Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Apr. 30, 2017 | Jun. 01, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | HOVNANIAN ENTERPRISES INC | |
Entity Central Index Key | 357,294 | |
Trading Symbol | hov | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 132,115,251 | |
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 | Apr. 30, 2017 | Oct. 31, 2016 | |
Income taxes receivable – including net deferred tax benefits | $ 284,452 | $ 283,633 | [1] |
Assets | 2,133,596 | 2,354,956 | [1] |
Cash and cash equivalents | 280,787 | 346,765 | |
Restricted cash and cash equivalents | 24,700 | 22,900 | |
Liabilities | 2,267,499 | 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 April 30, 2017 and at October 31, 2016 | 135,299 | 135,299 | [1] |
Paid in capital – common stock | 707,568 | 706,137 | [1] |
Accumulated deficit | (863,008) | (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 April 30, 2017 and October 31, 2016 | (115,360) | (115,360) | [1] |
Total stockholders’ equity deficit | (133,903) | (128,510) | [1] |
Total liabilities and equity | 2,133,596 | 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] | |||
Property, plant and equipment, net | 52,987 | 50,332 | [1] |
Prepaid expenses and other assets | 46,212 | 46,762 | [1] |
Assets | 1,729,606 | 1,874,093 | [1] |
Cash and cash equivalents | 275,011 | 339,773 | [1] |
Restricted cash and cash equivalents | 1,797 | 3,914 | [1] |
Sold and unsold homes and lots under development | 892,401 | 899,082 | [1] |
Land and land options held for future development or sale | 162,191 | 175,301 | [1] |
Consolidated inventory not owned | 154,620 | 208,701 | [1] |
Total inventories | 1,209,212 | 1,283,084 | [1] |
Investments in and advances to unconsolidated joint ventures | 106,704 | 100,502 | |
Receivables, deposits and notes, net | 37,683 | 49,726 | [1] |
Accounts payable and other liabilities | 311,958 | 369,228 | [1] |
Customers’ deposits | 40,321 | 37,429 | [1] |
Liabilities from inventory not owned, net of debt issuance costs | 116,728 | 150,179 | [1] |
Revolving credit facility | 52,000 | 52,000 | [1] |
Notes payable and term loan, net of discount and debt issuance costs | 1,569,375 | 1,605,758 | [1] |
Liabilities | 2,170,422 | 2,311,021 | [1] |
Homebuilding [Member] | Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | |||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | 66,365 | 82,115 | |
Homebuilding [Member] | Nonrecourse Mortgages Secured by Operating Properties [Member] | Mortgages [Member] | |||
Nonrecourse mortgages secured by inventory, net of debt issuance costs | 13,675 | 14,312 | [1] |
Financial Services [Member] | |||
Other assets | 113,762 | 190,238 | |
Assets | 119,538 | 197,230 | |
Cash and cash equivalents | 5,776 | 6,992 | [1] |
Liabilities | $ 97,077 | $ 172,445 | [1] |
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Millions | Apr. 30, 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) | 143,876,014 | 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. See notes to condensed consolidated financial statements (unaudited). |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | ||
Total revenues | $ 585,935 | $ 654,723 | $ 1,137,944 | $ 1,230,328 | |
Inventory impairment loss and land option write-offs | 5,137 | 21,350 | |||
Corporate general and administrative | 16,071 | 12,598 | 31,727 | 28,919 | |
Other interest | [1],[2] | 22,297 | 24,084 | 44,924 | 45,309 |
Other operations | (95) | 1,147 | 1,492 | 2,531 | |
Total expenses | 588,830 | 670,981 | 1,146,496 | 1,258,300 | |
(Loss) gain on extinguishment of debt | (242) | 7,404 | |||
Loss from unconsolidated joint ventures | (4,562) | (1,346) | (6,228) | (2,826) | |
Loss before income taxes | (7,699) | (17,604) | (7,376) | (30,798) | |
Tax provision (benefit) | (1,017) | (9,143) | (551) | (6,164) | |
Net loss | $ (6,682) | $ (8,461) | $ (6,825) | $ (24,634) | |
Loss per common share, basic (in dollars per share) | $ (0.05) | $ (0.06) | $ (0.05) | $ (0.17) | |
Weighted-average number of common shares outstanding, basic (in shares) | 147,558 | 147,334 | 147,556 | 147,301 | |
Loss per common share, assuming dilution (in dollars per share) | $ (0.05) | $ (0.06) | $ (0.05) | $ (0.17) | |
Weighted-average number of common shares outstanding, assuming dilution (in shares) | 147,558 | 147,334 | 147,556 | 147,301 | |
State and Local Jurisdiction [Member] | |||||
Tax provision (benefit) | $ 2,292 | $ (758) | $ 2,274 | $ 3,561 | |
Domestic Tax Authority [Member] | |||||
Tax provision (benefit) | (3,309) | (8,385) | (2,825) | (9,725) | |
Homebuilding [Member] | |||||
Sale of homes | 567,553 | 626,157 | 1,098,968 | 1,182,932 | |
Land sales and other revenues | 3,888 | 11,563 | 11,633 | 12,167 | |
Total homebuilding | 571,441 | 637,720 | 1,110,601 | 1,195,099 | |
Cost of sales, excluding interest | 475,440 | 536,050 | 920,467 | 1,000,196 | |
Cost of sales interest | 20,337 | 21,444 | 38,659 | 38,287 | |
Inventory impairment loss and land option write-offs | 1,953 | 9,669 | 5,137 | 21,350 | |
Total cost of sales | 497,730 | 567,163 | 964,263 | 1,059,833 | |
Selling, general and administrative | 45,467 | 56,371 | 89,875 | 103,875 | |
Total homebuilding expenses | 543,197 | 623,534 | 1,054,138 | 1,163,708 | |
Total expenses | 581,470 | 661,363 | 1,132,281 | 1,240,467 | |
Financial Services [Member] | |||||
Financial services | 14,494 | 17,003 | 27,343 | 35,229 | |
Financial services | 7,360 | 9,618 | 14,215 | 17,833 | |
Total expenses | $ 7,360 | $ 9,618 | $ 14,215 | $ 17,833 | |
[1] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: | ||||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $16.0 million and $12.2 million for the three months ended April 30, 2017 and 2016, respectively, and $29.3 million and $26.7 million for the six months ended April 30, 2017 and 2016, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $6.3 million and $11.9 million for the three months ended April 30, 2017 and 2016, respectively, and $15.6 million and $18.6 million for the six months ended April 30, 2017 and 2016, respectively. |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity (Unaudited) - 6 months ended Apr. 30, 2017 - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total | |
Balance (in shares) at Oct. 31, 2016 | 132,046,012 | 15,251,061 | 5,600 | |||||
Balance at Oct. 31, 2016 | $ 1,438 | $ 159 | $ 135,299 | $ 706,137 | $ (856,183) | $ (115,360) | $ (128,510) | [1] |
Stock options, amortization and issuances (in shares) | 5,250 | |||||||
Stock options, amortization and issuances | 231 | 231 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 63,989 | |||||||
Restricted stock amortization, issuances and forfeitures | $ 1 | 1,200 | 1,201 | |||||
Net loss | (6,825) | (6,825) | ||||||
Balance (in shares) at Apr. 30, 2017 | 132,115,251 | 15,251,061 | 5,600 | |||||
Balance at Apr. 30, 2017 | $ 1,439 | $ 159 | $ 135,299 | $ 707,568 | $ (863,008) | $ (115,360) | $ (133,903) | |
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (6,825) | $ (24,634) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 2,083 | 1,729 |
Compensation from stock options and awards | 1,500 | 825 |
Amortization of bond discounts and deferred financing costs | 9,348 | 6,106 |
Gain on sale and retirement of property and assets | (78) | (100) |
Loss from unconsolidated joint ventures | 6,228 | 2,826 |
Distributions of earnings from unconsolidated joint ventures | 203 | |
Gain on extinguishment of debt | (7,404) | |
Inventory impairment and land option write-offs | 5,137 | 21,350 |
Deferred income tax benefit | (1,419) | (4,077) |
(Increase) decrease in assets: | ||
Origination of mortgage loans | (476,845) | (584,879) |
Sale of mortgage loans | 553,827 | 585,200 |
Restricted cash, receivables, prepaids, deposits and other assets | 16,672 | 2,461 |
Inventories | 68,735 | (52,908) |
State income tax payable | 600 | 287 |
Customers’ deposits | 2,892 | 3,758 |
Accounts payable, accrued interest and other accrued liabilities | (57,436) | 10,869 |
Net cash provided by (used in) operating activities | 117,218 | (31,187) |
Cash flows from investing activities: | ||
Proceeds from sale of property and assets | 86 | 115 |
Purchase of property, equipment and other fixed assets and acquisitions | (4,500) | (1,651) |
Investments in and advances to unconsolidated joint ventures | (23,368) | (16,743) |
Distributions of capital from unconsolidated joint ventures | 10,735 | 5,065 |
Net cash used in investing activities | (19,761) | (13,093) |
Cash flows from financing activities: | ||
Proceeds from mortgages and notes | 103,620 | 112,894 |
Payments related to mortgages and notes | (119,860) | (132,033) |
Proceeds from model sale leaseback financing programs | 9,113 | 14,910 |
Payments related to model sale leaseback financing programs | (10,931) | (13,691) |
Proceeds from land bank financing programs | 8,643 | 153,423 |
Payments related to land bank financing programs | (41,617) | (38,950) |
Payments related to senior notes and senior amortizing notes | (33,327) | (175,040) |
Borrowings from revolving credit facility | 3,000 | |
Net (payments) proceeds related to mortgage warehouse lines of credit | (75,471) | 257 |
Deferred financing costs from land bank financing programs and note issuances | (3,605) | (4,581) |
Net cash used in financing activities | (163,435) | (79,811) |
Net decrease in cash and cash equivalents | (65,978) | (124,091) |
Cash and cash equivalents balance, beginning of period | 346,765 | 253,745 |
Cash and cash equivalents balance, end of period | 280,787 | 129,654 |
Supplemental disclosure of cash flow: | ||
Interest, net of capitalized interest (see Note 3 to the Condensed Consolidated Financial Statements) | 47,362 | 47,987 |
Income taxes | 267 | (2,373) |
Related to Mortgage Company [Member] | ||
Cash flows from investing activities: | ||
(Increase) decrease in restricted cash | (2,715) | (204) |
Related to Letters of Credit [Member] | ||
Cash flows from investing activities: | ||
(Increase) decrease in restricted cash | $ 1 | $ 325 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Basis of Presentation Hovnanian Enterprises, Inc. and Subsidiaries (the “ Company”, “we”, “us” or “our”) has reportable segments consisting of six 16 The accompanying unaudited Condensed Consolidated Financial Statements include our accounts and those of all wholly-owned subsidiaries after elimination of all significant intercompany balances and transactions. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“ GAAP”) for interim financial information and with the instructions to Form 10 10 X 10 October 31, 2016. not October 31, 2016 not Reclassifications In November 2016, ASU”) 2015 03, $24.5 $1.3 not $3.0 $20.2 11 2017 November 2016, 2015 15 835 30 2015 15” 2015 03. 2015 15 no |
Note 2 - Stock Compensation
Note 2 - Stock Compensation | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 2. Stock Compensation T he Company had total stock-based compensation expense of $1.0 $1.5 $0.9 $1.4 three six April 30, 2017, $0.7 $0.8 $0.7 three six April 30, 2016, three six April 30, 2017 $0.1 $0.2 . Included in total stock based compensation for the three six April 30, 2016 $2.1 no This income was slightly offset by the vesting of stock options of $0.1 $0.2 three six April 30, 2016. |
Note 3 - Interest
Note 3 - Interest | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Home Building Interest [Text Block] | 3. Interest Interest costs incurred, expensed and capitalized were: Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 2017 2016 Interest capitalized at beginning of period $ 94,438 $ 117,113 $ 96,688 $ 123,898 Plus interest incurred (1) 39,156 44,224 77,855 86,183 Less cost of sales interest expensed 20,337 21,444 38,659 38,287 Less other interest expensed (2)(3) 22,297 24,084 44,924 45,309 Less interest contributed to unconsolidated joint venture (4) - - - 10,676 Interest capitalized at end of period (5) $ 90,960 $ 115,809 $ 90,960 $ 115,809 ( 1 Data does not ( 2 Other interest expensed includes interest that doe s not not , which amounted to $16.0 $12.2 three April 30, 2017 2016, $29.3 $26.7 six April 30, 2017 2016, . Other interest also includes interest on completed homes , land in planning and fully developed lots without homes under construction , which does not $6.3 $11.9 three April 30, 2017 2016, $15.6 $18.6 six April 30, 2017 2016, ( 3 Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 2017 2016 Other interest expensed $ 22,297 $ 24,084 $ 44,924 $ 45,309 Interest paid by our mortgage and finance subsidiaries 455 851 1,084 1,410 Decrease (increase) in accrued interest 591 (9,948 ) 1,354 1,268 Cash paid for interest, net of capitalized interest $ 23,343 $ 14,987 $ 47,362 $ 47,987 ( 4 Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in November 2015, 17. no ( 5 Capitalized interest amounts are shown gross before all ocating any portion of impairments, if any, to capitalized interest. |
Note 4 - Reduction of Inventory
Note 4 - Reduction of Inventory to Fair Value | 6 Months Ended |
Apr. 30, 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 six April 30, 2017, 18.3% 19.8%. six April 30, 2016, 16.8% 18.5%. No may During the six April 30, 2017 2016, 381 478 or sale, respectively, for impairment indicators through preparation and review of detailed budgets or other market indicators of impairment. We performed detailed impairment calculations during the six April 30, 2017 2016 nine 20 $66.9 $89.0 six April 30, 2017 2016, three nine $45.8 $43.5 20%. $1.5 $4.2 one six $8.5 $21.1 three six April 30, 2017, $5.4 $15.1 four ten $16.7 $45.4 three six April 30, 2016, six April 30, 2017 six April 30, 2016 The Condensed Consolidated Statements of Operations line entitled “ Homebuilding: Inventory impairment loss and land option write-offs” also includes write-offs of options and approval, engineering and capitalized interest costs that we record when we redesign communities and/or abandon certain engineering costs and we do not not $0.4 $4.3 three April 30, 2017 2016, $0.9 $6.3 six April 30, 2017 2016, first 2017 first 2016. not three April 30, 2017 2016 478 2,263, 1,539 3,519 six April 30, 2017 2016, We decide to mothball (or stop development on) certain communities when we determine that the current performance does not estment 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 two two April 30, 2017 October 31, 2016, 25 29 $66.0 $74.4 $239.9 $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, April 30, 2017 October 31, 2016, no We sell and lease back certain of our model homes with the righ t to participate in the potential profit when each home is sold to a third 360 20 40 38, April 30, 2017 October 31, 2016, $76.5 $79.2 not $68.1 $69.7 not We have land banking a rrangements, whereby we sell our land parcels to the land bankers and they provide us an option to purchase back finished lots on a predetermined basis. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC 360 20 40 38, April 30, 2017 October 31, 2016, $78.1 $129.5 not $48.6 $80.5 not |
Note 5 - Variable Interest Enti
Note 5 - Variable Interest Entities | 6 Months Ended |
Apr. 30, 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 ligation, 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 810, may In compliance with ASC 810, not 810 April 30, 2017 October 31, 2016, not We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at April 30, 2017, $52.9 total purchase price of $980.8 not |
Note 6 - Warranty Costs
Note 6 - Warranty Costs | 6 Months Ended |
