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Note 22
 6 Months Ended
Apr. 30, 2012
Condensed Financial Statements Disclosure [Text Block]
22.  Hovnanian Enterprises, Inc., the parent company (the “Parent”), is the issuer of publicly traded common stock, preferred stock, which is represented by depository shares, and 7.25% Tangible Equity Units. One of its wholly owned subsidiaries, K. Hovnanian Enterprises, Inc. (the “Subsidiary Issuer”), acts as a finance entity that as of April 30, 2012, had issued and outstanding approximately $992.0 million of senior secured notes ($967.2 million, net of discount), $483.6 million senior notes ($481.4 million, net of discount), and $7.9 million senior subordinated amortizing notes (issued as a component of our 7.25% Tangible Equity Units). The senior secured notes, senior notes, and senior subordinated amortizing notes are fully and unconditionally guaranteed by the Parent.

In addition to the Parent, each of the wholly owned subsidiaries of the Parent other than the Subsidiary Issuer (collectively, “Guarantor Subsidiaries”), with the exception of our home mortgage subsidiaries, certain of our title insurance subsidiaries, joint ventures, subsidiaries holding interests in our joint ventures and our foreign subsidiary (collectively, the “Nonguarantor Subsidiaries”), have guaranteed fully and unconditionally, on a joint and several basis, the obligations of the Subsidiary Issuer to pay principal and interest under the senior secured notes, senior notes, and senior subordinated amortizing notes other than the 2021 Notes.  The 2021 Notes are guaranteed by the Guarantor Subsidiaries and the members of the Secured Group (see Note 11).

All of the senior secured notes, senior notes and senior subordinated amortizing notes have been registered under the Securities Act of 1933, as amended, except the 2021 notes, which are not, pursuant to the indenture under which they were issued, required to be registered.  The Condensed Consolidating Financial Statements presented below are in respect of our registered notes only and not the 2021 Notes. In lieu of providing separate financial statements for the Guarantor Subsidiaries of our registered senior secured, senior and senior subordinated amortizing notes, we have included the accompanying Condensed Consolidating Financial Statements. Management does not believe that separate financial statements of the Guarantor Subsidiaries of our registered notes are material to users of our Condensed Consolidated Financial Statements. Therefore, separate financial statements and other disclosures concerning such Guarantor Subsidiaries are not presented.

The following Condensed Consolidating Financial Statements present the results of operations, financial position and cash flows of (i) the Parent, (ii) the Subsidiary Issuer, (iii) the Guarantor Subsidiaries, (iv) the Nonguarantor Subsidiaries and (v) the eliminations to arrive at the information for Hovnanian Enterprises, Inc. on a consolidated basis.

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING BALANCE SHEET

APRIL 30, 2012

(In Thousands)

   
Parent
   
Subsidiary Issuer
   
Guarantor Subsidiaries
   
Nonguarantor Subsidiaries
   
Eliminations
   
Consolidated
 
ASSETS:
                                   
Homebuilding
 
$
10,789
   
$
160,822
   
$
1,029,093
   
$
218,390
   
$
-
 
$
1,419,094
 
Financial services
                   
9,292
     
89,557
           
98,849
 
Investments in and amounts due to and from consolidated subsidiaries
   
(422,415
)
   
2,065,789
     
(2,432,465
)
   
3,229
     
785,862
     
-
 
Total assets
 
$
(411,626
)
 
$
2,226,611
   
$
(1,394,080
)
 
$
311,176
   
$
785,862
   
$
1,517,943
 
                                                 
LIABILITIES AND EQUITY:
                                               
Homebuilding
 
$
3,533
   
$
(28
)
 
$
347,595
   
$
19,564
   
$
-
   
$
370,664
 
Financial services
                   
9,142
     
75,516
             
84,658
 
Notes payable
           
1,474,368
     
102
                     
1,474,470
 
Income taxes payable
   
39,856
             
3,079
                     
42,935
 
Stockholders’ (deficit) equity
   
(455,015
)
   
