Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jan. 31, 2017 | Mar. 03, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | HOVNANIAN ENTERPRISES INC | |
Entity Central Index Key | 357,294 | |
Trading Symbol | hov | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 132,110,001 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,251,061 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 | |
Cash and cash equivalents | $ 201,780 | $ 346,765 | |
Restricted cash and cash equivalents | 24,200 | 22,900 | |
Assets | 2,145,296 | 2,354,956 | [1] |
Income taxes receivable – including net deferred tax benefits | 283,322 | 283,633 | [1] |
Liabilities | 2,273,576 | 2,483,466 | [1] |
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at January 31, 2017 and at October 31, 2016 | 135,299 | 135,299 | [1] |
Paid in capital – common stock | 706,509 | 706,137 | [1] |
Accumulated deficit | (856,326) | (856,183) | [1] |
Treasury stock – at cost - 11,760,763 shares of Class A common stock and 691,748 shares of Class B common stock at January 31, 2017 and October 31, 2016 | (115,360) | (115,360) | [1] |
Total stockholders’ equity deficit | (128,280) | (128,510) | [1] |
Total liabilities and equity | 2,145,296 | 2,354,956 | [1] |
Common Class A [Member] | |||
Common stock | 1,439 | 1,438 | [1] |
Common Class B [Member] | |||
Common stock | 159 | 159 | [1] |
Homebuilding [Member] | |||
Cash and cash equivalents | 195,830 | 339,773 | [1] |
Restricted cash and cash equivalents | 1,786 | 3,914 | [1] |
Sold and unsold homes and lots under development | 945,153 | 899,082 | [1] |
Land and land options held for future development or sale | 176,701 | 175,301 | [1] |
Consolidated inventory not owned | 171,572 | 208,701 | [1] |
Total inventories | 1,293,426 | 1,283,084 | [1] |
Investments in and advances to unconsolidated joint ventures | 111,351 | 100,502 | |
Receivables, deposits and notes, net | 45,982 | 49,726 | [1] |
Property, plant and equipment, net | 49,998 | 50,332 | [1] |
Prepaid expenses and other assets | 50,352 | 46,762 | [1] |
Assets | 1,748,725 | 1,874,093 | [1] |
Accounts payable and other liabilities | 319,661 | 369,228 | [1] |
Customers’ deposits | 35,953 | 37,429 | [1] |
Liabilities from inventory not owned, net of debt issuance costs | 124,394 | 150,179 | [1] |
Revolving credit facility | 52,000 | 52,000 | [1] |
Notes payable and term loan, net of discount and debt issuance costs | 1,567,673 | 1,605,758 | [1] |
Liabilities | 2,187,206 | 2,311,021 | [1] |
Homebuilding [Member] | Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | |||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | 73,528 | 82,115 | |
Homebuilding [Member] | Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | |||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | 13,997 | 14,312 | [1] |
Financial Services [Member] | |||
Assets | 113,249 | 197,230 | [1] |
Liabilities | $ 86,370 | $ 172,445 | [1] |
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Millions | Jan. 31, 2017 | Oct. 31, 2016 | [1] |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 | |
Preferred stock, shares issued (in shares) | 5,600 | 5,600 | |
Preferred stock, shares outstanding (in shares) | 5,600 | 5,600 | |
Preferred stock, liquidation preference | $ 140 | $ 140 | |
Common Class A [Member] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, shares issued (in shares) | 143,870,764 | 143,806,775 | |
Common stock, shares held in Treasury (in shares) | 11,760,763 | 11,760,763 | |
Common Class B [Member] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 | |
Common stock, shares issued (in shares) | 15,942,809 | 15,942,809 | |
Common stock, shares held in Treasury (in shares) | 691,748 | 691,748 | |
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | ||
Total revenues | $ 552,009 | $ 575,605 | |
Inventory impairment loss and land option write-offs | 3,184 | 11,681 | |
Corporate general and administrative | 15,656 | 16,321 | |
Other interest | [1],[2] | 22,627 | 21,225 |
Other operations | 1,587 | 1,384 | |
Total expenses | 557,666 | 587,319 | |
Gain on extinguishment of debt | 7,646 | ||
Loss from unconsolidated joint ventures | (1,666) | (1,480) | |
Income (loss) before income taxes | 323 | (13,194) | |
Tax provision (benefit) | 466 | 2,979 | |
Net loss | $ (143) | $ (16,173) | |
Loss per common share, basic (in dollars per share) | $ 0 | $ (0.11) | |
Weighted-average number of common shares outstanding, basic (in shares) | 147,535 | 147,139 | |
Loss per common share, assuming dilution (in dollars per share) | $ 0 | $ (0.11) | |
Weighted-average number of common shares outstanding, assuming dilution (in shares) | 147,535 | 147,139 | |
State and Local Jurisdiction [Member] | |||
Tax provision (benefit) | $ (18) | $ 4,319 | |
Domestic Tax Authority [Member] | |||
Tax provision (benefit) | 484 | (1,340) | |
Homebuilding [Member] | |||
Sale of homes | 531,415 | 556,775 | |
Land sales and other revenues | 7,745 | 604 | |
Total homebuilding | 539,160 | 557,379 | |
Cost of sales, excluding interest | 445,027 | 464,146 | |
Cost of sales interest | 18,322 | 16,843 | |
Inventory impairment loss and land option write-offs | 3,184 | 11,681 | |
Total cost of sales | 466,533 | 492,670 | |
Selling, general and administrative | 44,408 | 47,504 | |
Total homebuilding expenses | 510,941 | 540,174 | |
Total expenses | 550,811 | 579,104 | |
Financial Services [Member] | |||
Financial services | 12,849 | 18,226 | |
Financial services | 6,855 | 8,215 | |
Total expenses | $ 6,855 | $ 8,215 | |
[1] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: | ||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt. Also includes interest on completed homes and land in planning, which does not qualify for capitalization, and therefore is expensed. |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity (Unaudited) - 3 months ended Jan. 31, 2017 - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total | |
Balance (in shares) at Oct. 31, 2016 | 132,046,012 | 15,251,061 | 5,600 | |||||
Balance at Oct. 31, 2016 | $ 1,438 | $ 159 | $ 135,299 | $ 706,137 | $ (856,183) | $ (115,360) | $ (128,510) | [1] |
Stock options, amortization and issuances | 138 | 138 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 63,989 | |||||||
Restricted stock amortization, issuances and forfeitures | $ 1 | 234 | 235 | |||||
Net loss | (143) | (143) | ||||||
Balance (in shares) at Jan. 31, 2017 | 132,110,001 | 15,251,061 | 5,600 | |||||
Balance at Jan. 31, 2017 | $ 1,439 | $ 159 | $ 135,299 | $ 706,509 | $ (856,326) | $ (115,360) | $ (128,280) | |
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (143) | $ (16,173) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 1,013 | 865 |
Compensation from stock options and awards | 452 | 1,545 |
Amortization of bond discounts and deferred financing costs | 4,129 | 2,971 |
Gain on sale and retirement of property and assets | (56) | (81) |
Loss from unconsolidated joint ventures | 1,666 | 1,480 |
Distributions of earnings from unconsolidated joint ventures | 185 | |
Gain on extinguishment of debt | (7,646) | |
Inventory impairment and land option write-offs | 3,184 | 11,681 |
Deferred income tax provision | 20 | 2,616 |
(Increase) decrease in assets: | ||
Origination of mortgage loans | (229,537) | (275,617) |
Sale of mortgage loans | 312,027 | 240,976 |
Restricted cash, receivables, prepaids, deposits and other assets | 4,833 | (2,877) |
Inventories | (13,526) | (19,089) |
State income tax payable | 291 | 275 |
Customers’ deposits | (1,476) | (1,785) |
Accounts payable, accrued interest and other accrued liabilities | (49,500) | (11,868) |
Net cash provided by (used in) operating activities | 25,916 | (65,081) |
Cash flows from investing activities: | ||
Proceeds from sale of property and assets | 60 | 93 |
Purchase of property, equipment and other fixed assets and acquisitions | (560) | (1,253) |
Investments in and advances to unconsolidated joint ventures | (14,639) | (11,497) |
Distributions of capital from unconsolidated joint ventures | 1,939 | 2,132 |
Net cash used in investing activities | (15,525) | (10,554) |
Cash flows from financing activities: | ||
Proceeds from mortgages and notes | 54,396 | 57,592 |
Payments related to mortgages and notes | (63,307) | (72,985) |
Proceeds from model sale leaseback financing programs | 747 | 9,339 |
Payments related to model sale leaseback financing programs | (4,268) | (7,110) |
Proceeds from land bank financing programs | 4,788 | 138,314 |
Payments related to land bank financing programs | (27,650) | (3,240) |
Payments for senior notes and senior amortizing notes | (33,086) | (175,040) |
Net proceeds (payments) related to mortgage warehouse lines of credit | (86,058) | 31,481 |
Deferred financing cost from land bank financing program and note issuances | (938) | (3,883) |
Net cash (used in) financing activities | (155,376) | (25,532) |
Net decrease in cash and cash equivalents | (144,985) | (101,167) |
Cash and cash equivalents balance, beginning of period | 346,765 | 253,745 |
Cash and cash equivalents balance, end of period | 201,780 | 152,578 |
Supplemental disclosure of cash flow: | ||
Interest, net of capitalized interest (see Note 3 to the Condensed Consolidated Financial Statements) | 24,019 | 33,000 |
Income taxes | 154 | 88 |
Related to Mortgage Company [Member] | ||
Cash flows from investing activities: | ||
(Increase) decrease in restricted cash | (2,324) | (81) |
Related to Letters of Credit [Member] | ||
Cash flows from investing activities: | ||
(Increase) decrease in restricted cash | $ (1) | $ 52 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Basis of Presentation Hovnanian Enterprises, Inc. and Subsidiaries (the “Company”, “we”, “us” or “our”) has reportable segments consisting of six 16). The accompanying unaudited Condensed Consolidated Financial Statements include our accounts and those of all wholly-owned subsidiaries after elimination of all significant intercompany balances and transactions. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10 10 10 October 31, 2016. October 31, 2016 Reclassifications In November 2016, 2015 03, $24.5 $1.3 $3.0 $20.2 11) We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 November 2016, 2015 15 835 30)” 2015 15”), 2015 03. 2015 15 |
Note 2 - Stock Compensation
Note 2 - Stock Compensation | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 2. Stock Compensation The Company’s total stock-based compensation expense was $0.5 $1.5 three January 31, 2017 2016, $ 0.1 three January 31, 2017 2016. |
Note 3 - Interest
Note 3 - Interest | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Home Building Interest [Text Block] | 3. Interest Interest costs incurred, expensed and capitalized were: Three Months Ended January 31, (In thousands) 2017 2016 Interest capitalized at beginning of period $96,688 $123,898 Plus interest incurred(1) 38,699 41,959 Less cost of sales interest expensed 18,322 16,843 Less other interest expensed(2)(3) 22,627 21,225 Less interest transferred to unconsolidated joint venture(4) - 10,676 Interest capitalized at end of period(5) $94,438 $117,113 (1) Data does not include interest incurred by our mortgage and finance subsidiaries. (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. Also includes interest on completed homes and land in planning, which does not qualify for capitalization, and therefore is expensed. (3) Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Three Months Ended January 31, (In thousands) 2017 2016 Other interest expensed $22,627 $21,225 Interest paid by our mortgage and finance subsidiaries 629 559 Decrease in accrued interest 763 11,216 Cash paid for interest, net of capitalized interest $24,019 $33,000 (4) Represents capitalized interest which was included as part of the assets transferred to the joint venture the Company entered into in November 2015, 17. (5) Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Note 4 - Reduction of Inventory
Note 4 - Reduction of Inventory to Fair Value | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Inventory Impairments and Land Option Cost Write-offs [Text Block] | 4. Reduction of Inventory to Fair Value We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they may first 2017, 18.3% 19.8%. first 2016, no six may During the three January 31, 2017 2016, 390 512 three January 31, 2017 2016 six eleven $13.8 $46.2 three January 31, 2017 2016, one four $1.2 $17.3 20%. three January 31, 2017 2016, $2.7 five $12.6 $9.7 six $28.7 The Condensed Consolidated Statement of Operations line entitled “Homebuilding: Inventory impairment loss and land option write-offs” also includes write-offs of options and approval, engineering and capitalized interest costs that we record when we redesign communities and/or abandon certain engineering costs and we do not exercise options in various locations because the communities' pro forma profitability is not projected to produce adequate returns on investment commensurate with the risk. Total aggregate write-offs related to these items were $0.5 $2.0 three January 31, 2017 2016, three January 31, 2017 2016 1,061 1,256, first 2017, , in the first 2016. We decide to mothball (or stop development on) certain communities when we determine that the current performance does not justify further investment at the time. When we decide to mothball a community, the inventory is reclassified on our Condensed Consolidated Balance Sheets from “Sold and unsold homes and lots under development” to “Land and land options held for future development or sale.” During the first 2017, not one January 31, 2017 October 31, 2016, 28 29 $69.3 $74.4 $268.0 $296.3 From time to time we enter into option agreements that include specific performance requirements, whereby we are required to purchase a minimum number of lots. Because of our obligation to purchase these lots, for accounting purposes in accordance with Accounting Standards Codification (“ASC”) 360 20 40 38, January 31, 2017 October 31, 2016, no We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a third 360 20 40 38, January 31, 2017 October 31, 2016, $75.5 $79.2 $66.3 $69.7 We have land banking arrangements, whereby we sell our land parcels to the land bankers and they provide us an option to purchase back finished lots on a predetermined schedule. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC 360 20 40 38, January 31, 2017 October 31, 2016, $96.1 $129.5 $58.1 $8 0.5 |
Note 5 - Variable Interest Enti
