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Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Use of Estimates

- The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and these differences could have a significant impact on the financial statements.

Income Recognition from Home and Land Sales

- We are primarily engaged in the development, construction, marketing and sale of residential single-family and multi-family homes where the planned construction cycle is less than

months. For these homes, in accordance with Accounting Standards Codification (“ASC”)

360

20,

“Property, Plant and Equipment - Real Estate Sales,” revenue is recognized when title is conveyed to the buyer, adequate initial and continuing investments have been received and there is

continued involvement. In situations where the buyer’s financing is originated by our mortgage subsidiary and the buyer has

not

made an adequate initial investment or continuing investment as prescribed by ASC

360

20,

the profit on such sales is deferred until the sale of the related mortgage loan to a

third

-party investor has been completed.

Income Recognition from Mortgage Loans -

Our Financial Services segment originates mortgages, primarily for our homebuilding customers. We use mandatory investor commitments and forward sales of mortgage-backed securities (“MBS”) to hedge our mortgage-related interest rate exposure on agency and government loans.

We elected the fair value option for our mortgage loans held for sale in accordance with ASC

825,

“Financial Instruments,” which permits us to measure our loans held for sale at fair value. Management believes that the election of the fair value option for loans held for sale improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions.

Substantially all of the mortgage loans originated are sold within a short period of time in the secondary mortgage market on a servicing released, nonrecourse basis, although the Company remains liable for certain limited representations, such as fraud, and warranties related to loan sales.

Mortgage investors could seek to have us buy back loans or compensate them from losses incurred on mortgages we have sold based on claims that we breached our limited representations and warranties. We have established reserves for probable losses.

Cash and Cash Equivalents

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

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

October 31, 2017

and

2016,

$13.3

million and

$9.4

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

Fair Value of Financial Instruments

- The fair value of financial instruments is determined by reference to various market data and other valuation techniques as appropriate. Our financial instruments consist of cash and cash equivalents, restricted cash and cash equivalents, receivables, deposits and notes, accounts payable and other liabilities, customer deposits, mortgage loans held for sale, nonrecourse mortgages, mortgage warehouse lines of credit, revolving credit facility, accrued interest, senior secured term loan and the senior secured notes, senior notes, senior amortizing notes and senior exchangeable notes. The fair value of the senior secured notes, senior notes, senior amortizing notes and senior exchangeable notes is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities.

Inventories

- Inventories consist of land, land development, home construction costs, capitalized interest, construction overhead and property taxes. Construction costs are accumulated during the period of construction and charged to cost of sales under specific identification methods. Land, land development and common facility costs are allocated based on buildable acres to product types within each community, then charged to cost of sales equally based upon the number of homes to be constructed in each product type.

We record inventories in our consolidated balance sheets at cost unless the inventory is determined to be impaired, in which case the inventory is written down to its fair value. Our inventories consist of the following

three

components: (

) sold and unsold homes and lots under development, which includes all construction, land, capitalized interest and land development costs related to started homes and land under development in our active communities; (

) land and land options held for future development or sale, which includes all costs related to land in our communities in planning or mothballed communities; and (

) consolidated inventory

not

owned, which includes all costs related to specific performance options, variable interest entities, and other options, which consists primarily of model homes financed with an investor and inventory related to land banking arrangements accounted for as financings.

We decide to mothball (or stop development on) certain communities when we determine that the current performance does

not

justify further investment at the time.

When we decide to mothball a community, the inventory is reclassified on our Consolidated Balance Sheets from “Sold and unsold homes and lots under development” to “Land and land options held for future development or sale.” During fiscal

2017,

we did

not

mothball any communities, but we sold

five

previously mothballed communities and re-activated

two

previously mothballed communities. As of

October 31, 2017

and

2016,

the net book value associated with our

and

total mothballed communities was

$36.7

million and

$74.4

million, respectively, which was net of impairment charges recorded in prior periods of

$214.1

million and

$296.3

million, respectively.

