Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Dec. 11, 2020 | Apr. 30, 2020 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000357294 | ||
Entity Registrant Name | HOVNANIAN ENTERPRISES INC | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-8551 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-1851059 | ||
Entity Address, Address Line One | 90 Matawan Road, Fifth Floor | ||
Entity Address, City or Town | Matawan | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07747 | ||
City Area Code | 732 | ||
Local Phone Number | 747-7800 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 64,080,000 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 622,201 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock $0.01 par value per share | ||
Trading Symbol | HOV | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 5,520,359 | ||
Series A Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th of a share of 7.625% Series A Preferred Stock | ||
Trading Symbol | HOVNP | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights(1) | ||
Trading Symbol | N/A | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
ASSETS | ||
Investments in and advances to unconsolidated joint ventures | $ 103,164 | $ 127,038 |
Property, plant and equipment, net | 18,185 | 20,127 |
Assets | 1,827,342 | 1,881,424 |
Assets | 1,827,342 | 1,881,424 |
LIABILITIES AND EQUITY | ||
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs) | 1,431,110 | 1,479,990 |
Liabilities | 2,263,436 | 2,371,200 |
Liabilities | 2,263,436 | 2,371,200 |
Income taxes payable | 3,832 | 2,301 |
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at October 31, 2020 and 2019 | 135,299 | 135,299 |
Paid in capital - common stock | 718,110 | 715,504 |
Accumulated deficit | (1,175,045) | (1,225,973) |
Treasury stock - at cost – 470,430 shares of Class A common stock and 27,669 shares of Class B common stock at October 31, 2020 and 2019 | (115,360) | (115,360) |
Total Hovnanian Enterprises, Inc. stockholders’ equity deficit | (436,929) | (490,463) |
Noncontrolling interest in consolidated joint ventures | 835 | 687 |
Total equity deficit | (436,094) | (489,776) |
Total liabilities and equity | 1,827,342 | 1,881,424 |
Common Class A [Member] | ||
LIABILITIES AND EQUITY | ||
Common stock | 60 | 60 |
Common Class B [Member] | ||
LIABILITIES AND EQUITY | ||
Common stock | 7 | 7 |
Homebuilding [Member] | ||
ASSETS | ||
Cash and cash equivalents | 262,489 | 130,976 |
Restricted cash and cash equivalents | 14,731 | 20,905 |
Sold and unsold homes and lots under development | 921,594 | 993,647 |
Land and land options held for future development or sale | 91,957 | 108,565 |
Consolidated inventory not owned | 182,224 | 190,273 |
Total inventories | 1,195,775 | 1,292,485 |
Investments in and advances to unconsolidated joint ventures | 103,164 | 127,038 |
Receivables, deposits and notes, net | 33,686 | 44,914 |
Property, plant and equipment, net | 18,185 | 20,127 |
Prepaid expenses and other assets | 58,705 | 45,704 |
Assets | 1,686,735 | 1,682,149 |
Assets | 1,686,735 | 1,682,149 |
LIABILITIES AND EQUITY | ||
Accounts payable and other liabilities | 359,274 | 320,193 |
Customers’ deposits | 48,286 | 35,872 |
Liabilities from inventory not owned, net of debt issuance costs | 131,204 | 141,033 |
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs) | 1,431,110 | 1,479,990 |
Accrued Interest | 35,563 | 19,081 |
Liabilities | 2,140,559 | 2,199,754 |
Liabilities | 2,140,559 | 2,199,754 |
Homebuilding [Member] | Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | ||
LIABILITIES AND EQUITY | ||
Secured Debt, Total | 135,122 | 203,585 |
Financial Services [Member] | ||
ASSETS | ||
Cash and cash equivalents | 4,854 | 5,578 |
Restricted cash and cash equivalents | 27,386 | 24,807 |
Assets | 140,607 | 199,275 |
Assets | 140,607 | 199,275 |
LIABILITIES AND EQUITY | ||
Liabilities | 119,045 | 169,145 |
Liabilities | $ 119,045 | $ 169,145 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
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) | 16,000,000 | 16,000,000 |
Common stock, shares issued (in shares) | 5,990,310 | 5,973,727 |
Common stock, shares held in Treasury (in shares) | 470,430 | 470,430 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,400,000 | 2,400,000 |
Common stock, shares issued (in shares) | 649,886 | 650,363 |
Common stock, shares held in Treasury (in shares) | 27,669 | 27,669 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Revenues | $ 2,343,901 | $ 2,016,916 | $ 1,991,233 | |
Inventory impairment and land option write-offs | 8,813 | 6,288 | 3,501 | |
Total expenses | 2,318,400 | 2,043,080 | 1,999,584 | |
Corporate general and administrative | 80,553 | 66,364 | 69,632 | |
Other interest expensed | [1],[2] | 103,801 | 90,056 | 103,297 |
Other operations | 1,096 | 1,561 | 1,584 | |
Gain (loss) on extinguishment of debt | 13,337 | (42,436) | (7,536) | |
Income from unconsolidated joint ventures | 16,565 | 28,932 | 24,033 | |
Income (loss) before income taxes | 55,403 | (39,668) | 8,146 | |
State and federal income tax provision | 4,475 | 2,449 | 3,626 | |
Net income (loss) | $ 50,928 | $ (42,117) | $ 4,520 | |
Net income (loss) per common share (in dollars per share) | $ 7.48 | $ (7.06) | $ 0.73 | |
Weighted-average number of common shares outstanding basic (in shares) | 6,189 | 5,968 | 5,941 | |
Net income (loss) per common share (in dollars per share) | $ 7.03 | $ (7.06) | $ 0.72 | |
Weighted-average number of common shares outstanding (in shares) | 6,584 | 5,968 | 6,072 | |
State and Local Jurisdiction [Member] | ||||
State and federal income tax provision | $ 4,475 | $ 2,449 | $ 3,626 | |
Domestic Tax Authority [Member] | ||||
State and federal income tax provision | 0 | 0 | 0 | |
Homebuilding [Member] | ||||
Revenues | 2,271,739 | 1,962,764 | 1,937,878 | |
Cost of sales, excluding interest | 1,848,486 | 1,604,777 | 1,566,555 | |
Cost of sales interest | 74,330 | 70,725 | 60,685 | |
Inventory impairment and land option write-offs | 8,813 | 6,288 | 3,501 | |
Total cost of sales | 1,931,629 | 1,681,790 | 1,630,741 | |
Selling, general and administrative | 161,261 | 166,784 | 159,202 | |
Total expenses | 2,092,890 | 1,848,574 | 1,789,943 | |
Homebuilding [Member] | Sale of Homes [Member] | ||||
Revenues | 2,252,029 | 1,949,682 | 1,906,228 | |
Homebuilding [Member] | Land Sales and Other Revenues [Member] | ||||
Revenues | 19,710 | 13,082 | 31,650 | |
Financial Services [Member] | ||||
Revenues | 72,162 | 54,152 | 53,355 | |
Total expenses | $ 40,060 | $ 36,525 | $ 35,128 | |
[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: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Other interest expensed $ 103,801 $ 90,056 $ 103,297 Interest paid by our mortgage and finance subsidiaries 2,165 2,536 2,478 (Increase) decrease in accrued interest (16,482) 16,515 6,241 Cash paid for interest, net of capitalized interest $ 89,484 $ 109,107 $ 112,016 | |||
[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 $61.9 million, $56.9 million and $76.2 million for the years ended October 31, 2020, 2019 and 2018, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $41.9 million, $33.2 million and $27.1 million for the years ended October 31, 2020, 2019 and 2018, respectively. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity Deficit - USD ($) $ in Thousands | Common Stock Outstanding [Member]Common Class A [Member] | Common Stock Outstanding [Member]Common Class B [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Oct. 31, 2017 | 5,291,412 | 612,304 | 5,600 | |||||
Balance at Oct. 31, 2017 | $ 58 | $ 6 | $ 135,299 | $ 708,002 | $ (1,188,376) | $ (115,360) | $ 0 | $ (460,371) |
Stock options, amortization and issuances (in shares) | 1,210 | |||||||
Stock options, amortization and issuances | 802 | 802 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 20,672 | 9,834 | ||||||
Restricted stock amortization, issuances and forfeitures | 1,545 | 1,545 | ||||||
Conversion of Class B to Class A common stock (in shares) | 134 | (134) | ||||||
Conversion of Class B to Class A common stock | 0 | |||||||
Net (loss) income | 4,520 | 4,520 | ||||||
Balance (in shares) at Oct. 31, 2018 | 5,313,428 | 622,004 | 5,600 | |||||
Balance at Oct. 31, 2018 | $ 58 | $ 6 | $ 135,299 | 710,349 | (1,183,856) | (115,360) | 0 | (453,504) |
Stock options, amortization and issuances (in shares) | ||||||||
Stock options, amortization and issuances | 808 | 808 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 11,210 | 922 | ||||||
Restricted stock amortization, issuances and forfeitures | $ 1 | (126) | (125) | |||||
Conversion of Class B to Class A common stock (in shares) | 232 | (232) | ||||||
Conversion of Class B to Class A common stock | 0 | |||||||
Net (loss) income | (42,117) | (42,117) | ||||||
Issuance of shares for debt (in shares) | 178,427 | |||||||
Issuance of shares for debt | $ 2 | 4,473 | 4,475 | |||||
Changes in noncontrolling interest in consolidated joint ventures | 687 | 687 | ||||||
Balance (in shares) at Oct. 31, 2019 | 5,503,297 | 622,694 | 5,600 | |||||
Balance at Oct. 31, 2019 | $ 60 | $ 7 | $ 135,299 | 715,504 | (1,225,973) | (115,360) | 687 | (489,776) |
Stock options, amortization and issuances (in shares) | ||||||||
Stock options, amortization and issuances | 387 | 387 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 14,310 | 1,796 | ||||||
Restricted stock amortization, issuances and forfeitures | 2,219 | 2,219 | ||||||
Conversion of Class B to Class A common stock (in shares) | 2,273 | (2,273) | ||||||
Conversion of Class B to Class A common stock | 0 | |||||||
Net (loss) income | 50,928 | 50,928 | ||||||
Issuance of shares for debt (in shares) | ||||||||
Issuance of shares for debt | 0 | |||||||
Changes in noncontrolling interest in consolidated joint ventures | 148 | 148 | ||||||
Balance (in shares) at Oct. 31, 2020 | 5,519,880 | 622,217 | 5,600 | |||||
Balance at Oct. 31, 2020 | $ 60 | $ 7 | $ 135,299 | $ 718,110 | $ (1,175,045) | $ (115,360) | $ 835 | $ (436,094) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 50,928 | $ (42,117) | $ 4,520 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 5,304 | 4,172 | 3,156 |
Compensation from stock options and awards | 2,779 | 721 | 3,669 |
Amortization of bond discounts, premiums and deferred financing costs | 1,891 | 8,128 | 8,822 |
Gain on sale and retirement of property and assets | (81) | (25) | (3,619) |
Income from unconsolidated joint ventures | (16,565) | (28,932) | (24,033) |
Distributions of earnings from unconsolidated joint venture | 35,387 | 29,919 | 0 |
(Gain) loss on extinguishment of debt | (13,337) | 42,436 | 7,536 |
Noncontrolling interest in consolidated joint ventures | 148 | 4 | 0 |
Inventory impairment and land option write-offs | 8,813 | 6,288 | 3,501 |
(Increase) decrease in assets: | |||
Origination of mortgage loans | (1,306,279) | (1,089,825) | (1,069,519) |
Sale of mortgage loans | 1,367,903 | 1,054,535 | 1,071,250 |
Receivables, prepaids, deposits and other assets | 20,519 | (15,911) | 20,669 |
Inventories | 87,897 | (220,608) | (58,801) |
Increase (decrease) in liabilities: | |||
State and federal income tax payable | 1,531 | (1,033) | 1,107 |
Customers’ deposits | 12,414 | 5,786 | (3,686) |
Accounts payable, accrued interest and other accrued liabilities | 33,576 | (2,665) | (31,394) |
Net cash provided by (used in) operating activities | 292,828 | (249,127) | (66,822) |
Cash flows from investing activities: | |||
Proceeds from sale of property and assets | 112 | 29 | 38,303 |
Purchase of property, equipment, and other fixed assets and acquisitions | (3,380) | (4,005) | (5,193) |
Investment in and advances to unconsolidated joint ventures | (19,924) | (13,256) | (26,271) |
Distributions of capital from unconsolidated joint ventures | 25,332 | 8,925 | 28,662 |
Net cash provided by (used in) investing activities | 2,140 | (8,307) | 35,501 |
Cash flows from financing activities: | |||
Proceeds from mortgages and notes | 278,577 | 318,462 | 181,101 |
Payments related to mortgages and notes | (348,371) | (209,445) | (162,192) |
Proceeds from model sale leaseback financing programs | 19,200 | 33,188 | 22,749 |
Payments related to model sale leaseback financing programs | (23,646) | (25,791) | (30,123) |
Proceeds from land bank financing programs | 68,060 | 104,961 | 18,827 |
Payments related to land bank financing programs | (73,999) | (33,902) | (38,991) |
Proceeds from partner contributions to consolidated joint venture | 0 | 683 | 0 |
Deferred financing costs from land banking financing programs and note issuances | (13,278) | (16,748) | (8,035) |
Net cash (used in) provided by financing activities | (167,774) | 206,708 | (229,429) |
Net increase (decrease) in cash and cash equivalents, and restricted cash and cash equivalents | 127,194 | (50,726) | (260,750) |
Cash and cash equivalents, and restricted cash and cash equivalents balance, beginning of year | 182,266 | 232,992 | 493,742 |
Cash and cash equivalents, and restricted cash and cash equivalents balance, end of year | 309,460 | 182,266 | 232,992 |
Supplemental disclosures of cash flows: | |||
Interest, net of capitalized interest (see Note 3 to the Consolidated Financial Statements) | 89,484 | 109,107 | 112,016 |
Income taxes | 3,013 | 3,483 | 2,520 |
Cash and cash equivalents, and restricted cash and cash equivalents balance, end of year | 309,460 | 182,266 | 232,992 |
Homebuilding [Member] | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Inventory impairment and land option write-offs | 8,813 | 6,288 | 3,501 |
Supplemental disclosures of cash flows: | |||
Cash and cash equivalents | 262,489 | 130,976 | 187,871 |
Restricted cash and cash equivalents | 14,731 | 20,905 | 12,808 |
Financial Services [Member] | |||
Supplemental disclosures of cash flows: | |||
Cash and cash equivalents | 4,854 | 5,578 | 6,948 |
Restricted cash and cash equivalents | 27,386 | 24,807 | 25,365 |
Senior Secured Term Loan [Member] | |||
Cash flows from financing activities: | |||
Payments related to senior secured debt | 0 | 0 | (76,829) |
Senior Unsecured Term Loan Credit Facility [Member] | |||
Cash flows from financing activities: | |||
Proceeds from senior unsecured term loan facility | 0 | 0 | 202,547 |
Senior Secured Revolving Credit Facility [Member] | |||
Cash flows from financing activities: | |||
Borrowings from senior secured credit facility | 125,000 | 0 | 0 |
Payments related to senior secured credit facility | (125,000) | 0 | 0 |
Senior Secured Notes [Member] | |||
Cash flows from financing activities: | |||
Proceeds from senior secured notes, net of discount | 0 | 578,231 | 0 |
Senior Secured, Senior, Senior Amortizing and Senior Exchangeable Notes [Member] | |||
Cash flows from financing activities: | |||
Payments related to senior secured debt | (21,240) | (570,032) | (285,095) |
Mortgage Warehouse Lines of Credit [Member] | |||
Cash flows from financing activities: | |||
Net (payments) proceeds related to mortgage warehouse lines of credit | (53,077) | 27,101 | (1,388) |
Unsecured Revolving Credit Facility [Member] | |||
Cash flows from financing activities: | |||
Net (payments) proceeds related to mortgage warehouse lines of credit | $ 0 | $ 0 | $ (52,000) |
Supplemental Disclosure of Nonc
Supplemental Disclosure of Noncash Investing and Financing Activities | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental disclosure of noncash investing and financing activities: In the first 2018, one In the second 2018, November 1, 2019 2026 2040. 9 In the fourth 2019 2022 2024 1.125 2026 1.5 2026. 9 In accordance with the adoption of ASU 2016 02, first 2020, In the first 2020, 1.75 2025 2022 2024. 1.75 1.75 January 31, 2028. 9 In the second 2020, 1.5 2026 2022 9 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Basis of Presentation October 31. not 100% not Reverse Stock Split 14, March 2019, 1 March 29, 2019, one one |
Note 2 - Business
Note 2 - Business | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 2. HEI conducts all of its homebuilding and financial services operations through its subsidiaries (references herein to the “Company”, “we”, “us” or “our” refer to HEI and its consolidated subsidiaries and should be understood to reflect the consolidated business of HEI’s subsidiaries). Our operations consist of homebuilding, financial services and corporate. Our homebuilding operations are made up of six reportable segments defined as Northeast, Mid-Atlantic, Midwest, Southeast, Southwest and West. Homebuilding operations comprise the substantial part of our business, representing approximately 97% of consolidated revenues for each of the years ended October 31, 2020 2019 2018. October 31, 2020 first first second not See Note 10 |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 3. Use of Estimates Income Recognition from Home and Land Sales 12 606 10, om Contracts with Customers,” revenue is recognized when title is conveyed to the buyer, adequate initial and continuing investments have been received and there is no Income Recognition from Mortgage Loans - We elected the fair value option for our mortgage loans held for sale in accordance with ASC 825, Substantially all of the mortgage loans originated are sold within a short period of time in the secondary mortgage market on a servicing released, nonrecourse basis, although the Company remains liable for certain limited representations, such as fraud, and warranties related to loan sales. Mortgage investors could seek to have us buy back loans or compensate them from losses incurred on mortgages we have sold based on claims that we breached our limited representations and warranties. We have established reserves for probable losses. Cash and Cash Equivalents 90 may, October 31, 2020 2019 Fair Value of Financial Instruments not third Inventories We record inventories in our consolidated balance sheets at cost unless the inventory is determined to be impaired, in which case the inventory is written down to its fair value. Our inventories consist of the following three 1 2 3 not We decide to mothball (or stop development on) certain communities when we determine that the current performance does not 2020, not one one October 31, 2020 2019, We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a third 606 10 55 68, October 31, 2020 2019 not not We have land banking arrangements, whereby we sell our land parcels to the land banker 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 606 10 55 70, October 31, 2020 2019 not not The recoverability of inventories and other long-lived assets is assessed in accordance with the provisions of ASC 360 10, 360 10 We evaluate inventories of communities under development and held for future development for impairment when indicators of potential impairment are present. Indicators of impairment include, but are not The projected operating profits, losses or cash flows of each community can be significantly impacted by our estimates of the following: ● future base selling prices; ● future home sales incentives; ● future home construction and land development costs; and ● future sales absorption pace and cancellation rates. These estimates are dependent upon specific market conditions for each community. While we consider available information to determine what we believe to be our best estimates as of the end of a quarterly reporting period, these estimates are subject to change in future reporting periods as facts and circumstances change. Local market-specific conditions that may ● the intensity of competition within a market, including available home sales prices and home sales incentives offered by our competitors; ● the current sales absorption pace for both our communities and competitor communities; ● community-specific attributes, such as location, availability of lots in the market, desirability and uniqueness of our community, and the size and style of homes currently being offered; ● potential for alternative product offerings to respond to local market conditions; ● changes by management in the sales strategy of the community; ● current local market economic and demographic conditions and related trends and forecasts; and ● existing home inventory supplies, including foreclosures and short sales. These and other local market-specific conditions that may may may may may may one not may not If the undiscounted cash flows are more than the carrying value of the community, then the carrying amount is recoverable, and no third October 31, 2018 October 31, 2020 may From time to time, we write off deposits and approval, engineering and capitalized interest costs when we determine that it is no not not not Inventories held for sale are land parcels ready for sale in their current condition, where we have decided not October 31, 2020 October 31, 2019 third Warranty Costs and Construction Defect Reserves 2020 2019 2020 2019 2020 2019 not third third not not 16 Interest Interest costs incurred, expensed and capitalized were: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Interest capitalized at beginning of year $ 71,264 $ 68,117 $ 71,051 Plus interest incurred(1) 176,457 165,906 161,048 Less cost of sales interest expensed 74,330 70,725 60,685 Less other interest expensed(2)(3) 103,801 90,056 103,297 Less interest contributed to unconsolidated joint venture(4) 4,580 1,978 - Interest capitalized at end of year(5) $ 65,010 $ 71,264 $ 68,117 ( 1 Data does not ( 2 Other interest expensed includes interest that does not not October 31, 2020, 2019 2018 not October 31, 2020, 2019 2018 ( 3 Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Other interest expensed $ 103,801 $ 90,056 $ 103,297 Interest paid by our mortgage and finance subsidiaries 2,165 2,536 2,478 (Increase) decrease in accrued interest (16,482 ) 16,515 6,241 Cash paid for interest, net of capitalized interest $ 89,484 $ 109,107 $ 112,016 ( 4 Represents capitalized interest which was included as part of the assets contributed to the joint ventures the Company entered into in December 2019 June 2019 October 31, 2020 2019, 20. no ( 5 Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. Land Options - not 810 10 not not not not Unconsolidated Homebuilding and Land Development Joint Ventures - third not not 323 10, 2019 2020 2018. Deferred Bond Issuance Costs - Debt Issued At a Discount /Premium - Advertising Costs October 31, 2020, 2019 2018 Deferred Income Taxes - 740 10, 740 10 not” In evaluating the exposures associated with our various tax filing positions, we recognize tax liabilities in accordance with ASC 740 10, not may may Prepaid Expenses - Allowance for Doubtful Accounts October 31, 2020 2019 2020 2019 2019 2020 2019. Stock Options - 718 10, Compensation cost arising from nonvested stock granted to employees and from nonemployee stock awards is based on the fair value of the awards at the grant date recognized as expense using the straight-line method over the vesting period. Per Share Calculations - 2018 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 Recent Accounting Pronouncements In February 2016, No. 2016 02, 842 2016 02” 2016 02 12 2016 02 November 1, 2019, no 2016 02 November 1, 2019. 2016 02 no In August 2018, No. 2018 13, 820 2018 13” 2018 13 November 1, 2020. not In August 2018, No. 2018 15, 350 40 2018 15” 2018 15 2018 15 November 1, 2020. not In March 2020, 2020 04, 2020 04” 2020 04 March 12, 2020, may December 31, 2022. not |