752,271
     
(1,753,998
)
   
215,865
     
785,862
     
(455,015
)
Non-controlling interest in consolidated joint ventures
                           
231
             
231
 
Total liabilities and equity
 
$
(411,626
)
 
$
2,226,611
   
$
(1,394,080
)
 
$
311,176
   
$
785,862
   
$
1,517,943
 

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING BALANCE SHEET

OCTOBER 31, 2011

(In Thousands)

   
Parent
   
Subsidiary Issuer
   
Guarantor Subsidiaries
   
Nonguarantor Subsidiaries
   
Eliminations
   
Consolidated
 
ASSETS:
                                   
Homebuilding
 
$
12,756
   
$
200,281
   
$
1,096,594
   
$
207,443
   
$
   
$
1,517,074
 
Financial services
                   
4,537
     
80,569
           
85,106
 
Investments in and amounts due to and from consolidated subsidiaries
   
(467,562
)
   
2,140,349
     
(2,435,348
)
   
(9,364
)
   
771,925
     
-
 
Total assets
 
$
(454,806
)
 
$
2,340,630
   
$
(1,334,217
)
 
$
278,648
   
$
771,925
   
$
1,602,180
 
                                                 
LIABILITIES AND EQUITY:
                                               
Homebuilding
 
$
2,172
   
$
(33
)
 
$
355,191
   
$
11,276
   
$
     
$
368,606
 
Financial services
                   
4,231
     
60,015
             
64,246
 
Notes payable
           
1,623,957
     
144
                     
1,624,101
 
Income tax payable
   
39,716
             
2,113
                     
41,829
 
Stockholders’ (deficit) equity
   
(496,694
)
   
716,706
     
(1,695,896
)
   
207,265
     
771,925
     
(496,694
)
Non-controlling interest in consolidated joint ventures
                           
92
             
92
 
Total liabilities and equity
 
$
(454,806
)
 
$
2,340,630
   
$
(1,334,217
)
 
$
278,648
   
$
771,925
   
$
1,602,180
 

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

THREE MONTHS ENDED APRIL 30, 2012

(In Thousands)

   
Parent
   
Subsidiary Issuer
   
Guarantor Subsidiaries
   
Nonguarantor Subsidiaries
   
Eliminations
   
Consolidated
 
Revenues:
                                   
Homebuilding
 
$
-
   
$
(75
)
 
$
314,161
   
$
20,337
   
$
(1,238
)
 
$
333,185
 
Financial services
                   
1,696
     
6,817
             
8,513
 
Intercompany charges
           
23,949
     
(18,779
)
   
(2,449
)
   
(2,721
)
   
-
 
Total revenues
   
-
     
23,874
     
297,078
     
24,705
     
(3,959
)
   
341,698
 
                                                 
Expenses:
                                               
Homebuilding
   
2,435
     
9,456
     
316,409
     
15,910
     
18,321
     
362,531
 
Financial services
   
29
             
1,335
     
3,995
     
4
     
5,363
 
Total expenses
   
2,464
     
9,456
     
317,744
     
19,905
     
18,325
     
367,894
 
Gain on extinguishment of debt
           
27,039
                             
27,039
 
Income from unconsolidated joint ventures
                   
462
     
1,033
             
1,495
 
Income (loss) before income taxes
   
(2,464
)
   
41,457
     
(20,204
)
   
5,833
     
(22,284
)
   
2,338
 
State and federal income tax (benefit) provision
   
(4,104
)
           
4,640
                     
536
 
Equity in (loss) income of consolidated subsidiaries
   
162
                             
(162
)
   
-
 
Net income (loss)
 
$
1,802
   
$
41,457
   
$
(24,844
)
 
$
5,833
   
$
(22,446
)
 
$
1,802
 

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

THREE MONTHS ENDED APRIL 30, 2011

(In Thousands)

   
Parent
   
Subsidiary Issuer
   
Guarantor Subsidiaries
   
Nonguarantor Subsidiaries
   
Eliminations
   
Consolidated
 
Revenues:
                                               