Note 5 - Variable Interest Entities | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 5. Variable Interest Entities The Company enters into land and lot option purchase contracts to procure land or lots for the construction of homes. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms. Under the terms of the option purchase contracts, many of the option deposits are not refundable at the Company's discretion. Under the requirements of ASC 810, may In compliance with ASC 810, 810 January 31, 2017 October 31, 2016, We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at January 31, 2017, $52.5 $914.1 |
Note 6 - Warranty Costs
Note 6 - Warranty Costs | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 6. Warranty Costs General liability insurance for homebuilding companies and their suppliers and subcontractors is very difficult to obtain. The availability of general liability insurance is limited due to a decreased number of insurance companies willing to underwrite for the industry. In addition, those few insurers willing to underwrite liability insurance have significantly increased the premium costs. To date, we have been able to obtain general liability insurance but at higher premium costs with higher deductibles. Our subcontractors and suppliers have advised us that they have also had difficulty obtaining insurance that also provides us coverage. As a result, we have an owner controlled insurance program for certain of our subcontractors whereby the subcontractors pay us an insurance premium (through a reduction of amounts we would otherwise owe such subcontractors for their work on our homes) based on the risk type of the trade. We absorb the liability associated with their work on our homes as part of our overall general liability insurance at no additional cost to us because our existing general liability and construction defect insurance policy and related reserves for amounts under our deductible covers construction defects regardless of whether we or our subcontractors are responsible for the defect. For the three January 31, 2017 2016, $0.9 $1.0 We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible. This accrual is expensed as selling, general and administrative costs. For homes delivered in fiscal 2017 2016, $ 20 2017 2016 $ 0.25 $ 5 2017 2016 $ 21 three January 2017 2016 Three Months Ended January 31, (In thousands) 2017 2016 Balance, beginning of period $121,144 $135,053 Additions – Selling, general and administrative 2,908 4,623 Additions – Cost of sales 3,487 3,382 Charges incurred during the period (9,526 ) (9,669 ) Changes to pre-existing reserves - - Balance, end of period $118,013 $133,389 Warranty accruals are based upon historical experience. We engage a third Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, were less than $0.1 $3.2 three January 2017 2016, first 2016 two . |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingent Liabilities | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 7. Commitments and Contingent Liabilities We are involved in litigation arising in the ordinary course of business, none of which is expected to have a material adverse effect on our financial position, results of operations or cash flows, and we are subject to extensive and complex laws and regulations that affect the development of land and home building, sales and customer financing processes, including zoning, density, building standards and mortgage financing. These laws and regulations often provide broad discretion to the administering governmental authorities. This can delay or increase the cost of development or homebuilding. We also are subject to a variety of local, state, federal and foreign laws and regulations concerning protection of health and the environment, including those regulating the emission or discharge of materials into the environment, the management of stormwater runoff at construction sites, the handling, use, storage and disposal of hazardous substances, impacts to wetlands and other sensitive environments, and the remediation of contamination at properties that we have owned or developed or currently own or are developing (“environmental laws”). The particular environmental laws that apply to any given community vary greatly according to the community site, the site’s environmental conditions and the present and former uses of the site. These environmental laws may may may In March 2013, 1990s. August 2013, may April 2014 We anticipate that increasingly stringent requirements will be imposed on developers and homebuilders in the future. Although we cannot reliably predict the extent of any effect these requirements may |
Note 8 - Restricted Cash and De
Note 8 - Restricted Cash and Deposits | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 8. Restricted Cash and Deposits Cash represents cash deposited in checking accounts. Cash equivalents include certificates of deposit, Treasury bills and government money–market funds with maturities of 90 may, January 31, 2017 October 31, 2016, $6.9 $9.4 Restricted cash and cash equivalents on the Condensed Consolidated Balance Sheets totaled $24.2 $22.9 January 31, 2017 October 31, 2016, 10. (1) $0.1 $20.4 January 31, 2017, $2.2 $15.1 October 31, 2016, (2) $2.0 January 31, 2017 $3.9 October 31, 2016, Total Homebuilding Customers’ deposits are shown as a liability on the Condensed Consolidated Balance Sheets. These liabilities are significantly more than the applicable periods’ restricted cash balances because, in some states, the deposits are not restricted from use and, in other states, we are able to release the majority of these customer deposits to cash by pledging letters of credit and surety bonds. |
Note 9 - Mortgage Loans Held fo
Note 9 - Mortgage Loans Held for Sale | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 9. Mortgage Loans Held for Sale Our mortgage banking subsidiary originates mortgage loans, primarily from the sale of our homes. Such mortgage loans are sold in the secondary third At January 31, 2017 October 31, 2 016, $65.2 $147.4 10). may January 31, 2017 2016, 93 131 The activity in our loan origination reserves during the three January 31, 2017 2016 Three Months Ended January 31, (In thousands) 2017 2016 Loan origination reserves, beginning of period $8,137 $8,025 Provisions for losses during the period 34 41 Adjustments to pre-existing provisions for losses from changes in estimates (3,094 ) (38 ) Loan origination reserves, end of period $5,077 $8,028 |
Note 10 - Mortgages and Notes P
Note 10 - Mortgages and Notes Payable | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Line of Credit [Text Block] | 10. Mortgages and Notes Payable We have nonrecourse mortgage loans for certain communities totaling $73.5 $82.1 January 31, 2017 October 31, 2016, with an aggregate book value of $195.8 $201.8 5.1% 4.9% January 31, 2017 October 31, 2016, $14.0 $14.3 January 31, 2017 October 31, 2016, 8.8% January 31, 2017 October 31, 2016, January 31, 2017, October 31 $1.0 2017, $1.4 2018, $1.5 2019, $1.7 2020, $1.8 2021 $6.6 2021. In June 2013, five $75.0 8.0% 2019, 11. two first January 31, 2017 $52.0 $16.0 October 31, 2016, $52.0 $17.9 January 31, 2017, In addition to the Credit Facility, we have certain stand–alone cash collateralized letter of credit agreements and facilities under which there was a total of $1.7 January 31, 2017 October 31, 2016, January 31, 2017 October 31, 2016, $1.7 Our wholly owned mortgage banking subsidiary, K. Hovnanian American Mortgage, LLC (“K. Hovnanian Mortgage”), originates mortgage loans primarily from the sale of our homes. Such mortgage loans and related servicing rights are sold in the secondary January 31, 2017 January 30, 2018, $50.0 0.78% January 31, 2017, 2.5% 2.63% January 31, 2017 October 31, 2016, $25.7 $44.1 K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Customers Bank (“Customers Master Repurchase Agreement”), which was amended on February 17, 2017, that is a short-term borrowing facility that provides up to $50.0 February 16, 2018. 2.5% 5.25% January 31, 2017 October 31, 2016, $19.1 $38.8 K. Hovnanian Mortgage has a third February 23, 2016, $50.0 February 21, 2017. 1.37% January 31, 2017, 2.25% 2.5%. January 31, 2017. October 31, 2016 $32.9 . In February 2014, December 23, 2016 December 22, 2017. $50.0 0.25%, 2.5%. January 31, 2017 October 31, 2016, $14.7 $29.8 The Chase Master Repurchase Agreement, Customers Master Repurchase Agreement, Credit Suisse 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 consider any of these covenants to be substantive or material. As of January 31, 2017, |
Note 11 - Senior Notes and Term
Note 11 - Senior Notes and Term Loan | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 11. Senior Notes and Term Loan Senior Notes and Term Loan balances as of January 31, 2017 October 31, 2016, (In thousands) January 31, 2017(1) (2) October 31, 2016(1) (2) Senior Secured Term Loan, net of debt issuance costs $72,623 $72,646 Senior Secured Notes: 7.25% Senior Secured First Lien Notes due October 15, 2020 $570,101 $569,641 10.0% Senior Secured Second Lien Notes due October 15, 2018 (net of discount) 69,372 68,951 9.125% Senior Secured Second Lien Notes due November 15, 2020 143,439 143,337 9.5% Senior Secured Notes due November 15, 2020 74,192 74,140 2.0% Senior Secured Notes due November 1, 2021 (net of discount) 53,031 53,022 5.0% Senior Secured Notes due November 1, 2021 (net of discount) 132,425 131,998 Total Senior Secured Notes, net of debt issuance costs $1,042,560 $1,041,089 Senior Notes: 7.0% Senior Notes due January 15, 2019 $131,603 $148,800 8.0% Senior Notes due November 1, 2019 233,667 247,348 Total Senior Notes, net of debt issuance costs $365,270 $396,148 11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs $3,911 $6,152 Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs $51,647 $57,298 (1) January 31, 2017 October 31, 2016 $31.7 $32.4 . (2) 1, 2015 03 January 2017. 2017 $20.2 October 31, 2016, January 31, 2017 $18.6 General Except for K. Hovnanian, the issuer of the notes, our home mortgage subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures and certain of our title insurance subsidiaries, we and each of our subsidiaries are guarantors of the senior secured term loan and senior secured, senior, senior amortizing and senior exchangeable notes outstanding at January 31, 2017 5.0% 2021 “5.0% 2021 2.0% 2021 “2.0% 2021 5.0% 2021 “2021 9.5% 2020 2021 The Term Loan Credit Agreement (defined below) and the indentures governing the notes outstanding at January 31, 2017 may January 15, 2021 February 15, 2021 January 31, 2017, Under the terms of our debt agreements, we have the right to make certain redemptions and prepayments and, depending on market conditions and covenant restrictions, may may tender If our consolidated fixed charge coverage ratio, as defined in the agreements governing our debt instruments (other than the senior exchangeable notes discussed below), is less than 2.0 1.0, 7.625% As a result of our evaluation of our geographic operating footprint as it relates to our strategic objectives, we decided to exit the Minneapolis, MN and Raleigh, NC markets, and in the third 2016, Any other liquidity-enhancing transaction will depend on identifying counterparties, negotiation of documentation and applicable closing conditions and any required approvals. Due to covenant restrictions in our debt instruments, we are currently limited in the amount of debt we can incur that does not qualify as refinancing indebtedness with certain maturity requirements as discussed above (a limitation that we expect to continue for the foreseeable future), even if market conditions would otherwise be favorable, which could also impact our ability to grow our business. Fiscal 2017 During the three January 31, 2017, $17.5 7.0% 2019, $14.0 8.0% 2019 6,925 $6.9 $30.8 $7.8 Secured Obligations Our $75.0 August 1, 2019 7.0% 2019 “7.0% October 15, 2018, October 15, 2018, 7.0% January 15, 2021, October 15, 2018) 7.0% 6.0%, September 8, 2018, may February 1, 2019 1.0% February 1, 2019 Our 10.0% “10.0% October 15, 2018, 10.0% February 15 August 15 February 15, 2017, February 1 August 1, may 10.0% July 15, 2018 100% July 15, 2018, may 10.0% 100% may 35% 10.0% July 15, 2018 110.00% Our 9.5% “9.5% November 15, 2020, 9.50% February 15 August 15 February 15, 2017, February 1 August 1, may 9.5% November 15, 2018 100% November 15, 2018, may 9.5% 100% may 35% 9.5% November 15, 2018 109.50% All of K. Hovnanian’s obligations under the Term Loan Facility and the 10.0% first 9.125% 10.0% 10.0% second 9.125% 9.5% 9.5% first 2021 The 5.0% 2021 2.0% 2021 2021 100.0% 1% The guarantees of the JV Holdings Secured Group with respect to the 2021 9.5% first January 31, 2017, (1) $57.4 (2) $140.0 may (3) $97.1 January 31, 2017; 2021 K. Hovnanian also has outstanding 7.25% 2020 9.125% 2020 "9.125% "2020 may 103.625% October 15, 2016, 101.813% October 15, 2017 100% October 15, 2018. may 9.125% 104.563% November 15, 2016, 102.281% November 15, 2017 100% November 15, 2018. The First Lien Notes are secured by a first 9.125% 10.0% second At January 31, 2017, 2020 10.0% $587.8 may 2020 10.0% $140.1 January 31, 2017, $1.7 Senior Notes K. Hovnanian’s 7.0% 2019 July 15, 2016 100% may 103.5% July 15, 2016, 101.75% January 15, 2017 100% January 15, 2018. K. Hovnanian’s 8.0% 2019 August 1, 2019 100% August 1, 2019, may 100% Units On October 2, 2012, $100,000,000 6.0% 100,000 $1,000 (1) zero December 1, 2017 $768.51 $1,000 (2) December 1, 2017 $231.49 11.0% December 1, 2017. may may Each Senior Exchangeable Note had an initial principal amount of $768.51 $1,000 5.17% may 5:00 December 1, 2017. 185.5288 $1,000 $5.39 January 31, 2017, 18,305 3.4 first 2013. September 2016, 20,823 $20.6 November 2016, 6,925 $6.9 On each June 1 December 1 $30.00 June 1, 2013 $39.83 6.0% $1,000 11.0% |
Note 12 - Per Share Calculation
Note 12 - Per Share Calculation | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 12. Per Share Calculation Basic earnings per share is computed by dividing net income (loss) (the “numerator”) by the weighted-average number of common shares outstanding, adjusted for nonvested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of options and nonvested shares of restricted stock, as well as common shares issuable upon exchange of our Senior Exchangeable Notes issued as part of our 6.0% All outstanding nonvested shares that contain nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two two There were no three January 31, 2017 2016. three January 31, 2017 2016, 10.0 15.2 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 included in the computation of diluted earnings per share were 4.8 6.4 three January 31, 2017 2016, |
Note 13 - Preferred Stock
Note 13 - Preferred Stock | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | 13. Preferred Stock On July 12, 2005, 5,600 7.625% $25,000 7.625%. 1/1000th three January 31, 2017 2016, not |
Note 14 - Common Stock
