Investments in Unconsolidated Entities (Tables)

6 Months Ended

Apr. 30, 2017

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 April 30, 2017, 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		4		28
Investment in unconsolidated entities	$	292,463	$	100,772	$	128,181	$	18,799	$	540,215
Number of unconsolidated entities with funding commitments by the Company	5		1		3		1		10
Company’s remaining funding commitment to unconsolidated entities	$	35,843	$	8,300	$	2,467	$	9,621	$	56,231

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 April 30, 2017, 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	3		1		11		15
Aggregate loan commitments	$	275,000	$	236,500	$	1,015,866	$	1,527,366
Amounts borrowed under loan commitments	$	250,111	$	82,677	$	756,606	$	1,089,394

Condensed balance sheet

Condensed Balance Sheets:

	April 30, 2017		October 31, 2016
Cash and cash equivalents	$	108,560	$	130,794
Inventory	1,146,487		1,074,888
Loans receivable, net	27,900		—
Non-performing loan portfolio	1,698		4,298
Rental properties	911,344		621,615
Rental properties under development	186,558		302,632
Real estate owned (“REO”)	60,137		87,226
Other assets	168,913		175,805
Total assets	$	2,611,597	$	2,397,258
Debt	$	1,093,498	$	1,164,883
Other liabilities	125,239		152,881
Members’ equity	1,362,679		980,354
Noncontrolling interest	30,181		99,140
Total liabilities and equity	$	2,611,597	$	2,397,258
Company’s net investment in unconsolidated entities (1)	$	540,215	$	496,411

(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 and Comprehensive Income:

	Six months ended April 30,						Three months ended April 30,
	2017			2016			2017			2016
Revenues	$	500,727		$	166,018		$	205,024		$	123,531
Cost of revenues	290,894			102,492			125,188			66,979
Other expenses	39,722			18,375			18,588			9,065
Total expenses	330,616			120,867			143,776			76,044
Gain on disposition of loans and REO	31,639			34,689			22,753			8,706
Income from operations	201,750			79,840			84,001			56,193
Other income	9,497			2,351			6,912			1,346
Income before income taxes	211,247			82,191			90,913			57,539
Income tax provision	6,314			—			2,487			—
Net income including earnings from noncontrolling interests	204,933			82,191			88,426			57,539
Less: income attributable to noncontrolling interest	(13,089		)	(15,023		)	(11,009		)	(3,413		)
Net income attributable to controlling interest	191,844			67,168			77,417			54,126
Other comprehensive income	—			100			—			13
Total comprehensive income	$	191,844		$	67,268		$	77,417		$	54,139
Company’s equity in earnings of unconsolidated entities (2)	$	92,349		$	17,756		$	45,904		$	9,118

(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.