Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jan. 31, 2020 | Mar. 02, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | HOVNANIAN ENTERPRISES INC | |
Entity Central Index Key | 0000357294 | |
Trading Symbol | hov | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Class A Common Stock $0.01 par value per share | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 5,506,301 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 624,486 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Assets | $ 1,790,003 | $ 1,881,424 |
Senior notes and credit facilities (net of discount, premium and debt issuance costs) | 1,460,200 | 1,479,990 |
Liabilities | 2,289,082 | 2,371,200 |
Income taxes payable | 4,015 | 2,301 |
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at January 31, 2020 and October 31, 2019 | 135,299 | 135,299 |
Paid in capital – common stock | 715,336 | 715,504 |
Accumulated deficit | (1,235,121) | (1,225,973) |
Treasury stock – at cost – 470,430 shares of Class A common stock and 27,669 shares of Class B common stock at January 31, 2020 and October 31, 2019 | (115,360) | (115,360) |
Total Hovnanian Enterprises, Inc. stockholders' equity deficit | (499,779) | (490,463) |
Noncontrolling interest in consolidated joint ventures | 700 | 687 |
Total equity deficit | (499,079) | (489,776) |
Total liabilities and equity | 1,790,003 | 1,881,424 |
Common Class A [Member] | ||
Common stock | 60 | 60 |
Common Class B [Member] | ||
Common stock | 7 | 7 |
Homebuilding [Member] | ||
Cash and cash equivalents | 81,396 | 130,976 |
Restricted cash and cash equivalents | 19,878 | 20,905 |
Sold and unsold homes and lots under development | 1,009,098 | 993,647 |
Land and land options held for future development or sale | 81,402 | 108,565 |
Consolidated inventory not owned | 205,215 | 190,273 |
Total inventories | 1,295,715 | 1,292,485 |
Investments in and advances to unconsolidated joint ventures | 135,331 | 127,038 |
Receivables, deposits and notes, net | 49,188 | 44,914 |
Property, plant and equipment, net | 19,654 | 20,127 |
Prepaid expenses and other assets | 71,284 | 45,704 |
Assets | 1,672,446 | 1,682,149 |
Accounts payable and other liabilities | 306,559 | 320,193 |
Customers’ deposits | 33,312 | 35,872 |
Liabilities from inventory not owned, net of debt issuance costs | 152,235 | 141,033 |
Senior notes and credit facilities (net of discount, premium and debt issuance costs) | 1,460,200 | 1,479,990 |
Accrued interest | 30,899 | 19,081 |
Liabilities | 2,189,010 | 2,199,754 |
Homebuilding [Member] | Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | ||
Nonrecourse mortgages, net of debt issuance costs | 205,805 | 203,585 |
Financial Services [Member] | ||
Cash and cash equivalents | 4,181 | |
Restricted cash and cash equivalents | 22,493 | 24,800 |
Assets | 117,557 | 199,275 |
Liabilities | $ 96,057 | $ 169,145 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Millions | Jan. 31, 2020 | Oct. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, shares issued (in shares) | 5,600 | 5,600 |
Preferred stock, shares outstanding (in shares) | 5,600 | 5,600 |
Preferred stock, liquidation preference | $ 140 | $ 140 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 16,000,000 | 16,000,000 |
Common stock, shares issued (in shares) | 5,976,731 | 5,973,727 |
Common stock, shares held in Treasury (in shares) | 470,430 | 470,430 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,400,000 | 2,400,000 |
Common stock, shares issued (in shares) | 652,155 | 650,363 |
Common stock, shares held in Treasury (in shares) | 27,669 | 27,669 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | ||
Revenues | $ 494,056 | $ 380,594 | |
Inventory impairment loss and land option write-offs | 2,828 | 704 | |
Total expenses | 512,488 | 407,262 | |
Corporate general and administrative | 19,744 | 17,664 | |
Other interest expensed | [1],[2] | 25,003 | 22,273 |
Other operations | 194 | 242 | |
Gain on extinguishment of debt | 9,456 | ||
Income from unconsolidated joint ventures | 1,540 | 9,562 | |
(Loss) before income taxes | (7,436) | (17,106) | |
Tax provision (benefit) | 1,712 | 346 | |
Net (loss) | $ (9,148) | $ (17,452) | |
Net (loss) per common share (in dollars per share) | $ (1.49) | $ (2.93) | |
Weighted-average number of common shares outstanding (in shares) | 6,161 | 5,958 | |
State and Local Jurisdiction [Member] | |||
Tax provision (benefit) | $ 1,712 | $ 346 | |
Domestic Tax Authority [Member] | |||
Tax provision (benefit) | |||
Homebuilding [Member] | |||
Revenues | 480,042 | 370,986 | |
Cost of sales, excluding interest | 396,355 | 304,927 | |
Cost of sales interest | 18,136 | 10,242 | |
Inventory impairment loss and land option write-offs | 2,828 | 704 | |
Total cost of sales | 417,319 | 315,873 | |
Selling, general and administrative | 40,674 | 42,736 | |
Total expenses | 457,993 | 358,609 | |
Homebuilding [Member] | Home Building [Member] | |||
Revenues | 479,233 | 362,135 | |
Homebuilding [Member] | Land Sales and Other Revenues [Member] | |||
Revenues | 809 | 8,851 | |
Financial Services [Member] | |||
Revenues | 14,014 | 9,608 | |
Total expenses | $ 9,554 | $ 8,474 | |
[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: Three Months Ended January 31, (In thousands) 2020 2019 Other interest expensed $25,003 $22,273 Interest paid by our mortgage and finance subsidiaries 770 689 (Increase) decrease in accrued interest (11,818 ) 17,477 Cash paid for interest, net of capitalized interest $13,955 $40,439 | ||
[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 $14.9 million and $17.6 million for the three months ended January 31, 2020 and 2019, 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 $10.1 million and $4.7 million for the three months ended January 31, 2020 and 2019, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Equity Deficit (Unaudited) - USD ($) $ in Thousands | Common Stock Outstanding [Member]Common Class A [Member] | Common Stock Outstanding [Member]Common Class B [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Oct. 31, 2018 | 5,313,428 | 622,004 | 5,600 | |||||
Balance at Oct. 31, 2018 | $ 58 | $ 6 | $ 135,299 | $ 710,349 | $ (1,183,856) | $ (115,360) | $ (453,504) | |
Stock options, amortization and issuances (in shares) | ||||||||
Stock options, amortization and issuances | 107 | 107 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 2,830 | 922 | ||||||
Restricted stock amortization, issuances and forfeitures | 485 | 485 | ||||||
Conversion of Class B to Class A common stock (in shares) | 20 | (20) | ||||||
Conversion of Class B to Class A common stock | ||||||||
Net (loss) | (17,452) | (17,452) | ||||||
Balance (in shares) at Jan. 31, 2019 | 5,316,278 | 622,906 | 5,600 | |||||
Balance at Jan. 31, 2019 | $ 58 | $ 6 | $ 135,299 | 710,941 | (1,201,308) | (115,360) | (470,364) | |
Balance (in shares) at Oct. 31, 2019 | 5,503,297 | 622,694 | 5,600 | |||||
Balance at Oct. 31, 2019 | $ 60 | $ 7 | $ 135,299 | 715,504 | (1,225,973) | (115,360) | 687 | (489,776) |
Stock options, amortization and issuances (in shares) | ||||||||
Stock options, amortization and issuances | 162 | 162 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 3,000 | 1,796 | ||||||
Restricted stock amortization, issuances and forfeitures | (330) | (330) | ||||||
Conversion of Class B to Class A common stock (in shares) | 4 | (4) | ||||||
Conversion of Class B to Class A common stock | ||||||||
Changes in noncontrolling interest in consolidated joint ventures | 13 | 13 | ||||||
Net (loss) | (9,148) | (9,148) | ||||||
Balance (in shares) at Jan. 31, 2020 | 5,506,301 | 624,486 | 5,600 | |||||
Balance at Jan. 31, 2020 | $ 60 | $ 7 | $ 135,299 | $ 715,336 | $ (1,235,121) | $ (115,360) | $ 700 | $ (499,079) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities: | ||
Net (loss) | $ (9,148) | $ (17,452) |
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 1,279 | 979 |
Compensation from stock options and awards | (116) | 615 |
Amortization of bond discounts, premiums and deferred financing costs | 1,281 | 1,820 |
Gain on sale and retirement of property and assets | (2) | (15) |
Income from unconsolidated joint ventures | (1,540) | (9,562) |
Distributions of earnings from unconsolidated joint ventures | 9,250 | |
Gain on extinguishment of debt | (9,456) | |
Noncontrolling interest in consolidated joint venture | 13 | |
Inventory impairment and land option write-offs | 2,828 | 704 |
(Increase) decrease in assets: | ||
Origination of mortgage loans | (268,465) | (190,916) |
Sale of mortgage loans | 345,183 | 256,161 |
Receivables, prepaids, deposits and other assets | (4,437) | (1,331) |
Inventories | (6,058) | (100,912) |
Increase (decrease) in liabilities: | ||
State income tax payable | 1,714 | 341 |
Customers’ deposits | (2,560) | 409 |
Accounts payable, accrued interest and other accrued liabilities | (32,122) | (63,013) |
Net cash provided by (used in) operating activities | 27,644 | (122,172) |
Cash flows from investing activities: | ||
Proceeds from sale of property and assets | 9 | 15 |
Purchase of property, equipment and other fixed assets and acquisitions | (809) | (1,019) |
Investments in and advances to unconsolidated joint ventures | (18,524) | (1,329) |
Distributions of capital from unconsolidated joint ventures | 2,521 | 5,727 |
Net cash (used in) provided by investing activities | (16,803) | 3,394 |
Cash flows from financing activities: | ||
Proceeds from mortgages and notes | 60,437 | 54,216 |
Payments related to mortgages and notes | (58,725) | (28,264) |
Proceeds from model sale leaseback financing programs | 2,368 | 9,567 |
Payments related to model sale leaseback financing programs | (7,474) | (1,860) |
Proceeds from land bank financing programs | 39,620 | 14,626 |
Payments related to land bank financing programs | (23,544) | (3,193) |
Deferred financing costs from land bank financing program and note issuances | (10,637) | (1,489) |
Net cash (used in) provided by financing activities | (65,159) | 38,959 |
Net decrease in cash and cash equivalents, and restricted cash and cash equivalents | (54,318) | (79,819) |
Cash, cash equivalents, and restricted cash and cash equivalents balance, beginning of period | 182,266 | 232,992 |
Cash, cash equivalents, and restricted cash and cash equivalents balance, end of period | 127,948 | 153,173 |
Supplemental disclosures of cash flows: | ||
Cash paid for interest, net of capitalized interest (see Note 3 to the Condensed Consolidated Financial Statements) | 13,955 | 40,439 |
Cash (received) paid for income taxes | (2) | 6 |
Cash, cash equivalents, and restricted cash and cash equivalents balance, end of period | 127,948 | 153,173 |
Senior Secured Notes [Member] | ||
Cash flows from financing activities: | ||
Proceeds from senior secured notes, net of discount | 21,348 | |
Mortgage Warehouse Lines of Credit [Member] | ||
Cash flows from financing activities: | ||
Net borrowings (payments) related to lines of credit | (67,204) | (61,992) |
Unsecured Revolving Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Net borrowings (payments) related to lines of credit | 36,000 | |
Homebuilding [Member] | ||
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: | ||
Inventory impairment and land option write-offs | 2,828 | 704 |
Supplemental disclosures of cash flows: | ||
Cash and cash equivalents | 81,396 | 113,314 |
Restricted cash and cash equivalents | 19,878 | 12,827 |
Financial Services [Member] | ||
Supplemental disclosures of cash flows: | ||
Cash and cash equivalents | 4,181 | 4,317 |
Restricted cash and cash equivalents | $ 22,493 | $ 22,715 |
Supplemental Disclosure of Nonc
Supplemental Disclosure of Noncash Investing and Financing Activities | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental disclosure of noncash investing and financing activities: In accordance with the adoption of ASU 2016 02, first 2020, $23.3 $24.4 In the first 2020, $158.5 10.0% 1.75 2025 $23.2 10.0% 2022 $141.7 10.5% 2024. $163.0 $81.5 1.75 1.75 January 31, 2028. 12 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Basis of Presentation Hovnanian Enterprises, Inc. (“HEI”) conducts all of its homebuilding and financial services operations through its subsidiaries (references herein to the “Company,” “we,” “us” or “our” refer to HEI and its consolidated subsidiaries and should be understood to reflect the consolidated business of HEI’s subsidiaries). HEI has reportable segments consisting of six 17 The accompanying unaudited Condensed Consolidated Financial Statements include HEI's accounts and those of all of its consolidated subsidiaries after elimination of all of its significant intercompany balances and transactions. Noncontrolling interest represents the proportionate equity interest in a consolidated joint venture that is not 100% 99% 1% not The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10 10 X, not 10 October 31, 2019 not Reverse Stock Split – As discussed in Note 15, March 2019, 1 25 March 29, 2019, 25 $0.01 one 25 $0.01 one |