Note 14 - Common Stock | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Common Stock [Text Block] | 14. Common Stock Each share of Class A Common Stock entitles its holder to one ten 110% one one On August 4, 2008, 382 382. 382 5% 50 382. one August 15, 2008. August 15, 2008, 4.9% 4.9% may August 15, 2018, December 5, 2008. December 5, 2008, 382 5% 5% 5% 5% 5% On July 3, 2001, 4 no three January 31, 2017. January 31, 2017, may 0.5 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The total income tax expense of $0.5 three January 31, 2017 $3.0 three January 31, 2016 Deferred federal and state income tax assets primarily represent the deferred tax benefits arising from temporary differences between book and tax income which will be recognized in future years as an offset 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 As of October 31, 2014, fourth 2014. As expected at the time of that conclusion, our earnings have continued to improve such that we have not been and are currently not in a three January 31, 2017. 740, one three $628.1 January 31, 2017 |
Note 16 - Operating and Reporti
Note 16 - Operating and Reporting Segments | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 16. Operating and Reporting Segments Our operating segments are components of our business for which discrete financial information is available and reviewed regularly by the chief operating decision maker, our Chief Executive Officer, to evaluate performance and make operating decisions. Based on this criteria, each of our communities qualifies as an operating segment, and therefore, it is impractical to provide segment disclosures for this many segments. As such, we have aggregated the homebuilding operating segments into six Our homebuilding operating segments are aggregated into reportable segments based primarily upon geographic proximity, similar regulatory environments, land acquisition characteristics and similar methods used to construct and sell homes. Our reportable segments consist of the following six 2016, third 2016, Homebuilding: (1) Northeast (New Jersey and Pennsylvania) (2) Mid-Atlantic (Delaware, Maryland, Virginia, Washington D.C. and West Virginia) (3) Midwest (Illinois and Ohio) (4) Southeast (Florida, Georgia and South Carolina) (5) Southwest (Arizona and Texas) (6) West (California) Financial Services Operations of the Company’s Homebuilding segments primarily include the sale and construction of single-family attached and detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. In addition, from time to time, operations of the homebuilding segments include sales of land. Operations of the Company’s Financial Services segment include mortgage banking and title services provided to the homebuilding operations’ customers. We do not typically retain or service mortgages that we originate but rather sell the mortgages and related servicing rights to investors. Corporate and unallocated primarily represents operations at our headquarters in Red Bank, New Jersey. This includes our executive offices, information services, human resources, corporate accounting, training, treasury, process redesign, internal audit, construction services, and administration of insurance, quality and safety. It also includes interest income and interest expense resulting from interest incurred that cannot be capitalized in inventory in the Homebuilding segments, as well as the gains or losses on extinguishment of debt from any debt repurchases or exchanges. Evaluation of segment performance is based primarily on operating earnings from continuing operations before provision for income taxes (“Income (loss) before income taxes”). Income (loss) before income taxes for the Homebuilding segments consist of revenues generated from the sales of homes and land, income (loss) from unconsolidated entities, management fees and other income, less the cost of homes and land sold, selling, general and administrative expenses and interest expense. Income before income taxes for the Financial Services segment consist of revenues generated from mortgage financing, title insurance and closing services, less the cost of such services and selling, general and administrative expenses incurred by the Financial Services segment. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent stand-alone entity during the periods presented. Financial information relating to the Company’s segment operations was as follows: Three Months Ended January 31, (In thousands) 2017 2016 Revenues: Northeast $58,575 $72,504 Mid-Atlantic 100,226 93,820 Midwest 43,702 91,920 Southeast 56,584 39,252 Southwest 183,409 204,325 West 96,531 55,578 Total homebuilding 539,027 557,399 Financial services 12,849 18,226 Corporate and unallocated 133 (20 ) Total revenues $552,009 $575,605 Income (loss) before income taxes: Northeast $906 $2,734 Mid-Atlantic 3,882 2,622 Midwest 712 (5,559 ) Southeast (294 ) (1,834 ) Southwest 11,923 16,369 West (754 ) (5,968 ) Homebuilding income before income taxes 16,375 8,364 Financial services 5,994 10,011 Corporate and unallocated (22,046 ) (31,569 ) Income (loss) before income taxes $323 $(13,194 ) (In thousands) January 31, 2017 October 31, 2016 Assets: Northeast $211,610 $219,363 Mid-Atlantic 292,866 292,899 Midwest 107,213 111,596 Southeast 235,600 226,124 Southwest 371,940 341,472 West 254,379 269,400 Total homebuilding 1,473,608 1,460,854 Financial services 113,249 197,230 Corporate and unallocated (1) 558,439 696,872 Total assets $2,145,296 $2,354,956 (1) $283.3 $283.6 , including deferred tax assets , as of January 31, 2017 October 31, 2016, |
Note 17 - Investments in Uncons
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 17. Investments in Unconsolidated Homebuilding and Land Development Joint Ventures We enter into homebuilding and land development joint ventures from time to time as a means of accessing lot positions, expanding our market opportunities, establishing strategic alliances, managing our risk profile, leveraging our capital base and enhancing returns on capital. Our homebuilding joint ventures are generally entered into with third third third In November 2015, $25.7 third 2016, eight one $29.8 first 2017, one three $11.2 The tables set forth below summarize the combined financial information related to our unconsolidated homebuilding and land development joint ventures that are accounted for under the equity method. (Dollars in thousands) January 31, 2017 Homebuilding Land Development Total Assets: Cash and cash equivalents $39,100 $446 $39,546 Inventories 594,106 11,199 605,305 Other assets 29,202 - 29,202 Total assets $662,408 $11,645 $674,053 Liabilities and equity: Accounts payable and accrued liabilities $84,920 $943 $85,863 Notes payable 265,561 2,159 267,720 Total liabilities 350,481 3,102 353,583 Equity of: Hovnanian Enterprises, Inc. 97,074 3,330 100,404 Others 214,853 5,213 220,066 Total equity 311,927 8,543 320,470 Total liabilities and equity $662,408 $11,645 $674,053 Debt to capitalization ratio 46 % 20 % 46 % (Dollars in thousands) October 31, 2016 Homebuilding Land Development Total Assets: Cash and cash equivalents $48,542 $1,478 $50,020 Inventories 516,947 11,010 527,957 Other assets 25,865 - 25,865 Total assets $591,354 $12,488 $603,842 Liabilities and equity: Accounts payable and accrued liabilities $72,302 $1,812 $74,114 Notes payable 214,911 2,261 217,172 Total liabilities 287,213 4,073 291,286 Equity of: Hovnanian Enterprises, Inc. 88,379 3,220 91,599 Others 215,762 5,195 220,957 Total equity 304,141 8,415 312,556 Total liabilities and equity $591,354 $12,488 $603,842 Debt to capitalization ratio 41 % 21 % 41 % As of January 31, 2017 October 31, 2016, $10.9 $8.9 $111.4 $100.5 January 31, 2017 October 31, 2016, For the Three Months Ended January 31, 2017 (In thousands) Homebuilding Land Development Total Revenues $64,937 $1,202 $66,139 Cost of sales and expenses (67,226 ) (982 ) (68,208 ) Joint venture net (loss) income $(2,289 ) $220 $(2,069 ) Our share of net (loss) income $(1,681 ) $110 $(1,571 ) For the Three Months Ended January 31, 2016 (In thousands) Homebuilding Land Development Total Revenues $20,266 $1,096 $21,362 Cost of sales and expenses (24,179 ) (1,223 ) (25,402 ) Joint venture net loss $(3,913 ) $(127 ) $(4,040 ) Our share of net loss $(1,496 ) $(64 ) $(1,560 ) “(Loss) income from unconsolidated joint ventures” is reflected as a separate line in the accompanying Condensed Consolidated Statements of Operations and reflects our proportionate share of the income or loss of these unconsolidated homebuilding and land development joint ventures. The difference between our share of the income or loss from these unconsolidated joint ventures in the tables above compared to the Condensed Consolidated Statements of Operations is due primarily to the reclassification of the intercompany portion of management fee income from certain joint ventures and the deferral of income for lots purchased by us from certain joint ventures. To compensate us for the administrative services we provide as the manager of certain joint ventures we receive a management fee based on a percentage of the applicable joint venture’s revenues. These management fees, which totaled $2.2 $0.8 three January 31, 2017 2016, In determining whether or not we must consolidate joint ventures that we manage, we assess whether the other partners have specific rights to overcome the presumption of control by us as the manager of the joint venture. In most cases, the presumption is overcome because the joint venture agreements require that both partners agree on establishing the operations and capital decisions of the partnership, including budgets in the ordinary course of business. Typically, our unconsolidated joint ventures obtain separate project specific mortgage financing. The amount of financing is generally targeted to be no more than 50% 46%. 810 10 |
Note 18 - Recent Accounting Pro
Note 18 - Recent Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 18. Recent Accounting Pronouncements In May 2014, 2014 09, 606), 2014 09”). 2014 09 (1) (2) (3) (4) (5) 2014 09 605, August 2015, 2015 14 one 2014 09, November 1, 2018. December 15, 2016. In August 2014, 2014 15, 2014 15”), one 2014 15 October 31, 2017. 2014 15 In February 2016, 2016 02, 842)” 2016 02”), 2016 02 12 2016 02 November 1, 2019. In March 2016, 2016 09, 718): 2016 09”). 2016 09 2016 09 November 1, 2017. 2016 09 second 2016. In August 2016, 2016 15, 230): 2016 15”). 2016 15 2016 15 November 1, 2018. In October 2016, 2016 16, 740): 2016 16”). 2016 16 2016 16 November 1, 2018. In October 2016, 2016 17, 810): 2016 17”). 2016 17 2016 17 November 1, 2017. In November 2016, 2016 18, 230): 2016 18”). 2016 18 2016 18 November 1, 2018. |
Note 19 - Fair Value of Financi
Note 19 - Fair Value of Financial Instruments | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 19. Fair Value of Financial Instruments ASC 820, Level 1: Level 2: Level 3: Our financial instruments measured at fair value on a recurring basis are summarized below: (In thousands) Fair Value Hierarchy Fair Value at January 31, 2017 Fair Value at October 31, 2016 Mortgage loans held for sale (1) Level 2 $82,486 $165,077 Interest rate lock commitments Level 2 (10 ) (80 ) Forward contracts Level 2 117 86 Total $82,593 $165,083 (1) $72.0 $149.4 January 31, 2017 October 31, 2016, We elected the fair value option for our loans held for sale for mortgage loans originated subsequent to October 31, 2008, 825, The Financial Services segment had a pipeline of loan applications in process of $526.7 January 31, 2017. $63.6 January 31, 2017. 60 The Financial Services segment uses investor commitments and forward sales of mandatory MBS to hedge its mortgage-related interest rate exposure. These instruments involve, to varying degrees, elements of credit and interest rate risk. Credit risk is managed by entering into MBS forward commitments, option contracts with investment banks, federally regulated bank affiliates and loan sales transactions with permanent investors meeting the segment’s credit standards. The segment’s risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At January 31, 2017, $29.0 March 21, 2017. The assets accounted for using the fair value option are initially measured at fair value. Gains and losses from initial measurement and subsequent changes in fair value are recognized in the Financial Services segment’s income. The changes in fair values that are included in income are shown, by financial instrument and financial statement line item, below: Three Months Ended January 31, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $(3,024 ) $70 $31 Three Months Ended January 31, 2016 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $5,007 $407 $(1,143 ) The Company's assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs during the three January 31, 2017 2016. Nonfinancial Assets Three Months Ended January 31, 2017 (In thousands) Fair Value Hierarchy Pre- Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $6,302 $(2,587 ) $3,715 Land and land options held for future development or sale Level 3 $6,326 $(81 ) $6,245 Nonfinancial Assets Three Months Ended January 31, 2016 (In thousands) Fair Value Hierarchy Pre- Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $28,528 $(9,669 ) $18,859 Land and land options held for future development or sale Level 3 $157 $(48 ) $109 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 $2.7 $9.7 three January 31, 2017 2016, 4 The fair value of our cash equivalents and restricted cash and cash equivalents approximates their carrying amount, based on Level 1 The fair value of our borrowings under the revolving credit and term loan facilities approximates their carrying amount based on level 2 2 $316.3 $251.7 January 31, 2017 October 31, 2016, The fair value of each of the senior secured notes (all series in the aggregate), the senior amortizing notes and the senior exchangeable notes is estimated based on third 3 $953.3 $4.0 $52.3 January 31, 2017. October 31, 2016, $883.0 $6.3 $55.2 |
Note 20 - Financial Information