Apr. 30, 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 de creased 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 six April 30, 2017 2016, $1.8 $2.0 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 ac crual is expensed as selling, general and administrative costs. For homes delivered in fiscal 2017 2016, $20 2017 2016 $0.25 $5 2017 2016 $21 not three six April 30, 2017 2016 Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 2017 2016 Balance, beginning of period $ 118,013 $ 133,389 $ 121,144 $ 135,053 Additions – Selling, general and administrative 2,856 4,292 5,764 8,915 Additions – Cost of sales 3,515 4,539 7,002 7,921 Charges incurred during the period (7,177 ) (5,514 ) (16,703 ) (15,183 ) Changes to pre-existing reserves - - - - Balance, end of period $ 117,207 $ 136,706 $ 117,207 $ 136,706 Warranty accruals are based upon historical experience. We engage a third not Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, were $0.2 $0.5 three April 30, 2017 2016, $0 .2 $3.7 six April 30, 2017 2016, first 2016, two |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingent Liabilities | 6 Months Ended |
Apr. 30, 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 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 co ncerning 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, EPA”) requesting information about our involvement in a housing redevelopment project in Newark, New Jersey that a Company entity undertook during the 1990s. August 2013, not may not April 2014 March 2017 . The Grandview at Riverwalk Port Imperial Condominium Association, Inc. filed a construction defect lawsuit against the Company and several of its affiliates, including K. Hovnanian at Port Imperial Urban Renewal II, LLC, K. Hovnanian Construction Manageme nt, Inc., K. Hovnanian Companies, LLC, K. Hovnanian Enterprises, Inc., K. Hovnanian North East, Inc. aka and/or dba K. Hovnanian Companies North East, Inc., K. Hovnanian Construction II, Inc., K. Hovnanian Cooperative, Inc., K. Hovnanian Development of New Jersey, Inc., and K. Hovnanian Holdings NJ LLC, as well as the project architect, the geotechnical engineers and various construction contractors for the project alleging various construction defects, design defects and geotechnical issues totaling approximately $41.3 1 2 The parties reached a settlement on the construction defect issues prior to trial, but attempts to settle the subsidence, building classification issue and Consumer Fraud Act claims were unsuccessful. The trial commenced on April 17, 2017 third June 1, 2017, $3 $9 $0 $9 may The Condominium Association of a second as well as other design professionals and contractors asserting similar claims for construction defects, design defects and geotechnical issues Plaintiff in this case asserts damages of approximately $70 January 2018. not We anticipate that increasingly stringent requirements will be imposed on developers and homebuilders in the future. Although we cannot reliably predict the extent of any effect these requirements may ng and expensive compliance programs and in substantial expenditures, which could cause delays and increase our cost of operations. In addition, our ability to obtain or renew permits or approvals and the continued effectiveness of permits already granted or approvals already obtained is dependent upon many factors, some of which are beyond our control, such as changes in policies, rules and regulations and their interpretations and application. |
Note 8 - Restricted Cash and De
Note 8 - Restricted Cash and Deposits | 6 Months Ended |
Apr. 30, 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, April 30, 2017 October 31, 2016, $6.7 $9.4 Restricted cash and cash equivalents on the Condensed Consolidated Balance Sheets totaled $24.7 $22.9 April 30, 2017 October 31, 2016, includes cash collateralizing our letter of credit agreements and facilities as discussed in Note 10. 1 $0.1 $20.9 April 30, 2017, $2.2 $15.1 October 31, 2016, 2 $2.0 April 30, 2017 $3.9 October 31, 2016 Total Homebuilding Customers ’ deposits are shown as a liability on the Condensed Consolidated Balance Sheets. These liabilities are significantly more than the applicable periods’ restricted cash balances because in some states, the deposits are not |
Note 9 - Mortgage Loans Held fo
Note 9 - Mortgage Loans Held for Sale | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 9. Mortgage Loans Held for Sale Our mortgage banking subsidiary originates mortgage loans, primarily from the sale of our homes. Such mortgage loans are sold in the secondary mortgage market within a short period of time of origination. Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. We have elected the fair value option to record loans held for sale and therefore these loans are recorded at fair value with the changes in the value recognized in the Condensed Consolidated Statements of Operations in “Revenues: Financial services.” We currently use forward sales of mortgage-backed securities (“MBS”), interest rate commitments from borrowers and mandatory and/or best efforts forward commitments to sell loans to third not At April 30, 2017 October 31, 2016, $ 72.0 $147.4 10 may not April 30, 2017 2016, 94 132 not The activity in our loan origination reserves during the three six April 30, 2017 2016 Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 2017 2016 Loan origination reserves, beginning of period $ 5,077 $ 8,028 $ 8,137 $ 8,025 Provisions for losses during the period 45 117 79 158 Adjustments to pre-existing provisions for losses from changes in estimates (1,340 ) 161 (4,434 ) 123 Loan origination reserves, end of period $ 3,782 $ 8,306 $ 3,782 $ 8,306 |
Note 10 - Mortgages and Notes P
Note 10 - Mortgages and Notes Payable | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Line of Credit [Text Block] | 10. Mortgage s and Notes Payable We had nonrecourse mortgage loans for certain communities totaling $66.4 $82.1 April 30, 2017 October 31, 2016, $192.7 $201.8 5.1% 4.9% April 30, 2017 October 31, 2016, $13.7 $14.3 April 30, 2017 October 31, 2016, 8.8% April 30, 2017 October 31, 2016, April 30, 2017, October 31 $0.7 2017, $1.4 2018, $1.5 2019, $1.7 2020, $1.8 2021 $6.6 2021. In June 2013, K. Hovnanian”), as borrower, and we and certain of our subsidiaries, as guarantors, entered into a five $75.0 not 8.0% 2019, 11. not two first April 30, 2017 $52.0 $15.4 October 31, 2016, $52.0 $17.9 April 30, 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 April 30, 2017 October 31, 2016, April 30, 2017 October 31, 2016, $1.7 Our wholly owned mortgage banking subsidiary, K. Hovnanian American Mortgage, LLC (“ K. Hovnanian Mortgage”), originates mortgage loans primarily from the sale of our homes. Such mortgage loans and related servicing rights are sold in the secondary mortgage market within a short period of time. In certain instances, we retain the servicing rights for a small amount of loans. Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”), which was amended on January 31, 2017 January 30, 2018, $50.0 1.0% April 30, 2017, 2.5% 2.63% April 30, 2017 October 31, 2016, $27.8 $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, $50.0 February 16, 2018. 2.5% 5.25% April 30, 2017 October 31, 2016, $27.8 $38.8 K. Hovnanian Mortgage had a third $50.0 February 21, 2017. not no April 30, 2017. October 31, 2016 $32.9 K. Hovnanian Mortgage also has a secured Master Repurchase Agreement with Comerica Bank (“Comerica Master Repurchase Agreement”), which was amended on December 23, 2016 December 22, 2017. $50.0 0.25%, 2.5%. April 30, 2017 October 31, 2016, $14.5 $29.8 The Chase Master Repurchase Agreement, Customers Master Repurchase Agreement and Comerica Master Repurchase Agreement (together, the “Master Repurchase Agreements”) require K. Hovnanian Mortgage to satisfy and maintain specified financial ratios and other financial condition tests. Because of the extremely short period of time mortgages are held by K. Hovnanian Mortgage before the mortgages are sold to investors (generally a period of a few weeks), the immateriality to us on a consolidated basis of the size of the Master Repurchase Agreements, the levels required by these financial covenants, our ability based on our immediately available resources to contribute sufficient capital to cure any default, were such conditions to occur, and our right to cure any conditions of default based on the terms of the applicable agreement, we do not April 30, 2017, |
Note 11 - Senior Notes and Term
Note 11 - Senior Notes and Term Loan | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 11. Senior Notes and Term Loan Senior Notes and Term Loan balances as of April 30, 2017 October 31, 2016, (In thousands) April 30, 2017(1)(2) October 31, 2016(1)(2) Senior Secured Term Loan, net of debt issuance costs $ 72,412 $ 72,646 Senior Secured Notes: 7.25% Senior Secured First Lien Notes due October 15, 2020 $ 570,561 $ 569,641 10.0% Senior Secured Second Lien Notes due October 15, 2018 (net of discount) 69,724 68,951 9.125% Senior Secured Second Lien Notes due November 15, 2020 143,541 143,337 9.5% Senior Secured Notes due November 15, 2020 74,245 74,140 2.0% Senior Secured Notes due November 1, 2021 (net of discount) 53,040 53,022 5.0% Senior Secured Notes due November 1, 2021 (net of discount) 132,852 131,998 Total Senior Secured Notes, net of debt issuance costs $ 1,043,963 $ 1,041,089 Senior Notes: 7.0% Senior Notes due January 15, 2019 $ 131,721 $ 148,800 8.0% Senior Notes due November 1, 2019 233,875 247,348 Total Senior Notes, net of debt issuance costs $ 365,596 $ 396,148 11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs $ 3,938 $ 6,152 Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs $ 52,395 $ 57,298 ( 1 Notes payable and term loan” on our Condensed Consolidated Balance Sheets as of April 30, 2017 October 31, 2016 $31.1 $32.4 ( 2 1, 2015 03 November 2016. 2017 $20.2 October 31, 2016, April 30, 2017 $17.8 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 April 30, 2017 ( 5.0% 2021 “5.0% 2021 2.0% 2021 “2.0% 2021 5.0% 2021 “2021 9.5% 2020 2021 not The Term Loan Credit Agreement (defined below) and the indentures governing the notes outstan ding at April 30, 2017 not may not January 15, 2021 ( no February 15, 2021 ( not April 30, 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 time. We also continue to evaluate our capital structure and may If our consolidated fixed charge coverage ratio, as defined in the agreements governing our debt instruments (other than the senior exchangeable notes discussed b elow), is less than 2.0 1.0, not 7.625% not 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 Fiscal 2017 During the six April 30, 2017, $17.5 7.0% 2019, $14.0 8.0% 2019 6,925 below under "Units") representing $6.9 $30.8 $7.8 $0.4 9.5% fourth 2016. Secured Obligations Our $75.0 Term Loan Facility”) has a maturity of 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% s (the “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 e same terms other than with respect to interest rate and related redemption provisions, and vote together as a single class. The 2021 100.0% 1% The guarantees of the JV Holdings Secured Group with respect to the 2021 9.5% first n substantially all of the assets of the members of the JV Holdings Secured Group. As of April 30, 2017, 1 $86.3 2 $146.5 not may 3 $89.9 April 30, 2017; not not 2021 not K. Hovnanian also has outstanding 7.25% Senior Secured First Lien Notes due 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. first 9.125% 10.0% second At April 30, 2017, constituted collateral securing the Term Loan Facility, the 2020 10.0% $564.3 not may 2020 10.0% $190.4 April 30, 2017, $1.7 Senior Notes K. H ovnanian’s 7.0% 2019 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% Units”) (equivalent to 100,000 $1,000 1 zero December 1, 2017 ( no $768.51 $1,000 2 December 1, 2017 ( $231.49 11.0% December 1, 2017. may may Each Senior Exchangeable Note had an initial principal amount of $768.51 $1,000 5.17% may 5:00 December 1, 2017. 185.5288 $1,000 $5.39 April 30, 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 ( installment payment date”), K. Hovnanian will pay holders of Senior Amortizing Notes equal semi-annual cash installments of $30.00 June 1, 2013 $39.83 6.0% $1,000 11.0% |
Note 12 - Per Share Calculation
Note 12 - Per Share Calculation | 6 Months Ended |
Apr. 30, 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 securi ties and are included in computing earnings per share pursuant to the two two There were no buted to nonvested stock and outstanding options to purchase common stock for the three six April 30, 2017 2016. three six April 30, 2017, 10.0 10.1 2012 For both the three six April 30, 2016, 15.2 In addition, shares related to out-of-the money stock options that could potentially dilute basic earnings per share in the future that were not 4.7 the three six April 30, 2017 6.4 three six April 30, 2016 |
Note 13 - Preferred Stock
Note 13 - Preferred Stock | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | 1 3 . Preferred Stock On July 12, 2005, 5,600 7.625% $25,000 not 7.625%. not 1/1000th three six April 30, 2017 2016, not not |
Note 14 - Common Stock
Note 14 - Common Stock | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Common Stock [Text Block] | 1 4 . 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, rized a stock repurchase program to purchase up to 4 no three six April 30, 2017. April 30, 2017, may 0.5 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 1 5 . Income Taxes The total income tax benefit of $1. 1 $0.6 three six April 30, 2017, not The total income tax be nefit of $9.1 $6.2 three six April 30, 2016, 2002, T he permanent difference related to stock compensation arose because for tax purposes, the amount of stock compensation the Company expenses is the amount reported on an associate’s W- 2 first six 2016 not 2. 2016 10 2016, 2016. The federal specified liability loss refund of taxes in fiscal year 2002 was due to an amendment of a prior year’s tax return. The Internal Revenue Service issued the refund following the Company’s application therefor during the year ended October 31, 2016. 2012 172 1 ten October 31, 2002. February 2016 second 2016. Our state NOLs of $2.2 2017 2036. $301.7 2017 2021; $253.9 2022 2026; $1,327.3 2027 2031; $348.0 2032 2036. Deferred federal and state income tax assets primarily represent the deferred tax benefits arising from temporary differences between book and tax income which will b e recognized in future years as an offset against future taxable income. If the combination of future years’ income (or loss) and the reversal of the timing differences results in a loss, such losses can be carried forward to future years. In accordance with ASC 740, 740 not” As of October 31, 2014, not fourth 2014. As expected at the time of that conclusion, our earnings have continued to improve such that we have not not three April 30, 2017. 740, one no three not $628 April 30, 2017 The following is a discussion of the significant estimates and assumptions we used for our analysis of deferred taxes and our determination of the valuation allowance to record. The realization of our DTA is not ome. As discussed above, we projected pretax income based on our recent three 2017. 2017 2017 19 We considered all available positive and negative evidence to determine whether, based on the weight of that evidence, an add itional valuation allowance for our DTAs was necessary in accordance with ASC 740. ermining that it is more likely than not not 1. Recent financial results that put us in a cumulative three April 30, 2017. ( 2. Our ability to schedule the use of most DTAs related to temporary differences. (Positive Objective Evidence) 3. In the fourth 2016, 2017 $20 4. We incurred pre-tax losses during the housing market decline and the slower than expected housing market recovery. (Negative Objective Evidence) 5. We exited two two 6. Evidence of a sustained recovery in the housing markets in which we operate, supported by economic data showing housing starts, homebuilding volume and prices all increasing and forecasted to continue to increase. (Positive Subjective Evidence) 7. As noted in our Management ’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) under Item 2, 2013 2014 not 8. The historical cyclicality of the U.S. housing market, a more restrictive mortgage lending environment compared to before the housing downturn, the uncertainty of the overall US economy and government policies and consumer confidence, all or any of which could continue to hamper a faster, stronger recovery of the housing market. (Negative Subjective Evidence) After considering the timing of when existing DTAs will be expensed for tax purposes, we will be required to gen erate minimum taxable income of approximately $275 19 not, April 30, 2017, not . |