From time to time we enter into option agreements that include specific performance requirements, whereby we are required to purchase a minimum number of lots. Because of our obligation to purchase these lots, for accounting purposes in accordance with Accounting Standards Codification (“ASC”)

360

38,

we are required to record this inventory on our Consolidated Balance Sheets. As of

October 31,

201

and

2016,

we had

specific performance options.

We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a

third

party at the end of the respective lease. As a result of our continued involvement, for accounting purposes in accordance with ASC

360

38,

these sale and leaseback transactions are considered a financing rather than a sale. Therefore, for purposes of our Consolidated Balance Sheets, at

October 31,

201

and

2016,

inventory of

$58.5

million and

$79.2

million, respectively, was recorded to “Consolidated inventory

not

owned,” with a corresponding amount of

$51.8

million and

$69.7

million, respectively, recorded to “Liabilities from inventory

not

owned” for the amount of net cash received from the transactions.

We have land banking arrangements, whereby we sell our land parcels to the land banker and they provide us an option to purchase back finished lots on a predetermined schedule. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC

360

38,

these transactions are considered a financing rather than a sale. For purposes of our Consolidated Balance Sheets, at

October 31,

201

and

2016,

inventory of

$66.3

million and

$129.5

million, respectively, was recorded to “Consolidated inventory

not

owned,” with a corresponding amount of

$39.3

million and

$80.5

million, respectively, recorded to “Liabilities from inventory

not

owned” for the amount of net cash received from the transactions.

The recoverability of inventories and other long-lived assets is assessed in accordance with the provisions of ASC

360

10,

“Property, Plant and Equipment

– Overall.” ASC

360

requires long-lived assets, including inventories, held for development to be evaluated for impairment based on undiscounted future cash flows of the assets at the lowest level for which there are identifiable cash flows. As such, we evaluate inventories for impairment at the individual community level, the lowest level of discrete cash flows that we measure.

We evaluate inventories of communities under development and held for future development for impairment when indicators of potential impairment are present. Indicators of impairment include, but are

not

limited to, decreases in local housing market values, decreases in gross margins or sales absorption rates, decreases in net sales prices (base sales price net of sales incentives), or actual or projected operating or cash flow losses. The assessment of communities for indication of impairment is performed quarterly. As part of this process, we prepare detailed budgets for all of our communities at least semi-annually and identify those communities with a projected operating loss. For those communities with projected losses, we estimate the remaining undiscounted future cash flows and compare those to the carrying value of the community, to determine if the carrying value of the asset is recoverable.

The projected operating profits, losses or cash flows of each community can be significantly impacted by our estimates of the following:

●

future base selling prices;

●

future home sales incentives;

●

future home construction and land development costs; and

●

future sales absorption pace and cancellation rates.

These estimates are dependent upon specific market conditions for each community. While we consider available information to determine what we believe to be our best estimates as of the end of a quarterly reporting period, these estimates are subject to change in future reporting periods as facts and circumstances change. Local market-specific conditions that

may

impact our estimates for a community include:

●

the intensity of competition within a market, including available home sales prices and home sales incentives offered by our competitors;

●

the current sales absorption pace for both our communities and competitor communities;

●

community-specific attributes, such as location, availability of lots in the market, desirability and uniqueness of our community, and the size and style of homes currently being offered;

●

potential for alternative product offerings to respond to local market conditions;

●

changes by management in the sales strategy of the community;

●

current local market economic and demographic conditions and related trends and forecasts; and

●

existing home inventory supplies, including foreclosures and short sales.

These and other local market-specific conditions that

may

be present are considered by management in preparing projection assumptions for each community. The sales objectives can differ between our communities, even within a given market. For example, facts and circumstances in a given community

may

lead us to price our homes with the objective of yielding a higher sales absorption pace, while facts and circumstances in another community

may

lead us to price our homes to minimize deterioration in our gross margins, although it

may

result in a slower sales absorption pace. In addition, the key assumptions included in our estimate of future undiscounted cash flows

may

be interrelated. For example, a decrease in estimated base sales price or an increase in homes sales incentives

may

result in a corresponding increase in sales absorption pace. Additionally, a decrease in the average sales price of homes to be sold and closed in future reporting periods for

one

community that has

not

been generating what management believes to be an adequate sales absorption pace

may

impact the estimated cash flow assumptions of a nearby community. Changes in our key assumptions, including estimated construction and development costs, absorption pace and selling strategies, could materially impact future cash flow and fair value estimates. Due to the number of possible scenarios that would result from various changes in these factors, we do

not

believe it is possible to develop a sensitivity analysis with a level of precision that would be meaningful to an investor.