Note 2 - Stock Compensation
Note 2 - Stock Compensation | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 2. Stock Compensation For the three January 31, 2020, $0.1 $0.6 not three January 31, 2019, $0.6 $0.2 $0.1 three January 31, 2020 2019, |
Note 3 - Interest
Note 3 - Interest | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Home Building Interest [Text Block] | 3. Interest Interest costs incurred, expensed and capitalized were: Three Months Ended January 31, (In thousands) 2020 2019 Interest capitalized at beginning of period $71,264 $68,117 Plus interest incurred(1) 44,334 38,853 Less cost of sales interest expensed 18,136 10,242 Less other interest expensed(2)(3) 25,003 22,273 Less interest contributed to unconsolidated joint venture(4) 4,580 - Interest capitalized at end of period(5) $67,879 $74,455 ( 1 Data does not ( 2 Other interest expensed includes interest that does not not $14.9 $17.6 three January 31, 2020 2019 not $10.1 $4.7 three January 31, 2020 2019 ( 3 Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Three Months Ended January 31, (In thousands) 2020 2019 Other interest expensed $25,003 $22,273 Interest paid by our mortgage and finance subsidiaries 770 689 (Increase) decrease in accrued interest (11,818 ) 17,477 Cash paid for interest, net of capitalized interest $13,955 $40,439 ( 4 Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in December 2019, 18. no ( 5 Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Note 4 - Reduction of Inventory
Note 4 - Reduction of Inventory to Fair Value | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Inventory Impairments and Land Option Cost Write-offs [Text Block] | 4. Reduction of Inventory to Fair Value We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they may first 2020, not one first 2019 no may During the three January 31, 2020 2019, 383 397 three January 31, 2020 one $0.6 not no three January 31, 2020. three January 31, 2019 one 397 $0.1 $6.3 three January 31, 2019, The Condensed Consolidated Statement of Operations line entitled “Homebuilding: Inventory impairment loss and land option write-offs” also includes write-offs of options and approval, engineering and capitalized interest costs that we record when we redesign communities and/or abandon certain engineering costs and we do not not $2.8 $0.7 three January 31, 2020 2019, not three January 31, 2020 2019 1,285 1,490, first 2020 first 2019. We decide to mothball (or stop development on) certain communities when we determine that the current performance does not first 2020, not one January 31, 2020 October 31, 2019, 13 $13.8 $138.1 We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a third 606 10 55 68, January 31, 2020 October 31, 2019, $48.5 $54.2 not $46.3 $51.2 not We have land banking arrangements, whereby we sell our land parcels to the land bankers and they provide us an option to purchase back finished lots on a predetermined schedule. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC 606 10 55 70, January 31, 2020 October 31, 2019, $156.7 $136.1 not $105.9 $89.8 not |
Note 5 - Variable Interest Enti
Note 5 - Variable Interest Entities | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 5. Variable Interest Entities The Company enters into land and lot option purchase contracts to procure land or lots for the construction of homes. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not not 810, may In compliance with ASC 810, not 810 January 31, 2020 October 31, 2019, not We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at January 31, 2020, $74.3 $1.3 not |
Note 6 - Warranty Costs
Note 6 - Warranty Costs | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 6. Warranty Costs General liability insurance for homebuilding companies and their suppliers and subcontractors is very difficult to obtain. The availability of general liability insurance is limited due to a decreased number of insurance companies willing to underwrite for the industry. In addition, those few insurers willing to underwrite liability insurance have significantly increased the premium costs. To date, we have been able to obtain general liability insurance but at higher premium costs with higher deductibles. Our subcontractors and suppliers have advised us that they have also had difficulty obtaining insurance that also provides us coverage. As a result, we have an owner controlled insurance program for certain of our subcontractors whereby the subcontractors pay us an insurance premium (through a reduction of amounts we would otherwise owe such subcontractors for their work on our homes) based on the risk type of the trade. We absorb the liability associated with their work on our homes as part of our overall general liability insurance at no three January 31, 2020 2019, $1.3 $1.2 We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible. This accrual is expensed as selling, general and administrative costs. For homes delivered in each of fiscal 2020 2019, $20 2020 2019 $0.25 $5 $20 2020 2019. not three January 31, 2020 2019 Three Months Ended January 31, (In thousands) 2020 2019 Balance, beginning of period $89,371 $95,064 Additions – Selling, general and administrative 1,941 2,158 Additions – Cost of sales 1,903 2,028 Charges incurred during the period (3,665 ) (6,091 ) Changes to pre-existing reserves 355 251 Balance, end of period $89,905 $93,410 Warranty accruals are based upon historical experience. We engage a third not Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, were less than $0.1 three January 31, 2020 2019 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingent Liabilities | 3 Months Ended |
Jan. 31, 2020 | |
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 We also are subject to a variety of local, state, federal and foreign laws and regulations concerning protection of health and the environment, including those regulating the emission or discharge of materials into the environment, the management of storm water runoff at construction sites, the handling, use, storage and disposal of hazardous substances, impacts to wetlands and other sensitive environments, and the remediation of contamination at properties that we have owned or developed or currently own or are developing (“environmental laws”). The particular environmental laws that apply to a site may may may may We anticipate that increasingly stringent requirements will continue to be imposed on developers and homebuilders in the future. For example, for a number of years, the EPA and U.S. Army Corps of Engineers have been engaged in rulemakings to clarify the scope of federally regulated wetlands, which included a June 2015 June 2017 June 2015 February 2018 June 2015 February 2020, August 2018 June 2015 22 June 2015 December 2019, June 2015 one 14 January 2020, June 2015 may may may In March 2013, 1990s. August 2013, not may not April 2014 March 2017 May 2, 2018 100% $2.7 June 15, 2018 December 20, 2019 June 20, 2020 November 4, 2019 In 2015, $119.5 August 17, 2018, September 14, 2020. November 19, 2019. April 27 28, 2020. |
Note 8 - Cash and Cash Equivale
Note 8 - Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's Deposits | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 8. Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's Deposits Cash represents cash deposited in checking accounts. Cash equivalents include certificates of deposit, Treasury bills and government money–market funds with maturities of 90 may, January 31, 2020 October 31, 2019, $64.4 $143.1 Homebuilding - Restricted cash and cash equivalents on the Condensed Consolidated Balance Sheets totaled $19.9 $20.9 January 31, 2020 October 31, 2019, 12. Financial services restricted cash and cash equivalents, which are included in Financial services assets on the Condensed Consolidated Balance Sheets, totaled $22.5 $24.8 January 31, 2020 October 31, 2019, 1 $20.2 January 31, 2020 $22.8 October 31, 2019, 2 $2.3 January 31, 2020 $2.0 October 31, 2019 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 - Leases
Note 9 - Leases | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 9. Leases We lease certain office space for use in our operations. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842 842" 842, three five 842, 842, not Our lease population at January 31, 2020 842, not twelve Lease cost included in our Condensed Consolidated Statements of Operations in Selling, general and administrative expenses and payments on our lease liabilities are presented in the table below. Our short-term lease costs and sublease income are de minimis. (In thousands) Three Months Ended January 31, 2020 Operating lease cost $2,591 Cash payments on lease liabilities $2,316 ROU assets are classified within Prepaids and other assets on our Condensed Consolidated Balance Sheets, while lease liabilities are classified within Accounts payable and other liabilities on our Condensed Consolidated Balance Sheets. The following table contains additional information about our leases: At January 31, 2020 ROU assets $ 22,267 Lease liabilities $23,306 Weighted-average remaining lease term (in years) 3.7 Weighted-average discount rate (incremental borrowing rate) 9.6 % Maturities of our operating lease liabilities as of January 31, 2020 Year ended October 31, (in thousands) 2020 (excluding the three months ended January 31, 2020) $6,817 2021 7,894 2022 6,725 2023 3,447 2024 1,128 Thereafter 1,791 Total payments 27,802 Less: imputed interest (4,496 ) Present value of lease liabilities $ 23,306 |
Note 10 - Mortgage Loans Held f
Note 10 - Mortgage Loans Held for Sale | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 10. Mortgage Loans Held for Sale Our wholly owned mortgage banking subsidiary, K. Hovnanian American Mortgage, LLC (“ K. Hovnanian Mortgage”), originates mortgage loans, primarily from the sale of our homes. Such mortgage loans are sold in the secondary mortgage market within a short period of time of origination. Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. We have elected the fair value option to record loans held for sale and therefore these loans are recorded at fair value with the changes in the value recognized in the Condensed Consolidated Statements of Operations in “Revenues: Financial services.” We currently use forward sales of mortgage-backed securities (“MBS”), interest rate commitments from borrowers and mandatory and/or best efforts forward commitments to sell loans to third not At January 31, 2020 October 31, 2019, $74.4 $143.2 11 may not January 31, 2020 2019, 21 20 not The activity in our loan origination reserves during the three January 31, 2020 2019 Three Months Ended January 31, (In thousands) 2020 2019 Loan origination reserves, beginning of period $1,268 $2,563 Provisions for losses during the period 40 41 Adjustments to pre-existing provisions for losses from changes in estimates - 10 Payments/Settlements - (1,350 ) Loan origination reserves, end of period $1,308 $1,264 |
Note 11 - Mortgages
Note 11 - Mortgages | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Line of Credit [Text Block] | 11. Mortgages Nonrecourse. $205.8 $203.6 January 31, 2020 October 31, 2019, $422.2 $410.2 8.2% 8.3% January 31, 2020 October 31, 2019, Mortgage Loans. Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”) which was amended on December 13, 2019, December 11, 2020 $50.0 1.66% January 31, 2020, 2.5% 2.625% January 31, 2020 October 31, 2019, $26.7 $47.1 K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Customers Bank (“Customers Master Repurchase Agreement”) which was amended on February 28, 2020 $50.0 February 12, 2021. 2.125% 4.75% January 31, 2020 October 31, 2019, $23.0 $47.6 K. Hovnanian Mortgage also has a secured Master Repurchase Agreement with Comerica Bank (“Comerica Master Repurchase Agreement”) which was amended on January 22, 2020 $50.0 December 18, 2020. 0.25%, 1.875% 3.25% January 31, 2020 October 31, 2019, $23.3 $45.5 The Chase Master Repurchase Agreement, Customers Master Repurchase Agreement and Comerica Master Repurchase Agreement (together, the “Master Repurchase Agreements”) require K. Hovnanian Mortgage to satisfy and maintain specified financial ratios and other financial condition tests. Because of the extremely short period of time mortgages are held by K. Hovnanian Mortgage before the mortgages are sold to investors (generally a period of a few weeks), the immateriality to us on a consolidated basis of the size of the Master Repurchase Agreements, the levels required by these financial covenants, our ability based on our immediately available resources to contribute sufficient capital to cure any default, were such conditions to occur, and our right to cure any conditions of default based on the terms of the applicable agreement, we do not January 31, 2020, |
