Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Dec. 13, 2022 | Apr. 30, 2022 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000357294 | ||
Entity Registrant Name | HOVNANIAN ENTERPRISES INC | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-8551 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-1851059 | ||
Entity Address, Address Line One | 90 Matawan Road, Fifth Floor | ||
Entity Address, City or Town | Matawan | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07747 | ||
City Area Code | 732 | ||
Local Phone Number | 747-7800 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 242,194,842 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | New York, New York | ||
Depository Shares [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th of a share of 7.625% Series A Preferred Stock | ||
Trading Symbol | HOVNP | ||
Security Exchange Name | NASDAQ | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 705,705 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock $0.01 par value per share | ||
Trading Symbol | HOV | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 5,258,507 | ||
Preferred Stock Purchase Rights [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights(1) | ||
Security Exchange Name | NYSE | ||
No Trading Symbol Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
ASSETS | ||
Investments in and advances to unconsolidated joint ventures | $ 74,940 | $ 60,897 |
Property and equipment, net | 25,819 | 18,736 |
Assets | 2,562,030 | 2,320,508 |
Assets | 2,562,030 | 2,320,508 |
Deferred tax assets, net | 344,793 | 425,678 |
LIABILITIES AND EQUITY | ||
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs) | 1,146,547 | 1,248,373 |
Liabilities | 2,178,979 | 2,145,124 |
Liabilities | 2,178,979 | 2,145,124 |
Income taxes payable | 3,167 | 3,851 |
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at October 31, 2022 and October 31, 2021 | 135,299 | 135,299 |
Paid in capital - common stock | 727,663 | 722,118 |
Accumulated deficit | (352,413) | (567,228) |
Treasury stock - at cost – 782,901 shares of Class A common stock at October 31, 2022 and 470,430 shares at October 31, 2021; 27,669 shares of Class B common stock at October 31, 2022 and October 31, 2021 | (127,582) | (115,360) |
Total Hovnanian Enterprises, Inc. stockholders’ equity | 383,036 | 174,897 |
Noncontrolling interest in consolidated joint ventures | 15 | 487 |
Total equity | 383,051 | 175,384 |
Total liabilities and equity | 2,562,030 | 2,320,508 |
Common Class A [Member] | ||
LIABILITIES AND EQUITY | ||
Common Stock | 62 | 61 |
Common Class B [Member] | ||
LIABILITIES AND EQUITY | ||
Common Stock | 7 | 7 |
Homebuilding [Member] | ||
ASSETS | ||
Cash and cash equivalents | 326,198 | 245,970 |
Restricted cash and cash equivalents | 13,382 | 16,089 |
Sold and unsold homes and lots under development | 1,058,183 | 1,019,541 |
Land and land options held for future development or sale | 152,406 | 135,992 |
Consolidated inventory not owned | 308,595 | 98,727 |
Total inventories | 1,519,184 | 1,254,260 |
Investments in and advances to unconsolidated joint ventures | 74,940 | 60,897 |
Receivables, deposits and notes, net | 37,837 | 39,934 |
Prepaid expenses and other assets | 63,884 | 56,186 |
Assets | 2,061,244 | 1,692,072 |
Assets | 2,061,244 | 1,692,072 |
LIABILITIES AND EQUITY | ||
Accounts payable and other liabilities | 439,952 | 426,381 |
Customers’ deposits | 74,020 | 68,295 |
Liabilities from inventory not owned, net of debt issuance costs | 202,492 | 62,762 |
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs) | 1,146,547 | 1,248,373 |
Accrued interest | 32,415 | 28,154 |
Liabilities | 2,040,231 | 1,959,054 |
Liabilities | 2,040,231 | 1,959,054 |
Homebuilding [Member] | Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | ||
LIABILITIES AND EQUITY | ||
Secured Debt, Total | 144,805 | 125,089 |
Financial Services [Member] | ||
ASSETS | ||
Cash and cash equivalents | 6,468 | 5,819 |
Restricted cash and cash equivalents | 36,142 | 43,518 |
Assets | 155,993 | 202,758 |
Assets | 155,993 | 202,758 |
LIABILITIES AND EQUITY | ||
Liabilities | 135,581 | 182,219 |
Liabilities | $ 135,581 | $ 182,219 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
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, shares authorized (in shares) | 16,000,000 | 16,000,000 |
Common stock, shares issued (in shares) | 6,159,886 | 6,066,164 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares held in Treasury (in shares) | 782,901 | 470,430 |
Common Class B [Member] | ||
Common stock, shares authorized (in shares) | 2,400,000 | 2,400,000 |
Common stock, shares issued (in shares) | 733,374 | 686,876 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares held in Treasury (in shares) | 27,669 | 27,669 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||
Revenues | $ 2,922,231 | $ 2,782,857 | $ 2,343,901 | |
Total expenses | 2,624,716 | 2,598,097 | 2,318,400 | |
Corporate general and administrative | 102,618 | 106,694 | 80,553 | |
Other interest expensed | [1],[2] | 47,343 | 77,716 | 103,801 |
Other expenses, net | 2,421 | 1,740 | 1,096 | |
(Loss) gain on extinguishment of debt, net | (6,795) | (3,748) | 13,337 | |
Income from unconsolidated joint ventures | 29,033 | 8,849 | 16,565 | |
Income before income taxes | 319,753 | 189,861 | 55,403 | |
Tax provision (benefit) | 94,263 | (417,956) | 4,475 | |
Net income | 225,490 | 607,817 | 50,928 | |
Less: preferred stock dividends | 10,675 | 0 | 0 | |
Net income available to common stockholders | $ 214,815 | $ 607,817 | $ 50,928 | |
Basic earnings per share (in dollars per share) | $ 30.31 | $ 87.50 | $ 7.48 | |
Weighted-average number of common shares outstanding basic (in shares) | 6,437 | 6,287 | 6,189 | |
Net income per common share (in dollars per share) | $ 29 | $ 85.86 | $ 7.03 | |
Weighted-average number of common shares outstanding (in shares) | 6,728 | 6,395 | 6,584 | |
State and Local Jurisdiction [Member] | ||||
Tax provision (benefit) | $ 34,199 | $ (82,348) | $ 4,475 | |
Domestic Tax Authority [Member] | ||||
Tax provision (benefit) | 60,064 | (335,608) | 0 | |
Homebuilding [Member] | ||||
Revenues | 2,860,691 | 2,701,165 | 2,271,739 | |
Cost of sales, excluding interest | 2,137,063 | 2,110,196 | 1,848,486 | |
Cost of sales interest | 85,240 | 84,100 | 74,330 | |
Inventory impairments and land option write-offs | 14,076 | 3,630 | 8,813 | |
Total cost of sales | 2,236,379 | 2,197,926 | 1,931,629 | |
Selling, general and administrative | 193,536 | 169,892 | 161,261 | |
Total expenses | 2,429,915 | 2,367,818 | 2,092,890 | |
Homebuilding [Member] | Sale of Homes [Member] | ||||
Revenues | 2,840,454 | 2,673,710 | 2,252,029 | |
Homebuilding [Member] | Land Sales and Other Revenues [Member] | ||||
Revenues | 20,237 | 27,455 | 19,710 | |
Financial Services [Member] | ||||
Revenues | 61,540 | 81,692 | 72,162 | |
Total expenses | $ 42,419 | $ 44,129 | $ 40,060 | |
[1]Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484[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 $28.6 million, $57.1 million and $61.9 million for the years ended October 31, 2022, 2021 and 2020, 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 as incurred. This component of other interest was $18.8 million, $20.6 million and $41.9 million for the years ended October 31, 2022, 2021 and 2020, respectively. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) $ in Thousands | Common Stock Outstanding [Member] Common Class A [Member] | Common Stock Outstanding [Member] Common Class B [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Oct. 31, 2019 | 5,503,297 | 622,694 | 5,600 | |||||
Balance at Oct. 31, 2019 | $ 60 | $ 7 | $ 135,299 | $ 715,504 | $ (1,225,973) | $ (115,360) | $ 687 | $ (489,776) |
Stock options, amortization and issuances (in shares) | ||||||||
Stock options, amortization and issuances | 387 | 387 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 14,310 | 1,796 | ||||||
Restricted stock amortization, issuances and forfeitures | 2,219 | 2,219 | ||||||
Conversion of Class B to Class A common stock (in shares) | 2,273 | (2,273) | ||||||
Conversion of Class B to Class A common stock | 0 | |||||||
Changes in noncontrolling interest in consolidated joint ventures | 148 | 148 | ||||||
Net income (loss) | 50,928 | $ 50,928 | ||||||
Share repurchases (in shares) | 0 | |||||||
Balance (in shares) at Oct. 31, 2020 | 5,519,880 | 622,217 | 5,600 | |||||
Balance at Oct. 31, 2020 | $ 60 | $ 7 | $ 135,299 | 718,110 | (1,175,045) | (115,360) | 835 | $ (436,094) |
Stock options, amortization and issuances (in shares) | 42,204 | 5,368 | ||||||
Stock options, amortization and issuances | (41) | (41) | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 33,564 | 31,708 | ||||||
Restricted stock amortization, issuances and forfeitures | $ 1 | 4,049 | 4,050 | |||||
Conversion of Class B to Class A common stock (in shares) | 86 | (86) | ||||||
Conversion of Class B to Class A common stock | 0 | |||||||
Changes in noncontrolling interest in consolidated joint ventures | (348) | (348) | ||||||
Net income (loss) | 607,817 | $ 607,817 | ||||||
Share repurchases (in shares) | 0 | |||||||
Balance (in shares) at Oct. 31, 2021 | 5,595,734 | 659,207 | 5,600 | |||||
Balance at Oct. 31, 2021 | $ 61 | $ 7 | $ 135,299 | 722,118 | (567,228) | (115,360) | 487 | $ 175,384 |
Stock options, amortization and issuances (in shares) | 2,316 | |||||||
Stock options, amortization and issuances | 120 | 120 | ||||||
Restricted stock amortization, issuances and forfeitures (in shares) | 91,263 | 46,641 | ||||||
Restricted stock amortization, issuances and forfeitures | $ 1 | 5,425 | 5,426 | |||||
Conversion of Class B to Class A common stock (in shares) | 143 | (143) | ||||||
Conversion of Class B to Class A common stock | 0 | |||||||
Changes in noncontrolling interest in consolidated joint ventures | (472) | (472) | ||||||
Net income (loss) | 225,490 | 225,490 | ||||||
Preferred dividend declared ($476.56 per share) | (10,675) | $ (10,675) | ||||||
Share repurchases (in shares) | (312,471) | 312,471 | ||||||
Share repurchases | (12,222) | $ (12,222) | ||||||
Balance (in shares) at Oct. 31, 2022 | 5,376,985 | 705,705 | 5,600 | |||||
Balance at Oct. 31, 2022 | $ 62 | $ 7 | $ 135,299 | $ 727,663 | $ (352,413) | $ (127,582) | $ 15 | $ 383,051 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Deficit) (Parentheticals) | 12 Months Ended |
Oct. 31, 2022 $ / shares | |
Dividend per share (in dollars per share) | $ 476.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 225,490 | $ 607,817 | $ 50,928 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 5,457 | 5,280 | 5,304 |
Stock-based compensation | 10,276 | 7,668 | 2,779 |
Amortization of debt discounts, premiums and deferred financing costs | 376 | 242 | 1,891 |
(Gain) loss on sale of property and assets | (34) | 92 | (81) |
Income from unconsolidated joint ventures | (29,033) | (8,849) | (16,565) |
Distributions of earnings from unconsolidated joint venture | 3,990 | 9,709 | 35,387 |
Loss (gain) on extinguishment of debt | 6,795 | 3,748 | (13,337) |
Noncontrolling interest in consolidated joint ventures | 270 | 430 | 148 |
(Increase) decrease in assets: | |||
Inventories | (279,000) | (35,514) | 87,897 |
Receivables, deposits and notes | (2,632) | (3,016) | 20,519 |
Origination of mortgage loans | (1,205,604) | (1,490,099) | (1,306,279) |
Sale of mortgage loans | 1,245,408 | 1,443,355 | 1,367,903 |
Deferred tax assets | 80,885 | (425,678) | 0 |
Increase (decrease) in liabilities: | |||
Accounts payable, accrued interest and other liabilities | 7,705 | 71,370 | 33,576 |
Customers’ deposits | 5,725 | 20,009 | 12,414 |
State income tax payable | (684) | 19 | 1,531 |
Net cash provided by operating activities | 89,466 | 210,213 | 292,828 |
Cash flows from investing activities: | |||
Proceeds from sale of property and assets | 63 | 32 | 112 |
Purchase of property, equipment, and other fixed assets | (12,592) | (5,942) | (3,380) |
Investment in and advances to unconsolidated joint ventures, net of reimbursements | 35 | (16,550) | (19,924) |
Distributions of capital from unconsolidated joint ventures | 10,342 | 31,456 | 25,332 |
Net cash (used in) provided by investing activities | (2,152) | 8,996 | 2,140 |
Cash flows from financing activities: | |||
Proceeds from mortgages and notes | 438,883 | 252,930 | 278,577 |
Payments related to mortgages and notes | (418,383) | (262,609) | (348,371) |
Proceeds from model sale leaseback financing programs | 35,030 | 7,606 | 19,200 |
Payments related to model sale leaseback financing programs | (14,857) | (23,677) | (23,646) |
Proceeds from land bank financing programs | 189,952 | 35,282 | 68,060 |
Payments related to land bank financing programs | (68,746) | (88,458) | (73,999) |
Proceeds from partner distributions to consolidated joint venture | 40 | 40 | 0 |
Payments for partner distributions to consolidated joint venture | (782) | (818) | 0 |
Preferred dividends paid | (10,675) | 0 | 0 |
Repurchases of common stock | (12,222) | 0 | 0 |
Deferred financing costs from land banking financing programs and note issuances | (10,267) | (2,587) | (13,278) |
Net cash used in financing activities | (16,520) | (217,273) | (167,774) |
Net increase in cash and cash equivalents, and restricted cash and cash equivalents | 70,794 | 1,936 | 127,194 |
Cash and cash equivalents, and restricted cash and cash equivalents balance, beginning of period | 311,396 | 309,460 | 182,266 |
Cash and cash equivalents, and restricted cash and cash equivalents balance, end of period | 382,190 | 311,396 | 309,460 |
Supplemental disclosures of cash flows: | |||
Interest, net of capitalized interest (see Note 3 to the Consolidated Financial Statements) | 44,872 | 87,227 | 89,484 |
Income taxes | 14,062 | 7,669 | 3,013 |
Cash and cash equivalents, and restricted cash and cash equivalents balance, end of period | 382,190 | 311,396 | 309,460 |
Senior Secured Notes [Member] | |||
Cash flows from financing activities: | |||
Payments related to senior secured notes | (103,875) | (182,726) | (21,240) |
Senior Secured Revolving Credit Facility [Member] | |||
Cash flows from financing activities: | |||
Net borrowings from senior secured credit facility | 0 | 0 | 125,000 |
Payments related to senior secured credit facility | 0 | 0 | (125,000) |
Mortgage Warehouse Lines of Credit [Member] | |||
Cash flows from financing activities: | |||
Net (payments) proceeds related to mortgage warehouse lines of credit | (40,618) | 47,744 | (53,077) |
Homebuilding [Member] | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Inventory impairments and land option write-offs | 14,076 | 3,630 | 8,813 |
Supplemental disclosures of cash flows: | |||
Cash and cash equivalents | 326,198 | 245,970 | 262,489 |
Restricted cash and cash equivalents | 13,382 | 16,089 | 14,731 |
Financial Services [Member] | |||
Supplemental disclosures of cash flows: | |||
Cash and cash equivalents | 6,468 | 5,819 | 4,854 |
Restricted cash and cash equivalents | $ 36,142 | $ 43,518 | $ 27,386 |
Supplemental Disclosure of Nonc
Supplemental Disclosure of Noncash Investing and Financing Activities | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental disclosure of noncash investing and financing activities: In the third fourth 2021, In accordance with the adoption of Accounting Standards Codification ("ASC") 842, 842" first 2020, In the first 2020, 1.75 2025 2022 2024. 1.75 1.75 January 31, 2028 ( 9 In the second 2020, 1.5 2026 2022 9 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include Hovnanian Enterprises, Inc.’s (“HEI”) accounts and those of all its consolidated subsidiaries, after elimination of all intercompany balances and transactions. HEI’s fiscal year ends October 31. not 100% not October 31, 2022, October 31, 2022. one not |
Note 2 - Business
Note 2 - Business | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 2. HEI conducts all of its homebuilding and financial services operations through its subsidiaries (references herein to the “Company,” “we,” “us” or “our” refer to HEI and its consolidated subsidiaries and should be understood to reflect the consolidated business of HEI’s subsidiaries). Our operations consist of homebuilding, financial services and corporate. Historically, the Company had seven reportable segments consisting of six homebuilding segments (Northeast, Mid-Atlantic, Midwest, Southeast, Southwest and West) and its financial services segment. During the fourth 2022, 280 1 2 3 October 31, 2022 October 31, 2021 2020. October 31, 2022 first first second not See Note 10 |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 3. Use of Estimates Income Recognition from Home and Land Sales 12 606, no 606. Income Recognition from Mortgage Loans - We elected the fair value option for our mortgage loans held for sale in accordance with ASC 825, not Substantially all of the mortgage loans originated are sold within a short period of time in the secondary mortgage market on a servicing released, nonrecourse basis, although the Company remains liable for certain limited representations, such as fraud, and warranties related to loan sales. Mortgage investors could seek to have us buy back loans or compensate them for losses incurred on mortgages we have sold based on claims that we breached our limited representations and warranties. We have established reserves for probable losses. Cash and Cash Equivalents 90 may, October 31, 2022 2021 Fair Value of Financial Instruments not third Inventories We record inventories on our Consolidated Balance Sheets at cost unless the inventory is determined to be impaired, in which case the inventory is written down to its fair value. Our inventories consist of the following components: ( 1 2 3 not We decide to mothball (or stop development on) certain communities when we determine that the current performance does not 2022, October 31, 2022 2021 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, October 31, 2022 2021 not not We have land banking arrangements, whereby we sell our land parcels to the land banker and they provide us an option to purchase back finished lots on a predetermined schedule. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC 606, October 31, 2022 2021 not not The recoverability of inventories and other long-lived assets is assessed in accordance with ASC 360, 360 We evaluate inventories of communities under development and held for future development for impairment when indicators of potential impairment are present. Indicators of impairment include, but are not The projected operating profits, losses or cash flows of each community can be significantly impacted by our estimates of the following: ● future base selling prices; ● future home sales incentives; ● future home construction and land development costs; and ● future sales absorption pace and cancellation rates. These estimates are dependent upon specific market conditions for each community. While we consider available information to determine what we believe to be our best estimates as of the end of each quarter, these estimates are subject to change in future reporting periods as facts and circumstances change. Local market-specific conditions that may ● the intensity of competition within a market, including available home sales prices and home sales incentives offered by our competitors; ● the current sales absorption pace for both our communities and competitor communities; ● community-specific attributes, such as location, availability of lots in the market, desirability and uniqueness of our community, and the size and style of homes currently being offered; ● potential for alternative product offerings to respond to local market conditions; ● changes by management in the sales strategy of the community; ● current local market economic and demographic conditions and related trends and forecasts; and ● existing home inventory supplies, including foreclosures and short sales. These and other local market-specific conditions that may may may may may may one not may not If the undiscounted cash flows are more than the carrying value of the community, then the carrying amount is recoverable, and no third may From time to time, we write off deposits, approval, engineering and capitalized interest costs when we determine that it is no not not not Inventories held for sale are land parcels ready for sale in their current condition, where we have decided not October 31, 2022 2021 third Warranty Costs and Construction Defect Reserves 2022 2021 2022 2021 2022 2021 not third third not not Interest not Interest costs incurred, expensed and capitalized were as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Interest capitalized at beginning of year $ 58,159 $ 65,010 $ 71,264 Plus interest incurred(1) 134,024 155,514 176,457 Less cost of sales interest expensed (85,240 ) (84,100 ) (74,330 ) Less other interest expensed(2)(3) (47,343 ) (77,716 ) (103,801 ) Less interest contributed to unconsolidated joint venture(4) - (3,667 ) (4,580 ) Plus interest acquired from unconsolidated joint venture(5) - 3,118 - Interest capitalized at end of year(6) $ 59,600 $ 58,159 $ 65,010 ( 1 Data does not ( 2 Other interest expensed includes interest that does not not October 31, 2022, 2021 2020 not October 31, 2022, 2021 2020 ( 3 Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484 ( 4 Represents capitalized interest which was included as part of the assets contributed to joint ventures, as discussed in Note 20. no ( 5 Represents capitalized interest which was included as part of the assets purchased from joint ventures, as discussed in Note 20. no ( 6 Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. Land Options - not 810, not not Unconsolidated Homebuilding and Land Development Joint Ventures - third not not 323, no Debt Issuance Costs - Debt Issued at a Discount /Premium - Advertising Costs October 31, 2022, 2021 2020 Deferred Income Taxes - 740, 740 not” In evaluating the exposures associated with our various tax filing positions, we recognize tax liabilities in accordance with ASC 740, not may may Prepaid Expenses - Allowance for Credit Losses October 31, 2022 2021 2022 2021 2022, 2021. 2022 2021. Stock-Based Compensation - 718, Per Share Calculations - All shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in earnings per share pursuant to the two two Recent Accounting Pronouncements March 2020, 2020 04, 2020 04” 2020 04 March 12, 2020, may December 31, 2022. not |
Note 4 - Leases
Note 4 - Leases | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 4. Leases We rent 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, three five 842, 842, not Our lease population at October 31, 2022 842, not 12 Lease costs are included in our Consolidated Statements of Operations, primarily in "Selling, general and administrative" homebuilding expenses and payments on our lease liabilities are presented in the table below. Our short-term lease costs and sublease income are de minimis. Year Ended October 31, (In thousands) 2022 2021 2020 Operating lease costs $ 10,483 $ 10,521 $ 10,507 Cash payments on lease liabilities $ 9,605 $ 9,598 $ 9,257 ROU assets are classified within "Prepaid expenses and other assets" on our Consolidated Balance Sheets, while lease liabilities are classified within "Accounts payable and other liabilities." The Company recorded a net increase to both its ROU assets and lease liabilities of $9.9 million as a result of new leases and lease renewals that commenced during the year ended October 31, 2022 (In thousands) 2022 2021 ROU assets $ 17,899 $ 17,844 Lease liabilities $ 18,862 $ 18,952 Weighted-average remaining lease term (in years) 3.5 3.1 Weighted-average discount rate 9.5 % 9.4 % Maturities of our operating lease liabilities as of October 31, 2022 Fiscal Year Ended October 31, (In thousands) 2023 $ 8,075 2024 5,892 2025 4,805 2026 3,161 2027 and thereafter 1,820 Total operating lease payments (1) 23,753 Less: imputed interest (4,891 ) Present value of operating lease liabilities $ 18,862 ( 1 not October 31, 2022. not October 31, 2022. |
Note 5 - Property, Plant and Eq
Note 5 - Property, Plant and Equipment | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Homebuilding property and equipment consists of land and land improvements, buildings, building improvements, furniture and equipment used to conduct day-to-day business and are recorded at cost less accumulated depreciation. Property and equipment balances as of October 31, 2022 2021 October 31, (In thousands) 2022 2021 Land and land improvements $ 1,639 $ 1,639 Buildings 9,497 9,497 Building improvements 22,220 15,478 Furniture 4,363 4,214 Equipment, including capitalized software 40,002 36,467 Property and equipment 77,721 67,295 Less: accumulated depreciation (51,902 ) (48,559 ) Property and equipment, net $ 25,819 $ 18,736 |
Note 6 - Restricted Cash and Cu
Note 6 - Restricted Cash and Customers' Deposits | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 6. Homebuilding "Restricted cash and cash equivalents" on the Consolidated Balance Sheets totaled $13.4 million and $16.1 million as of October 31, 2022 2021 9 Financial services restricted cash and cash equivalents, which are included in "Financial services" assets on the Consolidated Balance Sheets, totaled $36.1 million and $43.5 million as of October 31, 2022 2021 1 October 31, 2022 2021, 2 October 31, 2022 2021, Homebuilding "Customers’ deposits" are shown as a liability on the Consolidated Balance Sheets. These liabilities are significantly more than the applicable periods’ restricted cash balances because in some states the deposits are not |
Note 7 - Mortgage Loans Held fo
Note 7 - Mortgage Loans Held for Sale | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 7. Our wholly owned mortgage banking subsidiary, K. Hovnanian American Mortgage, LLC (“K. Hovnanian Mortgage”) originates mortgage loans, primarily from the sale of our homes. Such mortgage loans are sold in the secondary mortgage market within a short period of time of origination. Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. Loans held for sale are recorded at fair value with the changes in the value recognized in the Consolidated Statements of Operations in “Financial services” revenue. We currently use forward sales of MBS, interest rate commitments from borrowers and mandatory and/or best-efforts forward commitments to sell loans to third not At October 31, 2022 2021 8 may not October 31, 2022 2021 not The activity in our loan origination reserves in fiscal 2022 2021 Year Ended October 31, (In thousands) 2022 2021 Loan origination reserves, beginning of period $ 1,632 $ 1,458 Provisions for losses during the period 181 228 Adjustments to pre-existing provisions for losses from changes in estimates (18 ) (54 ) Loan origination reserves, end of period $ 1,795 $ 1,632 |
Note 8 - Mortgages
Note 8 - Mortgages | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Line of Credit [Text Block] | 8. Nonrecourse We have nonrecourse mortgage loans for certain communities totaling $144.8 million and $125.1 million, net of debt issuance costs, at October 31, 2022 2021 October 31, 2022 2021 Mortgage Loans K. Hovnanian Mortgage originates mortgage loans primarily from the sale of our homes. Such mortgage loans and related servicing rights are generally sold in the secondary mortgage market within a short period of time. K. Hovnanian Mortgage finances the origination of mortgage loans through various master repurchase agreements, which are recorded in "Financial services" liabilities on the Consolidated Balance Sheets. Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”) is a short-term borrowing facility that provides up to $50.0 million through its maturity on July 31, 2023. October 31, 2022 October 31, 2022 2021 K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Customers Bank (“Customers Master Repurchase Agreement”) which is a short-term borrowing facility that provides up to $50.0 million through its maturity on March 8, 2023. October 31, 2022 2021 K. Hovnanian Mortgage also has a secured Master Repurchase Agreement with Comerica Bank (“Comerica Master Repurchase Agreement”) which was amended on August 8, 2022 July 7, 2023. 15th 30 October 31, 2022 2021 The Chase Master Repurchase Agreement, Customers Master Repurchase Agreement and Comerica Master Repurchase Agreement (together, the “Master Repurchase Agreements”) require K. Hovnanian Mortgage to satisfy and maintain specified financial ratios and other financial condition tests. Because of the extremely short period of time mortgages are held by K. Hovnanian Mortgage before the mortgages are sold to investors (generally a period of a few weeks), the immateriality to us on a consolidated basis of the size of the Master Repurchase Agreements, the levels required by these financial covenants, our ability based on our immediately available resources to contribute sufficient capital to cure any default, were such conditions to occur, and our right to cure any conditions of default based on the terms of the applicable agreement, we do not October 31, 2022 |
Note 9 - Senior Notes and Credi
Note 9 - Senior Notes and Credit Facilities | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | 9. Senior notes and credit facilities balances as of October 31, 2022 October 31, 2021 October 31, October 31, (In thousands) 2022 2021 Senior Secured Notes: 10.0% November 15, 2025 $ 158,502 $ 158,502 7.75% February 15, 2026 250,000 350,000 10.5% February 15, 2026 282,322 282,322 11.25% February 15, 2026 162,269 162,269 Total Senior Secured Notes $ 853,093 $ 953,093 Senior Notes: 8.0% November 1, 2027 $ - $ - 13.5% February 1, 2026 90,590 90,590 5.0% February 1, 2040 90,120 90,120 Total Senior Notes $ 180,710 $ 180,710 Senior Unsecured Term Loan Credit Facility due February 1, 2027 $ 39,551 $ 39,551 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 $ 81,498 $ 81,498 Senior Secured Revolving Credit Facility (2) $ - $ - Subtotal senior notes and credit facilities $ 1,154,852 $ 1,254,852 Net (discounts) premiums $ 4,079 $ 10,769 Unamortized debt issuance costs $ (12,384 ) $ (17,248 ) Total senior notes and credit facilities, net of discounts, premiums and unamortized debt issuance costs $ 1,146,547 $ 1,248,373 ( 1 2027 "8.0% 2027 not ( 2 October 31, 2022 first fourth 2022, first 2023. June 30, 2024 s option, at either (i) a term secured overnight financing rate (subject to a floor of 1.00%) plus an applicable margin of 4.50% or (ii) an alternate base rate plus an applicable margin of 3.50%. In addition, K. Hovnanian will pay an unused commitment fee on the undrawn revolving commitments at a rate of 1.00% per annum. As of October 31, 2022 Fiscal Year Ended October 31, (1) 2023 $ - 2024 - 2025 - 2026 943,683 2027 39,551 Thereafter 171,618 Total $ 1,154,852 ( 1 not no October 31, 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 (except for the 8.0% 2027 not October 31, 2022 ( The credit agreements governing the Credit Facilities and the indentures governing the senior secured and senior notes (together, the “Debt Instruments”) outstanding at October 31, 2022 not not October 31, 2022, If our consolidated fixed charge coverage ratio is less than 2.0 to 1.0, 1.0 d nonrecourse indebtedness. Beginning as of October 31, 2021, 1.0 1.0, no 2022. Under the terms of our Debt Instruments, we have the right to make certain redemptions and prepayments and, depending on market conditions, our strategic priorities and covenant restrictions, may may Fiscal 2022 On April 29, 2022, 1.125 2026 "1.125 uishment of debt of $6.8 million for the year ended October 31, 2022, On August 19, 2022, October 31, 2019, November 27, 2019, first first 2023 December 28, 2022 June 30, 2024, ( Fiscal 2021 On July 30, 2021, 2022 "10.0% 2022 October 31, 2021, On August 2, 2021, 2024 "10.5% 2024 October 31, 2021, Fiscal 2020 On December 10, 2019, "1.75 1.75 2025 “1.75 second 1.75 January 31, 2028 ( no 470 60, 1.75 October 31, 2020 The 1.75 December 10, 2019, 1.75 1.75 May 15 November 15 May 1 November 1, may 1.75 November 15, 2025. At any time and from time to time after November 15, 2022 November 15, 2023, may 1.75 November 15, 2023, may 1.75 The Secured Term Loans and the guarantees thereof are secured on a pari passu basis with the 1.75 1.75 10.0% January 31, 2028, November 15, 2022 November 15, 2023, may November 15, 2023, may On March 25, 2020, 1.5 1.5 $59.1 second March 25, 2020 ( 1.5 1.5 1.5 The Additional 1.5 1.5 2026 October 31, 2019 ( 1.5 1.5 “1.5 1.5 March 25, 2020 ( October 31, 2019 ( 1.5 1.5 During the year ended October 31, 2020, 2022 October 31, 2020, Secured Obligations On October 31, 2019, fourth 2022, first 2023. June 30, 2024 The 1.125 February 15, 2026 7.75% February 15 August 15 February 1 August 1, may may 1.125 February 15, 2022, February 15, 2023 February 15, 2024. The 10.5% 1.25 2026 "1.25 February 15, 2026 February 15 August 15 February 1 August 1, may may 1.25 February 15, 2022, February 15, 2023 February 15, 2024. The 11.25% 1.5 2026 "1.5 February 15, 2026 February 15 August 15 February 1 August 1, may 1.5 February 15, 2026 See “Fiscal 2020” 1.75 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 October 31, 2022, 1 2 not may 3 Unsecured Obligations The 13.5% Senior Notes due 2026 “13.5% 2026 13.5% February 1, 2026. 13.5% 2026 February 1 August 1 January 15 July 15, may 13.5% 2026 February 1, 2025 February 1, 2025, may 13.5% 2026 The 5.0% Senior Notes due 2040 “5.0% 2040 5.0% February 1, 2040. 5.0% 2040 February 1 August 1 January 15 July 15, may may 2040 The Unsecured Term Loans bear interest at a rate equal to 5.0% February 1, 2027. Other We have certain stand-alone cash collateralized letter of credit agreements and facilities under which there was a total of $6.0 million and $9.3 million letters of credit outstanding at October 31, 2022 October 31, 2021, October 31, 2022 October 31, 2021, |
Note 10 - Operating and Reporti
Note 10 - Operating and Reporting Segments | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10. HEI’s operating segments are components of the Company’s business for which discrete financial information is available and reviewed regularly by the chief operating decision maker, our Chief Executive Officer, to evaluate performance and make resource allocations. We currently have homebuilding operations in 14 states that are aggregated into reportable segments based primarily upon geographic proximity. Historically, the Company had seven reportable segments consisting of six fourth 2022, 280, HEI’s reportable segments now consist of the following three homebuilding segments and a financial services segment. Homebuilding: ( 1 Northeast (Delaware, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, Virginia and West Virginia) ( 2 Southeast (Florida, Georgia and South Carolina) ( 3 West (Arizona, California and Texas) All prior period amounts related to the segment change have been retrospectively reclassified throughout to conform to the new presentation. 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, 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 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 corporate general and administrative expenses. Operational results of each segment are not Financial information relating to our reportable segments are as follows: Year Ended October 31, (In thousands) 2022 2021 2020 Revenues: Northeast $ 1,085,081 $ 871,091 $ 821,456 Southeast 323,961 285,658 232,730 West 1,450,632 1,544,397 1,217,086 Total homebuilding 2,859,674 2,701,146 2,271,272 Financial services 61,540 81,692 72,162 Corporate and unallocated 1,017 19 467 Total revenues $ 2,922,231 $ 2,782,857 $ 2,343,901 Income before income taxes: Northeast $ 177,406 $ 102,896 $ 63,136 Southeast 60,178 17,764 1,355 West 207,519 198,343 84,599 Total homebuilding 445,103 319,003 149,090 Financial services 19,121 37,563 32,102 Corporate and unallocated (1) (144,471 ) (166,705 ) (125,789 ) Income before income taxes $ 319,753 $ 189,861 $ 55,403 ( 1 October 31, 2022 October 31, 2021 October 31, 2020 October 31, (In thousands) 2022 2021 Assets: Northeast $ 530,884 $ 491,507 Southeast 330,894 257,044 West 802,704 643,342 Total homebuilding 1,664,482 1,391,893 Financial services 155,993 202,758 Corporate and unallocated 741,555 725,857 Total assets $ 2,562,030 $ 2,320,508 October 31, (In thousands) 2022 2021 Investments in and advances to unconsolidated joint ventures: Northeast $ 20,241 $ 18,920 Southeast 52,651 40,563 West 174 268 Total homebuilding 73,066 59,751 Corporate and unallocated 1,874 1,146 Total investments in and advances to unconsolidated joint ventures $ 74,940 $ 60,897 Year Ended October 31, (In thousands) 2022 2021 2020 Homebuilding interest expense: Northeast $ 31,552 $ 30,212 $ 39,089 Southeast 17,403 19,490 17,005 West 55,056 55,029 60,120 Total homebuilding 104,011 104,731 116,214 Corporate and unallocated 28,572 57,085 61,917 Financial services interest expense (income) (1) (213 ) (35 ) (35 ) Total interest expense, net $ 132,370 $ 161,781 $ 178,096 ( 1 Financial services interest expense (income) is included in Financial services revenue or expense in the Consolidated Statements of Operations. Year Ended October 31, (In thousands) 2022 2021 2020 Depreciation: Northeast $ 1,542 $ 1,459 $ 1,605 Southeast 291 214 327 West 1,298 1,811 1,500 Total homebuilding 3,131 3,484 3,432 Financial services 5 13 13 Corporate and unallocated 2,321 1,783 1,859 Total depreciation $ 5,457 $ 5,280 $ 5,304 Year Ended October 31, (In thousands) 2022 2021 2020 Net additions to property and equipment: Northeast $ 1,848 $ 1,271 $ 1,069 Southeast 229 256 102 West 1,841 1,174 1,622 Total homebuilding 3,918 2,701 2,793 Financial services 28 - - Corporate and unallocated 8,646 3,241 587 Total net additions to property and equipment $ 12,592 $ 5,942 $ 3,380 Year Ended October 31, (In thousands) 2022 2021 2020 Equity in earnings from unconsolidated joint ventures: Northeast $ 12,674 $ 2,958 $ 10,644 Southeast 16,359 2,061 820 West - 3,830 5,101 Total equity in earnings from unconsolidated joint ventures $ 29,033 $ 8,849 $ 16,565 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. Income taxes (receivable) payable, including deferred benefits, consists of the following: October 31, (In thousands) 2022 2021 State income taxes: Current $ 3,167 $ 3,851 Deferred (69,248 ) (90,070 ) Federal income taxes: Current - - Deferred (275,545 ) (335,608 ) Total $ (341,626 ) $ (421,827 ) The (benefit) provision for income taxes is composed of the following charges: Year Ended October 31, (In thousands) 2022 2021 2020 Current income tax expense: Federal (1) $ - $ - $ - State (2) 13,377 7,722 4,475 Total current income tax expense: 13,377 7,722 4,475 Federal 60,064 (335,608 ) - State 20,822 (90,070 ) - Total deferred income tax expense (benefit): 80,886 (425,678 ) - Total $ 94,263 $ (417,956 ) $ 4,475 ( 1 The current federal income tax expense is net of the use of federal net operating losses totaling $306.0 million (tax effected $64.3 million), $173.8 million (tax effected $36.5 million) and $183.0 million (tax effected $38.4 million) for the years ended October 31, 2022, 2021 2020 , respectively. ( 2 The current state income tax expense is net of the use of state net operating losses totaling $80.1 million, $55.7 million and $72.5 million for the years ended October 31, 2022, 2021 2020 The total income tax expense for the year ended October 31, 2022 not October 31, 2021 October 31, 2020 not October 31, 2020 not Our federal net operating losses of $909.6 million expire between 2029 2038, 2023 2027; 2028 2032; 2033 2037; 2038 2042; The Company recognizes deferred income taxes for 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. A valuation allowance is provided to offset DTAs if, based upon the available evidence, it is more likely than not not not As of October 31, 2020, October 31, 2021. October 31, 2020, October 31, 2021. As of October 31, 2022, 740. three October 31, 2022 not $95.7 October 31, 2022 1. As of October 31, 2022, three three October 31, 2022. 