Investments in Unconsolidated Entities (Tables)

12 Months Ended

Oct. 31, 2020

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 October 31, 2020, 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	9		4		26		7		46
Investment in unconsolidated entities	$	127,690	$	33,819	$	247,049	$	22,143	$	430,701
Number of unconsolidated entities with funding commitments by the Company	3		—		10		1		14
Company’s remaining funding commitment to unconsolidated entities	$	33,045	$	—	$	24,343	$	17,601	$	74,989

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 October 31, 2020, 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		1		23		28
Aggregate loan commitments	$	158,823	$	30,953	$	1,660,496	$	1,850,272
Amounts borrowed under commitments	$	118,071	$	30,953	$	1,217,614	$	1,366,638

New joint venture formations in fiscal 2020

The table below provides information on joint ventures entered into during fiscal 2020 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	1		7
Investment balance at October 31, 2020	$	24,602	$	80,448

The table below provides information on joint ventures entered into during fiscal 2019 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	1		10
Investment balance at October 31, 2019	$	5,913	$	49,691
Number of consolidated joint ventures entered into during the period	—		4
Carrying value of consolidated joint ventures’ assets at October 31, 2019	$	—	$	124,988
Noncontrolling interests in consolidated joint ventures at October 31, 2019	$	—	$	37,832

Summary of Unconsolidated Entities Debt Obligations, Loan Commitments and Guarantees

Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands):

	October 31, 2020
Loan commitments in the aggregate	$	1,508,300
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed	$	229,300
Debt obligations borrowed in the aggregate	$	1,024,700
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed	$	179,100
Estimated fair value of guarantees provided by us related to debt and other obligations	$	6,100
Terms of guarantees	1 month - 3.5 years

Unconsolidated Joint Venture Related Variable Interest Entities

The table below provide information as of October 31, 2020 and 2019, regarding our unconsolidated joint venture-related variable interests in VIEs ($ amounts in thousands):

	October 31, 2020		October 31, 2019
Number of Joint Venture VIEs that the Company is not the Primary Beneficiary (“PB”)	12		13
Investment balance in unconsolidated Joint Venture VIEs included in Investments in unconsolidated entities in our Consolidated Balance Sheets	$	63,100	$	37,000
Our maximum exposure to losses related to loan guarantees and additional commitments provided to unconsolidated Joint Venture VIEs	$	122,100	$	84,300

Our ownership interest in the above unconsolidated Joint Venture VIEs ranges from 20% to 50%.

Consolidated Joint Venture Related Variable Interest Entities

The table below provide information as of October 31, 2020 and 2019, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands):

	Balance Sheet Classification	October 31, 2020		October 31, 2019
Number of Joint Venture VIEs that the Company is the PB and consolidates		5		5
Carrying value of consolidated VIEs assets	Receivables prepaid expenses, and other assets	$	163,000	$	145,800
Our partners’ interests in consolidated VIEs	Noncontrolling interest	$	46,200	$	41,000

Our ownership interest in the above consolidated Joint Venture VIEs ranges from 50% to 98%.

Condensed balance sheet aggregated by type of business

Condensed Balance Sheets:

	October 31, 2020
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	24,330	$	18,106	$	64,244	$	2,798	$	109,478
Inventory	303,960		198,260		—		8,780		511,000
Loan receivables, net	—		—		—		78,576		78,576
Rental properties	—		—		1,244,911		—		1,244,911
Rental properties under development	—		—		666,386		—		666,386
Real estate owned	—		—		—		6,752		6,752
Other assets	108,289		21,930		38,851		298		169,368
Total assets	$	436,579	$	238,296	$	2,014,392	$	97,204	$	2,786,471
Debt, net of deferred financing costs	$	117,342	$	30,116	$	1,220,607	$	—	$	1,368,065
Other liabilities	54,714		12,768		113,282		6,053		186,817
Members’ equity	264,523		195,412		680,503		90,735		1,231,173
Noncontrolling interest	—		—		—		416		416
Total liabilities and equity	$	436,579	$	238,296	$	2,014,392	$	97,204	$	2,786,471
Company’s net investment in unconsolidated entities (1)	$	127,690	$	33,819	$	247,049	$	22,143	$	430,701

