Fair Value Disclosures (Tables)

9 Months Ended

Jul. 31, 2011

Fair Value Disclosures (Tables) [Abstract]

Summary of assets and (liabilities), measured at fair value on a recurring basis

A summary of assets and (liabilities) at July 31, 2011 and October 31, 2010 related to the Company’s financial instruments, measured at fair value on a recurring basis, is set forth below (amounts in thousands).


		Fair value
	Fair value	July 31,			October 31,
Financial Instrument	hierarchy	2011			2010
U.S. Treasury Securities	Level 1	$	15,020		$	175,370
U.S. Agency Securities	Level 1	$	24,216		$	22,497
Corporate Securities	Level 1	$	237,813
Pre-refunded Municipal Securities	Level 1	$	17,237
Residential Mortgage Loans Held for Sale	Level 2	$	45,320		$	93,644
Forward Loan Commitments — Residential Mortgage Loans Held for Sale	Level 2	$	(107	)	$	(459	)
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	119		$	130
Forward Loan Commitments — IRLCs	Level 2	$	(119	)	$	(130	)

Aggregate unpaid principal and fair value of mortgage loans held for sale

The table below provides, for the periods indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale as of the date indicated (amounts in thousands).


	Aggregate unpaid
	principal balance		Fair value		Excess
At July 31, 2011	$	44,742	$	45,320	$	578
At July 31, 2010	$	65,945	$	67,456	$	1,511

Summary of amortized cost gross unrealized holding gains and losses


	July 31,			October 31,
	2011			2010
Amortized cost	$	294,373		$	197,699
Gross unrealized holding gains		71			180
Gross unrealized holding losses		(158	)		(12	)

Fair value	$	294,286		$	197,867

Fair value of inventory adjusted for impairment

The table below provides, for the periods indicated, the fair value of inventory whose carrying value was adjusted and the amount of impairment charges recognized (amounts in thousands).


	Fair value of
	communities, net
	of impairment		Impairment
Three months ended:	charges		charges
Fiscal 2011:
January 31	$	56,105	$	5,475
April 30	$	40,765		10,725
July 31	$	4,769		16,175

			$	32,375


Fiscal 2010:
January 31	$	82,509	$	31,750
April 30	$	64,964		41,770
July 31	$	40,071		12,450

			$	85,970

Book value and estimated fair value of the Company's debt

The book value and estimated fair value of the Company’s debt at July 31, 2011 and October 31, 2010 was as follows (amounts in thousands):


	July 31, 2011				October 31, 2010
			Estimated				Estimated
	Book value		fair value		Book value		fair value
Loans payable (a)	$	104,512	$	96,519	$	94,491	$	87,751
Senior notes (b)		1,509,371		1,625,363		1,554,460		1,679,052
Mortgage company warehouse loan (c)		39,905		39,905		72,367		72,367

	$	1,653,788	$	1,761,787	$	1,721,318	$	1,839,170


(a)		The estimated fair value of loans payable was based upon their indicated market prices or the interest rates that the Company believed were available to it for loans with similar terms and remaining maturities as of the applicable valuation date.

(b)		The estimated fair value of the Company’s senior notes is based upon their indicated market prices.

(c)		The Company believes that the carrying value of its mortgage company loan borrowings approximates their fair value.

- Definition

This item represents the entire disclosure related to Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

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- Definition

This item represents certain of the disclosures concerning the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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