Note 12 - Senior Notes and Cred
Note 12 - Senior Notes and Credit Facilities | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 12. Senior Notes and Credit Facilities Senior notes and credit facilities balances as of January 31, 2020 October 31, 2019 January 31, October 31, (In thousands) 2020 2019 Senior Secured Notes: 10.0% Senior Secured Notes due July 15, 2022 $195,842 $218,994 10.5% Senior Secured Notes due July 15, 2024 69,683 211,391 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 350,000 350,000 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 282,322 282,322 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 103,141 103,141 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 158,502 - Total Senior Secured Notes $1,159,490 $1,165,848 Senior Notes: 8.0% Senior Notes due November 1, 2027 (1) $- $- 13.5% Senior Notes due February 1, 2026 90,590 90,590 5.0% Senior Notes due February 1, 2040 90,120 90,120 Total Senior Notes $180,710 $180,710 Senior Unsecured Term Loan Credit Facility due February 1, 2027 $39,551 $202,547 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 $81,498 $- Senior Secured Revolving Credit Facility (2) $- $- Net discounts and premiums $23,503 $(49,145 ) Net debt issuance costs $(24,552 ) $(19,970 ) Total Senior Notes and Credit Facilities, net of discount, premium and debt issuance costs $1,460,200 $1,479,990 ( 1 $26.0 8.0% not November 1, 2019, 8.0% November 1, 2027. ( 2 January 31, 2020, $125.0 first December 28, 2022. General Except for K. Hovnanian, the issuer of the notes and borrower under the Credit Facilities (as defined below), our home mortgage subsidiaries, certain of our title insurance subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures, we and each of our subsidiaries are guarantors of the Credit Facilities, the senior secured notes and senior notes outstanding at January 31, 2020 ( The credit agreements governing the Credit Facilities and the indentures governing the senior secured and senior notes (together, the “Debt Instruments”) outstanding at January 31, 2020 not not January 31, 2020, If our consolidated fixed charge coverage ratio is less than 2.0 1.0, 4.0 1.0 not 7.625% not Under the terms of our Debt Instruments, we have the right to make certain redemptions and prepayments and, depending on market conditions and covenant restrictions, may may Fiscal 2020 On December 10, 2019, $158.5 10.0% 1.75 2025 “1.75 $23.2 10.0% 2022 “10.0% 2022 $141.7 10.5% 2024 “10.5% 2024 10.0% 2022 $163.0 $81.5 1.75 January 31, 2028 ( no 470 60, $164.9 $148.8 $158.5 1.75 $81.5 $9.5 $0.65, The 1.75 December 10, 2019, 1.75 1.75 1.75 May 15 November 15 May 15, 2020, May 1 November 1, may 1.75 November 15, 2025. The 1.75 November 15, 2021 100.0% November 15, 2021 November 15, 2022, may 1.75 105.00% November 15, 2022 November 15, 2023, may 1.75 102.50% November 15, 2023, may 1.75 100.0% may 35.0% 1.75 November 15, 2021 110.00% The Secured Term Loans and the guarantees thereof will be secured on a pari passu basis with the 1.75 1.75 10.0% January 31, 2028. 10.0% may November 15, 2021 100.0% November 15, 2021 November 15, 2022, may 105.00% November 15, 2022 November 15, 2023, may 102.50% November 15, 2023, may 100.0% Fiscal 2019 On January 15, 2019, $25.0 10.5% 2024 one $21.3 10.5% 2024 10.5% 2024 On October 31, 2019, $125.0 December 28, 2022. 7.75%, On October 31, 2019, $350.0 7.75% 1.125 2026 “1.125 October 31, 2019, “1.125 1.125 1.125 $282.3 10.5% 1.25 2026 “1.25 “1.25 October 31, 2019, “1.25 In addition, on October 31, 2019, $221.0 10.0% 2022 $114.0 10.5% 2024 $350.0 1.125 $99.6 10.5% 2024 $103.1 11.25% 1.5 2026 “1.5 1.125 1.25 October 30, 2019 ( On October 31, 2019, 9.50% 2020 “9.50% 2.000% 2021 “2.000% 5.000% 2021 “5.000% “9.50% 9.50% “5.000%/2.000% 5.000% 2.000% 9.50% 9.50% not November 10, 2019 5.000%/2.000% 5.000% 2.000% not November 30, 2019 1.25 9.50% 9.50% 5.000%/2.000% 5.000% 2.000% HEI and K. Hovnanian obtained the consent of certain lenders/holders under its existing debt instruments to amend such debt instruments in connection with the issuance of the New Secured Notes and the execution of the indentures governing the New Secured Notes and the Secured Credit Agreement. HEI, K. Hovnanian and the guarantors also amended such debt instruments to add certain subsidiaries as guarantors thereunder and, in the case of the Second Lien Notes, to add such new guarantors as pledgors and grantors of their assets (subject to permitted liens and certain exceptions) to secure such Second Lien Notes. Secured Obligations The 10.0% 2022 July 15, 2022 10.0% January 15 July 15 January 1 July 1, may may 10.0% 2022 105.0% July 15, 2019, 102.50% July 15, 2020 100.0% July 15, 2021. The 10.5% 2024 July 15, 2024 10.5% January 15 July 15 January 1 July 1, may 10.5% 2024 July 15, 2020 100.0% may 10.5% 2024 105.25% July 15, 2020, 102.625% July 15, 2021 100.0% July 15, 2022. may 35.0% 10.5% 2024 July 15, 2020 110.50% The 1.125 February 15, 2026 7.75% February 15 August 15 February 1 August 1, may 1.125 February 15, 2022 100.0% 35% 1.125 may 107.75% February 15, 2022. may 1.125 103.875% February 15, 2022, 101.937% February 15, 2023 100.0% February 15, 2024. The 1.25 February 15, 2026 10.5% February 15 August 15 February 1 August 1, may 1.25 February 15, 2022 100.0% 35% 1.25 may 110.5% February 15, 2022. may 1.25 105.25% February 15, 2022, 102.625% February 15, 2023 100.0% February 15, 2024. The 1.5 February 15, 2026 11.25% February 15 August 15 February 1 August 1, may 1.5 February 15, 2026 100.0% See “— Fiscal 2020” 1.75 Fiscal 2019” Each series of secured notes and the guarantees thereof, the Secured Term Loans and the guarantees thereof and the Secured Credit Agreement and the guarantees thereof are secured by the same assets. Among the secured debt, the liens securing the Secured Credit Agreement are senior to the liens securing all of K. Hovnanian’s other secured notes and the Secured Term Loan. The liens securing the 1.125 1.25 1.5 1.75 1.125 1.25 1.5 1.75 1.25 1.5 1.75 1.5 1.75 1.75 As of January 31, 2020, 1.75 1 $87.8 $18.5 2 $446.5 not may 3 $200.3 Unsecured Obligations On January 29, 2018, $202.5 5.0% February 1, 2027. February 1, 2018, $90.6 13.5% 2026 “2026 $90.1 5.0% 2040 “2040 $170.2 8.0% $26.5 $26.0 8.0% 8.0% 2026 2040 not 2026 2040 2026 13.5% February 1, 2026. 2040 5.0% February 1, 2040. 2026 2040 February 1 August 1 January 15 July 15, may K. Hovnanian’s 2026 February 1, 2025 100% February 1, 2025, may 2026 100.0% At any time and from time to time on or after February 1, 2020 February 1, 2021, may 2040 102.50% February 1, 2021, may 2040 100.0% Other We have certain stand-alone cash collateralized letter of credit agreements and facilities under which there was a total of $17.8 $19.2 January 31, 2020 October 31, 2019, January 31, 2020 October 31, 2019, $18.5 $19.9 |
Note 13 - Per Share Calculation
Note 13 - Per Share Calculation | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 13. 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. Any options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. All outstanding nonvested shares that contain nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two two There were 0.3 0.1 three January 31, 2020 January 31, 2019, In addition, shares related to out-of-the money stock options that could potentially dilute basic earnings per share in the future that were not 0.2 0.3 three January 31, 2020 2019, |
Note 14 - Preferred Stock
Note 14 - Preferred Stock | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | 14. Preferred Stock On July 12, 2005, 5,600 7.625% $25,000 not 7.625%. not 1/1000th three January 31, 2020 2019 not not |
Note 15 - Common Stock
Note 15 - Common Stock | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 15. Common Stock Each share of Class A Common Stock entitles its holder to one ten 110% one one On March 19, 2019, 1 25 March 19, 2019, March 29, 2019, 25 $0.01 one 25 $0.01 one No On August 4, 2008, January 11, 2018, 382 382. 382 5% 50 382. one August 15, 2008. August 15, 2008, 4.9% August 4, 2008, 4.9% may August 14, 2021, 382 5% 5% 5% 5% 5% On July 3, 2001, 0.2 no three January 31, 2020 January 31, 2020 may 22 |
Note 16 - Income Taxes
Note 16 - Income Taxes | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 16. Income Taxes The total income tax expense of $1.7 three January 31, 2020 not $0.3 three January 31, 2019 not Our federal NOLs of $1.5 2028 2037, $32.1 $2.5 $211.4 2020 2024; $1.2 2025 2029; $760.1 2030 2034; $277.6 2035 2039; $74.4 Deferred federal and state income tax assets (“DTAs”) primarily represent the deferred tax benefits arising from NOL carryforwards and temporary differences between book and tax income which will be recognized in future years as an offset against future taxable income. If the combination of future years’ income (or loss) and the reversal of the timing differences results in a loss, such losses can be carried forward to future years. In accordance with ASC 740, 740 not” As of January 31, 2020 , 740. not not $596.0 January 31, 2020, 1. As of January 31, 2020, three three January 31, 2020. not three 740, one 2. In the third 2017, second third 2018, fourth 2019, first 2020, 3. Our net contracts per community and our absolute net contracts increased in the first 2020 first 2019, third 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 2016 two 2018 6. The historical cyclicality of the U.S. housing market, a more restrictive mortgage lending environment compared to before the housing downturn of 2007 2009, |
Note 17 - Operating and Reporti
Note 17 - Operating and Reporting Segments | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 17. Operating and Reporting Segments HEI’s operating segments are components of the Company’s business for which discrete financial information is available and reviewed regularly by the chief operating decision maker, our Chief Executive Officer, to evaluate performance and make operating decisions. Based on this criteria, each of the Company's communities qualifies as an operating segment, and therefore, it is impractical to provide segment disclosures for this many segments. As such, HEI has aggregated the homebuilding operating segments into six HEI’s homebuilding operating segments are aggregated into reportable segments based primarily upon geographic proximity, similar regulatory environments, land acquisition characteristics and similar methods used to construct and sell homes. HEI’s reportable segments consist of the following six Homebuilding: ( 1 Northeast (New Jersey and Pennsylvania) ( 2 Mid-Atlantic (Delaware, Maryland, Virginia, Washington D.C. and West Virginia) ( 3 Midwest (Illinois and Ohio) ( 4 Southeast (Florida, Georgia and South Carolina) ( 5 Southwest (Arizona and Texas) ( 6 West (California) Financial Services Operations of the Homebuilding segments primarily include the sale and construction of single-family attached and detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. In addition, from time to time, operations of the homebuilding segments include sales of land. Operations of the Financial Services segment include mortgage banking and title services provided to the homebuilding operations’ customers. Our financial services subsidiaries do not Corporate and unallocated primarily represents operations at our headquarters in New Jersey. This includes our executive offices, information services, human resources, corporate accounting, training, treasury, process redesign, internal audit, construction services, and administration of insurance, quality and safety. It also includes interest income and interest expense resulting from interest incurred that cannot be capitalized in inventory in the Homebuilding segments, as well as the gains or losses on extinguishment of debt from any debt repurchases or exchanges. Evaluation of segment performance is based primarily on operating earnings from continuing operations before provision for income taxes (“Income (loss) before income taxes”). Income (loss) before income taxes for the Homebuilding segments consist of revenues generated from the sales of homes and land, income (loss) from unconsolidated entities, management fees and other income, less the cost of homes and land sold, selling, general and administrative expenses and interest expense. Income (loss) before income taxes for the Financial Services segment consist of revenues generated from mortgage financing, title insurance and closing services, less the cost of such services and selling, general and administrative expenses incurred by the Financial Services segment. Operational results of each segment are not Financial information relating to HEI’s segment operations was as follows: Three Months Ended January 31, (In thousands) 2020 2019 Revenues: Northeast $45,276 $19,941 Mid-Atlantic 87,759 53,430 Midwest 46,444 44,921 Southeast 36,774 43,991 Southwest 163,899 118,199 West 99,621 89,901 Total homebuilding 479,773 370,383 Financial services 14,014 9,608 Corporate and unallocated 269 603 Total revenues $494,056 $380,594 (Loss) income before income taxes: Northeast $5,741 $5,879 Mid-Atlantic 4,058 (7 ) Midwest (3,443 ) (849 ) Southeast (4,311 ) (2,929 ) Southwest 8,620 2,386 West 1,611 11,705 Total homebuilding 12,276 16,185 Financial services 4,460 1,134 Corporate and unallocated (1) (24,172 ) (34,425 ) (Loss) income before income taxes $(7,436 ) $(17,106 ) ( 1 three January 31, 2020 $19.7 $14.9 9.5 0.9 three January 31, 2019 $17.7 $17.5 0.8 January 31, October 31, (In thousands) 2020 2019 Assets: Northeast $151,859 $163,342 Mid-Atlantic 267,198 264,894 Midwest 122,317 117,242 Southeast 276,643 281,654 Southwest 364,239 357,052 West 336,243 311,919 Total homebuilding 1,518,499 1,496,103 Financial services 117,557 199,275 Corporate and unallocated 153,947 186,046 Total assets $1,790,003 $1,881,424 |