Note 4 - Leases
Note 4 - Leases | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 4. Leases We lease certain office space for use in our operations. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842 842" 842, three five 842, 842, not Our lease population at October 31, 2020 842, not twelve Lease cost included in our Consolidated Statements of Operations in Selling, general and administrative expenses and payments on our lease liabilities are presented in the table below. Our short-term lease costs and sublease income are de minimis. Year Ended October 31, (In thousands) 2020 Operating lease cost $ 10,507 Cash payments on lease liabilities $ 9,257 ROU assets are classified within Prepaids and other assets on our Consolidated Balance Sheets, while lease liabilities are classified within Accounts payable and other liabilities on our Consolidated Balance Sheets. The Company recorded a net increase to both its ROU assets and lease liabilities of $2.8 million as a result of lease renewals that commenced during the year ended October 31, 2020 (In thousands) At October 31, 2020 ROU assets $ 20,016 Lease liabilities $ 21,049 Weighted-average remaining lease term (in years) 3.5 Weighted-average discount rate (incremental borrowing rate) 9.6 % Maturities of our operating lease liabilities as of October 31, 2020 Year ending October 31, (in thousands) 2021 $ 8,880 2022 7,506 2023 4,298 2024 1,673 2025 1,324 Thereafter 1,107 Total payments 24,788 Less: imputed interest (3,739 ) Present value of lease liabilities $ 21,049 Under ASC 840, 840 October 31, 2019 2018 |
Note 5 - Property, Plant and Eq
Note 5 - Property, Plant and Equipment | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Homebuilding property, plant, and equipment consists of land, land improvements, buildings, building improvements, furniture and equipment used to conduct day-to-day business and are recorded at cost less accumulated depreciation. Property, plant, and equipment balances as of October 31, 2020 2019 October 31, (In thousands) 2020 2019 Land and land improvements $ 1,639 $ 1,639 Buildings 9,497 9,155 Building improvements 13,281 11,552 Furniture 4,363 4,338 Equipment, including capitalized software 35,763 35,423 Total 64,543 62,107 Less accumulated depreciation 46,358 41,980 Total $ 18,185 $ 20,127 |
Note 6 - Restricted Cash and De
Note 6 - Restricted Cash and Deposits | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 6. Homebuilding - Restricted cash and cash equivalents on the Consolidated Balance Sheets totaled $14.7 million and $20.9 million as of October 31, 2020 2019 9. Financial services restricted cash and cash equivalents, which are included in Financial services other assets on the Consolidated Balance Sheets, totaled $27.4 million and $24.8 million as of October 31, 2020 2019 1 October 31, 2020 October 31, 2019 2 October 31, 2020 2019 Total Homebuilding Customers’ deposits are shown as a liability on the Consolidated Balance Sheets. These liabilities are significantly more than the applicable periods’ restricted cash balances because in some states the deposits are not |
Note 7 - Mortgage Loans Held fo
Note 7 - Mortgage Loans Held for Sale | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 7. Our wholly owned mortgage banking subsidiary, K. Hovnanian American Mortgage, LLC (“K. Hovnanian Mortgage”) originates mortgage loans, primarily from the sale of our homes. Such mortgage loans 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 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 October 31, 2020 2019 8 may not October 31, 2020 2019 not The activity in our loan origination reserves in fiscal 2020 2019 Year Ended October 31, (In thousands) 2020 2019 Loan origination reserves, beginning of period $ 1,268 $ 2,563 Provisions for losses during the period 196 198 Adjustments to pre-existing provisions for losses from changes in estimates (6 ) (143 ) Payments/settlements - (1,350 ) Loan origination reserves, end of period $ 1,458 $ 1,268 |
Note 8 - Mortgages
Note 8 - Mortgages | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Line of Credit [Text Block] | 8. Nonrecourse . October 31, 2020 2019 October 31, 2020 2019 Mortgage Loans. Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”), which was amended on December 11, 2020, December 10, 2021. October 31, 2020 October 31, 2020 2019 K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Customers Bank (“Customers Master Repurchase Agreement”) which is a short-term borrowing facility that provides up to $50.0 million through its maturity on February 12, 2021. October 31, 2020 2019 K. Hovnanian Mortgage also has a secured Master Repurchase Agreement with Comerica Bank (“Comerica Master Repurchase Agreement”) which is a short-term borrowing facility through its maturity on June 18, 2021. 15th 30 October 31, 2020 2019 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 October 31, 2020 |
Note 9 - Senior Notes and Credi
Note 9 - Senior Notes and Credit Facilities | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 9. Senior notes and credit facilities balances as of October 31, 2020 October 31, 2019 October 31, October 31, (In thousands) 2020 2019 Senior Secured Notes: 10.0% July 15, 2022 $ 111,214 $ 218,994 10.5% July 15, 2024 69,683 211,391 10.0% November 15, 2025 158,502 - 7.75% February 15, 2026 350,000 350,000 10.5% February 15, 2026 282,322 282,322 11.25% February 15, 2026 162,269 103,141 Total Senior Secured Notes $ 1,133,990 $ 1,165,848 Senior Notes: 8.0% November 1, 2027 $ - $ - 13.5% February 1, 2026 90,590 90,590 5.0% February 1, 2040 90,120 90,120 Total Senior Notes $ 180,710 $ 180,710 Senior Unsecured Term Loan Credit Facility due February 1, 2027 $ 39,551 $ 202,547 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 $ 81,498 $ - Senior Secured Revolving Credit Facility (2) $ - $ - Subtotal notes payable $ 1,435,749 $ 1,549,105 Net (discounts) premiums $ 17,521 $ (49,145 ) Net debt issuance costs $ (22,160 ) $ (19,970 ) Total notes payable, net of discounts, premiums and debt issuance costs $ 1,431,110 $ 1,479,990 ( 1 2027 not November 1, 2019, 8.0% November 1, 2027. ( 2 October 31, 2020 first December 28, 2022. As of October 31, 2020 in thousands Fiscal Year Ended October 31, (1) 2021 $ - 2022 111,214 2023 - 2024 69,683 2025 - Thereafter 1,254,852 Total $ 1,435,749 ( 1 not October 31, 2020 General Except for K. Hovnanian, the issuer of the notes and borrower under the Credit Facilities (as defined below), our home mortgage subsidiaries, certain of our title insurance subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures, we and each of our subsidiaries are guarantors of the Credit Facilities, the senior secured notes (subject in the case of the 10.5% 2024 10.5% 2024 October 31, 2020 ( The credit agreements governing the Credit Facilities and the indentures governing the senior secured and senior notes (together, the “Debt Instruments”) outstanding at October 31, 2020 not not October 31, 2020, If our consolidated fixed charge coverage ratio is less than 2.0 to 1.0, 1.0 not not Under the terms of our Debt Instruments, we have the right to make certain redemptions and prepayments and, depending on market conditions and covenant restrictions, may may Fiscal 2020 On December 10, 2019, "1.75 1.75 2025 “1.75 2022 “10.0% 2022 2024 “10.5% 2024 10.0% 2022 1.75 January 31, 2028 ( no 470 60, $158.5 1.75 $81.5 October 31, 2020 $1.40, In connection with the 1.75 10.5% 2024 10.5% 2024 December 6, 2019 “10.5% 2024 December 10, 2019. December 10, 2019 10.5% 2024 10.5% 2024 not The 1.75 December 10, 2019, 1.75 1.75 May 15 November 15 May 15, 2020, May 1 November 1, may 1.75 November 15, 2025. The 1.75 November 15, 2021 November 15, 2021 November 15, 2022, may 1.75 November 15, 2022 November 15, 2023, may 1.75 November 15, 2023, may 1.75 may 1.75 November 15, 2021 The Secured Term Loans and the guarantees thereof are secured on a pari passu basis with the 1.75 1.75 10.0% January 31, 2028. 10.0% may November 15, 2021 November 15, 2021 November 15, 2022, may November 15, 2022 November 15, 2023, may November 15, 2023, may On March 25, 2020, 1.5 1.5 $59.1 2022 March 25, 2020 ( 1.5 1.5 1.5 The Additional 1.5 1.5 2026 October 31, 2019 ( 1.5 1.5 “1.5 1.5 March 25, 2020 ( October 31, 2019 ( 1.5 March 25, 2020, 1.5 1.5 1.5 1.5 During the year ended October 31, 2020, 10.0% 2022 October 31, 2020, Fiscal 2019 On January 15, 2019, 2024 one 10.5% 2024 10.5% 2024 On October 31, 2019, December 28, 2022. 2018 2018" On October 31, 2019, 1.125 2026 “1.125 October 31, 2019, “1.125 1.125 1.125 1.25 2026 “1.25 “1.25 October 31, 2019, “1.25 In addition, on October 31, 2019, 2022 10.5% 2024 $350.0 1.125 10.5% 2024 1.5 1.5 1.125 1.25 October 30, 2019 ( On October 31, 2019, 2020 “9.50% 2021 “2.000% 2021 “5.000% “9.50% 9.50% “5.000%/2.000% 5.000% 2.000% 9.50% 9.50% not November 10, 2019 5.000%/2.000% 5.000% 2.000% not November 30, 2019 1.25 9.50% 9.50% 5.000%/2.000% 5.000% 2.000% HEI and K. Hovnanian obtained the consent of certain lenders/holders under its existing debt instruments to amend such debt instruments in connection with the issuance of the New Secured Notes and the execution of the indentures governing the New Secured Notes and the Secured Credit Agreement. HEI, K. Hovnanian and the guarantors also amended such debt instruments to add certain subsidiaries as guarantors thereunder and, in the case of the Second Lien Notes, to add such new guarantors as pledgors and grantors of their assets (subject to permitted liens and certain exceptions) to secure such Second Lien Notes. The transactions that were consummated on October 31. 2019, “2019 2019 October 31, 2019, Fiscal 2018 On December 1, 2017, On December 28, 2017, 2019 November 1, 2019, 2027 “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 “Unsecured Term Loan Facility”) to be borrowed by K. Hovnanian and guaranteed by the Company and certain of its subsidiaries, pursuant to which the GSO Entities committed to lend K. Hovnanian Term Loans consisting of $132.5 million of initial term loans (the “Unsecured Initial Term Loans”) on the settlement date of the Exchange Offer for purposes of refinancing K. Hovnanian’s 7.0% 2019 “7.0% 8.0% first “2018 first January 15, 2019, $25.0 10.5% 2024 On January 29, 2018, February 1, 2018 February 1, 2018 nine July 31, 2018. May 29, 2018, 8.0% $26 8% may not October 31, 2018. February 1, 2027. On January 29, 2018, 2018 2018 October 31, 2019 2019 On February 1, 2018, not 8.0% 2026 “2026 2040 “2040 8.0% 2026 2040 not 2026 2040 2026 February 1, 2026. 2040 February 1, 2040. 2026 2040 February 1 August 1 January 15 July 15, may October 31, 2018. 2026 2040 2026 2040 K. Hovnanian’s 2026 February 1, 2025 February 1, 2025, may 2026 At any time and from time to time on or after February 1, 2020 February 1, 2021 may 2040 February 1, 2020, may 2040 Secured Obligations The 10.0% 2022 July 15, 2022 January 15 July 15 January 1 July 1, may may 10.0% 2022 July 15, 2020 July 15, 2021. The 10.5% 2024 July 15, 2024 10.5% January 15 July 15 January 1 July 1, may may 10.5% 2024 July 15, 2020, July 15, 2021 July 15, 2022. The 1.125 February 15, 2026 February 15 August 15 February 1 August 1, may 1.125 February 15, 2022 1.125 may February 15, 2022. may 1.125 February 15, 2022, February 15, 2023 February 15, 2024. The 1.25 February 15, 2026 February 15 August 15 February 1 August 1, may 1.25 February 15, 2022 1.25 may February 15, 2022. may 1.25 February 15, 2022, February 15, 2023 February 15, 2024. The 1.5 February 15, 2026 February 15 August 15 February 1 August 1, may 1.5 February 15, 2026 See “— Fiscal 2020” 1.75 Fiscal 2019” Each series of secured notes (subject in the case of the 10.5% 2024 10.5% 2024 1.125 1.25 1.5 1.75 1.125 1.25 1.5 1.75 1.25 1.5 1.75 1.5 1.75 1.75 As of October 31, 2020, 10.5% 2024 10.5% 2024 1 2 not may 3 Other We have certain stand-alone cash collateralized letter of credit agreements and facilities under which there was a total of $11.3 million and $19.2 million letters of credit outstanding at October 31, 2020 October 31, 2019, October 31, 2020 October 31, 2019, |
Note 10 - Operating and Reporti
Note 10 - Operating and Reporting Segments | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10. HEI’s operating segments are components of the Company’s 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 the Company's communities qualifies as an operating segment, and therefore, it is impractical to provide segment disclosures for this many segments. As such, HEI has aggregated the homebuilding operating segments into six HEI’s homebuilding operating segments are aggregated into reportable segments based primarily upon geographic proximity, similar regulatory environments, land acquisition characteristics and similar methods used to construct and sell homes. HEI’s 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 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 Financial Services segment include mortgage banking and title services provided to the homebuilding operations’ customers. Our financial services subsidiaries do not Corporate and unallocated primarily represents operations 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 (loss) 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 HEI’s segment operations was as follows: Year Ended October 31, (In thousands) 2020 2019 2018 Revenues: Northeast $ 192,069 $ 124,372 $ 116,296 Mid-Atlantic 403,669 357,247 354,690 Midwest 225,718 204,461 196,599 Southeast 232,730 220,082 241,620 Southwest 744,197 629,344 638,282 West 472,889 425,516 384,627 Total homebuilding 2,271,272 1,961,022 1,932,114 Financial services 72,162 54,152 53,355 Corporate and unallocated 467 1,742 5,764 Total revenues $ 2,343,901 $ 2,016,916 $ 1,991,233 Income (loss) before income taxes: Northeast $ 30,371 $ 20,954 $ 20,869 Mid-Atlantic 34,570 14,327 18,757 Midwest (1,805 ) (649 ) 1,528 Southeast 1,355 (10,060 ) (9,914 ) Southwest 68,184 33,459 49,852 West 16,415 40,018 47,987 Total homebuilding 149,090 98,049 129,079 Financial services 32,102 17,627 18,227 Corporate and unallocated (1) (125,789 ) (155,344 ) (139,160 ) Income (loss) before income taxes $ 55,403 $ (39,668 ) $ 8,146 ( 1 October 31, 2020 October 31, 2019 October 31, 2018 October 31, (In thousands) 2020 2019 Assets: Northeast $ 107,748 $ 163,342 Mid-Atlantic 271,867 264,894 Midwest 106,774 117,242 Southeast 248,506 281,654 Southwest 357,444 357,052 West 278,811 311,919 Total homebuilding 1,371,150 1,496,103 Financial services 140,607 199,275 Corporate and unallocated 315,585 186,046 Total assets $ 1,827,342 $ 1,881,424 October 31, (In thousands) 2020 2019 Investments in and advances to unconsolidated joint ventures: Northeast $ 14,646 $ 49,340 Mid-Atlantic 11,055 9,166 Midwest 498 4,382 Southeast 66,234 52,983 Southwest 9,965 10,019 West 64 (33 ) Total homebuilding 102,462 125,857 Corporate and unallocated 702 1,181 Total investments in and advances to unconsolidated joint ventures $ 103,164 $ 127,038 Year Ended October 31, (In thousands) 2020 2019 2018 Homebuilding interest expense: Northeast $ 13,636 $ 10,011 $ 11,811 Mid-Atlantic 16,076 18,563 15,051 Midwest 9,377 7,121 5,874 Southeast 17,005 18,798 14,934 Southwest 29,898 27,731 21,820 West 30,222 23,051 18,309 Total homebuilding 116,214 105,275 87,799 Corporate and unallocated 61,917 55,506 76,183 Financial services interest expense (1) (35 ) 334 104 Total interest expense, net $ 178,096 $ 161,115 $ 164,086 ( 1 ) Financial services interest expenses are included in the Financial services lines on the Consolidated Statements of Operations in the respective revenues and expenses sections. Year Ended October 31, (In thousands) 2020 2019 2018 Depreciation: Northeast $ 229 $ 188 $ 135 Mid-Atlantic 264 209 63 Midwest 1,112 1,097 1,106 Southeast 327 230 124 Southwest 699 331 70 West 801 326 45 Total homebuilding 3,432 2,381 1,543 Financial services 13 14 14 Corporate and unallocated 1,859 1,777 1,599 Total depreciation $ 5,304 $ 4,172 $ 3,156 Year Ended October 31, (In thousands) 2020 2019 2018 Net additions to operating properties and equipment: Northeast $ 43 $ 107 $ 142 Mid-Atlantic 165 168 318 Midwest 861 237 621 Southeast 102 221 701 Southwest 776 741 23 West 846 921 55 Total homebuilding 2,793 2,395 1,860 Financial services - - - Corporate and unallocated 587 1,610 3,333 Total net additions to operating properties and equipment $ 3,380 $ 4,005 $ 5,193 Year Ended October 31, (In thousands) 2020 2019 2018 Equity in earnings (losses) from unconsolidated joint ventures: Northeast $ 11,039 $ 19,242 $ 20,231 Mid-Atlantic (292 ) 3,404 799 Midwest (103 ) (432 ) (775 ) Southeast 820 1,310 (2,032 ) Southwest 5,111 7,951 5,165 West (10 ) (2,543 ) 645 Total equity in earnings from unconsolidated joint ventures $ 16,565 $ 28,932 $ 24,033 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. Income taxes payable, including deferred benefits, consists of the following: Year Ended October 31, (In thousands) 2020 2019 State income taxes: Current $ 3,832 $ 2,301 Deferred - - Federal income taxes: Current - - Deferred - - Total $ 3,832 $ 2,301 The provision for income taxes is composed of the following charges: Year Ended October 31, (In thousands) 2020 2019 2018 Current income tax expense: Federal (1) $ - $ - $ - State (2) 4,475 2,449 3,626 Total current income tax expense: 4,475 2,449 3,626 Federal - - - State - - - Total deferred income tax expense: - - - Total $ 4,475 $ 2,449 $ 3,626 ( 1 ) The current federal income tax expense is net of the use of federal net operating losses totaling $183.0 million (tax effected $38.4 million) and $4.0 million (tax effected $0.8 million) for the years ended October 31, 2020 2019 , respectively. The current federal income tax expense did not October 31, 2018 ( 2 ) The current state income tax expense is net of the use of state net operating losses totaling $72.5 million, $1.3 million and $4.4 million for the years ended October 31, 2020, 2019 2018 The total income tax expense of $4.5 million, $2.4 million, and $3.6 million for the periods ending October 31, 2020, 2019 2018, not October 31, 2020 not Our federal net operating losses of $1.4 billion expire between 2028 2038, 2021 2025; 2026 2030; 2031 2035; 2036 2040; On March 27, 2020, 19 not October 31, 2020. 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 October 31, 2020 , 740. not not October 31, 2020, 1. As of October 31, 2020, three three October 31, 2020. three 2018, 2019 2020. 2019 2018. 2020 third fourth 2020, October 31, 2019 October 31, 2020. November 2020. 19 19 740, one 2. Over the last several years, we have completed a number of debt refinancing/restructuring transactions which, by extending our debt maturities, will enable us to allocate cash to invest in new communities and grow our community count to get back to sustained profitability. (Positive Objective Evidence) 3. We incurred pre-tax losses during the housing market decline and the slower than expected housing market recovery. Given our current highly leveraged balance sheet, a downturn in the housing market, perhaps as a result of a prolonged pandemic, would be significantly more damaging to the Company than to other better capitalized homebuilders and make it very difficult for the Company to avoid future losses, given our high interest burden. (Negative Objective Evidence) 4. We exited several geographic markets over the last few years that have historically had losses. By exiting these underperforming markets, the Company has been able to redeploy capital to better performing markets, which over time should improve our profitability. (Positive Subjective Evidence) 5. The historical cyclicality of the U.S. housing market, a more restrictive mortgage lending environment compared to before the housing downturn of 2007 2009, 19 The deferred tax assets and liabilities have been recognized in the Consolidated Balance Sheets as follows: Year Ended October 31, (In thousands) 2020 2019 Deferred tax assets: Inventory impairment loss $ 42,120 $ 47,000 Uniform capitalization of overhead 3,870 3,917 Warranty and legal reserves 4,848 4,404 Acquisition intangibles - 424 Compensation 9,554 8,477 Deferred Income 3,793 5,167 Interest Expense 3,930 6,616 Restricted stock bonus 1,644 1,553 Stock options 4,026 4,288 Provision for losses 16,566 16,820 Joint venture loss 3,020 4,392 Federal net operating losses 299,854 334,142 State net operating losses 181,050 184,740 Other 3,259 1,280 Total deferred tax assets 577,534 623,220 Total deferred tax liabilities - - Valuation allowance (577,534 ) (623,220 ) Net deferred income taxes $ - $ - The effective tax rate varied from the statutory federal income tax rate. The effective tax rate is affected by a number of factors, the most significant of which has been the valuation allowance related to our deferred tax assets. Due to the effects of these factors, our effective tax rates for 2020 2019 2018 not Year Ended October 31, 2020 2019 2018 Computed “expected” tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 10.6 (5.0 ) 17.2 Permanent differences, net 53.2 (42.4 ) 74.0 Deferred tax asset valuation allowance impact (83.3 ) 20.8 (70.8 ) Tax contingencies (0.5 ) 0.5 1.0 Adjustments to prior years’ tax accruals 7.0 (1.0 ) 2.1 Effective tax rate 8.0 % (6.1 )% 44.5 % ASC 740 10 may not Income tax positions must meet a more-likely-than- not 740 10 We recognize tax liabilities in accordance with ASC 740 10 not may We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. The following is a tabular reconciliation of the total amount of unrecognized tax benefits for the year (in millions) excluding interest and penalties: 2020 2019 Unrecognized tax benefit—November 1, $ 0.9 $ 1.2 Gross increases—tax positions in current period - - Lapse of statute of limitations (0.2 ) (0.3 ) Unrecognized tax benefit—October 31, $ 0.7 $ 0.9 Related to the unrecognized tax benefits noted above, as of October 31, 2020 2019, October 31, 2020, October 31, 2019 2018, It is likely that, within the next year, the amount of the Company's unrecognized tax benefits will decrease by $0.2 million, excluding penalties and interest. This reduction is expected primarily due to the expiration of the statutes of limitation. The portion of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate (excluding any related impact to the valuation allowance) is October 31, 2020 2019. The consolidated federal tax returns have been audited through October 31, 2019 2016 2019. |
Note 12 - Reduction of Inventor