Homebuilding
 
$
3
   
$
(103
)
 
$
249,801
   
$
1,332
   
$
(1,240
)
 
$
249,793
 
Financial services
                   
1,209
     
4,095
             
5,304
 
Intercompany charges
           
28,299
     
(30,839
)
   
(210
)
   
2,750
     
-
 
Total revenues
   
3
     
28,196
     
220,171
     
5,217
     
1,510
     
255,097
 
                                                 
Expenses:
                                               
Homebuilding
   
1,558
     
40,595
     
277,636
     
405
     
(1,468
)
   
318,726
 
Financial services
   
82
             
1,234
     
3,864
     
(3
)
   
5,177
 
Total expenses
   
1,640
     
40,595
     
278,870
     
4,269
     
(1,471
)
   
323,903
 
Loss on extinguishment of debt
           
(1,644
)
                           
(1,644
)
Loss from unconsolidated joint ventures
                   
(451
)
   
(2,781
)
           
(3,232
)
(Loss) income before income taxes
   
(1,637
)
   
(14,043
)
   
(59,150
)
   
(1,833
)
   
2,981
     
(73,682
)
State and federal income tax (benefit) provision
   
(5,087
)
           
4,072
                     
(1,015
)
Equity in (loss) income of consolidated subsidiaries
   
(76,117
)
                           
76,117
     
-
 
Net (loss) income
 
$
(72,667
)
 
$
(14,043
)
 
$
(63,222
)
 
$
(1,833
)
 
$
79,098
   
$
(72,667
)

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

SIX MONTHS ENDED APRIL 30, 2012

(In Thousands)

   
Parent
   
Subsidiary Issuer
   
Guarantor Subsidiaries
   
Nonguarantor Subsidiaries
   
Eliminations
   
Consolidated
 
Revenues:
                                   
Homebuilding
 
$
4
   
$
(105
)
 
$
577,467
   
$
21,206
   
$
(2,478
)
 
$
596,094
 
Financial services
                   
2,995
     
12,208
             
15,203
 
Intercompany charges
           
23,949
     
(31,131
)
   
(3,448
)
   
10,630
     
-
 
Total revenues
   
4
     
23,844
     
549,331
     
29,966
     
8,152
     
611,297
 
                                                 
Expenses:
                                               
Homebuilding
   
4,175
     
24,077
     
601,746
     
14,575
     
24,618
     
669,191
 
Financial services
   
80
             
2,561
     
7,911
     
(12
)
   
10,540
 
Total expenses
   
4,255
     
24,077
     
604,307
     
22,486
     
24,606
     
679,731
 
G  Gain on extinguishment of
        debt
           
51,737
                             
51,737
 
I   Income from unconsolidated joint ventures
                   
491
     
982
             
1,473
 
(L(Loss) income before income taxes
   
(4,251
)
   
51,504
     
(54,485
)
   
8,462
     
(16,454
)
   
(15,224
)
StState and federal income tax
       (benefit) provision
   
(8,668
)
           
9,907
                     
1,239
 
E  Equity in (loss) income of
        consolidated subsidiaries
   
(20,880
)
                           
(20,880
)
   
-
 
Net (loss) income
 
$
(16,463
)
 
$
51,504
   
$
(64,392
)
 
$
8,462
   
$
4,426
   
$
(16,463
)

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

SIX MONTHS ENDED APRIL 30, 2011

(In Thousands)

   
Parent
   
Subsidiary Issuer
   
Guarantor Subsidiaries
   
Nonguarantor Subsidiaries
   
Eliminations
   
Consolidated
 
Revenues:
                                               
Homebuilding
 
$
7
   
$
(198
)
 
$
495,709
   
$
2,227
   
$
(2,479
)
 
$
495,266
 
Financial services
                   
2,541
     
9,857
             
12,398
 
Intercompany charges
           
56,615
     
(66,297
)
   
(357
)
   
10,039
     
-
 
Total revenues
   
7
     
56,417
     
431,953
     
11,727
     
7,560
     
507,664
 
                                                 
Expenses:
                                               