If the undiscounted cash flows are more than the carrying value of the community, then the carrying amount is recoverable, and

impairment adjustment is required. However, if the undiscounted cash flows are less than the carrying amount, then the community is deemed impaired and is written down to its fair value. We determine the estimated fair value of each community by determining the present value of its estimated future cash flows at a discount rate commensurate with the risk of the respective community, or in limited circumstances, prices for land in recent comparable sale transactions, market analysis studies, which include the estimated price a willing buyer would pay for the land (other than in a forced liquidation sale), and recent bona fide offers received from outside

third

parties. Our discount rates used for all impairments recorded from

October 31,

201

October 31, 2017

ranged from

16.8%

19.8%.

The estimated future cash flow assumptions are virtually the same for both our recoverability and fair value assessments. Should the estimates or expectations used in determining estimated cash flows or fair value, including discount rates, decrease or differ from current estimates in the future, we

may

be required to recognize additional impairments related to current and future communities. The impairment of a community is allocated to each lot on a relative fair value basis.

From time to time, we write off deposits and approval, engineering and capitalized interest costs when we determine that it is

longer probable that we will exercise options to buy land in specific locations or when we redesign communities and/or abandon certain engineering costs. In deciding

not

to exercise a land option, we take into consideration changes in market conditions, the timing of required land takedowns, the willingness of land sellers to modify terms of the land option contract (including timing of land takedowns), and the availability and best use of our capital, among other factors. The write-off is recorded in the period it is deemed

not

probable that the optioned property will be acquired. In certain instances, we have been able to recover deposits and other pre-acquisition costs that were previously written off. These recoveries have

not

been significant in comparison to the total costs written off.

Inventories held for sale are land parcels ready for sale in their current condition, where we have decided

not

to build homes but are instead actively marketing for sale. These land parcels represented $

23.6

million and

$48.7

million of our total inventories at

October 31, 2017

and

2016,

respectively, and are reported at the lower of carrying amount or fair value less costs to sell. In determining fair value for land held for sale, management considers, among other things, prices for land in recent comparable sale transactions, market analysis studies, which include the estimated price a willing buyer would pay for the land (other than in a forced liquidation sale) and recent bona fide offers received from outside

third

parties.

Post-Development Completion, Warranty Costs

and

Insurance Deductible Reserves

- In those instances where a development is substantially completed and sold and we have additional construction work to be incurred, an estimated liability is provided to cover the cost of such work. We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible. This accrual is expensed as selling, general and administrative costs. For homes delivered in fiscal

2017

and

2016,

our deductible under our general liability insurance is a

$20

million aggregate for construction defect and warranty claims. For bodily injury claims, our deductible per occurrence in fiscal

2017

and

2016

$0.25

million, up to a

million limit. Our aggregate retention in fiscal

2017

and

2016

$21

million for construction defect, warranty and bodily injury claims. We do

not

have a deductible on our worker's compensation insurance. Reserves for estimated losses for construction defects, warranty and bodily injury claims have been established using the assistance of a

third

-party actuary. We engage a

third

-party actuary that uses our historical warranty and construction defect data to assist our management in estimating our unpaid claims, claim adjustment expenses and incurred but

not

reported claims reserves for the risks that we are assuming under the general liability and construction defect programs. The estimates include provisions for inflation, claims handling and legal fees. These estimates are subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to our markets and the types of products we build, claim settlement patterns, insurance industry practices and legal interpretations, among others. Because of the high degree of judgment required in determining these estimated liability amounts, actual future costs could differ significantly from our currently estimated amounts. In addition, we establish a warranty accrual for lower cost-related issues to cover home repairs, community amenities and land development infrastructure that are

not

covered under our general liability and construction defect policy. We accrue an estimate for these warranty costs as part of cost of sales at the time each home is closed and title and possession have been transferred to the homebuyer. See Note

for additional information on the amount of warranty costs recognized in cost of goods sold and administrative expenses.