Note 12 - Reduction of Inventory to Fair Value | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Inventory Impairments and Land Option Cost Write-offs [Text Block] | 12. We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they may October 31, 2020, October 31, 2019 2018, may During the years ended October 31, 2020 2019 October 31, 2020 2019 three nine two October 31, 2020 one not October 31, 2020 not October 31, 2019, six three not October 31, 2019 The following table represents impairments by segment for fiscal 2020 2019 2018 (Dollars in millions) Year Ended October 31, 2020 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast - $ - $ - Mid-Atlantic - - - Midwest 2 2.0 4.8 Southeast - - - Southwest - - - West - - - Total 2 $ 2.0 $ 4.8 (Dollars in millions) Year Ended October 31, 2019 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast 2 $ 0.2 $ 7.8 Mid-Atlantic 1 0.3 1.7 Midwest 1 1.4 4.6 Southeast 1 0.7 2.2 Southwest 1 0.1 1.2 West - - - Total 6 $ 2.7 $ 17.5 (Dollars in millions) Year Ended October 31, 2018 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast 1 $ 0.4 $ 1.0 Mid-Atlantic - - - Midwest 1 0.1 0.5 Southeast 3 1.6 9.7 Southwest - - - West - - - Total 5 $ 2.1 $ 11.2 ( 1 ) Represents carrying value, net of prior period impairments, if any, at the time of recording the applicable period’s impairments. The Consolidated Statements of Operations line entitled “Homebuilding: Inventory impairment loss and land option write-offs” also includes write-offs of options and approval, engineering and capitalized interest costs that we record when we redesign communities and/or abandon certain engineering costs and we do not not October 31, 2020, 2019 2018 not The following table represents write-offs of such costs by segment for fiscal 2020 2019 2018 Year Ended October 31, (In millions) 2020 2019 2018 Northeast $ 1.5 $ 0.6 $ 0.6 Mid-Atlantic - 0.5 0.2 Midwest 3.5 0.9 0.1 Southeast 0.8 0.3 - Southwest 0.6 0.6 0.2 West 0.4 0.7 0.3 Total $ 6.8 $ 3.6 $ 1.4 |
Note 13 - Per Share Calculation
Note 13 - Per Share Calculation | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 13. Basic earnings per share is computed by dividing net income (loss) (the “numerator”) by the weighted-average number of common shares outstanding, adjusted for nonvested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of options and nonvested shares of restricted stock, as well as common shares issuable upon exchange of our Senior Exchangeable Notes issued as part of our 6.0% 2018 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 Basic and diluted earnings per share for the periods presented below were calculated as follows: Year Ended October 31, (In thousands, except per share data) 2020 2019 2018 Numerator: Net earnings (loss) attributable to Hovnanian $ 50,928 $ (42,117 ) $ 4,520 Less: undistributed earnings allocated to nonvested shares (4,652 ) - (159 ) Numerator for basic earnings (loss) per share $ 46,276 $ (42,117 ) $ 4,361 Plus: undistributed earnings allocated to nonvested shares 4,652 - 159 Less: undistributed earnings reallocated to nonvested shares (4,652 ) - (159 ) Numerator for diluted earnings (loss) per share $ 46,276 $ (42,117 ) $ 4,361 Denominator: Denominator for basic earnings per share 6,189 5,968 5,941 Effect of dilutive securities: Share-based payments 395 - 131 Denominator for diluted earnings per share – weighted-average shares outstanding 6,584 5,968 6,072 Basic earnings (loss) per share $ 7.48 $ (7.06 ) $ 0.73 Diluted earnings (loss) per share $ 7.03 $ (7.06 ) $ 0.72 Incremental shares attributed to nonvested stock and outstanding options to purchase common stock of 0.3 million for the year ended October 31, 2019 not October 31, 2018, 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 0.2 October 31, 2020, 2019 2018 |
Note 14 - Capital Stock
Note 14 - Capital Stock | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 14. Common Stock - one ten one one On March 19, 2019, 1 March 19, 2019, March 29, 2019, one one On August 4, 2008, January 11, 2018, 382 382. 382 382. one August 15, 2008. August 15, 2008, August 4, 2008, may August 14, 2021, 382 5% On July 3, 2001, no October 31, 2020 October 31, 2020 may On October 31, 2019 1.25 2026, 4 2 1933. Preferred Stock - July 12, 2005, not 7.625%. not 1/1000th 2020 2019 2018 not not Retirement Plan 401 October 31, 2020, 2019 2018 |
Note 15 - Stock Plans
Note 15 - Stock Plans | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 15. There were no stock option grants during the year ended October 31, 2020 October 31, 2019 2018: For the years ended October 31, 2020, 2019 2018 October 31, 2020, 2019 2018 October 31, 2020, 2019 2018 not no We have a stock incentive plan for certain officers and key employees and directors. Beginning in fiscal 2020, third 2020, five two 2020, four fourth fifth three second third October 31, Weighted-Average October 31, Weighted-Average October 31, Weighted-Average 2020 Exercise Price 2019 Exercise Price 2018 Exercise Price Options outstanding at beginning of period 331,481 $ 53.93 278,569 $ 73.76 274,423 $ 85.22 Granted - $ - 110,975 $ 9.44 37,825 $ 56.30 Exercised - $ - - $ - 1,210 $ 49.91 Forfeited 6,560 $ 26.24 2,038 $ 53.96 2,000 $ 64.25 Expired 35,530 $ 115.28 56,025 $ 64.41 30,469 $ 156.95 Options outstanding at end of period 289,391 $ 47.02 331,481 $ 53.93 278,569 $ 73.76 Options exercisable at end of period 145,553 147,019 191,748 There were no options exercised in fiscal 2020 2019. October 31, 2020 2018 The weighted-average fair value of grants made in fiscal 2019 2018 2019 2018 The following table summarizes the exercise price range and related number of options outstanding at October 31, 2020 Weighted- Average Weighted- Remaining Number Average Contractual Range of Exercise Prices Outstanding Exercise Price Life $7.85 – $38.50 108,150 $ 9.65 8.58 $38.75 – $58.13 96,995 $ 50.07 3.76 $61.00 – $90.38 57,300 $ 67.66 4.11 $118.25 – $157.00 26,946 $ 142.17 2.76 289,391 $ 47.02 5.54 The following table summarizes the exercise price range and related number of exercisable options at October 31, 2020 Weighted- Average Weighted- Remaining Number Average Contractual Range of Exercise Prices Exercisable Exercise Price Life $7.85 – $38.50 850 $ 24.08 3.25 $38.75 – $58.13 82,557 $ 50.31 3.2 $61.00 – $90.38 35,200 $ 71.46 1.95 $118.25 – $157.00 26,946 $ 142.17 2.76 145,553 $ 72.28 2.81 Officers and key associates who are eligible to receive equity grants are granted shares of restricted stock units. Prior to fiscal 2020, four fourth fifth one October 31, 2020, 2019 2018 October 31, 2020 2019 For the years ended October 31, 2020 2018 October 31, 2019, October 31, 2020, 2019 2018, A summary of the Company’s nonvested Time-Based share awards for the years ended October 31, 2020 2019 2018 October 31, Weighted-Average Grant Date October 31, Weighted-Average Grant Date October 31, Weighted-Average Grant Date 2020 Fair Value 2019 Fair Value 2018 Fair Value Nonvested Time-Based at beginning of period 231,210 $ 23.01 105,594 $ 61.77 96,091 $ 60.50 Granted 142,231 $ 19.48 164,050 $ 7.66 37,888 $ 54.95 Vested 62,309 $ 17.04 21,329 $ 45.52 22,821 $ 55.19 Forfeited 22,267 $ 57.81 17,106 $ 86.96 5,564 $ 20.87 Nonvested Time-Based at end of period 288,865 $ 19.88 231,210 $ 23.01 105,594 $ 61.77 A summary of the Company’s nonvested Performance-Based share awards for the years ended October 31, 2020 2019 2018 October 31, Weighted-Average Grant Date October 31, Weighted-Average Grant Date October 31, Weighted-Average Grant Date 2020 Fair Value 2019 Fair Value 2018 Fair Value Nonvested Performance-Based at beginning of period 136,316 $ 44.22 101,407 $ 69.28 150,881 $ 50.26 Granted 183,825 $ 15.11 56,400 $ 10.10 47,277 $ 70.41 Vested 4,284 $ 57.22 8,655 $ 42.69 5,390 $ 72.52 Forfeited 21,385 $ 70.44 12,836 $ 93.31 91,361 $ 38.27 Nonvested Performance-Based at end of period 294,472 $ 24.64 136,316 $ 44.22 101,407 $ 69.28 Included in the above table are awards for the share portion of long-term incentive plans (“LTIPs”) for certain officers and associates, which are performance based plans. These amounts include adjustments for performance outcomes during the LTIP period. LTIP shares vest in the third, fourth fifth Also included in the tables above are 142,500 target Performance-based Performance Share Units (“PSUs”), which were granted to certain officers in fiscal 2020. four fourth fifth no The fair value of the PSU grants is determined using the Finnerty model, which uses an arithmetic average strike, put option. The strike price is based on the predetermined period average value of the underlying asset. The following assumptions were used for 2020 two two Also included in the tables above are 81,850 target Time-based and 81,250 Performance-based Market Share Units (“MSUs”) of which 56,400 of each Time-based and Performance-based were granted to certain officers in fiscal 2019. 2020. 2015 2018 2020, not second may first January 1, three January 1, 2022 2019 third no 1 2019 25% 25% second 2020 2019 2 2017 2016 25% 25% second 2020 2018 The fair value of the MSU grants is determined using the Monte-Carlo simulation model, which simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model uses the average closing trading price of the Company’s Class A Common Stock on the New York Stock Exchange over the 60 ● The expected volatility is based on our stock’s historical volatility commensurate with the life 2 2.6 3 4 5 ● The risk-free interest rate is based on the U.S. Treasury rate assumption ranging from 2 5 ● The expected dividend yield is not not The following assumptions were used for 2019 2 2.6 3 4 5 2.55 4 2018 2 2.6 3 4 5 2.56 4 Based on the terms of our equity compensation plans, awards that are forfeited become available to us for future grants under the plan. As of October 31, 2020 October 31, 2020 |
Note 16 - Warranty Costs
Note 16 - Warranty Costs | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 16. General liability insurance for homebuilding companies and their suppliers and subcontractors is very difficult to obtain. The availability of general liability insurance is limited due to a decreased number of insurance companies willing to underwrite for the industry. In addition, those few insurers willing to underwrite liability insurance have significantly increased the premium costs. To date, we have been able to obtain general liability insurance but at higher premium costs with higher deductibles. Our subcontractors and suppliers have advised us that they have also had difficulty obtaining insurance that also provides us coverage. As a result, we have an owner controlled insurance program for certain of our subcontractors whereby the subcontractors pay us an insurance premium (through a reduction of amounts we would otherwise owe such subcontractors for their work on our homes) based on the risk type of the trade. We absorb the liability associated with their work on our homes as part of our overall general liability insurance at no October 31, 2020 2019 We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible. This accrual is expensed as selling, general and administrative costs. For homes delivered in fiscal 2020 2019 2020 2019 $0.25 $20 2020 2019 not October 31, 2020 2019 Year Ended October 31, (In thousands) 2020 2019 Balance, beginning of period $ 89,371 $ 95,064 Additions – Selling, general and administrative 9,587 8,408 Additions – Cost of sales 10,273 6,260 Charges incurred during the period (20,163 ) (18,757 ) Changes to pre-existing reserves (2,651 ) (1,604 ) Balance, end of period $ 86,417 $ 89,371 Warranty accruals are based upon historical experience. We engage a third not fourth 2020 fourth 2019 Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, were less than $0.1 $0.1 October 31, 2020 2019 |
Note 17 - Transactions With Rel
Note 17 - Transactions With Related Parties | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 17. During the years ended October 31, 2020, 2019 2018 Mr. Carson Sorsby, the son of J. Larry Sorsby, one August 2020. 2020 2019 2018 Mr. Alexander Hovnanian, the son of Ara K. Hovnanian, our Chairman of the Board of Directors and our Chief Executive Officer, is employed by the Company. In fiscal 2020, March 2020 2020 2019 2018 |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingent Liabilities | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18. We are involved in litigation arising in the ordinary course of business, none 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 continue to 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 April 2020 June 2020 17 one three may may may In March 2013, 1990s. August 2013, not may not April 2014 March 2017 May 2, 2018 June 15, 2018 three two January 15, 2021. In 2015, June 21, 2021. September 2020 |
Note 19 - Variable Interest Ent
Note 19 - Variable Interest Entities | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 19. The Company enters into land and lot option purchase contracts to procure land or lots for the construction of homes. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not not 810, may In compliance with ASC 810, not 810 October 31, 2020 2019 not We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at October 31, 2020 not |
Note 20 - Investments in Uncons
Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 20. 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 2018, one third 2019, first 2020, eight four 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. October 31, 2020 Land (Dollars in thousands) Homebuilding Development Total Assets: Cash and cash equivalents $ 120,107 $ 3,454 $ 123,561 Inventories 389,001 91 389,092 Other assets 27,062 488 27,550 Total assets $ 536,170 $ 4,033 $ 540,203 Liabilities and equity: Accounts payable and accrued liabilities $ 207,277 $ 2,152 $ 209,429 Notes payable 117,179 - 117,179 Total liabilities 324,456 2,152 326,608 Equity of: Hovnanian Enterprises, Inc. 102,908 1,340 104,248 Others 108,806 541 109,347 Total equity 211,714 1,881 213,595 Total liabilities and equity $ 536,170 $ 4,033 $ 540,203 Debt to capitalization ratio 36 % 0 % 35 % October 31, 2019 Land (Dollars in thousands) Homebuilding Development Total Assets: Cash and cash equivalents $ 108,520 $ 2,203 $ 110,723 Inventories 397,804 6,038 403,842 Other assets 24,896 233 25,129 Total assets $ 531,220 $ 8,474 $ 539,694 Liabilities and equity: Accounts payable and accrued liabilities $ 71,297 $ 592 $ 71,889 Notes payable 186,882 - 186,882 Total liabilities 258,179 592 258,771 Equity of: Hovnanian Enterprises, Inc. 120,891 4,747 125,638 Others 152,150 3,135 155,285 Total equity 273,041 7,882 280,923 Total liabilities and equity $ 531,220 $ 8,474 $ 539,694 Debt to capitalization ratio 41 % 0 % 40 % As of October 31, 2020 2019, October 31, 2020 2019, October 31, 2019, one October 31, 2020 not For The Year Ended October 31, 2020 Land (Dollars in thousands) Homebuilding Development Total Revenues $ 435,077 $ 13,024 $ 448,101 Cost of sales and expenses (420,977 ) (11,225 ) (432,202 ) Joint venture net income $ 14,100 $ 1,799 $ 15,899 Our share of net income $ 16,904 $ 17 $ 16,921 For The Year Ended October 31, 2019 Land (Dollars in thousands) Homebuilding Development Total Revenues $ 488,914 $ 8,704 $ 497,618 Cost of sales and expenses (456,563 ) (7,948 ) (464,511 ) Joint venture net income $ 32,351 $ 756 $ 33,107 Our share of net income $ 28,761 $ 378 $ 29,139 For The Year Ended October 31, 2018 Land (Dollars in thousands) Homebuilding Development Total Revenues $ 602,681 $ 6,418 $ 609,099 Cost of sales and expenses (577,106 ) (5,173 ) (582,279 ) Joint venture net income $ 25,575 $ 1,245 $ 26,820 Our share of net income $ 23,904 $ 623 $ 24,527 “Income (loss) from unconsolidated joint ventures” is reflected as a separate line in the accompanying 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 Consolidated Statements of Operations is due primarily to the reclassification of the intercompany portion of management fee income from certain unconsolidated joint ventures and the deferral of income for lots purchased by us from certain unconsolidated joint ventures. To compensate us for the administrative services we provide as the manager of certain unconsolidated joint ventures, we receive a management fee based on a percentage of the applicable unconsolidated joint venture’s revenues. These management fees, which totaled $16.0 million, $16.9 million and $21.1 million for the years ended October 31, 2020, 2019 2018, In determining whether or not Typically, our unconsolidated joint ventures obtain separate project specific mortgage financing. For some of our unconsolidated joint ventures, obtaining financing was challenging, therefore, some of our unconsolidated joint ventures are capitalized only with equity. The total debt to capitalization ratio of all our unconsolidated joint ventures was 35% as of October 31, 2020. 810 10 not not |
Note 21 - Fair Value of Financi
Note 21 - Fair Value of Financial Instruments | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 21. ASC 820, Level 1: Level 2: Level 3: Our financial instruments measured at fair value on a recurring basis are summarized below: Fair Value at Fair Value at Fair Value October 31, October 31, (In thousands) Hierarchy 2020 2019 Mortgage loans held for sale (1) Level 2 $ 104,378 $ 166,007 Forward contracts Level 2 (28 ) (64 ) Total $ 104,350 $ 165,943 Interest rate lock commitments Level 3 11 $ 42 Total $ 104,361 $ 165,985 ( 1 October 31, 2020 2019 We elected the fair value option for our loans held for sale in accordance with ASC 825, The Financial Services segment had a pipeline of loan applications in process of $890.8 million at October 31, 2020 October 31, 2020 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 October 31, 2020 November 19, 2020. 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 Consolidated Financial Statements in “Revenues: Financial services.” The fair values that are included in income are shown, by financial instrument and financial statement line item, below: Year Ended October 31, 2020 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Fair value included in net income all reflected in financial services revenues $ 3,928 $ 11 $ (28 ) Year Ended October 31, 2019 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Fair value included in net loss all reflected in financial services revenues $ 4,869 $ 42 $ (64 ) Year Ended October 31, 2018 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Fair value included in net income all reflected in financial services revenues $ 3,115 $ (28 ) $ 13 The Company's assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs during the fiscal years ended October 31, 2020 2019 Nonfinancial Assets Year Ended October 31, 2020 (In thousands) Fair Pre- Value Impairment Hierarchy Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 691 $ (276 ) $ 415 Land and land options held for future development or sale Level 3 $ 4,089 $ (1,741 ) $ 2,348 Year Ended October 31, 2019 (In thousands) Fair Pre- Value Impairment Hierarchy Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 9,670 $ (2,494 ) $ 7,176 Land and land options held for future development or sale Level 3 $ 7,801 $ (185 ) $ 7,616 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 October 31, 2020, 2019 2018 12 The fair value of our cash equivalents, restricted cash and cash equivalents and customer’s deposits approximates their carrying amount, based on Level 1 The fair value of each series of our Notes and Credit Facilities are listed below. Level 2 3 third Fair Value as of October 31, 2020 (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% July 15, 2022 $ - $ 107,878 $ - $ 107,878 10.5% July 15, 2024 - - 67,941 67,941 10.0% November 15, 2025 - - 132,246 132,246 7.75% February 15, 2026 - - 353,500 353,500 10.5% February 15, 2026 - - 274,558 274,558 11.25% February 15, 2026 - - 162,723 162,723 Senior Notes: 13.5% February 1, 2026 - 54,354 - 54,354 5.0% February 1, 2040 - 10,814 - 10,814 Senior Credit Facilities: Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 13,091 13,091 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 - - 64,465 64,465 Total fair value $ - $ 173,046 $ 1,068,524 $ 1,241,570 Fair Value as of October 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% July 15, 2022 $ - $ 189,430 $ - $ 189,430 10.5% July 15, 2024 - 166,999 - 166,999 7.75% February 15, 2026 - - 350,000 350,000 10.5% February 15, 2026 - - 282,322 282,322 11.25% February 15, 2026 - - 103,141 103,141 Senior Notes: 13.5% February 1, 2026 80,254 80,254 5.0% February 1, 2040 - - 31,993 31,993 Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 106,499 106,499 Total fair value $ - $ 356,429 $ 954,209 $ 1,310,638 The Senior Secured Revolving Credit Facility is not October 31, 2020 2019 |
Note 22 - Unaudited Summarized
Note 22 - Unaudited Summarized Consolidated Quarterly Information | 12 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 22. Summarized quarterly financial information for the years ended October 31, 2020 2019 Three Months Ended October 31, July 31, April 30, January 31, (In thousands, except per share data) 2020 2020 2020 2020 Revenues $ 683,358 $ 628,136 $ 538,351 $ 494,056 Expenses 641,449 619,269 539,209 509,660 Inventory impairment loss and land option write-offs 2,611 2,364 1,010 2,828 Gain (loss) on extinguishment of debt - 4,055 (174 ) 9,456 Income from unconsolidated joint ventures 3,146 5,658 6,221 1,540 Income (loss) before income taxes 42,444 16,216 4,179 (7,436 ) State and federal income tax provision 1,810 853 100 1,712 Net income (loss) $ 40,634 $ 15,363 $ 4,079 $ (9,148 ) Per share data: Basic: Net income (loss) per common share $ 5.97 $ 2.27 $ 0.63 $ (1.49 ) Weighted-average number of common shares outstanding 6,221 6,201 6,172 6,161 Assuming dilution: Net income (loss) per common share $ 5.54 $ 2.16 $ 0.60 $ (1.49 ) Weighted-average number of common shares outstanding 6,699 6,518 6,432 6,161 Three Months Ended October 31, July 31, April 30, January 31, (In thousands, except per share data) 2019 2019 2019 2019 Revenues $ 713,590 $ 482,041 $ 440,691 $ 380,594 Expenses 677,429 491,412 461,393 406,558 Inventory impairment loss and land option write-offs 2,687 1,435 1,462 704 Loss on extinguishment of debt (42,436 ) - - - Income from unconsolidated joint ventures 8,376 3,742 7,252 9,562 Loss before income taxes (586 ) (7,064 ) (14,912 ) (17,106 ) State and federal income tax provision 1,221 537 345 346 Net (loss) $ (1,807 ) $ (7,601 ) $ (15,257 ) $ (17,452 ) Per share data: Basic and assuming dilution: Net (loss) per common share $ (0.30 ) $ (1.27 ) $ (2.56 ) $ (2.93 ) Weighted-average number of common shares outstanding 5,982 5,971 5,962 5,958 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Revenue [Policy Text Block] | om Contracts with Customers,” revenue is recognized when title is conveyed to the buyer, adequate initial and continuing investments have been received and there is no Income Recognition from Mortgage Loans - We elected the fair value option for our mortgage loans held for sale in accordance with ASC 825, Substantially all of the mortgage loans originated are sold within a short period of time in the secondary mortgage market on a servicing released, nonrecourse basis, although the Company remains liable for certain limited representations, such as fraud, and warranties related to loan sales. Mortgage investors could seek to have us buy back loans or compensate them from losses incurred on mortgages we have sold based on claims that we breached our limited representations and warranties. We have established reserves for probable losses. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents 90 may, October 31, 2020 2019 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments not third |
