Investments in Unconsolidated Entities (Tables)

9 Months Ended

Jul. 31, 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 July 31, 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		5		29
Investment in unconsolidated entities	$	283,248	$	89,437	$	124,951	$	16,629	$	514,265
Number of unconsolidated entities with funding commitments by the Company	5		1		1		1		8
Company’s remaining funding commitment to unconsolidated entities	$	33,950	$	8,300	$	1,000	$	9,621	$	52,871

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 July 31, 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	$	1,021,406	$	1,532,906
Amounts borrowed under loan commitments	$	262,175	$	100,989	$	780,157	$	1,143,321

Condensed balance sheet

Condensed Balance Sheets:

	July 31, 2017		October 31, 2016
Cash and cash equivalents	$	103,517	$	130,794
Inventory	1,134,699		1,074,888
Loans receivable, net	23,853		—
Rental properties	952,289		621,615
Rental properties under development	169,631		302,632
Real estate owned (“REO”)	55,970		87,226
Other assets	162,055		180,103
Total assets	$	2,602,014	$	2,397,258
Debt	$	1,146,833	$	1,164,883
Other liabilities	127,374		152,881
Members’ equity	1,298,996		980,354
Noncontrolling interest	28,811		99,140
Total liabilities and equity	$	2,602,014	$	2,397,258
Company’s net investment in unconsolidated entities (1)	$	514,265	$	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:

	Nine months ended July 31,						Three months ended July 31,
	2017			2016			2017			2016
Revenues	$	690,441		$	226,772		$	189,714		$	60,755
Cost of revenues	389,996			145,401			99,102			42,910
Other expenses	62,193			29,723			22,472			11,347
Total expenses	452,189			175,124			121,574			54,257
Gain on disposition of loans and REO	39,530			38,102			7,891			3,413
Income from operations	277,782			89,750			76,031			9,911
Other income	11,175			4,121			1,678			1,769
Income before income taxes	288,957			93,871			77,709			11,680
Income tax provision	7,453			—			1,138			—
Net income including earnings from noncontrolling interests	281,504			93,871			76,571			11,680
Less: income attributable to noncontrolling interest	(16,417		)	(11,204		)	(3,328		)	3,819
Net income attributable to controlling interest	265,087			82,667			73,243			15,499
Other comprehensive income	—			100			—			—
Total comprehensive income	$	265,087		$	82,767		$	73,243		$	15,499
Company’s equity in earnings of unconsolidated entities (2)	$	112,274		$	22,754		$	19,925		$	4,998

(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.