2. Over the last several years, we have completed a number of debt refinancing/restructuring transactions to extend our debt maturities, which will allow us to allocate cash to opportunistically grow our community count and potentially generate additional income. (Positive Objective Evidence) 3. In July 2021 10.0% 2022 August 2021, 10.5% 2024 April 2022 1.125 2026. $23 4. We incurred pre-tax losses during the housing market decline that began in 2007 5. We exited several geographic markets over the last few years that have historically had pre-tax losses. By exiting these underperforming markets, the Company has been able to redeploy capital to better performing markets, which over time should improve our profitability. (Positive Subjective Evidence) 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, Deferred tax assets and liabilities have been recognized on the Consolidated Balance Sheets as follows: October 31, (In thousands) 2022 2021 Deferred tax assets: Inventory impairments $ 30,772 $ 34,973 Uniform capitalization of overhead 4,285 4,483 Warranty and legal reserves 5,668 5,671 Compensation 13,746 12,464 Deferred income 2,425 1,420 Interest expense 3,646 2,582 Restricted stock units 1,628 1,159 Stock options 818 1,009 Provision for losses 17,700 17,064 Joint venture loss - 743 Federal net operating losses 206,560 263,366 State net operating losses 150,832 177,163 Other 5,005 5,136 Total deferred tax assets 443,085 527,233 Deferred tax liabilities: Joint venture income (2,565 ) - Total deferred tax liabilities (2,565 ) - Valuation allowance (95,727 ) (101,555 ) Deferred tax assets, net $ 344,793 $ 425,678 Our effective tax rate varied from the statutory federal income tax rate. The effective tax rate is affected by a number of factors, the most significant of which has been the valuation allowance related to our DTAs. Due to the effects of these factors, our effective tax rates for 2022 2021 2020 not Year Ended October 31, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 9.8 4.0 10.6 Permanent differences, net 0.8 3.6 53.2 Deferred tax asset valuation allowance impact 0.0 (248.5 ) (83.3 ) Tax contingencies (0.1 ) (0.2 ) (0.5 ) Adjustments to prior years’ tax accruals (2.0 ) 0.0 7.0 Effective tax rate 29.5 % (220.1 )% 8.0 % ASC 740 may not We recognize tax liabilities in accordance with ASC 740 10 not may We recognize interest and penalties related to unrecognized tax benefits within income taxes in the Consolidated Statement of Operations. Accrued interest and penalties are included within "Income taxes payable" line on the Consolidated Balance Sheets. The following is a tabular reconciliation of the total amount of unrecognized tax benefits excluding interest and penalties: (In millions) 2022 2021 Unrecognized tax benefit—November 1, $ 0.5 $ 0.7 Gross increases—tax positions in current period - - Lapse of statute of limitations (0.3 ) (0.2 ) Unrecognized tax benefit—October 31, $ 0.2 $ 0.5 Related to the unrecognized tax benefits noted above, as of October 31, 2022 2021, $0.3 October 31, 2022, 2021 2020, It is likely that, within the next 12 October 31, 2022 2021. The consolidated federal tax returns have been audited through October 31, 2021 2018 2021. |
Note 12 - Reduction of Inventor
Note 12 - Reduction of Inventory to Fair Value | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Inventory Impairments and Land Option Cost Write-offs [Text Block] | 12. We had 374 communities under development and held for future development or sale at both October 31, 2022 2021, October 31, 2020, one October 31, 2022, October 31, 2022. three October 31, 2021, three three October 31, 2020, two one not October 31, 2020 not 2021 2020 The following table represents impairments by segment for fiscal 2022 2021 2020 (Dollars in millions) Year Ended October 31, 2022 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast - $ - $ - Southeast - - - West 1 8.4 10.6 Total 1 $ 8.4 $ 10.6 (Dollars in millions) Year Ended October 31, 2021 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast - $ - $ - Southeast 2 1.2 9.2 West 1 0.8 2.3 Total 3 $ 2.0 $ 11.5 (Dollars in millions) Year Ended October 31, 2020 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast 2 $ 2.0 $ 4.8 Southeast - - - West - - - Total 2 $ 2.0 $ 4.8 ( 1 Represents carrying value, net of prior period impairments, if any, at the time of recording the applicable period’s impairments. Write-offs of options, engineering and capitalized interest costs are also recorded in "Inventory impairments and land option write-offs" when we redesign communities, abandon certain engineering costs or do not not October 31, 2022, 2021 2020 not The following table represents write-offs of such costs by segment for fiscal 2022 2021 2020 Year Ended October 31, (In millions) 2022 2021 2020 Northeast $ 0.4 $ 0.3 $ 5.0 Southeast 0.9 0.2 0.8 West 4.4 1.1 1.0 Total $ 5.7 $ 1.6 $ 6.8 |
Note 13 - Per Share Calculation
Note 13 - Per Share Calculations | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 13. Basic and diluted earnings per share for the periods presented below were calculated as follows: Year Ended October 31, (In thousands, except per share data) 2022 2021 2020 Numerator: Net income $ 225,490 $ 607,817 $ 50,928 Less: preferred stock dividends (10,675 ) - - Less: undistributed earnings allocated to participating securities (19,702 ) (57,676 ) (4,652 ) Numerator for basic earnings per share $ 195,113 $ 550,141 $ 46,276 Plus: undistributed earnings allocated to participating securities 19,702 57,676 4,652 Less: undistributed earnings reallocated to participating securities (19,717 ) (58,687 ) (4,652 ) Numerator for diluted earnings per share $ 195,098 $ 549,130 $ 46,276 Denominator: Denominator for basic earnings per share – weighted average shares outstanding 6,437 6,287 6,189 Effect of dilutive securities: Stock-based payments 291 108 395 Denominator for diluted earnings per share – weighted-average shares outstanding 6,728 6,395 6,584 Basic earnings per share $ 30.31 $ 87.50 $ 7.48 Diluted earnings per share $ 29.00 $ 85.86 $ 7.03 In addition, 26 thousand, 25 thousand and 0.2 million shares related to out-of-the money stock options, which could potentially dilute basic earnings per share in the future, were not October 31, 2022, 2021 2020, |
Note 14 - Capital Stock
Note 14 - Capital Stock | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 14. Common Stock Each share of Class A common stock entitles its holder to one ten one one On August 4, 2008, January 11, 2018 January 18, 2021, 382 382. 382 382. one August 15, 2008. August 15, 2008, August 4, 2008, may August 14, 2024, 382 5% On July 3, 2001, September 1, 2022, may may not October 31, 2022, On October 31, 2020, 1.25 2026, 4 2 1933. Preferred Stock On July 12, 2005, not not 1/1000th 2022 2021 2020 not Retirement Plan We have established a tax-qualified, defined contribution savings and investment retirement plan (a 401 401 October 31, 2022, 2021 2020 Treasury Stock During the year ended October 31, 2022, October 31, 2022. October 31, 2021 2020. |
Note 15 - Share-Based Compensat
Note 15 - Share-Based Compensation Plans | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 15. We have stock incentive plans for certain officers, key employees and directors that are approved by a committee appointed by the Board or its delegate. As of October 31, 2022, Stock Options Prior to fiscal 2020, no 2022, 2021 2020. four fourth fifth three second third tenth The following table summarizes stock option activity at October 31, 2022 October 31, Weighted-Average 2022 Exercise Price Stock options outstanding at beginning of period 206,234 $ 51.67 Granted - $ - Exercised (9,575 ) $ 51.50 Forfeited - $ - Expired (30,100 ) $ 71.97 Stock options outstanding at end of period 166,559 $ 48.02 Stock options exercisable at end of period 127,780 The total intrinsic value of stock options exercised during fiscal 2022 2021 2020. Based on the fair value at the time of grant, the per share weighted-average fair value of stock options vested in fiscal 2022, 2021 2020 The following table summarizes the exercise price range and related number of outstanding stock options at October 31, 2022 Weighted- Average Weighted- Remaining Number Average Contractual Range of Exercise Prices Outstanding Exercise Price Life $7.85 – $38.75 73,174 $ 9.54 6.62 $42.50 – $63.75 67,439 $ 54.16 4.56 $66.75 – $100.25 1,700 $ 66.75 2.61 $110.25 – $157.00 24,246 $ 145.73 0.86 166,559 $ 48.02 4.90 The following table summarizes the exercise price range and related number of exercisable stock options at October 31, 2022 Weighted- Average Weighted- Remaining Number Average Contractual Range of Exercise Prices Exercisable Exercise Price Life $7.85 – $38.75 36,578 $ 9.58 6.62 $42.50 – $63.75 65,256 $ 54.34 4.52 $66.75 – $100.25 1,700 $ 66.75 2.61 $110.25 – $157.00 24,246 $ 145.73 0.86 127,780 $ 59.03 4.40 RSUs and Performance Units RSUs are measured based upon the fair value of a share of our Class A common stock on the date of grant. Shares underlying RSUs granted to officers and associates generally vest in four fourth 2022, two 2019 one Grants of market share units ("MSUs"), performance share units ("PSUs") and the stock portion of the long-term incentive plans ("LTIPs") (each discussed below), are also awarded as compensation. The following table summarizes nonvested time-based RSU and MSU share activity as of October 31, 2022 October 31, Weighted-Average Grant Date 2022 Fair Value Nonvested time-based at beginning of period 229,924 $ 26.51 Granted 63,159 $ 50.14 Vested (1) (113,684 ) $ 23.51 Forfeited (3,762 ) $ 39.49 Nonvested time-based at end of period 175,637 $ 33.43 The following table summarizes nonvested performance-based LTIP, PSU and MSU share activity as of October 31, 2022 October 31, Weighted-Average Grant Date 2022 Fair Value Nonvested performance-based at beginning of period 350,983 $ 35.60 Granted 335,794 $ 42.91 Vested (1) (179,265 ) $ 29.36 Forfeited (355 ) $ 73.50 Nonvested performance-based at end of period 507,157 $ 41.14 ( 1 49,484 not October 31, 2022. LTIP awards include share adjustments for the difference between target performance metrics at the time of grant and the final performance outcome. Share adjustments are reflected in the “Granted” line above at the time the performance is finalized. For LTIP awards granted prior to fiscal 2022, fourth fifth 2022 PSUs granted in fiscal 2020 four fourth fifth no 2022 2021 third 2022 two two There were no MSUs granted in fiscal 2022, 2021 2020. first second may first third January 1st third no During the year-ended October 31, 2022 60,751 October 31, 2022 Stock-Based Compensation Expense For the years ended October 31, 2022, 2021 2020, 2022, 2021 2020, October 31, 2022, 2021 2020, October 31, 2020 not |
Note 16 - Warranty Costs
Note 16 - Warranty Costs | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 16. General liability insurance for homebuilding companies and their suppliers and subcontractors is very difficult to obtain. The availability of general liability insurance is limited due to a decreased number of insurance companies willing to underwrite for the industry. In addition, those few insurers willing to underwrite liability insurance have significantly increased the premium costs. To date, we have been able to obtain general liability insurance but at higher premium costs with higher deductibles. Our subcontractors and suppliers have advised us that they have also had difficulty obtaining insurance that also provides us coverage. As a result, we have an owner-controlled insurance program for certain of our subcontractors whereby the subcontractors pay us an insurance premium (through a reduction of amounts we would otherwise owe such subcontractors for their work on our homes) based on the risk type of the trade. We absorb the liability associated with their work on our homes as part of our overall general liability insurance at no October 31, 2022 2021 Additions and charges in the warranty reserve and general liability reserve for the years ended October 31, 2022 2021 Year Ended October 31, (In thousands) 2022 2021 Balance, beginning of period $ 94,916 $ 86,417 Additions: Selling, general and administrative 8,495 10,419 Additions: Cost of sales 9,054 13,410 Charges incurred during the period (18,271 ) (14,342 ) Changes to pre-existing reserves 3,525 (988 ) Balance, end of period $ 97,719 $ 94,916 Warranty accruals are based upon historical experience. In fiscal 2022 $4.3 Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, were $0.2 million and $0.1 million for the years ended October 31, 2022 2021 |
Note 17 - Transactions With Rel
Note 17 - Transactions With Related Parties | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 17. During the years ended October 31, 2022, 2021 2020 Alexander Hovnanian, the son of Ara K. Hovnanian, is employed by the Company. Alexander Hovnanian holds the position of Executive Vice President - National Homebuilding Operations. For fiscal 2022, $1,684,000 2021, 2020, Carson Sorsby, the son of J. Larry Sorsby one |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingent Liabilities | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18. We are involved in litigation arising in the ordinary course of business, none We also are subject to a variety of local, state, federal and foreign laws and regulations concerning protection of health and the environment, including those regulating the emission or discharge of materials into the environment, the management of storm water runoff at construction sites, the handling, use, storage and disposal of hazardous substances, impacts to wetlands and other sensitive environments, and the remediation of contamination at properties that we have owned or developed or currently own or are developing (“environmental laws”). The particular environmental laws that apply to a site may may may may We anticipate that increasingly stringent requirements will continue to be imposed on developers and homebuilders in the future. In addition, some of these laws and regulations that significantly affect how certain properties may may may may may In March 2013, 1990s. August 2013, April 2014 March 2017 May 2, 2018 June 15, 2018 three June 2022, one June 14, 2022 August 9, 2022. In 2015, not April 17, 2023. In December 2020, 1998, No Not 1999. one 2009 |
Note 19 - Variable Interest Ent
Note 19 - Variable Interest Entities | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 19. We enter 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 not We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at October 31, 2022 not |
Note 20 - Investments in Uncons
Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 20. We enter into homebuilding and land development joint ventures from time to time as a means of accessing lot positions, expanding our market opportunities, establishing strategic alliances, managing our risk profile, leveraging our capital base and enhancing returns on capital. Our homebuilding joint ventures are generally entered into with third third third During the third 2021, one four three During the second 2021, two During the first 2020, eight four The tables set forth below summarize the combined financial information related to our unconsolidated homebuilding and land development joint ventures that are accounted for under the equity method: October 31, 2022 Land (In thousands) Homebuilding Development Total Assets: Cash and cash equivalents $ 153,176 $ 868 $ 154,044 Inventories 441,140 - 441,140 Other assets 20,037 - 20,037 Total assets $ 614,353 $ 868 $ 615,221 Liabilities and equity: Accounts payable and accrued liabilities $ 471,813 $ 651 $ 472,464 Notes payable 34,880 - 34,880 Total liabilities 506,693 651 507,344 Equity of: Hovnanian Enterprises, Inc. 73,142 209 73,351 Others 34,518 8 34,526 Total equity 107,660 217 107,877 Total liabilities and equity $ 614,353 $ 868 $ 615,221 Debt to capitalization ratio 24 % 0 % 24 % October 31, 2021 Land (In thousands) Homebuilding Development Total Assets: Cash and cash equivalents $ 132,963 $ 1,972 $ 134,935 Inventories 442,347 - 442,347 Other assets 34,551 - 34,551 Total assets $ 609,861 $ 1,972 $ 611,833 Liabilities and equity: Accounts payable and accrued liabilities $ 386,117 $ 1,681 $ 387,798 Notes payable 73,994 - 73,994 Total liabilities 460,111 1,681 461,792 Equity of: Hovnanian Enterprises, Inc. 58,460 254 58,714 Others 91,290 37 91,327 Total equity 149,750 291 150,041 Total liabilities and equity $ 609,861 $ 1,972 $ 611,833 Debt to capitalization ratio 33 % 0 % 33 % As of October 31, 2022 2021, October 31, 2022 2021, October 31, 2022 2021, not For The Year Ended October 31, 2022 Land (In thousands) Homebuilding Development Total Revenues $ 351,767 $ 113 $ 351,880 Cost of sales and expenses (318,788 ) (37 ) (318,825 ) Joint venture net income $ 32,979 $ 76 $ 33,055 Our share of net income $ 29,002 $ 31 $ 29,033 For The Year Ended October 31, 2021 Land (In thousands) Homebuilding Development Total Revenues $ 347,898 $ 691 $ 348,589 Cost of sales and expenses (335,077 ) (209 ) (335,286 ) Joint venture net income $ 12,821 $ 482 $ 13,303 Our share of net income $ 8,754 $ 195 $ 8,949 For The Year Ended October 31, 2020 Land (In thousands) Homebuilding Development Total Revenues $ 435,077 $ 13,024 $ 448,101 Cost of sales and expenses (420,977 ) (11,225 ) (432,202 ) Joint venture net income $ 14,100 $ 1,799 $ 15,899 Our share of net income $ 16,904 $ 17 $ 16,921 “Income (loss) from unconsolidated joint ventures” in the Consolidated Statements of Operations reflects our proportionate share of income or loss from these unconsolidated homebuilding and land development joint ventures. The difference between our share of the income or loss from these unconsolidated joint ventures in the tables above compared to the Consolidated Statements of Operations is due primarily to the reclassification of the intercompany portion of management fee income from certain unconsolidated joint ventures and the deferral of income for lots purchased by us from certain unconsolidated joint ventures. The reason “Our share of net income” is higher or lower than the “Joint venture net income” shown in the tables above for the years ended October 31, 2022 2021, 50% seven ten October 31, 2022, two third od, and a fourth not October 31, 2021, one no second In addition, for the year ended October 31, 2022, one not October 31, 2021, two not not seven ten To compensate us for the administrative services we provide as the manager of certain unconsolidated joint ventures, we receive a management fee based on a percentage of the applicable unconsolidated joint venture’s revenues. These management fees, which totaled $12.5 million, $11.6 million and $16.0 million for the years ended October 31, 2022, 2021 2020, 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. Any unconsolidated joint venture financing is on a nonrecourse basis, with guarantees from us limited only to performance and completion of development, environmental warranties and indemnification, standard indemnification for fraud, misrepresentation and other similar actions, including a voluntary bankruptcy filing. In some instances, the unconsolidated joint venture entity is considered a VIE under ASC 810 not not |