Note 18 - Investments in Uncons
Note 18 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 18. Investments in Unconsolidated Homebuilding and Land Development Joint Ventures We enter into homebuilding and land development joint ventures from time to time as a means of accessing lot positions, expanding our market opportunities, establishing strategic alliances, managing our risk profile, leveraging our capital base and enhancing returns on capital. Our homebuilding joint ventures are generally entered into with third third third During the first 2020, eight four $29.8 The tables set forth below summarize the combined financial information related to our unconsolidated homebuilding and land development joint ventures that are accounted for under the equity method. (Dollars in thousands) January 31, 2020 Land Homebuilding Development Total Assets: Cash and cash equivalents $71,647 $1,758 $73,405 Inventories 450,493 3,266 453,759 Other assets 25,079 459 25,538 Total assets $547,219 $5,483 $552,702 Liabilities and equity: Accounts payable and accrued liabilities $91,851 $447 $92,298 Notes payable 145,764 - 145,764 Total liabilities 237,615 447 238,062 Equity of: Hovnanian Enterprises, Inc. 131,017 4,141 135,158 Others 178,587 895 179,482 Total equity 309,604 5,036 314,640 Total liabilities and equity $547,219 $5,483 $552,702 Debt to capitalization ratio 32 % 0 % 32 % (Dollars in thousands) October 31, 2019 Land Homebuilding Development Total Assets: Cash and cash equivalents $108,520 $2,203 $110,723 Inventories 397,804 6,038 403,842 Other assets 24,896 233 25,129 Total assets $531,220 $8,474 $539,694 Liabilities and equity: Accounts payable and accrued liabilities $71,297 $592 $71,889 Notes payable 186,882 - 186,882 Total liabilities 258,179 592 258,771 Equity of: Hovnanian Enterprises, Inc. 120,891 4,747 125,638 Others 152,150 3,135 155,285 Total equity 273,041 7,882 280,923 Total liabilities and equity $531,220 $8,474 $539,694 Debt to capitalization ratio 41 % 0 % 40 % As of January 31, 2020 October 31, 2019, $0.2 $1.4 $135.3 $127.0 January 31, 2020 October 31, 2019, three January 31, 2020 2019, not For the Three Months Ended January 31, 2020 (In thousands) Land Homebuilding Development Total Revenues $86,964 $3,740 $90,704 Cost of sales and expenses (88,551 ) (4,953 ) (93,504 ) Joint venture net loss $(1,587 ) $(1,213 ) $(2,800 ) Our share of net income (loss) $1,470 $(606 ) $864 For the Three Months Ended January 31, 2019 (In thousands) Land Homebuilding Development Total Revenues $95,774 $1,005 $96,779 Cost of sales and expenses (89,312 ) (971 ) (90,283 ) Joint venture net income $6,462 $34 $6,496 Our share of net income $9,541 $17 $9,558 “Income (loss) from unconsolidated joint ventures” is reflected as a separate line in the accompanying Condensed Consolidated Statements of Operations and reflects our proportionate share of the income or loss of these unconsolidated homebuilding and land development joint ventures. The difference between our share of the income or loss from these unconsolidated joint ventures in the tables above compared to the Condensed Consolidated Statements of Operations is due primarily to the reclassification of the intercompany portion of management fee income from certain unconsolidated joint ventures and the deferral of income for lots purchased by us from unconsolidated certain joint ventures. For the first 2020, two first 2019, $3.7 $3.4 three January 31, 2020 2019, In determining whether or not Typically, our unconsolidated joint ventures obtain separate project specific mortgage financing. For some of our unconsolidated joint ventures, obtaining financing was challenging, therefore, some of our unconsolidated joint ventures are capitalized only with equity. The total debt to capitalization ratio of all our unconsolidated joint ventures is currently 32%. 810 10 not not |
Note 19 - Recent Accounting Pro
Note 19 - Recent Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 19. Recent Accounting Pronouncements In February 2016, No. 2016 02, 842 2016 02” 2016 02 12 2016 02 November 1, 2019 no 2016 02 $23.3 $24.4 November 1, 2019. 2016 02 no In July 2018, No. 2018 09, 2018 09” 2018 09 2018 09 not 2018 09. December 15, 2018. 2018 09 not In August 2018, No. 2018 13, 820 2018 13” 2018 13 November 1, 2020. In August 2018, No. 2018 15 350 40 2018 15” 2018 15 2018 15 November 1, 2020. |
Note 20 - Fair Value of Financi
Note 20 - Fair Value of Financial Instruments | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 20. Fair Value of Financial Instruments ASC 820, Level 1: Level 2: Level 3: Our financial instruments measured at fair value on a recurring basis are summarized below: Fair Value at Fair Value at Fair Value January 31, October 31, (In thousands) Hierarchy 2020 2019 Mortgage loans held for sale (1) Level 2 $89,330 $166,007 Forward contracts Level 2 (183 ) (64 ) Total $89,147 $165,943 Interest rate lock commitments Level 3 $118 $42 Total $89,265 $165,985 ( 1 $86.5 $161.1 January 31, 2020 October 31, 2019, We elected the fair value option for our loans held for sale in accordance with ASC 825, The Financial Services segment had a pipeline of loan applications in process of $496.6 January 31, 2020. $47.4 January 31, 2020. 60 not The Financial Services segment uses investor commitments and forward sales of mandatory MBS to hedge its mortgage-related interest rate exposure. These instruments involve, to varying degrees, elements of credit and interest rate risk. Credit risk is managed by entering into MBS forward commitments, option contracts with investment banks, federally regulated bank affiliates and loan sales transactions with permanent investors meeting the segment’s credit standards. The segment’s risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At January 31, 2020, $11.5 February 20, 2020. The assets accounted for using the fair value option are initially measured at fair value. Gains and losses from initial measurement and subsequent changes in fair value are recognized in the Condensed Consolidated Financial Statements in “Revenues: Financial services.” The fair values that are included in income are shown, by financial instrument and financial statement line item, below: Three Months Ended January 31, 2020 Mortgage Interest Rate Loans Held Lock Forward (In thousands) For Sale Commitments Contracts Fair value included in net loss all reflected in financial services revenues $2,862 $118 $(183 ) Three Months Ended January 31, 2019 Mortgage Interest Rate Loans Held Lock Forward (In thousands) For Sale Commitments Contracts Fair value included in net loss all reflected in financial services revenues $1,996 $225 $(385 ) The Company's assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs during the three January 31, 2019. not three January 31, 2020. Nonfinancial Assets Three Months Ended January 31, 2019 Pre- Fair Value Impairment (In thousands) Hierarchy Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $- $- $- Land and land options held for future development or sale Level 3 $6,302 $(43 ) $6,259 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 $0.1 three January 31, 2019. not three January 31, 2020. 4 The fair value of our cash equivalents, restricted cash and cash equivalents and customer’s deposits approximates their carrying amount, based on Level 1 The fair value of each series of our Notes are listed below. Level 2 3 third Fair Value as of January 31, 2020 (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% Senior Secured Notes due July 15, 2022 $- $180,175 $- $180,175 10.5% Senior Secured Notes due July 15, 2024 - 49,133 - 49,133 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 - - 341,250 341,250 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 - - 273,852 273,852 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 - - 103,141 103,141 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 - - 118,877 118,877 Senior Notes: 13.5% Senior Notes due February 1, 2026 - - 79,022 79,022 5.0% Senior Notes due February 1, 2040 - 36,949 - 36,949 Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 22,049 22,049 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 - - 61,124 61,124 Total fair value $- $266,257 $999,315 $1,265,572 Fair Value as of October 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% Senior Secured Notes due July 15, 2022 $- $189,430 $- $189,430 10.5% Senior Secured Notes due July 15, 2024 - 166,999 - 166,999 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 - - 350,000 350,000 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 - - 282,322 282,322 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 - - 103,141 103,141 Senior Notes: 13.5% Senior Notes due February 1, 2026 - - 80,254 80,254 5.0% Senior Notes due February 1, 2040 - - 31,993 31,993 Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 106,499 106,499 Total fair value $- $356,429 $954,209 $1,310,638 The Senior Secured Revolving Credit Facility is not no January 31, 2020 October 31, 2019 |
Note 21 - Transactions With Rel
Note 21 - Transactions With Related Parties | 3 Months Ended |
Jan. 31, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 21. Transactions with Related Parties During the three January 31, 2020 2019, $0.2 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10 10 X, not 10 October 31, 2019 not |
Note 3 - Interest (Tables)
Note 3 - Interest (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Notes Tables | |
Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block] | Three Months Ended January 31, (In thousands) 2020 2019 Interest capitalized at beginning of period $71,264 $68,117 Plus interest incurred(1) 44,334 38,853 Less cost of sales interest expensed 18,136 10,242 Less other interest expensed(2)(3) 25,003 22,273 Less interest contributed to unconsolidated joint venture(4) 4,580 - Interest capitalized at end of period(5) $67,879 $74,455 |
Cash Paid for Interest Net of Capitalized Interest [Table Text Block] | Three Months Ended January 31, (In thousands) 2020 2019 Other interest expensed $25,003 $22,273 Interest paid by our mortgage and finance subsidiaries 770 689 (Increase) decrease in accrued interest (11,818 ) 17,477 Cash paid for interest, net of capitalized interest $13,955 $40,439 |
Note 6 - Warranty Costs (Tables
Note 6 - Warranty Costs (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended January 31, (In thousands) 2020 2019 Balance, beginning of period $89,371 $95,064 Additions – Selling, general and administrative 1,941 2,158 Additions – Cost of sales 1,903 2,028 Charges incurred during the period (3,665 ) (6,091 ) Changes to pre-existing reserves 355 251 Balance, end of period $89,905 $93,410 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | (In thousands) Three Months Ended January 31, 2020 Operating lease cost $2,591 Cash payments on lease liabilities $2,316 At January 31, 2020 ROU assets $ 22,267 Lease liabilities $23,306 Weighted-average remaining lease term (in years) 3.7 Weighted-average discount rate (incremental borrowing rate) 9.6 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year ended October 31, (in thousands) 2020 (excluding the three months ended January 31, 2020) $6,817 2021 7,894 2022 6,725 2023 3,447 2024 1,128 Thereafter 1,791 Total payments 27,802 Less: imputed interest (4,496 ) Present value of lease liabilities $ 23,306 |
