Investments in Unconsolidated Entities (Tables)

3 Months Ended

Jan. 31, 2018

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, 2018, 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		5		29
Investment in unconsolidated entities	$	225,283	$	93,185	$	116,682	$	14,598	$	449,748
Number of unconsolidated entities with funding commitments by the Company	5		1		1		1		8
Company’s remaining funding commitment to unconsolidated entities	$	23,689	$	8,300	$	609	$	9,621	$	42,219

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, 2018, 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	4		3		11		18
Aggregate loan commitments	$	200,988	$	382,031	$	948,335	$	1,531,354
Amounts borrowed under loan commitments	$	184,944	$	196,536	$	733,876	$	1,115,356

Condensed balance sheet

Condensed Balance Sheets:

	January 31, 2018		October 31, 2017
Cash and cash equivalents	$	104,880	$	153,828
Inventory	1,067,806		1,148,209
Loans receivable, net	19,532		22,495
Rental properties	831,672		970,497
Rental properties under development	223,904		190,541
Real estate owned	54,621		53,902
Other assets	159,816		156,618
Total assets	$	2,462,231	$	2,696,090
Debt	$	1,115,356	$	1,199,583
Other liabilities	137,188		135,292
Members’ equity	1,183,605		1,332,285
Noncontrolling interest	26,082		28,930
Total liabilities and equity	$	2,462,231	$	2,696,090
Company’s net investment in unconsolidated entities (1)	$	449,748	$	481,758

(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 investments 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:

	Three months ended January 31,
	2018			2017
Revenues	$	193,620		$	295,702
Cost of revenues	148,750			165,706
Other expenses	24,286			21,134
Total expenses	173,036			186,840
Gain on disposition of loans and real estate owned	14,671			8,886
Income from operations	35,255			117,748
Other income	79,363			2,586
Income before income taxes	114,618			120,334
Income tax provision	198			3,827
Net income including earnings from noncontrolling interests	114,420			116,507
Less: income attributable to noncontrolling interest	(6,082		)	(2,080		)
Net income attributable to controlling interest	$	108,338		$	114,427
Company’s equity in earnings of unconsolidated entities (2)	$	38,880		$	46,445

(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.