	October 31, 2019
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	23,669	$	38,115	$	20,647	$	3,388	$	85,819
Inventory	247,866		313,991		—		17,369		579,226
Loan receivables, net	—		—		—		56,545		56,545
Rental properties	—		—		1,021,848		—		1,021,848
Rental properties under development	—		—		535,197		—		535,197
Real estate owned	—		—		—		12,267		12,267
Other assets	96,602		78,916		36,879		364		212,761
Total assets	$	368,137	$	431,022	$	1,614,571	$	89,933	$	2,503,663
Debt, net of deferred financing costs	$	88,050	$	132,606	$	1,006,201	$	—	$	1,226,857
Other liabilities	49,302		33,959		84,735		7,831		175,827
Members’ equity	230,785		264,457		523,635		81,686		1,100,563
Noncontrolling interest	—		—		—		416		416
Total liabilities and equity	$	368,137	$	431,022	$	1,614,571	$	89,933	$	2,503,663
Company’s net investment in unconsolidated entities (1)	$	110,306	$	60,512	$	174,292	$	21,142	$	366,252

(1)    Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities amounted to $29.4 million and $30.9 million as of October 31, 2020 and 2019, respectively, and are primarily a result of other than temporary 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; unrealized gains on our retained joint venture interests; 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 aggregate by type of business

Condensed Statements of Operations and Comprehensive Income:

	For the year ended October 31, 2020
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Revenues	$	87,174	$	139,587	$	111,122	$	26,781	$	364,664
Cost of revenues	64,810		124,899		37,770		15,762		243,241
Other expenses	2,948		15,731		117,419		1,505		137,603
Total expenses	67,758		140,630		155,189		17,267		380,844
Gain on disposition of loans and REO	—		—		—		1,053		1,053
Income (loss) from operations	19,416		(1,043)		(44,067)		10,567		(15,127)
Other income (loss)	3,061		536		(448)		—		3,149
Income (loss) before income taxes	22,477		(507)		(44,515)		10,567		(11,978)
Income tax provision (benefit)	188		(254)		—		—		(66)
Net income (loss) including earnings from noncontrolling interests	22,289		(253)		(44,515)		10,567		(11,912)
Plus: loss attributable to noncontrolling interest	—		—		—		48		48
Net income (loss) attributable to controlling interest	$	22,289	$	(253)	$	(44,515)	$	10,615	$	(11,864)
Company’s equity (deficit) in earnings of unconsolidated entities (2)	$	11,412	$	(3,424)	$	(9,389)	$	2,349	$	948

	For the year ended October 31, 2019
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Revenues	$	261,677	$	374,587	$	99,401	$	21,377	$	757,042
Cost of revenues (3)	246,980		323,764		68,502		13,234		652,480
Other expenses (3)	4,752		24,633		58,928		1,880		90,193
Total expenses	251,732		348,397		127,430		15,114		742,673
Gain on disposition of loans and REO	—		—		—		4,383		4,383
Income (loss) from operations	9,945		26,190		(28,029)		10,646		18,752
Other income	3,079		6,144		16,651		12,793		38,667
Income (loss) before income taxes	13,024		32,334		(11,378)		23,439		57,419
Income tax provision	193		457		—		—		650
Net income (loss) including earnings from noncontrolling interests	12,831		31,877		(11,378)		23,439		56,769
Less: income attributable to noncontrolling interest	—		—		—		(9,593)		(9,593)
Net income (loss) attributable to controlling interest	$	12,831	$	31,877	$	(11,378)	$	13,846	$	47,176
Company’s equity (deficit) in earnings of unconsolidated entities (2)	$	6,160	$	17,004	$	(824)	$	2,528	$	24,868

	For the year ended October 31, 2018
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Revenues	$	351,397	$	148,002	$	121,276	$	19,592	$	640,267
Cost of revenues (3)	317,103		109,357		74,946		17,817		519,223
Other expenses (3)	9,385		11,742		61,502		3,201		85,830
Total expenses	326,488		121,099		136,448		21,018		605,053
Gain on disposition of loans and REO	—		—		—		53,192		53,192
Income (loss) from operations	24,909		26,903		(15,172)		51,766		88,406
Other income	5,939		2,134		222,744		1,937		232,754
Income before income taxes	30,848		29,037		207,572		53,703		321,160
Income tax provision	86		767		—		—		853
Net income including earnings from noncontrolling interests	30,762		28,270		207,572		53,703		320,307
Less: income attributable to noncontrolling interest	—		—		—		(28,297)		(28,297)
Net income attributable to controlling interest	30,762		28,270		207,572		25,406		292,010
Company’s equity in earnings of unconsolidated entities (2)	$	3,392	$	14,069	$	62,204	$	5,575	$	85,240

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

(3)    Effective October 31, 2020, we reclassified sales commissions paid to third-party brokers from home sales cost of revenues to selling, general and administrative expense. Prior year periods have been reclassified to conform to the 2020 presentation.