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Condensed Financial Statements [Text Block] | 20. Financial Information of Subsidiary Issuer and Subsidiary Guarantors Hovnanian Enterprises, Inc., the parent company (the “Parent”), is the issuer of publicly traded common stock and preferred stock, which is represented by depository shares. One of its wholly owned subsidiaries, K. Hovnanian Enterprises, Inc. (the “Subsidiary Issuer”), acts as a finance entity that, as of January 31, 2017, $1,067.0 ($1,042.6 $368.5 ($365.3 $4.0 ($3.9 $51.9 6.0% ($51.6 In addition to the Parent, each of the wholly owned subsidiaries of the Parent other than the Subsidiary Issuer (collectively, “Notes Guarantors”), with the exception of our home mortgage subsidiaries, certain of our title insurance subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures (collectively, the “Nonguarantor Subsidiaries”), have guaranteed fully and unconditionally, on a joint and several basis, the obligations of the Subsidiary Issuer to pay principal and interest under the senior secured notes (other than the 2021 9.5% 100% 2021 9.5% 11). The senior amortizing notes and senior exchangeable notes have been registered under the Securities Act of 1933, 7.0% 2019, 8.0% 2019 11) 7.0% 2019, 8.0% 2019 7.0% 2019, 8.0% 2019, 2020 10.0% The following Condensed Consolidating Financial Statements present the results of operations, financial position and cash flows of (i) the Parent, (ii) the Subsidiary Issuer, (iii) the Notes Guarantors, (iv) the Nonguarantor Subsidiaries and (v) the eliminations to arrive at the information for Hovnanian Enterprises, Inc. on a consolidated basis. HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING BALANCE SHEET JANUARY 31, 2017 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $- $147,033 $1,216,610 $385,082 $- $1,748,725 Financial services 19,392 93,857 113,249 Income taxes receivable 130,251 (51,663 ) 204,702 32 283,322 Intercompany receivable 1,312,141 7,353 (1,319,494 ) - Investments in and amounts due from consolidated subsidiaries 357,276 (357,276 ) - Total assets $130,251 $1,407,511 $1,797,980 $486,324 $(1,676,770 ) $2,145,296 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $2,179 $545 $502,953 $61,856 $- $567,533 Financial services 19,197 67,173 86,370 Notes payable and term loan and Revolving credit facility 1,616,009 3,648 16 1,619,673 Intercompany payable 157,245 1,162,249 (1,319,494 ) - Amounts due to consolidated subsidiaries 99,107 9,089 (108,196 ) - Stockholders’ (deficit) equity (128,280 ) (218,132 ) 109,933 357,279 (249,080 ) (128,280 ) Total liabilities and equity $130,251 $1,407,511 $1,797,980 $486,324 $(1,676,770 ) $2,145,296 HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING BALANCE SHEET OCTOBER 31, 2016 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $- $271,216 $1,194,267 $408,610 $ - $1,874,093 Financial services 13,453 183,777 197,230 Income taxes receivable 115,940 (58,597 ) 226,258 32 283,633 Intercompany receivable 1,227,334 88,112 (1,315,446 ) - Investments in and amounts due from consolidated subsidiaries 4,914 437,628 (442,542 ) - Total assets $115,940 $1,444,867 $1,871,606 $680,531 $(1,757,988 ) $2,354,956 LIABILITIES AND EQUITY: Homebuilding $3,506 $1,118 $565,163 $83,476 $- $653,263 Financial services 13,338 159,107 172,445 Notes payable and term loan and Revolving credit facility 1,652,357 5,084 317 1,657,758 Intercompany payable 157,993 1,157,453 (1,315,446 ) - Amounts due to consolidated subsidiaries 82,951 (82,951 ) - Stockholders’ (deficit) equity (128,510 ) (208,608 ) 130,568 437,631 (359,591 ) (128,510 ) Total liabilities and equity $115,940 $1,444,867 $1,871,606 $680,531 $(1,757,988 ) $2,354,956 HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED JANUARY 31, 2017 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $- $- $455,372 $83,788 $- $539,160 Financial services 2,498 10,351 12,849 Intercompany charges 22,940 (22,940 ) - Total revenues - 22,940 457,870 94,139 (22,940 ) 552,009 Expenses: Homebuilding 528 33,042 444,593 72,648 550,811 Financial services 1,713 5,142 6,855 Intercompany charges 22,940 (22,940 ) - Total expenses 528 33,042 469,246 77,790 (22,940 ) 557,666 Gain on extinguishment of debt 7,646 7,646 Income (loss) from unconsolidated joint ventures 16 (1,682 ) (1,666 ) (Loss) income before income taxes (528 ) (2,456 ) (11,360 ) 14,667 - 323 State and federal income tax (benefit) provision (16,541 ) (6,935 ) 23,942 466 Equity in (loss) income of consolidated subsidiaries (16,156 ) (14,003 ) 14,667 15,492 - Net (loss) income $(143 ) $(9,524 ) $(20,635 ) $14,667 $15,492 $(143 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED JANUARY 31, 2016 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $- $- $474,910 $82,469 $- $557,379 Financial services 2,245 15,981 18,226 Intercompany charges 34,540 (34,540 ) - Total revenues - 34,540 477,155 98,450 (34,540 ) 575,605 Expenses: Homebuilding 1,940 35,811 466,620 74,733 579,104 Financial services 1,624 6,591 8,215 Intercompany charges 34,463 77 (34,540 ) - Total expenses 1,940 35,811 502,707 81,401 (34,540 ) 587,319 Income (loss) from unconsolidated joint ventures 16 (1,496 ) (1,480 ) (Loss) income before income taxes (1,940 ) (1,271 ) (25,536 ) 15,553 - (13,194 ) State and federal income tax (benefit) provision (14,550 ) (6,918 ) 24,447 2,979 Equity in (loss) income of consolidated subsidiaries (28,783 ) (13,510 ) 15,553 26,740 - Net (loss) income $(16,173 ) $(7,863 ) $(34,430 ) $15,553 $26,740 $(16,173 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS THREE MONTHS ENDED JANUARY 31, 2017 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $(143 ) $(9,524 ) $(20,635 ) $14,667 $15,492 $(143 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities (15,265 ) (10,126 ) 66,555 387 (15,492 ) 26,059 Net cash (used in) provided by operating activities (15,408 ) (19,650 ) 45,920 15,054 - 25,916 Cash flows from investing activities: Proceeds from sale of property and assets 60 60 Purchase of property, equipment & other fixed assets and acquisitions (560 ) (560 ) Increase in restricted cash related to mortgage company (2,324 ) (2,324 ) Decrease in restricted cash related to letters of credit (1 ) (1 ) Investments in and advances to unconsolidated joint ventures (93 ) (94 ) (14,452 ) (14,639 ) Distributions of capital from unconsolidated joint ventures 231 1,708 1,939 Intercompany investing activities (70,802 ) 70,802 - Net cash (used in) provided by investing activities - (70,896 ) (363 ) (15,068 ) 70,802 (15,525 ) Cash flows from financing activities: Net payments from mortgages and notes 2,154 (11,065 ) (8,911 ) Net proceeds from model sale leaseback financing programs (2,205 ) (1,316 ) (3,521 ) Net proceeds from land bank financing programs (18,371 ) (4,491 ) (22,862 ) Payments related to senior notes and senior amortizing notes (33,086 ) (33,086 ) Net proceeds related to mortgage warehouse lines of credit (86,058 ) (86,058 ) Deferred financing cost from land bank financing program and note issuances (528 ) (397 ) (13 ) (938 ) Intercompany financing activities 15,408 (25,365 ) 80,759 (70,802 ) - Net cash provided by (used in) financing activities 15,408 (33,614 ) (44,184 ) (22,184 ) (70,802 ) (155,376 ) Net decrease in cash and cash equivalents - (124,160 ) 1,373 (22,198 ) - (144,985 ) Cash and cash equivalents balance, beginning of period 261,553 (395 ) 85,607 346,765 Cash and cash equivalents balance, end of period $- $137,393 $978 $63,409 $- $201,780 HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS THREE MONTHS ENDED JANUARY 31, 2016 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $(16,173 ) $(7,863 ) $(34,430 ) $15,553 $26,740 $(16,173 ) Adjustments to reconcile net (loss) income to net cash used in operating activities (11,768 ) (16,045 ) 80,623 (74,978 ) (26,740 ) (48,908 ) Net cash used in operating activities (27,941 ) (23,908 ) 46,193 (59,425 ) - (65,081 ) Cash flows from investing activities: Proceeds from sale of property and assets 72 21 93 Purchase of property, equipment & other fixed assets and acquisitions (1,223 ) (30 ) (1,253 ) Increase in restricted cash related to mortgage company (81 ) (81 ) Decrease in restricted cash related to mortgage company 52 52 Investments in and advances to unconsolidated joint ventures (130 ) (865 ) (10,502 ) (11,497 ) Distribution of capital from unconsolidated joint ventures 80 2,052 2,132 Intercompany investing activities 117,284 (117,284 ) - Net cash used in investing activities - 117,206 (1,936 ) (8,540 ) (117,284 ) (10,554 ) Cash flows from financing activities: Net proceeds from mortgages and notes (10,035 ) (5,358 ) (15,393 ) Net proceeds from model sale leaseback financing programs 2,118 111 2,229 Net proceeds from land bank financing programs 106,813 28,261 135,074 Payments related to senior notes and senior amortizing notes (175,040 ) (175,040 ) Net proceeds related to mortgage warehouse lines of credit 31,481 31,481 Deferred financing cost from land bank financing program and note issuances (2,496 ) (1,387 ) (3,883 ) Intercompany financing activities 27,941 (143,237 ) (1,988 ) 117,284 - Net cash provided by financing activities 27,941 (175,040 ) (46,837 ) 51,120 117,284 (25,532 ) Net decrease in cash - (81,742 ) (2,580 ) (16,845 ) - (101,167 ) Cash and cash equivalents balance, beginning of period 199,318 (4,800 ) 59,227 253,745 Cash and cash equivalents balance, end of period $- $117,576 $(7,380 ) $42,382 $- $152,578 |
Note 21 - Transactions With Rel
Note 21 - Transactions With Related Parties | 3 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 21. Transactions with Related Parties During the three January 31, 2017 2016, $0.2 $0.3 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Hovnanian Enterprises, Inc. and Subsidiaries (the “Company”, “we”, “us” or “our”) has reportable segments consisting of six 16). The accompanying unaudited Condensed Consolidated Financial Statements include our accounts and those of all wholly-owned subsidiaries after elimination of all significant intercompany balances and transactions. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10 10 10 October 31, 2016. October 31, 2016 |
Reclassification, Policy [Policy Text Block] | Reclassifications In November 2016, 2015 03, $24.5 $1.3 $3.0 $20.2 11) We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 November 2016, 2015 15 835 30)” 2015 15”), 2015 03. 2015 15 |
Note 3 - Interest (Tables)
Note 3 - Interest (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Notes Tables | |
Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block] | Three Months Ended January 31, (In thousands) 2017 2016 Interest capitalized at beginning of period $96,688 $123,898 Plus interest incurred(1) 38,699 41,959 Less cost of sales interest expensed 18,322 16,843 Less other interest expensed(2)(3) 22,627 21,225 Less interest transferred to unconsolidated joint venture(4) - 10,676 Interest capitalized at end of period(5) $94,438 $117,113 |
Cash Paid for Interest Net of Capitalized Interest [Table Text Block] | Three Months Ended January 31, (In thousands) 2017 2016 Other interest expensed $22,627 $21,225 Interest paid by our mortgage and finance subsidiaries 629 559 Decrease in accrued interest 763 11,216 Cash paid for interest, net of capitalized interest $24,019 $33,000 |
Note 6 - Warranty Costs (Tables
Note 6 - Warranty Costs (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended January 31, (In thousands) 2017 2016 Balance, beginning of period $121,144 $135,053 Additions – Selling, general and administrative 2,908 4,623 Additions – Cost of sales 3,487 3,382 Charges incurred during the period (9,526 ) (9,669 ) Changes to pre-existing reserves - - Balance, end of period $118,013 $133,389 |
Note 9 - Mortgage Loans Held 31
Note 9 - Mortgage Loans Held for Sale (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Three Months Ended January 31, (In thousands) 2017 2016 Loan origination reserves, beginning of period $8,137 $8,025 Provisions for losses during the period 34 41 Adjustments to pre-existing provisions for losses from changes in estimates (3,094 ) (38 ) Loan origination reserves, end of period $5,077 $8,028 |
Note 11 - Senior Notes and Te32
Note 11 - Senior Notes and Term Loan (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | (In thousands) January 31, 2017(1) (2) October 31, 2016(1) (2) Senior Secured Term Loan, net of debt issuance costs $72,623 $72,646 Senior Secured Notes: 7.25% Senior Secured First Lien Notes due October 15, 2020 $570,101 $569,641 10.0% Senior Secured Second Lien Notes due October 15, 2018 (net of discount) 69,372 68,951 9.125% Senior Secured Second Lien Notes due November 15, 2020 143,439 143,337 9.5% Senior Secured Notes due November 15, 2020 74,192 74,140 2.0% Senior Secured Notes due November 1, 2021 (net of discount) 53,031 53,022 5.0% Senior Secured Notes due November 1, 2021 (net of discount) 132,425 131,998 Total Senior Secured Notes, net of debt issuance costs $1,042,560 $1,041,089 Senior Notes: 7.0% Senior Notes due January 15, 2019 $131,603 $148,800 8.0% Senior Notes due November 1, 2019 233,667 247,348 Total Senior Notes, net of debt issuance costs $365,270 $396,148 11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs $3,911 $6,152 Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs $51,647 $57,298 |
Note 16 - Operating and Repor33
Note 16 - Operating and Reporting Segments (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (In thousands) January 31, 2017 October 31, 2016 Assets: Northeast $211,610 $219,363 Mid-Atlantic 292,866 292,899 Midwest 107,213 111,596 Southeast 235,600 226,124 Southwest 371,940 341,472 West 254,379 269,400 Total homebuilding 1,473,608 1,460,854 Financial services 113,249 197,230 Corporate and unallocated (1) 558,439 696,872 Total assets $2,145,296 $2,354,956 |
Operating Segments [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended January 31, (In thousands) 2017 2016 Revenues: Northeast $58,575 $72,504 Mid-Atlantic 100,226 93,820 Midwest 43,702 91,920 Southeast 56,584 39,252 Southwest 183,409 204,325 West 96,531 55,578 Total homebuilding 539,027 557,399 Financial services 12,849 18,226 Corporate and unallocated 133 (20 ) Total revenues $552,009 $575,605 Income (loss) before income taxes: Northeast $906 $2,734 Mid-Atlantic 3,882 2,622 Midwest 712 (5,559 ) Southeast (294 ) (1,834 ) Southwest 11,923 16,369 West (754 ) (5,968 ) Homebuilding income before income taxes 16,375 8,364 Financial services 5,994 10,011 Corporate and unallocated (22,046 ) (31,569 ) Income (loss) before income taxes $323 $(13,194 ) |
Note 17 - Investments in Unco34
