank Offered Rate LIBOR | 1.58% | |
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 | $ 29,600 | 40,700 |
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.375% | |
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 5.125% | |
Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | Homebuilding [Member] | ||
Secured Debt | $ 64,450 | 64,512 |
Debt Instrument, Collateral Amount | $ 172,700 | $ 157,800 |
Debt, Weighted Average Interest Rate | 5.30% | 5.30% |
Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | Corporate, Non-Segment [Member] | ||
Secured Debt | $ 13,000 | |
Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | Homebuilding [Member] | ||
Secured Debt | 13,012 | |
Comerica Master Repurchase Agreement [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | |
Warehouse Agreement Borrowings | $ 12,100 | $ 32,400 |
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.375% | |
Debt Instrument Variable Rate Basis Floor Rate | 0.25% |
Note 11 - Senior Notes and Cr50
Note 11 - Senior Notes and Credit Facilities (Details Textual) | Jan. 15, 2019USD ($) | Feb. 01, 2018USD ($) | Dec. 01, 2017USD ($) | Jun. 30, 2013USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jan. 29, 2018USD ($) | Jan. 11, 2018 | Oct. 31, 2017USD ($) | |||
Interest Payable | $ 15,100,000 | $ 41,800,000 | ||||||||||
Debt Issuance Costs, Net | $ 16,100,000 | 16,100,000 | ||||||||||
Debt Covenant Fixed Charge Coverage Ratio Minimum | 2 | |||||||||||
Repayments of Senior Debt | $ 56,002,000 | $ 33,086,000 | ||||||||||
Long-term Line of Credit | 52,000,000 | 52,000,000 | ||||||||||
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | ||||||||||||
Letters of Credit Outstanding, Amount | 2,700,000 | 1,700,000 | ||||||||||
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | Cash and Cash Equivalents Collateral [Member] | ||||||||||||
Debt Instrument, Collateral Amount | 2,700,000 | 1,700,000 | ||||||||||
GSO [Member] | Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000,000 | |||||||||||
Citi Bank [Member] | Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000,000 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Long-term Line of Credit | 52,000,000 | 52,000,000 | ||||||||||
Letters of Credit Outstanding, Amount | $ 11,900,000 | $ 14,600,000 | ||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | |||||||||||
Senior Secured Notes [Member] | ||||||||||||
Debt Instrument, Voluntary Prepayment Premium, Aggregate Principal Amount, Percentage | 1.00% | |||||||||||
Senior Secured Notes [Member] | Base Rate [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.00% | |||||||||||
Senior Exchangeable Notes [Member] | ||||||||||||
Repayments of Senior Debt | $ 53,900,000 | |||||||||||
Unsecured Senior Notes [Member] | GSO [Member] | ||||||||||||
Debt Instrument, Face Amount | 132,500,000 | |||||||||||
Unsecured Senior Notes [Member] | Subsequent Event [Member] | GSO [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 132,500,000 | |||||||||||
Delayed Draw Term Loans [Member] | GSO [Member] | ||||||||||||
Debt Agreement Maximum Borrowing Capacity | $ 80,000,000 | |||||||||||
The 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 5.00% | 5.00% | |||||||||
The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 2.00% | 2.00% | |||||||||
The 9.50% 2020 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% | |||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 10.00% | 10.00% | |||||||||
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 | 110.00% | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||||||
The 7.0% 2019 Notes [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||||||||
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% | |||||||||
8.0% Senior Notes Due 2019 [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||
8.0% Senior Notes Due 2019 [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||||
Repayments of Senior Debt | $ 26,500,000 | |||||||||||
Debt Instrument, Face Amount | $ 170,200,000 | |||||||||||
8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 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% | |||||||||||
8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||||
The 11.0% 2017 Amortizing Note [Member] | Senior Amortizing Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | 11.00% | [1],[2] | 11.00% | [1],[2] | |||||||
Repayments of Senior Debt | $ 2,100,000 | |||||||||||
The 10.5% 2024 Notes [Member] | GSO [Member] | Scenario, Forecast [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | |||||||||||
Debt Instrument, Face Amount | $ 25,000,000 | |||||||||||