Interest

- Interest attributable to properties under development during the land development and home construction period is capitalized and expensed along with the associated cost of sales as the related inventories are sold. Interest incurred in excess of interest capitalized, which occurs when assets qualifying for interest capitalization are less than our outstanding debt balances, is expensed as incurred in “Other interest.”

Interest costs incurred, expensed and capitalized were:

	Year Ended
(In thousands)	October 31, 2017		October 31, 2016		October 31, 2015
Interest capitalized at beginning of year	$	96,688	$	123,898	$	109,158
Plus interest incurred(1)		160,203		166,824		166,188
Less cost of sales interest expensed		88,536		92,391		59,613
Less other interest expensed(2)(3)		97,304		90,967		91,835
Less interest contributed to unconsolidated joint venture(4)		-		10,676		-
Interest capitalized at end of year(5)	$	71,051	$	96,688	$	123,898

(

)

Data does

not

include interest incurred by our mortgage and finance subsidiaries.

(

)

Other interest expensed includes interest that does

not

qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do

not

exceed our debt, which amounted to

$69.1

million,

$50.4

million and

$77.6

million for the years ended

October 31, 2017,

2016

and

2015,

respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does

not

qualify for capitalization, and therefore, is expensed. This component of other interest was

$28.2

million,

$40.6

million and

$14.2

million for the years ended

October 31, 2017,

2016

and

2015.

(

)

Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows:

	Year Ended
(In thousands)	October 31, 2017			October 31, 2016		October 31, 2015
Other interest expensed	$	97,304		$	90,967	$	91,835
Interest paid by our mortgage and finance subsidiaries		1,944			2,866		2,050
(Increase) decrease in accrued interest		(9,412	)		7,963		(8,166	)
Cash paid for interest, net of capitalized interest	$	89,836		$	101,796	$	85,719

(

)

Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in

November 2015

as discussed in Note

20.

There was

impact to the Consolidated Statement of Operations as a result of this transaction.

(

)

Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.

Land Options -

Costs incurred to obtain options to acquire improved or unimproved home sites are capitalized. Such amounts are either included as part of the purchase price if the land is acquired or charged to “Inventory impairments loss and land option write-offs” if we determine we will

not

exercise the option. If the options are with variable interest entities and we are the primary beneficiary, we record the land under option on the Consolidated Balance Sheets under “Consolidated inventory

not

owned” with an offset under “Liabilities from inventory

not

owned.” If the option includes an obligation to purchase land under specific performance or has terms that require us to record it as financing, then we record the option on the Consolidated Balance Sheets under “Consolidated inventory

not

owned” with an offset under “Liabilities from inventory

not

owned.” In accordance with ASC

810

“Consolidation – Overall,” we record costs associated with other options on the Consolidated Balance Sheets under “Land and land options held for future development or sale.”

Unconsolidated Homebuilding and Land Development Joint Ventures -

Investments in unconsolidated homebuilding and land development joint ventures are accounted for under the equity method of accounting. Under the equity method, we recognize our proportionate share of earnings and losses earned by the joint venture upon the delivery of lots or homes to

third

parties. Our ownership interests in the joint ventures vary but our voting interests are generally

50%

or less. In determining whether or

not

we must consolidate joint ventures where we are the managing member of the joint venture, we assess whether the other partners have specific rights to overcome the presumption of control by us as the manager of the joint venture. In most cases, the presumption is overcome because the joint venture agreements require that both partners agree on establishing the significant operating and capital decisions of the partnership, including budgets, in the ordinary course of business. The evaluation of whether or

not

we control a venture can require significant judgment. In accordance with ASC

323

10,

“Investments - Equity Method and Joint Ventures – Overall,” we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment below its carrying amount is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on the joint venture’s projected cash flows. This process requires significant management judgment and estimates.

During fiscal

2017,

we wrote down certain joint venture investments by

$2.8

million. There were

write-downs in fiscal

2016

2015.