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | (Dollars in thousands) January 31, 2017 Homebuilding Land Development Total Assets: Cash and cash equivalents $39,100 $446 $39,546 Inventories 594,106 11,199 605,305 Other assets 29,202 - 29,202 Total assets $662,408 $11,645 $674,053 Liabilities and equity: Accounts payable and accrued liabilities $84,920 $943 $85,863 Notes payable 265,561 2,159 267,720 Total liabilities 350,481 3,102 353,583 Equity of: Hovnanian Enterprises, Inc. 97,074 3,330 100,404 Others 214,853 5,213 220,066 Total equity 311,927 8,543 320,470 Total liabilities and equity $662,408 $11,645 $674,053 Debt to capitalization ratio 46 % 20 % 46 % (Dollars in thousands) October 31, 2016 Homebuilding Land Development Total Assets: Cash and cash equivalents $48,542 $1,478 $50,020 Inventories 516,947 11,010 527,957 Other assets 25,865 - 25,865 Total assets $591,354 $12,488 $603,842 Liabilities and equity: Accounts payable and accrued liabilities $72,302 $1,812 $74,114 Notes payable 214,911 2,261 217,172 Total liabilities 287,213 4,073 291,286 Equity of: Hovnanian Enterprises, Inc. 88,379 3,220 91,599 Others 215,762 5,195 220,957 Total equity 304,141 8,415 312,556 Total liabilities and equity $591,354 $12,488 $603,842 Debt to capitalization ratio 41 % 21 % 41 % For the Three Months Ended January 31, 2017 (In thousands) Homebuilding Land Development Total Revenues $64,937 $1,202 $66,139 Cost of sales and expenses (67,226 ) (982 ) (68,208 ) Joint venture net (loss) income $(2,289 ) $220 $(2,069 ) Our share of net (loss) income $(1,681 ) $110 $(1,571 ) For the Three Months Ended January 31, 2016 (In thousands) Homebuilding Land Development Total Revenues $20,266 $1,096 $21,362 Cost of sales and expenses (24,179 ) (1,223 ) (25,402 ) Joint venture net loss $(3,913 ) $(127 ) $(4,040 ) Our share of net loss $(1,496 ) $(64 ) $(1,560 ) |
Note 19 - Fair Value of Finan35
Note 19 - Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | (In thousands) Fair Value Hierarchy Fair Value at January 31, 2017 Fair Value at October 31, 2016 Mortgage loans held for sale (1) Level 2 $82,486 $165,077 Interest rate lock commitments Level 2 (10 ) (80 ) Forward contracts Level 2 117 86 Total $82,593 $165,083 |
Fair Value, Option, Quantitative Disclosures [Table Text Block] | Three Months Ended January 31, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $(3,024 ) $70 $31 Three Months Ended January 31, 2016 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $5,007 $407 $(1,143 ) |
Fair Value Measurements, Nonrecurring [Table Text Block] | Three Months Ended January 31, 2017 (In thousands) Fair Value Hierarchy Pre- Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $6,302 $(2,587 ) $3,715 Land and land options held for future development or sale Level 3 $6,326 $(81 ) $6,245 Three Months Ended January 31, 2016 (In thousands) Fair Value Hierarchy Pre- Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $28,528 $(9,669 ) $18,859 Land and land options held for future development or sale Level 3 $157 $(48 ) $109 |
Note 20 - Financial Informati36
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $- $147,033 $1,216,610 $385,082 $- $1,748,725 Financial services 19,392 93,857 113,249 Income taxes receivable 130,251 (51,663 ) 204,702 32 283,322 Intercompany receivable 1,312,141 7,353 (1,319,494 ) - Investments in and amounts due from consolidated subsidiaries 357,276 (357,276 ) - Total assets $130,251 $1,407,511 $1,797,980 $486,324 $(1,676,770 ) $2,145,296 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $2,179 $545 $502,953 $61,856 $- $567,533 Financial services 19,197 67,173 86,370 Notes payable and term loan and Revolving credit facility 1,616,009 3,648 16 1,619,673 Intercompany payable 157,245 1,162,249 (1,319,494 ) - Amounts due to consolidated subsidiaries 99,107 9,089 (108,196 ) - Stockholders’ (deficit) equity (128,280 ) (218,132 ) 109,933 357,279 (249,080 ) (128,280 ) Total liabilities and equity $130,251 $1,407,511 $1,797,980 $486,324 $(1,676,770 ) $2,145,296 Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $- $271,216 $1,194,267 $408,610 $ - $1,874,093 Financial services 13,453 183,777 197,230 Income taxes receivable 115,940 (58,597 ) 226,258 32 283,633 Intercompany receivable 1,227,334 88,112 (1,315,446 ) - Investments in and amounts due from consolidated subsidiaries 4,914 437,628 (442,542 ) - Total assets $115,940 $1,444,867 $1,871,606 $680,531 $(1,757,988 ) $2,354,956 LIABILITIES AND EQUITY: Homebuilding $3,506 $1,118 $565,163 $83,476 $- $653,263 Financial services 13,338 159,107 172,445 Notes payable and term loan and Revolving credit facility 1,652,357 5,084 317 1,657,758 Intercompany payable 157,993 1,157,453 (1,315,446 ) - Amounts due to consolidated subsidiaries 82,951 (82,951 ) - Stockholders’ (deficit) equity (128,510 ) (208,608 ) 130,568 437,631 (359,591 ) (128,510 ) Total liabilities and equity $115,940 $1,444,867 $1,871,606 $680,531 $(1,757,988 ) $2,354,956 |
Condensed Income Statement [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $- $- $455,372 $83,788 $- $539,160 Financial services 2,498 10,351 12,849 Intercompany charges 22,940 (22,940 ) - Total revenues - 22,940 457,870 94,139 (22,940 ) 552,009 Expenses: Homebuilding 528 33,042 444,593 72,648 550,811 Financial services 1,713 5,142 6,855 Intercompany charges 22,940 (22,940 ) - Total expenses 528 33,042 469,246 77,790 (22,940 ) 557,666 Gain on extinguishment of debt 7,646 7,646 Income (loss) from unconsolidated joint ventures 16 (1,682 ) (1,666 ) (Loss) income before income taxes (528 ) (2,456 ) (11,360 ) 14,667 - 323 State and federal income tax (benefit) provision (16,541 ) (6,935 ) 23,942 466 Equity in (loss) income of consolidated subsidiaries (16,156 ) (14,003 ) 14,667 15,492 - Net (loss) income $(143 ) $(9,524 ) $(20,635 ) $14,667 $15,492 $(143 ) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $- $- $474,910 $82,469 $- $557,379 Financial services 2,245 15,981 18,226 Intercompany charges 34,540 (34,540 ) - Total revenues - 34,540 477,155 98,450 (34,540 ) 575,605 Expenses: Homebuilding 1,940 35,811 466,620 74,733 579,104 Financial services 1,624 6,591 8,215 Intercompany charges 34,463 77 (34,540 ) - Total expenses 1,940 35,811 502,707 81,401 (34,540 ) 587,319 Income (loss) from unconsolidated joint ventures 16 (1,496 ) (1,480 ) (Loss) income before income taxes (1,940 ) (1,271 ) (25,536 ) 15,553 - (13,194 ) State and federal income tax (benefit) provision (14,550 ) (6,918 ) 24,447 2,979 Equity in (loss) income of consolidated subsidiaries (28,783 ) (13,510 ) 15,553 26,740 - Net (loss) income $(16,173 ) $(7,863 ) $(34,430 ) $15,553 $26,740 $(16,173 ) |
Condensed Cash Flow Statement [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $(143 ) $(9,524 ) $(20,635 ) $14,667 $15,492 $(143 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities (15,265 ) (10,126 ) 66,555 387 (15,492 ) 26,059 Net cash (used in) provided by operating activities (15,408 ) (19,650 ) 45,920 15,054 - 25,916 Cash flows from investing activities: Proceeds from sale of property and assets 60 60 Purchase of property, equipment & other fixed assets and acquisitions (560 ) (560 ) Increase in restricted cash related to mortgage company (2,324 ) (2,324 ) Decrease in restricted cash related to letters of credit (1 ) (1 ) Investments in and advances to unconsolidated joint ventures (93 ) (94 ) (14,452 ) (14,639 ) Distributions of capital from unconsolidated joint ventures 231 1,708 1,939 Intercompany investing activities (70,802 ) 70,802 - Net cash (used in) provided by investing activities - (70,896 ) (363 ) (15,068 ) 70,802 (15,525 ) Cash flows from financing activities: Net payments from mortgages and notes 2,154 (11,065 ) (8,911 ) Net proceeds from model sale leaseback financing programs (2,205 ) (1,316 ) (3,521 ) Net proceeds from land bank financing programs (18,371 ) (4,491 ) (22,862 ) Payments related to senior notes and senior amortizing notes (33,086 ) (33,086 ) Net proceeds related to mortgage warehouse lines of credit (86,058 ) (86,058 ) Deferred financing cost from land bank financing program and note issuances (528 ) (397 ) (13 ) (938 ) Intercompany financing activities 15,408 (25,365 ) 80,759 (70,802 ) - Net cash provided by (used in) financing activities 15,408 (33,614 ) (44,184 ) (22,184 ) (70,802 ) (155,376 ) Net decrease in cash and cash equivalents - (124,160 ) 1,373 (22,198 ) - (144,985 ) Cash and cash equivalents balance, beginning of period 261,553 (395 ) 85,607 346,765 Cash and cash equivalents balance, end of period $- $137,393 $978 $63,409 $- $201,780 Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $(16,173 ) $(7,863 ) $(34,430 ) $15,553 $26,740 $(16,173 ) Adjustments to reconcile net (loss) income to net cash used in operating activities (11,768 ) (16,045 ) 80,623 (74,978 ) (26,740 ) (48,908 ) Net cash used in operating activities (27,941 ) (23,908 ) 46,193 (59,425 ) - (65,081 ) Cash flows from investing activities: Proceeds from sale of property and assets 72 21 93 Purchase of property, equipment & other fixed assets and acquisitions (1,223 ) (30 ) (1,253 ) Increase in restricted cash related to mortgage company (81 ) (81 ) Decrease in restricted cash related to mortgage company 52 52 Investments in and advances to unconsolidated joint ventures (130 ) (865 ) (10,502 ) (11,497 ) Distribution of capital from unconsolidated joint ventures 80 2,052 2,132 Intercompany investing activities 117,284 (117,284 ) - Net cash used in investing activities - 117,206 (1,936 ) (8,540 ) (117,284 ) (10,554 ) Cash flows from financing activities: Net proceeds from mortgages and notes (10,035 ) (5,358 ) (15,393 ) Net proceeds from model sale leaseback financing programs 2,118 111 2,229 Net proceeds from land bank financing programs 106,813 28,261 135,074 Payments related to senior notes and senior amortizing notes (175,040 ) (175,040 ) Net proceeds related to mortgage warehouse lines of credit 31,481 31,481 Deferred financing cost from land bank financing program and note issuances (2,496 ) (1,387 ) (3,883 ) Intercompany financing activities 27,941 (143,237 ) (1,988 ) 117,284 - Net cash provided by financing activities 27,941 (175,040 ) (46,837 ) 51,120 117,284 (25,532 ) Net decrease in cash - (81,742 ) (2,580 ) (16,845 ) - (101,167 ) Cash and cash equivalents balance, beginning of period 199,318 (4,800 ) 59,227 253,745 Cash and cash equivalents balance, end of period $- $117,576 $(7,380 ) $42,382 $- $152,578 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) $ in Millions | 3 Months Ended |
Jan. 31, 2017USD ($) | |
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Nonrecourse Mortgages Secured by Inventory, Liabilities from Inventory not Owned and Notes Payable and Term Loan [Member] | October 31, 2016 [Member] | |
Prior Period Reclassification Adjustment | $ 24.5 |
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Nonrecourse Mortgages Secured by Inventory [Member] | October 31, 2016 [Member] | |
Prior Period Reclassification Adjustment | 1.3 |
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Liabilities from Inventory not Owned [Member] | October 31, 2016 [Member] | |
Prior Period Reclassification Adjustment | 3 |
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Notes Payable and Term Loan [Member] | October 31, 2016 [Member] | |
Prior Period Reclassification Adjustment | $ 20.2 |
Homebuilding [Member] | |
Number of Reportable Segments | 6 |
Note 2 - Stock Compensation (De
Note 2 - Stock Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Allocated Share-based Compensation Expense, Net of Tax | $ 0.5 | $ 1.5 |
Employee Stock Option [Member] | ||
Allocated Share-based Compensation Expense | $ 0.1 | $ 0.1 |
Note 3 - Interest - Interest Co
Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | ||
Interest capitalized at beginning of period | $ 96,688 | $ 123,898 | |
Plus interest incurred | [1] | 38,699 | 41,959 |
Less cost of sales interest expensed | 18,322 | 16,843 | |
Less other interest expensed | [2],[3] | 22,627 | 21,225 |
Less interest transferred to unconsolidated joint venture | [4] | 10,676 | |
Interest capitalized at end of period | [5] | $ 94,438 | $ 117,113 |
[1] | Data does not include interest incurred by our mortgage and finance subsidiaries. | ||
[2] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: | ||
[3] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt. Also includes interest on completed homes and land in planning, which does not qualify for capitalization, and therefore is expensed. | ||
[4] | Represents capitalized interest which was included as part of the assets transfered to the joint venture the Company entered into in November 2015, as discussed in Note 17. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction. | ||
[5] | Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Note 3 - Interest - Cash Paid f
Note 3 - Interest - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | ||
Less other interest expensed | [1],[2] | $ 22,627 | $ 21,225 |
Interest paid by our mortgage and finance subsidiaries | 629 | 559 | |
Decrease in accrued interest | 763 | 11,216 | |
Cash paid for interest, net of capitalized interest | $ 24,019 | $ 33,000 | |
[1] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: | ||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt. Also includes interest on completed homes and land in planning, which does not qualify for capitalization, and therefore is expensed. |
Note 4 - Reduction of Invento41
Note 4 - Reduction of Inventory to Fair Value (Details Textual) | 3 Months Ended | |||
Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2016USD ($) | ||
Number of Communities Evaluated for Impairment | 390 | 512 | ||
Number of Communities Performed Detailed Impairment Calculations | 6 | 11 | ||
Carrying Value of Communities Tested for Impairment | $ 13,800,000 | $ 46,200,000 | ||
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount By Less Than 20 Percent | 1 | 4 | ||
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount by Less than 20 Percent | $ 1,200,000 | $ 17,300,000 | ||
Percentage Undiscounted Cash Flow Exceeds Carrying Amount | 20.00% | |||
Impairment of Real Estate | $ 2,700,000 | $ 9,700,000 | ||
Homebuilding [Member] | ||||
Number of Communities Impaired | 5 | 6 | ||
Impairment of Real Estate | $ 2,700,000 | $ 9,700,000 | ||
PreImpairment Value | 12,600,000 | 28,700,000 | ||
Land Option Write Offs | $ 500,000 | $ 2,000,000 | ||
Number of Walk Away Lots | 1,061 | 1,256 | ||
Number of Previously Mothballed Communities Sold During the Period | 1 | |||
Number of Communities Mothballed | 28 | 29 | ||
Inventory Real Estate Mothballed Communities | $ 69,300,000 | $ 74,400,000 | ||
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges | 268,000,000 | $ 296,300,000 | ||
Liabilities from Inventory Real Estate Not Owned | $ 124,394,000 | $ 150,179,000 | [1] | |
Number of Communities Mothballed During the Period | 0 | |||
Number of Mothballed Communities Reactivated | 0 | |||
Inventory Real Estate Specific Performance Options | $ 0 | 0 | ||
Homebuilding [Member] | Model Sale Leaseback Financing Arrangements [Member] | ||||
Inventory Real Estate, Other Options | 75,500,000 | 79,200,000 | ||
Liabilities from Inventory Real Estate Not Owned | 66,300,000 | 69,700,000 | ||
Homebuilding [Member] | Land Banking Arrangement [Member] | ||||
Inventory Real Estate, Other Options | 96,100,000 | 129,500,000 | ||
Liabilities from Inventory Real Estate Not Owned | $ 58,100,000 | $ 80,500,000 | ||
Homebuilding [Member] | Real Estate Inventory [Member] | ||||