Debt Instrument, Purchase Price | $ 1,000 | |||||||||||
Increase (Decrease) in Stated Rate Due to Terms | 0.50% | |||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 10.50% | 10.50% | |||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||||
Increase (Decrease) in Stated Rate Due to Terms | 0.50% | |||||||||||
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 | 110.50% | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||||||
The 7% 2019 Notes [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||||||||
The 5.0% Notes Due 2027 [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||||
Thirteen and a Half Percent Senior Notes Due 2026 [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | |||||||||||
Thirteen and a Half Percent Senior Notes Due 2026 [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | |||||||||||
Debt Instrument, Face Amount | $ 90,600,000 | |||||||||||
Five Percent Senior Notes due 2040 [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||||
Five Percent Senior Notes due 2040 [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||||
Debt Instrument, Face Amount | $ 90,100,000 | |||||||||||
The Purchased 8% Notes [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||||
Repayments of Senior Debt | $ 26,500,000 | |||||||||||
Debt Instrument, Face Amount | 26,000,000 | |||||||||||
Term Loan [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 75,000,000 | |||||||||||
Term Loan Facility [Member] | Real Estate Inventory [Member] | ||||||||||||
Debt Instrument, Collateral Amount | 454,800,000 | |||||||||||
Term Loan Facility [Member] | Cash and Cash Equivalents Collateral [Member] | ||||||||||||
Debt Instrument, Collateral Amount | 198,100,000 | |||||||||||
Term Loan Facility [Member] | Restricted Cash [Member] | ||||||||||||
Debt Instrument, Collateral Amount | $ 1,700,000 | |||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Senior Secured Notes [Member] | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
9.5% Senior Secured Notes Due 2020 [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 | 109.50% | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||
Debt Instrument, Voluntary Prepayment Premium, Aggregate Principal Amount, Percentage | 1.00% | |||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
The 2021 Notes and 9.5% 2020 Notes [Member] | Senior Secured Notes [Member] | Secured Group [Member] | Investment in Joint Ventures [Member] | ||||||||||||
Debt Instrument, Collateral Amount | $ 65,400,000 | |||||||||||
The 2021 Notes and 9.5% 2020 Notes [Member] | Senior Secured Notes [Member] | Real Estate Inventory [Member] | ||||||||||||
Debt Instrument, Collateral Amount | 140,300,000 | |||||||||||
The 2021 Notes and 9.5% 2020 Notes [Member] | Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member] | ||||||||||||
Debt Instrument, Collateral Amount | 82,800,000 | |||||||||||
The 2021 Notes and 9.5% 2020 Notes [Member] | Senior Secured Notes [Member] | Restricted Cash [Member] | ||||||||||||
Debt Instrument, Collateral Amount | $ 1,000,000 | |||||||||||
The 8.0% Senior Notes Due 2019 [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 170,200,000 | |||||||||||
Debt Instrument, Aggregate Principal Outstanding, Percentage | 72.14% | |||||||||||
The 8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 8.00% | 8.00% | |||||||||
[1] | “Notes payable and term loan” on our Condensed Consolidated Balance Sheets as of January 31, 2018 and October 31, 2017 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 $15.1 million and $41.8 million, respectively. | |||||||||||
[2] | Debt issuance costs at both January 31, 2018 and October 31, 2017 were $16.1 million. |
Note 11 - Senior Notes and Cr51
Note 11 - Senior Notes and Credit Facilities - Senior Secured, Senior and Senior Subordinated Notes (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Oct. 31, 2017 | |
Unsecured Revolving Credit Facility | $ 52,000 | $ 52,000 | |
Senior Secured Term Loan [Member] | |||
Senior Notes | [1],[2] | 73,275 | 72,987 |
Senior Secured Notes [Member] | |||
Senior Notes | [1],[2] | 1,090,386 | 1,090,636 |
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 74,403 | 74,350 |
Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member] | |||
Senior Notes | [1],[2] | 53,067 | 53,058 |
Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member] | |||
Senior Notes | [1],[2] | 134,185 | 133,732 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | |||
Senior Notes | [1],[2] | 434,620 | 434,543 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | |||