Note 21 - Fair Value of Financi
Note 21 - Fair Value of Financial Instruments | 12 Months Ended |
Oct. 31, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 21. ASC 820, Level 1: Level 2: Level 3: Our financial instruments measured at fair value on a recurring basis are summarized below: Fair Value at Fair Value at Fair Value October 31, October 31, (In thousands) Hierarchy 2022 2021 Mortgage loans held for sale (1) Level 2 $ 110,548 $ 151,059 Forward contracts Level 2 752 (107 ) Total $ 111,300 $ 150,952 Interest rate lock commitments Level 3 - 152 Total $ 111,300 $ 151,104 ( 1 October 31, 2022 2021 Fair value of mortgage loans held for sale is based on independent quoted market prices, where available, or the prices for other mortgage loans with similar characteristics. The financial services segment had a pipeline of loan applications in process of $583.6 million at October 31, 2022 October 31, 2022 not In addition, 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. Our risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At October 31, 2022 December 13, 2022. The assets accounted for using the fair value option are initially measured at fair value. Subsequent changes in fair value are recognized in the Consolidated Statements of Operations in “Financial services” revenue. Changes in fair value that are included in income are shown, by financial instrument and financial statement line item, below: Year Ended October 31, 2022 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Change in fair value included in financial services revenue $ 385 $ - $ 752 Year Ended October 31, 2021 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Change in fair value included in financial services revenue $ 4,580 $ 152 $ (107 ) Year Ended October 31, 2020 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Change in fair value included in financial services revenue $ 3,928 $ 11 $ (28 ) Assets measured at fair value on a nonrecurring basis are those assets for which we have recorded valuation adjustments and write-offs during the years ended October 31, 2022 2021 Year Ended October 31, 2022 (In thousands) Fair Pre- Value Impairment Hierarchy Amount Total Losses Fair Value Land and land options held for future development or sale Level 3 $ 10,558 $ (8,374 ) $ 2,184 Year Ended October 31, 2021 (In thousands) Fair Pre- Value Impairment Hierarchy Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 11,522 $ (2,009 ) $ 9,513 We recorded inventory impairments, which are included in the Consolidated Statements of Operations as “Inventory impairments and land option write-offs” and deducted from inventory of $8.4 million, $2.0 million and $2.0 million for the years ended October 31, 2022, 2021 2020 12 The fair value of our cash equivalents, restricted cash and cash equivalents and customers' deposits approximates their carrying amount, based on Level 1 The fair value of each series of our notes and credit facilities are listed below. Level 3 third Fair Value as of October 31, 2022 (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% November 15, 2025 - - 165,844 165,844 7.75% February 15, 2026 - - 240,393 240,393 10.5% February 15, 2026 - - 272,966 272,966 11.25% February 15, 2026 - - 162,566 162,566 Senior Notes: 13.5% February 1, 2026 - - 94,282 94,282 5.0% February 1, 2040 - - 55,654 55,654 Senior Credit Facilities: Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 31,301 31,301 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 - - 85,247 85,247 Total fair value $ - $ - $ 1,108,253 $ 1,108,253 Fair Value as of October 31, 2021 (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% November 15, 2025 - - 167,348 167,348 7.75% February 15, 2026 - - 366,426 366,426 10.5% February 15, 2026 - - 300,913 300,913 11.25% February 15, 2026 - - 162,548 162,548 Senior Notes: 13.5% February 1, 2026 - - 92,331 92,331 5.0% February 1, 2040 - - 63,084 63,084 Senior Credit Facilities: Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 28,196 28,196 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 - - 86,046 86,046 Total fair value $ - $ - $ 1,266,892 $ 1,266,892 The Senior Secured Revolving Credit Facility is not October 31, 2022 2021 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Revenue [Policy Text Block] | Income Recognition from Home and Land Sales 12 606, no 606. Income Recognition from Mortgage Loans - We elected the fair value option for our mortgage loans held for sale in accordance with ASC 825, not Substantially all of the mortgage loans originated are sold within a short period of time in the secondary mortgage market on a servicing released, nonrecourse basis, although the Company remains liable for certain limited representations, such as fraud, and warranties related to loan sales. Mortgage investors could seek to have us buy back loans or compensate them for losses incurred on mortgages we have sold based on claims that we breached our limited representations and warranties. We have established reserves for probable losses. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents 90 may, October 31, 2022 2021 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments not third |
Inventory, Policy [Policy Text Block] | Inventories We record inventories on our Consolidated Balance Sheets at cost unless the inventory is determined to be impaired, in which case the inventory is written down to its fair value. Our inventories consist of the following components: ( 1 2 3 not We decide to mothball (or stop development on) certain communities when we determine that the current performance does not 2022, October 31, 2022 2021 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, October 31, 2022 2021 not not We have land banking arrangements, whereby we sell our land parcels to the land banker and they provide us an option to purchase back finished lots on a predetermined schedule. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC 606, October 31, 2022 2021 not not The recoverability of inventories and other long-lived assets is assessed in accordance with ASC 360, 360 We evaluate inventories of communities under development and held for future development for impairment when indicators of potential impairment are present. Indicators of impairment include, but are not The projected operating profits, losses or cash flows of each community can be significantly impacted by our estimates of the following: ● future base selling prices; ● future home sales incentives; ● future home construction and land development costs; and ● future sales absorption pace and cancellation rates. These estimates are dependent upon specific market conditions for each community. While we consider available information to determine what we believe to be our best estimates as of the end of each quarter, these estimates are subject to change in future reporting periods as facts and circumstances change. Local market-specific conditions that may ● the intensity of competition within a market, including available home sales prices and home sales incentives offered by our competitors; ● the current sales absorption pace for both our communities and competitor communities; ● community-specific attributes, such as location, availability of lots in the market, desirability and uniqueness of our community, and the size and style of homes currently being offered; ● potential for alternative product offerings to respond to local market conditions; ● changes by management in the sales strategy of the community; ● current local market economic and demographic conditions and related trends and forecasts; and ● existing home inventory supplies, including foreclosures and short sales. These and other local market-specific conditions that may may may may may may one not may not If the undiscounted cash flows are more than the carrying value of the community, then the carrying amount is recoverable, and no third may From time to time, we write off deposits, approval, engineering and capitalized interest costs when we determine that it is no not not not Inventories held for sale are land parcels ready for sale in their current condition, where we have decided not October 31, 2022 2021 third |
Post-development Completion Warranty Costs and Insurance Deductible Reserves, Policy [Policy Text Block] | Warranty Costs and Construction Defect Reserves 2022 2021 2022 2021 2022 2021 not third third not not |
Inventory, Interest Capitalization Policy [Policy Text Block] | Interest not Interest costs incurred, expensed and capitalized were as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Interest capitalized at beginning of year $ 58,159 $ 65,010 $ 71,264 Plus interest incurred(1) 134,024 155,514 176,457 Less cost of sales interest expensed (85,240 ) (84,100 ) (74,330 ) Less other interest expensed(2)(3) (47,343 ) (77,716 ) (103,801 ) Less interest contributed to unconsolidated joint venture(4) - (3,667 ) (4,580 ) Plus interest acquired from unconsolidated joint venture(5) - 3,118 - Interest capitalized at end of year(6) $ 59,600 $ 58,159 $ 65,010 ( 1 Data does not ( 2 Other interest expensed includes interest that does not not October 31, 2022, 2021 2020 not October 31, 2022, 2021 2020 ( 3 Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484 ( 4 Represents capitalized interest which was included as part of the assets contributed to joint ventures, as discussed in Note 20. no ( 5 Represents capitalized interest which was included as part of the assets purchased from joint ventures, as discussed in Note 20. no ( 6 Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest. |
Land under Option Arrangements, Policy [Policy Text Block] | Land Options - not 810, not not |
Equity Method Investments [Policy Text Block] | Unconsolidated Homebuilding and Land Development Joint Ventures - third not not 323, no |
Deferred Charges, Policy [Policy Text Block] | Debt Issuance Costs - |
Debt, Policy [Policy Text Block] | Debt Issued at a Discount /Premium - |
Advertising Cost [Policy Text Block] | Advertising Costs October 31, 2022, 2021 2020 |
Income Tax, Policy [Policy Text Block] | Deferred Income Taxes - 740, 740 not” In evaluating the exposures associated with our various tax filing positions, we recognize tax liabilities in accordance with ASC 740, not may may |
Prepaid Expenses, Policy [Policy Text Block] | Prepaid Expenses - |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Credit Losses October 31, 2022 2021 2022 2021 2022, 2021. 2022 2021. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation - 718, |
Earnings Per Share, Policy [Policy Text Block] | Per Share Calculations - All shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in earnings per share pursuant to the two two |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements March 2020, 2020 04, 2020 04” 2020 04 March 12, 2020, may December 31, 2022. not |
Note 3 - Summary of Significa_2
Note 3 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block] | Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Interest capitalized at beginning of year $ 58,159 $ 65,010 $ 71,264 Plus interest incurred(1) 134,024 155,514 176,457 Less cost of sales interest expensed (85,240 ) (84,100 ) (74,330 ) Less other interest expensed(2)(3) (47,343 ) (77,716 ) (103,801 ) Less interest contributed to unconsolidated joint venture(4) - (3,667 ) (4,580 ) Plus interest acquired from unconsolidated joint venture(5) - 3,118 - Interest capitalized at end of year(6) $ 59,600 $ 58,159 $ 65,010 |
Cash Paid for Interest Net of Capitalized Interest [Table Text Block] | Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484 |
Note 4 - Leases (Tables)
Note 4 - Leases (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Year Ended October 31, (In thousands) 2022 2021 2020 Operating lease costs $ 10,483 $ 10,521 $ 10,507 Cash payments on lease liabilities $ 9,605 $ 9,598 $ 9,257 (In thousands) 2022 2021 ROU assets $ 17,899 $ 17,844 Lease liabilities $ 18,862 $ 18,952 Weighted-average remaining lease term (in years) 3.5 3.1 Weighted-average discount rate 9.5 % 9.4 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Fiscal Year Ended October 31, (In thousands) 2023 $ 8,075 2024 5,892 2025 4,805 2026 3,161 2027 and thereafter 1,820 Total operating lease payments (1) 23,753 Less: imputed interest (4,891 ) Present value of operating lease liabilities $ 18,862 |
Note 5 - Property, Plant and _2
Note 5 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | October 31, (In thousands) 2022 2021 Land and land improvements $ 1,639 $ 1,639 Buildings 9,497 9,497 Building improvements 22,220 15,478 Furniture 4,363 4,214 Equipment, including capitalized software 40,002 36,467 Property and equipment 77,721 67,295 Less: accumulated depreciation (51,902 ) (48,559 ) Property and equipment, net $ 25,819 $ 18,736 |
Note 7 - Mortgage Loans Held _2
Note 7 - Mortgage Loans Held for Sale (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Year Ended October 31, (In thousands) 2022 2021 Loan origination reserves, beginning of period $ 1,632 $ 1,458 Provisions for losses during the period 181 228 Adjustments to pre-existing provisions for losses from changes in estimates (18 ) (54 ) Loan origination reserves, end of period $ 1,795 $ 1,632 |
Note 9 - Senior Notes and Cre_2
Note 9 - Senior Notes and Credit Facilities (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | October 31, October 31, (In thousands) 2022 2021 Senior Secured Notes: 10.0% November 15, 2025 $ 158,502 $ 158,502 7.75% February 15, 2026 250,000 350,000 10.5% February 15, 2026 282,322 282,322 11.25% February 15, 2026 162,269 162,269 Total Senior Secured Notes $ 853,093 $ 953,093 Senior Notes: 8.0% November 1, 2027 $ - $ - 13.5% February 1, 2026 90,590 90,590 5.0% February 1, 2040 90,120 90,120 Total Senior Notes $ 180,710 $ 180,710 Senior Unsecured Term Loan Credit Facility due February 1, 2027 $ 39,551 $ 39,551 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 $ 81,498 $ 81,498 Senior Secured Revolving Credit Facility (2) $ - $ - Subtotal senior notes and credit facilities $ 1,154,852 $ 1,254,852 Net (discounts) premiums $ 4,079 $ 10,769 Unamortized debt issuance costs $ (12,384 ) $ (17,248 ) Total senior notes and credit facilities, net of discounts, premiums and unamortized debt issuance costs $ 1,146,547 $ 1,248,373 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | Fiscal Year Ended October 31, (1) 2023 $ - 2024 - 2025 - 2026 943,683 2027 39,551 Thereafter 171,618 Total $ 1,154,852 |
Note 10 - Operating and Repor_2
Note 10 - Operating and Reporting Segments (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | October 31, (In thousands) 2022 2021 Assets: Northeast $ 530,884 $ 491,507 Southeast 330,894 257,044 West 802,704 643,342 Total homebuilding 1,664,482 1,391,893 Financial services 155,993 202,758 Corporate and unallocated 741,555 725,857 Total assets $ 2,562,030 $ 2,320,508 October 31, (In thousands) 2022 2021 Investments in and advances to unconsolidated joint ventures: Northeast $ 20,241 $ 18,920 Southeast 52,651 40,563 West 174 268 Total homebuilding 73,066 59,751 Corporate and unallocated 1,874 1,146 Total investments in and advances to unconsolidated joint ventures $ 74,940 $ 60,897 |
Operating Segments [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year Ended October 31, (In thousands) 2022 2021 2020 Revenues: Northeast $ 1,085,081 $ 871,091 $ 821,456 Southeast 323,961 285,658 232,730 West 1,450,632 1,544,397 1,217,086 Total homebuilding 2,859,674 2,701,146 2,271,272 Financial services 61,540 81,692 72,162 Corporate and unallocated 1,017 19 467 Total revenues $ 2,922,231 $ 2,782,857 $ 2,343,901 Income before income taxes: Northeast $ 177,406 $ 102,896 $ 63,136 Southeast 60,178 17,764 1,355 West 207,519 198,343 84,599 Total homebuilding 445,103 319,003 149,090 Financial services 19,121 37,563 32,102 Corporate and unallocated (1) (144,471 ) (166,705 ) (125,789 ) Income before income taxes $ 319,753 $ 189,861 $ 55,403 Year Ended October 31, (In thousands) 2022 2021 2020 Homebuilding interest expense: Northeast $ 31,552 $ 30,212 $ 39,089 Southeast 17,403 19,490 17,005 West 55,056 55,029 60,120 Total homebuilding 104,011 104,731 116,214 Corporate and unallocated 28,572 57,085 61,917 Financial services interest expense (income) (1) (213 ) (35 ) (35 ) Total interest expense, net $ 132,370 $ 161,781 $ 178,096 Year Ended October 31, (In thousands) 2022 2021 2020 Depreciation: Northeast $ 1,542 $ 1,459 $ 1,605 Southeast 291 214 327 West 1,298 1,811 1,500 Total homebuilding 3,131 3,484 3,432 Financial services 5 13 13 Corporate and unallocated 2,321 1,783 1,859 Total depreciation $ 5,457 $ 5,280 $ 5,304 Year Ended October 31, (In thousands) 2022 2021 2020 Net additions to property and equipment: Northeast $ 1,848 $ 1,271 $ 1,069 Southeast 229 256 102 West 1,841 1,174 1,622 Total homebuilding 3,918 2,701 2,793 Financial services 28 - - Corporate and unallocated 8,646 3,241 587 Total net additions to property and equipment $ 12,592 $ 5,942 $ 3,380 Year Ended October 31, (In thousands) 2022 2021 2020 Equity in earnings from unconsolidated joint ventures: Northeast $ 12,674 $ 2,958 $ 10,644 Southeast 16,359 2,061 820 West - 3,830 5,101 Total equity in earnings from unconsolidated joint ventures $ 29,033 $ 8,849 $ 16,565 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Payable Receivable [Table Text Block] | October 31, (In thousands) 2022 2021 State income taxes: Current $ 3,167 $ 3,851 Deferred (69,248 ) (90,070 ) Federal income taxes: Current - - Deferred (275,545 ) (335,608 ) Total $ (341,626 ) $ (421,827 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended October 31, (In thousands) 2022 2021 2020 Current income tax expense: Federal (1) $ - $ - $ - State (2) 13,377 7,722 4,475 Total current income tax expense: 13,377 7,722 4,475 Federal 60,064 (335,608 ) - State 20,822 (90,070 ) - Total deferred income tax expense (benefit): 80,886 (425,678 ) - Total $ 94,263 $ (417,956 ) $ 4,475 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | October 31, (In thousands) 2022 2021 Deferred tax assets: Inventory impairments $ 30,772 $ 34,973 Uniform capitalization of overhead 4,285 4,483 Warranty and legal reserves 5,668 5,671 Compensation 13,746 12,464 Deferred income 2,425 1,420 Interest expense 3,646 2,582 Restricted stock units 1,628 1,159 Stock options 818 1,009 Provision for losses 17,700 17,064 Joint venture loss - 743 Federal net operating losses 206,560 263,366 State net operating losses 150,832 177,163 Other 5,005 5,136 Total deferred tax assets 443,085 527,233 Deferred tax liabilities: Joint venture income (2,565 ) - Total deferred tax liabilities (2,565 ) - Valuation allowance (95,727 ) (101,555 ) Deferred tax assets, net $ 344,793 $ 425,678 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended October 31, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 9.8 4.0 10.6 Permanent differences, net 0.8 3.6 53.2 Deferred tax asset valuation allowance impact 0.0 (248.5 ) (83.3 ) Tax contingencies (0.1 ) (0.2 ) (0.5 ) Adjustments to prior years’ tax accruals (2.0 ) 0.0 7.0 Effective tax rate 29.5 % (220.1 )% 8.0 % |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | (In millions) 2022 2021 Unrecognized tax benefit—November 1, $ 0.5 $ 0.7 Gross increases—tax positions in current period - - Lapse of statute of limitations (0.3 ) (0.2 ) Unrecognized tax benefit—October 31, $ 0.2 $ 0.5 |