Fair Value Inputs, Discount Rate | 0.00% | |||
Number of Communities Impaired | 6 | |||
Homebuilding [Member] | Real Estate Inventory [Member] | Minimum [Member] | ||||
Fair Value Inputs, Discount Rate | 18.30% | |||
Homebuilding [Member] | Real Estate Inventory [Member] | Maximum [Member] | ||||
Fair Value Inputs, Discount Rate | 19.80% | |||
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Note 5 - Variable Interest En42
Note 5 - Variable Interest Entities (Details Textual) $ in Millions | Jan. 31, 2017USD ($) |
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 52.5 |
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 914.1 |
Note 6 - Warranty Costs (Detail
Note 6 - Warranty Costs (Details Textual) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2016USD ($) | |
Cash Received from Subcontractors for Owner Controlled Insurance Program | $ 900 | $ 1,000 | |
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 | 21,000 | $ 21,000 | |
Payments by Insurance Companies for Claims | $ 100 | $ 3,200 | |
Homebuilding [Member] | Northeast [Member] | |||
Number of Construction Defect Claims Settled During the Period | 2 |
Note 6 - Warranty Costs - Warra
Note 6 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Balance, beginning of period | $ 121,144 | $ 135,053 |
Charges incurred during the period | (9,526) | (9,669) |
Changes to pre-existing reserves | ||
Balance, end of period | 118,013 | 133,389 |
Selling, General and Administrative Expenses [Member] | ||
Additions | 2,908 | 4,623 |
Cost of Sales [Member] | ||
Additions | $ 3,487 | $ 3,382 |
Note 8 - Restricted Cash and 45
Note 8 - Restricted Cash and Deposits (Details Textual) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 | |
Cash Equivalents, at Carrying Value | $ 6,900 | $ 9,400 | |
Restricted Cash and Cash Equivalents | 24,200 | 22,900 | |
Homebuilding [Member] | |||
Restricted Cash and Cash Equivalents | 1,786 | 3,914 | [1] |
Customer Deposits [Member] | Homebuilding [Member] | |||
Restricted Cash and Cash Equivalents | 100 | 2,200 | |
Customer Deposits [Member] | Financial Services [Member] | |||
Restricted Cash and Cash Equivalents | 20,400 | 15,100 | |
Mortgage Warehouse Lines of Credit [Member] | |||
Restricted Cash and Cash Equivalents | $ 2,000 | $ 3,900 | |
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Note 9 - Mortgage Loans Held 46
Note 9 - Mortgage Loans Held for Sale (Details Textual) $ in Millions | Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jan. 31, 2016 |
Loans Pledged as Collateral | $ 65.2 | $ 147.4 | |
Number of Loans Reserved For | 93 | 131 |
Note 9 - Mortgage Loans Held 47
Note 9 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Loan origination reserves, beginning of period | $ 8,137 | $ 8,025 |
Provisions for losses during the period | 34 | 41 |
Adjustments to pre-existing provisions for losses from changes in estimates | (3,094) | (38) |
Loan origination reserves, end of period | $ 5,077 | $ 8,028 |
Note 10 - Mortgages and Notes48
Note 10 - Mortgages and Notes Payable (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2013 | Jan. 31, 2017 | Oct. 31, 2016 | ||
Letter of Credit [Member] | ||||
Letters of Credit Outstanding, Amount | $ 1,700 | $ 1,700 | ||
Citi Bank [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument, Term | 5 years | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | |||
Debt Instrument Basis Spread on Variable Rate Number of Business Days Prior to First Day of Interest Period Spread Determined | 2 days | |||
Long-term Line of Credit | $ 52,000 | 52,000 | ||
Letters of Credit Outstanding, Amount | 16,000 | 17,900 | ||
JP Morgan Chase Bank [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | |||
Warehouse Agreement Borrowings | $ 25,700 | 44,100 | ||
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument Variable Rate Basis Adjusted London Interbank Offered Rate LIBOR | 0.78% | |||
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.63% | |||
Customers Bank [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
Warehouse Agreement Borrowings | $ 19,100 | 38,800 | ||
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% | |||
Homebuilding [Member] | ||||
Long-term Line of Credit | $ 52,000 | 52,000 | [1] | |
Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | Homebuilding [Member] | ||||
Secured Debt | 73,528 | 82,115 | ||
Debt Instrument, Collateral Amount | $ 195,800 | $ 201,800 | ||
Debt, Weighted Average Interest Rate | 5.10% | 4.90% | ||
Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | Corporate, Non-Segment [Member] | ||||
Secured Debt | $ 14,000 | $ 14,300 | ||
Debt, Weighted Average Interest Rate | 8.80% | 8.80% | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 1,000 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 1,400 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1,500 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 1,700 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 1,800 | |||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 6,600 | |||
Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | Homebuilding [Member] | ||||
Secured Debt | $ 13,997 | $ 14,312 | [1] | |
8.0% Senior Notes Due 2019 [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
The 7.25% 2020 Notes and 9.125% 2020 Notes [Member] | Senior Secured Notes [Member] | Letter of Credit [Member] | Restricted Cash [Member] | ||||
Cash Collateral for Borrowed Securities | $ 1,700 | 1,700 | ||
Credit Suisse Master Repurchase Agreement [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | |||
Warehouse Agreement Borrowings | $ 0 | 32,900 | ||
Debt Instrument Variable Rate Basis Effective Rate | 1.37% | |||
Credit Suisse Master Repurchase Agreement [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Credit Suisse Master Repurchase Agreement [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Comerica Master Repurchase Agreement [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
Warehouse Agreement Borrowings | $ 14,700 | $ 29,800 | ||
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Debt Instrument Variable Rate Basis Floor Rate | 0.25% | |||
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Note 11 - Senior Notes and Te49
Note 11 - Senior Notes and Term Loan (Details Textual) | Nov. 05, 2014 | Jan. 10, 2014 | Jun. 01, 2013USD ($) | Oct. 02, 2012USD ($)$ / sharesshares | Nov. 01, 2011 | Nov. 30, 2016USD ($)shares | Sep. 30, 2016USD ($)shares | Jan. 31, 2017USD ($)shares | Jan. 31, 2016USD ($) | Oct. 31, 2016USD ($) | Sep. 08, 2016USD ($) | |||
Interest Payable | $ 31,700,000 | $ 32,400,000 | ||||||||||||
Debt Issuance Costs, Net | $ 18,600,000 | |||||||||||||
Debt Covenant Fixed Charge Coverage Ratio Minimum | 2 | |||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 7,646,000 | |||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | |||||||||||||
Senior Notes and Senior Exchangeable Note Units [Member] | ||||||||||||||
Debt Instrument, Repurchase Amount | $ 30,800,000 | |||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 7,800,000 | |||||||||||||
Senior Secured Term Loan [Member] | ||||||||||||||
Debt Instrument, Voluntary Prepayment Premium, Aggregate Principal Amount, Percentage | 1.00% | |||||||||||||
Senior Secured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | |||||||||||||
Senior Secured Term Loan [Member] | Base Rate [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.00% | |||||||||||||
First Lien Noes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 103.625% | |||||||||||||
First Lien Noes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 101.813% | |||||||||||||
First Lien Noes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
Second Lien Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 104.563% | |||||||||||||
Second Lien Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.281% | |||||||||||||
Second Lien Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
Senior Amortizing Notes [Member] | ||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 39.83 | $ 30 | ||||||||||||
The 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | [1],[2] | 5.00% | [1],[2] | |||||||||
The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | [1],[2] | 2.00% | [1],[2] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
The 9.50% 2020 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% | |||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | ||||||||||||
Debt Instrument, Repurchased Face Amount | $ 17,500,000 | |||||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 103.50% | |||||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 101.75% | |||||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
The 7.0% 2019 Notes [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | 7.00% | |||||||||||
8.0% Senior Notes Due 2019 [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||||||
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% | 8.00% | ||||||||||||
Debt Instrument, Repurchased Face Amount | $ 14,000,000 | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
The 6.00% Exchangeable Note Units [Member] | Exchangeable Note Units [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||||||
Debt Instrument, Repurchased Face Amount | $ 6,900,000 | |||||||||||||
Debt Instrument, Exchangeable, Number of Units Repurchased | shares | 6,925 | 20,823 | 6,925 | |||||||||||
Debt Instrument, Face Amount | $ 100,000,000 | |||||||||||||
Note Units Number | 100,000 | |||||||||||||
Note Units Stated Amount | $ 1,000 | |||||||||||||
Note Units Initial Principal Amount Exchangeable Note | $ / shares | $ 768.51 | |||||||||||||
Note Units Principal Amount at Maturity | $ / shares | 1,000 | |||||||||||||
Note Units Initial Principal Amount Senior Amortizing Note | $ / shares | $ 231.49 | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.17% | |||||||||||||
Shares Issued Upon Conversion of Convertible Debt | shares | 185.5288 | |||||||||||||
Share Price for Exchangeable Note Conversion | $ / shares | $ 5.39 | |||||||||||||
Senior Exchangeable Notes Exchanged for Class A Common Stock | shares | 18,305 | |||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 3,400,000 | |||||||||||||
Exchangeable Note Unit Face Amount | $ 6,900,000 | $ 20,600,000 | ||||||||||||
Term Loan [Member] | ||||||||||||||
Debt Instrument, Face Amount | $ 75,000,000 | |||||||||||||
The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 10.00% | 10.00% | |||||||||||
The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
The 10.0% 2018 Notes [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 | 110.00% | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||||||||
The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 109.50% | |||||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 35.00% | |||||||||||||
Additional and Market Whole Amount [Member] | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 1.00% | |||||||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Secured Group [Member] | Investment in Joint Ventures [Member] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 97,100,000 | |||||||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member] | ||||||||||||||
Debt Instrument, Collateral Amount | 57,400,000 | |||||||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Real Estate [Member] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 140,000,000 | |||||||||||||
The 7.25% 2020 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | [1],[2] | 7.25% | [1],[2] | |||||||||
The 9.125% 2020 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.125% | 9.125% | [1],[2] | 9.125% | [1],[2] | |||||||||
The 7.25% 2020 Notes, The 9.125% 2020 Notes, and The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 140,100,000 | |||||||||||||
The 7.25% 2020 Notes, The 9.125% 2020 Notes, and The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | Real Estate Inventory [Member] | ||||||||||||||
Debt Instrument, Collateral Amount | 587,800,000 | |||||||||||||
The 7.25% 2020 Notes, The 9.125% 2020 Notes, and The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | Restricted Cash [Member] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 1,700,000 | |||||||||||||
The 11.0% 2017 Amortizing Note [Member] | Senior Amortizing Notes [Member] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | 11.00% | [1],[2] | 11.00% | [1],[2] | |||||||||
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Notes Payable and Term Loan [Member] | October 31, 2016 [Member] | ||||||||||||||
Prior Period Reclassification Adjustment | $ 20,200,000 | |||||||||||||
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of January 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $31.7 million and $32.4 million, respectively. | |||||||||||||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in January 2017. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at January 31, 2017 were $18.6 million. |
Note 11 - Senior Notes and Te50
Note 11 - Senior Notes and Term Loan - Senior Secured, Senior and Senior Subordinated Notes (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 | |
Senior Secured Term Loan [Member] | |||
Senior Notes | [1],[2] | $ 72,623 | $ 72,646 |
Senior Secured Notes [Member] | |||
Senior Notes | [1],[2] | 1,042,560 | 1,041,089 |
Senior Secured Notes [Member] | The 7.25% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 570,101 | 569,641 |
Senior Secured Notes [Member] | The 10.0% 2018 Notes [Member] | |||
Senior Notes | [1],[2] | 69,372 | 68,951 |
Senior Secured Notes [Member] | The 9.125% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 143,439 | 143,337 |
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 74,192 | 74,140 |
Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member] | |||
Senior Notes | [1],[2] | 53,031 | 53,022 |
Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member] | |||
Senior Notes | [1],[2] | 132,425 | 131,998 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||
Senior Notes | [1],[2] | 365,270 | 396,148 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | |||
Senior Notes | [1],[2] | 131,603 | 148,800 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member] | |||
Senior Notes | [1],[2] | 233,667 | 247,348 |
Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member] | |||
Senior Notes | [1],[2] | 3,911 | 6,152 |
Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member] | |||
Senior Notes | [1],[2] | $ 51,647 | $ 57,298 |
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of January 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $31.7 million and $32.4 million, respectively. | ||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in January 2017. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at January 31, 2017 were $18.6 million. |
Note 11 - Senior Notes and Te51