Inventory, Policy [Policy Text Block] | Inventories We record inventories in our consolidated balance sheets at cost unless the inventory is determined to be impaired, in which case the inventory is written down to its fair value. Our inventories consist of the following three 1 2 3 not We decide to mothball (or stop development on) certain communities when we determine that the current performance does not 2020, not one one October 31, 2020 2019, We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a third 606 10 55 68, October 31, 2020 2019 not not We have land banking arrangements, whereby we sell our land parcels to the land banker 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 606 10 55 70, October 31, 2020 2019 not not The recoverability of inventories and other long-lived assets is assessed in accordance with the provisions of ASC 360 10, 360 10 We evaluate inventories of communities under development and held for future development for impairment when indicators of potential impairment are present. Indicators of impairment include, but are not The projected operating profits, losses or cash flows of each community can be significantly impacted by our estimates of the following: ● future base selling prices; ● future home sales incentives; ● future home construction and land development costs; and ● future sales absorption pace and cancellation rates. These estimates are dependent upon specific market conditions for each community. While we consider available information to determine what we believe to be our best estimates as of the end of a quarterly reporting period, these estimates are subject to change in future reporting periods as facts and circumstances change. Local market-specific conditions that may ● the intensity of competition within a market, including available home sales prices and home sales incentives offered by our competitors; ● the current sales absorption pace for both our communities and competitor communities; ● community-specific attributes, such as location, availability of lots in the market, desirability and uniqueness of our community, and the size and style of homes currently being offered; ● potential for alternative product offerings to respond to local market conditions; ● changes by management in the sales strategy of the community; ● current local market economic and demographic conditions and related trends and forecasts; and ● existing home inventory supplies, including foreclosures and short sales. These and other local market-specific conditions that may may may may may may one not may not If the undiscounted cash flows are more than the carrying value of the community, then the carrying amount is recoverable, and no third October 31, 2018 October 31, 2020 may From time to time, we write off deposits and approval, engineering and capitalized interest costs when we determine that it is no not not not Inventories held for sale are land parcels ready for sale in their current condition, where we have decided not October 31, 2020 October 31, 2019 third |
Post-development Completion Warranty Costs and Insurance Deductible Reserves, Policy [Policy Text Block] | Warranty Costs and Construction Defect Reserves 2020 2019 2020 2019 2020 2019 not third third not not 16 |
Inventory, Interest Capitalization Policy [Policy Text Block] | Interest Interest costs incurred, expensed and capitalized were: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Interest capitalized at beginning of year $ 71,264 $ 68,117 $ 71,051 Plus interest incurred(1) 176,457 165,906 161,048 Less cost of sales interest expensed 74,330 70,725 60,685 Less other interest expensed(2)(3) 103,801 90,056 103,297 Less interest contributed to unconsolidated joint venture(4) 4,580 1,978 - Interest capitalized at end of year(5) $ 65,010 $ 71,264 $ 68,117 ( 1 Data does not ( 2 Other interest expensed includes interest that does not not October 31, 2020, 2019 2018 not October 31, 2020, 2019 2018 ( 3 Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Other interest expensed $ 103,801 $ 90,056 $ 103,297 Interest paid by our mortgage and finance subsidiaries 2,165 2,536 2,478 (Increase) decrease in accrued interest (16,482 ) 16,515 6,241 Cash paid for interest, net of capitalized interest $ 89,484 $ 109,107 $ 112,016 ( 4 Represents capitalized interest which was included as part of the assets contributed to the joint ventures the Company entered into in December 2019 June 2019 October 31, 2020 2019, 20. no ( 5 Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Land under Option Arrangements, Policy [Policy Text Block] | Land Options - not 810 10 not not not not |
Equity Method Investments [Policy Text Block] | Unconsolidated Homebuilding and Land Development Joint Ventures - third not not 323 10, 2019 2020 2018. |
Deferred Charges, Policy [Policy Text Block] | Deferred Bond Issuance Costs - |
Debt, Policy [Policy Text Block] | Debt Issued At a Discount /Premium - |
Advertising Cost [Policy Text Block] | Advertising Costs October 31, 2020, 2019 2018 |
Income Tax, Policy [Policy Text Block] | Deferred Income Taxes - 740 10, 740 10 not” In evaluating the exposures associated with our various tax filing positions, we recognize tax liabilities in accordance with ASC 740 10, not may may |
Prepaid Expenses, Policy [Policy Text Block] | Prepaid Expenses - |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Doubtful Accounts October 31, 2020 2019 2020 2019 2019 2020 2019. |
Share-based Payment Arrangement [Policy Text Block] | Stock Options - 718 10, Compensation cost arising from nonvested stock granted to employees and from nonemployee stock awards is based on the fair value of the awards at the grant date recognized as expense using the straight-line method over the vesting period. |
Earnings Per Share, Policy [Policy Text Block] | Per Share Calculations - 2018 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 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In February 2016, No. 2016 02, 842 2016 02” 2016 02 12 2016 02 November 1, 2019, no 2016 02 November 1, 2019. 2016 02 no In August 2018, No. 2018 13, 820 2018 13” 2018 13 November 1, 2020. not In August 2018, No. 2018 15, 350 40 2018 15” 2018 15 2018 15 November 1, 2020. not In March 2020, 2020 04, 2020 04” 2020 04 March 12, 2020, may December 31, 2022. not |
Note 3 - Summary of Significa_2
Note 3 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block] | Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Interest capitalized at beginning of year $ 71,264 $ 68,117 $ 71,051 Plus interest incurred(1) 176,457 165,906 161,048 Less cost of sales interest expensed 74,330 70,725 60,685 Less other interest expensed(2)(3) 103,801 90,056 103,297 Less interest contributed to unconsolidated joint venture(4) 4,580 1,978 - Interest capitalized at end of year(5) $ 65,010 $ 71,264 $ 68,117 |
Cash Paid for Interest Net of Capitalized Interest [Table Text Block] | Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Other interest expensed $ 103,801 $ 90,056 $ 103,297 Interest paid by our mortgage and finance subsidiaries 2,165 2,536 2,478 (Increase) decrease in accrued interest (16,482 ) 16,515 6,241 Cash paid for interest, net of capitalized interest $ 89,484 $ 109,107 $ 112,016 |
Note 4 - Leases (Tables)
Note 4 - Leases (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Year Ended October 31, (In thousands) 2020 Operating lease cost $ 10,507 Cash payments on lease liabilities $ 9,257 (In thousands) At October 31, 2020 ROU assets $ 20,016 Lease liabilities $ 21,049 Weighted-average remaining lease term (in years) 3.5 Weighted-average discount rate (incremental borrowing rate) 9.6 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year ending October 31, (in thousands) 2021 $ 8,880 2022 7,506 2023 4,298 2024 1,673 2025 1,324 Thereafter 1,107 Total payments 24,788 Less: imputed interest (3,739 ) Present value of lease liabilities $ 21,049 |
Note 5 - Property, Plant and _2
Note 5 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | October 31, (In thousands) 2020 2019 Land and land improvements $ 1,639 $ 1,639 Buildings 9,497 9,155 Building improvements 13,281 11,552 Furniture 4,363 4,338 Equipment, including capitalized software 35,763 35,423 Total 64,543 62,107 Less accumulated depreciation 46,358 41,980 Total $ 18,185 $ 20,127 |
Note 7 - Mortgage Loans Held _2
Note 7 - Mortgage Loans Held for Sale (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Year Ended October 31, (In thousands) 2020 2019 Loan origination reserves, beginning of period $ 1,268 $ 2,563 Provisions for losses during the period 196 198 Adjustments to pre-existing provisions for losses from changes in estimates (6 ) (143 ) Payments/settlements - (1,350 ) Loan origination reserves, end of period $ 1,458 $ 1,268 |
Note 9 - Senior Notes and Cre_2
Note 9 - Senior Notes and Credit Facilities (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | October 31, October 31, (In thousands) 2020 2019 Senior Secured Notes: 10.0% July 15, 2022 $ 111,214 $ 218,994 10.5% July 15, 2024 69,683 211,391 10.0% November 15, 2025 158,502 - 7.75% February 15, 2026 350,000 350,000 10.5% February 15, 2026 282,322 282,322 11.25% February 15, 2026 162,269 103,141 Total Senior Secured Notes $ 1,133,990 $ 1,165,848 Senior Notes: 8.0% November 1, 2027 $ - $ - 13.5% February 1, 2026 90,590 90,590 5.0% February 1, 2040 90,120 90,120 Total Senior Notes $ 180,710 $ 180,710 Senior Unsecured Term Loan Credit Facility due February 1, 2027 $ 39,551 $ 202,547 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 $ 81,498 $ - Senior Secured Revolving Credit Facility (2) $ - $ - Subtotal notes payable $ 1,435,749 $ 1,549,105 Net (discounts) premiums $ 17,521 $ (49,145 ) Net debt issuance costs $ (22,160 ) $ (19,970 ) Total notes payable, net of discounts, premiums and debt issuance costs $ 1,431,110 $ 1,479,990 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Fiscal Year Ended October 31, (1) 2021 $ - 2022 111,214 2023 - 2024 69,683 2025 - Thereafter 1,254,852 Total $ 1,435,749 |
Note 10 - Operating and Repor_2
Note 10 - Operating and Reporting Segments (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | October 31, (In thousands) 2020 2019 Assets: Northeast $ 107,748 $ 163,342 Mid-Atlantic 271,867 264,894 Midwest 106,774 117,242 Southeast 248,506 281,654 Southwest 357,444 357,052 West 278,811 311,919 Total homebuilding 1,371,150 1,496,103 Financial services 140,607 199,275 Corporate and unallocated 315,585 186,046 Total assets $ 1,827,342 $ 1,881,424 October 31, (In thousands) 2020 2019 Investments in and advances to unconsolidated joint ventures: Northeast $ 14,646 $ 49,340 Mid-Atlantic 11,055 9,166 Midwest 498 4,382 Southeast 66,234 52,983 Southwest 9,965 10,019 West 64 (33 ) Total homebuilding 102,462 125,857 Corporate and unallocated 702 1,181 Total investments in and advances to unconsolidated joint ventures $ 103,164 $ 127,038 |
Operating Segments [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year Ended October 31, (In thousands) 2020 2019 2018 Revenues: Northeast $ 192,069 $ 124,372 $ 116,296 Mid-Atlantic 403,669 357,247 354,690 Midwest 225,718 204,461 196,599 Southeast 232,730 220,082 241,620 Southwest 744,197 629,344 638,282 West 472,889 425,516 384,627 Total homebuilding 2,271,272 1,961,022 1,932,114 Financial services 72,162 54,152 53,355 Corporate and unallocated 467 1,742 5,764 Total revenues $ 2,343,901 $ 2,016,916 $ 1,991,233 Income (loss) before income taxes: Northeast $ 30,371 $ 20,954 $ 20,869 Mid-Atlantic 34,570 14,327 18,757 Midwest (1,805 ) (649 ) 1,528 Southeast 1,355 (10,060 ) (9,914 ) Southwest 68,184 33,459 49,852 West 16,415 40,018 47,987 Total homebuilding 149,090 98,049 129,079 Financial services 32,102 17,627 18,227 Corporate and unallocated (1) (125,789 ) (155,344 ) (139,160 ) Income (loss) before income taxes $ 55,403 $ (39,668 ) $ 8,146 Year Ended October 31, (In thousands) 2020 2019 2018 Homebuilding interest expense: Northeast $ 13,636 $ 10,011 $ 11,811 Mid-Atlantic 16,076 18,563 15,051 Midwest 9,377 7,121 5,874 Southeast 17,005 18,798 14,934 Southwest 29,898 27,731 21,820 West 30,222 23,051 18,309 Total homebuilding 116,214 105,275 87,799 Corporate and unallocated 61,917 55,506 76,183 Financial services interest expense (1) (35 ) 334 104 Total interest expense, net $ 178,096 $ 161,115 $ 164,086 Year Ended October 31, (In thousands) 2020 2019 2018 Depreciation: Northeast $ 229 $ 188 $ 135 Mid-Atlantic 264 209 63 Midwest 1,112 1,097 1,106 Southeast 327 230 124 Southwest 699 331 70 West 801 326 45 Total homebuilding 3,432 2,381 1,543 Financial services 13 14 14 Corporate and unallocated 1,859 1,777 1,599 Total depreciation $ 5,304 $ 4,172 $ 3,156 Year Ended October 31, (In thousands) 2020 2019 2018 Net additions to operating properties and equipment: Northeast $ 43 $ 107 $ 142 Mid-Atlantic 165 168 318 Midwest 861 237 621 Southeast 102 221 701 Southwest 776 741 23 West 846 921 55 Total homebuilding 2,793 2,395 1,860 Financial services - - - Corporate and unallocated 587 1,610 3,333 Total net additions to operating properties and equipment $ 3,380 $ 4,005 $ 5,193 Year Ended October 31, (In thousands) 2020 2019 2018 Equity in earnings (losses) from unconsolidated joint ventures: Northeast $ 11,039 $ 19,242 $ 20,231 Mid-Atlantic (292 ) 3,404 799 Midwest (103 ) (432 ) (775 ) Southeast 820 1,310 (2,032 ) Southwest 5,111 7,951 5,165 West (10 ) (2,543 ) 645 Total equity in earnings from unconsolidated joint ventures $ 16,565 $ 28,932 $ 24,033 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Components of Income Tax Payable Receivable [Table Text Block] | Year Ended October 31, (In thousands) 2020 2019 State income taxes: Current $ 3,832 $ 2,301 Deferred - - Federal income taxes: Current - - Deferred - - Total $ 3,832 $ 2,301 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended October 31, (In thousands) 2020 2019 2018 Current income tax expense: Federal (1) $ - $ - $ - State (2) 4,475 2,449 3,626 Total current income tax expense: 4,475 2,449 3,626 Federal - - - State - - - Total deferred income tax expense: - - - Total $ 4,475 $ 2,449 $ 3,626 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Year Ended October 31, (In thousands) 2020 2019 Deferred tax assets: Inventory impairment loss $ 42,120 $ 47,000 Uniform capitalization of overhead 3,870 3,917 Warranty and legal reserves 4,848 4,404 Acquisition intangibles - 424 Compensation 9,554 8,477 Deferred Income 3,793 5,167 Interest Expense 3,930 6,616 Restricted stock bonus 1,644 1,553 Stock options 4,026 4,288 Provision for losses 16,566 16,820 Joint venture loss 3,020 4,392 Federal net operating losses 299,854 334,142 State net operating losses 181,050 184,740 Other 3,259 1,280 Total deferred tax assets 577,534 623,220 Total deferred tax liabilities - - Valuation allowance (577,534 ) (623,220 ) Net deferred income taxes $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended October 31, 2020 2019 2018 Computed “expected” tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 10.6 (5.0 ) 17.2 Permanent differences, net 53.2 (42.4 ) 74.0 Deferred tax asset valuation allowance impact (83.3 ) 20.8 (70.8 ) Tax contingencies (0.5 ) 0.5 1.0 Adjustments to prior years’ tax accruals 7.0 (1.0 ) 2.1 Effective tax rate 8.0 % (6.1 )% 44.5 % |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2020 2019 Unrecognized tax benefit—November 1, $ 0.9 $ 1.2 Gross increases—tax positions in current period - - Lapse of statute of limitations (0.2 ) (0.3 ) Unrecognized tax benefit—October 31, $ 0.7 $ 0.9 |
Note 12 - Reduction of Invent_2
Note 12 - Reduction of Inventory to Fair Value (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Inventory Impairment [Table Text Block] | (Dollars in millions) Year Ended October 31, 2020 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast - $ - $ - Mid-Atlantic - - - Midwest 2 2.0 4.8 Southeast - - - Southwest - - - West - - - Total 2 $ 2.0 $ 4.8 (Dollars in millions) Year Ended October 31, 2019 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast 2 $ 0.2 $ 7.8 Mid-Atlantic 1 0.3 1.7 Midwest 1 1.4 4.6 Southeast 1 0.7 2.2 Southwest 1 0.1 1.2 West - - - Total 6 $ 2.7 $ 17.5 (Dollars in millions) Year Ended October 31, 2018 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast 1 $ 0.4 $ 1.0 Mid-Atlantic - - - Midwest 1 0.1 0.5 Southeast 3 1.6 9.7 Southwest - - - West - - - Total 5 $ 2.1 $ 11.2 |
Write Offs and Lots Walked Away From [Table Text Block] | Year Ended October 31, (In millions) 2020 2019 2018 Northeast $ 1.5 $ 0.6 $ 0.6 Mid-Atlantic - 0.5 0.2 Midwest 3.5 0.9 0.1 Southeast 0.8 0.3 - Southwest 0.6 0.6 0.2 West 0.4 0.7 0.3 Total $ 6.8 $ 3.6 $ 1.4 |
Note 13 - Per Share Calculati_2
Note 13 - Per Share Calculation (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended October 31, (In thousands, except per share data) 2020 2019 2018 Numerator: Net earnings (loss) attributable to Hovnanian $ 50,928 $ (42,117 ) $ 4,520 Less: undistributed earnings allocated to nonvested shares (4,652 ) - (159 ) Numerator for basic earnings (loss) per share $ 46,276 $ (42,117 ) $ 4,361 Plus: undistributed earnings allocated to nonvested shares 4,652 - 159 Less: undistributed earnings reallocated to nonvested shares (4,652 ) - (159 ) Numerator for diluted earnings (loss) per share $ 46,276 $ (42,117 ) $ 4,361 Denominator: Denominator for basic earnings per share 6,189 5,968 5,941 Effect of dilutive securities: Share-based payments 395 - 131 Denominator for diluted earnings per share – weighted-average shares outstanding 6,584 5,968 6,072 Basic earnings (loss) per share $ 7.48 $ (7.06 ) $ 0.73 Diluted earnings (loss) per share $ 7.03 $ (7.06 ) $ 0.72 |
Note 15 - Stock Plans (Tables)
Note 15 - Stock Plans (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | October 31, Weighted-Average October 31, Weighted-Average October 31, Weighted-Average 2020 Exercise Price 2019 Exercise Price 2018 Exercise Price Options outstanding at beginning of period 331,481 $ 53.93 278,569 $ 73.76 274,423 $ 85.22 Granted - $ - 110,975 $ 9.44 37,825 $ 56.30 Exercised - $ - - $ - 1,210 $ 49.91 Forfeited 6,560 $ 26.24 2,038 $ 53.96 2,000 $ 64.25 Expired 35,530 $ 115.28 56,025 $ 64.41 30,469 $ 156.95 Options outstanding at end of period 289,391 $ 47.02 331,481 $ 53.93 278,569 $ 73.76 Options exercisable at end of period 145,553 147,019 191,748 |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Weighted- Average Weighted- Remaining Number Average Contractual Range of Exercise Prices Outstanding Exercise Price Life $7.85 – $38.50 108,150 $ 9.65 8.58 $38.75 – $58.13 96,995 $ 50.07 3.76 $61.00 – $90.38 57,300 $ 67.66 4.11 $118.25 – $157.00 26,946 $ 142.17 2.76 289,391 $ 47.02 5.54 Weighted- Average Weighted- Remaining Number Average Contractual Range of Exercise Prices Exercisable Exercise Price Life $7.85 – $38.50 850 $ 24.08 3.25 $38.75 – $58.13 82,557 $ 50.31 3.2 $61.00 – $90.38 35,200 $ 71.46 1.95 $118.25 – $157.00 26,946 $ 142.17 2.76 145,553 $ 72.28 2.81 |
Schedule of Nonvested Share Activity [Table Text Block] | October 31, Weighted-Average Grant Date October 31, Weighted-Average Grant Date October 31, Weighted-Average Grant Date 2020 Fair Value 2019 Fair Value 2018 Fair Value Nonvested Time-Based at beginning of period 231,210 $ 23.01 105,594 $ 61.77 96,091 $ 60.50 Granted 142,231 $ 19.48 164,050 $ 7.66 37,888 $ 54.95 Vested 62,309 $ 17.04 21,329 $ 45.52 22,821 $ 55.19 Forfeited 22,267 $ 57.81 17,106 $ 86.96 5,564 $ 20.87 Nonvested Time-Based at end of period 288,865 $ 19.88 231,210 $ 23.01 105,594 $ 61.77 October 31, Weighted-Average Grant Date October 31, Weighted-Average Grant Date October 31, Weighted-Average Grant Date 2020 Fair Value 2019 Fair Value 2018 Fair Value Nonvested Performance-Based at beginning of period 136,316 $ 44.22 101,407 $ 69.28 150,881 $ 50.26 Granted 183,825 $ 15.11 56,400 $ 10.10 47,277 $ 70.41 Vested 4,284 $ 57.22 8,655 $ 42.69 5,390 $ 72.52 Forfeited 21,385 $ 70.44 12,836 $ 93.31 91,361 $ 38.27 Nonvested Performance-Based at end of period 294,472 $ 24.64 136,316 $ 44.22 101,407 $ 69.28 |
Note 16 - Warranty Costs (Table
Note 16 - Warranty Costs (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Year Ended October 31, (In thousands) 2020 2019 Balance, beginning of period $ 89,371 $ 95,064 Additions – Selling, general and administrative 9,587 8,408 Additions – Cost of sales 10,273 6,260 Charges incurred during the period (20,163 ) (18,757 ) Changes to pre-existing reserves (2,651 ) (1,604 ) Balance, end of period $ 86,417 $ 89,371 |
Note 20 - Investments in Unco_2
Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | October 31, 2020 Land (Dollars in thousands) Homebuilding Development Total Assets: Cash and cash equivalents $ 120,107 $ 3,454 $ 123,561 Inventories 389,001 91 389,092 Other assets 27,062 488 27,550 Total assets $ 536,170 $ 4,033 $ 540,203 Liabilities and equity: Accounts payable and accrued liabilities $ 207,277 $ 2,152 $ 209,429 Notes payable 117,179 - 117,179 Total liabilities 324,456 2,152 326,608 Equity of: Hovnanian Enterprises, Inc. 102,908 1,340 104,248 Others 108,806 541 109,347 Total equity 211,714 1,881 213,595 Total liabilities and equity $ 536,170 $ 4,033 $ 540,203 Debt to capitalization ratio 36 % 0 % 35 % October 31, 2019 Land (Dollars in thousands) Homebuilding Development Total Assets: Cash and cash equivalents $ 108,520 $ 2,203 $ 110,723 Inventories 397,804 6,038 403,842 Other assets 24,896 233 25,129 Total assets $ 531,220 $ 8,474 $ 539,694 Liabilities and equity: Accounts payable and accrued liabilities $ 71,297 $ 592 $ 71,889 Notes payable 186,882 - 186,882 Total liabilities 258,179 592 258,771 Equity of: Hovnanian Enterprises, Inc. 120,891 4,747 125,638 Others 152,150 3,135 155,285 Total equity 273,041 7,882 280,923 Total liabilities and equity $ 531,220 $ 8,474 $ 539,694 Debt to capitalization ratio 41 % 0 % 40 % For The Year Ended October 31, 2020 Land (Dollars in thousands) Homebuilding Development Total Revenues $ 435,077 $ 13,024 $ 448,101 Cost of sales and expenses (420,977 ) (11,225 ) (432,202 ) Joint venture net income $ 14,100 $ 1,799 $ 15,899 Our share of net income $ 16,904 $ 17 $ 16,921 For The Year Ended October 31, 2019 Land (Dollars in thousands) Homebuilding Development Total Revenues $ 488,914 $ 8,704 $ 497,618 Cost of sales and expenses (456,563 ) (7,948 ) (464,511 ) Joint venture net income $ 32,351 $ 756 $ 33,107 Our share of net income $ 28,761 $ 378 $ 29,139 For The Year Ended October 31, 2018 Land (Dollars in thousands) Homebuilding Development Total Revenues $ 602,681 $ 6,418 $ 609,099 Cost of sales and expenses (577,106 ) (5,173 ) (582,279 ) Joint venture net income $ 25,575 $ 1,245 $ 26,820 Our share of net income $ 23,904 $ 623 $ 24,527 |
