Note 8 - Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's Deposits

9 Months Ended

Jul. 31, 2019

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

8. Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer’s Deposits

Cash represents cash deposited in checking accounts. Cash equivalents include certificates of deposit, Treasury bills and government money–market funds with maturities of

90

days or less when purchased. Our cash balances are held at a few financial institutions and

may,

at times, exceed insurable amounts. We believe we help to mitigate this risk by depositing our cash in major financial institutions. At

July 31, 2019

and

October 31, 2018,

$91.8

million and

$199.6

million, respectively, of the Cash and cash equivalents and Restricted cash and cash equivalents was in cash equivalents, the book value of which approximates fair value.

Homebuilding - Restricted cash and cash equivalents on the Condensed Consolidated Balance Sheets totaled

$16.9

million and

$12.8

million as of

July 31, 2019

and

October 31, 2018,

respectively, which primarily consists of cash collateralizing our letter of credit agreements and facilities as discussed in Note

11.

Financial services restricted cash and cash equivalents, which are included in “Financial services” assets on the Condensed Consolidated Balance Sheets, totaled

$20.4

million and

$25.4

million as of

July 31, 2019

and

October 31, 2018,

respectively. Included in these balances were (

1

) financial services customers’ deposits of

$18.1

million at

July 31, 2019

and

$23.4

million as of

October 31, 2018

which are subject to restrictions on our use, and (

2

)

$2.3

million at

July 31, 2019

and

$2.0

million at

October 31, 2018,

respectively, of restricted cash under the terms of our mortgage warehouse lines of credit.

Total Homebuilding Customers’ deposits are shown as a liability on the Condensed Consolidated Balance Sheets. These liabilities are significantly more than the applicable periods’ restricted cash balances because in some states the deposits are

not

restricted from use and, in other states, we are able to release the majority of these customer deposits to cash by pledging letters of credit and surety bonds.