Note 11 - Senior Notes and Term Loan - Senior Secured, Senior and Senior Subordinated Notes (Details) (Parentheticals) | 3 Months Ended | 12 Months Ended | |||||
Jan. 31, 2017 | Oct. 31, 2016 | Oct. 02, 2012 | Nov. 01, 2011 | ||||
Senior Secured Notes [Member] | The 7.25% 2020 Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | [1],[2] | 7.25% | [1],[2] | 7.25% | ||
Debt Instrument, Maturity Date | [1],[2] | Oct. 15, 2020 | Oct. 15, 2020 | ||||
Senior Secured Notes [Member] | The 10.0% 2018 Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 10.00% | 10.00% | ||||
Debt Instrument, Maturity Date | [1],[2] | Oct. 15, 2018 | Oct. 15, 2018 | ||||
Senior Secured Notes [Member] | The 9.125% 2020 Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.125% | [1],[2] | 9.125% | [1],[2] | 9.125% | ||
Debt Instrument, Maturity Date | [1],[2] | Nov. 15, 2020 | Nov. 15, 2020 | ||||
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% | ||||
Debt Instrument, Maturity Date | [1],[2] | Nov. 15, 2020 | Nov. 15, 2020 | ||||
Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | [1],[2] | 2.00% | [1],[2] | 2.00% | ||
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2021 | Nov. 1, 2021 | ||||
Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | [1],[2] | 5.00% | [1],[2] | 5.00% | ||
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2021 | Nov. 1, 2021 | ||||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | 7.00% | ||||
Debt Instrument, Maturity Date | [1],[2] | Jan. 15, 2019 | Jan. 15, 2019 | ||||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 8.00% | 8.00% | ||||
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2019 | Nov. 1, 2019 | ||||
Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | [1],[2] | 11.00% | [1],[2] | 11.00% | ||
Debt Instrument, Maturity Date | [1],[2] | Dec. 1, 2017 | Dec. 1, 2017 | ||||
Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member] | |||||||
Debt Instrument, Maturity Date | [1],[2] | Dec. 1, 2017 | Dec. 1, 2017 | ||||
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of January 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $31.7 million and $32.4 million, respectively. | ||||||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in January 2017. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at January 31, 2017 were $18.6 million. |
Note 12 - Per Share Calculati52
Note 12 - Per Share Calculation (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Exchangeable Note Unit Rate Stated Percentage | 6.00% | |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,000 | 15,200 |
Out of the Money Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,800 | 6,400 |
Non Vested Stock and Outstanding Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Note 13 - Preferred Stock (Deta
Note 13 - Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jul. 12, 2005 | Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 | [1] |
Preferred Stock, Shares Issued | 5,600 | 5,600 | |||
Preferred Class A [Member] | |||||
Preferred Stock, Shares Issued | 5,600 | ||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | ||||
Preferred Stock, Liquidation Preference Per Share | $ 25,000 | ||||
Preferred Stock, Depositary Shares, Number of Shares of Preferred Stock in Each Depositary Share | 0.001 | ||||
Payments of Dividends | $ 0 | $ 0 | |||
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Note 14 - Common Stock (Details
Note 14 - Common Stock (Details Textual) shares in Thousands | 3 Months Ended | ||||
Jan. 31, 2017shares | Dec. 05, 2008 | Aug. 15, 2008 | Aug. 04, 2008 | Jul. 03, 2001shares | |
Common Stock Dividends Percent of Increase from Class A to Class B | 110.00% | ||||
Conversion of Stock From Class B to Class A Conversion Ratio | 1 | ||||
Shareholder Ownership Percentage of Increase | 50.00% | ||||
Minimum [Member] | |||||
Shareholder Ownership Percentage | 5.00% | ||||
Common Class A [Member] | |||||
Common Stock Voting Rights Votes per Share Number | 1 | ||||
Shareholder Ownership Percentage | 4.90% | ||||
Number of Rights | 1 | ||||
Shareholders Pre Existing Ownership Percentage | 5.00% | ||||
Shareholders Current Ownership Percentage | 5.00% | ||||
Shareholders Ownership Percentage on Transfers | 5.00% | ||||
Shareholders Ownership Percentage Threshold | 5.00% | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 4,000 | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 500 | ||||
Stock Repurchased During Period, Shares | 0 | ||||
Common Class B [Member] | |||||
Common Stock Voting Rights Votes per Share Number | 10 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Expense (Benefit) | $ 466 | $ 2,979 |
Deferred Tax Assets, Valuation Allowance | $ 628,100 |
Note 16 - Operating and Repor56
Note 16 - Operating and Reporting Segments (Details Textual) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) | ||
Deferred Tax Assets, Net of Valuation Allowance | $ 283,322 | $ 283,633 | [1] |
Homebuilding [Member] | |||
Number of Reportable Segments | 6 | ||
Corporate and Other [Member] | |||
Deferred Tax Assets, Net of Valuation Allowance | $ 283,300 | $ 283,600 | |
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Note 16 - Operating and Repor57
Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Total revenues | $ 552,009 | $ 575,605 |
(Loss) income before income taxes | 323 | (13,194) |
Corporate, Non-Segment [Member] | ||
Total revenues | 133 | (20) |
(Loss) income before income taxes | (22,046) | (31,569) |
Homebuilding [Member] | Operating Segments [Member] | ||
Total revenues | 539,027 | 557,399 |
(Loss) income before income taxes | 16,375 | 8,364 |
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | ||
Total revenues | 58,575 | 72,504 |
(Loss) income before income taxes | 906 | 2,734 |
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | ||
Total revenues | 100,226 | 93,820 |
(Loss) income before income taxes | 3,882 | 2,622 |
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | ||
Total revenues | 43,702 | 91,920 |
(Loss) income before income taxes | 712 | (5,559) |
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | ||
Total revenues | 56,584 | 39,252 |
(Loss) income before income taxes | (294) | (1,834) |
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | ||
Total revenues | 183,409 | 204,325 |
(Loss) income before income taxes | 11,923 | 16,369 |
Homebuilding [Member] | West [Member] | Operating Segments [Member] | ||
Total revenues | 96,531 | 55,578 |
(Loss) income before income taxes | (754) | (5,968) |
Financial Services [Member] | Operating Segments [Member] | ||
Total revenues | 12,849 | 18,226 |
(Loss) income before income taxes | $ 5,994 | $ 10,011 |
Note 16 - Operating and Repor58
Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 | ||
Assets | $ 2,145,296 | $ 2,354,956 | [1] | |
Corporate, Non-Segment [Member] | ||||
Assets | [2] | 558,439 | 696,872 | |
Homebuilding [Member] | ||||
Assets | 1,748,725 | 1,874,093 | [1] | |
Homebuilding [Member] | Operating Segments [Member] | ||||
Assets | 1,473,608 | 1,460,854 | ||
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | ||||
Assets | 211,610 | 219,363 | ||
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | ||||
Assets | 292,866 | 292,899 | ||
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | ||||
Assets | 107,213 | 111,596 | ||
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | ||||
Assets | 235,600 | 226,124 | ||
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | ||||
Assets | 371,940 | 341,472 | ||
Homebuilding [Member] | West [Member] | Operating Segments [Member] | ||||
Assets | 254,379 | 269,400 | ||
Financial Services [Member] | ||||
Assets | 113,249 | 197,230 | [1] | |
Financial Services [Member] | Operating Segments [Member] | ||||
Assets | $ 113,249 | $ 197,230 | ||
[1] | Derived from the audited balance sheet as of October 31, 2016. | |||
[2] | Includes $283.3 million and $283.6 million of income taxes receivable, including deferred tax assets, as of January 31, 2017 and October 31, 2016, respectively. |
Note 17 - Investments in Unco59
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Nov. 30, 2015USD ($) | Jan. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2016USD ($) | |
Proceeds from Contribution of Land to Joint Venture | $ 11,200 | $ 29,800 | |||
Number of Owned Communities Contributed to the Joint Venture | 1 | 8 | |||
Number of Optioned Communities Contributed to the Joint Venture | 3 | 1 | |||
Joint Venture Financing Percent of Assets | 50.00% | ||||
Joint Venture Total Debt to Capitalization Ratio | 46.00% | ||||
Corporate Joint Venture [Member] | |||||
Advances to Affiliate | $ 10,900 | $ 8,900 | |||
Land Development Venture [Member] | |||||
Proceeds from Contribution of Land to Joint Venture | $ 25,700 | ||||
Homebuilding [Member] | |||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 111,351 | $ 100,502 | |||
Management Fees Revenue | $ 2,200 | $ 800 | |||
Homebuilding [Member] | Corporate Joint Venture [Member] | |||||
Joint Venture Total Debt to Capitalization Ratio | 46.00% | 41.00% |
Note 17 - Investments in Unco60
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 | |
Debt to capitalization ratio | 46.00% | ||
Our share of net (loss) income | $ (1,666) | $ (1,480) | |
Homebuilding [Member] | Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 39,546 | $ 50,020 | |
Inventories | 605,305 | 527,957 | |
Other assets | 29,202 | 25,865 | |
Total assets | 674,053 | 603,842 | |
Accounts payable and accrued liabilities | 85,863 | 74,114 | |
Notes payable | 267,720 | 217,172 | |
Total liabilities | 353,583 | 291,286 | |
Hovnanian Enterprises, Inc. | 100,404 | 91,599 | |
Others | 220,066 | 220,957 | |
Total equity | 320,470 | 312,556 | |
Total liabilities and equity | $ 674,053 | $ 603,842 | |
Debt to capitalization ratio | 46.00% | 41.00% | |
Revenues | $ 66,139 | 21,362 | |
Cost of sales and expenses | (68,208) | (25,402) | |
Joint venture net (loss) income | (2,069) | (4,040) | |
Our share of net (loss) income | (1,571) | (1,560) | |
Homebuilding Venture [Member] | Homebuilding [Member] | Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 39,100 | $ 48,542 | |
Inventories | 594,106 | 516,947 | |
Other assets | 29,202 | 25,865 | |
Total assets | 662,408 | 591,354 | |
Accounts payable and accrued liabilities | 84,920 | 72,302 | |
Notes payable | 265,561 | 214,911 | |
Total liabilities | 350,481 | 287,213 | |
Hovnanian Enterprises, Inc. | 97,074 | 88,379 | |
Others | 214,853 | 215,762 | |
Total equity | 311,927 | 304,141 | |
Total liabilities and equity | $ 662,408 | $ 591,354 | |
Debt to capitalization ratio | 46.00% | 41.00% | |
Revenues | $ 64,937 | 20,266 | |
Cost of sales and expenses | (67,226) | (24,179) | |
Joint venture net (loss) income | (2,289) | (3,913) | |
Our share of net (loss) income | (1,681) | (1,496) | |
Land Development Venture [Member] | Homebuilding [Member] | Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 446 | $ 1,478 | |
Inventories | 11,199 | 11,010 | |
Other assets | |||
Total assets | 11,645 | 12,488 | |
Accounts payable and accrued liabilities | 943 | 1,812 | |
Notes payable | 2,159 | 2,261 | |
Total liabilities | 3,102 | 4,073 | |
Hovnanian Enterprises, Inc. | 3,330 | 3,220 | |
Others | 5,213 | 5,195 | |
Total equity | 8,543 | 8,415 | |
Total liabilities and equity | $ 11,645 | $ 12,488 | |
Debt to capitalization ratio | 20.00% | 21.00% | |
Revenues | $ 1,202 | 1,096 | |
Cost of sales and expenses | (982) | (1,223) | |
Joint venture net (loss) income | 220 | (127) | |
Our share of net (loss) income | $ 110 | $ (64) |
Note 19 - Fair Value of Finan61
Note 19 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 | |
Loans Held for Sale Mortgages Unpaid Principal | $ 72 | $ 149.4 | |
Other Commitment | 29 | ||
Impairment of Real Estate | 2.7 | $ 9.7 | |
Fair Value, Inputs, Level 2 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||
Notes Payable, Fair Value Disclosure | 316.3 | 251.7 | |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Notes [Member] | |||
Notes Payable, Fair Value Disclosure | 953.3 | 883 | |
Fair Value, Inputs, Level 3 [Member] | Senior Amortizing Notes [Member] | |||
Notes Payable, Fair Value Disclosure | 4 | 6.3 | |
Fair Value, Inputs, Level 3 [Member] | Senior Exchangeable Notes [Member] | |||
Notes Payable, Fair Value Disclosure | 52.3 | $ 55.2 | |
Loan Origination Commitments [Member] | |||
Loan Applications in Process | $ 526.7 | ||
Loan Origination Commitments [Member] | Maximum [Member] | |||
Number of Days in Committment | 60 days | ||
Interest Rate Committed Loan Applications [Member] | |||
Interest Rate Committed Loan Applications | $ 63.6 |
Note 19 - Fair Value of Finan62
Note 19 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 | |
Total | $ 82,593 | $ 165,083 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Mortgage loans held for sale | [1] | 82,486 | 165,077 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | |||
Derivative Fair Value | (10) | (80) | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | |||
Derivative Fair Value | $ 117 | $ 86 | |
[1] | The aggregate unpaid principal balance was $72.0 million and $149.4 million at January 31, 2017 and October 31, 2016, respectively. |
Note 19 - Fair Value of Finan63
Note 19 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Loans Held for Sale [Member] | ||
Changes in fair value included in net loss all reflected in financial services revenues | $ (3,024) | $ 5,007 |
Interest Rate Lock Commitments [Member] | ||
Changes in fair value included in net loss all reflected in financial services revenues | 70 | 407 |
Forward Contracts [Member] | ||
Changes in fair value included in net loss all reflected in financial services revenues | $ 31 | $ (1,143) |
Note 19 - Fair Value of Finan64
Note 19 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Total Losses | $ (2,700) | $ (9,700) |
Sold and Unsold Homes and Lots Under Development [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
PreImpairment Value | 6,302 | 28,528 |
Total Losses | (2,587) | (9,669) |
Fair Value of Inventory | 3,715 | 18,859 |
Land and Land Options Held for Future Development or Sale [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
PreImpairment Value | 6,326 | 157 |
Total Losses | (81) | (48) |
Fair Value of Inventory | $ 6,245 | $ 109 |
Note 20 - Financial Informati65
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2017 | Oct. 31, 2016 | ||
Exchangeable Note Unit Rate Stated Percentage | 6.00% | ||
Direct or Indirect Ownership in Guarantor Subsidiaries Percentage | 100.00% | ||
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% |
Senior Secured Notes [Member] | The 10.0% 2018 Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 10.00% | 10.00% |
Senior Secured Notes [Member] | Subsidiary Issuer [Member] | |||