Note 12 - Reduction of Invent_2
Note 12 - Reduction of Inventory to Fair Value (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Inventory Impairment [Table Text Block] | (Dollars in millions) Year Ended October 31, 2022 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast - $ - $ - Southeast - - - West 1 8.4 10.6 Total 1 $ 8.4 $ 10.6 (Dollars in millions) Year Ended October 31, 2021 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast - $ - $ - Southeast 2 1.2 9.2 West 1 0.8 2.3 Total 3 $ 2.0 $ 11.5 (Dollars in millions) Year Ended October 31, 2020 Dollar Pre- Number of Amount of Impairment Communities Impairment Value (1) Northeast 2 $ 2.0 $ 4.8 Southeast - - - West - - - Total 2 $ 2.0 $ 4.8 |
Write Offs and Lots Walked Away From [Table Text Block] | Year Ended October 31, (In millions) 2022 2021 2020 Northeast $ 0.4 $ 0.3 $ 5.0 Southeast 0.9 0.2 0.8 West 4.4 1.1 1.0 Total $ 5.7 $ 1.6 $ 6.8 |
Note 13 - Per Share Calculati_2
Note 13 - Per Share Calculations (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended October 31, (In thousands, except per share data) 2022 2021 2020 Numerator: Net income $ 225,490 $ 607,817 $ 50,928 Less: preferred stock dividends (10,675 ) - - Less: undistributed earnings allocated to participating securities (19,702 ) (57,676 ) (4,652 ) Numerator for basic earnings per share $ 195,113 $ 550,141 $ 46,276 Plus: undistributed earnings allocated to participating securities 19,702 57,676 4,652 Less: undistributed earnings reallocated to participating securities (19,717 ) (58,687 ) (4,652 ) Numerator for diluted earnings per share $ 195,098 $ 549,130 $ 46,276 Denominator: Denominator for basic earnings per share – weighted average shares outstanding 6,437 6,287 6,189 Effect of dilutive securities: Stock-based payments 291 108 395 Denominator for diluted earnings per share – weighted-average shares outstanding 6,728 6,395 6,584 Basic earnings per share $ 30.31 $ 87.50 $ 7.48 Diluted earnings per share $ 29.00 $ 85.86 $ 7.03 |
Note 15 - Share-Based Compens_2
Note 15 - Share-Based Compensation Plans (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | October 31, Weighted-Average 2022 Exercise Price Stock options outstanding at beginning of period 206,234 $ 51.67 Granted - $ - Exercised (9,575 ) $ 51.50 Forfeited - $ - Expired (30,100 ) $ 71.97 Stock options outstanding at end of period 166,559 $ 48.02 Stock options exercisable at end of period 127,780 |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Weighted- Average Weighted- Remaining Number Average Contractual Range of Exercise Prices Outstanding Exercise Price Life $7.85 – $38.75 73,174 $ 9.54 6.62 $42.50 – $63.75 67,439 $ 54.16 4.56 $66.75 – $100.25 1,700 $ 66.75 2.61 $110.25 – $157.00 24,246 $ 145.73 0.86 166,559 $ 48.02 4.90 Weighted- Average Weighted- Remaining Number Average Contractual Range of Exercise Prices Exercisable Exercise Price Life $7.85 – $38.75 36,578 $ 9.58 6.62 $42.50 – $63.75 65,256 $ 54.34 4.52 $66.75 – $100.25 1,700 $ 66.75 2.61 $110.25 – $157.00 24,246 $ 145.73 0.86 127,780 $ 59.03 4.40 |
Schedule of Nonvested Share Activity [Table Text Block] | October 31, Weighted-Average Grant Date 2022 Fair Value Nonvested time-based at beginning of period 229,924 $ 26.51 Granted 63,159 $ 50.14 Vested (1) (113,684 ) $ 23.51 Forfeited (3,762 ) $ 39.49 Nonvested time-based at end of period 175,637 $ 33.43 October 31, Weighted-Average Grant Date 2022 Fair Value Nonvested performance-based at beginning of period 350,983 $ 35.60 Granted 335,794 $ 42.91 Vested (1) (179,265 ) $ 29.36 Forfeited (355 ) $ 73.50 Nonvested performance-based at end of period 507,157 $ 41.14 |
Note 16 - Warranty Costs (Table
Note 16 - Warranty Costs (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Year Ended October 31, (In thousands) 2022 2021 Balance, beginning of period $ 94,916 $ 86,417 Additions: Selling, general and administrative 8,495 10,419 Additions: Cost of sales 9,054 13,410 Charges incurred during the period (18,271 ) (14,342 ) Changes to pre-existing reserves 3,525 (988 ) Balance, end of period $ 97,719 $ 94,916 |
Note 20 - Investments in Unco_2
Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | October 31, 2022 Land (In thousands) Homebuilding Development Total Assets: Cash and cash equivalents $ 153,176 $ 868 $ 154,044 Inventories 441,140 - 441,140 Other assets 20,037 - 20,037 Total assets $ 614,353 $ 868 $ 615,221 Liabilities and equity: Accounts payable and accrued liabilities $ 471,813 $ 651 $ 472,464 Notes payable 34,880 - 34,880 Total liabilities 506,693 651 507,344 Equity of: Hovnanian Enterprises, Inc. 73,142 209 73,351 Others 34,518 8 34,526 Total equity 107,660 217 107,877 Total liabilities and equity $ 614,353 $ 868 $ 615,221 Debt to capitalization ratio 24 % 0 % 24 % October 31, 2021 Land (In thousands) Homebuilding Development Total Assets: Cash and cash equivalents $ 132,963 $ 1,972 $ 134,935 Inventories 442,347 - 442,347 Other assets 34,551 - 34,551 Total assets $ 609,861 $ 1,972 $ 611,833 Liabilities and equity: Accounts payable and accrued liabilities $ 386,117 $ 1,681 $ 387,798 Notes payable 73,994 - 73,994 Total liabilities 460,111 1,681 461,792 Equity of: Hovnanian Enterprises, Inc. 58,460 254 58,714 Others 91,290 37 91,327 Total equity 149,750 291 150,041 Total liabilities and equity $ 609,861 $ 1,972 $ 611,833 Debt to capitalization ratio 33 % 0 % 33 % For The Year Ended October 31, 2022 Land (In thousands) Homebuilding Development Total Revenues $ 351,767 $ 113 $ 351,880 Cost of sales and expenses (318,788 ) (37 ) (318,825 ) Joint venture net income $ 32,979 $ 76 $ 33,055 Our share of net income $ 29,002 $ 31 $ 29,033 For The Year Ended October 31, 2021 Land (In thousands) Homebuilding Development Total Revenues $ 347,898 $ 691 $ 348,589 Cost of sales and expenses (335,077 ) (209 ) (335,286 ) Joint venture net income $ 12,821 $ 482 $ 13,303 Our share of net income $ 8,754 $ 195 $ 8,949 For The Year Ended October 31, 2020 Land (In thousands) Homebuilding Development Total Revenues $ 435,077 $ 13,024 $ 448,101 Cost of sales and expenses (420,977 ) (11,225 ) (432,202 ) Joint venture net income $ 14,100 $ 1,799 $ 15,899 Our share of net income $ 16,904 $ 17 $ 16,921 |
Note 21 - Fair Value of Finan_2
Note 21 - Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value at Fair Value at Fair Value October 31, October 31, (In thousands) Hierarchy 2022 2021 Mortgage loans held for sale (1) Level 2 $ 110,548 $ 151,059 Forward contracts Level 2 752 (107 ) Total $ 111,300 $ 150,952 Interest rate lock commitments Level 3 - 152 Total $ 111,300 $ 151,104 |
Fair Value Option, Disclosures [Table Text Block] | Year Ended October 31, 2022 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Change in fair value included in financial services revenue $ 385 $ - $ 752 Year Ended October 31, 2021 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Change in fair value included in financial services revenue $ 4,580 $ 152 $ (107 ) Year Ended October 31, 2020 Mortgage Interest Rate Loans Held Lock Forward (In thousands) for Sale Commitments Contracts Change in fair value included in financial services revenue $ 3,928 $ 11 $ (28 ) |
Fair Value Measurements, Nonrecurring [Table Text Block] | Year Ended October 31, 2022 (In thousands) Fair Pre- Value Impairment Hierarchy Amount Total Losses Fair Value Land and land options held for future development or sale Level 3 $ 10,558 $ (8,374 ) $ 2,184 Year Ended October 31, 2021 (In thousands) Fair Pre- Value Impairment Hierarchy Amount Total Losses Fair Value Sold and unsold homes and lots under development Level 3 $ 11,522 $ (2,009 ) $ 9,513 |
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% November 15, 2025 - - 165,844 165,844 7.75% February 15, 2026 - - 240,393 240,393 10.5% February 15, 2026 - - 272,966 272,966 11.25% February 15, 2026 - - 162,566 162,566 Senior Notes: 13.5% February 1, 2026 - - 94,282 94,282 5.0% February 1, 2040 - - 55,654 55,654 Senior Credit Facilities: Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 31,301 31,301 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 - - 85,247 85,247 Total fair value $ - $ - $ 1,108,253 $ 1,108,253 (In thousands) Level 1 Level 2 Level 3 Total Senior Secured Notes: 10.0% November 15, 2025 - - 167,348 167,348 7.75% February 15, 2026 - - 366,426 366,426 10.5% February 15, 2026 - - 300,913 300,913 11.25% February 15, 2026 - - 162,548 162,548 Senior Notes: 13.5% February 1, 2026 - - 92,331 92,331 5.0% February 1, 2040 - - 63,084 63,084 Senior Credit Facilities: Senior Unsecured Term Loan Credit Facility due February 1, 2027 - - 28,196 28,196 Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 - - 86,046 86,046 Total fair value $ - $ - $ 1,266,892 $ 1,266,892 |
Supplemental Disclosure of No_2
Supplemental Disclosure of Noncash Investing and Financing Activities (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||||||||
Oct. 31, 2021 | Oct. 31, 2022 | Aug. 02, 2021 | Oct. 31, 2020 | Apr. 30, 2020 | Mar. 25, 2020 | Jan. 31, 2020 | Dec. 10, 2019 | Oct. 31, 2019 | |
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Face Amount | $ 158.5 | $ 158.5 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 10% | 10% | 10% | |||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 10% | 10% | 10% | |||||
Debt Instrument Exchanged, Face Amount | $ 23.2 | ||||||||
Debt Instrument, Exchange, Amount Issued | $ 59.1 | ||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | |||||||
Debt Instrument Exchanged, Face Amount | 141.7 | ||||||||
Senior Unsecured Term Loan Credit Facility [Member] | |||||||||
Debt Instrument Exchanged, Face Amount | 163 | $ 163 | |||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | |||||||||
Debt Instrument, Face Amount | 81.5 | $ 81.5 | |||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | |||||||
Debt Instrument, Exchange, Amount Issued | $ 59.1 | $ 59.1 | |||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | |||||||
Accounting Standards Update 2016-02 [Member] | |||||||||
Operating Lease, Right-of-Use Asset | 23.3 | ||||||||
Operating Lease, Liability, Total | $ 24.4 | ||||||||
Acquisition of Remaining Assets of One of Joint Ventures [Member] | |||||||||
Reduction in Investment from Purchase of Remining Interest in Joint Venture | $ 26.6 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - Consolidated Joint Venture [Member] | Oct. 31, 2022 | Oct. 31, 2021 |
Noncontrolling Interest, Ownership Percentage by Parent | 100% | 99% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1% | 1% |
Subsidiaries [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 80% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20% |
Note 2 - Business (Details Text
Note 2 - Business (Details Textual) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Number of Reportable Segments | 7 | 7 | |
Number of Communities | 121 | ||
Homebuilding [Member] | |||
Number of Reportable Segments | 3 | 6 | |
Homebuilding [Member] | Segment Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Concentration Risk, Percentage | 98% | 97% | 97% |
Note 3 - Summary of Significa_3
Note 3 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | ||
Cash Equivalents, at Carrying Value, Total | $ 13,400 | $ 15,700 | ||
Number of Communities Mothballed | 2 | 6 | ||
Inventory Real Estate Mothballed Communities | $ 1,400 | $ 4,300 | ||
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges | 20,300 | 57,500 | ||
Inventory, Land Held-for-sale | 0 | 0 | ||
General Liability Insurance Deductible | 25,000 | 20,000 | ||
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims | 25,000 | 20,000 | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | 47,343 | 77,716 | $ 103,801 |
Advertising Expense | 10,600 | 9,800 | 12,900 | |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 12,700 | 10,500 | ||
Accounts Receivable, Allowance for Credit Loss, Recovery | 300 | 1,500 | ||
Accounts Receivable, Credit Loss Expense (Reversal) | (2,500) | 0 | ||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||
Qualifying Assets Not Exceeding Debt [Member] | ||||
Real Estate Inventory Expense Not Eligible for Capitalization | 28,600 | 57,100 | 61,900 | |
Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member] | ||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 18,800 | $ 20,600 | $ 41,900 | |
Maximum [Member] | ||||
Joint Venture Voting Interest Percentage | 50% | 50% | 50% | |
CALIFORNIA | ||||
Bodily Injury Insurance Deductible | $ 500 | $ 500 | ||
CALIFORNIA | Maximum [Member] | ||||
Bodily Injury Insurance Limit | 5,000 | 5,000 | ||
All States Other Than California [Member] | ||||
Bodily Injury Insurance Deductible | 250 | 250 | ||
All States Other Than California [Member] | Maximum [Member] | ||||
Bodily Injury Insurance Limit | $ 5,000 | 5,000 | ||
Homebuilding [Member] | ||||
Number of Mothballed Communities Reactivated | 4 | |||
Liabilities from Inventory Real Estate Not Owned | $ 202,492 | 62,762 | ||
Homebuilding [Member] | Model Sale Leaseback Financing Arrangements [Member] | ||||
Inventory Real Estate, Other Options | 48,500 | 32,500 | ||
Liabilities from Inventory Real Estate Not Owned | 51,200 | 31,500 | ||
Homebuilding [Member] | Land Banking Arrangement [Member] | ||||
Inventory Real Estate, Other Options | 260,100 | 66,200 | ||
Liabilities from Inventory Real Estate Not Owned | $ 151,300 | $ 31,300 | ||
[1]Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484[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 $28.6 million, $57.1 million and $61.9 million for the years ended October 31, 2022, 2021 and 2020, 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 as incurred. This component of other interest was $18.8 million, $20.6 million and $41.9 million for the years ended October 31, 2022, 2021 and 2020, respectively. |
Note 3 - Summary of Significa_4
Note 3 - Summary of Significant Accounting Policies - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||||
Interest capitalized at beginning of year | $ 58,159 | [1] | $ 65,010 | [1] | $ 71,264 | |
Plus interest incurred(1) | [2] | 134,024 | 155,514 | 176,457 | ||
Less cost of sales interest expensed | (85,240) | (84,100) | (74,330) | |||
Less other interest expensed(2)(3) | [3],[4] | 47,343 | 77,716 | 103,801 | ||
Less interest contributed to unconsolidated joint venture(4) | [5] | 0 | (3,667) | (4,580) | ||
Plus interest acquired from unconsolidated joint venture(5) | [6] | 0 | 3,118 | 0 | ||
Interest capitalized at end of year(6) | [1] | $ 59,600 | $ 58,159 | $ 65,010 | ||
[1]Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.[2]Data does not include interest incurred by our mortgage and finance subsidiaries.[3]Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484[4]Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $28.6 million, $57.1 million and $61.9 million for the years ended October 31, 2022, 2021 and 2020, 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 as incurred. This component of other interest was $18.8 million, $20.6 million and $41.9 million for the years ended October 31, 2022, 2021 and 2020, respectively.[5]Represents capitalized interest which was included as part of the assets contributed to joint ventures, as discussed in Note 20. There was no impact to the Consolidated Statement of Operations as a result of these transactions.[6]Represents capitalized interest which was included as part of the assets purchased from joint ventures, as discussed in Note 20. There was no impact to the Consolidated Statement of Operations as a result of these transactions. |
Note 3 - Summary of Significa_5
Note 3 - Summary of Significant Accounting Policies - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||
Other interest expensed | [1],[2] | $ 47,343 | $ 77,716 | $ 103,801 |
Interest paid by our mortgage and finance subsidiaries | 1,790 | 2,102 | 2,165 | |
(Increase) decrease in accrued interest | (4,261) | 7,409 | (16,482) | |
Cash paid for interest, net of capitalized interest | $ 44,872 | $ 87,227 | $ 89,484 | |
[1]Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484[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 $28.6 million, $57.1 million and $61.9 million for the years ended October 31, 2022, 2021 and 2020, 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 as incurred. This component of other interest was $18.8 million, $20.6 million and $41.9 million for the years ended October 31, 2022, 2021 and 2020, respectively. |
Note 4 - Leases (Details Textua
Note 4 - Leases (Details Textual) $ in Millions | 12 Months Ended |
Oct. 31, 2022 USD ($) | |
Increase (Decrease) in Operating Lease Liability | $ 9.9 |
Lessee, Operating Lease, Lease Not Yet Commenced | 13.7 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 9.9 |
Minimum [Member] | Office Leases [Member] | |
Lessee, Operating Lease, Term of Contract (Year) | 3 years |
Maximum [Member] | Office Leases [Member] | |
Lessee, Operating Lease, Term of Contract (Year) | 5 years |
Note 4 - Leases - Lease Cost (D
Note 4 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Operating lease costs | $ 10,483 | $ 10,521 | $ 10,507 |
Cash payments on lease liabilities | $ 9,605 | $ 9,598 | $ 9,257 |
Weighted-average remaining lease term (in years) (Year) | 3 years 6 months | 3 years 1 month 6 days | |
Weighted-average discount rate | 9.50% | 9.40% | |
Prepaid Expenses and Other Current Assets [Member] | |||
ROU assets | $ 17,899 | $ 17,844 | |
Accounts Payable and Accrued Liabilities [Member] | |||
Lease liabilities | $ 18,862 | $ 18,952 |
Note 4 - Leases - Maturities of
Note 4 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | |
2023 | $ 8,075 | ||
2024 | 5,892 | ||
2025 | 4,805 | ||
2026 | 3,161 | ||
2027 and thereafter | 1,820 | ||
Total operating lease payments (1) | [1] | 23,753 | |
Less: imputed interest | (4,891) | ||
Accounts Payable and Accrued Liabilities [Member] | |||
Operating Lease, Liability, Total | $ 18,862 | $ 18,952 | |
[1]Lease payments exclude $13.7 million of legally binding minimum lease payments for office leases signed but not yet commenced as of October 31, 2022. The related ROU asset and operating lease liability are not reflected on the Company's balance sheet as of October 31, 2022. |
Note 5 - Property, Plant and _3
Note 5 - Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Property, plant and equipment, gross | $ 77,721 | $ 67,295 |
Less: accumulated depreciation | (51,902) | (48,559) |
Property and equipment, net | 25,819 | 18,736 |
Land and Land Improvements [Member] | ||
Property, plant and equipment, gross | 1,639 | 1,639 |
Building [Member] | ||
Property, plant and equipment, gross | 9,497 | 9,497 |
Building Improvements [Member] | ||
Property, plant and equipment, gross | 22,220 | 15,478 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 4,363 | 4,214 |