Note 16 - Operating and Reporti
Note 16 - Operating and Reporting Segments | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 6 . 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 Nor theast (New Jersey and Pennsylvania) ( 2 Mid-Atlantic (Delaware, Maryland, Virginia, Washington D.C. and West Virginia) ( 3 Midwest (Illinois and Ohio) ( 4 Southeast (Florida, Georgia and South Carolina) ( 5 Southwest (Arizona and Texas) ( 6 West (California) Financial Services Operations of the Company ’s Homebuilding segments primarily include the sale and construction of single-family attached and detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. In addition, from time to time, operations of the homebuilding segments include sales of land. Operations of the Company’s Financial Services segment include mortgage banking and title services provided to the homebuilding operations’ customers. We do not Corporate and unallocated primarily represents operations at our headquarters in Red Bank, New Jersey. This includes our executive offices, information services, human resources, corporate accounting, training, treasury, process redesign, internal audit, construction services, and administration of insurance, quality and safety. It also includes interest income and interest expense resulting from interest incurred that cannot be capitalized in inventory in the Homebuilding segments, as well as the gains or losses on extinguishment of debt from any debt repurchases or exchanges. Eval uation 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. Oper ational results of each segment are not Financial information relating to the Company ’s segment operations was as follows: Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 201 7 201 6 Revenues: Northeast $ 45,950 $ 54,046 $ 104,525 $ 126,550 Mid-Atlantic 100,600 89,987 200,826 183,807 Midwest 42,019 84,631 85,721 176,551 Southeast 56,635 51,298 113,219 90,550 Southwest 225,255 276,735 408,664 481,060 West 100,843 81,095 197,374 136,673 Total homebuilding 571,302 637,792 1,110,329 1,195,191 Financial services 14,494 17,003 27,343 35,229 Corporate and unallocated 139 (72 ) 272 (92 ) Total revenues $ 585,935 $ 654,723 $ 1,137,944 $ 1,230,328 (Loss) income before income taxes: Northeast $ (2,722 ) $ (6,684 ) $ (1,816 ) $ (3,950 ) Mid-Atlantic 918 1,072 4,800 3,694 Midwest (3,170 ) (23 ) (2,458 ) (5,582 ) Southeast 428 (7,255 ) 134 (9,089 ) Southwest 19,785 18,491 31,708 34,860 West 2,317 (4,318 ) 1,563 (10,286 ) Homebuilding income before income taxes 17,556 1,283 33,931 9,647 Financial services 7,134 7,385 13,128 17,396 Corporate and unallocated (1) (32,389 ) (26,272 ) (54,435 ) (57,841 ) Loss before income taxes $ (7,699 ) $ (17,604 ) $ (7,376 ) $ (30,798 ) ( 1 Corporate and unallocated for the three April 30, 2017 $16.1 $16.0 $0.2 $0.1 six April 30, 2017 $31.7 $29.3 $7.4 $0.8 (In thousands) April 30, 2017 October 31, 2016 Assets: Northeast $ 196,796 $ 219,363 Mid-Atlantic 290,279 292,899 Midwest 103,805 111,596 Southeast 236,085 226,124 Southwest 337,646 341,472 West 207,773 269,400 Total homebuilding 1,372,384 1,460,854 Financial services 119,538 197,230 Corporate and unallocated(1) 641,674 696,872 Total assets $ 2,133,596 $ 2,354,956 ( 1 $284.5 $283.6 April 30, 2017 October 31, 2016, |
Note 17 - Investments in Uncons
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 1 7 . 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, thballed by the Company, but on which construction by the joint venture has now begun. Upon formation of the joint venture, the Company received $25.7 third 2016, eight one $29.8 first 2017, one three $11.2 The tab les 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) April 30, 2017 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 44,927 $ 162 $ 45,089 Inventories 625,716 9,941 635,657 Other assets 28,847 - 28,847 Total assets $ 699,490 $ 10,103 $ 709,593 Liabilities and equity: Accounts payable and accrued liabilities $ 97,887 $ 473 $ 98,360 Notes payable 289,791 1,490 291,281 Total liabilities 387,678 1,963 389,641 Equity of: Hovnanian Enterprises, Inc. 89,904 3,238 93,142 Others 221,908 4,902 226,810 Total equity 311,812 8,140 319,952 Total liabilities and equity $ 699,490 $ 10,103 $ 709,593 Debt to capitalization ratio 48 % 15 % 48 % (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 April 30, 2017 October 31, 2016, $13.6 $8.9 unconsolidated joint ventures. These amounts were included in the “Accounts payable and accrued liabilities” balances in the tables above. On our Condensed Consolidated Balance Sheets, our “Investments in and advances to unconsolidated joint ventures” amounted to $106.7 $100.5 April 30, 2017 October 31, 2016, For the Three Months Ended April 30, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 86,556 $ 1,658 $ 88,214 Cost of sales and expenses (87,957 ) (1,841 ) (89,798 ) Joint venture net loss $ (1,401 ) $ (183 ) $ (1,584 ) Our share of net loss $ (4,583 ) $ (92 ) $ (4,675 ) For the Three Months Ended April 30, 2016 (In thousands) Homebuilding Land Development Total Revenues $ 25,760 $ 521 $ 26,281 Cost of sales and expenses (31,480 ) (96 ) (31,576 ) Joint venture net (loss) income $ (5,720 ) $ 425 $ (5,295 ) Our share of net (loss) income $ (1,353 ) $ 213 $ (1,140 ) For the Six Months Ended April 30, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 151,493 $ 2,860 $ 154,353 Cost of sales and expenses (155,183 ) (2,823 ) (158,006 ) Joint venture net (loss) income $ (3,690 ) $ 37 $ (3,653 ) Our share of net (loss) income $ (6,264 ) $ 18 $ (6,246 ) For the Six Months Ended April 30, 2016 (In thousands) Homebuilding Land Development Total Revenues $ 46,026 $ 1,617 $ 47,643 Cost of sales and expenses (55,659 ) (1,319 ) (56,978 ) Joint venture net (loss) income $ (9,633 ) $ 298 $ (9,335 ) Our share of net (loss) income $ (2,849 ) $ 149 $ (2,700 ) “ (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 $3.0 $1.1 three April 30, 2017 2016, $5.1 $1.9 six April 30, 2017 2016, In determining whether or not Typically, our unconsolidated joint ventures obtain separate pro ject specific mortgage financing. The amount of financing is generally targeted to be no 50% 48%. 810 10 not not |
Note 18 - Recent Accounting Pro
Note 18 - Recent Accounting Pronouncements | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 1 8 . Recent Accounting Pronouncements In May 2014, No. 2014 09, 606 2014 09” 2014 09 1 2 3 4 5 2014 09 605, August 2015, 2015 14 one 2014 09, November 1, 2018. December 15, 2016. In August 2014, 2014 15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern” (“ASU 2014 15” one 2014 15 October 31, 2017. not 2014 15 In February 2016, 2016 02, Leases (Topic 842 2016 02” 2016 02 12 2016 02 November 1, 2019. In August 2016, No. 2016 15, Statement of Cash Flows (Topic 230 2016 15” 2016 15 2016 15 November 1, 2018. In October 2016, No. 2016 16, Income Taxes (Topic 740 2016 16” 2016 16 2016 16 November 1, 2018. In October 2016, No. 2016 17, Consolidation (Topic 810 2016 17” 2016 17 2016 17 November 1, 2017. In November 2016, No. 2016 18, Statement of Cash Flows (Topic 230 2016 18” 2016 18 2016 18 November 1, 2018. |
Note 19 - Fair Value of Financi
Note 19 - Fair Value of Financial Instruments | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 19 . Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures,” provides a framework for measuring fair value, expands disclosures about fair-value measurements and establishes a fair-value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows: Level 1: Fair value determined based on quoted prices in active markets for identical assets. Level 2: Fair value determined using significant other observable inputs. Level 3: Fair value determined using significant unobservable inputs. Our financial instruments measure d at fair value on a recurring basis are summarized below: (In thousands) Fair Value Hierarchy Fair Value at April 30, 2017 Fair Value at October 31, 2016 Mortgage loans held for sale (1) Level 2 $ 88,307 $ 165,077 Interest rate lock commitments Level 2 100 (80 ) Forward contracts Level 2 (306 ) 86 T otal $ 88,101 $ 165,083 ( 1 The aggregate unpaid principal balance was $82.6 $149.4 April 30, 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 pro cess of $541.3 April 30, 2017. $59.5 April 30, 2017. 60 not The Financial Services segment uses investor commitments and forward sales of mandatory MBS to hedge its mortgage-related interest rate exposure. These instruments involve, to varying degrees, elements of credit and interest rate risk. Credit risk is managed by entering into MBS forward commitments, option contracts with investment banks, federally regulated bank affiliates and loan sales transactions with permanent investors meeting the segment’s credit standards. The segment’s risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At April 30, 2017, $32.0 June 21, 2017. The assets accounted for using the fair value option are initially measu red 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 April 30, 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 $ 645 $ 109 $ (422 ) Three Months Ended April 30, 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 $ (1,178 ) $ (377 ) $ 593 Six Months Ended April 30, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ (2,379 ) $ 179 $ (391 ) Six Months Ended April 30, 2016 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ 3,829 $ 30 $ (550 ) 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 six April 30, 2017 2016. Nonfinancial Assets Three Months Ended April 30, 2017 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 8,474 $ (1,549 ) $ 6,925 Land and land options held for future development or sale Level 3 $ - $ - $ - Three Months Ended April 30, 2016 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 15,710 $ (4,730 ) $ 10,980 Land and land options held for future development or sale Level 3 $ 1,012 $ (646 ) $ 366 Six Months Ended April 30, 2017 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 14,776 $ (4,136 ) $ 10,640 Land and land options held for future development or sale Level 3 $ 6,326 $ (81 ) $ 6,245 Six Months Ended April 30, 2016 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 44,238 $ (14,399 ) $ 29,839 Land and land options held for future development or sale Level 3 $ 1,169 $ (694 ) $ 475 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 $1.5 $4.2 three six April 30, 2017, $5.4 $15.1 three six April 30, 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 b ased on level 2 2 $314.3 $251.7 April 30, 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 $963.4 $4.0 $52.6 April 30, 2017. October 31, 2016, $883.0 $6.3 $55.2 |
Note 20 - Financial Information
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Condensed Financial Statements [Text Block] | 2 0 . 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 April 30, 2017, $1,067.0 $1,044.0 $368.5 $365.6 $4.0 $3.9 $52.6 6.0% $52.4 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 19 33, 7.0% 2019, 8.0% 2019 11 not, not 7.0% 2019, 8.0% 2019 7.0% 2019, 8.0% 2019, 2020 10.0% not The following Condensed Consolidating Financial Statements present the results of operations, financial position and cash flows of (i) the Parent, (ii) the Subsidiary Issuer, (iii) the Notes Guarantors, (iv) the Nonguarantor Subsidiaries and (v) the eliminations to arrive at the information for Hovnanian Enterprises, Inc. on a consolidated basis. HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING BALANCE SHEET APR IL 30, 2017 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $ - $ 201,443 $ 1,133,656 $ 394,507 $ - $ 1,729,606 Financial services 20,377 99,161 119,538 Income taxes receivable 134,291 (43,308 ) 193,437 32 284,452 Intercompany receivable 1,249,183 14,076 (1,263,259 ) - Investments in and amounts due from consolidated subsidiaries 372,077 (372,077 ) - Total assets $ 134,291 $ 1,407,318 $ 1,719,547 $ 507,776 $ (1,635,336 ) $ 2,133,596 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $ 2,467 $ 129 $ 488,589 $ 57,862 $ - $ 549,047 Financial services 19,725 77,352 97,077 Notes payable and term loan and Revolving credit facility 1,617,889 3,001 485 1,621,375 Intercompany payable 155,137 1,108,125 (1,263,262 ) - Amounts due to consolidated subsidiaries 110,590 23,975 (134,565 ) - Stockholders ’ (deficit) equity (133,903 ) (234,675 ) 100,107 372,077 (237,509 ) (133,903 ) Total liabilities and equity $ 134,291 $ 1,407,318 $ 1,719,547 $ 507,776 $ (1,635,336 ) $ 2,133,596 HOVNANIAN ENTERPRISES, INC. AND SUB SIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING BALANCE SHEET OCTOBER 31, 2016 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $ - $ 271,216 $ 1,194,267 $ 408,610 $ - $ 1,874,093 Financial services 13,453 183,777 197,230 Income taxes receivable 115,940 (58,597 ) 226,258 32 283,633 Intercompany receivable 1,227,334 88,112 (1,315,446 ) - Investments in and amounts due from consolidated subsidiaries 4,914 437,628 (442,542 ) - Total assets $ 115,940 $ 1,444,867 $ 1,871,606 $ 680,531 $ (1,757,988 ) $ 2,354,956 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $ 3,506 $ 1,118 $ 565,163 $ 83,476 $ - $ 653,263 Financial services 13,338 159,107 172,445 Notes payable and term loan and Revolving credit facility 1,652,357 5,084 317 1,657,758 Intercompany payable 157,993 1,157,453 (1,315,446 ) - Amounts due to consolidated subsidiaries 82,951 (82,951 ) - Stockholders ’ (deficit) equity (128,510 ) (208,608 ) 130,568 437,631 (359,591 ) (128,510 ) Total liabilities and equity $ 115,940 $ 1,444,867 $ 1,871,606 $ 680,531 $ (1,757,988 ) $ 2,354,956 HOVNANIAN ENTERPRISES, INC. AND SU BSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED APRIL 30, 201 7 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 483,942 $ 87,499 $ - $ 571,441 Financial services 2,749 11,745 14,494 Intercompany charges 23,218 (23,218 ) - Total revenues - 23,218 486,691 99,244 (23,218 ) 585,935 Expenses: Homebuilding 1,471 32,987 472,748 74,264 581,470 Financial services 1,760 5,600 7,360 Intercompany charges 23,218 (23,218 ) - Total expenses 1,471 32,987 497,726 79,864 (23,218 ) 588,830 Loss on extinguishment of debt (242 ) (242 ) I ncome (loss) from unconsolidated joint ventures 20 (4,582 ) (4,562 ) (Loss) income before income taxes (1,471 ) (10,011 ) (11,015 ) 14,798 - (7,699 ) State and federal income tax (benefit) provision (6,272 ) (8,354 ) 13,609 (1,017 ) Equity in (loss) income of consolidated subsidiaries (11,483 ) (14,886 ) 14,798 11,571 - Net (loss) income $ (6,682 ) $ (16,543 ) $ (9,826 ) $ 14,798 $ 11,571 $ (6,682 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED APRIL 30, 201 6 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 523,418 $ 114,302 $ - $ 637,720 Financial services 2,676 14,327 17,003 Intercompany charges 26,567 (26,567 ) - Total revenues - 26,567 526,094 128,629 (26,567 ) 654,723 Expenses: Homebuilding (343 ) 33,396 525,553 102,757 661,363 Financial services 1,823 7,795 9,618 Intercompany charges 25,838 729 (26,567 ) - Total expenses (343 ) 33,396 553,214 111,281 (26,567 ) 670,981 Income from unconsolidated joint ventures 7 (1,353 ) (1,346 ) (Loss) income before income taxes 343 (6,829 ) (27,113 ) 15,995 - (17,604 ) State and federal income tax benefit (4,885 ) (8,410 ) 4,152 (9,143 ) Equity in (loss) income of consolidated