Senior Notes | [1],[2] | 394,111 | 394,953 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||
Senior Notes | [1],[2] | 366,575 | 366,250 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | |||
Senior Notes | [1],[2] | 132,074 | 131,957 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member] | |||
Senior Notes | [1],[2] | 234,501 | 234,293 |
Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member] | |||
Senior Notes | [1],[2] | 2,045 | |
Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member] | |||
Senior Notes | [1],[2] | $ 53,919 | |
[1] | “Notes payable and term loan” on our Condensed Consolidated Balance Sheets as of January 31, 2018 and October 31, 2017 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 $15.1 million and $41.8 million, respectively. | ||
[2] | Debt issuance costs at both January 31, 2018 and October 31, 2017 were $16.1 million. |
Note 11 - Senior Notes and Cr52
Note 11 - Senior Notes and Credit Facilities - Senior Secured, Senior and Senior Subordinated Notes (Details) (Parentheticals) | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018 | Oct. 31, 2017 | Dec. 01, 2017 | ||||
The 9.50% 2020 Notes [Member] | Senior Secured 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 | |||
The 2.0% 2021 Notes [Member] | Senior Secured 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 | |||
The 5.0% 2021 Notes [Member] | Senior Secured 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 | |||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 10.00% | 10.00% | |||
Debt Instrument, Maturity Date | [1],[2] | Jul. 15, 2022 | Jul. 15, 2022 | |||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 10.50% | 10.50% | |||
Debt Instrument, Maturity Date | [1],[2] | Jul. 15, 2024 | Jul. 15, 2024 | |||
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% | |||
Debt Instrument, Maturity Date | [1],[2] | Jan. 15, 2019 | Jan. 15, 2019 | |||
The 8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [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 | |||
The 11.0% 2017 Amortizing Note [Member] | Senior Amortizing Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | [1],[2] | 11.00% | [1],[2] | 11.00% | |
Debt Instrument, Maturity Date | [1],[2] | Dec. 1, 2017 | Dec. 1, 2017 | |||
Senior Exchangeable Notes Due 2017 [Member] | Senior Amortizing Notes [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 January 31, 2018 and October 31, 2017 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 $15.1 million and $41.8 million, respectively. | |||||
[2] | Debt issuance costs at both January 31, 2018 and October 31, 2017 were $16.1 million. |
Note 12 - Per Share Calculati53
Note 12 - Per Share Calculations (Details Textual) - shares shares in Millions | 3 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Exchangeable Note Unit Rate Stated Percentage | 6.00% | |
Non Vested Stock and Outstanding Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.4 | 4.2 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.3 | 10 |
Out of the Money Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.2 | 4.8 |
Note 13 - Preferred Stock (Deta
Note 13 - Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jul. 12, 2005 | Jan. 31, 2018 | Jan. 31, 2017 | Oct. 31, 2017 |
Preferred Stock, Shares Issued | 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 |
Note 14 - Common Stock (Details
Note 14 - Common Stock (Details Textual) shares in Thousands | 3 Months Ended | ||||
Jan. 31, 2018shares | 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% | ||||
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 A [Member] | |||||
Common Stock Voting Rights Votes per Share Number | 1 | ||||
Shareholder Ownership Percentage | 4.90% | ||||
Number of Rights | 1 | ||||
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 | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 500 | ||||
Common Class B [Member] | |||||
Common Stock Voting Rights Votes per Share Number | 10 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | Dec. 22, 2017 | Jan. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2017 | Oct. 31, 2018 |
Income Tax Expense (Benefit) | $ 338 | $ 466 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||||
Revaluation of Deferred Tax Asset, Decrease | 298,500 | ||||
Revaluation of Deferred Tax Liabilities, Decrease | 12,200 | ||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 0 | ||||
Deferred Tax Assets, Valuation Allowance | 661,100 | ||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (30,471) | $ (50,200) | 323 | ||
Gain (Loss) on Extinguishment of Debt | $ (42,300) | 7,646 | |||