Equipment, Including Capitalized Software [Member] | ||
Property, plant and equipment, gross | $ 40,002 | $ 36,467 |
Note 6 - Restricted Cash and _2
Note 6 - Restricted Cash and Customers' Deposits (Details Textual) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Mortgage Warehouse Lines of Credit [Member] | |||
Restricted Cash and Cash Equivalents, Total | $ 6,400 | $ 2,800 | |
Homebuilding [Member] | |||
Restricted Cash and Cash Equivalents, Total | 13,382 | 16,089 | $ 14,731 |
Financial Services [Member] | |||
Restricted Cash and Cash Equivalents, Total | 36,142 | 43,518 | $ 27,386 |
Financial Services [Member] | Customer Deposits [Member] | |||
Restricted Cash and Cash Equivalents, Total | 29,700 | 40,700 | |
Financial Services [Member] | Other Assets [Member] | |||
Restricted Cash and Cash Equivalents, Total | $ 36,100 | $ 43,500 |
Note 7 - Mortgage Loans Held _3
Note 7 - Mortgage Loans Held for Sale (Details Textual) $ in Millions | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) |
Number of Loans Reserved For | 14 | 14 |
Asset Pledged as Collateral without Right [Member] | ||
Financing Receivable, before Allowance for Credit Loss, Total | $ 92.5 | $ 136.5 |
Note 7 - Mortgage Loans Held _4
Note 7 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Loan origination reserves, beginning of period | $ 1,632 | $ 1,458 |
Provisions for losses during the period | 181 | 228 |
Adjustments to pre-existing provisions for losses from changes in estimates | (18) | (54) |
Loan origination reserves, end of period | $ 1,795 | $ 1,632 |
Note 8 - Mortgages (Details Tex
Note 8 - Mortgages (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
JP Morgan Chase Bank [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |
Warehouse Agreement Borrowings | $ 14,100 | $ 45,700 |
JP Morgan Chase Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Debt Instrument Variable Rate Basis Adjusted Secured Overnight Financing Rate SOFR | 3.81% | |
JP Morgan Chase Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
JP Morgan Chase Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.375% | |
Customers Bank [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |
Warehouse Agreement Borrowings | $ 43,100 | 40,500 |
Customers Bank [Member] | Bloomberg Short-term Bank Yield Index (BSBY) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | |
Customers Bank [Member] | Bloomberg Short-term Bank Yield Index (BSBY) [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |
Nonrecourse Mortgages Secured By Inventory [Member] | Mortgages [Member] | Homebuilding [Member] | ||
Secured Debt, Total | $ 144,805 | 125,089 |
Debt Instrument, Collateral Amount | $ 418,900 | $ 448,500 |
Debt, Weighted Average Interest Rate | 6.70% | 4.40% |
Comerica Master Repurchase Agreement [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000 | |
Warehouse Agreement Borrowings | 37,100 | $ 48,700 |
Line of Credit Facility, Maximum Borrowing Capacity Reversion After Initial Period | $ 50,000 | |
Comerica Master Repurchase Agreement [Member] | Bloomberg Short-term Bank Yield Index (BSBY) [Member] | ||
Debt Instrument Variable Rate Basis Floor Rate | 0.50% | |
Comerica Master Repurchase Agreement [Member] | Bloomberg Short-term Bank Yield Index (BSBY) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.875% | |
Comerica Master Repurchase Agreement [Member] | Bloomberg Short-term Bank Yield Index (BSBY) [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% |
Note 9 - Senior Notes and Cre_3
Note 9 - Senior Notes and Credit Facilities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Aug. 19, 2022 | Jul. 30, 2021 | Dec. 10, 2019 | Oct. 31, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Apr. 29, 2022 | Aug. 02, 2021 | Apr. 30, 2020 | Mar. 25, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | |||
Debt Covenant Fixed Charge Coverage Ratio Minimum | 2 | 2 | ||||||||||||||||
Secured Debt Leverage Ratio | 4 | 4 | ||||||||||||||||
Dividends, Preferred Stock, Total | $ 2,700 | $ 2,700 | $ 2,700 | $ 2,700 | $ 10,675 | |||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | (6,795) | $ (3,748) | $ 13,337 | |||||||||||||||
Long-term Debt, Gross | 1,154,852 | [1] | 1,154,852 | [1] | 1,254,852 | |||||||||||||
Senior Secured Notes [Member] | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | |||||||||||||||||
Line of Credit Facility, Unused Commitment Fee Rate | 1% | |||||||||||||||||
Line of Credit Facility, Interest Rate During Period | 7.75% | |||||||||||||||||
Long-term Debt, Gross | 853,093 | 853,093 | 953,093 | |||||||||||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Cash and Cash Equivalents Collateral [Member] | ||||||||||||||||||
Debt Instrument, Collateral Amount | 333,200 | 333,200 | ||||||||||||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Restricted Cash [Member] | ||||||||||||||||||
Debt Instrument, Collateral Amount | 6,100 | 6,100 | ||||||||||||||||
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] | Real Property [Member] | ||||||||||||||||||
Debt Instrument, Collateral Amount | 409,100 | 409,100 | ||||||||||||||||
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 | 87,300 | 87,300 | ||||||||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Senior Secured Notes [Member] | ||||||||||||||||||
Line of Credit Facility, Variable Rate Floor | 1% | |||||||||||||||||
Line of Credit Facility, Applicable Margin | 4.50% | |||||||||||||||||
Base Rate [Member] | Senior Secured Notes [Member] | ||||||||||||||||||
Line of Credit Facility, Applicable Margin | 3.50% | |||||||||||||||||
Senior Secured Revolving Credit Facility [Member] | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | $ 125,000 | 125,000 | $ 125,000 | ||||||||||||||
Line of Credit Facility, Unused Commitment Fee Rate | 1% | 1% | 1% | |||||||||||||||
Senior Secured Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||||||||||||
Line of Credit Facility, Variable Rate Floor | 1% | 1% | 1% | |||||||||||||||
Line of Credit Facility, Applicable Margin | 4.50% | 4.50% | 4.50% | |||||||||||||||
Senior Secured Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||||||||||||
Line of Credit Facility, Applicable Margin | 3.50% | 3.50% | 3.50% | |||||||||||||||
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | ||||||||||||||||||
Letters of Credit Outstanding, Amount | $ 6,000 | $ 6,000 | 9,300 | |||||||||||||||
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | Restricted Cash [Member] | ||||||||||||||||||
Debt Instrument, Collateral Amount | 6,100 | 6,100 | $ 9,900 | |||||||||||||||
The 8.0% Senior Notes Due 2027 [Member] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 26,000 | $ 26,000 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8% | 8% | ||||||||||||||||
The 7.75% 2026 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |||||||||||||||||
Debt Instrument, Redeemed, Face Amount | $ 100,000 | |||||||||||||||||
Repayments of Secured Debt | $ 105,500 | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (6,800) | |||||||||||||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 10% | 10% | 10% | ||||||||||||||
Debt Instrument, Redeemed, Face Amount | $ 111,200 | $ 111,200 | ||||||||||||||||
Repayments of Secured Debt | $ 111,700 | $ 21,400 | ||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | (300) | 4,100 | ||||||||||||||||
Debt Instrument Exchanged, Face Amount | $ 23,200 | |||||||||||||||||
Debt Instrument, Exchange, Amount Issued | $ 59,100 | |||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 25,500 | |||||||||||||||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | ||||||||||||||||
Debt Instrument, Redeemed, Face Amount | $ 69,700 | |||||||||||||||||
Repayments of Secured Debt | 71,900 | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (3,400) | |||||||||||||||||
Debt Instrument Exchanged, Face Amount | 141,700 | |||||||||||||||||
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% | |||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 158,500 | $ 158,500 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 10% | 10% | 10% | 10% | |||||||||||||
Long-term Debt, Gross | $ 158,502 | $ 158,502 | $ 158,502 | |||||||||||||||
Senior Unsecured Term Loan Credit Facility [Member] | ||||||||||||||||||
Debt Instrument Exchanged, Face Amount | $ 163,000 | $ 163,000 | ||||||||||||||||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 81,500 | $ 81,500 | ||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 9,200 | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt, Per Share, Excluding Taxes (in dollars per share) | $ 1.40 | |||||||||||||||||
The 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% | |||||||||||||||||
First Lien Notes [Member] | ||||||||||||||||||
Long-term Debt, Gross | $ 164,900 | |||||||||||||||||
Secured Term Loan Facility [Member] | ||||||||||||||||||
Long-term Debt, Gross | $ 148,800 | |||||||||||||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | ||||||||||||||||
Long-term Debt, Gross | $ 103,100 | |||||||||||||||||
Debt Instrument, Exchange, Amount Issued | $ 59,100 | $ 59,100 | ||||||||||||||||
Debt Instrument, Maximum Secured Amount | $ 162,300 | |||||||||||||||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | 11.25% | |||||||||||||||
Long-term Debt, Gross | $ 162,269 | $ 162,269 | $ 162,269 | |||||||||||||||
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% | |||||||||||||||||
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% | 7.75% | |||||||||||||||
Long-term Debt, Gross | $ 250,000 | $ 250,000 | $ 350,000 | |||||||||||||||
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% | |||||||||||||||||
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 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% | 10.50% | |||||||||||||||
Long-term Debt, Gross | $ 282,322 | $ 282,322 | $ 282,322 | |||||||||||||||
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% | |||||||||||||||||
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 13.5% Senior Notes Due 2026 [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | 13.50% | ||||||||||||||||
The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||||
The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||||
The 5.0% Senior Notes due 2040 [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | ||||||||||||||||
The 5.0% Senior Notes due 2040 [Member] | Unsecured Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||||
[1]Does not include our $125.0 million Senior Secured Revolving Credit Facility under which there were no borrowings outstanding as of October 31, 2022. |
Note 9 - Senior Notes and Cre_4
Note 9 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2019 | ||
Long-term Debt, Gross | $ 1,154,852 | [1] | $ 1,254,852 | ||
Net (discounts) premiums | 4,079 | 10,769 | |||
Unamortized debt issuance costs | (12,384) | (17,248) | |||
Total senior notes and credit facilities, net of discounts, premiums and unamortized debt issuance costs | 1,146,547 | 1,248,373 | |||
Senior Secured Notes [Member] | |||||
Long-term Debt, Gross | 853,093 | 953,093 | |||
Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||
Long-term Debt, Gross | 180,710 | 180,710 | |||
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | |||||
Long-term Debt, Gross | 39,551 | 39,551 | |||
Senior Secured Revolving Credit Facility [Member] | |||||
Long-term Debt, Gross | [2] | 0 | 0 | ||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | |||||
Long-term Debt, Gross | 158,502 | 158,502 | |||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||
Long-term Debt, Gross | 250,000 | 350,000 | |||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||
Long-term Debt, Gross | 282,322 | 282,322 | |||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | |||||
Long-term Debt, Gross | $ 103,100 | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | |||||
Long-term Debt, Gross | 162,269 | 162,269 | |||
The 8.0% Senior Notes Due 2027 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||
Long-term Debt, Gross | [3] | 0 | 0 | ||
The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||
Long-term Debt, Gross | 90,590 | 90,590 | |||
The 5.0% Senior Notes due 2040 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | |||||
Long-term Debt, Gross | 90,120 | 90,120 | |||
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Senior Secured Term Loan [Member] | |||||
Long-term Debt, Gross | $ 81,498 | $ 81,498 | |||
[1]Does not include our $125.0 million Senior Secured Revolving Credit Facility under which there were no borrowings outstanding as of October 31, 2022.[2]At October 31, 2022, provides for up to $125.0 million in aggregate senior secured first lien revolving loans. In the fourth quarter of fiscal 2022, we amended our Secured Credit Facility, which amendments became effective in the first quarter of fiscal 2023. As amended, the revolving loans thereunder have a maturity of June 30, 2024 and borrowings bear interest, at K. Hovnanian’s option, at either (i) a term secured overnight financing rate (subject to a floor of 1.00%) plus an applicable margin of 4.50% or (ii) an alternate base rate plus an applicable margin of 3.50%. In addition, K. Hovnanian will pay an unused commitment fee on the undrawn revolving commitments at a rate of 1.00% per annum.[3]$26.0 million of 8.0% Senior Notes due 2027 (the "8.0% 2027 Notes") are owned by a wholly owned consolidated subsidiary of HEI. Therefore, in accordance with U.S. GAAP, such notes are not reflected on the Consolidated Balance Sheets of HEI. |
Note 9 - Senior Notes and Cre_5
Note 9 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) (Parentheticals) | 12 Months Ended | |||||
Oct. 31, 2022 | Oct. 31, 2021 | Apr. 30, 2020 | Jan. 31, 2020 | Dec. 10, 2019 | Oct. 31, 2019 | |
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | ||||||
Debt Instrument, Maturity Date | Feb. 01, 2027 | Feb. 01, 2027 | ||||
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 10% | 10% | 10% | ||
Debt Instrument, Maturity Date | Nov. 15, 2025 | Nov. 15, 2025 | ||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 8.0% Senior Notes Due 2027 [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8% | |||||
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 | 8% | 8% | ||||
Debt Instrument, Maturity Date | Nov. 01, 2027 | Nov. 01, 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. 01, 2026 | Feb. 01, 2026 | ||||
The 5.0% Senior Notes due 2040 [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | |||||
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% | 5% | ||||
Debt Instrument, Maturity Date | Feb. 01, 2040 | Feb. 01, 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 |
Note 9 - Senior Notes and Cre_6
Note 9 - Senior Notes and Credit Facilities - Future Maturities of Borrowings (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | ||
2023 | [1] | $ 0 | ||
2024 | [1] | 0 | ||
2025 | [1] | 0 | ||
2026 | 943,683 | |||
2027 | 39,551 | |||
Thereafter | [1] | 171,618 | ||
Total | $ 1,154,852 | [1] | $ 1,254,852 | |
[1]Does not include our $125.0 million Senior Secured Revolving Credit Facility under which there were no borrowings outstanding as of October 31, 2022. |
Note 10 - Operating and Repor_3
Note 10 - Operating and Reporting Segments (Details Textual) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | ||
Number of States in which Entity Operates | 14 | |||
Number of Reportable Segments | 7 | 7 | ||
Real Estate Inventory Expense Not Eligible for Capitalization | [1],[2] | $ 47,343 | $ 77,716 | $ 103,801 |
Gain (Loss) on Extinguishment of Debt, Total | (6,795) | (3,748) | 13,337 | |
Qualifying Assets Not Exceeding Debt [Member] | ||||
Real Estate Inventory Expense Not Eligible for Capitalization | 28,600 | 57,100 | 61,900 | |
Corporate, Non-Segment [Member] | ||||
General and Administrative Expense, Total | 102,600 | 106,700 | 80,500 | |
Gain (Loss) on Extinguishment of Debt, Total | (6,800) | (3,700) | 13,300 | |
Other Nonoperating Income (Expense), Total | (6,500) | 800 | 3,300 | |
Corporate, Non-Segment [Member] | Qualifying Assets Not Exceeding Debt [Member] | ||||
Real Estate Inventory Expense Not Eligible for Capitalization | $ 28,600 | $ 57,100 | $ 61,900 | |
Homebuilding [Member] | ||||
Number of Reportable Segments | 3 | 6 | ||
[1]Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Year Ended October 31, October 31, October 31, (In thousands) 2022 2021 2020 Other interest expensed $ 47,343 $ 77,716 $ 103,801 Interest paid by our mortgage and finance subsidiaries 1,790 2,102 2,165 (Increase) decrease in accrued interest (4,261 ) 7,409 (16,482 ) Cash paid for interest, net of capitalized interest $ 44,872 $ 87,227 $ 89,484[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 $28.6 million, $57.1 million and $61.9 million for the years ended October 31, 2022, 2021 and 2020, 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 as incurred. This component of other interest was $18.8 million, $20.6 million and $41.9 million for the years ended October 31, 2022, 2021 and 2020, respectively. |
Note 10 - Operating and Repor_4
Note 10 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2022 | ||
Revenues, Total | $ 2,922,231 | $ 2,782,857 | $ 2,343,901 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 319,753 | 189,861 | 55,403 | $ 565,000 | |
Total interest expense, net | 132,370 | 161,781 | 178,096 | ||
Total depreciation | 5,457 | 5,280 | 5,304 | ||
Net additions to operating properties and equipment | 12,592 | 5,942 | 3,380 | ||
Income from unconsolidated joint ventures | 29,033 | 8,849 | 16,565 | ||
Corporate, Non-Segment [Member] | |||||
Revenues, Total | 1,017 | 19 | 467 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | [1] | (144,471) | (166,705) | (125,789) | |
Total interest expense, net | 28,572 | 57,085 | 61,917 | ||
Total depreciation | 2,321 | 1,783 | 1,859 | ||
Net additions to operating properties and equipment | 8,646 | 3,241 | 587 | ||
Homebuilding [Member] | |||||
Revenues, Total | 2,860,691 | 2,701,165 | 2,271,739 | ||
Homebuilding [Member] | Operating Segments [Member] | |||||
Revenues, Total | 2,859,674 | 2,701,146 | 2,271,272 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 445,103 | 319,003 | 149,090 | ||
Total interest expense, net | 104,011 | 104,731 | 116,214 | ||
Total depreciation | 3,131 | 3,484 | 3,432 | ||
Net additions to operating properties and equipment | 3,918 | 2,701 | 2,793 | ||
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | |||||
Revenues, Total | 1,085,081 | 871,091 | 821,456 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 177,406 | 102,896 | 63,136 | ||
Total interest expense, net | 31,552 | 30,212 | 39,089 | ||
Total depreciation | 1,542 | 1,459 | 1,605 | ||
Net additions to operating properties and equipment | 1,848 | 1,271 | 1,069 | ||
Income from unconsolidated joint ventures | 12,674 | 2,958 | 10,644 | ||
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | |||||
Revenues, Total | 323,961 | 285,658 | 232,730 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 60,178 | 17,764 | 1,355 | ||
Total interest expense, net | 17,403 | 19,490 | 17,005 | ||
Total depreciation | 291 | 214 | 327 | ||
Net additions to operating properties and equipment | 229 | 256 | 102 | ||
Income from unconsolidated joint ventures | 16,359 | 2,061 | 820 | ||
Homebuilding [Member] | West [Member] | Operating Segments [Member] | |||||
Revenues, Total | 1,450,632 | 1,544,397 | 1,217,086 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 207,519 | 198,343 | 84,599 | ||
Total interest expense, net | 55,056 | 55,029 | 60,120 | ||
