Note 6 - Restricted Cash and Customers' Deposits

12 Months Ended

Oct. 31, 2025

Restricted Cash and Customers' Deposits

Restricted Cash and Customers' Deposits

6. Restricted Cash and Customers’ Deposits

Homebuilding “Restricted cash and cash equivalents” on the Consolidated Balance Sheets totaled $12.6 million and $7.9 million as of October 31, 2025 and 2024, respectively, which primarily consists of cash collateralizing our letter of credit agreements and facilities (see Note 9).

Financial services restricted cash and cash equivalents, which are included in “Financial services” assets on the Consolidated Balance Sheets, totaled $27.7 million and $42.3 million as of October 31, 2025 and 2024, respectively. Included in these balances were (1) financial services customers’ deposits of $25.4 million and $39.2 million as of October 31, 2025 and 2024, respectively, which are subject to restrictions on our use, and (2) restricted cash under the terms of our mortgage warehouse lines of credit of $2.3 million and $3.1 million as of October 31, 2025 and 2024, respectively.

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 restricted from use and, in other states, we are able to release the majority of these customer deposits to cash by pledging letters of credit and surety bonds.