Note 10 - Mortgage Loans Held_2
Note 10 - Mortgage Loans Held for Sale (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Three Months Ended January 31, (In thousands) 2020 2019 Loan origination reserves, beginning of period $1,268 $2,563 Provisions for losses during the period 40 41 Adjustments to pre-existing provisions for losses from changes in estimates - 10 Payments/Settlements - (1,350 ) Loan origination reserves, end of period $1,308 $1,264 |
Note 12 - Senior Notes and Cr_2
Note 12 - Senior Notes and Credit Facilities (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | January 31, October 31, (In thousands) 2020 2019 Senior Secured Notes: 10.0% Senior Secured Notes due July 15, 2022 $195,842 $218,994 10.5% Senior Secured Notes due July 15, 2024 69,683 211,391 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 350,000 350,000 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 282,322 282,322 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 103,141 103,141 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 158,502 - Total Senior Secured Notes $1,159,490 $1,165,848 Senior Notes: 8.0% Senior Notes due November 1, 2027 (1) $- $- 13.5% Senior Notes due February 1, 2026 90,590 90,590 5.0% Senior Notes due February 1, 2040 90,120 90,120 Total Senior Notes $180,710 $180,710 Senior Unsecured Term Loan Credit Facility due February 1, 2027 $39,551 $202,547 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 $81,498 $- Senior Secured Revolving Credit Facility (2) $- $- Net discounts and premiums $23,503 $(49,145 ) Net debt issuance costs $(24,552 ) $(19,970 ) Total Senior Notes and Credit Facilities, net of discount, premium and debt issuance costs $1,460,200 $1,479,990 |
Note 17 - Operating and Repor_2
Note 17 - Operating and Reporting Segments (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | January 31, October 31, (In thousands) 2020 2019 Assets: Northeast $151,859 $163,342 Mid-Atlantic 267,198 264,894 Midwest 122,317 117,242 Southeast 276,643 281,654 Southwest 364,239 357,052 West 336,243 311,919 Total homebuilding 1,518,499 1,496,103 Financial services 117,557 199,275 Corporate and unallocated 153,947 186,046 Total assets $1,790,003 $1,881,424 |
Operating Segments [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended January 31, (In thousands) 2020 2019 Revenues: Northeast $45,276 $19,941 Mid-Atlantic 87,759 53,430 Midwest 46,444 44,921 Southeast 36,774 43,991 Southwest 163,899 118,199 West 99,621 89,901 Total homebuilding 479,773 370,383 Financial services 14,014 9,608 Corporate and unallocated 269 603 Total revenues $494,056 $380,594 (Loss) income before income taxes: Northeast $5,741 $5,879 Mid-Atlantic 4,058 (7 ) Midwest (3,443 ) (849 ) Southeast (4,311 ) (2,929 ) Southwest 8,620 2,386 West 1,611 11,705 Total homebuilding 12,276 16,185 Financial services 4,460 1,134 Corporate and unallocated (1) (24,172 ) (34,425 ) (Loss) income before income taxes $(7,436 ) $(17,106 ) |
Note 18 - Investments in Unco_2
Note 18 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | (Dollars in thousands) January 31, 2020 Land Homebuilding Development Total Assets: Cash and cash equivalents $71,647 $1,758 $73,405 Inventories 450,493 3,266 453,759 Other assets 25,079 459 25,538 Total assets $547,219 $5,483 $552,702 Liabilities and equity: Accounts payable and accrued liabilities $91,851 $447 $92,298 Notes payable 145,764 - 145,764 Total liabilities 237,615 447 238,062 Equity of: Hovnanian Enterprises, Inc. 131,017 4,141 135,158 Others 178,587 895 179,482 Total equity 309,604 5,036 314,640 Total liabilities and equity $547,219 $5,483 $552,702 Debt to capitalization ratio 32 % 0 % 32 % (Dollars in thousands) October 31, 2019 Land Homebuilding Development Total Assets: Cash and cash equivalents $108,520 $2,203 $110,723 Inventories 397,804 6,038 403,842 Other assets 24,896 233 25,129 Total assets $531,220 $8,474 $539,694 Liabilities and equity: Accounts payable and accrued liabilities $71,297 $592 $71,889 Notes payable 186,882 - 186,882 Total liabilities 258,179 592 258,771 Equity of: Hovnanian Enterprises, Inc. 120,891 4,747 125,638 Others 152,150 3,135 155,285 Total equity 273,041 7,882 280,923 Total liabilities and equity $531,220 $8,474 $539,694 Debt to capitalization ratio 41 % 0 % 40 % For the Three Months Ended January 31, 2020 (In thousands) Land Homebuilding Development Total Revenues $86,964 $3,740 $90,704 Cost of sales and expenses (88,551 ) (4,953 ) (93,504 ) Joint venture net loss $(1,587 ) $(1,213 ) $(2,800 ) Our share of net income (loss) $1,470 $(606 ) $864 For the Three Months Ended January 31, 2019 (In thousands) Land Homebuilding Development Total Revenues $95,774 $1,005 $96,779 Cost of sales and expenses (89,312 ) (971 ) (90,283 ) Joint venture net income $6,462 $34 $6,496 Our share of net income $9,541 $17 $9,558 |
Note 20 - Fair Value of Finan_2
Note 20 - Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Jan. 31, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value at Fair Value at Fair Value January 31, October 31, (In thousands) Hierarchy 2020 2019 Mortgage loans held for sale (1) Level 2 $89,330 $166,007 Forward contracts Level 2 (183 ) (64 ) Total $89,147 $165,943 Interest rate lock commitments Level 3 $118 $42 Total $89,265 $165,985 |
Fair Value Option, Disclosures [Table Text Block] | Three Months Ended January 31, 2020 Mortgage Interest Rate Loans Held Lock Forward (In thousands) For Sale Commitments Contracts Fair value included in net loss all reflected in financial services revenues $2,862 $118 $(183 ) Three Months Ended January 31, 2019 Mortgage Interest Rate Loans Held Lock Forward (In thousands) For Sale Commitments Contracts Fair value included in net loss all reflected in financial services revenues $1,996 $225 $(385 ) |
Fair Value Measurements, Nonrecurring [Table Text Block] | Three Months Ended January 31, 2019 Pre- Fair Value Impairment (In thousands) Hierarchy Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $- $- $- Land and land options held for future development or sale Level 3 $6,302 $(43 ) $6,259 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis 2 [Table Text Block] | (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% Senior Secured Notes due July 15, 2022 $- $180,175 $- $180,175 10.5% Senior Secured Notes due July 15, 2024 - 49,133 - 49,133 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 - - 341,250 341,250 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 - - 273,852 273,852 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 - - 103,141 103,141 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 - - 118,877 118,877 Senior Notes: 13.5% Senior Notes due February 1, 2026 - - 79,022 79,022 5.0% Senior Notes due February 1, 2040 - 36,949 - 36,949 Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 22,049 22,049 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 - - 61,124 61,124 Total fair value $- $266,257 $999,315 $1,265,572 (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% Senior Secured Notes due July 15, 2022 $- $189,430 $- $189,430 10.5% Senior Secured Notes due July 15, 2024 - 166,999 - 166,999 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 - - 350,000 350,000 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 - - 282,322 282,322 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 - - 103,141 103,141 Senior Notes: 13.5% Senior Notes due February 1, 2026 - - 80,254 80,254 5.0% Senior Notes due February 1, 2040 - - 31,993 31,993 Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 106,499 106,499 Total fair value $- $356,429 $954,209 $1,310,638 |
Supplemental Disclosure of No_2
Supplemental Disclosure of Noncash Investing and Financing Activities (Details Textual) - USD ($) $ in Millions | Jan. 31, 2020 | Dec. 10, 2019 | Oct. 31, 2019 | Jan. 15, 2019 | Jan. 29, 2018 | Jul. 27, 2017 |
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Face Amount | $ 158.5 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | |||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | ||
Debt Instrument Exchanged, Face Amount | $ 23.2 | |||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Face Amount | $ 25 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | 10.50% | 10.50% | ||
Debt Instrument Exchanged, Face Amount | $ 141.7 | |||||
Senior Unsecured Term Loan Credit Facility [Member] | ||||||
Debt Instrument, Face Amount | $ 202.5 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||
Debt Instrument Exchanged, Face Amount | 163 | |||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||||||
Debt Instrument, Face Amount | $ 81.5 | |||||
Accounting Standards Update 2016-02 [Member] | ||||||
Operating Lease, Right-of-Use Asset | $ 23.3 | |||||
Operating Lease, Liability, Total | $ 24.4 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) | Mar. 29, 2019$ / shares | Jan. 31, 2020$ / shares | Oct. 31, 2019$ / shares |
Common Class A [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Common Class B [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Reverse Stock Split [Member] | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | ||
Reverse Stock Split [Member] | Common Class A [Member] | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | ||
Reverse Stock Split [Member] | Common Class B [Member] | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | ||
Consolidated Joint Venture [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 99.00% | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1.00% |
Note 2 - Stock Compensation (De
Note 2 - Stock Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Allocated Share Based Compensation, Income | $ 0.1 | |
Share-based Payment Arrangement, Expense | 0.6 | $ 0.6 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Payment Arrangement, Expense | $ 0.2 | $ 0.1 |
Note 3 - Interest (Details Text
Note 3 - Interest (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 25,003 | $ 22,273 |
Qualifying Assets Not Exceeding Debt [Member] | |||
Real Estate Inventory Expense Not Eligible for Capitalization | 14,900 | 17,600 | |
Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member] | |||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 10,100 | $ 4,700 | |
[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: Three Months Ended January 31, (In thousands) 2020 2019 Other interest expensed $25,003 $22,273 Interest paid by our mortgage and finance subsidiaries 770 689 (Increase) decrease in accrued interest (11,818 ) 17,477 Cash paid for interest, net of capitalized interest $13,955 $40,439 | ||
[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 $14.9 million and $17.6 million for the three months ended January 31, 2020 and 2019, 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 $10.1 million and $4.7 million for the three months ended January 31, 2020 and 2019, respectively. |
Note 3 - Interest - Interest Co
Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | ||
Interest capitalized at beginning of period | $ 71,264 | $ 68,117 | |
Plus interest incurred(1) | [1] | 44,334 | 38,853 |
Less cost of sales interest expensed | 18,136 | 10,242 | |
Less other interest expensed(2)(3) | [2],[3] | 25,003 | 22,273 |
Less interest contributed to unconsolidated joint venture(4) | [4] | 4,580 | |
Interest capitalized at end of period(5) | [5] | $ 67,879 | $ 74,455 |
[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: Three Months Ended January 31, (In thousands) 2020 2019 Other interest expensed $25,003 $22,273 Interest paid by our mortgage and finance subsidiaries 770 689 (Increase) decrease in accrued interest (11,818 ) 17,477 Cash paid for interest, net of capitalized interest $13,955 $40,439 | ||
[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 $14.9 million and $17.6 million for the three months ended January 31, 2020 and 2019, 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 $10.1 million and $4.7 million for the three months ended January 31, 2020 and 2019, respectively. | ||
[4] | Represents capitalized interest which was included as part of the assets contributed to the joint venture the company entered into in December 2019, as discussed in Note 18. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction. | ||
[5] | Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Note 3 - Interest - Cash Paid f
Note 3 - Interest - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | ||
Other interest expensed | [1],[2] | $ 25,003 | $ 22,273 |
Interest paid by our mortgage and finance subsidiaries | 770 | 689 | |
(Increase) decrease in accrued interest | (11,818) | 17,477 | |