Homebuilding
   
3,102
     
78,985
     
546,610
     
855
     
(158
)
   
629,394
 
Financial services
   
170
             
2,476
     
8,004
     
(3
)
   
10,647
 
Total expenses
   
3,272
     
78,985
     
549,086
     
8,859
     
(161
)
   
640,041
 
G  Loss on extinguishment of debt
           
(1,644
)
                           
(1,644
)
L   Loss from unconsolidated joint
          ventures
                   
(701
)
   
(3,523
)
           
(4,224
)
(L  (Loss) income before income taxes
   
(3,265
)
   
(24,212
)
   
(117,834
)
   
(655
)
   
7,721
     
(138,245
)
St  State and federal income tax
          (benefit) provision
   
(10,968
)
           
9,532
                     
(1,436
)
E    Equity in (loss) income of
           consolidated subsidiaries
   
(144,512
)
                           
144,512
     
-
 
Net (loss) income
 
$
(136,809
)
 
$
(24,212
)
 
$
(127,366
)
 
$
(655
)
 
$
152,233
   
$
(136,809
)

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED APRIL 30, 2012

(In Thousands)

   
Parent
   
Subsidiary Issuer
   
Guarantor Subsidiaries
   
Nonguarantor Subsidiaries
   
Eliminations
   
Consolidated
 
Cash flows from operating activities:
                                   
Net income (loss)
 
$
(16,463 )  
$
51,504    
$
(64,392 )  
$
8,462    
$
4,426    
$
(16,463 )
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities
    14,463       (46,947 )     58,917       (45,410 )     (4,426 )     (23,403 )
Net cash (used in) provided by operating activities
    (2,000 )     4,557       (5,475 )     (36,948 )     -       (39,866 )
Net cash (used in) investing activities
            (1,121 )     (1,011 )     28               (2,104 )
Net cash (used in) provided by financing activities
    47,147       (91,885 )     25,585       17,400               (1,753 )
Intercompany investing and financing activities – net
    (45,147 )     74,560       (16,820 )     (12,593 )             -  
Net (decrease) increase in cash
    -       (13,889 )     2,279       (32,113 )     -       (43,723 )
Cash and cash equivalents balance, beginning of period
            112,122       (4,989 )     143,607               250,740  
Cash and cash equivalents balance, end of period
 
$
-    
$
98,233    
$
(2,710 )  
$
111,494    
$
-    
$
207,017  

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED APRIL 30, 2011

(In Thousands)

   
Parent
   
Subsidiary Issuer
   
Guarantor Subsidiaries
   
Nonguarantor Subsidiaries
   
Eliminations
   
Consolidated
 
Cash flows from operating activities:
                                   
Net (loss) income
 
$
(136,809
) 
 
$
(24,212
) 
 
$
(127,366
)
 
$
(655
) 
 
$
152,233
   
$
(136,809
)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
   
86,595
     
(35,201
) 
   
137,491
     
4,198
     
(152,233
) 
   
40,850
 
Net cash (used in) provided by operating activities
   
(50,214
)
   
(59,413
) 
   
10,125
     
3,543
     
-
     
(95,959
)
Net cash (used in) investing activities
                   
(909
)
   
(455
)
           
(1,364
)
Net cash (used in) provided by financing activities
   
54,899
     
73,448
     
(4,359
)
   
(40,115
)
           
83,873
 
Intercompany investing and financing activities – net
   
(4,695
) 
   
15,692
     
(513
)
   
(10,484
)
           
-
 
Net (decrease) increase in cash
   
(10
) 
   
29,727
     
4,344
     
(47,511
)
   
-
     
(13,450
)
Cash and cash equivalents balance, beginning of period
   
10
     
212,370
     
(12,812
)
   
167,612
             
367,180
 
Cash and cash equivalents balance, end of period
 
$
-
   
$
242,097
   
$
(8,468
)
 
$
120,101
   
$
-
   
$
353,730