Fair Value Disclosures (Tables)
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9 Months Ended |
Jul. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] |
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Summary of assets and (liabilities), measured at fair value on a recurring basis |
The table below provides, as of the dates indicated, a summary of assets/(liabilities) related to our financial instruments, measured at fair value on a recurring basis (amounts in thousands): | | | | | | | | | | | | | | | | Fair value | Financial Instrument | | Fair value hierarchy | | July 31, 2019 | | October 31, 2018 | Mortgage Loans Held for Sale | | Level 2 | | $ | 169,251 |
| | $ | 170,731 |
| Forward Loan Commitments — Mortgage Loans Held for Sale | | Level 2 | | $ | 53 |
| | $ | 1,750 |
| Interest Rate Lock Commitments (“IRLCs”) | | Level 2 | | $ | 129 |
| | $ | (4,366 | ) | Forward Loan Commitments — IRLCs | | Level 2 | | $ | (129 | ) | | $ | 4,366 |
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Aggregate unpaid principal and fair value of mortgage loans held for sale |
The table below provides, as of the dates indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale (amounts in thousands): | | | | | | | | | | | | | | Aggregate unpaid principal balance | | Fair value | | Excess | At July 31, 2019 | $ | 167,015 |
| | $ | 169,251 |
| | $ | 2,236 |
| At October 31, 2018 | $ | 170,728 |
| | $ | 170,731 |
| | $ | 3 |
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Fair value of inventory adjusted for impairment |
The table below provides, for the periods indicated, the number of operating communities that we reviewed for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and, as of the end of the period indicated, the fair value of those communities, net of impairment charges ($ amounts in thousands): | | | | | | | | | | | | | | | | Impaired operating communities | Three months ended: | Number of communities tested | | Number of communities | | Fair value of communities, net of impairment charges | | Impairment charges recognized | Fiscal 2019: | | | | | | | | January 31 (1) | 49 | | 5 | | $ | 37,282 |
| | $ | 5,785 |
| April 30 (2) | 64 | | 6 | | $ | 36,159 |
| | 17,495 |
| July 31 | 69 | | 3 | | $ | 5,436 |
| | 1,100 |
| | | | | | | | $ | 24,380 |
| Fiscal 2018: | | | | | | | | January 31 | 64 | | 5 | | $ | 13,318 |
| | $ | 3,736 |
| April 30 (2) | 65 | | 4 | | $ | 21,811 |
| | 13,325 |
| July 31 (3) | 55 | | 5 | | $ | 43,063 |
| | 9,065 |
| October 31 | 43 | | 6 | | $ | 24,692 |
| | 4,025 |
| | | | | | | | $ | 30,151 |
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| | (1) | Includes impairments of $2.8 million (one community), $1.5 million (three communities), and $1.5 million (one community) located in our City Living, North, and South segments, respectively. |
| | (2) | Includes impairments of $2.0 million (one community), $7.0 million (two communities), $8.0 million (two communities), and $0.5 million (one community) located in our City Living, North, Mid-Atlantic, and South segments, respectively, in our fiscal 2019 period. Includes $12.0 million of impairments from one community located in our North segment in our fiscal 2018 period. |
(3) Includes $7.3 million of impairments from two communities located in our Mid-Atlantic segment.
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Book value and estimated fair value of the Company's debt |
The table below provides, as of the dates indicated, the book value and estimated fair value of our debt (amounts in thousands): | | | | | | | | | | | | | | | | | | | | | | July 31, 2019 | | October 31, 2018 | | Fair value hierarchy | | Book value | | Estimated fair value | | Book value | | Estimated fair value | Loans payable (1) | Level 2 | | $ | 1,091,884 |
| | $ | 1,088,316 |
| | $ | 688,115 |
| | $ | 687,974 |
| Senior notes (2) | Level 1 | | 2,519,876 |
| | 2,633,961 |
| | 2,869,876 |
| | 2,779,270 |
| Mortgage company loan facility (3) | Level 2 | | 150,000 |
| | 150,000 |
| | 150,000 |
| | 150,000 |
| | | | $ | 3,761,760 |
| | $ | 3,872,277 |
| | $ | 3,707,991 |
| | $ | 3,617,244 |
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| | (1) | The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date. |
| | (2) | The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date. |
(3) We believe that the carrying value of our mortgage company loan borrowings approximates their fair value.
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Operating communities [Member] |
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Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] |
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] |
The table below summarizes, for the periods indicated, the ranges of certain quantitative unobservable inputs utilized in determining the fair value of impaired operating communities: | | | | | | | Three months ended: | Selling price per unit ($ in thousands) | | Sales pace per year (in units) | | Discount rate | Fiscal 2019: | | | | | | January 31 | 836 - 13,495 | | 2 - 12 | | 12.5% - 15.8% | April 30 | 372 - 1,915 | | 2 - 19 | | 12.0% - 26.0% | July 31 | 530 - 1,113 | | 2 - 9 | | 7.8% - 13% | | | | | | | Fiscal 2018: | | | | | | January 31 | 381 - 1,029 | | 7 - 10 | | 13.8% - 19.0% | April 30 | 485 - 522 | | 10 - 16 | | 16.9% | July 31 (1) | – | | – | | – | October 31 | 470 - 1071 | | 4 - 23 | | 13.5% - 16.3% |
(1) The impairment charges recognized were related to our decisions to sell lots in a bulk sale in certain communities rather than sell and construct homes as previously intended. The sale price per lot used in the fair value determination for these bulk sales ranged from $10,000 to $155,000.
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