Cash paid for interest, net of capitalized interest | $ 13,955 | $ 40,439 | |
[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: Three Months Ended January 31, (In thousands) 2020 2019 Other interest expensed $25,003 $22,273 Interest paid by our mortgage and finance subsidiaries 770 689 (Increase) decrease in accrued interest (11,818 ) 17,477 Cash paid for interest, net of capitalized interest $13,955 $40,439 | ||
[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 $14.9 million and $17.6 million for the three months ended January 31, 2020 and 2019, 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 $10.1 million and $4.7 million for the three months ended January 31, 2020 and 2019, respectively. |
Note 4 - Reduction of Invento_2
Note 4 - Reduction of Inventory to Fair Value (Details Textual) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2019USD ($) | |
Number of Communities Evaluated for Impairment | 383 | 397 | |
Number of Communities Performed Detailed Impairment Calculations | 1 | ||
Carrying Value of Communities Tested for Impairment | $ 600 | ||
Impairment of Real Estate | 0 | $ 100 | |
Homebuilding [Member] | |||
Impairment of Real Estate | 0 | $ 100 | |
Number of Communities Impaired | 1 | ||
PreImpairment Value | $ 6,300 | ||
Land Option Write Offs | $ 2,800 | $ 700 | |
Number of Walk Away Lots | 1,285 | 1,490 | |
Number of Communities Mothballed During the Period | 0 | ||
Number of Mothballed Communities Reactivated | 1 | ||
Number of Communities Mothballed | 13 | 13 | |
Inventory Real Estate Mothballed Communities | $ 13,800 | $ 13,800 | |
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges | 138,100 | $ 138,100 | |
Liabilities from Inventory Real Estate Not Owned | 152,235 | $ 141,033 | |
Homebuilding [Member] | Model Sale Leaseback Financing Arrangements [Member] | |||
Inventory Real Estate, Other Options | 48,500 | 54,200 | |
Liabilities from Inventory Real Estate Not Owned | 46,300 | 51,200 | |
Homebuilding [Member] | Land Banking Arrangement [Member] | |||
Inventory Real Estate, Other Options | 156,700 | 136,100 | |
Liabilities from Inventory Real Estate Not Owned | $ 105,900 | $ 89,800 | |
Homebuilding [Member] | Measurement Input, Discount Rate [Member] | |||
Inventory, Measurement Input | 0 |
Note 5 - Variable Interest En_2
Note 5 - Variable Interest Entities (Details Textual) $ in Millions | Jan. 31, 2020USD ($) |
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 74.3 |
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 1,300 |
Note 6 - Warranty Costs (Detail
Note 6 - Warranty Costs (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Cash Received from Subcontractors for Owner Controlled Insurance Program | $ 1,300 | $ 1,200 |
General Liability Insurance Deductible | 20,000 | 20,000 |
Bodily Injury Insurance Deductible | 250 | 250 |
Bodily Injury Insurance Limit | 5,000 | 5,000 |
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims | 20,000 | 20,000 |
Payments by Insurance Companies for Claims | $ 100 | $ 100 |
Note 6 - Warranty Costs - Warra
Note 6 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Balance, beginning of period | $ 89,371 | $ 95,064 |
Charges incurred during the period | (3,665) | (6,091) |
Changes to pre-existing reserves | 355 | 251 |
Balance, end of period | 89,905 | 93,410 |
Selling, General and Administrative Expenses [Member] | ||
Additions | 1,941 | 2,158 |
Cost of Sales [Member] | ||
Additions | $ 1,903 | $ 2,028 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Millions | May 02, 2018 | Jan. 31, 2020 |
EPA Case Involving a Housing Redevelopment Project in Newark, New Jersey [Member] | ||
Loss Contingency, Percentage of Plaintiff's Costs for Which Reimbursement is Demanded | 100.00% | |
Loss Contingency, Damages Sought, Value | $ 2.7 | |
Great Notch Condominium Claims[Member] | ||
Loss Contingency, Damages Sought, Value | $ 119.5 |
Note 8 - Cash and Cash Equiva_2
Note 8 - Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's Deposits (Details Textual) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2019 |
Cash Equivalents, at Carrying Value, Total | $ 64,400 | $ 143,100 | |
Mortgage Warehouse Lines of Credit [Member] | |||
Restricted Cash and Cash Equivalents, Total | 2,300 | 2,000 | |
Homebuilding [Member] | |||
Restricted Cash and Cash Equivalents, Total | 19,878 | 20,905 | $ 12,827 |
Financial Services [Member] | |||
Restricted Cash and Cash Equivalents, Total | 22,493 | 24,800 | $ 22,715 |
Financial Services [Member] | Customer Deposits [Member] | |||
Restricted Cash and Cash Equivalents, Total | $ 20,200 | $ 22,800 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) - Office Leases [Member] | Jan. 31, 2020 |
Minimum [Member] | |
Lessee, Operating Lease, Term of Contract | 3 years |
Maximum [Member] | |
Lessee, Operating Lease, Term of Contract | 5 years |
Note 9 - Leases - Lease Cost (D
Note 9 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Nov. 01, 2019 | |
Operating lease cost | $ 2,591 | |
Cash payments on lease liabilities | $ 2,316 | |
Weighted-average remaining lease term (in years) (Year) | 3 years 255 days | |
Weighted-average discount rate (incremental borrowing rate) | 9.60% | |
Prepaid Expenses and Other Current Assets [Member] | ||
ROU assets | $ 22,267 | $ 23,300 |
Accounts Payable and Accrued Liabilities [Member] | ||
Lease liabilities | $ 23,306 | $ 24,400 |
Note 9 - Leases - Maturities of
Note 9 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Nov. 01, 2019 |
2020 (excluding the three months ended January 31, 2020) | $ 6,817 | |
2021 | 7,894 | |
2022 | 6,725 | |
2023 | 3,447 | |
2024 | 1,128 | |
Thereafter | 1,791 | |
Total payments | 27,802 | |
Less: imputed interest | (4,496) | |
Accounts Payable and Accrued Liabilities [Member] | ||
Operating Lease, Liability, Total | $ 23,306 | $ 24,400 |
Note 10 - Mortgage Loans Held_3
Note 10 - Mortgage Loans Held for Sale (Details Textual) $ in Millions | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jan. 31, 2019 |
Loans Pledged as Collateral | $ 74.4 | $ 143.2 | |
Number of Loans Reserved For | 21 | 20 |
Note 10 - Mortgage Loans Held_4
Note 10 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Loan origination reserves, beginning of period | $ 1,268 | $ 2,563 |
Provisions for losses during the period | 40 | 41 |
Adjustments to pre-existing provisions for losses from changes in estimates | 10 | |
Payments/Settlements | (1,350) | |
Loan origination reserves, end of period | $ 1,308 | $ 1,264 |
Note 11 - Mortgages (Details Te
Note 11 - Mortgages (Details Textual) - USD ($) $ in Thousands | Feb. 28, 2020 | Jan. 22, 2020 | Dec. 13, 2019 | Jan. 31, 2020 | Oct. 31, 2019 |
JP Morgan Chase Bank [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||||
Warehouse Agreement Borrowings, Total | $ 26,700 | $ 47,100 | |||
JP Morgan Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument Variable Rate Basis Adjusted London Interbank Offered Rate LIBOR | 1.66% | ||||
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 | 2.625% | ||||
Customers Bank [Member] | |||||
Warehouse Agreement Borrowings, Total | $ 23,000 | 47,600 | |||
Customers Bank [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||||
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | ||||
Customers Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.75% | ||||
Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | Homebuilding [Member] | |||||
Secured Debt, Total | 205,805 | 203,585 | |||
Debt Instrument, Collateral Amount | $ 422,200 | $ 410,200 | |||
Debt, Weighted Average Interest Rate | 8.20% | 8.30% | |||
Comerica Master Repurchase Agreement [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||||
Warehouse Agreement Borrowings, Total | $ 23,300 | $ 45,500 | |||
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument Variable Rate Basis Floor Rate | 0.25% | ||||
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.875% | ||||
Comerica Master Repurchase Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% |
Note 12 - Senior Notes and Cr_3
Note 12 - Senior Notes and Credit Facilities (Details Textual) $ / shares in Units, $ in Thousands | Dec. 10, 2019USD ($)$ / shares | Jan. 15, 2019USD ($) | Feb. 01, 2018USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2019USD ($) | Jan. 29, 2018USD ($) | Jul. 27, 2017 |
Debt Covenant Fixed Charge Coverage Ratio Minimum | 2 | |||||||
Secured Debt Leverage Ratio | 4 | |||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 9,456 | |||||||
Senior Secured Notes [Member] | ||||||||
Long-term Debt, Gross | 1,159,490 | $ 1,165,848 | ||||||
Proceeds from Secured Notes Payable | $ 21,348 | |||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Cash and Cash Equivalents Collateral [Member] | ||||||||
Debt Instrument, Collateral Amount | 87,800 | |||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Restricted Cash [Member] | ||||||||
Debt Instrument, Collateral Amount | 18,500 | |||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Real Property [Member] | ||||||||
Debt Instrument, Collateral Amount | 446,500 | |||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Equity Interests in Joint Venture Holding Companies Collateral [Member] | ||||||||
Debt Instrument, Collateral Amount | $ 200,300 | |||||||
Series A Preferred Stock [Member] | ||||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | |||||||
Senior Secured Revolving Credit Facility [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | $ 125,000 | ||||||
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | ||||||||
Letters of Credit Outstanding, Amount | 17,800 | 19,200 | ||||||
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | Restricted Cash [Member] | ||||||||
Debt Instrument, Collateral Amount | 18,500 | $ 19,900 | ||||||
The 8.0% Senior Notes Due 2027 [Member] | ||||||||
Debt Instrument, Face Amount | $ 170,200 | $ 26,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||
The 8.0% Senior Notes Due 2027 [Member] | K. Hovnanian at Sunrise Trail III, LLC [Member] | ||||||||
Repayments of Senior Debt, Total | $ 26,500 | |||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period One [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 110.00% | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 105.00% | |||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | |||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument, Face Amount | $ 158,500 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | |||||
Long-term Debt, Gross | $ 158,502 | |||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | ||||
Debt Instrument Exchanged, Face Amount | $ 23,200 | |||||||
Long-term Debt, Gross | $ 195,842 | $ 218,994 | ||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 105.00% | |||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | |||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument, Face Amount | $ 25,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | 10.50% | 10.50% | ||||
Debt Instrument Exchanged, Face Amount | $ 141,700 | |||||||
Long-term Debt, Gross | $ 69,683 | $ 211,391 | ||||||
Proceeds from Secured Notes Payable | $ 21,300 | |||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 110.50% | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 105.25% | |||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.625% | |||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
Senior Unsecured Term Loan Credit Facility [Member] | ||||||||
Debt Instrument, Face Amount | $ 202,500 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||
Debt Instrument Exchanged, Face Amount | 163,000 | |||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||||||||
Debt Instrument, Face Amount | $ 81,500 | |||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 105.00% | |||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | |||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
Second Lien Notes [Member] | ||||||||
Long-term Debt, Gross | $ 164,900 | |||||||
Secured Term Loan Facility [Member] | ||||||||
Long-term Debt, Gross | 148,800 | |||||||
Second Lien Notes and Unsecured Term Loan Credit Facility [Member] | ||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 9,500 | |||||||
Gain (Loss) on Extinguishment of Debt, Per Share, Excluding Taxes | $ / shares | $ 0.65 | |||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument, Face Amount | $ 350,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | ||||||
Long-term Debt, Gross | $ 350,000 | $ 350,000 | ||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 107.75% | |||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 103.875% | |||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 101.937% | |||||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument, Face Amount | $ 282,300 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | ||||||