Deferred Bond Issuance Costs -

Costs associated with borrowings under our revolving credit facility and senior secured term loan and the issuance of senior secured, senior, senior amortizing and senior exchangeable notes are capitalized and amortized over the term of each note’s issuance. The capitalization of the costs are recorded as a contra liability within our debt balances, except for the revolving credit facility costs, which are recorded as a prepaid asset.

Debt Issued At a Discount -

Debt issued at a discount to the face amount is accreted up to its face amount utilizing the effective interest method over the term of the note and recorded as a component of interest on the Consolidated Statements of Operations.

Advertising Costs

- Advertising costs are expensed as incurred. During the years ended

October

31,

2017,

2016

and

2015,

advertising costs expensed totaled

$17.9

million,

$21.4

million and

$21.0

million, respectively.

Deferred Income Taxes -

Deferred income taxes are provided for temporary differences between amounts recorded for financial reporting and for income tax purposes. If the combination of future years’ income (or loss) combined with the reversal of the timing differences results in a loss, such losses can be carried back to prior years or carried forward to future years to recover the deferred tax assets. In accordance with ASC

740

10,

“Income Taxes – Overall,” we evaluate our deferred tax assets quarterly to determine if valuation allowances are required. ASC

740

requires that companies assess whether valuation allowances should be established based on the consideration of all available evidence using a “more-likely-than-

not”

standard.

In evaluating the exposures associated with our various tax filing positions, we recognize tax liabilities in accordance with ASC

740

10,

for more likely than

not

exposures.

We re-evaluate the exposures associated with our tax positions on a quarterly basis. This evaluation is based on factors such as changes in facts or circumstances, changes in tax law, new audit activity by taxing authorities, and effectively settled issues. Determining whether an uncertain tax position is effectively settled requires judgment. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision. A number of years

may

elapse before a particular matter for which we have established a liability is audited and fully resolved or clarified. We adjust our liability for unrecognized tax benefits and income tax provision in the period in which an uncertain tax position is effectively settled, or the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. Due to the complexity of some of these uncertainties, the ultimate resolution

may

result in a liability that is materially different from our current estimate. Any such changes will be reflected as increases or decreases to income tax expense in the period in which they are determined.

Depreciation -

Property, plant and equipment are depreciated using the straight-line method over the estimated useful life of the assets ranging from

years.

Prepaid Expenses -

Prepaid expenses which relate to specific housing communities (model setup, architectural fees, homeowner warranty program fees, etc.) are amortized to cost of sales as the applicable inventories are sold. All other prepaid expenses are amortized over a specific time period or as used and charged to overhead expense.

Allowance for Doubtful Accounts

– We regularly review our receivable balances, which are included in Receivables, deposits and notes on the Consolidated Balance Sheets, for collectability and record an allowance against a receivable when it is deemed that collectability is uncertain. These receivables include receivables from our insurance carriers, receivables from municipalities related to the development of utilities or other infrastructure, and other miscellaneous receivables. The balance for allowance for doubtful accounts was

$7.3

million and

$7.6

million at

October 31, 2017

and

2016,

respectively, which primarily related to allowances for receivables from municipalities and an allowance for a receivable for a prior year land sale. During fiscal

2017

and

2016,

we recorded

$0.2

million and

$0.8

million, respectively, in recoveries. In addition, there were

$0.1

million and

$0.2

million of write-offs in fiscal

2017

and

2016,

respectively. During fiscal

2016,

we recorded

$1.0

million of additional reserves.

Stock Options -

We account for our stock options under ASC

718

10,

“Compensation - Stock Compensation – Overall,” which requires the fair-value based method of accounting for stock awards granted to employees and measures and records the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award.

Compensation cost arising from nonvested stock granted to employees and from nonemployee stock awards is based on the fair value of the awards at the grant date recognized as expense using the straight-line method over the vesting period.

Per Share Calculations -

Basic earnings per share is computed by dividing net income (loss) (the “numerator”) by the weighted-average number of common shares outstanding, adjusted for nonvested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of options and nonvested shares of restricted stock, as well as common shares issuable upon exchange of our Senior Exchangeable Notes issued as part of our

6.0%

Exchangeable Note Units. Any options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation.