Increase in Interest Incurred Per Year, Amount | 23,400 | ||||
Scenario, Forecast [Member] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||
Domestic Tax Authority [Member] | |||||
Income Tax Expense (Benefit) | 484 | ||||
Operating Loss Carryforwards | 1,600,000 | ||||
State and Local Jurisdiction [Member] | |||||
Income Tax Expense (Benefit) | 338 | $ (18) | |||
Operating Loss Carryforwards | 2,600,000 | ||||
State and Local Jurisdiction [Member] | Between 2018 and 2022 [Member] | |||||
Operating Loss Carryforwards | 247,100 | ||||
State and Local Jurisdiction [Member] | Between 2023 and 2027 [Member] | |||||
Operating Loss Carryforwards | 463,100 | ||||
State and Local Jurisdiction [Member] | Between 2028 and 2032 [Member] | |||||
Operating Loss Carryforwards | 1,500,000 | ||||
State and Local Jurisdiction [Member] | Between 2033 and 2037 [Member] | |||||
Operating Loss Carryforwards | $ 350,000 |
Note 16 - Operating and Repor57
Note 16 - Operating and Reporting Segments (Details Textual) $ in Thousands | 3 Months Ended | |||
Jan. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Jan. 31, 2017USD ($) | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 29,131 | $ 22,627 | |
Other Nonoperating Income (Expense) | (390) | (1,587) | ||
Gain (Loss) on Extinguishment of Debt | $ (42,300) | 7,646 | ||
Qualifying Assets Not Exceeding Debt [Member] | ||||
Real Estate Inventory Expense Not Eligible for Capitalization | 19,600 | 13,300 | ||
Corporate, Non-Segment [Member] | ||||
General and Administrative Expense | 19,100 | 15,700 | ||
Real Estate Inventory Expense Not Eligible for Capitalization | 13,300 | |||
Other Nonoperating Income (Expense) | (3,900) | 600 | ||
Gain (Loss) on Extinguishment of Debt | $ (7,600) | |||
Corporate, Non-Segment [Member] | Qualifying Assets Not Exceeding Debt [Member] | ||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 19,600 | |||
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: Other interest expensed of $29,131 plus interest paid by our mortgage and finance subsidiaries $601 Plus the decrease in accrued interest of 26,750 for 2018 and other interest expensed of $22,627 plus interest paid by our mortgage and finance subsidiaries $629 Plus the decrease in accrued interest of $763 for 2017. | |||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $19.6 million and $13.3 million for the three months ended January 31, 2018 and 2017, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $9.6 million and $9.3 million for the three months ended January 31, 2018 and 2017, respectively. |
Note 16 - Operating and Repor58
Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2017 | ||
Total revenues | $ 417,166 | $ 552,009 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (30,471) | $ (50,200) | 323 | |
Corporate, Non-Segment [Member] | ||||
Total revenues | [1] | 4,180 | 133 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | [1] | (34,842) | (22,046) | |
Homebuilding [Member] | Operating Segments [Member] | ||||
Total revenues | 402,098 | 539,027 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,824 | 16,375 | ||
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | ||||
Total revenues | 20,199 | 58,575 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (9,701) | 906 | ||
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | ||||
Total revenues | 71,297 | 100,226 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,952 | 3,882 | ||
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | ||||
Total revenues | 40,579 | 43,702 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (2,344) | 712 | ||
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | ||||
Total revenues | 56,668 | 56,584 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (1,661) | (294) | ||
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | ||||
Total revenues | 128,305 | 183,409 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 5,511 | 11,923 | ||
Homebuilding [Member] | West [Member] | Operating Segments [Member] | ||||
Total revenues | 85,050 | 96,531 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 8,067 | (754) | ||
Financial Services [Member] | Operating Segments [Member] | ||||
Total revenues | 10,888 | 12,849 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 2,547 | $ 5,994 | ||