Long-term Debt, Gross | $ 282,322 | $ 282,322 | ||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 110.50% | |||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 105.25% | |||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.625% | |||||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.0% 2022 Senior Secured Notes Exchanged for 1.125 Lien Notes [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument Exchanged, Face Amount | $ 221,000 | |||||||
The 10.5% 2024 Senior Secured Notes Exchanged for 1.125 Lien Notes [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument Exchanged, Face Amount | 114,000 | |||||||
The 10.5% 2024 Notes Exchanged for 11.25% Senior Secured 1.5 Lien Notes [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument Exchanged, Face Amount | $ 99,600 | |||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | ||||||
Debt Instrument Exchanged, Face Amount | $ 103,100 | |||||||
Long-term Debt, Gross | $ 103,141 | $ 103,141 | ||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||
The 13.5% Senior Notes Due 2026 [Member] | ||||||||
Debt Instrument, Face Amount | $ 90,600 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | |||||||
The 13.5% Senior Notes Due 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The 5.0% Senior Notes due 2040 [Member] | ||||||||
Debt Instrument, Face Amount | $ 90,100 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||
The 5.0% Senior Notes due 2040 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.50% | |||||||
The 5.0% Senior Notes due 2040 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
The Purchased 8% Notes [Member] | K. Hovnanian at Sunrise Trail III, LLC [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||
Debt Instrument, Repurchased Face Amount | $ 26,000 |
Note 12 - Senior Notes and Cr_4
Note 12 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 | |
Net discounts and premiums | $ (23,503) | $ 49,145 | |
Net debt issuance costs | (24,552) | (19,970) | |
Total Senior Notes and Credit Facilities, net of discount, premium and debt issuance costs | 1,460,200 | 1,479,990 | |
Senior Secured Notes [Member] | |||
Long-term Debt, Gross | 1,159,490 | 1,165,848 | |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | |||
Long-term Debt, Gross | 195,842 | 218,994 | |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | |||
Long-term Debt, Gross | 69,683 | 211,391 | |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | |||
Long-term Debt, Gross | 350,000 | 350,000 | |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | |||
Long-term Debt, Gross | 282,322 | 282,322 | |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | |||
Long-term Debt, Gross | 103,141 | 103,141 | |
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | |||
Long-term Debt, Gross | 158,502 | ||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||
Long-term Debt, Gross | 180,710 | 180,710 | |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2027 [Member] | |||
Long-term Debt, Gross | [1] | ||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 13.5% Senior Notes Due 2026 [Member] | |||
Long-term Debt, Gross | 90,590 | 90,590 | |
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 5.0% Senior Notes due 2040 [Member] | |||
Long-term Debt, Gross | 90,120 | 90,120 | |
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | |||
Long-term Debt, Gross | 39,551 | 202,547 | |
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | |||
Long-term Debt, Gross | 81,498 | ||
Senior Secured Revolving Credit Facility [Member] | |||
Long-term Debt, Gross | [2] | ||
[1] | $26.0 million of 8.0% Senior Notes are owned by a wholly-owned consolidated subsidiary of HEI. Therefore, in accordance with GAAP, such notes are not reflected on the Condensed Consolidated Balance Sheets of HEI. On November 1, 2019, the maturity of the 8.0% Senior Notes was extended to November 1, 2027. | ||
[2] | At January 31, 2020, provides for up to $125.0 million in aggregate amount of senior secured first lien revolving loans. Availability thereunder will terminate on December 28, 2022. |
Note 12 - Senior Notes and Cr_5
Note 12 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) (Parentheticals) | 3 Months Ended | 12 Months Ended | |||||
Jan. 31, 2020 | Oct. 31, 2019 | Dec. 10, 2019 | Jan. 15, 2019 | Feb. 01, 2018 | Jul. 27, 2017 | ||
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | |||||||
Debt Instrument, Maturity Date | Feb. 1, 2027 | Feb. 1, 2027 | |||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |||
Debt Instrument, Maturity Date | Jul. 15, 2022 | Jul. 15, 2022 | |||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | 10.50% | 10.50% | |||
Debt Instrument, Maturity Date | Jul. 15, 2024 | Jul. 15, 2024 | |||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | |||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | |||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | |||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | 10.00% | ||||
Debt Instrument, Maturity Date | Nov. 15, 2025 | Nov. 15, 2025 | |||||
The 8.0% Senior Notes Due 2027 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
The 8.0% Senior Notes Due 2027 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 8.00% | 8.00% | ||||
Debt Instrument, Maturity Date | [1] | Nov. 1, 2027 | Nov. 1, 2027 | ||||
The 13.5% Senior Notes Due 2026 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||||
The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | 13.50% | |||||
Debt Instrument, Maturity Date | Feb. 1, 2040 | Feb. 1, 2040 | |||||
The 5.0% Senior Notes due 2040 [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||
The 5.0% Senior Notes due 2040 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Debt Instrument, Maturity Date | Feb. 1, 2040 | Feb. 1, 2040 | |||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Senior Secured Term Loan [Member] | |||||||
Debt Instrument, Maturity Date | Jan. 31, 2028 | Jan. 31, 2028 | |||||
[1] | $26.0 million of 8.0% Senior Notes are owned by a wholly-owned consolidated subsidiary of HEI. Therefore, in accordance with GAAP, such notes are not reflected on the Condensed Consolidated Balance Sheets of HEI. On November 1, 2019, the maturity of the 8.0% Senior Notes was extended to November 1, 2027. |
Note 13 - Per Share Calculati_2
Note 13 - Per Share Calculation (Details Textual) - shares shares in Millions | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Non Vested Stock and Outstanding Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.1 |
Out of the Money Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.2 | 0.3 |
Note 14 - Preferred Stock (Deta
Note 14 - Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jul. 12, 2005 | Jan. 31, 2020 | Jan. 31, 2019 | Oct. 31, 2019 |
Preferred Stock, Shares Issued, Total | 5,600 | 5,600 | ||
Preferred Class A [Member] | ||||
Preferred Stock, Shares Issued, Total | 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, Total | $ 0 | $ 0 |
Note 15 - Common Stock (Details
Note 15 - Common Stock (Details Textual) shares in Thousands | Mar. 29, 2019$ / sharesshares | Jan. 31, 2020$ / sharesshares | Oct. 31, 2019$ / shares | Jan. 11, 2018 | Aug. 15, 2008 | Jul. 03, 2001shares |
Common Stock Dividends Percent of Increase from Class A to Class B | 110.00% | |||||
Conversion of Stock From Class B to Class A Conversion Ratio | 1 | 1 | ||||
Shareholder Ownership Percentage of Increase | 50.00% | |||||
Minimum [Member] | ||||||
Shareholder Ownership Percentage | 5.00% | |||||
Reverse Stock Split [Member] | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | |||||
Number of Fractional Shares Issued | 0 | |||||
Common Class A [Member] | ||||||
Common Stock Voting Rights Votes per Share Number | 1 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Shareholder Ownership Percentage | 4.90% | |||||
Number of Rights | 1 | |||||
Shareholders Pre Existing Ownership Percentage | 5.00% | |||||
Shareholders Current Ownership Percentage | 5.00% | |||||
Shareholders Ownership Percentage on Transfers | 5.00% | |||||
Shareholders Ownership Percentage Threshold | 5.00% | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 200 | |||||
Stock Repurchased During Period, Shares | 0 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 22 | |||||
Common Class A [Member] | Reverse Stock Split [Member] | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 | |||||
Common Class B [Member] | ||||||
Common Stock Voting Rights Votes per Share Number | 10 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common Class B [Member] | Reverse Stock Split [Member] | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Expense (Benefit), Total | $ 1,712 | $ 346 |
Deferred Tax Assets, Valuation Allowance, Total | 596,000 | |
Domestic Tax Authority [Member] | ||
Income Tax Expense (Benefit), Total | ||
Domestic Tax Authority [Member] | Between 2028 and 2037 [Member] | ||
Operating Loss Carryforwards, Total | 1,500,000 | |
Domestic Tax Authority [Member] | Indefinite Tax Period [Member] | ||
Operating Loss Carryforwards, Total | 32,100 | |
State and Local Jurisdiction [Member] | ||
Income Tax Expense (Benefit), Total | 1,712 | $ 346 |
Operating Loss Carryforwards, Total | 2,500,000 | |
State and Local Jurisdiction [Member] | Indefinite Tax Period [Member] | ||
Operating Loss Carryforwards, Total | 74,400 | |
State and Local Jurisdiction [Member] | Between 2020 and 2024 [Member] | ||
Operating Loss Carryforwards, Total | 211,400 | |
State and Local Jurisdiction [Member] | Between 2025 and 2029 [Member] | ||
Operating Loss Carryforwards, Total | 1,200,000 | |
State and Local Jurisdiction [Member] | Between 2030 and 2034 [Member] | ||
Operating Loss Carryforwards, Total | 760,100 | |
State and Local Jurisdiction [Member] | Between 2035 and 2039 [Member] | ||
Operating Loss Carryforwards, Total | $ 277,600 |
Note 17 - Operating and Repor_3
Note 17 - Operating and Reporting Segments (Details Textual) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 25,003 | $ 22,273 |
Gain (Loss) on Extinguishment of Debt, Total | 9,456 | ||
Qualifying Assets Not Exceeding Debt [Member] | |||
Real Estate Inventory Expense Not Eligible for Capitalization | 14,900 | 17,600 | |
Corporate, Non-Segment [Member] | |||
General and Administrative Expense, Total | 19,700 | 17,700 | |
Gain (Loss) on Extinguishment of Debt, Total | 9,500 | ||
Other Nonoperating Income (Expense), Total | (900) | (800) | |
Corporate, Non-Segment [Member] | Qualifying Assets Not Exceeding Debt [Member] | |||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 14,900 | $ 17,500 | |
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: Three Months Ended January 31, (In thousands) 2020 2019 Other interest expensed $25,003 $22,273 Interest paid by our mortgage and finance subsidiaries 770 689 (Increase) decrease in accrued interest (11,818 ) 17,477 Cash paid for interest, net of capitalized interest $13,955 $40,439 | ||
[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 $14.9 million and $17.6 million for the three months ended January 31, 2020 and 2019, 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 $10.1 million and $4.7 million for the three months ended January 31, 2020 and 2019, respectively. |
Note 17 - Operating and Repor_4
Note 17 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | ||
Revenues, Total | $ 494,056 | $ 380,594 | |
Income (loss) before income taxes | (7,436) | (17,106) | |
Corporate, Non-Segment [Member] | |||
Revenues, Total | 269 | 603 | |
Income (loss) before income taxes | [1] | (24,172) | (34,425) |
Homebuilding [Member] | |||
Revenues, Total | 480,042 | 370,986 | |
Homebuilding [Member] | Operating Segments [Member] | |||
Revenues, Total | 479,773 | 370,383 | |
Income (loss) before income taxes | 12,276 | 16,185 | |
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | |||
Revenues, Total | 45,276 | 19,941 | |
Income (loss) before income taxes | 5,741 | 5,879 | |
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | |||
Revenues, Total | 87,759 | 53,430 | |
Income (loss) before income taxes | 4,058 | (7) | |
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | |||
Revenues, Total | 46,444 | 44,921 | |
Income (loss) before income taxes | (3,443) | (849) | |
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | |||
Revenues, Total | 36,774 | 43,991 | |
Income (loss) before income taxes | (4,311) | (2,929) | |
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | |||
Revenues, Total | 163,899 | 118,199 | |
Income (loss) before income taxes | 8,620 | 2,386 | |
Homebuilding [Member] | West [Member] | Operating Segments [Member] | |||
Revenues, Total | 99,621 | 89,901 | |