Total depreciation | 1,298 | 1,811 | 1,500 | ||
Net additions to operating properties and equipment | 1,841 | 1,174 | 1,622 | ||
Income from unconsolidated joint ventures | 0 | 3,830 | 5,101 | ||
Financial Services [Member] | |||||
Revenues, Total | 61,540 | 81,692 | 72,162 | ||
Financial Services [Member] | Operating Segments [Member] | |||||
Revenues, Total | 61,540 | 81,692 | 72,162 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 19,121 | 37,563 | 32,102 | ||
Financial services interest expense | [2] | (213) | (35) | (35) | |
Total depreciation | 5 | 13 | 13 | ||
Net additions to operating properties and equipment | $ 28 | $ 0 | $ 0 | ||
[1]Corporate and unallocated for the year ended October 31, 2022 included corporate general and administrative expenses of $102.6 million, interest expense of $28.6 million (a component of Other interest in our Consolidated Statements of Operations), loss on extinguishment of debt of $6.8 million and $6.5 million of other expenses. Corporate and unallocated for the year ended October 31, 2021 included corporate general and administrative expenses of $106.7 million, interest expense of $57.1 million, loss on extinguishment of debt of $3.7 million and $0.8 million of other income. Corporate and unallocated for the year ended October 31, 2020 included corporate general and administrative expenses of $80.5 million, interest expense of $61.9 million, gain on extinguishment of debt of $13.3 million and $3.3 million of other income.[2]Financial services interest expenses are included in the Financial services lines on the Consolidated Statements of Operations in the respective revenues and expenses sections. |
Note 10 - Operating and Repor_5
Note 10 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | |
Assets | $ 2,562,030 | $ 2,320,508 | |
Investments in and advances to unconsolidated joint ventures | 74,940 | 60,897 | |
Corporate, Non-Segment [Member] | |||
Assets | 741,555 | 725,857 | |
Investments in and advances to unconsolidated joint ventures | 1,874 | 1,146 | |
Homebuilding [Member] | |||
Assets | 2,061,244 | 1,692,072 | |
Investments in and advances to unconsolidated joint ventures | 74,940 | 60,897 | |
Homebuilding [Member] | Operating Segments [Member] | |||
Assets | 1,664,482 | 1,391,893 | |
Investments in and advances to unconsolidated joint ventures | 73,066 | 59,751 | |
Homebuilding [Member] | Northeast [Member] | Operating Segments [Member] | |||
Assets | 530,884 | 491,507 | |
Investments in and advances to unconsolidated joint ventures | 20,241 | 18,920 | |
Homebuilding [Member] | Southeast [Member] | Operating Segments [Member] | |||
Assets | 330,894 | 257,044 | |
Investments in and advances to unconsolidated joint ventures | 52,651 | 40,563 | |
Homebuilding [Member] | West [Member] | Operating Segments [Member] | |||
Assets | 802,704 | 643,342 | |
Investments in and advances to unconsolidated joint ventures | 174 | 268 | |
Financial Services [Member] | |||
Assets | 155,993 | 202,758 | |
Financial Services [Member] | Operating Segments [Member] | |||
Assets | [1] | $ 155,993 | $ 202,758 |
[1]Deferred tax assets for the Financial services segment are included in the Deferred tax assets, net line on the Condensed Consolidated Balance Sheets. |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | |||||||
Apr. 29, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2022 | Aug. 02, 2021 | Jul. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2020 | |
Income Tax Expense (Benefit), Total | $ 94,263 | $ (417,956) | $ 4,475 | ||||||
Deferred Tax Assets, Valuation Allowance | 95,727 | 101,555 | $ 95,727 | ||||||
Contract Backlog | 1,300,000 | 1,300,000 | |||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 319,753 | 189,861 | 55,403 | 565,000 | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 100 | 300 | 100 | ||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 128 | 84 | $ 60 | ||||||
Unrecognized Tax Benefits, Period Increase (Decrease), Total | 200 | ||||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 200 | 500 | 200 | ||||||
The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Redeemed, Face Amount | $ 111,200 | $ 111,200 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 10% | 10% | 10% | |||||
The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Redeemed, Face Amount | $ 69,700 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | 10.50% | |||||||
The 7.75% 2026 Notes [Member] | Senior Secured Notes [Member] | |||||||||
Debt Instrument, Redeemed, Face Amount | $ 100,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||||||||
Reduction in Annual Interest Resulting from Debt Payoffs | $ 23,000 | ||||||||
Federal Deferred Tax Assets Related to NOLs and Other Matters [Member] | |||||||||
Deferred Tax Assets, Valuation Allowance | $ 396,500 | ||||||||
Deferred Tax Assets Related to State NOLs [Member] | |||||||||
Deferred Tax Assets, Valuation Allowance | 181,000 | ||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 78,100 | ||||||||
Domestic Tax Authority [Member] | |||||||||
Operating Income (Loss), Total | (306,000) | (173,800) | (183,000) | ||||||
Operating Income (Loss), Tax Effect | 64,300 | 36,500 | 38,400 | ||||||
Income Tax Expense (Benefit), Total | $ 60,064 | (335,608) | 0 | ||||||
Open Tax Year | 2018 2019 2020 2021 | ||||||||
Domestic Tax Authority [Member] | Between 2029 and 2038 [Member] | |||||||||
Operating Loss Carryforwards | $ 909,600,000 | 909,600,000 | |||||||
Domestic Tax Authority [Member] | Indefinite Tax Period [Member] | |||||||||
Operating Loss Carryforwards | 15,700 | 15,700 | |||||||
State and Local Jurisdiction [Member] | |||||||||
Operating Income (Loss), Total | (80,100) | (55,700) | (72,500) | ||||||
Income Tax Expense (Benefit), Total | 34,199 | $ (82,348) | $ 4,475 | ||||||
Operating Loss Carryforwards | 2,300,000 | 2,300,000 | |||||||
State and Local Jurisdiction [Member] | Indefinite Tax Period [Member] | |||||||||
Operating Loss Carryforwards | 51,500 | 51,500 | |||||||
State and Local Jurisdiction [Member] | Between 2023 and 2027 [Member] | |||||||||
Operating Loss Carryforwards | 411,400 | 411,400 | |||||||
State and Local Jurisdiction [Member] | Between 2028 and 2032 [Member] | |||||||||
Operating Loss Carryforwards | 1,400,000 | 1,400,000 | |||||||
State and Local Jurisdiction [Member] | Between 2033 and 2037 [Member] | |||||||||
Operating Loss Carryforwards | 369,700 | 369,700 | |||||||
State and Local Jurisdiction [Member] | Between 2038 and 2042 [Member] | |||||||||
Operating Loss Carryforwards | $ 73,700 | $ 73,700 |
Note 11 - Income Taxes - Income
Note 11 - Income Taxes - Income Taxes Payable (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Deferred | $ (344,793) | $ (425,678) |
Total | (341,626) | (421,827) |
State and Local Jurisdiction [Member] | ||
Current | 3,167 | 3,851 |
Deferred | (69,248) | (90,070) |
Domestic Tax Authority [Member] | ||
Current | 0 | 0 |
Deferred | $ (275,545) | $ (335,608) |
Note 11 - Income Taxes - Provis
Note 11 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||
Federal (1) | [1] | $ 0 | $ 0 | $ 0 |
State (2) | [2] | 13,377 | 7,722 | 4,475 |
Total current income tax expense: | 13,377 | 7,722 | 4,475 | |
Federal | 60,064 | (335,608) | 0 | |
State | 20,822 | (90,070) | 0 | |
Total deferred income tax expense (benefit): | 80,886 | (425,678) | 0 | |
Total | $ 94,263 | $ (417,956) | $ 4,475 | |
[1]The current federal income tax expense is net of the use of federal net operating losses totaling $306.0 million (tax effected $64.3 million), $173.8 million (tax effected $36.5 million) and $183.0 million (tax effected $38.4 million) for the years ended October 31, 2022, 2021 and 2020, respectively.[2]The current state income tax expense is net of the use of state net operating losses totaling $80.1 million, $55.7 million and $72.5 million for the years ended October 31, 2022, 2021 and 2020, respectively. |
Note 11 - Income Taxes - Deferr
Note 11 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Inventory impairments | $ 30,772 | $ 34,973 |
Uniform capitalization of overhead | 4,285 | 4,483 |
Warranty and legal reserves | 5,668 | 5,671 |
Compensation | 13,746 | 12,464 |
Deferred income | 2,425 | 1,420 |
Interest expense | 3,646 | 2,582 |
Restricted stock units | 1,628 | 1,159 |
Other | 5,005 | 5,136 |
Joint venture loss | 0 | 743 |
Federal net operating losses | 206,560 | 263,366 |
State net operating losses | 150,832 | 177,163 |
Total deferred tax assets | 443,085 | 527,233 |
Joint venture income | (2,565) | 0 |
Total deferred tax liabilities | (2,565) | 0 |
Valuation allowance | (95,727) | (101,555) |
Deferred tax assets, net | 344,793 | 425,678 |
Provision for Losses [Member] | ||
Other | 17,700 | 17,064 |
Share-Based Payment Arrangement, Option [Member] | ||
Restricted stock units | $ 818 | $ 1,009 |
Note 11 - Income Taxes - Effect
Note 11 - Income Taxes - Effective Tax Rate (Details) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Federal statutory income tax rate | 21% | 21% | 21% |
State income taxes, net of federal income tax benefit | 9.80% | 4% | 10.60% |
Permanent differences, net | 0.80% | 3.60% | 53.20% |
Deferred tax asset valuation allowance impact | 0% | (248.50%) | (83.30%) |
Tax contingencies | (0.10%) | (0.20%) | (0.50%) |
Adjustments to prior years’ tax accruals | (2.00%) | 0% | 7% |
Effective tax rate | 29.50% | (220.10%) | 8% |
Note 11 - Income Taxes - Unreco
Note 11 - Income Taxes - Unrecognized Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Unrecognized tax benefit—November 1, | $ 0.5 | $ 0.7 |
Gross increases—tax positions in current period | 0 | 0 |
Lapse of statute of limitations | (0.3) | (0.2) |
Unrecognized tax benefit—October 31, | $ 0.2 | $ 0.5 |
Note 12 - Reduction of Invent_3
Note 12 - Reduction of Inventory to Fair Value (Details Textual) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | |
Number of Communities Evaluated for Impairment | 374 | 374 | 354 |
Number of Communities Performed Detailed Impairment Calculations | 1 | 3 | 3 |
Impairment of Real Estate | $ 8.4 | $ 2 | $ 2 |
Land Option Write Offs | 5.7 | 1.6 | 6.8 |
Homebuilding [Member] | |||
Carrying Value of Communities Tested for Impairment | 10.6 | 11.5 | 5.4 |
Impairment of Real Estate | $ 8.4 | $ 2 | $ 2 |
Number of Communities Impaired | 1 | 3 | 2 |
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow that Did Not Exceed Carrying Amount By Less Than 20 Percent | 1 | ||
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount by Less than 20 Percent | $ 0.6 | ||
Percentage Undiscounted Cash Flow Exceeds Carrying Amount | 20% | ||
Land Option Write Offs | $ 5.7 | $ 1.6 | $ 6.8 |
Homebuilding [Member] | Measurement Input, Discount Rate [Member] | Minimum [Member] | |||
Inventory, Measurement Input | 17.3 | 17.3 | |
Homebuilding [Member] | Measurement Input, Discount Rate [Member] | Maximum [Member] | |||
Inventory, Measurement Input | 19.3 | 19.3 |
Note 12 - Reduction of Invent_4
Note 12 - Reduction of Inventory to Fair Value - Inventory Impairments by Homebuilding Segment (Details) $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | ||
Dollar amount of impairment | $ 8.4 | $ 2 | $ 2 | |
Homebuilding [Member] | ||||
Number of communities | 1 | 3 | 2 | |
Dollar amount of impairment | $ 8.4 | $ 2 | $ 2 | |
Pre-impairment value | [1] | $ 10.6 | $ 11.5 | $ 4.8 |
Homebuilding [Member] | Northeast [Member] | ||||
Number of communities | 0 | 0 | 2 | |
Dollar amount of impairment | $ 0 | $ 0 | $ 2 | |
Pre-impairment value | [1] | $ 0 | $ 0 | $ 4.8 |
Homebuilding [Member] | Southeast [Member] | ||||
Number of communities | 0 | 2 | 0 | |
Dollar amount of impairment | $ 0 | $ 1.2 | $ 0 | |
Pre-impairment value | [1] | $ 0 | $ 9.2 | $ 0 |
Homebuilding [Member] | West [Member] | ||||
Number of communities | 1 | 1 | 0 | |
Dollar amount of impairment | $ 8.4 | $ 0.8 | $ 0 | |
Pre-impairment value | [1] | $ 10.6 | $ 2.3 | $ 0 |
[1]Represents carrying value, net of prior period impairments, if any, at the time of recording the applicable period's impairments. |
Note 12 - Reduction of Invent_5
Note 12 - Reduction of Inventory to Fair Value - Write-offs and Lots Walked Away From (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Amount of write-offs | $ 5.7 | $ 1.6 | $ 6.8 |
Homebuilding [Member] | |||
Amount of write-offs | 5.7 | 1.6 | 6.8 |
Homebuilding [Member] | Northeast [Member] | |||
Amount of write-offs | 0.4 | 0.3 | 5 |
Homebuilding [Member] | Southeast [Member] | |||
Amount of write-offs | 0.9 | 0.2 | 0.8 |
Homebuilding [Member] | West [Member] | |||
Amount of write-offs | $ 4.4 | $ 1.1 | $ 1 |
Note 13 - Per Share Calculati_3
Note 13 - Per Share Calculations (Details Textual) - shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Out of the Money Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 26 | 25 | 200 |
Note 13 - Per Share Calculati_4
Note 13 - Per Share Calculation - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Net income | $ 225,490 | $ 607,817 | $ 50,928 |
Less: preferred stock dividends | (10,675) | 0 | 0 |
Less: undistributed earnings allocated to participating securities | (19,702) | (57,676) | (4,652) |
Numerator for basic earnings per share | 195,113 | 550,141 | 46,276 |
Plus: undistributed earnings allocated to participating securities | 19,702 | 57,676 | 4,652 |
Less: undistributed earnings reallocated to participating securities | (19,717) | (58,687) | (4,652) |
Numerator for diluted earnings per share | $ 195,098 | $ 549,130 | $ 46,276 |
Denominator for basic earnings per share – weighted average shares outstanding (in shares) | 6,437 | 6,287 | 6,189 |
Stock-based payments (in shares) | 291 | 108 | 395 |
Denominator for diluted earnings per share – weighted-average shares outstanding (in shares) | 6,728 | 6,395 | 6,584 |
Basic earnings per share (in dollars per share) | $ 30.31 | $ 87.50 | $ 7.48 |
Diluted earnings per share (in dollars per share) | $ 29 | $ 85.86 | $ 7.03 |
Note 14 - Capital Stock (Detail
Note 14 - Capital Stock (Details Textual) | 12 Months Ended | |||||||
Jul. 12, 2005 $ / shares shares | Oct. 31, 2022 USD ($) $ / shares shares | Oct. 31, 2021 USD ($) $ / shares shares | Oct. 31, 2020 USD ($) $ / shares shares | Sep. 01, 2022 USD ($) | Jan. 11, 2018 | Aug. 15, 2008 | Jul. 03, 2001 shares | |
Common Stock Dividends Percent of Increase from Class A to Class B | 110% | |||||||
Conversion of Stock From Class B to Class A Conversion Ratio | 1 | |||||||
Shareholder Ownership Percentage of Increase | 50% | |||||||
Preferred Stock, Shares Issued, Total (in shares) | shares | 5,600 | 5,600 | ||||||
Preferred Stock, Depositary Shares, Number of Shares of Preferred Stock in Each Depositary Share (in shares) | shares | 0.001 | |||||||
Payments of Dividends, Total | $ | $ 10,675,000 | $ 0 | $ 0 | |||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ | $ 8,300,000 | $ 7,000,000 | $ 7,400,000 | |||||
Treasury Stock, Shares, Acquired (in shares) | shares | 312,471 | 0 | 0 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ | $ 12,222,000 | |||||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ / shares | $ 39.12 | |||||||
9.5 % Senior Secured Notes [Member] | The 7.75% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |||||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 178,427 | |||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | |||||||
Stock Issued During Period, Value, New Issues | $ | $ 1,784.27 | |||||||
Minimum [Member] | ||||||||
Shareholder Ownership Percentage | 5% | |||||||
Common Class A [Member] | ||||||||
Common Stock Voting Rights Votes per Share Number | 1 | |||||||
Shareholder Ownership Percentage | 4.90% | |||||||
Number of Rights | 1 | |||||||
Shareholders Pre Existing Ownership Percentage | 5% | |||||||
Shareholders Current Ownership Percentage | 5% | |||||||
Shareholders Ownership Percentage on Transfers | 5% | |||||||
Shareholders Ownership Percentage Threshold | 5% | |||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | shares | 200,000 | |||||||
Stock Repurchase Program, Authorized Amount | $ | $ 50,000,000 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 37,800,000 | |||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||
Common Class B [Member] | ||||||||
Common Stock Voting Rights Votes per Share Number | 10 | |||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||
Preferred Class A [Member] | ||||||||
Preferred Stock, Shares Issued, Total (in shares) | shares | 5,600 | |||||||
Preferred Stock, Dividend Rate, Percentage | 7.625% | |||||||
Preferred Stock, Liquidation Preference Per Share (in dollars per share) | $ / shares | $ 25,000 |
Note 15 - Share-Based Compens_3
Note 15 - Share-Based Compensation Plans (Details Textual) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 USD ($) $ / shares shares | Oct. 31, 2021 USD ($) $ / shares shares | Oct. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 600,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 0.2 | $ 4.8 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 9,575 | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 16.46 | $ 8.82 | $ 25.34 | |
Share-based Compensation Arrangement by Share-based Payment Award, Participants Years of Service (Year) | 15 years | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ | $ 15.4 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 7 months 6 days | |||
Share-Based Payment Arrangement, Expense | $ | $ 10.3 | $ 7.7 | $ 2.8 | |
Share-Based Payment Arrangement, Expense, after Tax | $ | $ 7.3 | $ 5.2 | $ 2.6 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | 0 | 0 | |
Nonemployee Director [Member] | ||||
Number of Directors | 6 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Post-vesting Holding Period (Year) | 2 years | |||
Share-Based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 4 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 10 years | |||
Share-Based Payment Arrangement, Expense | $ | $ 0.1 | $ 0.2 | $ 0.4 | |
Restricted Stock [Member] | ||||
Share-based Compensation, Reverse of Previously Recognized Expense | $ | $ 2.4 | |||
Restricted Stock [Member] | Participants With Service Requirement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Participants Age (Year) | 58 years | |||
Restricted Stock [Member] | Nonemployee Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 3 | |||
Restricted Stock [Member] | Participants Without Service Requirement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Participants Age (Year) | 60 years | |||
Performance-based Performance Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 4 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Deferred (in shares) | 116,785 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 78.82% | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 3.04% | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | |||
Market Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | 0 | 0 | |
Share-based Compensation Arrangement By Share-based Compensation Award Fair Value Measurement Period (Day) | 60 days | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 60,130 | |||
Market Stock Units [Member] | Minimum [Member] | ||||
Percentage of Target Number of Shares Covered by MSU Awards | 0% | |||
Market Stock Units [Member] | Maximum [Member] | ||||
Percentage of Target Number of Shares Covered by MSU Awards | 200% | |||
Market Stock Units [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 4 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 50% | |||