Note 21 - Fair Value of Finan_2
Note 21 - Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value at Fair Value at Fair Value October 31, October 31, (In thousands) Hierarchy 2020 2019 Mortgage loans held for sale (1) Level 2 $ 104,378 $ 166,007 Forward contracts Level 2 (28 ) (64 ) Total $ 104,350 $ 165,943 Interest rate lock commitments Level 3 11 $ 42 Total $ 104,361 $ 165,985 |
Fair Value Option, Disclosures [Table Text Block] | Year Ended October 31, 2020 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Fair value included in net income all reflected in financial services revenues $ 3,928 $ 11 $ (28 ) Year Ended October 31, 2019 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Fair value included in net loss all reflected in financial services revenues $ 4,869 $ 42 $ (64 ) Year Ended October 31, 2018 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Fair value included in net income all reflected in financial services revenues $ 3,115 $ (28 ) $ 13 |
Fair Value Measurements, Nonrecurring [Table Text Block] | Year Ended October 31, 2020 (In thousands) Fair Pre- Value Impairment Hierarchy Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 691 $ (276 ) $ 415 Land and land options held for future development or sale Level 3 $ 4,089 $ (1,741 ) $ 2,348 Year Ended October 31, 2019 (In thousands) Fair Pre- Value Impairment Hierarchy Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 9,670 $ (2,494 ) $ 7,176 Land and land options held for future development or sale Level 3 $ 7,801 $ (185 ) $ 7,616 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis 2 [Table Text Block] | (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% July 15, 2022 $ - $ 107,878 $ - $ 107,878 10.5% July 15, 2024 - - 67,941 67,941 10.0% November 15, 2025 - - 132,246 132,246 7.75% February 15, 2026 - - 353,500 353,500 10.5% February 15, 2026 - - 274,558 274,558 11.25% February 15, 2026 - - 162,723 162,723 Senior Notes: 13.5% February 1, 2026 - 54,354 - 54,354 5.0% February 1, 2040 - 10,814 - 10,814 Senior Credit Facilities: Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 13,091 13,091 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 - - 64,465 64,465 Total fair value $ - $ 173,046 $ 1,068,524 $ 1,241,570 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% July 15, 2022 $ - $ 189,430 $ - $ 189,430 10.5% July 15, 2024 - 166,999 - 166,999 7.75% February 15, 2026 - - 350,000 350,000 10.5% February 15, 2026 - - 282,322 282,322 11.25% February 15, 2026 - - 103,141 103,141 Senior Notes: 13.5% February 1, 2026 80,254 80,254 5.0% February 1, 2040 - - 31,993 31,993 Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 106,499 106,499 Total fair value $ - $ 356,429 $ 954,209 $ 1,310,638 |
Note 22 - Unaudited Summarize_2
Note 22 - Unaudited Summarized Consolidated Quarterly Information (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Three Months Ended October 31, July 31, April 30, January 31, (In thousands, except per share data) 2020 2020 2020 2020 Revenues $ 683,358 $ 628,136 $ 538,351 $ 494,056 Expenses 641,449 619,269 539,209 509,660 Inventory impairment loss and land option write-offs 2,611 2,364 1,010 2,828 Gain (loss) on extinguishment of debt - 4,055 (174 ) 9,456 Income from unconsolidated joint ventures 3,146 5,658 6,221 1,540 Income (loss) before income taxes 42,444 16,216 4,179 (7,436 ) State and federal income tax provision 1,810 853 100 1,712 Net income (loss) $ 40,634 $ 15,363 $ 4,079 $ (9,148 ) Per share data: Basic: Net income (loss) per common share $ 5.97 $ 2.27 $ 0.63 $ (1.49 ) Weighted-average number of common shares outstanding 6,221 6,201 6,172 6,161 Assuming dilution: Net income (loss) per common share $ 5.54 $ 2.16 $ 0.60 $ (1.49 ) Weighted-average number of common shares outstanding 6,699 6,518 6,432 6,161 Three Months Ended October 31, July 31, April 30, January 31, (In thousands, except per share data) 2019 2019 2019 2019 Revenues $ 713,590 $ 482,041 $ 440,691 $ 380,594 Expenses 677,429 491,412 461,393 406,558 Inventory impairment loss and land option write-offs 2,687 1,435 1,462 704 Loss on extinguishment of debt (42,436 ) - - - Income from unconsolidated joint ventures 8,376 3,742 7,252 9,562 Loss before income taxes (586 ) (7,064 ) (14,912 ) (17,106 ) State and federal income tax provision 1,221 537 345 346 Net (loss) $ (1,807 ) $ (7,601 ) $ (15,257 ) $ (17,452 ) Per share data: Basic and assuming dilution: Net (loss) per common share $ (0.30 ) $ (1.27 ) $ (2.56 ) $ (2.93 ) Weighted-average number of common shares outstanding 5,982 5,971 5,962 5,958 |
Supplemental Disclosure of No_2
Supplemental Disclosure of Noncash Investing and Financing Activities (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||||||||||
Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2020 | Mar. 25, 2020 | Jan. 31, 2020 | Dec. 10, 2019 | Nov. 01, 2019 | Oct. 31, 2019 | Jan. 15, 2019 | May 29, 2018 | Feb. 01, 2018 | |
Fair Value of Assets Acquired | $ 13 | ||||||||||
Accounting Standards Update 2016-02 [Member] | |||||||||||
Operating Lease, Right-of-Use Asset | $ 23.3 | $ 23.3 | |||||||||
Operating Lease, Liability, Total | $ 24.4 | $ 24.4 | |||||||||
The 8.0% Senior Notes Due 2019 [Member] | |||||||||||
Debt Conversion, Original Debt, Interest Rate of Debt | 8.00% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
Debt Instrument, Face Amount | $ 170.2 | ||||||||||
The 13.5% Senior Notes Due 2026 [Member] | |||||||||||
Debt Conversion, Original Debt, Interest Rate of Debt | 13.50% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||||||||
Debt Instrument, Face Amount | $ 90.6 | ||||||||||
The 5.0% Senior Notes due 2040 [Member] | |||||||||||
Debt Conversion, Original Debt, Interest Rate of Debt | 5.00% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||
Debt Instrument, Face Amount | $ 90.1 | ||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||||
Debt Instrument Exchanged, Face Amount | $ 59.1 | $ 23.2 | $ 23.2 | ||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | 10.50% | 10.50% | 10.50% | ||||||
Debt Instrument, Face Amount | $ 25 | ||||||||||
Debt Instrument Exchanged, Face Amount | $ 141.7 | $ 141.7 | |||||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | |||||||||
Debt Instrument, Face Amount | $ 350 | ||||||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | |||||||||
Debt Instrument, Exchange, Amount Issued | $ 59.1 | ||||||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | |||||||||
Debt Instrument Exchanged, Face Amount | $ 103.1 | ||||||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |||||||
Debt Instrument, Face Amount | $ 158.5 | $ 158.5 | |||||||||
Senior Unsecured Term Loan Credit Facility [Member] | |||||||||||
Debt Instrument Exchanged, Face Amount | 163 | 163 | |||||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | |||||||||||
Debt Instrument, Face Amount | $ 81.5 | $ 81.5 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) | Mar. 29, 2019$ / shares | Mar. 19, 2019 | Oct. 31, 2020$ / shares | Oct. 31, 2019$ / shares |
Common Class A [Member] | ||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Class B [Member] | ||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | 25 | ||
Reverse Stock Split [Member] | Common Class A [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | |||
Reverse Stock Split [Member] | Common Class B [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | |||
Consolidated Joint Venture [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 99.00% | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1.00% |
Note 2 - Business (Details Text
Note 2 - Business (Details Textual) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Number of Communities | 116 | ||
Homebuilding [Member] | |||
Number of Reportable Segments | 6 | ||
Homebuilding [Member] | Segment Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Concentration Risk, Percentage | 97.00% | 97.00% | 97.00% |
Note 3 - Summary of Significa_3
Note 3 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | |||||
Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jan. 31, 2020USD ($) | Nov. 01, 2019USD ($) | ||
Cash Equivalents, at Carrying Value, Total | $ 15,500 | $ 143,100 | ||||
Number of Communities Mothballed | 12 | 13 | ||||
Inventory Real Estate Mothballed Communities | $ 11,400 | $ 13,800 | ||||
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges | 122,200 | 138,100 | ||||
Inventory, Land Held-for-sale | 2,000 | 0 | ||||
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 | 20,000 | ||||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | 103,801 | 90,056 | $ 103,297 | ||
Equity Method Investment, Other than Temporary Impairment | 0 | |||||
Advertising Expense | 12,900 | 17,100 | $ 16,400 | |||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 12,000 | 12,200 | ||||
Accounts Receivable, Allowance for Credit Loss, Recovery | 200 | 500 | ||||
Accounts Receivable, Credit Loss Expense (Reversal) | 1,300 | |||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
Operating Lease, Right-of-Use Asset | $ 23,300 | $ 23,300 | ||||
Operating Lease, Liability, Total | $ 24,400 | $ 24,400 | ||||
Senior Exchangeable Note Units [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Joint Venture Investments [Member] | ||||||
Real Estate Inventory Expense Not Eligible for Capitalization | 0 | $ 0 | ||||
Equity Method Investment, Other than Temporary Impairment | 900 | |||||
Qualifying Assets Not Exceeding Debt [Member] | ||||||
Real Estate Inventory Expense Not Eligible for Capitalization | 61,900 | 56,900 | 76,200 | |||
Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member] | ||||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 41,900 | 33,200 | $ 27,100 | |||
Maximum [Member] | ||||||
Joint Venture Voting Interest Percentage | 50.00% | |||||
Measurement Input, Discount Rate [Member] | Minimum [Member] | ||||||
Community, Measurement Input | 0.168 | |||||
Measurement Input, Discount Rate [Member] | Maximum [Member] | ||||||
Community, Measurement Input | 0.198 | |||||
Homebuilding [Member] | ||||||
Number of Communities Mothballed During the Period | 0 | |||||
Number of Mothballed Communities Reactivated | 1 | |||||
Number of Mothballed Communities Partially Reactivated | 1 | |||||
Liabilities from Inventory Real Estate Not Owned | $ 131,204 | 141,033 | ||||
Homebuilding [Member] | Model Sale Leaseback Financing Arrangements [Member] | ||||||
Inventory Real Estate, Other Options | 48,800 | 54,200 | ||||
Liabilities from Inventory Real Estate Not Owned | 47,200 | 51,200 | ||||
Homebuilding [Member] | Land Banking Arrangement [Member] | ||||||
Inventory Real Estate, Other Options | 133,400 | 136,100 | ||||
Liabilities from Inventory Real Estate Not Owned | $ 84,000 | $ 89,800 | ||||
[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: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Other interest expensed $ 103,801 $ 90,056 $ 103,297 Interest paid by our mortgage and finance subsidiaries 2,165 2,536 2,478 (Increase) decrease in accrued interest (16,482) 16,515 6,241 Cash paid for interest, net of capitalized interest $ 89,484 $ 109,107 $ 112,016 | |||||
[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 $61.9 million, $56.9 million and $76.2 million for the years ended October 31, 2020, 2019 and 2018, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $41.9 million, $33.2 million and $27.1 million for the years ended October 31, 2020, 2019 and 2018, respectively. |
Note 3 - Summary of Significa_4
Note 3 - Summary of Significant Accounting Policies - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | ||||
Interest capitalized at beginning of year | $ 71,264 | [1] | $ 68,117 | [1] | $ 71,051 | |
Plus interest incurred(1) | [2] | 176,457 | 165,906 | 161,048 | ||
Less cost of sales interest expensed | 74,330 | 70,725 | 60,685 | |||
Less other interest expensed(2)(3) | [3],[4] | 103,801 | 90,056 | 103,297 | ||
Less interest contributed to unconsolidated joint venture(4) | [5] | 4,580 | 1,978 | 0 | ||
Interest capitalized at end of year(5) | [1] | $ 65,010 | $ 71,264 | $ 68,117 | ||
[1] | Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. | |||||
[2] | Data does not include interest incurred by our mortgage and finance subsidiaries. | |||||
[3] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Other interest expensed $ 103,801 $ 90,056 $ 103,297 Interest paid by our mortgage and finance subsidiaries 2,165 2,536 2,478 (Increase) decrease in accrued interest (16,482) 16,515 6,241 Cash paid for interest, net of capitalized interest $ 89,484 $ 109,107 $ 112,016 | |||||
[4] | 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 $61.9 million, $56.9 million and $76.2 million for the years ended October 31, 2020, 2019 and 2018, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $41.9 million, $33.2 million and $27.1 million for the years ended October 31, 2020, 2019 and 2018, respectively. | |||||
[5] | Represents capitalized interest which was included as part of the assets contributed to the joint ventures the Company entered into in December 2019 and June 2019 during the years ended October 31, 2020 and 2019, respectively, as discussed in Note 20. There was no impact to the Consolidated Statement of Operations as a result of these transactions. |
Note 3 - Summary of Significa_5
Note 3 - Summary of Significant Accounting Policies - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Other interest expensed | [1],[2] | $ 103,801 | $ 90,056 | $ 103,297 |
Interest paid by our mortgage and finance subsidiaries | 2,165 | 2,536 | 2,478 | |
(Increase) decrease in accrued interest | (16,482) | 16,515 | 6,241 | |
Cash paid for interest, net of capitalized interest | $ 89,484 | $ 109,107 | $ 112,016 | |
[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: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Other interest expensed $ 103,801 $ 90,056 $ 103,297 Interest paid by our mortgage and finance subsidiaries 2,165 2,536 2,478 (Increase) decrease in accrued interest (16,482) 16,515 6,241 Cash paid for interest, net of capitalized interest $ 89,484 $ 109,107 $ 112,016 | |||
[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 $61.9 million, $56.9 million and $76.2 million for the years ended October 31, 2020, 2019 and 2018, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $41.9 million, $33.2 million and $27.1 million for the years ended October 31, 2020, 2019 and 2018, respectively. |
Note 4 - Leases (Details Textua
Note 4 - Leases (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Increase (Decrease) in Operating Lease, Right-of-Use Asset | $ 2.8 | ||
Increase (Decrease) in Operating Lease, Liability | $ 2.8 | ||
Operating Leases, Rent Expense, Total | $ 14.8 | $ 14.4 | |
Minimum [Member] | Office Leases [Member] | |||
Lessee, Operating Lease, Term of Contract (Year) | 3 years | ||
Maximum [Member] | Office Leases [Member] | |||
Lessee, Operating Lease, Term of Contract (Year) | 5 years |
Note 4 - Leases - Lease Cost (D
Note 4 - Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Operating lease cost | $ 10,507 |
Cash payments on lease liabilities | $ 9,257 |
Weighted-average remaining lease term (Year) | 3 years 6 months |
Weighted-average discount rate (incremental borrowing rate) | 9.60% |
Prepaid Expenses and Other Current Assets [Member] | |
ROU assets | $ 20,016 |
Accounts Payable and Accrued Liabilities [Member] | |
Lease liabilities | $ 21,049 |
Note 4 - Leases - Maturities of
Note 4 - Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Oct. 31, 2020USD ($) |
2021 | $ 8,880 |
2022 | 7,506 |
2023 | 4,298 |
2024 | 1,673 |
2025 | 1,324 |
Thereafter | 1,107 |
Total payments | 24,788 |
Less: imputed interest | (3,739) |
Accounts Payable and Accrued Liabilities [Member] | |
Operating Lease, Liability, Total | $ 21,049 |
Note 5 - Property, Plant and _3
Note 5 - Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Property, plant and equipment, gross | $ 64,543 | $ 62,107 |
Less accumulated depreciation | 46,358 | 41,980 |
Total | 18,185 | 20,127 |
Land and Land Improvements [Member] | ||
Property, plant and equipment, gross | 1,639 | 1,639 |
Building [Member] | ||
Property, plant and equipment, gross | 9,497 | 9,155 |
Building Improvements [Member] | ||
Property, plant and equipment, gross | 13,281 | 11,552 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 4,363 | 4,338 |
Equipment, Including Capitalized Software [Member] | ||
Property, plant and equipment, gross | $ 35,763 | $ 35,423 |
Note 6 - Restricted Cash and _2
Note 6 - Restricted Cash and Deposits (Details Textual) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Mortgage Warehouse Lines of Credit [Member] | |||
Restricted Cash and Cash Equivalents, Total | $ 2,000 | $ 2,000 | |
Homebuilding [Member] | |||
Restricted Cash and Cash Equivalents, Total | 14,731 | 20,905 | $ 12,808 |
Financial Services [Member] | |||
Restricted Cash and Cash Equivalents, Total | 27,386 | 24,807 | $ 25,365 |
Financial Services [Member] | Customer Deposits [Member] | |||
Restricted Cash and Cash Equivalents, Total | 25,400 | 22,800 | |
Financial Services [Member] | Other Assets [Member] | |||
Restricted Cash and Cash Equivalents, Total | $ 27,400 | $ 24,800 |
Note 7 - Mortgage Loans Held _3
Note 7 - Mortgage Loans Held for Sale (Details Textual) $ in Millions | Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) |
Loans Pledged as Collateral | $ 87.9 | $ 143.2 |
Number of Loans Reserved For | 15 | 20 |
Note 7 - Mortgage Loans Held _4
Note 7 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Loan origination reserves, beginning of period | $ 1,268 | $ 2,563 |
Provisions for losses during the period | 196 | 198 |
Adjustments to pre-existing provisions for losses from changes in estimates | (6) | (143) |
Payments/settlements | 0 | (1,350) |
Loan origination reserves, end of period | $ 1,458 | $ 1,268 |
Note 8 - Mortgages (Details Tex
Note 8 - Mortgages (Details Textual) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
JP Morgan Chase Bank [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |
Warehouse Agreement Borrowings, Total | $ 23,500 | $ 47,100 |
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument Variable Rate Basis Adjusted London Interbank Offered Rate LIBOR | 0.14% | |
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Customers Bank [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |
Warehouse Agreement Borrowings, Total | $ 31,100 | 47,600 |
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | |
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 4.75% | |
Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | Homebuilding [Member] | ||
Secured Debt, Total | $ 135,122 | 203,585 |
Debt Instrument, Collateral Amount | $ 368,100 | $ 410,200 |
Debt, Weighted Average Interest Rate | 6.40% | 8.30% |
Comerica Master Repurchase Agreement [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000 | |
Warehouse Agreement Borrowings, Total | 32,600 | $ 45,500 |
Line of Credit Facility, Maximum Borrowing Capacity Reversion After Initial Period | $ 50,000 | |
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument Variable Rate Basis Floor Rate | 0.25% | |
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.875% | |
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% |
Note 9 - Senior Notes and Cre_3
Note 9 - Senior Notes and Credit Facilities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Dec. 10, 2019 | Jan. 15, 2019 | May 29, 2018 | Feb. 01, 2018 | Dec. 01, 2017 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Mar. 25, 2020 | Jan. 29, 2018 | Dec. 28, 2017 | |||
Debt Covenant Fixed Charge Coverage Ratio Minimum | 2 | 2 | |||||||||||||||||||||
Secured Debt Leverage Ratio | 4 | 4 | |||||||||||||||||||||
Long-term Debt, Gross | $ 1,435,749 | [1] | $ 1,549,105 | $ 1,435,749 | [1] | $ 1,549,105 | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | 0 | $ 4,055 | $ (174) | $ 9,456 | (42,436) | $ 0 | $ 0 | $ 0 | 13,337 | (42,436) | $ (7,536) | ||||||||||||
Senior Secured Notes [Member] | |||||||||||||||||||||||
Long-term Debt, Gross | $ 1,133,990 | 1,165,848 | 1,133,990 | 1,165,848 | |||||||||||||||||||
Proceeds from Secured Notes Payable | $ 0 | 578,231 | 0 | ||||||||||||||||||||
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | |||||||||||||||||||||
Senior Exchangeable Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||||||||||||||
Repayments of Senior Debt, Total | $ 53,900 | ||||||||||||||||||||||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||||||||||||||||
Long-term Debt, Gross | $ 180,710 | $ 180,710 | $ 180,710 | $ 180,710 | |||||||||||||||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Cash and Cash Equivalents Collateral [Member] | |||||||||||||||||||||||
Debt Instrument, Collateral Amount | 258,900 | 258,900 | |||||||||||||||||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Restricted Cash [Member] | |||||||||||||||||||||||
Debt Instrument, Collateral Amount | 11,600 | 11,600 | |||||||||||||||||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Real Property [Member] | |||||||||||||||||||||||
Debt Instrument, Collateral Amount | 435,500 | 435,500 | |||||||||||||||||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Equity Interests in Joint Venture Holding Companies Collateral [Member] | |||||||||||||||||||||||
Debt Instrument, Collateral Amount | 185,500 | $ 185,500 | |||||||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | ||||||||||||||||||||||
GSO [Member] | Unsecured Senior Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 132,500 | $ 132,500 | |||||||||||||||||||||
GSO [Member] | Delayed Draw Term Loans [Member] | |||||||||||||||||||||||
Debt Agreement Maximum Borrowing Capacity | 80,000 | ||||||||||||||||||||||
Senior Secured Revolving Credit Facility [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 125,000 | $ 125,000 | $ 125,000 | $ 125,000 | |||||||||||||||||||
Long-term Line of Credit, Total | 0 | 0 | 0 | 0 | |||||||||||||||||||
Revolving Credit Facility [Member] | GSO [Member] | |||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 125,000 | 125,000 | $ 125,000 | $ 125,000 | |||||||||||||||||||
Long-term Line of Credit, Total | 0 | 0 | |||||||||||||||||||||
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | |||||||||||||||||||||||
Letters of Credit Outstanding, Amount | 11,300 | 19,200 | 11,300 | 19,200 | |||||||||||||||||||
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | Restricted Cash [Member] | |||||||||||||||||||||||
Debt Instrument, Collateral Amount | $ 11,600 | $ 19,900 | $ 11,600 | $ 19,900 | |||||||||||||||||||