Income (loss) before income taxes | 1,611 | 11,705 | |
Financial Services [Member] | |||
Revenues, Total | 14,014 | 9,608 | |
Financial Services [Member] | Operating Segments [Member] | |||
Revenues, Total | 14,014 | 9,608 | |
Income (loss) before income taxes | $ 4,460 | $ 1,134 | |
[1] | Corporate and unallocated for the three months ended January 31, 2020 included corporate general and administrative costs of $19.7 million, interest expense of $14.9 million (a component of Other interest on our Condensed Consolidated Statements of Operations), $(9.5) million of gain on extinguishment of debt and $(0.9) million of other income and expenses primarily related to interest income and stock compensation. Corporate and unallocated for the three months ended January 31, 2019 included corporate general and administrative costs of $17.7 million, interest expense of $17.5 million (a component of Other interest on our Condensed Consolidated Statements of Operations) and $(0.8) million of other income and expenses primarily related to interest income, gain on the sale of our corporate headquarters building and stock compensation. |
Note 17 - Operating and Repor_5
Note 17 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Assets | $ 1,790,003 | $ 1,881,424 |
Corporate, Non-Segment [Member] | ||
Assets | 153,947 | 186,046 |
Homebuilding [Member] | ||
Assets | 1,672,446 | 1,682,149 |
Homebuilding [Member] | Operating Segments [Member] | ||
Assets | 1,518,499 | 1,496,103 |
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | ||
Assets | 151,859 | 163,342 |
Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member] | ||
Assets | 267,198 | 264,894 |
Homebuilding [Member] | Midwest [Member] | Operating Segments [Member] | ||
Assets | 122,317 | 117,242 |
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | ||
Assets | 276,643 | 281,654 |
Homebuilding [Member] | Southwest [Member] | Operating Segments [Member] | ||
Assets | 364,239 | 357,052 |
Homebuilding [Member] | West [Member] | Operating Segments [Member] | ||
Assets | 336,243 | 311,919 |
Financial Services [Member] | ||
Assets | 117,557 | 199,275 |
Financial Services [Member] | Operating Segments [Member] | ||
Assets | $ 117,557 | $ 199,275 |
Note 18 - Investments in Unco_3
Note 18 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2019USD ($) | |
Number of Owned Communities Transferred to the Joint Venture | 8 | ||
Number of Owned Active Communities Transferred to the Joint Venture | 4 | ||
Proceeds from Transfer of Land to Joint Venture | $ 29,800 | ||
Equity Method Investment, Other than Temporary Impairment | 0 | $ 0 | |
Revenues, Total | $ 494,056 | 380,594 | |
Joint Venture Total Debt to Capitalization Ratio | 32.00% | ||
Homebuilding [Member] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | $ 135,331 | $ 127,038 | |
Revenues, Total | 480,042 | 370,986 | |
Homebuilding [Member] | Management Fees [Member] | |||
Revenues, Total | 3,700 | $ 3,400 | |
Corporate Joint Venture [Member] | |||
Advances to Affiliate | $ 200 | $ 1,400 | |
Joint Venture Total Debt to Capitalization Ratio | 32.00% | 40.00% |
Note 18 - Investments in Unco_4
Note 18 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Oct. 31, 2019 | |
Debt to capitalization ratio | 32.00% | ||
Our share of net income (loss) | $ 1,540 | $ 9,562 | |
Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 73,405 | $ 110,723 | |
Inventories | 453,759 | 403,842 | |
Other assets | 25,538 | 25,129 | |
Total assets | 552,702 | 539,694 | |
Accounts payable and accrued liabilities | 92,298 | 71,889 | |
Notes payable | 145,764 | 186,882 | |
Total liabilities | 238,062 | 258,771 | |
Hovnanian Enterprises, Inc. | 135,158 | 125,638 | |
Others | 179,482 | 155,285 | |
Total equity | 314,640 | 280,923 | |
Total liabilities and equity | $ 552,702 | $ 539,694 | |
Debt to capitalization ratio | 32.00% | 40.00% | |
Revenues | $ 90,704 | 96,779 | |
Cost of sales and expenses | (93,504) | (90,283) | |
Joint venture net loss | (2,800) | 6,496 | |
Our share of net income (loss) | 864 | 9,558 | |
Homebuilding Joint Venture [Member] | Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 71,647 | $ 108,520 | |
Inventories | 450,493 | 397,804 | |
Other assets | 25,079 | 24,896 | |
Total assets | 547,219 | 531,220 | |
Accounts payable and accrued liabilities | 91,851 | 71,297 | |
Notes payable | 145,764 | 186,882 | |
Total liabilities | 237,615 | 258,179 | |
Hovnanian Enterprises, Inc. | 131,017 | 120,891 | |
Others | 178,587 | 152,150 | |
Total equity | 309,604 | 273,041 | |
Total liabilities and equity | $ 547,219 | $ 531,220 | |
Debt to capitalization ratio | 32.00% | 41.00% | |
Revenues | $ 86,964 | 95,774 | |
Cost of sales and expenses | (88,551) | (89,312) | |
Joint venture net loss | (1,587) | 6,462 | |
Our share of net income (loss) | 1,470 | 9,541 | |
Land Development Joint Venture [Member] | Corporate Joint Venture [Member] | |||
Cash and cash equivalents | 1,758 | $ 2,203 | |
Inventories | 3,266 | 6,038 | |
Other assets | 459 | 233 | |
Total assets | 5,483 | 8,474 | |
Accounts payable and accrued liabilities | 447 | 592 | |
Notes payable | |||
Total liabilities | 447 | 592 | |
Hovnanian Enterprises, Inc. | 4,141 | 4,747 | |
Others | 895 | 3,135 | |
Total equity | 5,036 | 7,882 | |
Total liabilities and equity | $ 5,483 | $ 8,474 | |
Debt to capitalization ratio | 0.00% | 0.00% | |
Revenues | $ 3,740 | 1,005 | |
Cost of sales and expenses | (4,953) | (971) | |
Joint venture net loss | (1,213) | 34 | |
Our share of net income (loss) | $ (606) | $ 17 |
Note 19 - Recent Accounting P_2
Note 19 - Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands | Jan. 31, 2020 | Nov. 01, 2019 |
Prepaid Expenses and Other Current Assets [Member] | ||
Operating Lease, Right-of-Use Asset | $ 22,267 | $ 23,300 |
Accounts Payable and Accrued Liabilities [Member] | ||
Operating Lease, Liability, Total | $ 23,306 | $ 24,400 |
Note 20 - Fair Value of Finan_3
Note 20 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Oct. 31, 2019 | |
Loans Held for Sale Mortgages Unpaid Principal | $ 86,500 | $ 161,100 | |
Other Commitment, Total | 11,500 | ||
Impairment of Real Estate | 0 | $ 100 | |
Senior Secured Revolving Credit Facility [Member] | |||
Long-term Line of Credit, Total | 0 | $ 0 | |
Fair Value, Nonrecurring [Member] | |||
Assets, Fair Value Disclosure | 0 | ||
Loan Origination Commitments [Member] | |||
Loan Applications in Process | $ 496,600 | ||
Loan Origination Commitments [Member] | Maximum [Member] | |||
Number of Days in Committment | 60 days | ||
Interest Rate Committed Loan Applications [Member] | |||
Interest Rate Committed Loan Applications | $ 47,400 |
Note 20 - Fair Value of Finan_4
Note 20 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 | |
Total | $ 89,265 | $ 165,985 | |
Fair Value, Inputs, Level 2 [Member] | |||
Mortgage loans held for sale | [1] | 89,330 | 166,007 |
Total | 89,147 | 165,943 | |
Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member] | |||
Derivative Fair Value | (183) | (64) | |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments [Member] | |||
Derivative Fair Value | $ 118 | $ 42 | |
[1] | The aggregate unpaid principal balance was $86.5 million and $161.1 million at January 31, 2020 and October 31, 2019, respectively. |
Note 20 - Fair Value of Finan_5
Note 20 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Loans Held for Sale [Member] | ||
Fair value included in net loss all reflected in financial services revenues | $ 2,862 | $ 1,996 |
Interest Rate Lock Commitments [Member] | ||
Fair value included in net loss all reflected in financial services revenues | 118 | 225 |
Forward Contracts [Member] | ||
Fair value included in net loss all reflected in financial services revenues | $ (183) | $ (385) |
Note 20 - Fair Value of Finan_6
Note 20 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Total Losses | $ 0 | $ (100) |
Sold and Unsold Homes and Lots Under Development [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Pre-Impairment Amount | ||
Total Losses | ||
Fair Value of Inventory | ||
Land and Land Options Held for Future Development or Sale [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Pre-Impairment Amount | 6,302 | |
Total Losses | (43) | |
Fair Value of Inventory | $ 6,259 |
Note 20 - Fair Value of Finan_7
Note 20 - Fair Value of Financial Instruments - Fair Value of Notes (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 |
Notes, Fair Value | $ 1,265,572 | $ 1,310,638 |
Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 266,257 | 356,429 |
Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 999,315 | 954,209 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | ||
Notes, Fair Value | 180,175 | 189,430 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 180,175 | 189,430 |
Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | ||
Notes, Fair Value | 49,133 | 166,999 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 49,133 | 166,999 |
Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 341,250 | 350,000 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 341,250 | 350,000 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 273,852 | 282,322 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 273,852 | 282,322 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 103,141 | 103,141 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 103,141 | 103,141 |
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | ||
Notes, Fair Value | 118,877 | |
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | ||
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 118,877 | |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | ||
Notes, Fair Value | 79,022 | 80,254 |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | ||
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 79,022 | 80,254 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | ||
Notes, Fair Value | 36,949 | 31,993 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 36,949 | |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 31,993 | |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | ||
Notes, Fair Value | 22,049 | 106,499 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | ||
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 22,049 | $ 106,499 |
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||
Notes, Fair Value | 61,124 | |
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | ||
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | ||
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | $ 61,124 |
Note 20 - Fair Value of Finan_8
Note 20 - Fair Value of Financial Instruments - Fair Value of Notes (Details) (Parentheticals) | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2020 | Oct. 31, 2019 | Dec. 10, 2019 | Jan. 15, 2019 | Jul. 27, 2017 | |
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | |||||
Debt Instrument, Stated Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | |
Debt Instrument, Maturity Date | Jul. 15, 2022 | Jul. 15, 2022 | |||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | |||||
Debt Instrument, Stated Interest Rate | 10.50% | 10.50% | 10.50% | 10.50% | |
Debt Instrument, Maturity Date | Jul. 15, 2024 | Jul. 15, 2024 | |||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||
Debt Instrument, Stated Interest Rate | 7.75% | 7.75% | |||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||
Debt Instrument, Stated Interest Rate | 10.50% | 10.50% | |||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||
Debt Instrument, Stated Interest Rate | 11.25% | 11.25% | |||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | |||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | |||||
Debt Instrument, Stated Interest Rate | 10.00% | 10.00% | 10.00% | ||
Debt Instrument, Maturity Date | Nov. 15, 2025 | Nov. 15, 2025 | |||
The 13.5% 2026 Notes [Member] | Senior Notes [Member] | |||||
Debt Instrument, Stated Interest Rate | 13.50% | 13.50% | |||
Debt Instrument, Maturity Date | Feb. 1, 2026 | Feb. 1, 2026 | |||
The 5.0% 2040 Notes [Member] | Senior Notes [Member] | |||||
Debt Instrument, Stated Interest Rate | 5.00% | 5.00% | |||
Debt Instrument, Maturity Date | Feb. 1, 2040 | Feb. 1, 2040 | |||
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Unsecured Senior Term Loan [Member] | |||||
Debt Instrument, Maturity Date | Feb. 1, 2027 | Feb. 1, 2027 | |||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Senior Secured Term Loan [Member] | |||||
Debt Instrument, Maturity Date | Jan. 31, 2028 | Jan. 31, 2028 |
Note 21 - Transactions With R_2
Note 21 - Transactions With Related Parties (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Tavit Najarian [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 0.2 | $ 0.2 |