Investments in Unconsolidated Entities (Tables)

3 Months Ended

Jan. 31, 2017

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Summary of Joint Venture Information [Table Text Block]

The table below provides information as of January 31, 2017, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	7		4		13		4		28
Investment in unconsolidated entities	$	300,124	$	130,487	$	149,599	$	21,486	$	601,696
Number of unconsolidated entities with funding commitments by the Company	5		1		3		1		10
Company’s remaining funding commitment to unconsolidated entities	$	43,794	$	8,300	$	3,850	$	9,621	$	65,565

Summary of Joint Ventures Borrowing information [Table Text Block]

Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at January 31, 2017, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	3		1		11		15
Aggregate loan commitments	$	275,000	$	236,500	$	1,002,866	$	1,514,366
Amounts borrowed under loan commitments	$	237,626	$	57,548	$	708,174	$	1,003,348

Condensed balance sheet

Condensed Balance Sheets:

	January 31, 2017		October 31, 2016
Cash and cash equivalents	$	110,665	$	130,794
Inventory	1,177,928		1,074,888
Loans receivable, net	26,684		—
Non-performing loan portfolio	3,835		4,298
Rental properties	675,069		621,615
Rental properties under development	312,645		302,632
Real estate owned (“REO”)	84,471		87,226
Other assets	169,064		175,805
Total assets	$	2,560,361	$	2,397,258
Debt	$	1,008,011	$	1,164,883
Other liabilities	132,829		152,881
Members’ equity	1,322,829		980,354
Noncontrolling interest	96,692		99,140
Total liabilities and equity	$	2,560,361	$	2,397,258
Company’s net investment in unconsolidated entities (1)	$	601,696	$	496,411

(1) Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of the acquisition price of an investment in a Land Development Joint Venture in fiscal 2012 that was in excess of our pro rata share of the underlying equity; impairments related to our investment in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment.

Condensed statements of operations and comprehensive income

Condensed Statements of Operations and Comprehensive Income:

	Three months ended January 31,
	2017			2016
Revenues	$	295,702		$	42,486
Cost of revenues	165,706			35,513
Other expenses	21,134			9,307
Total expenses	186,840			44,820
Gain on disposition of loans and REO	8,886			25,983
Income from operations	117,748			23,649
Other income	2,586			1,005
Income before income taxes	120,334			24,654
Income tax provision	3,827			—
Net income including earnings from noncontrolling interests	116,507			24,654
Less: income attributable to noncontrolling interest	(2,080		)	(11,610		)
Net income attributable to controlling interest	114,427			13,044
Other comprehensive income	—			87
Total comprehensive income	$	114,427		$	13,131
Company’s equity in earnings of unconsolidated entities (2)	$	46,445		$	8,638

(2) Differences between our equity in earnings of unconsolidated entities and the underlying net income of the entities are primarily a result of a basis difference of an acquired joint venture interest; distributions from entities in excess of the carrying amount of our net investment; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.