subsidiaries (13,689 ) (13,562 ) 15,995 11,256 - Net (loss) income $ (8,461 ) $ (11,981 ) $ (15,270 ) $ 15,995 $ 11,256 $ (8,461 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS SIX MONTHS ENDED APRIL 30, 201 7 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 939,314 $ 171,287 $ - $ 1,110,601 Financial services 5,247 22,096 27,343 Intercompany charges 46,158 (46,158 ) - Total revenues - 46,158 944,561 193,383 (46,158 ) 1,137,944 Expenses: Homebuilding 1,999 66,029 917,341 146,912 1,132,281 Financial services 3,473 10,742 14,215 Intercompany charges 46,158 (46,158 ) - Total expenses 1,999 66,029 966,972 157,654 (46,158 ) 1,146,496 Gain on extinguishment of debt 7,404 7,404 I ncome (loss) from unconsolidated joint ventures 36 (6,264 ) (6,228 ) (Loss) income before income taxes (1,999 ) (12,467 ) (22,375 ) 29,465 - (7,376 ) State and federal income tax (benefit) provision (22,813 ) (15,289 ) 37,551 (551 ) Equity in (loss) income of consolidated subsidiaries (27,639 ) (28,889 ) 29,465 27,063 - Net (loss) income $ (6,825 ) $ (26,067 ) $ (30,461 ) $ 29,465 $ 27,063 $ (6,825 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS SIX MONTHS ENDED APRIL 30, 201 6 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 998,328 $ 196,771 $ - $ 1,195,099 Financial services 4,921 30,308 35,229 Intercompany charges 61,107 (61,107 ) - Total revenues - 61,107 1,003,249 227,079 (61,107 ) 1,230,328 Expenses: Homebuilding 1,597 69,207 992,173 177,490 1,240,467 Financial services 3,447 14,386 17,833 Intercompany charges 60,301 806 (61,107 ) - Total expenses 1,597 69,207 1,055,921 192,682 (61,107 ) 1,258,300 Income (loss) from unconsolidated joint ventures 23 (2,849 ) (2,826 ) (Loss) income before income taxes (1,597 ) (8,100 ) (52,649 ) 31,548 - (30,798 ) State and federal income tax (benefit) provision (19,435 ) (15,328 ) 28,599 (6,164 ) Equity in (loss) income of consolidated subsidiaries (42,472 ) (27,072 ) 31,548 37,996 - Net (loss) income $ (24,634 ) $ (19,844 ) $ (49,700 ) $ 31,548 $ 37,996 $ (24,634 ) HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS SIX MONTHS ENDED APRIL 30, 201 7 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $ (6,825 ) $ (26,067 ) $ (30,461 ) $ 29,465 $ 27,063 $ (6,825 ) Adjustments to reconcile net (loss) income to net cash used in operating activities (17,958 ) (14,731 ) 168,583 15,212 (27,063 ) 124,043 Net cash (used in) provided by operating activities (24,783 ) (40,798 ) 138,122 44,677 - 117,218 Cash flows from investing activities: Proceeds from sale of property and assets 86 86 Purchase of property, equipment & other fixed assets and acquisitions (4,500 ) (4,500 ) Increase in restricted cash related to mortgage company (2,715 ) (2,715 ) Decrease in restricted cash related to letters of credit 1 1 Investments in and advances to unconsolidated joint ventures (240 ) (23,128 ) (23,368 ) Distributions of capital from unconsolidated joint ventures 27 10,708 10,735 Intercompany investing activities 7,043 (7,043 ) - Net cash provided by (used in) investing activities - 6,804 (4,387 ) (15,135 ) (7,043 ) (19,761 ) Cash flows from financing activities: Net payments related to mortgages and notes (3,116 ) (13,124 ) (16,240 ) Net proceeds from model sale leaseback financing programs 698 (2,516 ) (1,818 ) Net proceeds from land bank financing programs (27,176 ) (5,798 ) (32,974 ) Payments related to senior notes and senior amortizing notes (33,327 ) (33,327 ) Net proceeds related to mortgage warehouse lines of credit (75,471 ) (75,471 ) Deferred financing costs from land bank financing programs and note issuances (2,459 ) (973 ) (173 ) (3,605 ) Intercompany financing activities 24,783 (105,862 ) 74,036 7,043 - Net cash provided by (used in) financing activities 24,783 (35,786 ) (136,429 ) (23,046 ) 7,043 (163,435 ) Net (decrease) increase in cash - (69,780 ) (2,694 ) 6,496 - (65,978 ) Cash and cash equivalents balance, beginning of period 261,553 (395 ) 85,607 346,765 Cash and cash equivalents balance, end of period $ - $ 191,773 $ (3,089 ) $ 92,103 $ - $ 280,787 HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS SIX MONTHS ENDED APRIL 30, 201 6 (In Thousands) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $ (24,634 ) $ (19,844 ) $ (49,700 ) $ 31,548 $ 37,996 $ (24,634 ) Adjustments to reconcile net (loss) income to net cash used in operating activities (12,034 ) 22,078 120,711 (99,312 ) (37,996 ) (6,553 ) Net cash (used in) provided by operating activities (36,668 ) 2,234 71,011 (67,764 ) - (31,187 ) Cash flows from investing activities: Proceeds from sale of property and assets 94 21 115 Purchase of property, equipment & other fixed assets and acquisitions (1,620 ) (31 ) (1,651 ) Increase in restricted cash related to mortgage company (204 ) (204 ) Decrease in restricted cash related to letters of credit 325 325 Investments in and advances to unconsolidated joint ventures (130 ) (990 ) (15,623 ) (16,743 ) Distributions of capital from unconsolidated joint ventures (186 ) 1,087 4,164 5,065 Intercompany investing activities 80,160 (80,160 ) - Net cash (used in) provided by investing activities - 80,169 (1,429 ) (11,673 ) (80,160 ) (13,093 ) Cash flows from financing activities: Net payments related to mortgages and notes (13,649 ) (5,490 ) (19,139 ) Net proceeds from model sale leaseback financing programs 3,179 (1,960 ) 1,219 Net proceeds from land bank financing programs 90,425 24,048 114,473 Payments related to senior notes and senior amortizing notes (175,040 ) (175,040 ) Borrowings from revolving credit facility 3,000 3,000 Net proceeds related to mortgage warehouse lines of credit 257 257 Deferred financing costs from land bank financing programs and note issuances (3,380 ) (1,201 ) (4,581 ) Intercompany financing activities 36,668 (146,900 ) 30,072 80,160 - Net cash (used in) provided by financing activities 36,668 (172,040 ) (70,325 ) 45,726 80,160 (79,811 ) Net decrease in cash and cash equivalents - (89,637 ) (743 ) (33,711 ) - (124,091 ) Cash and cash equivalents balance, beginning of period 199,318 (4,800 ) 59,227 253,745 Cash and cash equivalents balance, end of period $ - $ 109,681 $ (5,543 ) $ 25,516 $ - $ 129,654 |
Note 21 - Transactions With Rel
Note 21 - Transactions With Related Parties | 6 Months Ended |
Apr. 30, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 2 1 . Transactions with Related Parties During the three April 30, 2017 2016, our Chairman of the Board of Directors and our Chief Executive Officer, provided services to the Company totaling $0.2 $0.4 six April 30, 2017 2016, $0.4 $0.7 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Hovnanian Enterprises, Inc. and Subsidiaries (the “ Company”, “we”, “us” or “our”) has reportable segments consisting of six 16 The accompanying unaudited Condensed Consolidated Financial Statements include our accounts and those of all wholly-owned subsidiaries after elimination of all significant intercompany balances and transactions. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“ GAAP”) for interim financial information and with the instructions to Form 10 10 X 10 October 31, 2016. not October 31, 2016 not |
Reclassification, Policy [Policy Text Block] | Reclassifications In November 2016, ASU”) 2015 03, $24.5 $1.3 not $3.0 $20.2 11 2017 November 2016, 2015 15 835 30 2015 15” 2015 03. 2015 15 no |
Note 3 - Interest (Tables)
Note 3 - Interest (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block] | Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 2017 2016 Interest capitalized at beginning of period $ 94,438 $ 117,113 $ 96,688 $ 123,898 Plus interest incurred (1) 39,156 44,224 77,855 86,183 Less cost of sales interest expensed 20,337 21,444 38,659 38,287 Less other interest expensed (2)(3) 22,297 24,084 44,924 45,309 Less interest contributed to unconsolidated joint venture (4) - - - 10,676 Interest capitalized at end of period (5) $ 90,960 $ 115,809 $ 90,960 $ 115,809 |
Cash Paid for Interest Net of Capitalized Interest [Table Text Block] | Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 2017 2016 Other interest expensed $ 22,297 $ 24,084 $ 44,924 $ 45,309 Interest paid by our mortgage and finance subsidiaries 455 851 1,084 1,410 Decrease (increase) in accrued interest 591 (9,948 ) 1,354 1,268 Cash paid for interest, net of capitalized interest $ 23,343 $ 14,987 $ 47,362 $ 47,987 |
Note 6 - Warranty Costs (Tables
Note 6 - Warranty Costs (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 2017 2016 Balance, beginning of period $ 118,013 $ 133,389 $ 121,144 $ 135,053 Additions – Selling, general and administrative 2,856 4,292 5,764 8,915 Additions – Cost of sales 3,515 4,539 7,002 7,921 Charges incurred during the period (7,177 ) (5,514 ) (16,703 ) (15,183 ) Changes to pre-existing reserves - - - - Balance, end of period $ 117,207 $ 136,706 $ 117,207 $ 136,706 |
Note 9 - Mortgage Loans Held 31
Note 9 - Mortgage Loans Held for Sale (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 2017 2016 Loan origination reserves, beginning of period $ 5,077 $ 8,028 $ 8,137 $ 8,025 Provisions for losses during the period 45 117 79 158 Adjustments to pre-existing provisions for losses from changes in estimates (1,340 ) 161 (4,434 ) 123 Loan origination reserves, end of period $ 3,782 $ 8,306 $ 3,782 $ 8,306 |
Note 11 - Senior Notes and Te32
Note 11 - Senior Notes and Term Loan (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | (In thousands) April 30, 2017(1)(2) October 31, 2016(1)(2) Senior Secured Term Loan, net of debt issuance costs $ 72,412 $ 72,646 Senior Secured Notes: 7.25% Senior Secured First Lien Notes due October 15, 2020 $ 570,561 $ 569,641 10.0% Senior Secured Second Lien Notes due October 15, 2018 (net of discount) 69,724 68,951 9.125% Senior Secured Second Lien Notes due November 15, 2020 143,541 143,337 9.5% Senior Secured Notes due November 15, 2020 74,245 74,140 2.0% Senior Secured Notes due November 1, 2021 (net of discount) 53,040 53,022 5.0% Senior Secured Notes due November 1, 2021 (net of discount) 132,852 131,998 Total Senior Secured Notes, net of debt issuance costs $ 1,043,963 $ 1,041,089 Senior Notes: 7.0% Senior Notes due January 15, 2019 $ 131,721 $ 148,800 8.0% Senior Notes due November 1, 2019 233,875 247,348 Total Senior Notes, net of debt issuance costs $ 365,596 $ 396,148 11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs $ 3,938 $ 6,152 Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs $ 52,395 $ 57,298 |
Note 16 - Operating and Repor33
Note 16 - Operating and Reporting Segments (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (In thousands) April 30, 2017 October 31, 2016 Assets: Northeast $ 196,796 $ 219,363 Mid-Atlantic 290,279 292,899 Midwest 103,805 111,596 Southeast 236,085 226,124 Southwest 337,646 341,472 West 207,773 269,400 Total homebuilding 1,372,384 1,460,854 Financial services 119,538 197,230 Corporate and unallocated(1) 641,674 696,872 Total assets $ 2,133,596 $ 2,354,956 |
Operating Segments [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended April 30, Six Months Ended April 30, (In thousands) 2017 2016 201 7 201 6 Revenues: Northeast $ 45,950 $ 54,046 $ 104,525 $ 126,550 Mid-Atlantic 100,600 89,987 200,826 183,807 Midwest 42,019 84,631 85,721 176,551 Southeast 56,635 51,298 113,219 90,550 Southwest 225,255 276,735 408,664 481,060 West 100,843 81,095 197,374 136,673 Total homebuilding 571,302 637,792 1,110,329 1,195,191 Financial services 14,494 17,003 27,343 35,229 Corporate and unallocated 139 (72 ) 272 (92 ) Total revenues $ 585,935 $ 654,723 $ 1,137,944 $ 1,230,328 (Loss) income before income taxes: Northeast $ (2,722 ) $ (6,684 ) $ (1,816 ) $ (3,950 ) Mid-Atlantic 918 1,072 4,800 3,694 Midwest (3,170 ) (23 ) (2,458 ) (5,582 ) Southeast 428 (7,255 ) 134 (9,089 ) Southwest 19,785 18,491 31,708 34,860 West 2,317 (4,318 ) 1,563 (10,286 ) Homebuilding income before income taxes 17,556 1,283 33,931 9,647 Financial services 7,134 7,385 13,128 17,396 Corporate and unallocated (1) (32,389 ) (26,272 ) (54,435 ) (57,841 ) Loss before income taxes $ (7,699 ) $ (17,604 ) $ (7,376 ) $ (30,798 ) |
Note 17 - Investments in Unco34
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | (Dollars in thousands) April 30, 2017 Homebuilding Land Development Total Assets: Cash and cash equivalents $ 44,927 $ 162 $ 45,089 Inventories 625,716 9,941 635,657 Other assets 28,847 - 28,847 Total assets $ 699,490 $ 10,103 $ 709,593 Liabilities and equity: Accounts payable and accrued liabilities $ 97,887 $ 473 $ 98,360 Notes payable 289,791 1,490 291,281 Total liabilities 387,678 1,963 389,641 Equity of: Hovnanian Enterprises, Inc. 89,904 3,238 93,142 Others 221,908 4,902 226,810 Total equity 311,812 8,140 319,952 Total liabilities and equity $ 699,490 $ 10,103 $ 709,593 Debt to capitalization ratio 48 % 15 % 48 % (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 April 30, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 86,556 $ 1,658 $ 88,214 Cost of sales and expenses (87,957 ) (1,841 ) (89,798 ) Joint venture net loss $ (1,401 ) $ (183 ) $ (1,584 ) Our share of net loss $ (4,583 ) $ (92 ) $ (4,675 ) For the Three Months Ended April 30, 2016 (In thousands) Homebuilding Land Development Total Revenues $ 25,760 $ 521 $ 26,281 Cost of sales and expenses (31,480 ) (96 ) (31,576 ) Joint venture net (loss) income $ (5,720 ) $ 425 $ (5,295 ) Our share of net (loss) income $ (1,353 ) $ 213 $ (1,140 ) For the Six Months Ended April 30, 2017 (In thousands) Homebuilding Land Development Total Revenues $ 151,493 $ 2,860 $ 154,353 Cost of sales and expenses (155,183 ) (2,823 ) (158,006 ) Joint venture net (loss) income $ (3,690 ) $ 37 $ (3,653 ) Our share of net (loss) income $ (6,264 ) $ 18 $ (6,246 ) For the Six Months Ended April 30, 2016 (In thousands) Homebuilding Land Development Total Revenues $ 46,026 $ 1,617 $ 47,643 Cost of sales and expenses (55,659 ) (1,319 ) (56,978 ) Joint venture net (loss) income $ (9,633 ) $ 298 $ (9,335 ) Our share of net (loss) income $ (2,849 ) $ 149 $ (2,700 ) |
Note 19 - Fair Value of Finan35
Note 19 - Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Apr. 30, 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 April 30, 2017 Fair Value at October 31, 2016 Mortgage loans held for sale (1) Level 2 $ 88,307 $ 165,077 Interest rate lock commitments Level 2 100 (80 ) Forward contracts Level 2 (306 ) 86 T otal $ 88,101 $ 165,083 |
Fair Value, Option, Quantitative Disclosures [Table Text Block] | Three Months Ended April 30, 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 $ 645 $ 109 $ (422 ) Three Months Ended April 30, 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 $ (1,178 ) $ (377 ) $ 593 Six Months Ended April 30, 2017 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ (2,379 ) $ 179 $ (391 ) Six Months Ended April 30, 2016 (In thousands) Mortgage Loans Held For Sale Interest Rate Lock Commitments Forward Contracts Changes in fair value included in net loss all reflected in financial services revenues $ 3,829 $ 30 $ (550 ) |
Fair Value Measurements, Nonrecurring [Table Text Block] | Three Months Ended April 30, 2017 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 8,474 $ (1,549 ) $ 6,925 Land and land options held for future development or sale Level 3 $ - $ - $ - Three Months Ended April 30, 2016 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 15,710 $ (4,730 ) $ 10,980 Land and land options held for future development or sale Level 3 $ 1,012 $ (646 ) $ 366 Six Months Ended April 30, 2017 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 14,776 $ (4,136 ) $ 10,640 Land and land options held for future development or sale Level 3 $ 6,326 $ (81 ) $ 6,245 Six Months Ended April 30, 2016 (In thousands) Fair Value Hierarchy Pre-Impairment Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 44,238 $ (14,399 ) $ 29,839 Land and land options held for future development or sale Level 3 $ 1,169 $ (694 ) $ 475 |