[1] | Corporate and unallocated for the three months ended January 31, 2018 included corporate general and administrative costs of $19.1 million, interest expense of $19.6 million (a component of Other interest on our Condensed Consolidated Statements of Operations) and $(3.9) million of other income and expenses primarily related to interest income, gain on the sale of our corporate headquarters building and stock compensation. Corporate and unallocated for the three months ended January 31, 2017 included corporate general and administrative costs of $15.7 million, interest expense of $13.3 million (a component of Other interest on our Condensed Consolidated Statements of Operations), gain on extinguishment of debt of $(7.6) million and $0.6 million of other income and expenses primarily related to interest income, rental income, bond amortization and stock compensation. |
Note 16 - Operating and Repor59
Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Oct. 31, 2017 |
Assets | $ 1,645,937 | $ 1,900,898 |
Corporate, Non-Segment [Member] | ||
Assets | 334,826 | 547,554 |
Homebuilding [Member] | ||
Assets | 1,544,012 | 1,738,785 |
Homebuilding [Member] | Operating Segments [Member] | ||
Assets | 1,209,186 | 1,191,231 |
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | ||
Assets | 168,967 | 180,545 |
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | ||
Assets | 222,284 | 224,398 |
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | ||
Assets | 86,909 | 84,960 |
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | ||
Assets | 234,358 | 231,644 |
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | ||
Assets | 325,296 | 294,337 |
Homebuilding [Member] | West [Member] | Operating Segments [Member] | ||
Assets | 171,372 | 175,347 |
Financial Services [Member] | Operating Segments [Member] | ||
Assets | $ 101,925 | $ 162,113 |
Note 17 - Investments in Unco60
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Oct. 31, 2017USD ($) | |
Number of Owned Communities Transferred to the Joint Venture | 1 | ||
Number of Optioned Communities Transferred to the Joint Venture | 3 | ||
Proceeds from Transfer of Land to Joint Venture | $ 11,200 | ||
Joint Venture Total Debt to Capitalization Ratio | 58.00% | ||
Homebuilding [Member] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 92,262 | $ 115,090 | |
Management Fees Revenue | 1,900 | $ 2,200 | |
Corporate Joint Venture [Member] | |||
Advances to Affiliate | $ 23,100 | $ 22,400 | |
Joint Venture Total Debt to Capitalization Ratio | 58.00% | 51.00% | |
Corporate Joint Venture [Member] | Homebuilding [Member] | |||
Joint Venture Impairment Charge | $ 700 |
Note 17 - Investments in Unco61
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 | ||
Jan. 31, 2018 | Jan. 31, 2017 | Oct. 31, 2017 | |
Debt to capitalization ratio | 58.00% | ||
Our share of net (loss) income | $ (5,176) | $ (1,666) | |
Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 37,817 | $ 60,774 | |
Inventories | 660,400 | 675,179 | |
Other assets | 34,438 | 36,026 | |
Total assets | 732,655 | 771,979 | |
Accounts payable and accrued liabilities | 107,269 | 122,075 | |
Notes payable | 364,886 | 330,642 | |
Total liabilities | 472,155 | 452,717 | |
Hovnanian Enterprises, Inc. | 82,418 | 92,630 | |
Others | 178,082 | 226,632 | |
Total equity | 260,500 | 319,262 | |
Total liabilities and equity | $ 732,655 | $ 771,979 | |
Debt to capitalization ratio | 58.00% | 51.00% | |
Revenues | $ 59,840 | 66,139 | |
Cost of sales and expenses | (73,294) | (68,208) | |
Joint venture net (loss) income | (13,454) | (2,069) | |
Our share of net (loss) income | (5,140) | (1,571) | |
Homebuilding Joint Venture [Member] | Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 36,994 | $ 60,580 | |
Inventories | 652,030 | 666,017 | |
Other assets | 34,438 | 36,026 | |
Total assets | 723,462 | 762,623 | |
Accounts payable and accrued liabilities | 106,971 | 121,646 | |
Notes payable | 364,886 | 330,642 | |
Total liabilities | 471,857 | 452,288 | |
Hovnanian Enterprises, Inc. | 78,613 | 88,884 | |
Others | 172,992 | 221,451 | |
Total equity | 251,605 | 310,335 | |
Total liabilities and equity | $ 723,462 | $ 762,623 | |
Debt to capitalization ratio | 59.00% | 52.00% | |
Revenues | $ 58,565 | 64,937 | |
Cost of sales and expenses | (72,136) | (67,226) | |
Joint venture net (loss) income | (13,571) | (2,289) | |
Our share of net (loss) income | (5,199) | (1,681) | |
Land Development Joint Venture [Member] | Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 823 | $ 194 | |
Inventories | 8,370 | 9,162 | |
Other assets | |||
Total assets | 9,193 | 9,356 | |
Accounts payable and accrued liabilities | 298 | 429 | |
Notes payable | |||
Total liabilities | 298 | 429 | |
Hovnanian Enterprises, Inc. | 3,805 | 3,746 | |
Others | 5,090 | 5,181 | |
Total equity | 8,895 | 8,927 | |
Total liabilities and equity | $ 9,193 | $ 9,356 | |
