Investments in Unconsolidated Entities (Tables)

9 Months Ended

Jul. 31, 2018

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, 2018, 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	$	198,001	$	79,111	$	132,938	$	9,944	$	419,994
Number of unconsolidated entities with funding commitments by the Company	4		1		1		1		7
Company’s remaining funding commitment to unconsolidated entities	$	21,153	$	8,300	$	1,150	$	9,621	$	40,224

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, 2018, 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	4		3		12		19
Aggregate loan commitments	$	181,081	$	381,902	$	1,022,085	$	1,585,068
Amounts borrowed under loan commitments	$	166,156	$	255,842	$	793,135	$	1,215,133

Condensed balance sheet

Condensed Balance Sheets:

	July 31, 2018		October 31, 2017
Cash and cash equivalents	$	113,526	$	153,828
Inventory	1,042,117		1,148,209
Loans receivable, net	9,758		22,495
Rental properties	788,206		970,497
Rental properties under development	394,620		190,541
Real estate owned	26,546		53,902
Other assets	165,600		156,618
Total assets	$	2,540,373	$	2,696,090
Debt, net of deferred financing costs	$	1,201,543	$	1,199,583
Other liabilities	173,826		135,292
Members’ equity	1,141,773		1,332,285
Noncontrolling interest	23,231		28,930
Total liabilities and equity	$	2,540,373	$	2,696,090
Company’s net investment in unconsolidated entities (1)	$	419,994	$	481,758

(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:

	Nine months ended July 31,						Three months ended July 31,
	2018			2017			2018			2017
Revenues	$	393,522		$	690,441		$	117,239		$	189,714
Cost of revenues	303,209			389,996			93,799			99,102
Other expenses	64,462			62,193			19,880			22,472
Total expenses	367,671			452,189			113,679			121,574
Gain on disposition of loans and real estate owned	52,444			39,530			25,964			7,891
Income from operations	78,295			277,782			29,524			76,031
Other income	106,141			11,175			25,275			1,678
Income before income taxes	184,436			288,957			54,799			77,709
Income tax provision	587			7,453			238			1,138
Net income including earnings from noncontrolling interests	183,849			281,504			54,561			76,571
Less: income attributable to noncontrolling interest	(28,017		)	(16,417		)	(16,079		)	(3,328		)
Net income attributable to controlling interest	$	155,832		$	265,087		$	38,482		$	73,243
Company’s equity in earnings of unconsolidated entities (2)	$	53,913		$	112,274		$	12,469		$	19,925

(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.