The 8.0% Senior Notes Due 2027 [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 26,000 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||||||||||||||
The 8.0% Senior Notes Due 2027 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [2] | 8.00% | 8.00% | 8.00% | 8.00% | ||||||||||||||||||
Long-term Debt, Gross | [2] | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period One [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 110.00% | ||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 105.00% | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 158,500 | $ 158,500 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |||||||||||||||||
Long-term Debt, Gross | $ 158,502 | $ 0 | $ 158,502 | $ 0 | |||||||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||||||||||
Debt Instrument Exchanged, Face Amount | $ 23,200 | $ 23,200 | $ 59,100 | ||||||||||||||||||||
Long-term Debt, Gross | $ 111,214 | $ 218,994 | $ 111,214 | $ 218,994 | |||||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | 4,100 | ||||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | 25,500 | ||||||||||||||||||||||
Repayments of Secured Debt | $ 21,400 | ||||||||||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | ||||||||||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 25,000 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | 10.50% | 10.50% | 10.50% | 10.50% | 10.50% | ||||||||||||||||
Debt Instrument Exchanged, Face Amount | $ 141,700 | $ 141,700 | |||||||||||||||||||||
Long-term Debt, Gross | $ 69,683 | $ 211,391 | $ 69,683 | $ 211,391 | |||||||||||||||||||
Proceeds from Secured Notes Payable | $ 21,300 | ||||||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 105.25% | ||||||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.625% | ||||||||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
Senior Unsecured Term Loan Credit Facility [Member] | |||||||||||||||||||||||
Debt Instrument Exchanged, Face Amount | 163,000 | 163,000 | |||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | (4,300) | ||||||||||||||||||||||
Debt Instrument, Additional Borrowings | $ 70,000 | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 81,500 | $ 81,500 | |||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 105.00% | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | ||||||||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
Second Lien Notes [Member] | |||||||||||||||||||||||
Long-term Debt, Gross | $ 164,900 | ||||||||||||||||||||||
Secured Term Loan Facility [Member] | |||||||||||||||||||||||
Long-term Debt, Gross | $ 148,800 | ||||||||||||||||||||||
Second Lien Notes and Unsecured Term Loan Credit Facility [Member] | |||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 9,200 | ||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Per Share, Excluding Taxes (in dollars per share) | $ 1.40 | ||||||||||||||||||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | 11.25% | ||||||||||||||||||||
Long-term Debt, Gross | $ 103,100 | $ 103,100 | $ 162,300 | ||||||||||||||||||||
Debt Instrument, Exchange, Amount Issued | 59,100 | ||||||||||||||||||||||
Debt Instrument, Maximum Secured Amount | $ 162,300 | ||||||||||||||||||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | 11.25% | 11.25% | |||||||||||||||||||
Debt Instrument Exchanged, Face Amount | $ 103,100 | $ 103,100 | |||||||||||||||||||||
Long-term Debt, Gross | $ 162,269 | 103,141 | $ 162,269 | 103,141 | |||||||||||||||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 350,000 | $ 350,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | 7.75% | 7.75% | |||||||||||||||||||
Long-term Debt, Gross | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | |||||||||||||||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||||||||||||||||||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 107.75% | ||||||||||||||||||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 103.875% | ||||||||||||||||||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 101.937% | ||||||||||||||||||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 282,300 | $ 282,300 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | 10.50% | 10.50% | |||||||||||||||||||
Long-term Debt, Gross | $ 282,322 | $ 282,322 | $ 282,322 | $ 282,322 | |||||||||||||||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||||||||||||||||||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 110.50% | ||||||||||||||||||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 105.25% | ||||||||||||||||||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.625% | ||||||||||||||||||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 10.0% 2022 Senior Secured Notes Exchanged for 1.125 Lien Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument Exchanged, Face Amount | 221,000 | 221,000 | |||||||||||||||||||||
The 10.5% 2024 Senior Secured Notes Exchanged for 1.125 Lien Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument Exchanged, Face Amount | 114,000 | 114,000 | |||||||||||||||||||||
The 10.5% 2024 Notes Exchanged for 11.25% Senior Secured 1.5 Lien Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument Exchanged, Face Amount | $ 99,600 | $ 99,600 | |||||||||||||||||||||
The 9.50% 2020 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | 9.50% | |||||||||||||||||||||
The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | |||||||||||||||||||||
9.5 % Senior Secured Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||||||||||||||||||
The 11.0% 2017 Amortizing Note [Member] | Senior Amortizing Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | ||||||||||||||||||||||
Repayments of Senior Debt, Total | $ 2,100 | ||||||||||||||||||||||
The 8.0% Senior Notes Due 2019 [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 170,200 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (900) | ||||||||||||||||||||||
Repayments of Long-term Debt, Total | $ 65,700 | ||||||||||||||||||||||
Debt Instrument, Aggregate Principal Outstanding, Percentage | 72.14% | ||||||||||||||||||||||
The 8.0% Senior Notes Due 2019 [Member] | K. Hovnanian at Sunrise Trail III, LLC [Member] | |||||||||||||||||||||||
Repayments of Senior Debt, Total | $ 26,500 | ||||||||||||||||||||||
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 | 8.00% | ||||||||||||||||||||||
The 7.0% 2019 Notes [Member] | Senior Secured Notes [Member] | |||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (500) | ||||||||||||||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||||||||||||||||||||
The 5.0% Notes Due 2027 [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||||||||||||||
The 13.5% Senior Notes Due 2026 [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 90,600 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||||||||||||||||||||
The 13.5% Senior Notes Due 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 13.5% Senior Notes Due 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | 13.50% | 13.50% | 13.50% | |||||||||||||||||||
Long-term Debt, Gross | $ 90,590 | $ 90,590 | $ 90,590 | $ 90,590 | |||||||||||||||||||
The 5.0% Senior Notes due 2040 [Member] | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 90,100 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||||||||||||||
The 5.0% Senior Notes due 2040 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | ||||||||||||||||||||||
The 5.0% Senior Notes due 2040 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||||
The 5.0% Senior Notes due 2040 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | 5.00% | |||||||||||||||||||
Long-term Debt, Gross | $ 90,120 | $ 90,120 | $ 90,120 | $ 90,120 | |||||||||||||||||||
The Purchased 8% Notes [Member] | K. Hovnanian at Sunrise Trail III, LLC [Member] | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 26,000 | ||||||||||||||||||||||
[1] | Does not include our $125.0 million Senior Secured Revolving Credit Facility under which there were no borrowings outstanding as of October 31, 2020. | ||||||||||||||||||||||
[2] | $26.0 million of 8.0% Senior Notes due 2027 are owned by a wholly-owned consolidated subsidiary of HEI. Therefore, in accordance with GAAP, such notes are not reflected on the Consolidated Balance Sheets of HEI. On November 1, 2019, the maturity of the 8.0% Senior Notes was extended to November 1, 2027. |
Note 9 - Senior Notes and Cre_4
Note 9 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Mar. 25, 2020 | Oct. 31, 2019 | ||
Long-term Debt, Gross | $ 1,435,749 | [1] | $ 1,549,105 | ||
Net (discounts) premiums | 17,521 | (49,145) | |||
Net debt issuance costs | (22,160) | (19,970) | |||
Total notes payable, net of discounts, premiums and debt issuance costs | 1,431,110 | 1,479,990 | |||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | |||||
Long-term Debt, Gross | $ 162,300 | 103,100 | |||
Senior Secured Notes [Member] | |||||
Long-term Debt, Gross | 1,133,990 | 1,165,848 | |||
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | |||||
Long-term Debt, Gross | 111,214 | 218,994 | |||
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | |||||
Long-term Debt, Gross | 69,683 | 211,391 | |||
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | |||||
Long-term Debt, Gross | 158,502 | 0 | |||
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | |||||
Long-term Debt, Gross | 350,000 | 350,000 | |||
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | |||||
Long-term Debt, Gross | 282,322 | 282,322 | |||
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | |||||
Long-term Debt, Gross | 162,269 | 103,141 | |||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||
Long-term Debt, Gross | 180,710 | 180,710 | |||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2027 [Member] | |||||
Long-term Debt, Gross | [2] | 0 | 0 | ||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 13.5% Senior Notes Due 2026 [Member] | |||||
Long-term Debt, Gross | 90,590 | 90,590 | |||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 5.0% Senior Notes due 2040 [Member] | |||||
Long-term Debt, Gross | 90,120 | 90,120 | |||
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | |||||
Long-term Debt, Gross | 39,551 | 202,547 | |||
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | |||||
Long-term Debt, Gross | 81,498 | 0 | |||
Senior Secured Revolving Credit Facility [Member] | |||||
Long-term Debt, Gross | [3] | $ 0 | $ 0 | ||
[1] | Does not include our $125.0 million Senior Secured Revolving Credit Facility under which there were no borrowings outstanding as of October 31, 2020. | ||||
[2] | $26.0 million of 8.0% Senior Notes due 2027 are owned by a wholly-owned consolidated subsidiary of HEI. Therefore, in accordance with GAAP, such notes are not reflected on the Consolidated Balance Sheets of HEI. On November 1, 2019, the maturity of the 8.0% Senior Notes was extended to November 1, 2027. | ||||
[3] | At October 31, 2020, provides for up to $125.0 million in aggregate amount of senior secured first lien revolving loans. Availability thereunder will terminate on December 28, 2022. |
Note 9 - Senior Notes and Cre_5
Note 9 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) (Parentheticals) | 12 Months Ended | ||||||||
Oct. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2020 | Mar. 25, 2020 | Jan. 31, 2020 | Dec. 10, 2019 | Jan. 15, 2019 | Feb. 01, 2018 | ||
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | |||||||||
Debt Instrument, Maturity Date | Feb. 1, 2027 | Feb. 1, 2027 | |||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||
Debt Instrument, Maturity Date | Jul. 15, 2022 | Jul. 15, 2022 | |||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | 10.50% | 10.50% | 10.50% | ||||
Debt Instrument, Maturity Date | Jul. 15, 2024 | Jul. 15, 2024 | |||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |||||
Debt Instrument, Maturity Date | Nov. 15, 2025 | Nov. 15, 2025 | |||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | |||||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | |||||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | |||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | |||||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||||||
The 8.0% Senior Notes Due 2027 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||
The 8.0% Senior Notes Due 2027 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 8.00% | 8.00% | ||||||
Debt Instrument, Maturity Date | [1] | Nov. 1, 2027 | Nov. 1, 2027 | ||||||
The 13.5% Senior Notes Due 2026 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||||||
The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | 13.50% | |||||||
Debt Instrument, Maturity Date | Feb. 1, 2026 | Feb. 1, 2026 | |||||||
The 5.0% Senior Notes due 2040 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||
The 5.0% Senior Notes due 2040 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||||
Debt Instrument, Maturity Date | Feb. 1, 2040 | Feb. 1, 2040 | |||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Senior Secured Term Loan [Member] | |||||||||
Debt Instrument, Maturity Date | Jan. 31, 2028 | Jan. 31, 2028 | |||||||
[1] | $26.0 million of 8.0% Senior Notes due 2027 are owned by a wholly-owned consolidated subsidiary of HEI. Therefore, in accordance with GAAP, such notes are not reflected on the Consolidated Balance Sheets of HEI. On November 1, 2019, the maturity of the 8.0% Senior Notes was extended to November 1, 2027. |
Note 9 - Senior Notes and Cre_6
Note 9 - Senior Notes and Credit Facilities - Future Maturities of Borrowings (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 | ||
2021 | [1] | $ 0 | ||
2022 | [1] | 111,214 | ||
2023 | [1] | 0 | ||
2024 | [1] | 69,683 | ||
2025 | [1] | 0 | ||
Thereafter | [1] | 1,254,852 | ||
Total | $ 1,435,749 | [1] | $ 1,549,105 | |
[1] | Does not include our $125.0 million Senior Secured Revolving Credit Facility under which there were no borrowings outstanding as of October 31, 2020. |
Note 10 - Operating and Repor_3
Note 10 - Operating and Reporting Segments (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 103,801 | $ 90,056 | $ 103,297 | ||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 0 | $ 4,055 | $ (174) | $ 9,456 | $ (42,436) | $ 0 | $ 0 | $ 0 | 13,337 | (42,436) | (7,536) | |
Qualifying Assets Not Exceeding Debt [Member] | ||||||||||||
Real Estate Inventory Expense Not Eligible for Capitalization | 61,900 | 56,900 | 76,200 | |||||||||
Corporate, Non-Segment [Member] | ||||||||||||
General and Administrative Expense, Total | 80,500 | 66,400 | 69,600 | |||||||||
Gain (Loss) on Extinguishment of Debt, Total | 13,300 | (42,400) | (7,500) | |||||||||
Other Nonoperating Income (Expense), Total | 3,300 | 9,000 | 14,100 | |||||||||
Corporate, Non-Segment [Member] | Qualifying Assets Not Exceeding Debt [Member] | ||||||||||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 61,900 | $ 55,500 | $ 76,200 | |||||||||
Homebuilding [Member] | ||||||||||||
Number of Reportable Segments | 6 | |||||||||||
[1] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2020 2019 2018 Other interest expensed $ 103,801 $ 90,056 $ 103,297 Interest paid by our mortgage and finance subsidiaries 2,165 2,536 2,478 (Increase) decrease in accrued interest (16,482) 16,515 6,241 Cash paid for interest, net of capitalized interest $ 89,484 $ 109,107 $ 112,016 | |||||||||||
[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 $61.9 million, $56.9 million and $76.2 million for the years ended October 31, 2020, 2019 and 2018, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $41.9 million, $33.2 million and $27.1 million for the years ended October 31, 2020, 2019 and 2018, respectively. |
Note 10 - Operating and Repor_4
Note 10 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2020 | ||
Revenues, Total | $ 683,358 | $ 628,136 | $ 538,351 | $ 494,056 | $ 713,590 | $ 482,041 | $ 440,691 | $ 380,594 | $ 2,343,901 | $ 2,016,916 | $ 1,991,233 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 42,444 | 16,216 | 4,179 | (7,436) | (586) | (7,064) | (14,912) | (17,106) | 55,403 | (39,668) | 8,146 | $ 23,800 | |
Total interest expense, net | 178,096 | 161,115 | 164,086 | ||||||||||
Total depreciation | 5,304 | 4,172 | 3,156 | ||||||||||
Net additions to operating properties and equipment | 3,380 | 4,005 | 5,193 | ||||||||||
Income from unconsolidated joint ventures | $ 3,146 | $ 5,658 | $ 6,221 | $ 1,540 | $ 8,376 | $ 3,742 | $ 7,252 | $ 9,562 | 16,565 | 28,932 | 24,033 | ||
Corporate, Non-Segment [Member] | |||||||||||||
Revenues, Total | 467 | 1,742 | 5,764 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | [1] | (125,789) | (155,344) | (139,160) | |||||||||
Total interest expense, net | 61,917 | 55,506 | 76,183 | ||||||||||
Total depreciation | 1,859 | 1,777 | 1,599 | ||||||||||
Net additions to operating properties and equipment | 587 | 1,610 | 3,333 | ||||||||||
Homebuilding [Member] | |||||||||||||
Revenues, Total | 2,271,739 | 1,962,764 | 1,937,878 | ||||||||||
Homebuilding [Member] | Operating Segments [Member] | |||||||||||||
Revenues, Total | 2,271,272 | 1,961,022 | 1,932,114 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 149,090 | 98,049 | 129,079 | ||||||||||
Total interest expense, net | 116,214 | 105,275 | 87,799 | ||||||||||
Total depreciation | 3,432 | 2,381 | 1,543 | ||||||||||
Net additions to operating properties and equipment | 2,793 | 2,395 | 1,860 | ||||||||||
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | |||||||||||||
Revenues, Total | 192,069 | 124,372 | 116,296 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 30,371 | 20,954 | 20,869 | ||||||||||
Total interest expense, net | 13,636 | 10,011 | 11,811 | ||||||||||
Total depreciation | 229 | 188 | 135 | ||||||||||
Net additions to operating properties and equipment | 43 | 107 | 142 | ||||||||||
Income from unconsolidated joint ventures | 11,039 | 19,242 | 20,231 | ||||||||||
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | |||||||||||||
Revenues, Total | 403,669 | 357,247 | 354,690 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 34,570 | 14,327 | 18,757 | ||||||||||
Total interest expense, net | 16,076 | 18,563 | 15,051 | ||||||||||
Total depreciation | 264 | 209 | 63 | ||||||||||
Net additions to operating properties and equipment | 165 | 168 | 318 | ||||||||||
Income from unconsolidated joint ventures | (292) | 3,404 | 799 | ||||||||||
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | |||||||||||||
Revenues, Total | 225,718 | 204,461 | 196,599 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | (1,805) | (649) | 1,528 | ||||||||||
Total interest expense, net | 9,377 | 7,121 | 5,874 | ||||||||||
Total depreciation | 1,112 | 1,097 | 1,106 | ||||||||||
Net additions to operating properties and equipment | 861 | 237 | 621 | ||||||||||
Income from unconsolidated joint ventures | (103) | (432) | (775) | ||||||||||
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | |||||||||||||
Revenues, Total | 232,730 | 220,082 | 241,620 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 1,355 | (10,060) | (9,914) | ||||||||||
Total interest expense, net | 17,005 | 18,798 | 14,934 | ||||||||||
Total depreciation | 327 | 230 | 124 | ||||||||||
Net additions to operating properties and equipment | 102 | 221 | 701 | ||||||||||
Income from unconsolidated joint ventures | 820 | 1,310 | (2,032) | ||||||||||
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | |||||||||||||
Revenues, Total | 744,197 | 629,344 | 638,282 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 68,184 | 33,459 | 49,852 | ||||||||||
Total interest expense, net | 29,898 | 27,731 | 21,820 | ||||||||||
Total depreciation | 699 | 331 | 70 | ||||||||||
Net additions to operating properties and equipment | 776 | 741 | 23 | ||||||||||
Income from unconsolidated joint ventures | 5,111 | 7,951 | 5,165 | ||||||||||
Homebuilding [Member] | West [Member] | Operating Segments [Member] | |||||||||||||
Revenues, Total | 472,889 | 425,516 | 384,627 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 16,415 | 40,018 | 47,987 | ||||||||||
Total interest expense, net | 30,222 | 23,051 | 18,309 | ||||||||||
Total depreciation | 801 | 326 | 45 | ||||||||||
Net additions to operating properties and equipment | 846 | 921 | 55 | ||||||||||
Income from unconsolidated joint ventures | (10) | (2,543) | 645 | ||||||||||
Financial Services [Member] | |||||||||||||
Revenues, Total | 72,162 | 54,152 | 53,355 | ||||||||||
Financial Services [Member] | Operating Segments [Member] | |||||||||||||
Revenues, Total | 72,162 | 54,152 | 53,355 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 32,102 | 17,627 | 18,227 | ||||||||||
Financial services interest expense | [2] | (35) | 334 | 104 | |||||||||
Total depreciation | 13 | 14 | 14 | ||||||||||
Net additions to operating properties and equipment | $ 0 | $ 0 | $ 0 | ||||||||||
[1] | Corporate and unallocated for the year ended October 31, 2020 included corporate general and administrative costs of $80.5 million, interest expense of $61.9 million (a component of Other interest on our Consolidated Statements of Operations), gain on extinguishment of debt of $13.3 million, and $3.3 million of other income and expenses, along with the adjustment to our insurance reserves. Corporate and unallocated for the year ended October 31, 2019 included corporate general and administrative costs of $66.4 million, interest expense of $55.5 million (a component of Other interest on our Consolidated Statements of Operations), loss on extinguishment of debt of $42.4 million, and $9.0 million of other income and expenses, along with the adjustment to our insurance reserves. Corporate and unallocated for the year ended October 31, 2018 included corporate general and administrative costs of $69.6 million, interest expense of $76.2 million (a component of Other interest on our Consolidated Statements of Operations), loss on extinguishment of debt of $7.5 million, $14.1 million of other income and expenses primarily related to interest income and gain on the sale of our former corporate headquarters building, along with the adjustment to our insurance reserves. | ||||||||||||
[2] | Financial services interest expenses are included in the Financial services lines on the Consolidated Statements of Operations in the respective revenues and expenses sections. |
Note 10 - Operating and Repor_5
Note 10 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Assets | $ 1,827,342 | $ 1,881,424 |
Investments in and advances to unconsolidated joint ventures | 103,164 | 127,038 |
Corporate, Non-Segment [Member] | ||
Assets | 315,585 | 186,046 |
Investments in and advances to unconsolidated joint ventures | 702 | 1,181 |
Homebuilding [Member] | ||
Assets | 1,686,735 | 1,682,149 |
Investments in and advances to unconsolidated joint ventures | 103,164 | 127,038 |
Homebuilding [Member] | Operating Segments [Member] | ||
Assets | 1,371,150 | 1,496,103 |
Investments in and advances to unconsolidated joint ventures | 102,462 | 125,857 |
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | ||
Assets | 107,748 | 163,342 |
Investments in and advances to unconsolidated joint ventures | 14,646 | 49,340 |