Debt to capitalization ratio | 0.00% | 0.00% | |
Revenues | $ 1,275 | 1,202 | |
Cost of sales and expenses | (1,158) | (982) | |
Joint venture net (loss) income | 117 | 220 | |
Our share of net (loss) income | $ 59 | $ 110 |
Note 19 - Fair Value of Finan62
Note 19 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Oct. 31, 2017 | |
Loans Held for Sale Mortgages Unpaid Principal | $ 78,000 | $ 128,400 | |
Other Commitment | 19,500 | ||
Impairment of Real Estate | 0 | $ 2,700 | |
Fair Value, Inputs, Level 2 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||
Notes Payable, Fair Value Disclosure | 396,600 | 383,700 | |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Notes [Member] | |||
Notes Payable, Fair Value Disclosure | 1,200,000 | 1,200,000 | |
Fair Value, Inputs, Level 3 [Member] | Senior Amortizing Notes [Member] | |||
Notes Payable, Fair Value Disclosure | 2,100 | ||
Fair Value, Inputs, Level 3 [Member] | Senior Exchangeable Notes [Member] | |||
Notes Payable, Fair Value Disclosure | $ 54,200 | ||
Loan Origination Commitments [Member] | |||
Loan Applications in Process | $ 537,700 | ||
Loan Origination Commitments [Member] | Maximum [Member] | |||
Number of Days in Committment | 60 days | ||
Interest Rate Committed Loan Applications [Member] | |||
Interest Rate Committed Loan Applications | $ 56,200 |
Note 19 - Fair Value of Finan63
Note 19 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Oct. 31, 2017 | |
Total | $ 80,248 | $ 132,425 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Mortgage loans held for sale | [1] | 80,228 | 132,424 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | |||
Derivative Fair Value | (248) | (14) | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | |||
Derivative Fair Value | $ 268 | $ 15 | |
[1] | The aggregate unpaid principal balance was $78.0 million and $128.4 million at January 31, 2018 and October 31, 2017, respectively. |
Note 19 - Fair Value of Finan64
Note 19 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Loans Held for Sale [Member] | ||
Fair value included in net loss all reflected in financial services revenues | $ 2,434 | $ (3,024) |
Interest Rate Lock Commitments [Member] | ||
Fair value included in net loss all reflected in financial services revenues | (248) | 70 |
Forward Contracts [Member] | ||
Fair value included in net loss all reflected in financial services revenues | $ 268 | $ 31 |
Note 19 - Fair Value of Finan65
Note 19 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Total Losses | $ 0 | $ (2,700,000) |
Sold and Unsold Homes and Lots Under Development [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
PreImpairment Value | 6,302 | |
Total Losses | (2,587) | |
Fair Value of Inventory | 3,715 | |
Land and Land Options Held for Future Development or Sale [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
PreImpairment Value | 6,326 | |
Total Losses | (81) | |
Fair Value of Inventory | $ 6,245 |
Note 20 - Transactions With R66
Note 20 - Transactions With Related Parties (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Tavit Najarian [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 0.1 | $ 0.2 |
Note 21 - Subsequent Events (De
Note 21 - Subsequent Events (Details Textual) - USD ($) | Feb. 01, 2018 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 29, 2018 | Jan. 11, 2018 |
Repayments of Senior Debt | $ 56,002,000 | $ 33,086,000 | |||
8.0% Senior Notes Due 2019 [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||
Thirteen and a Half Percent Senior Notes Due 2026 [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||
Five Percent Senior Notes due 2040 [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||
Subsequent Event [Member] | The 7.0% 2019 Notes [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||
Subsequent Event [Member] | 8.0% Senior Notes Due 2019 [Member] | |||||
Debt Instrument, Face Amount | $ 170,200,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||
Repayments of Senior Debt | $ 26,500,000 | ||||
Subsequent Event [Member] | Thirteen and a Half Percent Senior Notes Due 2026 [Member] | |||||
Debt Instrument, Face Amount | $ 90,600,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||
Subsequent Event [Member] | Five Percent Senior Notes due 2040 [Member] | |||||
Debt Instrument, Face Amount | $ 90,100,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||
Unsecured Senior Notes [Member] | GSO [Member] | |||||
Debt Instrument, Face Amount | $ 132,500,000 | ||||
Unsecured Senior Notes [Member] | GSO [Member] | Subsequent Event [Member] | |||||
Debt Instrument, Face Amount | $ 132,500,000 |