Note 20 - Financial Informati36
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors (Tables) | 6 Months Ended |
Apr. 30, 2017 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $ - $ 201,443 $ 1,133,656 $ 394,507 $ - $ 1,729,606 Financial services 20,377 99,161 119,538 Income taxes receivable 134,291 (43,308 ) 193,437 32 284,452 Intercompany receivable 1,249,183 14,076 (1,263,259 ) - Investments in and amounts due from consolidated subsidiaries 372,077 (372,077 ) - Total assets $ 134,291 $ 1,407,318 $ 1,719,547 $ 507,776 $ (1,635,336 ) $ 2,133,596 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $ 2,467 $ 129 $ 488,589 $ 57,862 $ - $ 549,047 Financial services 19,725 77,352 97,077 Notes payable and term loan and Revolving credit facility 1,617,889 3,001 485 1,621,375 Intercompany payable 155,137 1,108,125 (1,263,262 ) - Amounts due to consolidated subsidiaries 110,590 23,975 (134,565 ) - Stockholders ’ (deficit) equity (133,903 ) (234,675 ) 100,107 372,077 (237,509 ) (133,903 ) Total liabilities and equity $ 134,291 $ 1,407,318 $ 1,719,547 $ 507,776 $ (1,635,336 ) $ 2,133,596 Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS: Homebuilding $ - $ 271,216 $ 1,194,267 $ 408,610 $ - $ 1,874,093 Financial services 13,453 183,777 197,230 Income taxes receivable 115,940 (58,597 ) 226,258 32 283,633 Intercompany receivable 1,227,334 88,112 (1,315,446 ) - Investments in and amounts due from consolidated subsidiaries 4,914 437,628 (442,542 ) - Total assets $ 115,940 $ 1,444,867 $ 1,871,606 $ 680,531 $ (1,757,988 ) $ 2,354,956 LIABILITIES AND EQUITY: Homebuilding, excluding Notes payable and term loan and Revolving credit facility $ 3,506 $ 1,118 $ 565,163 $ 83,476 $ - $ 653,263 Financial services 13,338 159,107 172,445 Notes payable and term loan and Revolving credit facility 1,652,357 5,084 317 1,657,758 Intercompany payable 157,993 1,157,453 (1,315,446 ) - Amounts due to consolidated subsidiaries 82,951 (82,951 ) - Stockholders ’ (deficit) equity (128,510 ) (208,608 ) 130,568 437,631 (359,591 ) (128,510 ) Total liabilities and equity $ 115,940 $ 1,444,867 $ 1,871,606 $ 680,531 $ (1,757,988 ) $ 2,354,956 |
Condensed Income Statement [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 483,942 $ 87,499 $ - $ 571,441 Financial services 2,749 11,745 14,494 Intercompany charges 23,218 (23,218 ) - Total revenues - 23,218 486,691 99,244 (23,218 ) 585,935 Expenses: Homebuilding 1,471 32,987 472,748 74,264 581,470 Financial services 1,760 5,600 7,360 Intercompany charges 23,218 (23,218 ) - Total expenses 1,471 32,987 497,726 79,864 (23,218 ) 588,830 Loss on extinguishment of debt (242 ) (242 ) I ncome (loss) from unconsolidated joint ventures 20 (4,582 ) (4,562 ) (Loss) income before income taxes (1,471 ) (10,011 ) (11,015 ) 14,798 - (7,699 ) State and federal income tax (benefit) provision (6,272 ) (8,354 ) 13,609 (1,017 ) Equity in (loss) income of consolidated subsidiaries (11,483 ) (14,886 ) 14,798 11,571 - Net (loss) income $ (6,682 ) $ (16,543 ) $ (9,826 ) $ 14,798 $ 11,571 $ (6,682 ) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 523,418 $ 114,302 $ - $ 637,720 Financial services 2,676 14,327 17,003 Intercompany charges 26,567 (26,567 ) - Total revenues - 26,567 526,094 128,629 (26,567 ) 654,723 Expenses: Homebuilding (343 ) 33,396 525,553 102,757 661,363 Financial services 1,823 7,795 9,618 Intercompany charges 25,838 729 (26,567 ) - Total expenses (343 ) 33,396 553,214 111,281 (26,567 ) 670,981 Income from unconsolidated joint ventures 7 (1,353 ) (1,346 ) (Loss) income before income taxes 343 (6,829 ) (27,113 ) 15,995 - (17,604 ) State and federal income tax benefit (4,885 ) (8,410 ) 4,152 (9,143 ) Equity in (loss) income of consolidated subsidiaries (13,689 ) (13,562 ) 15,995 11,256 - Net (loss) income $ (8,461 ) $ (11,981 ) $ (15,270 ) $ 15,995 $ 11,256 $ (8,461 ) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 939,314 $ 171,287 $ - $ 1,110,601 Financial services 5,247 22,096 27,343 Intercompany charges 46,158 (46,158 ) - Total revenues - 46,158 944,561 193,383 (46,158 ) 1,137,944 Expenses: Homebuilding 1,999 66,029 917,341 146,912 1,132,281 Financial services 3,473 10,742 14,215 Intercompany charges 46,158 (46,158 ) - Total expenses 1,999 66,029 966,972 157,654 (46,158 ) 1,146,496 Gain on extinguishment of debt 7,404 7,404 I ncome (loss) from unconsolidated joint ventures 36 (6,264 ) (6,228 ) (Loss) income before income taxes (1,999 ) (12,467 ) (22,375 ) 29,465 - (7,376 ) State and federal income tax (benefit) provision (22,813 ) (15,289 ) 37,551 (551 ) Equity in (loss) income of consolidated subsidiaries (27,639 ) (28,889 ) 29,465 27,063 - Net (loss) income $ (6,825 ) $ (26,067 ) $ (30,461 ) $ 29,465 $ 27,063 $ (6,825 ) Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues: Homebuilding $ - $ - $ 998,328 $ 196,771 $ - $ 1,195,099 Financial services 4,921 30,308 35,229 Intercompany charges 61,107 (61,107 ) - Total revenues - 61,107 1,003,249 227,079 (61,107 ) 1,230,328 Expenses: Homebuilding 1,597 69,207 992,173 177,490 1,240,467 Financial services 3,447 14,386 17,833 Intercompany charges 60,301 806 (61,107 ) - Total expenses 1,597 69,207 1,055,921 192,682 (61,107 ) 1,258,300 Income (loss) from unconsolidated joint ventures 23 (2,849 ) (2,826 ) (Loss) income before income taxes (1,597 ) (8,100 ) (52,649 ) 31,548 - (30,798 ) State and federal income tax (benefit) provision (19,435 ) (15,328 ) 28,599 (6,164 ) Equity in (loss) income of consolidated subsidiaries (42,472 ) (27,072 ) 31,548 37,996 - Net (loss) income $ (24,634 ) $ (19,844 ) $ (49,700 ) $ 31,548 $ 37,996 $ (24,634 ) |
Condensed Cash Flow Statement [Table Text Block] | Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $ (6,825 ) $ (26,067 ) $ (30,461 ) $ 29,465 $ 27,063 $ (6,825 ) Adjustments to reconcile net (loss) income to net cash used in operating activities (17,958 ) (14,731 ) 168,583 15,212 (27,063 ) 124,043 Net cash (used in) provided by operating activities (24,783 ) (40,798 ) 138,122 44,677 - 117,218 Cash flows from investing activities: Proceeds from sale of property and assets 86 86 Purchase of property, equipment & other fixed assets and acquisitions (4,500 ) (4,500 ) Increase in restricted cash related to mortgage company (2,715 ) (2,715 ) Decrease in restricted cash related to letters of credit 1 1 Investments in and advances to unconsolidated joint ventures (240 ) (23,128 ) (23,368 ) Distributions of capital from unconsolidated joint ventures 27 10,708 10,735 Intercompany investing activities 7,043 (7,043 ) - Net cash provided by (used in) investing activities - 6,804 (4,387 ) (15,135 ) (7,043 ) (19,761 ) Cash flows from financing activities: Net payments related to mortgages and notes (3,116 ) (13,124 ) (16,240 ) Net proceeds from model sale leaseback financing programs 698 (2,516 ) (1,818 ) Net proceeds from land bank financing programs (27,176 ) (5,798 ) (32,974 ) Payments related to senior notes and senior amortizing notes (33,327 ) (33,327 ) Net proceeds related to mortgage warehouse lines of credit (75,471 ) (75,471 ) Deferred financing costs from land bank financing programs and note issuances (2,459 ) (973 ) (173 ) (3,605 ) Intercompany financing activities 24,783 (105,862 ) 74,036 7,043 - Net cash provided by (used in) financing activities 24,783 (35,786 ) (136,429 ) (23,046 ) 7,043 (163,435 ) Net (decrease) increase in cash - (69,780 ) (2,694 ) 6,496 - (65,978 ) Cash and cash equivalents balance, beginning of period 261,553 (395 ) 85,607 346,765 Cash and cash equivalents balance, end of period $ - $ 191,773 $ (3,089 ) $ 92,103 $ - $ 280,787 Parent Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net (loss) income $ (24,634 ) $ (19,844 ) $ (49,700 ) $ 31,548 $ 37,996 $ (24,634 ) Adjustments to reconcile net (loss) income to net cash used in operating activities (12,034 ) 22,078 120,711 (99,312 ) (37,996 ) (6,553 ) Net cash (used in) provided by operating activities (36,668 ) 2,234 71,011 (67,764 ) - (31,187 ) Cash flows from investing activities: Proceeds from sale of property and assets 94 21 115 Purchase of property, equipment & other fixed assets and acquisitions (1,620 ) (31 ) (1,651 ) Increase in restricted cash related to mortgage company (204 ) (204 ) Decrease in restricted cash related to letters of credit 325 325 Investments in and advances to unconsolidated joint ventures (130 ) (990 ) (15,623 ) (16,743 ) Distributions of capital from unconsolidated joint ventures (186 ) 1,087 4,164 5,065 Intercompany investing activities 80,160 (80,160 ) - Net cash (used in) provided by investing activities - 80,169 (1,429 ) (11,673 ) (80,160 ) (13,093 ) Cash flows from financing activities: Net payments related to mortgages and notes (13,649 ) (5,490 ) (19,139 ) Net proceeds from model sale leaseback financing programs 3,179 (1,960 ) 1,219 Net proceeds from land bank financing programs 90,425 24,048 114,473 Payments related to senior notes and senior amortizing notes (175,040 ) (175,040 ) Borrowings from revolving credit facility 3,000 3,000 Net proceeds related to mortgage warehouse lines of credit 257 257 Deferred financing costs from land bank financing programs and note issuances (3,380 ) (1,201 ) (4,581 ) Intercompany financing activities 36,668 (146,900 ) 30,072 80,160 - Net cash (used in) provided by financing activities 36,668 (172,040 ) (70,325 ) 45,726 80,160 (79,811 ) Net decrease in cash and cash equivalents - (89,637 ) (743 ) (33,711 ) - (124,091 ) Cash and cash equivalents balance, beginning of period 199,318 (4,800 ) 59,227 253,745 Cash and cash equivalents balance, end of period $ - $ 109,681 $ (5,543 ) $ 25,516 $ - $ 129,654 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) $ in Millions | 6 Months Ended |
Apr. 30, 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 | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Allocated Share-based Compensation Expense, Net of Tax | $ 0.9 | $ 1.4 | $ 0.7 | |
Share-based Compensation Income | $ 0.7 | |||
Allocated Share-based Compensation Expense | 1 | 1.5 | 0.8 | |
Employee Stock Option [Member] | ||||
Allocated Share-based Compensation Expense | $ 0.1 | 0.1 | $ 0.2 | $ 0.2 |
Performance Shares [Member] | ||||
Share-based Compensation, Reverse of Previously Recognized Expense | $ 2.1 |
Note 3 - Interest (Details Text
Note 3 - Interest (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 22,297 | $ 24,084 | $ 44,924 | $ 45,309 |
Qualifying Assets Not Exceeding Debt [Member] | |||||
Real Estate Inventory Expense Not Eligible for Capitalization | 16,000 | 12,200 | 29,300 | 26,700 | |
Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member] | |||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 6,300 | $ 11,900 | $ 15,600 | $ 18,600 | |
[1] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: | ||||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $16.0 million and $12.2 million for the three months ended April 30, 2017 and 2016, respectively, and $29.3 million and $26.7 million for the six months ended April 30, 2017 and 2016, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $6.3 million and $11.9 million for the three months ended April 30, 2017 and 2016, respectively, and $15.6 million and $18.6 million for the six months ended April 30, 2017 and 2016, respectively. |
Note 3 - Interest - Interest Co
Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | ||
Interest capitalized at beginning of period | $ 94,438 | $ 117,113 | $ 96,688 | $ 123,898 | |
Plus interest incurred (1) | [1] | 39,156 | 44,224 | 77,855 | 86,183 |
Less cost of sales interest expensed | 20,337 | 21,444 | 38,659 | 38,287 | |
Less other interest expensed (2)(3) | [2],[3] | 22,297 | 24,084 | 44,924 | 45,309 |
Less interest contributed to unconsolidated joint venture (4) | [4] | 10,676 | |||
Interest capitalized at end of period (5) | [5] | $ 90,960 | $ 115,809 | $ 90,960 | $ 115,809 |
[1] | Data does not include interest incurred by our mortgage and finance subsidiaries. | ||||
[2] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: | ||||
[3] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $16.0 million and $12.2 million for the three months ended April 30, 2017 and 2016, respectively, and $29.3 million and $26.7 million for the six months ended April 30, 2017 and 2016, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $6.3 million and $11.9 million for the three months ended April 30, 2017 and 2016, respectively, and $15.6 million and $18.6 million for the six months ended April 30, 2017 and 2016, respectively. | ||||
[4] | Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in November 2015, as discussed in Note 17. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction. | ||||
[5] | Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Note 3 - Interest - Cash Paid f
Note 3 - Interest - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 22,297 | $ 24,084 | $ 44,924 | $ 45,309 |
Interest paid by our mortgage and finance subsidiaries | 455 | 851 | 1,084 | 1,410 | |
Decrease (increase) in accrued interest | 591 | (9,948) | 1,354 | 1,268 | |
Cash paid for interest, net of capitalized interest | $ 23,343 | $ 14,987 | $ 47,362 | $ 47,987 | |
[1] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: | ||||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $16.0 million and $12.2 million for the three months ended April 30, 2017 and 2016, respectively, and $29.3 million and $26.7 million for the six months ended April 30, 2017 and 2016, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $6.3 million and $11.9 million for the three months ended April 30, 2017 and 2016, respectively, and $15.6 million and $18.6 million for the six months ended April 30, 2017 and 2016, respectively. |
Note 4 - Reduction of Invento42
Note 4 - Reduction of Inventory to Fair Value (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Oct. 31, 2016USD ($) | ||
Number of Communities Evaluated for Impairment | 381 | 478 | ||||
Number of Communities Performed Detailed Impairment Calculations | 9 | 20 | ||||
Carrying Value of Communities Tested for Impairment | $ 66,900 | $ 89,000 | ||||
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount By Less Than 20 Percent | 3 | 9 | ||||
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount by Less than 20 Percent | $ 45,800 | $ 43,500 | ||||
Percentage Undiscounted Cash Flow Exceeds Carrying Amount | 20.00% | |||||
Impairment of Real Estate | $ 1,500 | $ 5,400 | $ 4,200 | $ 15,100 | ||
Number of Communities Impaired | 1 | 4 | 6 | 10 | ||
PreImpairment Value | $ 8,500 | $ 16,700 | $ 21,100 | $ 45,400 | ||
Homebuilding [Member] | ||||||
Land Option Write Offs | $ 400 | $ 4,300 | $ 900 | $ 6,300 | ||
Number of Walk Away Lots | 478 | 2,263 | 1,539 | 3,519 | ||
Number of Communities Mothballed During the Period | 0 | |||||
Number of Previously Mothballed Communities Sold During the Period | 2 | |||||
Number of Mothballed Communities Reactivated | 2 | |||||
Number of Communities Mothballed | 25 | 25 | 29 | |||
Inventory Real Estate Mothballed Communities | $ 66,000 | $ 66,000 | $ 74,400 | |||
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges | 239,900 | 239,900 | 296,300 | |||
Inventory Real Estate Specific Performance Options | 0 | 0 | 0 | |||
Liabilities from Inventory Real Estate Not Owned | 116,728 | 116,728 | 150,179 | [1] | ||
Homebuilding [Member] | Model Sale Leaseback Financing Arrangements [Member] | ||||||
Inventory Real Estate, Other Options | 76,500 | 76,500 | 79,200 | |||
Liabilities from Inventory Real Estate Not Owned | 68,100 | 68,100 | 69,700 | |||
Homebuilding [Member] | Land Banking Arrangement [Member] | ||||||
Inventory Real Estate, Other Options | 78,100 | 78,100 | 129,500 | |||
Liabilities from Inventory Real Estate Not Owned | $ 48,600 | $ 48,600 | $ 80,500 | |||
Homebuilding [Member] | Real Estate Inventory [Member] | Minimum [Member] | ||||||
Fair Value Inputs, Discount Rate | 18.30% | 16.80% | ||||