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | ||
Assets | 271,867 | 264,894 |
Investments in and advances to unconsolidated joint ventures | 11,055 | 9,166 |
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | ||
Assets | 106,774 | 117,242 |
Investments in and advances to unconsolidated joint ventures | 498 | 4,382 |
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | ||
Assets | 248,506 | 281,654 |
Investments in and advances to unconsolidated joint ventures | 66,234 | 52,983 |
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | ||
Assets | 357,444 | 357,052 |
Investments in and advances to unconsolidated joint ventures | 9,965 | 10,019 |
Homebuilding [Member] | West [Member] | Operating Segments [Member] | ||
Assets | 278,811 | 311,919 |
Investments in and advances to unconsolidated joint ventures | 64 | |
Homebuilding [Member] | West [Member] | Consolidation, Eliminations [Member] | ||
Investments in and advances to unconsolidated joint ventures | (33) | |
Financial Services [Member] | ||
Assets | 140,607 | 199,275 |
Financial Services [Member] | Operating Segments [Member] | ||
Assets | $ 140,607 | $ 199,275 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||||||||
Oct. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Oct. 31, 2020USD ($) | Oct. 31, 2010USD ($) | |
Income Tax Expense (Benefit), Total | $ 1,810 | $ 853 | $ 100 | $ 1,712 | $ 1,221 | $ 537 | $ 345 | $ 346 | $ 4,475 | $ 2,449 | $ 3,626 | ||
Deferred Tax Assets, Valuation Allowance, Total | 577,534 | 623,220 | 577,534 | 623,220 | $ 577,534 | $ 577,500 | |||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | $ 42,444 | $ 16,216 | $ 4,179 | $ (7,436) | (586) | $ (7,064) | $ (14,912) | $ (17,106) | $ 55,403 | (39,668) | 8,146 | 23,800 | |
Contract Pace Per Average Active Selling Community | 16.4 | 17.8 | |||||||||||
Increase (Decrease) in Dollar Value of Backlog, Percentage | 61.30% | ||||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 300 | 400 | $ 300 | 400 | 300 | ||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 60 | 32 | 41 | ||||||||||
Unrecognized Tax Benefits, Period Increase (Decrease), Total | (200) | ||||||||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 700 | $ 900 | 700 | 900 | $ 700 | ||||||||
Domestic Tax Authority [Member] | |||||||||||||
Operating Income (Loss), Total | (183,000) | (4,000) | |||||||||||
Operating Income (Loss), Tax Effect | 38,400 | 800 | |||||||||||
Income Tax Expense (Benefit), Total | $ 0 | 0 | 0 | ||||||||||
Open Tax Year | 2016 2017 2018 2019 | ||||||||||||
Domestic Tax Authority [Member] | Between 2028 and 2038 [Member] | |||||||||||||
Operating Loss Carryforwards, Total | 1,400 | ||||||||||||
Domestic Tax Authority [Member] | Indefinite Tax Period [Member] | |||||||||||||
Operating Loss Carryforwards, Total | 15,700 | ||||||||||||
State and Local Jurisdiction [Member] | |||||||||||||
Operating Income (Loss), Total | $ (72,500) | (1,300) | (4,400) | ||||||||||
Income Tax Expense (Benefit), Total | $ 4,475 | $ 2,449 | $ 3,626 | ||||||||||
Operating Loss Carryforwards, Total | 2,400,000 | ||||||||||||
State and Local Jurisdiction [Member] | Indefinite Tax Period [Member] | |||||||||||||
Operating Loss Carryforwards, Total | 48,800 | ||||||||||||
State and Local Jurisdiction [Member] | Between 2021 and 2025 [Member] | |||||||||||||
Operating Loss Carryforwards, Total | 232,600 | ||||||||||||
State and Local Jurisdiction [Member] | Between 2026 and 2030 [Member] | |||||||||||||
Operating Loss Carryforwards, Total | 1,300,000 | ||||||||||||
State and Local Jurisdiction [Member] | Between 2031 and 2035 [Member] | |||||||||||||
Operating Loss Carryforwards, Total | 587,900 | ||||||||||||
State and Local Jurisdiction [Member] | Between 2036 and 2040 [Member] | |||||||||||||
Operating Loss Carryforwards, Total | $ 239,200 |
Note 11 - Income Taxes - Income
Note 11 - Income Taxes - Income Taxes Payable (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Deferred | $ 0 | $ 0 |
Total | 3,832 | 2,301 |
State and Local Jurisdiction [Member] | ||
Current | 3,832 | 2,301 |
Deferred | 0 | 0 |
Domestic Tax Authority [Member] | ||
Current | 0 | 0 |
Deferred | $ 0 | $ 0 |
Note 11 - Income Taxes - Provis
Note 11 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Federal (1) | [1] | $ 0 | $ 0 | $ 0 | ||||||||
State (2) | [2] | 4,475 | 2,449 | 3,626 | ||||||||
Total current income tax expense: | 4,475 | 2,449 | 3,626 | |||||||||
Federal | 0 | 0 | 0 | |||||||||
State | 0 | 0 | 0 | |||||||||
Total deferred income tax expense: | 0 | 0 | 0 | |||||||||
Total | $ 1,810 | $ 853 | $ 100 | $ 1,712 | $ 1,221 | $ 537 | $ 345 | $ 346 | $ 4,475 | $ 2,449 | $ 3,626 | |
[1] | The current federal income tax expense is net of the use of federal net operating losses totaling $183.0 million (tax effected $38.4 million) and $4.0 million (tax effected $0.8 million) for the years ended October 31, 2020 and 2019, respectively. The current federal income tax expense did not include the use of federal net operating losses for the year ended October 31, 2018. | |||||||||||
[2] | The current state income tax expense is net of the use of state net operating losses totaling $72.5 million, $1.3 million and $4.4 million for the years ended October 31, 2020, 2019 and 2018, respectively. |
Note 11 - Income Taxes - Deferr
Note 11 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2010 |
Inventory impairment loss | $ 42,120 | $ 47,000 | |
Uniform capitalization of overhead | 3,870 | 3,917 | |
Warranty and legal reserves | 4,848 | 4,404 | |
Acquisition intangibles | 0 | 424 | |
Compensation | 9,554 | 8,477 | |
Deferred Income | 3,793 | 5,167 | |
Interest Expense | 3,930 | 6,616 | |
Other | 3,259 | 1,280 | |
Joint venture loss | 3,020 | 4,392 | |
Federal net operating losses | 299,854 | 334,142 | |
State net operating losses | 181,050 | 184,740 | |
Total deferred tax assets | 577,534 | 623,220 | |
Total deferred tax liabilities | 0 | 0 | |
Valuation allowance | (577,534) | (623,220) | $ (577,500) |
Net deferred income taxes | 0 | 0 | |
Provision for Losses [Member] | |||
Other | 16,566 | 16,820 | |
Restricted Stock [Member] | |||
Share based compensation | 1,644 | 1,553 | |
Share-based Payment Arrangement, Option [Member] | |||
Share based compensation | $ 4,026 | $ 4,288 |
Note 11 - Income Taxes - Effect
Note 11 - Income Taxes - Effective Tax Rate (Details) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Computed “expected” tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal income tax benefit | 10.60% | (5.00%) | 17.20% |
Permanent differences, net | 53.20% | (42.40%) | 74.00% |
Deferred tax asset valuation allowance impact | (83.30%) | 20.80% | (70.80%) |
Tax contingencies | (0.50%) | 0.50% | 1.00% |
Adjustments to prior years’ tax accruals | 7.00% | (1.00%) | 2.10% |
Effective tax rate | 8.00% | (6.10%) | 44.50% |
Note 11 - Income Taxes - Unreco
Note 11 - Income Taxes - Unrecognized Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Unrecognized tax benefit—November 1, | $ 0.9 | $ 1.2 |
Gross increases—tax positions in current period | 0 | 0 |
Lapse of statute of limitations | (0.2) | (0.3) |
Unrecognized tax benefit—October 31, | $ 0.7 | $ 0.9 |
Note 12 - Reduction of Invent_3
Note 12 - Reduction of Inventory to Fair Value (Details Textual) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | |
Number of Communities Evaluated for Impairment | 354 | 393 | |
Number of Communities Performed Detailed Impairment Calculations | 3 | 9 | |
Carrying Value of Communities Tested for Impairment | $ 5.4 | $ 58.9 | |
Impairment of Real Estate | 2 | 2.7 | $ 2.1 |
Land Option Write Offs | $ 6.8 | $ 3.6 | $ 1.4 |
Homebuilding [Member] | |||
Number of Communities Impaired | 2 | 6 | 5 |
Impairment of Real Estate | $ 2 | $ 2.7 | $ 2.1 |
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow that Did Not Exceed Carrying Amount By Less Than 20 Percent | 1 | ||
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Did Not Exceed Carrying Amount by Less than 20 Percent | $ 0.6 | ||
Percentage Undiscounted Cash Flow Exceeds Carrying Amount | 20.00% | 20.00% | |
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount By Less Than 20 Percent | 3 | ||
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount by Less than 20 Percent | $ 41.3 | ||
Land Option Write Offs | $ 6.8 | $ 3.6 | $ 1.4 |
Homebuilding [Member] | Measurement Input, Discount Rate [Member] | |||
Inventory, Measurement Input | 17.3 | ||
Homebuilding [Member] | Measurement Input, Discount Rate [Member] | Minimum [Member] | |||
Inventory, Measurement Input | 17.3 | 16.8 | |
Homebuilding [Member] | Measurement Input, Discount Rate [Member] | Maximum [Member] | |||
Inventory, Measurement Input | 18.3 | 19.8 |
Note 12 - Reduction of Invent_4
Note 12 - Reduction of Inventory to Fair Value - Inventory Impairments by Homebuilding Segment (Details) $ in Millions | 12 Months Ended | |||
Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | ||
Dollar amount of impairment | $ 2 | $ 2.7 | $ 2.1 | |
Homebuilding [Member] | ||||
Number of communities | 2 | 6 | 5 | |
Dollar amount of impairment | $ 2 | $ 2.7 | $ 2.1 | |
Pre-impairment value | [1] | $ 4.8 | $ 17.5 | $ 11.2 |
Homebuilding [Member] | Northeast [Member] | ||||
Number of communities | 0 | 2 | 1 | |
Dollar amount of impairment | $ 0 | $ 0.2 | $ 0.4 | |
Pre-impairment value | [1] | $ 0 | $ 7.8 | $ 1 |
Homebuilding [Member] | Mid-Atlantic [Member] | ||||
Number of communities | 0 | 1 | 0 | |
Dollar amount of impairment | $ 0 | $ 0.3 | $ 0 | |
Pre-impairment value | [1] | $ 0 | $ 1.7 | $ 0 |
Homebuilding [Member] | Midwest [Member] | ||||
Number of communities | 2 | 1 | 1 | |
Dollar amount of impairment | $ 2 | $ 1.4 | $ 0.1 | |
Pre-impairment value | [1] | $ 4.8 | $ 4.6 | $ 0.5 |
Homebuilding [Member] | Southeast [Member] | ||||
Number of communities | 0 | 1 | 3 | |
Dollar amount of impairment | $ 0 | $ 0.7 | $ 1.6 | |
Pre-impairment value | [1] | $ 0 | $ 2.2 | $ 9.7 |
Homebuilding [Member] | Southwest [Member] | ||||
Number of communities | 0 | 1 | 0 | |
Dollar amount of impairment | $ 0 | $ 0.1 | $ 0 | |
Pre-impairment value | [1] | $ 0 | $ 1.2 | $ 0 |
Homebuilding [Member] | West [Member] | ||||
Number of communities | 0 | 0 | 0 | |
Dollar amount of impairment | $ 0 | $ 0 | $ 0 | |
Pre-impairment value | [1] | $ 0 | $ 0 | $ 0 |
[1] | Represents carrying value, net of prior period impairments, if any, at the time of recording the applicable period's impairments. |
Note 12 - Reduction of Invent_5
Note 12 - Reduction of Inventory to Fair Value - Write-offs and Lots Walked Away From (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Amount of write-offs | $ 6.8 | $ 3.6 | $ 1.4 |
Homebuilding [Member] | |||
Amount of write-offs | 6.8 | 3.6 | 1.4 |
Homebuilding [Member] | Northeast [Member] | |||
Amount of write-offs | 1.5 | 0.6 | 0.6 |
Homebuilding [Member] | Mid-Atlantic [Member] | |||
Amount of write-offs | 0 | 0.5 | 0.2 |
Homebuilding [Member] | Midwest [Member] | |||
Amount of write-offs | 3.5 | 0.9 | 0.1 |
Homebuilding [Member] | Southeast [Member] | |||
Amount of write-offs | 0.8 | 0.3 | 0 |
Homebuilding [Member] | Southwest [Member] | |||
Amount of write-offs | 0.6 | 0.6 | 0.2 |
Homebuilding [Member] | West [Member] | |||
Amount of write-offs | $ 0.4 | $ 0.7 | $ 0.3 |
Note 13 - Per Share Calculati_3
Note 13 - Per Share Calculation (Details Textual) - shares | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Non Vested Stock and Outstanding Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 300,000 | ||
Convertible Debt Securities [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 33 | ||
Exchangeable Note Unit Rate Stated Percentage | 6.00% | ||
Out of the Money Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 200,000 | 200,000 | 200,000 |
Note 13 - Per Share Calculati_4
Note 13 - Per Share Calculations - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Net earnings (loss) attributable to Hovnanian | $ 40,634 | $ 15,363 | $ 4,079 | $ (9,148) | $ (1,807) | $ (7,601) | $ (15,257) | $ (17,452) | $ 50,928 | $ (42,117) | $ 4,520 |
Less: undistributed earnings allocated to nonvested shares | (4,652) | 0 | (159) | ||||||||
Numerator for basic earnings (loss) per share | 46,276 | (42,117) | 4,361 | ||||||||
Plus: undistributed earnings allocated to nonvested shares | 4,652 | 0 | 159 | ||||||||
Less: undistributed earnings reallocated to nonvested shares | (4,652) | 0 | (159) | ||||||||
Numerator for diluted earnings (loss) per share | $ 46,276 | $ (42,117) | $ 4,361 | ||||||||
Denominator for basic earnings per share (in shares) | 5,982 | 5,971 | 5,962 | 5,958 | 6,189 | 5,968 | 5,941 | ||||
Share-based payments (in shares) | 395 | 0 | 131 | ||||||||
Denominator for diluted earnings per share – weighted-average shares outstanding (in shares) | 6,699 | 6,518 | 6,432 | 6,161 | 6,584 | 5,968 | 6,072 | ||||
Basic earnings (loss) per share (in dollars per share) | $ 7.48 | $ (7.06) | $ 0.73 | ||||||||
Diluted earnings (loss) per share (in dollars per share) | $ 5.54 | $ 2.16 | $ 0.60 | $ (1.49) | $ 7.03 | $ (7.06) | $ 0.72 |
Note 14 - Capital Stock (Detail
Note 14 - Capital Stock (Details Textual) | Mar. 29, 2019$ / sharesshares | Mar. 19, 2019 | Jul. 12, 2005$ / sharesshares | Oct. 31, 2020USD ($)$ / sharesshares | Oct. 31, 2019USD ($)$ / sharesshares | Oct. 31, 2018USD ($) | Jan. 11, 2018 | Aug. 15, 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 | 1 | |||||||
Shareholder Ownership Percentage of Increase | 50.00% | ||||||||
Stock Issued During Period, Value, New Issues | $ | $ 0 | $ 4,475,000 | |||||||
Preferred Stock, Shares Issued, Total (in shares) | 5,600 | 5,600 | |||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ | $ 7,400,000 | $ 7,300,000 | $ 7,000,000 | ||||||
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | |||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 178,427 | ||||||||
Stock Issued During Period, Value, New Issues | $ | $ 1,784.27 | ||||||||
Minimum [Member] | |||||||||
Shareholder Ownership Percentage | 5.00% | ||||||||
Reverse Stock Split [Member] | |||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | 25 | |||||||
Number of Fractional Shares Issued (in shares) | 0 | ||||||||
Common Class A [Member] | |||||||||
Common Stock Voting Rights Votes per Share Number | 1 | ||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
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 (in shares) | 200,000 | ||||||||
Stock Repurchased During Period, Shares (in shares) | 0 | ||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares) | 22,000 | ||||||||
Common Class A [Member] | Reverse Stock Split [Member] | |||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | ||||||||
Common Class B [Member] | |||||||||
Common Stock Voting Rights Votes per Share Number | 10 | ||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Common Class B [Member] | Reverse Stock Split [Member] | |||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | ||||||||
Preferred Class A [Member] | |||||||||
Preferred Stock, Shares Issued, Total (in shares) | 5,600 | ||||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | ||||||||
Preferred Stock, Liquidation Preference Per Share (in dollars per share) | $ / shares | $ 25,000 | ||||||||
Preferred Stock, Depositary Shares, Number of Shares of Preferred Stock in Each Depositary Share (in shares) | 1 | ||||||||
Payments of Dividends, Total | $ | $ 0 | $ 0 | $ 0 |
Note 15 - Stock Plans (Details
Note 15 - Stock Plans (Details Textual) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2020USD ($)$ / sharesshares | Oct. 31, 2019USD ($)$ / sharesshares | Oct. 31, 2018USD ($)$ / sharesshares | Jul. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | 110,975 | 37,825 | |
Share-based Payment Arrangement, Expense | $ | $ 2,800 | $ 700 | $ 3,700 | |
Share-based Payment Arrangement, Expense, after Tax | $ | $ 2,600 | $ 2,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 0 | 0 | 1,210 | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | $ / shares | $ 7.85 | |||
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ / shares | $ 157 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 26 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 4.46 | $ 27.09 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 36.07 | $ 69.56 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Participants Years of Service (Year) | 15 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 200,000 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ | $ 6,200 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 9 months 18 days | |||
Nonemployee Director [Member] | ||||
Number of Directors | 5 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Payment Arrangement, Expense | $ | $ 400 | $ 800 | $ 700 | |
Restricted Stock [Member] | ||||
Share-based Compensation, Reverse of Previously Recognized Expense | $ | $ 2,400 | $ 2,600 | $ 800 | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) | 142,231 | 107,650 | 20,292 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 5,567 | 656 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested, Number (in shares) | 60,446 | 33,643 | 21,609 | |
Restricted Stock [Member] | Prior Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) | 11,503 | 8,380 | 5,936 | |
Restricted Stock [Member] | Participants With Service Requirement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Participants Age (Year) | 58 years | |||
Restricted Stock [Member] | Nonemployee Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) | 36,731 | 103,612 | 15,904 | |
Restricted Stock [Member] | Participants Without Service Requirement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Participants Age (Year) | 60 years | |||
Awards Other Than Options [Member] | ||||
Share-based Payment Arrangement, Noncash Expense, Total | $ | $ 2,400 | $ 2,800 | ||
Share-based Payment Arrangement, Noncash Income | $ | $ 200 | |||
Performance-based Market Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.19% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 108.15% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 142,500 | 81,250 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 56,400 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Adjustment for Shares Grants in Previous Period (in shares) | 20,350 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Time-based Market Share Units [Member] | ||||
Share-based Compensation, Reverse of Previously Recognized Expense | $ | $ 2,400 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 81,850 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 56,400 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Adjustment for Shares Grants in Previous Period (in shares) | 16,700 | |||
Market Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | |||
Share-based Compensation Arrangement By Share-based Compensation Award Fair Value Measurement Period (Day) | 60 days | |||
Market Stock Units [Member] | Two Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 62.51% | 48.41% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Market Stock Units [Member] | Two and a Half Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.80% | 2.56% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 59.60% | 51.92% | ||
Market Stock Units [Member] | Three Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 57.04% | 56.11% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Market Stock Units [Member] | Four Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.81% | 2.68% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 60.03% | 52.59% | ||
Market Stock Units [Member] | Five Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 56.86% | 49.57% | ||
Market Stock Units [Member] | Minimum [Member] | ||||
Percentage of Target Number of Shares Covered by MSU Awards | 0.00% | |||
Market Stock Units [Member] | Maximum [Member] | ||||
Percentage of Target Number of Shares Covered by MSU Awards | 200.00% | |||
Performance Based MSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 4 | |||
Performance Based MSUs [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
Equity Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.99% | 2.80% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 0.56% | 0.50% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year) | 7 years 11 months 23 days | 8 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Estimated Forfeiture Rate | 7.84% | 9.90% |
Note 15 - Stock Plans - Stock O
Note 15 - Stock Plans - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Options outstanding at beginning of period (in shares) | 331,481 | 278,569 | 274,423 |
Options outstanding at beginning of period (in dollars per share) | $ 53.93 | $ 73.76 | $ 85.22 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | 110,975 | 37,825 |
Granted (in dollars per share) | $ 0 | $ 9.44 | $ 56.30 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 0 | 0 | 1,210 |
Exercised (in dollars per share) | $ 0 | $ 0 | $ 49.91 |
Forfeited (in shares) | 6,560 | 2,038 | 2,000 |
Forfeited (in dollars per share) | $ 26.24 | $ 53.96 | $ 64.25 |
Expired (in shares) | 35,530 | 56,025 | 30,469 |
Expired (in dollars per share) | $ 115.28 | $ 64.41 | $ 156.95 |
Options outstanding at end of period (in shares) | 289,391 | 331,481 | 278,569 |
Options outstanding at end of period (in dollars per share) | $ 47.02 | $ 53.93 | $ 73.76 |
Options exercisable at end of period (in shares) | 145,553 | 147,019 | 191,748 |
Note 15 - Stock Plans - Stock_2
Note 15 - Stock Plans - Stock Options Outstanding and Exercisable (Details) | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
Lower limit exercise price (in dollars per share) | $ 7.85 |
Upper limit exercise price (in dollars per share) | 157 |
Range One [Member] | |
Lower limit exercise price (in dollars per share) | |
Upper limit exercise price (in dollars per share) | |
Number outstanding (in shares) | shares | 108,150 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 9.65 |
Weighted-average remaining contractual life - outstanding (Year) | 8 years 6 months 29 days |
Number exercisable (in shares) | shares | 850 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 24.08 |
Weighted-average remaining contractual life - exercisable (Year) | 3 years 3 months |
Range Two [Member] | |
Lower limit exercise price (in dollars per share) | |
Upper limit exercise price (in dollars per share) | |
Number outstanding (in shares) | shares | 96,995 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 50.07 |
Weighted-average remaining contractual life - outstanding (Year) | 3 years 9 months 3 days |
Number exercisable (in shares) | shares | 82,557 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 50.31 |
Weighted-average remaining contractual life - exercisable (Year) | 3 years 2 months 12 days |
Range Three [Member] | |
Lower limit exercise price (in dollars per share) | |
Upper limit exercise price (in dollars per share) | |
Number outstanding (in shares) | shares | 57,300 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 67.66 |