Debt Instrument, Face Amount | $ 1,067 | ||
Senior Notes | $ 1,042.6 | ||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | 7.00% |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 8.00% | 8.00% |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | Subsidiary Issuer [Member] | |||
Debt Instrument, Face Amount | $ 368.5 | ||
Senior Notes | 365.3 | ||
Senior Amortizing Notes [Member] | Subsidiary Issuer [Member] | |||
Debt Instrument, Face Amount | 4 | ||
Senior Notes | 3.9 | ||
Senior Exchangeable Notes [Member] | Subsidiary Issuer [Member] | |||
Debt Instrument, Face Amount | 51.9 | ||
Senior Notes | $ 51.6 | ||
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of January 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $31.7 million and $32.4 million, respectively. | ||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in January 2017. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at January 31, 2017 were $18.6 million. |
Note 20 - Financial Informati66
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 | |
Assets | $ 2,145,296 | $ 2,354,956 | [1] |
Income taxes receivable | 283,322 | 283,633 | |
Liabilities | 2,273,576 | 2,483,466 | [1] |
Notes payable and term loan and Revolving credit facility | 1,619,673 | 1,657,758 | |
Stockholders’ (deficit) equity | (128,280) | (128,510) | [1] |
Total liabilities and equity | 2,145,296 | 2,354,956 | [1] |
Consolidation, Eliminations [Member] | |||
Assets | 1,676,770 | 1,757,988 | |
Intercompany receivable | (1,319,494) | (1,315,446) | |
Investments in and amounts due from consolidated subsidiaries | (357,276) | (442,542) | |
Notes payable and term loan and Revolving credit facility | |||
Intercompany payable | (1,319,494) | (1,315,446) | |
Amounts due to consolidated subsidiaries | (108,196) | (82,951) | |
Stockholders’ (deficit) equity | (249,080) | (359,591) | |
Total liabilities and equity | 1,676,770 | 1,757,988 | |
Subsidiary Issuer [Member] | Reportable Legal Entities [Member] | |||
Assets | 1,407,511 | 1,444,867 | |
Income taxes receivable | (51,663) | (58,597) | |
Intercompany receivable | 1,312,141 | 1,227,334 | |
Investments in and amounts due from consolidated subsidiaries | 4,914 | ||
Notes payable and term loan and Revolving credit facility | 1,616,009 | 1,652,357 | |
Amounts due to consolidated subsidiaries | 9,089 | ||
Stockholders’ (deficit) equity | (218,132) | (208,608) | |
Total liabilities and equity | 1,407,511 | 1,444,867 | |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Assets | 1,797,980 | 1,871,606 | |
Income taxes receivable | 204,702 | 226,258 | |
Investments in and amounts due from consolidated subsidiaries | 357,276 | 437,628 | |
Notes payable and term loan and Revolving credit facility | 3,648 | 5,084 | |
Intercompany payable | 1,162,249 | 1,157,453 | |
Stockholders’ (deficit) equity | 109,933 | 130,568 | |
Total liabilities and equity | 1,797,980 | 1,871,606 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Assets | 486,324 | 680,531 | |
Income taxes receivable | 32 | 32 | |
Intercompany receivable | 7,353 | 88,112 | |
Notes payable and term loan and Revolving credit facility | 16 | 317 | |
Stockholders’ (deficit) equity | 357,279 | 437,631 | |
Total liabilities and equity | 486,324 | 680,531 | |
Parent Company [Member] | Reportable Legal Entities [Member] | |||
Assets | 130,251 | 115,940 | |
Income taxes receivable | 130,251 | 115,940 | |
Notes payable and term loan and Revolving credit facility | |||
Intercompany payable | 157,245 | 157,993 | |
Amounts due to consolidated subsidiaries | 99,107 | 82,951 | |
Stockholders’ (deficit) equity | (128,280) | (128,510) | |
Total liabilities and equity | 130,251 | 115,940 | |
Homebuilding [Member] | |||
Assets | 1,748,725 | 1,874,093 | [1] |
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 567,533 | 653,263 | |
Liabilities | 2,187,206 | 2,311,021 | [1] |
Homebuilding [Member] | Subsidiary Issuer [Member] | Reportable Legal Entities [Member] | |||
Assets | 147,033 | 271,216 | |
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 545 | 1,118 | |
Homebuilding [Member] | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Assets | 1,216,610 | 1,194,267 | |
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 502,953 | 565,163 | |
Homebuilding [Member] | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Assets | 385,082 | 408,610 | |
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 61,856 | 83,476 | |
Homebuilding [Member] | Parent Company [Member] | Reportable Legal Entities [Member] | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 2,179 | 3,506 | |
Financial Services [Member] | |||
Assets | 113,249 | 197,230 | [1] |
Liabilities | 86,370 | 172,445 | [1] |
Financial Services [Member] | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Assets | 19,392 | 13,453 | |
Liabilities | 19,197 | 13,338 | |
Financial Services [Member] | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Assets | 93,857 | 183,777 | |
Liabilities | $ 67,173 | $ 159,107 | |
[1] | Derived from the audited balance sheet as of October 31, 2016. |
Note 20 - Financial Informati67
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Total revenues | $ 552,009 | $ 575,605 |
Total expenses | 557,666 | 587,319 |
Gain on extinguishment of debt | 7,646 | |
Income (loss) from unconsolidated joint ventures | (1,666) | (1,480) |
(Loss) income before income taxes | 323 | (13,194) |
Income Tax Expense (Benefit) | 466 | 2,979 |
Net (loss) income | (143) | (16,173) |
Homebuilding [Member] | ||
Homebuilding revenue | 539,160 | 557,379 |
Total expenses | 550,811 | 579,104 |
Financial Services [Member] | ||
Financial services revenue | 12,849 | 18,226 |
Total expenses | 6,855 | 8,215 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||
Intercompany charges | 22,940 | 34,463 |
Total revenues | 457,870 | 477,155 |
Total expenses | 469,246 | 502,707 |
Income (loss) from unconsolidated joint ventures | 16 | 16 |
(Loss) income before income taxes | (11,360) | (25,536) |
Income Tax Expense (Benefit) | 23,942 | 24,447 |
Equity in (loss) income of consolidated subsidiaries | 14,667 | 15,553 |
Net (loss) income | (20,635) | (34,430) |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||
Homebuilding revenue | 455,372 | 474,910 |
Total expenses | 444,593 | 466,620 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | Financial Services [Member] | ||
Financial services revenue | 2,498 | 2,245 |
Total expenses | 1,713 | 1,624 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Intercompany charges | 77 | |
Total revenues | 94,139 | 98,450 |
Total expenses | 77,790 | 81,401 |
Income (loss) from unconsolidated joint ventures | (1,682) | (1,496) |
(Loss) income before income taxes | 14,667 | 15,553 |
Net (loss) income | 14,667 | 15,553 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||
Homebuilding revenue | 83,788 | 82,469 |
Total expenses | 72,648 | 74,733 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Financial Services [Member] | ||
Financial services revenue | 10,351 | 15,981 |
Total expenses | 5,142 | 6,591 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | ||
Intercompany charges | 22,940 | 34,540 |
Total revenues | 22,940 | 34,540 |
Total expenses | 33,042 | 35,811 |
Gain on extinguishment of debt | 7,646 | |
(Loss) income before income taxes | (2,456) | (1,271) |
Income Tax Expense (Benefit) | (6,935) | (6,918) |
Equity in (loss) income of consolidated subsidiaries | (14,003) | (13,510) |
Net (loss) income | (9,524) | (7,863) |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | Homebuilding [Member] | ||
Total expenses | 33,042 | 35,811 |
Reportable Legal Entities [Member] | Parent Company [Member] | ||
Total expenses | 528 | 1,940 |
(Loss) income before income taxes | (528) | (1,940) |
Income Tax Expense (Benefit) | (16,541) | (14,550) |
Equity in (loss) income of consolidated subsidiaries | (16,156) | (28,783) |
Net (loss) income | (143) | (16,173) |
Reportable Legal Entities [Member] | Parent Company [Member] | Homebuilding [Member] | ||
Total expenses | 528 | 1,940 |
Consolidation, Eliminations [Member] | ||
Intercompany charges | (22,940) | (34,540) |
Total revenues | (22,940) | (34,540) |
Total expenses | (22,940) | (34,540) |
Equity in (loss) income of consolidated subsidiaries | 15,492 | 26,740 |
Net (loss) income | $ 15,492 | $ 26,740 |
Note 20 - Financial Informati68
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Net (loss) income | $ (143) | $ (16,173) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | 26,059 | (48,908) |
Net cash (used in) provided by operating activities | 25,916 | (65,081) |
Proceeds from sale of property and assets | 60 | 93 |
Purchase of property, equipment and other fixed assets and acquisitions | (560) | (1,253) |
Investments in and advances to unconsolidated joint ventures | (14,639) | (11,497) |
Distributions of capital from unconsolidated joint ventures | 1,939 | 2,132 |
Net cash (used in) provided by investing activities | (15,525) | (10,554) |
Net payments from mortgages and notes | (8,911) | (15,393) |
Net proceeds from model sale leaseback financing programs | (3,521) | 2,229 |
Net proceeds from land bank financing programs | (22,862) | 135,074 |
Payments related to senior notes and senior amortizing notes | (33,086) | (175,040) |
Net proceeds related to mortgage warehouse lines of credit | (86,058) | 31,481 |
Deferred financing cost from land bank financing program and note issuances | (938) | (3,883) |
Net cash provided by (used in) financing activities | (155,376) | (25,532) |
Net decrease in cash and cash equivalents | (144,985) | (101,167) |
Cash and cash equivalents balance, beginning of period | 346,765 | 253,745 |
Cash and cash equivalents balance, end of period | 201,780 | 152,578 |
Related to Mortgage Company [Member] | ||
(Increase) decrease in restricted cash | (2,324) | (81) |
Related to Letters of Credit [Member] | ||
(Increase) decrease in restricted cash | (1) | 52 |
Reportable Legal Entities [Member] | Parent Company [Member] | ||
Net (loss) income | (143) | (16,173) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | (15,265) | (11,768) |
Net cash (used in) provided by operating activities | (15,408) | (27,941) |
Intercompany financing activities | 15,408 | 27,941 |
Net cash provided by (used in) financing activities | 15,408 | 27,941 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | ||
Net (loss) income | (9,524) | (7,863) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | (10,126) | (16,045) |
Net cash (used in) provided by operating activities | (19,650) | (23,908) |
Investments in and advances to unconsolidated joint ventures | (93) | (130) |
Intercompany investing activities | (70,802) | 117,284 |
Net cash (used in) provided by investing activities | (70,896) | 117,206 |
Payments related to senior notes and senior amortizing notes | (33,086) | (175,040) |
Deferred financing cost from land bank financing program and note issuances | (528) | |
Net cash provided by (used in) financing activities | (33,614) | (175,040) |
Net decrease in cash and cash equivalents | (124,160) | (81,742) |
Cash and cash equivalents balance, beginning of period | 261,553 | 199,318 |
Cash and cash equivalents balance, end of period | 137,393 | 117,576 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | Related to Letters of Credit [Member] | ||
(Increase) decrease in restricted cash | (1) | 52 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||
Net (loss) income | (20,635) | (34,430) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | 66,555 | 80,623 |
Net cash (used in) provided by operating activities | 45,920 | 46,193 |
Proceeds from sale of property and assets | 60 | 72 |
Purchase of property, equipment and other fixed assets and acquisitions | (560) | (1,223) |
Investments in and advances to unconsolidated joint ventures | (94) | (865) |
Distributions of capital from unconsolidated joint ventures | 231 | 80 |
Net cash (used in) provided by investing activities | (363) | (1,936) |
Net payments from mortgages and notes | 2,154 | (10,035) |
Net proceeds from model sale leaseback financing programs | (2,205) | 2,118 |
Net proceeds from land bank financing programs | (18,371) | 106,813 |
Deferred financing cost from land bank financing program and note issuances | (397) | (2,496) |
Intercompany financing activities | (25,365) | (143,237) |
Net cash provided by (used in) financing activities | (44,184) | (46,837) |
Net decrease in cash and cash equivalents | 1,373 | (2,580) |
Cash and cash equivalents balance, beginning of period | (395) | (4,800) |
Cash and cash equivalents balance, end of period | 978 | (7,380) |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Net (loss) income | 14,667 | 15,553 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | 387 | (74,978) |
Net cash (used in) provided by operating activities | 15,054 | (59,425) |
Proceeds from sale of property and assets | 21 | |
Purchase of property, equipment and other fixed assets and acquisitions | (30) | |
Investments in and advances to unconsolidated joint ventures | (14,452) | (10,502) |
Distributions of capital from unconsolidated joint ventures | 1,708 | 2,052 |
Net cash (used in) provided by investing activities | (15,068) | (8,540) |
Net payments from mortgages and notes | (11,065) | (5,358) |
Net proceeds from model sale leaseback financing programs | (1,316) | 111 |
Net proceeds from land bank financing programs | (4,491) | 28,261 |
Net proceeds related to mortgage warehouse lines of credit | (86,058) | 31,481 |
Deferred financing cost from land bank financing program and note issuances | (13) | (1,387) |
Intercompany financing activities | 80,759 | (1,988) |
Net cash provided by (used in) financing activities | (22,184) | 51,120 |
Net decrease in cash and cash equivalents | (22,198) | (16,845) |
Cash and cash equivalents balance, beginning of period | 85,607 | 59,227 |
Cash and cash equivalents balance, end of period | 63,409 | 42,382 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Related to Mortgage Company [Member] | ||
(Increase) decrease in restricted cash | (2,324) | (81) |
Consolidation, Eliminations [Member] | ||
Net (loss) income | 15,492 | 26,740 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | (15,492) | (26,740) |
Intercompany investing activities | 70,802 | (117,284) |
Net cash (used in) provided by investing activities | 70,802 | (117,284) |
Intercompany financing activities | (70,802) | 117,284 |
Net cash provided by (used in) financing activities | $ (70,802) | $ 117,284 |
Note 21 - Transactions With R69
Note 21 - Transactions With Related Parties (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Tavit Najarian [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 0.2 | $ 0.3 |