Homebuilding [Member] | Real Estate Inventory [Member] | Maximum [Member] | ||||||
Fair Value Inputs, Discount Rate | 19.80% | 18.50% | ||||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 5 - Variable Interest En43
Note 5 - Variable Interest Entities (Details Textual) $ in Millions | Apr. 30, 2017USD ($) |
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 52.9 |
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 980.8 |
Note 6 - Warranty Costs (Detail
Note 6 - Warranty Costs (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | |
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims | $ 21,000 | $ 21,000 | $ 21,000 | $ 21,000 |
Payments by Insurance Companies for Claims | 200 | 500 | 200 | 3,700 |
Cash Received from Subcontractors for Owner Controlled Insurance Program | 1,800 | 2,000 | ||
General Liability Insurance Deductible | 20,000 | 20,000 | 20,000 | 20,000 |
Bodily Injury Insurance Deductible | 250 | 250 | 250 | 250 |
Bodily Injury Insurance Limit | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 |
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 | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Balance, beginning of period | $ 118,013 | $ 133,389 | $ 121,144 | $ 135,053 |
Charges incurred during the period | (7,177) | (5,514) | (16,703) | (15,183) |
Changes to pre-existing reserves | ||||
Balance, end of period | 117,207 | 136,706 | 117,207 | 136,706 |
Selling, General and Administrative Expenses [Member] | ||||
Additions | 2,856 | 4,292 | 5,764 | 8,915 |
Cost of Sales [Member] | ||||
Additions | $ 3,515 | $ 4,539 | $ 7,002 | $ 7,921 |
Note 7 - Commitments and Cont46
Note 7 - Commitments and Contingent Liabilities (Details Textual) - USD ($) | Jun. 01, 2017 | Apr. 30, 2017 |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | ||
Loss Contingency, Damages Sought, Value | $ 41,300,000 | |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Subsequent Event [Member] | ||
Loss Contingency, Damages Awarded, Value | $ 9,000,000 | |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Subsequent Event [Member] | Minimum [Member] | ||
Loss Contingency, Estimate of Possible Loss | 0 | |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Subsequent Event [Member] | Maximum [Member] | ||
Loss Contingency, Estimate of Possible Loss | 9,000,000 | |
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] | Subsequent Event [Member] | Breach of Warranty and New Jersey Fraud Claims Prior to Statutory Trebling [Member] | ||
Loss Contingency, Damages Awarded, Value | $ 3,000,000 | |
Construction and Design Defects Lawsuit from Second Condominium Association [Member] | ||
Loss Contingency, Damages Sought, Value | $ 70,000,000 |
Note 8 - Restricted Cash and 47
Note 8 - Restricted Cash and Deposits (Details Textual) - USD ($) $ in Thousands | Apr. 30, 2017 | Oct. 31, 2016 | |
Cash Equivalents, at Carrying Value | $ 6,700 | $ 9,400 | |
Restricted Cash and Cash Equivalents | 24,700 | 22,900 | |
Homebuilding [Member] | |||
Restricted Cash and Cash Equivalents | 1,797 | 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 | 20,900 | 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. See notes to condensed consolidated financial statements (unaudited). |
Note 9 - Mortgage Loans Held 48
Note 9 - Mortgage Loans Held for Sale (Details Textual) $ in Millions | Apr. 30, 2017USD ($) | Oct. 31, 2016USD ($) | Apr. 30, 2016 |
Loans Pledged as Collateral | $ 72 | $ 147.4 | |
Number of Loans Reserved For | 94 | 132 |
Note 9 - Mortgage Loans Held 49
Note 9 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Loan origination reserves, beginning of period | $ 5,077 | $ 8,028 | $ 8,137 | $ 8,025 |
Provisions for losses during the period | 45 | 117 | 79 | 158 |
Adjustments to pre-existing provisions for losses from changes in estimates | (1,340) | 161 | (4,434) | 123 |
Loan origination reserves, end of period | $ 3,782 | $ 8,306 | $ 3,782 | $ 8,306 |
Note 10 - Mortgages and Notes50
Note 10 - Mortgages and Notes Payable (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2013 | Apr. 30, 2017 | Oct. 31, 2016 | ||
Letter of Credit [Member] | ||||
Letters of Credit Outstanding, Amount | $ 1,700 | $ 1,700 | ||
Citi Bank [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument, Term | 5 years | |||
Debt Instrument Basis Spread on Variable Rate Number of Business Days Prior to First Day of Interest Period Spread Determined | 2 days | |||
Long-term Line of Credit | $ 52,000 | 52,000 | ||
Letters of Credit Outstanding, Amount | 15,400 | 17,900 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | |||
JP Morgan Chase Bank [Member] | ||||
Warehouse Agreement Borrowings | 27,800 | 44,100 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument Variable Rate Basis Adjusted London Interbank Offered Rate LIBOR | 1.00% | |||
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] | ||||
Warehouse Agreement Borrowings | $ 27,800 | 38,800 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
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 | 66,365 | 82,115 | ||
Debt Instrument, Collateral Amount | $ 192,700 | $ 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 | $ 13,700 | $ 14,300 | ||
Debt, Weighted Average Interest Rate | 8.80% | 8.80% | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 700 | |||
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 | $ 13,675 | $ 14,312 | [1] | |
8.0% Senior Notes Due 2019 [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
The 7.25% 2020 Notes, 9.125% 2020 Notes, 2018 10.0% Second Lien Notes and Term Loan [Member] | Senior Secured Notes [Member] | Letter of Credit [Member] | Restricted Cash [Member] | ||||
Cash Collateral for Borrowed Securities | $ 1,700 | 1,700 | ||
Credit Suisse Master Repurchase Agreement [Member] | ||||
Warehouse Agreement Borrowings | 0 | 32,900 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | |||
Comerica Master Repurchase Agreement [Member] | ||||
Warehouse Agreement Borrowings | 14,500 | $ 29,800 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument Variable Rate Basis Floor Rate | 0.25% | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 11 - Senior Notes and Te51
Note 11 - Senior Notes and Term Loan (Details Textual) | Jun. 01, 2013USD ($) | Oct. 02, 2012USD ($)$ / sharesshares | Nov. 30, 2016USD ($)shares | Sep. 30, 2016USD ($)shares | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2017USD ($)shares | Apr. 30, 2016USD ($) | Oct. 31, 2016USD ($) | Sep. 08, 2016USD ($) | |
Interest Payable | $ 31,100,000 | $ 31,100,000 | $ 32,400,000 | ||||||||
Debt Covenant Fixed Charge Coverage Ratio Minimum | 2 | 2 | |||||||||
Gain (Loss) on Extinguishment of Debt | $ (242,000) | $ 7,404,000 | |||||||||
Debt Issuance Costs, Net | 17,800,000 | $ 17,800,000 | |||||||||
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 | $ 30,800,000 | |||||||||
Gain (Loss) on Extinguishment of Debt | 7,800,000 | ||||||||||
9.5 % Senior Secured Notes [Member] | |||||||||||
Gain (Loss) on Extinguishment of Debt | $ (400,000) | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | 9.50% | |||||||||
Senior Secured Term Loan [Member] | |||||||||||
Debt Instrument, Voluntary Prepayment Premium, Aggregate Principal Amount, Percentage | 1.00% | 1.00% | |||||||||
Senior Secured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | ||||||||||
Senior Secured Term Loan [Member] | Base Rate [Member] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.00% | ||||||||||
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 | [1],[2] | 5.00% | 5.00% | 5.00% | |||||||
The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 2.00% | 2.00% | 2.00% | |||||||
The 9.50% 2020 Notes [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% | 9.50% | |||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 17,500,000 | $ 17,500,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 101.75% | ||||||||||
The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||
The 7.0% 2019 Notes [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | 7.00% | 7.00% | |||||||
8.0% Senior Notes Due 2019 [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 14,000,000 | $ 14,000,000 | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||||||
8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||
The 6.00% Exchangeable Note Units [Member] | Exchangeable Note Units [Member] | |||||||||||
Exchangeable Note Unit Face Amount | $ 6,900,000 | $ 20,600,000 | |||||||||
Debt Instrument, Exchangeable, Number of Units Repurchased | shares | 6,925 | 20,823 | 6,925 | ||||||||
Debt Instrument, Repurchased Face Amount | $ 6,900,000 | $ 6,900,000 | |||||||||
Note Units Number | 100,000 | ||||||||||
Note Units Stated Amount | $ 1,000 | ||||||||||
Note Units Initial Principal Amount Exchangeable Note | $ / shares | $ 768.51 | ||||||||||
Note Units Principal Amount at Maturity | $ / shares | 1,000 | ||||||||||
Note Units Initial Principal Amount Senior Amortizing Note | $ / shares | $ 231.49 | ||||||||||
Debt Instrument, Face Amount | $ 100,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||
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 | ||||||||||
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% | 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 of Principal Amount Redeemed | 35.00% | ||||||||||
Debt Instrument, Redemption Price, Percentage | 110.00% | ||||||||||
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 | $ 89,900,000 | $ 89,900,000 | |||||||||
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 | 86,300,000 | 86,300,000 | |||||||||
The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Real Estate [Member] | |||||||||||
Debt Instrument, Collateral Amount | $ 146,500,000 | $ 146,500,000 | |||||||||
The 7.25% 2020 Notes [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.25% | 7.25% | 7.25% | |||||||
The 9.125% 2020 Notes [Member] | Senior Secured Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.125% | 9.125% | 9.125% | |||||||
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] | Term Loan Facility [Member] | |||||||||||
Debt Instrument, Collateral Amount | $ 190,400,000 | $ 190,400,000 | |||||||||
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] | Term Loan Facility [Member] | |||||||||||
Debt Instrument, Collateral Amount | 564,300,000 | 564,300,000 | |||||||||
The 7.25% 2020 Notes, The 9.125% 2020 Notes, and The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | Restricted Cash [Member] | Term Loan Facility [Member] | |||||||||||
Debt Instrument, Collateral Amount | $ 1,700,000 | $ 1,700,000 | |||||||||
The 11.0% 2017 Amortizing Note [Member] | Senior Amortizing Notes [Member] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 11.00% | 11.00% | 11.00% | |||||||
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 April 30, 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 $31.1 million and $32.4 million, respectively. | ||||||||||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at April 30, 2017 were $17.8 million. |
Note 11 - Senior Notes and Te52
Note 11 - Senior Notes and Term Loan - Senior Secured, Senior and Senior Subordinated Notes (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Oct. 31, 2016 | |
Senior Secured Term Loan [Member] | |||
Senior Notes | [1],[2] | $ 72,412 | $ 72,646 |
Senior Secured Notes [Member] | |||
Senior Notes | [1],[2] | 1,043,963 | 1,041,089 |
Senior Secured Notes [Member] | The 7.25% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 570,561 | 569,641 |
Senior Secured Notes [Member] | The 10.0% 2018 Notes [Member] | |||
Senior Notes | [1],[2] | 69,724 | 68,951 |
Senior Secured Notes [Member] | The 9.125% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 143,541 | 143,337 |
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | |||
Senior Notes | [1],[2] | 74,245 | 74,140 |
Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member] | |||
Senior Notes | [1],[2] | 53,040 | 53,022 |
Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member] | |||
Senior Notes | [1],[2] | 132,852 | 131,998 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||
Senior Notes | [1],[2] | 365,596 | 396,148 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | |||
Senior Notes | [1],[2] | 131,721 | 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] | 233,875 | 247,348 |
Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member] | |||
Senior Notes | [1],[2] | 3,938 | 6,152 |
Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member] | |||
Senior Notes | [1],[2] | $ 52,395 | $ 57,298 |
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of April 30, 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 $31.1 million and $32.4 million, respectively. | ||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at April 30, 2017 were $17.8 million. |
Note 11 - Senior Notes and Te53
Note 11 - Senior Notes and Term Loan - Senior Secured, Senior and Senior Subordinated Notes (Details) (Parentheticals) | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2017 | Oct. 31, 2016 | ||
Senior Secured Notes [Member] | The 7.25% 2020 Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.25% | 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 | [1],[2] | 9.125% | 9.125% |
Debt Instrument, Maturity Date | [1],[2] | Nov. 15, 2020 | Nov. 15, 2020 |
Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 9.50% | 9.50% |
Debt Instrument, Maturity Date | [1],[2] | Nov. 15, 2020 | Nov. 15, 2020 |
Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 2.00% | 2.00% |
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2021 | Nov. 1, 2021 |
Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 5.00% | 5.00% |
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2021 | Nov. 1, 2021 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | 7.00% |
Debt Instrument, Maturity Date | [1],[2] | Jan. 15, 2019 | Jan. 15, 2019 |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 8.00% | 8.00% |
Debt Instrument, Maturity Date | [1],[2] | Nov. 1, 2019 | Nov. 1, 2019 |
Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 11.00% | 11.00% |
Debt Instrument, Maturity Date | [1],[2] | Dec. 1, 2017 | Dec. 1, 2017 |
Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member] | |||
Debt Instrument, Maturity Date | [1],[2] | Dec. 1, 2017 | Dec. 1, 2017 |
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of April 30, 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 $31.1 million and $32.4 million, respectively. | ||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at April 30, 2017 were $17.8 million. |
Note 12 - Per Share Calculati54
Note 12 - Per Share Calculation (Details Textual) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Exchangeable Note Unit Rate Stated Percentage | 6.00% | 6.00% | ||
Non Vested Stock and Outstanding Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Convertible Debt Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,000 | 15,200 | 10,100 | 15,200 |
Out of the Money Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,700 | 6,400 | 4,700 | 6,400 |
Note 13 - Preferred Stock (Deta
Note 13 - Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jul. 12, 2005 | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Oct. 31, 2016 | [1] |
Preferred Stock, Shares Issued | 5,600 | 5,600 | 5,600 | ||||
Preferred Class A [Member] | |||||||
Preferred Stock, Shares Issued | 5,600 | ||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 25,000 | ||||||
Preferred Stock, Depositary Shares, Number of Shares of Preferred Stock in Each Depositary Share | 0.001 | ||||||
Payments of Dividends | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 14 - Common Stock (Details
Note 14 - Common Stock (Details Textual) | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2017shares | Apr. 30, 2017shares | Dec. 05, 2008 | Aug. 15, 2008 | Aug. 04, 2008 | Jul. 03, 2001shares | |
Common Stock Dividends Percent of Increase from Class A to Class B | 110.00% | 110.00% | ||||