Performance Based MSUs [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments | 4 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 50% | |||
LTIP Shares [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 17,023 | |||
Non Options [Member] | ||||
Share-Based Payment Arrangement, Expense | $ | $ 10.2 | $ 7.4 | $ 2.4 | |
Time-based Share Units [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Deferred (in shares) | 49,484 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 63,159 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 60,751 |
Note 15 - Stock-Based Compensat
Note 15 - Stock-Based Compensation Plans - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2020 | |
Stock options outstanding (in shares) | 206,234 | |
Stock options outstanding (in dollars per share) | $ 51.67 | |
Exercised (in shares) | (9,575) | 0 |
Exercised (in dollars per share) | $ 51.50 | |
Forfeited (in shares) | 0 | |
Forfeited (in dollars per share) | $ 0 | |
Expired (in shares) | (30,100) | |
Expired (in dollars per share) | $ 71.97 | |
Stock options outstanding (in shares) | 166,559 | |
Stock options outstanding (in dollars per share) | $ 48.02 | |
Stock options exercisable at end of period (in shares) | 127,780 |
Note 15 - Stock-Based Compens_2
Note 15 - Stock-Based Compensation Plans - Stock Options Outstanding and Exercisable (Details) | 12 Months Ended |
Oct. 31, 2022 $ / shares shares | |
Number outstanding (in shares) | shares | 166,559 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 48.02 |
Weighted-average remaining contractual life - outstanding (Year) | 4 years 10 months 24 days |
Number exercisable (in shares) | shares | 127,780 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 59.03 |
Weighted-average remaining contractual life - exercisable (Year) | 4 years 4 months 24 days |
Range One [Member] | |
Lower limit exercise price (in dollars per share) | $ 7.85 |
Upper limit exercise price (in dollars per share) | $ 38.75 |
Number outstanding (in shares) | shares | 73,174 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 9.54 |
Weighted-average remaining contractual life - outstanding (Year) | 6 years 7 months 13 days |
Number exercisable (in shares) | shares | 36,578 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 9.58 |
Weighted-average remaining contractual life - exercisable (Year) | 6 years 7 months 13 days |
Range Two [Member] | |
Lower limit exercise price (in dollars per share) | $ 42.50 |
Upper limit exercise price (in dollars per share) | $ 63.75 |
Number outstanding (in shares) | shares | 67,439 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 54.16 |
Weighted-average remaining contractual life - outstanding (Year) | 4 years 6 months 21 days |
Number exercisable (in shares) | shares | 65,256 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 54.34 |
Weighted-average remaining contractual life - exercisable (Year) | 4 years 6 months 7 days |
Range Three [Member] | |
Lower limit exercise price (in dollars per share) | $ 66.75 |
Upper limit exercise price (in dollars per share) | $ 100.25 |
Number outstanding (in shares) | shares | 1,700 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 66.75 |
Weighted-average remaining contractual life - outstanding (Year) | 2 years 7 months 9 days |
Number exercisable (in shares) | shares | 1,700 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 66.75 |
Weighted-average remaining contractual life - exercisable (Year) | 2 years 7 months 9 days |
Range Four [Member] | |
Lower limit exercise price (in dollars per share) | $ 110.25 |
Upper limit exercise price (in dollars per share) | $ 157 |
Number outstanding (in shares) | shares | 24,246 |
Weighted-average exercise price - outstanding (in dollars per share) | $ 145.73 |
Weighted-average remaining contractual life - outstanding (Year) | 10 months 9 days |
Number exercisable (in shares) | shares | 24,246 |
Weighted-average exercise price - exercisable (in dollars per share) | $ 145.73 |
Weighted-average remaining contractual life - exercisable (Year) | 10 months 9 days |
Note 15 - Stock-Based Compens_3
Note 15 - Stock-Based Compensation Plans - Nonvested Share Awards (Details) | 12 Months Ended | |
Oct. 31, 2022 $ / shares shares | ||
Time-based Share Units [Member] | ||
Nonvested, time-based (in shares) | shares | 229,924 | |
Nonvested, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 26.51 | |
Granted, time-based (in shares) | shares | 63,159 | |
Granted, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 50.14 | |
Vested, time-based (in shares) | shares | (113,684) | |
Vested, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 23.51 | |
Forfeited, time-based (in shares) | shares | (3,762) | |
Forfeited, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 39.49 | |
Nonvested, time-based (in shares) | shares | 175,637 | |
Nonvested, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 33.43 | |
Performance Shares [Member] | ||
Nonvested, time-based (in shares) | shares | 350,983 | |
Nonvested, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 35.60 | |
Granted, time-based (in shares) | shares | 335,794 | |
Granted, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 42.91 | |
Vested, time-based (in shares) | shares | (179,265) | [1] |
Vested, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 29.36 | [1] |
Forfeited, time-based (in shares) | shares | (355) | |
Forfeited, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 73.50 | |
Nonvested, time-based (in shares) | shares | 507,157 | |
Nonvested, weighted average grant date fair value, time-based (in dollars per share) | $ / shares | $ 41.14 | |
[1]Includes 49,484 time-based vested share awards and 116,785 performance-based vested share awards which were deferred and not yet issued at October 31, 2022. |
Note 16 - Warranty Costs (Detai
Note 16 - Warranty Costs (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Cash Received from Subcontractors for Owner Controlled Insurance Program | $ 6 | $ 5.5 |
Payments by Insurance Companies for Claims | 0.2 | $ 0.1 |
Increase (Decrease) In Construction Defect Reserves | $ 4.3 |
Note 16 - Warranty Costs - Warr
Note 16 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Balance, beginning of period | $ 94,916 | $ 86,417 |
Charges incurred during the period | (18,271) | (14,342) |
Changes to pre-existing reserves | 3,525 | (988) |
Balance, end of period | 97,719 | 94,916 |
Selling, General and Administrative Expenses [Member] | ||
Additions | 8,495 | 10,419 |
Cost of Sales [Member] | ||
Additions | $ 9,054 | $ 13,410 |
Note 17 - Transactions With R_2
Note 17 - Transactions With Related Parties (Details Textual) - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Tavit Najarian [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 1,100,000 | $ 600,000 | $ 700,000 |
Alexander Hovnanian [Member] | Cash Compensation [Member] | |||
Related Party Transaction, Amounts of Transaction | 1,684,000 | 989,000 | |
Alexander Hovnanian [Member] | Share-based Compensation [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 531,000 | $ 523,000 | |
Alexander Hovnanian [Member] | Total Compensation [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 1,152,000 |
Note 18 - Commitments and Con_2
Note 18 - Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
May 02, 2018 | Jun. 30, 2022 | Oct. 31, 2022 | |
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% | ||
Loss Contingency, Damages Sought, Value | $ 2.7 | ||
Litigation Settlement, Amount Awarded to Other Party | $ 1.5 | ||
Litigation Settlement, Expense | $ 0.8 | ||
Great Notch Condominium Claims[Member] | |||
Loss Contingency, Damages Sought, Value | $ 119.5 | ||
Spill Fund Lawsuit [Member] | |||
Loss Contingency, Damages Sought, Value | $ 5.3 |
Note 19 - Variable Interest E_2
Note 19 - Variable Interest Entities (Details Textual) $ in Millions | Oct. 31, 2022 USD ($) |
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 180.8 |
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities | $ 1,900 |
Note 20 - Investments in Unco_3
Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jul. 31, 2021 USD ($) | Apr. 30, 2021 USD ($) | Jan. 31, 2020 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | |
Number of Joint Ventures from which Remaining Equity Interest Purchased | 1 | |||||
Payments to Acquire Remaining Equity Interest in Unconsolidated Joint Venture | $ 6,300 | |||||
Number of Communities Taken Control of from Joint Ventures | 4 | |||||
Number of Active Communities Taken Control of from Joint Ventures | 3 | |||||
Number of Owned Communities Transferred to the Joint Venture | 6 | 8 | ||||
Number of Owned Active Communities Transferred to the Joint Venture | 3 | 4 | ||||
Number of New Joint Ventures | 2 | |||||
Proceeds from Transfer of Land to Joint Venture | $ 21,200 | $ 29,800 | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | $ 74,940 | $ 60,897 | ||||
Equity Method Investment, Other than Temporary Impairment | 0 | 0 | ||||
Revenues, Total | $ 2,922,231 | $ 2,782,857 | $ 2,343,901 | |||
Homebuilding and Land Development Joint Ventures [Member] | ||||||
Equity Method Investment, Number of Unconsolidated Joint Ventures | 7 | 10 | ||||
Equity Method Investment, Estimated Percentage Share of Net Loss Without Investment Write Off | 50% | |||||
Minimum [Member] | Homebuilding and Land Development Joint Ventures [Member] | ||||||
Equity Method Investment, Ownership Percentage | 20% | 20% | ||||
Maximum [Member] | Homebuilding and Land Development Joint Ventures [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50% | 50% | ||||
Homebuilding [Member] | ||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total | $ 74,940 | $ 60,897 | ||||
Revenues, Total | 2,860,691 | 2,701,165 | 2,271,739 | |||
Homebuilding [Member] | Management Fees [Member] | ||||||
Revenues, Total | 12,500 | 11,600 | 16,000 | |||
Corporate Joint Venture [Member] | ||||||
Advances to Affiliate | 1,600 | 2,200 | ||||
Revenues, Total | $ 351,880 | $ 348,589 | $ 448,101 |
Note 20 - Investments in Unco_4
Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Assets | $ 2,562,030 | $ 2,320,508 | ||
Liabilities | 2,178,979 | 2,145,124 | ||
Hovnanian Enterprises, Inc. | 383,036 | 174,897 | ||
Others | 15 | 487 | ||
Total equity | 383,051 | 175,384 | $ (436,094) | $ (489,776) |
Total liabilities and equity | 2,562,030 | 2,320,508 | ||
Revenues, Total | 2,922,231 | 2,782,857 | 2,343,901 | |
Joint venture net income (loss) | 225,490 | 607,817 | 50,928 | |
Our share of net income (loss) | 29,033 | 8,849 | 16,565 | |
Corporate Joint Venture [Member] | ||||
Cash and cash equivalents | 154,044 | 134,935 | ||
Inventories | 441,140 | 442,347 | ||
Other assets | 20,037 | 34,551 | ||
Assets | 615,221 | 611,833 | ||
Accounts payable and accrued liabilities | 472,464 | 387,798 | ||
Notes payable | 34,880 | 73,994 | ||
Liabilities | 507,344 | 461,792 | ||
Hovnanian Enterprises, Inc. | 73,351 | 58,714 | ||
Others | 34,526 | 91,327 | ||
Total equity | 107,877 | 150,041 | ||
Total liabilities and equity | $ 615,221 | $ 611,833 | ||
Debt to capitalization ratio | 24% | 33% | ||
Revenues, Total | $ 351,880 | $ 348,589 | 448,101 | |
Cost of sales and expenses | (318,825) | (335,286) | (432,202) | |
Joint venture net income (loss) | 33,055 | 13,303 | 15,899 | |
Our share of net income (loss) | 29,033 | 8,949 | 16,921 | |
Corporate Joint Venture [Member] | Homebuilding Joint Venture [Member] | ||||
Our share of net income (loss) | 29,002 | 8,754 | 16,904 | |
Corporate Joint Venture [Member] | Land Development Joint Venture [Member] | ||||
Our share of net income (loss) | 31 | 195 | 17 | |
Homebuilding Joint Venture [Member] | Corporate Joint Venture [Member] | ||||
Cash and cash equivalents | 153,176 | 132,963 | ||
Inventories | 441,140 | 442,347 | ||
Other assets | 20,037 | 34,551 | ||
Assets | 614,353 | 609,861 | ||
Accounts payable and accrued liabilities | 471,813 | 386,117 | ||
Notes payable | 34,880 | 73,994 | ||
Liabilities | 506,693 | 460,111 | ||
Hovnanian Enterprises, Inc. | 73,142 | 58,460 | ||
Others | 34,518 | 91,290 | ||
Total equity | 107,660 | 149,750 | ||
Total liabilities and equity | $ 614,353 | $ 609,861 | ||
Debt to capitalization ratio | 24% | 33% | ||
Revenues, Total | $ 351,767 | $ 347,898 | 435,077 | |
Cost of sales and expenses | (318,788) | (335,077) | (420,977) | |
Joint venture net income (loss) | 32,979 | 12,821 | 14,100 | |
Land Development Joint Venture [Member] | Corporate Joint Venture [Member] | ||||
Cash and cash equivalents | 868 | 1,972 | ||
Inventories | 0 | 0 | ||
Other assets | 0 | 0 | ||
Assets | 868 | 1,972 | ||
Accounts payable and accrued liabilities | 651 | 1,681 | ||
Notes payable | 0 | 0 | ||
Liabilities | 651 | 1,681 | ||
Hovnanian Enterprises, Inc. | 209 | 254 | ||
Others | 8 | 37 | ||
Total equity | 217 | 291 | ||
Total liabilities and equity | $ 868 | $ 1,972 | ||
Debt to capitalization ratio | 0% | 0% | ||
Revenues, Total | $ 113 | $ 691 | 13,024 | |
Cost of sales and expenses | (37) | (209) | (11,225) | |
Joint venture net income (loss) | $ 76 | $ 482 | $ 1,799 |
Note 21 - Fair Value of Finan_3
Note 21 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Loans Held for Sale Mortgages Unpaid Principal | $ 110,200 | $ 146,500 | |
Other Commitment, Total | 4,000 | ||
Impairment of Real Estate | 8,400 | 2,000 | $ 2,000 |
Senior Secured Revolving Credit Facility [Member] | |||
Long-term Line of Credit, Total | 0 | $ 0 | |
Loan Origination Commitments [Member] | |||
Loan Applications in Process | 583,600 | ||
Loan Origination Commitments [Member] | Maximum [Member] | |||
Number of Days in Committment (Day) | 60 days | ||
Interest Rate Committed Loan Applications [Member] | |||
Interest Rate Committed Loan Applications | $ 96,800 |
Note 21 - Fair Value of Finan_4
Note 21 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | |
Total | $ 111,300 | $ 151,104 | |
Fair Value, Inputs, Level 2 [Member] | |||
Mortgage loans held for sale | [1] | 110,548 | 151,059 |
Total | 111,300 | 150,952 | |
Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member] | |||
Derivative Fair Value | 752 | (107) | |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments [Member] | |||
Derivative Fair Value | $ 0 | $ 152 | |
[1]The aggregate unpaid principal balance was $110.2 million and $146.5 million at October 31, 2022 and 2021, respectively. |
Note 21 - Fair Value of Finan_5
Note 21 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Loans Held for Sale [Member] | |||
Change in fair value included in financial services revenue | $ 385 | $ 4,580 | $ 3,928 |
Interest Rate Lock Commitments [Member] | |||
Change in fair value included in financial services revenue | 0 | 152 | 11 |
Forward Contracts [Member] | |||
Change in fair value included in financial services revenue | $ 752 | $ (107) | $ (28) |
Note 21 - Fair Value of Finan_6
Note 21 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Total Losses | $ (8,400) | $ (2,000) | $ (2,000) |
Land and Land Options Held for Future Development or Sale [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | |||
Pre-impairment value | 10,558 | ||
Total Losses | (8,374) | ||
Fair Value of Inventory | $ 2,184 | ||
Sold and Unsold Homes and Lots Under Development [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | |||
Pre-impairment value | 11,522 | ||
Total Losses | (2,009) | ||
Fair Value of Inventory | $ 9,513 |
Note 21 - Fair Value of Finan_7
Note 21 - Fair Value of Financial Instruments - Fair Value of Notes (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Notes, Fair Value | $ 1,108,253 | $ 1,266,892 |
Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | ||
Notes, Fair Value | 165,844 | 167,348 |
Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 240,393 | 366,426 |
Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 272,966 | 300,913 |
Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 162,566 | 162,548 |
Senior Notes [Member] | The 13.5% 2026 Notes [Member] | ||
Notes, Fair Value | 94,282 | 92,331 |
Senior Notes [Member] | The 5.0% 2040 Notes [Member] | ||
Notes, Fair Value | 55,654 | 63,084 |
Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | ||
Notes, Fair Value | 31,301 | 28,196 |
Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||
Notes, Fair Value | 85,247 | 86,046 |
Fair Value, Inputs, Level 1 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member] | The 13.5% 2026 Notes [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member] | The 5.0% 2040 Notes [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Senior Notes [Member] | The 13.5% 2026 Notes [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Senior Notes [Member] | The 5.0% 2040 Notes [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||
Notes, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Notes, Fair Value | 1,108,253 | 1,266,892 |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Notes [Member] | The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | ||
Notes, Fair Value | 165,844 | 167,348 |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Notes [Member] | The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 240,393 | 366,426 |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Notes [Member] | The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 272,966 | 300,913 |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Notes [Member] | The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||
Notes, Fair Value | 162,566 | 162,548 |
Fair Value, Inputs, Level 3 [Member] | Senior Notes [Member] | The 13.5% 2026 Notes [Member] | ||
Notes, Fair Value | 94,282 | 92,331 |
Fair Value, Inputs, Level 3 [Member] | Senior Notes [Member] | The 5.0% 2040 Notes [Member] | ||
Notes, Fair Value | 55,654 | 63,084 |
Fair Value, Inputs, Level 3 [Member] | Unsecured Senior Term Loan [Member] | Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | ||
Notes, Fair Value | 31,301 | 28,196 |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Term Loan [Member] | The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | ||
Notes, Fair Value | $ 85,247 | $ 86,046 |
Note 21 - Fair Value of Finan_8
Note 21 - Fair Value of Financial Instruments - Fair Value of Notes (Details) (Parentheticals) | 12 Months Ended | |||||
Oct. 31, 2022 | Oct. 31, 2021 | Apr. 30, 2020 | Jan. 31, 2020 | Dec. 10, 2019 | Oct. 31, 2019 | |
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10% | 10% | 10% | 10% | ||
Debt Instrument, Maturity Date | Nov. 15, 2025 | Nov. 15, 2025 | ||||
The 7.75% Senior Secured 1.125 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 7.75% | 7.75% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 10.50% | 10.50% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | ||||||
Debt Instrument, Stated Interest Rate | 11.25% | 11.25% | ||||
The 11.25% Senior Secured 1.5 Lien Notes due February 15, 2026 [Member] | Senior Secured Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 11.25% | 11.25% | ||||
Debt Instrument, Maturity Date | Feb. 15, 2026 | Feb. 15, 2026 | ||||
The 13.5% 2026 Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 13.50% | 13.50% | ||||
Debt Instrument, Maturity Date | Feb. 01, 2026 | Feb. 01, 2026 | ||||
The 5.0% 2040 Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument, Stated Interest Rate | 5% | 5% | ||||
Debt Instrument, Maturity Date | Feb. 01, 2040 | Feb. 01, 2040 | ||||
Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Unsecured Senior Term Loan [Member] | ||||||
Debt Instrument, Maturity Date | Feb. 01, 2027 | Feb. 01, 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 |