Weighted-average remaining contractual life - outstanding (Year) | 4 years 1 month 9 days |
Number exercisable (in shares) | shares | 35,200 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 71.46 |
Weighted-average remaining contractual life - exercisable (Year) | 1 year 11 months 12 days |
Range Four [Member] | |
Lower limit exercise price (in dollars per share) | |
Upper limit exercise price (in dollars per share) | |
Number outstanding (in shares) | shares | 26,946 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 142.17 |
Weighted-average remaining contractual life - outstanding (Year) | 2 years 9 months 3 days |
Number exercisable (in shares) | shares | 26,946 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 142.17 |
Weighted-average remaining contractual life - exercisable (Year) | 2 years 9 months 3 days |
Range Five [Member] | |
Number outstanding (in shares) | shares | 289,391 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 47.02 |
Weighted-average remaining contractual life - outstanding (Year) | 5 years 6 months 14 days |
Number exercisable (in shares) | shares | 145,553 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 72.28 |
Weighted-average remaining contractual life - exercisable (Year) | 2 years 9 months 21 days |
Note 15 - Stock Plans - Nonvest
Note 15 - Stock Plans - Nonvested Share Awards (Details) - $ / shares | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Time-based Share Units [Member] | |||
Nonvested, time-based (in shares) | 231,210 | 105,594 | 96,091 |
Nonvested, weighted average grant date fair value, time-based (in dollars per share) | $ 23.01 | $ 61.77 | $ 60.50 |
Granted, time-based (in shares) | 142,231 | 164,050 | 37,888 |
Granted, weighted average grant date fair value, time-based (in dollars per share) | $ 19.48 | $ 7.66 | $ 54.95 |
Vested, time-based (in shares) | 62,309 | 21,329 | 22,821 |
Vested, weighted average grant date fair value, time-based (in dollars per share) | $ 17.04 | $ 45.52 | $ 55.19 |
Forfeited, time-based (in shares) | 22,267 | 17,106 | 5,564 |
Forfeited, weighted average grant date fair value, time-based (in dollars per share) | $ 57.81 | $ 86.96 | $ 20.87 |
Nonvested, time-based (in shares) | 288,865 | 231,210 | 105,594 |
Nonvested, weighted average grant date fair value, time-based (in dollars per share) | $ 19.88 | $ 23.01 | $ 61.77 |
Performance Shares [Member] | |||
Nonvested, time-based (in shares) | 136,316 | 101,407 | 150,881 |
Nonvested, weighted average grant date fair value, time-based (in dollars per share) | $ 44.22 | $ 69.28 | $ 50.26 |
Granted, time-based (in shares) | 183,825 | 56,400 | 47,277 |
Granted, weighted average grant date fair value, time-based (in dollars per share) | $ 15.11 | $ 10.10 | $ 70.41 |
Vested, time-based (in shares) | 4,284 | 8,655 | 5,390 |
Vested, weighted average grant date fair value, time-based (in dollars per share) | $ 57.22 | $ 42.69 | $ 72.52 |
Forfeited, time-based (in shares) | 21,385 | 12,836 | 91,361 |
Forfeited, weighted average grant date fair value, time-based (in dollars per share) | $ 70.44 | $ 93.31 | $ 38.27 |
Nonvested, time-based (in shares) | 294,472 | 136,316 | 101,407 |
Nonvested, weighted average grant date fair value, time-based (in dollars per share) | $ 24.64 | $ 44.22 | $ 69.28 |
Note 16 - Warranty Costs (Detai
Note 16 - Warranty Costs (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Cash Received from Subcontractors for Owner Controlled Insurance Program | $ 4,400 | $ 4,800 | ||
General Liability Insurance Deductible | $ 20,000 | $ 20,000 | 20,000 | 20,000 |
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims | 20,000 | 20,000 | 20,000 | 20,000 |
Bodily Injury Insurance Deductible | 250 | 250 | 250 | 250 |
Bodily Injury Insurance Limit | 5,000 | 5,000 | 5,000 | 5,000 |
Increase (Decrease) In Construction Defect Reserves | $ (2,500) | $ (6,900) | ||
Payments by Insurance Companies for Claims | $ 100 | $ 100 |
Note 16 - Warranty Costs - Warr
Note 16 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Balance, beginning of period | $ 89,371 | $ 95,064 |
Charges incurred during the period | (20,163) | (18,757) |
Changes to pre-existing reserves | (2,651) | (1,604) |
Balance, end of period | 86,417 | 89,371 |
Selling, General and Administrative Expenses [Member] | ||
Additions | 9,587 | 8,408 |
Cost of Sales [Member] | ||
Additions | $ 10,273 | $ 6,260 |
Note 17 - Transactions With R_2
Note 17 - Transactions With Related Parties (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Tavit Najarian [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 700,000 | $ 900,000 | $ 700,000 |
Carson Sorsby [Member] | Compensation [Member] | |||
Related Party Transaction, Amounts of Transaction | 265,000 | 223,000 | 148,000 |
Alexander Hovnanian [Member] | Compensation [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 1,152,000 | $ 609,000 | $ 514,000 |
Note 18 - Commitments and Con_2
Note 18 - Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Millions | May 02, 2018 | Oct. 31, 2020 |
EPA Case Involving a Housing Redevelopment Project in Newark, New Jersey [Member] | ||
Loss Contingency, Percentage of Plaintiff's Costs for Which Reimbursement is Demanded | 100.00% | |
Loss Contingency, Damages Sought, Value | $ 2.7 | |
Great Notch Condominium Claims[Member] | ||
Loss Contingency, Damages Sought, Value | $ 119.5 |
Note 19 - Variable Interest E_2
Note 19 - Variable Interest Entities (Details Textual) $ in Millions | Oct. 31, 2020USD ($) |
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 88.9 |
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 1,300 |
Note 20 - Investments in Unco_3
Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | |
Fair Value of Assets Acquired | $ 13,000 | |||||||||||
Number of Owned Communities Transferred to the Joint Venture | 8 | 1 | ||||||||||
Proceeds from Transfer of Land to Joint Venture | $ 29,800 | $ 15,900 | ||||||||||
Number of Owned Active Communities Transferred to the Joint Venture | 4 | |||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | $ 103,164 | $ 127,038 | $ 103,164 | $ 127,038 | ||||||||
Equity Method Investment, Other than Temporary Impairment | 0 | |||||||||||
Revenues, Total | $ 683,358 | $ 628,136 | $ 538,351 | $ 494,056 | 713,590 | $ 482,041 | $ 440,691 | $ 380,594 | $ 2,343,901 | 2,016,916 | $ 1,991,233 | |
Joint Venture Total Debt to Capitalization Ratio | 35.00% | 35.00% | ||||||||||
Joint Ventures in West [Member] | ||||||||||||
Equity Method Investment, Other than Temporary Impairment | 900 | |||||||||||
Homebuilding [Member] | ||||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | $ 103,164 | 127,038 | $ 103,164 | 127,038 | ||||||||
Revenues, Total | 2,271,739 | 1,962,764 | 1,937,878 | |||||||||
Homebuilding [Member] | Management Fees [Member] | ||||||||||||
Revenues, Total | 16,000 | 16,900 | $ 21,100 | |||||||||
Corporate Joint Venture [Member] | ||||||||||||
Due to Affiliate | $ 1,100 | $ 1,100 | ||||||||||
Advances to Affiliate | $ 1,400 | $ 1,400 |
Note 20 - Investments in Unco_4
Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Assets | $ 1,827,342 | $ 1,881,424 | $ 1,827,342 | $ 1,881,424 | ||||||||
Liabilities | 2,263,436 | 2,371,200 | 2,263,436 | 2,371,200 | ||||||||
Hovnanian Enterprises, Inc. | (436,929) | (490,463) | (436,929) | (490,463) | ||||||||
Others | 835 | 687 | 835 | 687 | ||||||||
Total equity deficit | (436,094) | (489,776) | (436,094) | (489,776) | $ (453,504) | $ (460,371) | ||||||
Total liabilities and equity | $ 1,827,342 | 1,881,424 | $ 1,827,342 | 1,881,424 | ||||||||
Debt to capitalization ratio | 35.00% | 35.00% | ||||||||||
Revenues, Total | $ 683,358 | $ 628,136 | $ 538,351 | $ 494,056 | 713,590 | $ 482,041 | $ 440,691 | $ 380,594 | $ 2,343,901 | 2,016,916 | 1,991,233 | |
Joint venture net income | 40,634 | 15,363 | 4,079 | (9,148) | (1,807) | (7,601) | (15,257) | (17,452) | 50,928 | (42,117) | 4,520 | |
Our share of net income | 3,146 | $ 5,658 | $ 6,221 | $ 1,540 | 8,376 | $ 3,742 | $ 7,252 | $ 9,562 | 16,565 | 28,932 | 24,033 | |
Corporate Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||||||
Cash and cash equivalents | 123,561 | 110,723 | 123,561 | 110,723 | ||||||||
Inventories | 389,092 | 403,842 | 389,092 | 403,842 | ||||||||
Other assets | 27,550 | 25,129 | 27,550 | 25,129 | ||||||||
Assets | 540,203 | 539,694 | 540,203 | 539,694 | ||||||||
Accounts payable and accrued liabilities | 209,429 | 71,889 | 209,429 | 71,889 | ||||||||
Notes payable | 117,179 | 186,882 | 117,179 | 186,882 | ||||||||
Liabilities | 326,608 | 258,771 | 326,608 | 258,771 | ||||||||
Hovnanian Enterprises, Inc. | 104,248 | 125,638 | 104,248 | 125,638 | ||||||||
Others | 109,347 | 155,285 | 109,347 | 155,285 | ||||||||
Total equity deficit | 213,595 | 280,923 | 213,595 | 280,923 | ||||||||
Total liabilities and equity | $ 540,203 | $ 539,694 | $ 540,203 | $ 539,694 | ||||||||
Debt to capitalization ratio | 35.00% | 40.00% | 35.00% | 40.00% | ||||||||
Revenues, Total | $ 448,101 | $ 497,618 | 609,099 | |||||||||
Cost of sales and expenses | (432,202) | (464,511) | (582,279) | |||||||||
Joint venture net income | 15,899 | 33,107 | 26,820 | |||||||||
Our share of net income | 16,921 | 29,139 | 24,527 | |||||||||
Homebuilding Joint Venture [Member] | Corporate Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||||||
Cash and cash equivalents | $ 120,107 | $ 108,520 | 120,107 | 108,520 | ||||||||
Inventories | 389,001 | 397,804 | 389,001 | 397,804 | ||||||||
Other assets | 27,062 | 24,896 | 27,062 | 24,896 | ||||||||
Assets | 536,170 | 531,220 | 536,170 | 531,220 | ||||||||
Accounts payable and accrued liabilities | 207,277 | 71,297 | 207,277 | 71,297 | ||||||||
Notes payable | 117,179 | 186,882 | 117,179 | 186,882 | ||||||||
Liabilities | 324,456 | 258,179 | 324,456 | 258,179 | ||||||||
Hovnanian Enterprises, Inc. | 102,908 | 120,891 | 102,908 | 120,891 | ||||||||
Others | 108,806 | 152,150 | 108,806 | 152,150 | ||||||||
Total equity deficit | 211,714 | 273,041 | 211,714 | 273,041 | ||||||||
Total liabilities and equity | $ 536,170 | $ 531,220 | $ 536,170 | $ 531,220 | ||||||||
Debt to capitalization ratio | 36.00% | 41.00% | 36.00% | 41.00% | ||||||||
Revenues, Total | $ 435,077 | $ 488,914 | 602,681 | |||||||||
Cost of sales and expenses | (420,977) | (456,563) | (577,106) | |||||||||
Joint venture net income | 14,100 | 32,351 | 25,575 | |||||||||
Our share of net income | 16,904 | 28,761 | 23,904 | |||||||||
Land Development Joint Venture [Member] | Corporate Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||||||
Cash and cash equivalents | $ 3,454 | $ 2,203 | 3,454 | 2,203 | ||||||||
Inventories | 91 | 6,038 | 91 | 6,038 | ||||||||
Other assets | 488 | 233 | 488 | 233 | ||||||||
Assets | 4,033 | 8,474 | 4,033 | 8,474 | ||||||||
Accounts payable and accrued liabilities | 2,152 | 592 | 2,152 | 592 | ||||||||
Notes payable | 0 | 0 | 0 | 0 | ||||||||
Liabilities | 2,152 | 592 | 2,152 | 592 | ||||||||
Hovnanian Enterprises, Inc. | 1,340 | 4,747 | 1,340 | 4,747 | ||||||||
Others | 541 | 3,135 | 541 | 3,135 | ||||||||
Total equity deficit | 1,881 | 7,882 | 1,881 | 7,882 | ||||||||
Total liabilities and equity | $ 4,033 | $ 8,474 | $ 4,033 | $ 8,474 | ||||||||
Debt to capitalization ratio | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Revenues, Total | $ 13,024 | $ 8,704 | 6,418 | |||||||||
Cost of sales and expenses | (11,225) | (7,948) | (5,173) | |||||||||
Joint venture net income | 1,799 | 756 | 1,245 | |||||||||
Our share of net income | $ 17 | $ 378 | $ 623 |
Note 21 - Fair Value of Finan_3
Note 21 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Loans Held for Sale Mortgages Unpaid Principal | $ 100,400 | $ 161,100 | |
Other Commitment, Total | 20,000 | ||
Impairment of Real Estate | 2,000 | 2,700 | $ 2,100 |
Senior Secured Revolving Credit Facility [Member] | |||
Long-term Line of Credit, Total | 0 | $ 0 | |
Loan Origination Commitments [Member] | |||
Loan Applications in Process | $ 890,800 | ||
Loan Origination Commitments [Member] | Maximum [Member] | |||
Number of Days in Committment (Day) | 60 days | ||
Interest Rate Committed Loan Applications [Member] | |||
Interest Rate Committed Loan Applications | $ 57,200 |
Note 21 - Fair Value of Finan_4
Note 21 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 | |
Total | $ 104,361 | $ 165,985 | |
Fair Value, Inputs, Level 2 [Member] | |||
Mortgage loans held for sale | [1] | 104,378 | 166,007 |
Total | 104,350 | 165,943 | |
Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member] | |||
Derivative Fair Value | (28) | (64) | |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments [Member] | |||
Derivative Fair Value | $ 11 | $ 42 | |
[1] | The aggregate unpaid principal balance was $100.4 million and $161.1 million at October 31, 2020 and 2019, respectively. |
Note 21 - Fair Value of Finan_5
Note 21 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Loans Held for Sale [Member] | |||
Fair value included in net income all reflected in financial services revenues | $ 3,928 | $ 4,869 | $ 3,115 |
Interest Rate Lock Commitments [Member] | |||
Fair value included in net income all reflected in financial services revenues | 11 | 42 | (28) |
Forward Contracts [Member] | |||
Fair value included in net income all reflected in financial services revenues | $ (28) | $ (64) | $ 13 |
Note 21 - Fair Value of Finan_6
Note 21 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Total Losses | $ (2,000) | $ (2,700) | $ (2,100) |
Sold and Unsold Homes and Lots Under Development [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | |||
Pre-impairment value | 691 | 9,670 | |
Total Losses | (276) | (2,494) | |
Fair Value of Inventory | 415 | 7,176 | |
Land and Land Options Held for Future Development or Sale [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | |||
Pre-impairment value | 4,089 | 7,801 | |
Total Losses | (1,741) | (185) | |
Fair Value of Inventory | $ 2,348 | $ 7,616 |
Note 21 - Fair Value of Finan_7
Note 21 - Fair Value of Financial Instruments - Fair Value of Notes (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Notes, Fair Value | $ 1,241,570 | $ 1,310,638 |
Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 173,046 | 356,429 |
Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 1,068,524 | 954,209 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | ||
Notes, Fair Value | 107,878 | 189,430 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 107,878 | 189,430 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | ||
Notes, Fair Value | 67,941 | 166,999 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 166,999 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 67,941 | 0 |
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | ||
Notes, Fair Value | 132,246 | |
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | |
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | |
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 132,246 | |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 353,500 | 350,000 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 353,500 | 350,000 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 274,558 | 282,322 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 274,558 | 282,322 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 162,723 | 103,141 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 162,723 | 103,141 |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | ||
Notes, Fair Value | 54,354 | 80,254 |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 54,354 | |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 0 | 80,254 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | ||
Notes, Fair Value | 10,814 | 31,993 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 10,814 | 0 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 0 | 31,993 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | ||
Notes, Fair Value | 13,091 | 106,499 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 13,091 | $ 106,499 |
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||
Notes, Fair Value | 64,465 | |
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | |
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | |
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | $ 64,465 |
Note 21 - Fair Value of Finan_8
Note 21 - Fair Value of Financial Instruments - Fair Value of Notes (Details) (Parentheticals) | 12 Months Ended | |||||
Oct. 31, 2020 | Oct. 31, 2019 | Mar. 25, 2020 | Jan. 31, 2020 | Dec. 10, 2019 | Jan. 15, 2019 | |
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Debt Instrument, Maturity Date | Jul. 15, 2022 | Jul. 15, 2022 | ||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10.50% | 10.50% | 10.50% | 10.50% | 10.50% | |
Debt Instrument, Maturity Date | Jul. 15, 2024 | Jul. 15, 2024 | ||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | ||
Debt Instrument, Maturity Date | Nov. 15, 2025 | Nov. 15, 2025 | ||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 7.75% | 7.75% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10.50% | 10.50% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||||||
Debt Instrument, Stated Interest Rate | 11.25% | 11.25% | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 11.25% | 11.25% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 13.5% 2026 Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 13.50% | 13.50% | ||||
Debt Instrument, Maturity Date | Feb. 1, 2026 | Feb. 1, 2026 | ||||
The 5.0% 2040 Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 5.00% | 5.00% | ||||
Debt Instrument, Maturity Date | Feb. 1, 2040 | Feb. 1, 2040 | ||||
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Unsecured Senior Term Loan [Member] | ||||||
Debt Instrument, Maturity Date | Feb. 1, 2027 | Feb. 1, 2027 | ||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Senior Secured Term Loan [Member] | ||||||
Debt Instrument, Maturity Date | Jan. 31, 2028 | Jan. 31, 2028 |
Note 21 - Fair Value of Finan_9
Note 21 - Fair Value of Financial Instruments - Fair Value of Notes (2) (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Notes, Fair Value | $ 1,241,570 | $ 1,310,638 |
Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 173,046 | 356,429 |
Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 1,068,524 | 954,209 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | ||
Notes, Fair Value | 107,878 | 189,430 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 107,878 | 189,430 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | ||
Notes, Fair Value | 67,941 | 166,999 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 166,999 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 67,941 | 0 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 353,500 | 350,000 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 353,500 | 350,000 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 274,558 | 282,322 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 274,558 | 282,322 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 162,723 | 103,141 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 162,723 | 103,141 |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | ||
Notes, Fair Value | 54,354 | 80,254 |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 54,354 | |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 0 | 80,254 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | ||
Notes, Fair Value | 10,814 | 31,993 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 10,814 | 0 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 0 | 31,993 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | ||
Notes, Fair Value | 13,091 | 106,499 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | $ 13,091 | $ 106,499 |
Note 21 - Fair Value of Fina_10
Note 21 - Fair Value of Financial Instruments - Fair Value of Notes (2) (Details) (Parentheticals) | 12 Months Ended | |||||
Oct. 31, 2020 | Oct. 31, 2019 | Mar. 25, 2020 | Jan. 31, 2020 | Dec. 10, 2019 | Jan. 15, 2019 | |
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Debt Instrument, Maturity Date | Jul. 15, 2022 | Jul. 15, 2022 | ||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10.50% | 10.50% | 10.50% | 10.50% | 10.50% | |
Debt Instrument, Maturity Date | Jul. 15, 2024 | Jul. 15, 2024 | ||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 7.75% | 7.75% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10.50% | 10.50% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||||||
Debt Instrument, Stated Interest Rate | 11.25% | 11.25% | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 11.25% | 11.25% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 13.5% 2026 Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 13.50% | 13.50% | ||||
Debt Instrument, Maturity Date | Feb. 1, 2026 | Feb. 1, 2026 | ||||
The 5.0% 2040 Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 5.00% | 5.00% | ||||
Debt Instrument, Maturity Date | Feb. 1, 2040 | Feb. 1, 2040 | ||||
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Unsecured Senior Term Loan [Member] | ||||||
Debt Instrument, Maturity Date | Feb. 1, 2027 | Feb. 1, 2027 |
Note 22 - Unaudited Summarize_3
Note 22 - Unaudited Summarized Consolidated Quarterly Information - Summarized Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2020 | |
Revenues | $ 683,358 | $ 628,136 | $ 538,351 | $ 494,056 | $ 713,590 | $ 482,041 | $ 440,691 | $ 380,594 | $ 2,343,901 | $ 2,016,916 | $ 1,991,233 | |
Expenses | 641,449 | 619,269 | 539,209 | 509,660 | 677,429 | 491,412 | 461,393 | 406,558 | ||||
Inventory impairment and land option write-offs | 2,611 | 2,364 | 1,010 | 2,828 | 2,687 | 1,435 | 1,462 | 704 | 8,813 | 6,288 | 3,501 | |
Gain (loss) on extinguishment of debt | 0 | 4,055 | (174) | 9,456 | (42,436) | 0 | 0 | 0 | 13,337 | (42,436) | (7,536) | |
Income from unconsolidated joint ventures | 3,146 | 5,658 | 6,221 | 1,540 | 8,376 | 3,742 | 7,252 | 9,562 | 16,565 | 28,932 | 24,033 | |
Income (loss) before income taxes | 42,444 | 16,216 | 4,179 | (7,436) | (586) | (7,064) | (14,912) | (17,106) | 55,403 | (39,668) | 8,146 | $ 23,800 |
State and federal income tax provision | 1,810 | 853 | 100 | 1,712 | 1,221 | 537 | 345 | 346 | 4,475 | 2,449 | 3,626 | |
Net income (loss) | $ 40,634 | $ 15,363 | $ 4,079 | $ (9,148) | $ (1,807) | $ (7,601) | $ (15,257) | $ (17,452) | $ 50,928 | $ (42,117) | $ 4,520 | |
Net income (loss) per common share (in dollars per share) | $ 5.97 | $ 2.27 | $ 0.63 | $ (1.49) | $ (0.30) | $ (1.27) | $ (2.56) | $ (2.93) | $ 7.48 | $ (7.06) | $ 0.73 | |
Weighted-average number of common shares outstanding (in shares) | 6,221 | 6,201 | 6,172 | 6,161 | ||||||||
Net income (loss) per common share (in dollars per share) | $ 5.54 | $ 2.16 | $ 0.60 | $ (1.49) | $ 7.03 | $ (7.06) | $ 0.72 | |||||
Weighted-average number of common shares outstanding (in shares) | 6,699 | 6,518 | 6,432 | 6,161 | 6,584 | 5,968 | 6,072 | |||||
Weighted-average number of common shares outstanding (in shares) | 5,982 | 5,971 | 5,962 | 5,958 | 6,189 | 5,968 | 5,941 |