Conversion of Stock From Class B to Class A Conversion Ratio | 1 | |||||
Shareholder Ownership Percentage of Increase | 50.00% | |||||
Minimum [Member] | ||||||
Shareholder Ownership Percentage | 5.00% | |||||
Common Class A [Member] | ||||||
Common Stock Voting Rights Votes per Share Number | 1 | |||||
Shareholder Ownership Percentage | 4.90% | |||||
Number of Rights | 1 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 500,000 | 500,000 | ||||
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 | 4,000,000 | |||||
Stock Repurchased During Period, Shares | 0 | 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 | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Income Tax Expense (Benefit) | $ (1,017) | $ (9,143) | $ (551) | $ (6,164) |
Deferred Tax Assets, Valuation Allowance | 628,000 | 628,000 | ||
Interest Reduction, Amount Per Year | 20,000 | |||
Required Minimum Taxable Income | 275,000 | 275,000 | ||
State and Local Jurisdiction [Member] | ||||
Income Tax Expense (Benefit) | 2,292 | $ (758) | 2,274 | $ 3,561 |
State and Local Jurisdiction [Member] | Between 2017 and 2036 [Member] | ||||
Operating Loss Carryforwards | 2,200,000 | 2,200,000 | ||
State and Local Jurisdiction [Member] | Between 2017 and 2021 [Member] | ||||
Operating Loss Carryforwards | 301,700 | 301,700 | ||
State and Local Jurisdiction [Member] | Between 2022 and 2026 [Member] | ||||
Operating Loss Carryforwards | 253,900 | 253,900 | ||
State and Local Jurisdiction [Member] | Between 2027 and 2031 [Member] | ||||
Operating Loss Carryforwards | 1,327,300 | 1,327,300 | ||
State and Local Jurisdiction [Member] | Between 2032 and 2036 [Member] | ||||
Operating Loss Carryforwards | $ 348,000 | $ 348,000 |
Note 16 - Operating and Repor58
Note 16 - Operating and Reporting Segments (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Oct. 31, 2016USD ($) | |||
Other Nonoperating Income (Expense) | $ 95 | $ (1,147) | $ (1,492) | $ (2,531) | |||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | 22,297 | 24,084 | 44,924 | 45,309 | ||
Gain (Loss) on Extinguishment of Debt | (242) | 7,404 | |||||
Deferred Tax Assets, Net of Valuation Allowance | 284,452 | 284,452 | $ 283,633 | [3] | |||
Qualifying Assets Not Exceeding Debt [Member] | |||||||
Real Estate Inventory Expense Not Eligible for Capitalization | 16,000 | $ 12,200 | 29,300 | $ 26,700 | |||
Corporate, Non-Segment [Member] | |||||||
Other Nonoperating Income (Expense) | 100 | 800 | |||||
General and Administrative Expense | 16,100 | 31,700 | |||||
Gain (Loss) on Extinguishment of Debt | (200) | (7,400) | |||||
Deferred Tax Assets, Net of Valuation Allowance | 284,500 | 284,500 | $ 283,600 | ||||
Corporate, Non-Segment [Member] | Qualifying Assets Not Exceeding Debt [Member] | |||||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 16,000 | $ 29,300 | |||||
Homebuilding [Member] | |||||||
Number of Reportable Segments | 6 | ||||||
[1] | Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: | ||||||
[2] | Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $16.0 million and $12.2 million for the three months ended April 30, 2017 and 2016, respectively, and $29.3 million and $26.7 million for the six months ended April 30, 2017 and 2016, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $6.3 million and $11.9 million for the three months ended April 30, 2017 and 2016, respectively, and $15.6 million and $18.6 million for the six months ended April 30, 2017 and 2016, respectively. | ||||||
[3] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 16 - Operating and Repor59
Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | ||
Total revenues | $ 585,935 | $ 654,723 | $ 1,137,944 | $ 1,230,328 | |
(Loss) income before income taxes | (7,699) | (17,604) | (7,376) | (30,798) | |
Corporate, Non-Segment [Member] | |||||
Total revenues | 139 | (72) | 272 | (92) | |
(Loss) income before income taxes | [1] | (32,389) | (26,272) | (54,435) | (57,841) |
Homebuilding [Member] | Operating Segments [Member] | |||||
Total revenues | 571,302 | 637,792 | 1,110,329 | 1,195,191 | |
(Loss) income before income taxes | 17,556 | 1,283 | 33,931 | 9,647 | |
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | |||||
Total revenues | 45,950 | 54,046 | 104,525 | 126,550 | |
(Loss) income before income taxes | (2,722) | (6,684) | (1,816) | (3,950) | |
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | |||||
Total revenues | 100,600 | 89,987 | 200,826 | 183,807 | |
(Loss) income before income taxes | 918 | 1,072 | 4,800 | 3,694 | |
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | |||||
Total revenues | 42,019 | 84,631 | 85,721 | 176,551 | |
(Loss) income before income taxes | (3,170) | (23) | (2,458) | (5,582) | |
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | |||||
Total revenues | 56,635 | 51,298 | 113,219 | 90,550 | |
(Loss) income before income taxes | 428 | (7,255) | 134 | (9,089) | |
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | |||||
Total revenues | 225,255 | 276,735 | 408,664 | 481,060 | |
(Loss) income before income taxes | 19,785 | 18,491 | 31,708 | 34,860 | |
Homebuilding [Member] | West [Member] | Operating Segments [Member] | |||||
Total revenues | 100,843 | 81,095 | 197,374 | 136,673 | |
(Loss) income before income taxes | 2,317 | (4,318) | 1,563 | (10,286) | |
Financial Services [Member] | Operating Segments [Member] | |||||
Total revenues | 14,494 | 17,003 | 27,343 | 35,229 | |
(Loss) income before income taxes | $ 7,134 | $ 7,385 | $ 13,128 | $ 17,396 | |
[1] | Corporate and unallocated for the three months ended April 30, 2017 included corporate general and administrative costs of $16.1 million, interest expense of $16.0 million (a component of Other interest on our Condensed Consolidated Statements of Operations), loss on extinguishment of debt of $0.2 million and $0.1 million of other income and expenses primarily related to stock compensation and rental income. Corporate and unallocated for the six months ended April 30, 2017 included corporate general and administrative costs of $31.7 million, interest expense of $29.3 million (a component of Other interest on our Condensed Consolidated Statements of Operations), gain on extinguishment of debt of $7.4 million and $0.8 million of other income and expenses primarily related to bond amortization, stock compensation and rental income. |
Note 16 - Operating and Repor60
Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Oct. 31, 2016 | ||
Assets | $ 2,133,596 | $ 2,354,956 | [1] | |
Corporate, Non-Segment [Member] | ||||
Assets | [2] | 641,674 | 696,872 | |
Homebuilding [Member] | ||||
Assets | 1,729,606 | 1,874,093 | [1] | |
Homebuilding [Member] | Operating Segments [Member] | ||||
Assets | 1,372,384 | 1,460,854 | ||
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | ||||
Assets | 196,796 | 219,363 | ||
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | ||||
Assets | 290,279 | 292,899 | ||
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | ||||
Assets | 103,805 | 111,596 | ||
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | ||||
Assets | 236,085 | 226,124 | ||
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | ||||
Assets | 337,646 | 341,472 | ||
Homebuilding [Member] | West [Member] | Operating Segments [Member] | ||||
Assets | 207,773 | 269,400 | ||
Financial Services [Member] | ||||
Assets | 119,538 | 197,230 | ||
Financial Services [Member] | Operating Segments [Member] | ||||
Assets | $ 119,538 | $ 197,230 | ||
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). | |||
[2] | Includes $284.5 million and $283.6 million of income taxes receivable, including deferred tax assets, as of April 30, 2017 and October 31, 2016, respectively. |
Note 17 - Investments in Unco61
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Nov. 30, 2015USD ($) | Apr. 30, 2017USD ($) | Jan. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Oct. 31, 2016USD ($) | |
Number of Owned Communities Transferred to the Joint Venture | 1 | 8 | ||||||
Number of Optioned Communities Transferred to the Joint Venture | 3 | 1 | ||||||
Proceeds from Transfer of Land to Joint Venture | $ 11,200 | $ 29,800 | ||||||
Joint Venture Financing Percent of Assets | 50.00% | 50.00% | ||||||
Joint Venture Total Debt to Capitalization Ratio | 48.00% | 48.00% | ||||||
Corporate Joint Venture [Member] | ||||||||
Advances to Affiliate | $ 13,600 | $ 13,600 | $ 8,900 | |||||
Land Development Venture [Member] | ||||||||
Proceeds from Transfer of Land to Joint Venture | $ 25,700 | |||||||
Homebuilding [Member] | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 106,704 | 106,704 | $ 100,502 | |||||
Management Fees Revenue | $ 3,000 | $ 1,100 | $ 5,100 | $ 1,900 | ||||
Homebuilding [Member] | Corporate Joint Venture [Member] | ||||||||
Joint Venture Total Debt to Capitalization Ratio | 48.00% | 48.00% | 41.00% |
Note 17 - Investments in Unco62
Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Oct. 31, 2016 | |
Our share of net (loss) income | $ (4,562) | $ (1,346) | $ (6,228) | $ (2,826) | |
Debt to capitalization ratio | 48.00% | 48.00% | |||
Homebuilding [Member] | Corporate Joint Venture [Member] | |||||
Cost of sales and expenses | $ (89,798) | (31,576) | $ (158,006) | (56,978) | |
Joint venture net (loss) income | (1,584) | (5,295) | (3,653) | (9,335) | |
Our share of net (loss) income | (4,675) | (1,140) | (6,246) | (2,700) | |
Cash and cash equivalents | 45,089 | 45,089 | $ 50,020 | ||
Inventories | 635,657 | 635,657 | 527,957 | ||
Other assets | 28,847 | 28,847 | 25,865 | ||
Total assets | 709,593 | 709,593 | 603,842 | ||
Accounts payable and accrued liabilities | 98,360 | 98,360 | 74,114 | ||
Notes payable | 291,281 | 291,281 | 217,172 | ||
Total liabilities | 389,641 | 389,641 | 291,286 | ||
Hovnanian Enterprises, Inc. | 93,142 | 93,142 | 91,599 | ||
Others | 226,810 | 226,810 | 220,957 | ||
Total equity | 319,952 | 319,952 | 312,556 | ||
Total liabilities and equity | $ 709,593 | $ 709,593 | $ 603,842 | ||
Debt to capitalization ratio | 48.00% | 48.00% | 41.00% | ||
Revenues | $ 88,214 | 26,281 | $ 154,353 | 47,643 | |
Homebuilding Venture [Member] | Homebuilding [Member] | Corporate Joint Venture [Member] | |||||
Cost of sales and expenses | (87,957) | (31,480) | (155,183) | (55,659) | |
Joint venture net (loss) income | (1,401) | (5,720) | (3,690) | (9,633) | |
Our share of net (loss) income | (4,583) | (1,353) | (6,264) | (2,849) | |
Cash and cash equivalents | 44,927 | 44,927 | $ 48,542 | ||
Inventories | 625,716 | 625,716 | 516,947 | ||
Other assets | 28,847 | 28,847 | 25,865 | ||
Total assets | 699,490 | 699,490 | 591,354 | ||
Accounts payable and accrued liabilities | 97,887 | 97,887 | 72,302 | ||
Notes payable | 289,791 | 289,791 | 214,911 | ||
Total liabilities | 387,678 | 387,678 | 287,213 | ||
Hovnanian Enterprises, Inc. | 89,904 | 89,904 | 88,379 | ||
Others | 221,908 | 221,908 | 215,762 | ||
Total equity | 311,812 | 311,812 | 304,141 | ||
Total liabilities and equity | $ 699,490 | $ 699,490 | $ 591,354 | ||
Debt to capitalization ratio | 48.00% | 48.00% | 41.00% | ||
Revenues | $ 86,556 | 25,760 | $ 151,493 | 46,026 | |
Land Development Venture [Member] | Homebuilding [Member] | Corporate Joint Venture [Member] | |||||
Cost of sales and expenses | (1,841) | (96) | (2,823) | (1,319) | |
Joint venture net (loss) income | (183) | 425 | 37 | 298 | |
Our share of net (loss) income | (92) | 213 | 18 | 149 | |
Cash and cash equivalents | 162 | 162 | $ 1,478 | ||
Inventories | 9,941 | 9,941 | 11,010 | ||
Other assets | |||||
Total assets | 10,103 | 10,103 | 12,488 | ||
Accounts payable and accrued liabilities | 473 | 473 | 1,812 | ||
Notes payable | 1,490 | 1,490 | 2,261 | ||
Total liabilities | 1,963 | 1,963 | 4,073 | ||
Hovnanian Enterprises, Inc. | 3,238 | 3,238 | 3,220 | ||
Others | 4,902 | 4,902 | 5,195 | ||
Total equity | 8,140 | 8,140 | 8,415 | ||
Total liabilities and equity | $ 10,103 | $ 10,103 | $ 12,488 | ||
Debt to capitalization ratio | 15.00% | 15.00% | 21.00% | ||
Revenues | $ 1,658 | $ 521 | $ 2,860 | $ 1,617 |
Note 19 - Fair Value of Finan63
Note 19 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Oct. 31, 2016 | |
Loans Held for Sale Mortgages Unpaid Principal | $ 82,600 | $ 82,600 | $ 149,400 | ||
Other Commitment | 32,000 | 32,000 | |||
Impairment of Real Estate | 1,500 | $ 5,400 | 4,200 | $ 15,100 | |
Fair Value, Inputs, Level 2 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||
Notes Payable, Fair Value Disclosure | 314,300 | 314,300 | 251,700 | ||
Fair Value, Inputs, Level 3 [Member] | Senior Secured Notes [Member] | |||||
Notes Payable, Fair Value Disclosure | 963,400 | 963,400 | 883,000 | ||
Fair Value, Inputs, Level 3 [Member] | Senior Amortizing Notes [Member] | |||||
Notes Payable, Fair Value Disclosure | 4,000 | 4,000 | 6,300 | ||
Fair Value, Inputs, Level 3 [Member] | Senior Exchangeable Notes [Member] | |||||
Notes Payable, Fair Value Disclosure | 52,600 | 52,600 | $ 55,200 | ||
Loan Origination Commitments [Member] | |||||
Loan Applications in Process | 541,300 | $ 541,300 | |||
Loan Origination Commitments [Member] | Maximum [Member] | |||||
Number of Days in Committment | 60 days | ||||
Interest Rate Committed Loan Applications [Member] | |||||
Interest Rate Committed Loan Applications | $ 59,500 | $ 59,500 |
Note 19 - Fair Value of Finan64
Note 19 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Oct. 31, 2016 | |
Total | $ 88,101 | $ 165,083 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Mortgage loans held for sale | [1] | 88,307 | 165,077 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | |||
Derivative Fair Value | 100 | (80) | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | |||
Derivative Fair Value | $ (306) | $ 86 | |
[1] | The aggregate unpaid principal balance was $82.6 million and $149.4 million at April 30, 2017 and October 31, 2016, respectively. |
Note 19 - Fair Value of Finan65
Note 19 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Loans Held for Sale [Member] | ||||
Changes in fair value included in net loss all reflected in financial services revenues | $ 645 | $ (1,178) | $ (2,379) | $ 3,829 |
Interest Rate Lock Commitments [Member] | ||||
Changes in fair value included in net loss all reflected in financial services revenues | 109 | (377) | 179 | 30 |
Forward Contracts [Member] | ||||
Changes in fair value included in net loss all reflected in financial services revenues | $ (422) | $ 593 | $ (391) | $ (550) |
Note 19 - Fair Value of Finan66
Note 19 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
PreImpairment Value | $ 8,500 | $ 16,700 | $ 21,100 | $ 45,400 |
Total Losses | (1,500) | (5,400) | (4,200) | (15,100) |
Sold and Unsold Homes and Lots Under Development [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value of Inventory | 6,925 | 10,980 | 10,640 | 29,839 |
PreImpairment Value | 8,474 | 15,710 | 14,776 | 44,238 |
Total Losses | (1,549) | (4,730) | (4,136) | (14,399) |
Land and Land Options Held for Future Development or Sale [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value of Inventory | 366 | 6,245 | 475 | |
PreImpairment Value | 1,012 | 6,326 | 1,169 | |
Total Losses | $ (646) | $ (81) | $ (694) |
Note 20 - Financial Informati67
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
Apr. 30, 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 | $ 1,044 | ||
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 | 365.6 | ||
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 | 52.6 | ||
Senior Notes | $ 52.4 | ||
[1] | "Notes payable and term loan" on our Condensed Consolidated Balance Sheets as of April 30, 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 $31.1 million and $32.4 million, respectively. | ||
[2] | As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at April 30, 2017 were $17.8 million. |
Note 20 - Financial Informati68
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Oct. 31, 2016 | |
Liabilities | $ 2,267,499 | $ 2,483,466 | [1] |
Notes payable and term loan and Revolving credit facility | 1,621,375 | 1,657,758 | |
Stockholders’ (deficit) equity | (133,903) | (128,510) | [1] |
Total liabilities and equity | 2,133,596 | 2,354,956 | [1] |
Assets | 2,133,596 | 2,354,956 | [1] |
Income taxes receivable | 284,452 | 283,633 | |
Homebuilding [Member] | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 549,047 | 653,263 | |
Liabilities | 2,170,422 | 2,311,021 | [1] |
Assets | 1,729,606 | 1,874,093 | [1] |
Financial Services [Member] | |||
Liabilities | 97,077 | 172,445 | [1] |
Assets | 119,538 | 197,230 | |
Consolidation, Eliminations [Member] | |||
Notes payable and term loan and Revolving credit facility | |||
Intercompany payable | (1,263,262) | (1,315,446) | |
Amounts due to consolidated subsidiaries | (134,565) | (82,951) | |
Stockholders’ (deficit) equity | (237,509) | (359,591) | |
Total liabilities and equity | (1,635,336) | (1,757,988) | |
Investments in and amounts due from consolidated subsidiaries | (372,077) | (442,542) | |
Assets | (1,635,336) | (1,757,988) | |
Intercompany receivable | (1,263,259) | (1,315,446) | |
Consolidation, Eliminations [Member] | Homebuilding [Member] | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | |||
Assets | |||
Parent Company [Member] | Reportable Legal Entities [Member] | |||
Notes payable and term loan and Revolving credit facility | |||
Intercompany payable | 155,137 | 157,993 | |
Amounts due to consolidated subsidiaries | 110,590 | 82,951 | |
Stockholders’ (deficit) equity | (133,903) | (128,510) | |
Total liabilities and equity | 134,291 | 115,940 | |
Assets | 134,291 | 115,940 | |
Income taxes receivable | 134,291 | 115,940 | |
Parent Company [Member] | Reportable Legal Entities [Member] | Homebuilding [Member] | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 2,467 | 3,506 | |
Assets | |||
Subsidiary Issuer [Member] | Reportable Legal Entities [Member] | |||
Notes payable and term loan and Revolving credit facility | 1,617,889 | 1,652,357 | |
Amounts due to consolidated subsidiaries | 23,975 | ||
Stockholders’ (deficit) equity | (234,675) | (208,608) | |
Total liabilities and equity | 1,407,318 | 1,444,867 | |
Investments in and amounts due from consolidated subsidiaries | 4,914 | ||
Assets | 1,407,318 | 1,444,867 | |
Income taxes receivable | (43,308) | (58,597) | |
Intercompany receivable | 1,249,183 | 1,227,334 | |
Subsidiary Issuer [Member] | Reportable Legal Entities [Member] | Homebuilding [Member] | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 129 | 1,118 | |
Assets | 201,443 | 271,216 | |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Notes payable and term loan and Revolving credit facility | 3,001 | 5,084 | |
Intercompany payable | 1,108,125 | 1,157,453 | |
Stockholders’ (deficit) equity | 100,107 | 130,568 | |
Total liabilities and equity | 1,719,547 | 1,871,606 | |
Investments in and amounts due from consolidated subsidiaries | 372,077 | 437,628 | |
Assets | 1,719,547 | 1,871,606 | |
Income taxes receivable | 193,437 | 226,258 | |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Homebuilding [Member] | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 488,589 | 565,163 | |
Assets | 1,133,656 | 1,194,267 | |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Financial Services [Member] | |||
Liabilities | 19,725 | 13,338 | |
Assets | 20,377 | 13,453 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Notes payable and term loan and Revolving credit facility | 485 | 317 | |
Stockholders’ (deficit) equity | 372,077 | 437,631 | |
Total liabilities and equity | 507,776 | 680,531 | |
Assets | 507,776 | 680,531 | |
Income taxes receivable | 32 | 32 | |
Intercompany receivable | 14,076 | 88,112 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Homebuilding [Member] | |||
Homebuilding, excluding Notes payable and term loan and Revolving credit facility | 57,862 | 83,476 | |
Assets | 394,507 | 408,610 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Financial Services [Member] | |||
Liabilities | 77,352 | 159,107 | |
Assets | $ 99,161 | $ 183,777 | |
[1] | Derived from the audited balance sheet as of October 31, 2016. See notes to condensed consolidated financial statements (unaudited). |
Note 20 - Financial Informati69
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Total expenses | $ 588,830 | $ 670,981 | $ 1,146,496 | $ 1,258,300 |
Gain (Loss) on Extinguishment of Debt | (242) | 7,404 | ||
Income (loss) from unconsolidated joint ventures | (4,562) | (1,346) | (6,228) | (2,826) |
(Loss) income before income taxes | (7,699) | (17,604) | (7,376) | (30,798) |
Income Tax Expense (Benefit) | (1,017) | (9,143) | (551) | (6,164) |
Net (loss) income | (6,682) | (8,461) | (6,825) | (24,634) |
Total revenues | 585,935 | 654,723 | 1,137,944 | 1,230,328 |
Homebuilding [Member] | ||||
Total expenses | 581,470 | 661,363 | 1,132,281 | 1,240,467 |
Homebuilding revenue | 571,441 | 637,720 | 1,110,601 | 1,195,099 |
Financial Services [Member] | ||||
Total expenses | 7,360 | 9,618 | 14,215 | 17,833 |
Financial services revenue | 14,494 | 17,003 | 27,343 | 35,229 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Total expenses | 497,726 | 553,214 | 966,972 | 1,055,921 |
Income (loss) from unconsolidated joint ventures | 20 | 7 | 36 | 23 |
(Loss) income before income taxes | (11,015) | (27,113) | (22,375) | (52,649) |
Income Tax Expense (Benefit) | 13,609 | 4,152 | 37,551 | 28,599 |
Equity in (loss) income of consolidated subsidiaries | 14,798 | 15,995 | 29,465 | 31,548 |
Net (loss) income | (9,826) | (15,270) | (30,461) | (49,700) |
Intercompany charges | 23,218 | 25,838 | 46,158 | 60,301 |
Total revenues | 486,691 | 526,094 | 944,561 | 1,003,249 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||||
Total expenses | 472,748 | 525,553 | 917,341 | 992,173 |
Homebuilding revenue | 483,942 | 523,418 | 939,314 | 998,328 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | Financial Services [Member] | ||||
Total expenses | 1,760 | 1,823 | 3,473 | 3,447 |
Financial services revenue | 2,749 | 2,676 | 5,247 | 4,921 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Total expenses | 79,864 | 111,281 | 157,654 | 192,682 |
Income (loss) from unconsolidated joint ventures | (4,582) | (1,353) | (6,264) | (2,849) |
(Loss) income before income taxes | 14,798 | 15,995 | 29,465 | 31,548 |
Net (loss) income | 14,798 | 15,995 | 29,465 | 31,548 |
Intercompany charges | 729 | 806 | ||
Total revenues | 99,244 | 128,629 | 193,383 | 227,079 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Homebuilding [Member] | ||||
Total expenses | 74,264 | 102,757 | 146,912 | 177,490 |
Homebuilding revenue | 87,499 | 114,302 | 171,287 | 196,771 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Financial Services [Member] | ||||
Total expenses | 5,600 | 7,795 | 10,742 | 14,386 |
Financial services revenue | 11,745 | 14,327 | 22,096 | 30,308 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | ||||
Total expenses | 32,987 | 33,396 | 66,029 | 69,207 |
Gain (Loss) on Extinguishment of Debt | (242) | 7,404 | ||
(Loss) income before income taxes | (10,011) | (6,829) | (12,467) | (8,100) |
Income Tax Expense (Benefit) | (8,354) | (8,410) | (15,289) | (15,328) |
Equity in (loss) income of consolidated subsidiaries | (14,886) | (13,562) | (28,889) | (27,072) |
Net (loss) income | (16,543) | (11,981) | (26,067) | (19,844) |
Intercompany charges | 23,218 | 26,567 | 46,158 | 61,107 |
Total revenues | 23,218 | 26,567 | 46,158 | 61,107 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | Homebuilding [Member] | ||||
Total expenses | 32,987 | 33,396 | 66,029 | 69,207 |
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
Total expenses | 1,471 | (343) | 1,999 | 1,597 |
(Loss) income before income taxes | (1,471) | 343 | (1,999) | (1,597) |
Income Tax Expense (Benefit) | (6,272) | (4,885) | (22,813) | (19,435) |
Equity in (loss) income of consolidated subsidiaries | (11,483) | (13,689) | (27,639) | (42,472) |
Net (loss) income | (6,682) | (8,461) | (6,825) | (24,634) |
Reportable Legal Entities [Member] | Parent Company [Member] | Homebuilding [Member] | ||||
Total expenses | 1,471 | (343) | 1,999 | 1,597 |
Consolidation, Eliminations [Member] | ||||
Total expenses | (23,218) | (26,567) | (46,158) | (61,107) |
Equity in (loss) income of consolidated subsidiaries | 11,571 | 11,256 | 27,063 | 37,996 |
Net (loss) income | 11,571 | 11,256 | 27,063 | 37,996 |
Intercompany charges | (23,218) | (26,567) | (46,158) | (61,107) |
Total revenues | $ (23,218) | $ (26,567) | $ (46,158) | $ (61,107) |
Note 20 - Financial Informati70
Note 20 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors - Consolidating Condensed Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Investments in and advances to unconsolidated joint ventures | $ (23,368) | $ (16,743) | ||
Distributions of capital from unconsolidated joint ventures | 10,735 | 5,065 | ||
Net cash provided by (used in) investing activities | (19,761) | (13,093) | ||
Net payments related to mortgages and notes | (16,240) | (19,139) | ||
Net proceeds from model sale leaseback financing programs | (1,818) | 1,219 | ||
Net proceeds from land bank financing programs | (32,974) | 114,473 | ||
Payments related to senior notes and senior amortizing notes | (33,327) | (175,040) | ||
Borrowings from revolving credit facility | 3,000 | |||
Net proceeds related to mortgage warehouse lines of credit | (75,471) | 257 | ||
Deferred financing costs from land bank financing programs and note issuances | (3,605) | (4,581) | ||
Intercompany financing activities | ||||
Net cash provided by (used in) financing activities | (163,435) | (79,811) | ||
Net (decrease) increase in cash | (65,978) | (124,091) | ||
Cash and cash equivalents balance, beginning of period | 346,765 | 253,745 | ||
Net (loss) income | $ (6,682) | $ (8,461) | (6,825) | (24,634) |
Adjustments to reconcile net (loss) income to net cash used in operating activities | 124,043 | (6,553) | ||
Net cash (used in) provided by operating activities | 117,218 | (31,187) | ||
Proceeds from sale of property and assets | 86 | 115 | ||
Purchase of property, equipment & other fixed assets and acquisitions | (4,500) | (1,651) | ||
Cash and cash equivalents balance, end of period | 280,787 | 129,654 | 280,787 | 129,654 |
Related to Mortgage Company [Member] | ||||
(Increase) decrease in restricted cash | (2,715) | (204) | ||
Related to Letters of Credit [Member] | ||||
(Increase) decrease in restricted cash | 1 | 325 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
Intercompany financing activities | 24,783 | 36,668 | ||
Net cash provided by (used in) financing activities | 24,783 | 36,668 | ||
Net (loss) income | (6,682) | (8,461) | (6,825) | (24,634) |
Adjustments to reconcile net (loss) income to net cash used in operating activities | (17,958) | (12,034) | ||
Net cash (used in) provided by operating activities | (24,783) | (36,668) | ||
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | ||||
Investments in and advances to unconsolidated joint ventures | (240) | (130) | ||
Distributions of capital from unconsolidated joint ventures | (186) | |||
Intercompany investing activities | 7,043 | 80,160 | ||
Net cash provided by (used in) investing activities | 6,804 | 80,169 | ||
Payments related to senior notes and senior amortizing notes | (33,327) | (175,040) | ||
Borrowings from revolving credit facility | 3,000 | |||
Deferred financing costs from land bank financing programs and note issuances | (2,459) | |||
Net cash provided by (used in) financing activities | (35,786) | (172,040) | ||
Net (decrease) increase in cash | (69,780) | (89,637) | ||
Cash and cash equivalents balance, beginning of period | 261,553 | 199,318 | ||
Net (loss) income | (16,543) | (11,981) | (26,067) | (19,844) |
Adjustments to reconcile net (loss) income to net cash used in operating activities | (14,731) | 22,078 | ||
Net cash (used in) provided by operating activities | (40,798) | 2,234 | ||
Cash and cash equivalents balance, end of period | 191,773 | 109,681 | 191,773 | 109,681 |
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | Related to Letters of Credit [Member] | ||||
(Increase) decrease in restricted cash | 1 | 325 | ||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Investments in and advances to unconsolidated joint ventures | (990) | |||
Distributions of capital from unconsolidated joint ventures | 27 | 1,087 | ||
Net cash provided by (used in) investing activities | (4,387) | (1,429) | ||
Net payments related to mortgages and notes | (3,116) | (13,649) | ||
Net proceeds from model sale leaseback financing programs | 698 | 3,179 | ||
Net proceeds from land bank financing programs | (27,176) | 90,425 | ||
Deferred financing costs from land bank financing programs and note issuances | (973) | (3,380) | ||
Intercompany financing activities | (105,862) | (146,900) | ||
Net cash provided by (used in) financing activities | (136,429) | (70,325) | ||
Net (decrease) increase in cash | (2,694) | (743) | ||
Cash and cash equivalents balance, beginning of period | (395) | (4,800) | ||
Net (loss) income | (9,826) | (15,270) | (30,461) | (49,700) |
Adjustments to reconcile net (loss) income to net cash used in operating activities | 168,583 | 120,711 | ||
Net cash (used in) provided by operating activities | 138,122 | 71,011 | ||
Proceeds from sale of property and assets | 86 | 94 | ||
Purchase of property, equipment & other fixed assets and acquisitions | (4,500) | (1,620) | ||
Cash and cash equivalents balance, end of period | (3,089) | (5,543) | (3,089) | (5,543) |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Investments in and advances to unconsolidated joint ventures | (23,128) | (15,623) | ||
Distributions of capital from unconsolidated joint ventures | 10,708 | 4,164 | ||
Net cash provided by (used in) investing activities | (15,135) | (11,673) | ||
Net payments related to mortgages and notes | (13,124) | (5,490) | ||
Net proceeds from model sale leaseback financing programs | (2,516) | (1,960) | ||
Net proceeds from land bank financing programs | (5,798) | 24,048 | ||
Net proceeds related to mortgage warehouse lines of credit | (75,471) | 257 | ||
Deferred financing costs from land bank financing programs and note issuances | (173) | (1,201) | ||
Intercompany financing activities | 74,036 | 30,072 | ||
Net cash provided by (used in) financing activities | (23,046) | 45,726 | ||
Net (decrease) increase in cash | 6,496 | (33,711) | ||
Cash and cash equivalents balance, beginning of period | 85,607 | 59,227 | ||
Net (loss) income | 14,798 | 15,995 | 29,465 | 31,548 |
Adjustments to reconcile net (loss) income to net cash used in operating activities | 15,212 | (99,312) | ||
Net cash (used in) provided by operating activities | 44,677 | (67,764) | ||
Proceeds from sale of property and assets | 21 | |||
Purchase of property, equipment & other fixed assets and acquisitions | (31) | |||
Cash and cash equivalents balance, end of period | 92,103 | 25,516 | 92,103 | 25,516 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | Related to Mortgage Company [Member] | ||||
(Increase) decrease in restricted cash | (2,715) | (204) | ||
Consolidation, Eliminations [Member] | ||||
Intercompany investing activities | (7,043) | (80,160) | ||
Net cash provided by (used in) investing activities | (7,043) | (80,160) | ||
Intercompany financing activities | 7,043 | 80,160 | ||
Net cash provided by (used in) financing activities | 7,043 | 80,160 | ||
Net (loss) income | $ 11,571 | $ 11,256 | 27,063 | 37,996 |
Adjustments to reconcile net (loss) income to net cash used in operating activities | $ (27,063) | $ (37,996) |
Note 21 - Transactions With R71
Note 21 - Transactions With Related Parties (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Tavit Najarian [Member] | ||||
Related Party Transaction, Amounts of Transaction | $ 0.2 | $ 0.4 | $ 0.4 | $ 0.7 |