All outstanding nonvested shares that contain nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the

two

-class method. The

two

-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings in periods where we have net income. The Company

’s restricted common stock (“nonvested shares”) are considered participating securities.

Recent Accounting Pronouncements

May 2014,

the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”)

No.

2014

09,

“Revenue from Contracts with Customers” (Topic

606

), (“ASU

2014

09”

). ASU

2014

requires entities to recognize revenue that represents the transfer of promised goods or services to customers in an amount equivalent to the consideration to which the entity expects to be entitled to in exchange for those goods or services. The following steps should be applied to determine this amount: (

) identify the contract(s) with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract; and (

) recognize revenue when (or as) the entity satisfies a performance obligation. ASU

2014

supersedes the revenue recognition requirements in ASU

605,

“Revenue Recognition,” and most industry-specific guidance in the Accounting Standards Codification. In

August 2015,

the FASB

issued ASU

2015

on this same topic, which defers for

one

year the effective date of ASU

2014

09,

therefore making the guidance effective for the Company beginning

November 1, 2018.

Additionally, the FASB also decided to permit entities to early adopt the standard, which allows for either full retrospective or modified retrospective methods of adoption, for reporting periods beginning after

December 15, 2016.

We are currently evaluating the impact of adopting this guidance on our Consolidated Financial Statements, and have been involved in industry-specific discussions with the FASB on the treatment of certain items. However, due to the nature of our operations, we expect to identify similar performance obligations in our contracts under ASU

2014

compared with the deliverables and separate units of account we have identified under existing accounting standards. As a result, we expect the timing of our recognition of revenues to remain generally the same. Nonetheless, we are still evaluating the impact of specific parts of this ASU, and expect our revenue-related disclosures to change upon its adoption.

August 2014,

the FASB issued ASU

2014

15,

“Disclosure of Uncertainties About an Entity

’s Ability to Continue as a Going Concern” (“ASU

2014

15”

), which requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within

one

year of the date the financial statements are issued and to provide related disclosures, if required. ASU

2014

was effective for the Company as of our fiscal year ending

October 31, 2017 and

the adoption did

not

have a material impact on the Company’s Consolidated Financial Statements.

February 2016,

the FASB issued ASU

2016

02,

“Leases (Topic

842

)” (“ASU

2016

02”

), which provides guidance for accounting for leases. ASU

2016

requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than

months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU

2016

is effective for the Company beginning

November

2019.

Early adoption is permitted. We are currently evaluating the impact of adopting this guidance on our Consolidated Financial Statements.

August 2016,

the FASB issued ASU

No.

2016

15,

“Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments” (“ASU

2016

15”

). ASU

2016

provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU

2016

is effective for the Company

’s fiscal year beginning

November 1, 2018.

Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements.

October 2016,

the FASB issued ASU

No.

2016

16,

“Income Taxes (Topic

740

): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU

2016

16”

). ASU

2016

provides improvement for the accounting of income taxes related to intra-entity transfers of assets other than inventory. ASU

2016

is effective for the Company

’s fiscal year beginning

November 1, 2018.

Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements.

October 2016,

the FASB issued ASU

No.

2016

17,

“Consolidation (Topic

810

): Interests Held through Related Parties That Are under Common Control” (“ASU

2016

17”

). ASU

2016

amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is a primary beneficiary of that VIE. ASU

2016

is effective for the Company

’s fiscal year beginning

November 1, 2017.

Early adoption is permitted. We do

not

anticipate the adoption of ASU

2016

to have a material impact on our Consolidated Financial Statements.

November 2016,

the FASB issued ASU

No.

2016

18,

“Statement of Cash Flows (Topic

230

): Restricted Cash” (“ASU

2016

18”

). ASU

2016

amends the classification and presentation of changes in restricted cash or restricted cash equivalents in the statement of cash flows. ASU

2016

is effective for the Company

’s fiscal year beginning

November 1, 2018.

Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements.

Note 4 - Leases

12 Months Ended

Oct. 31, 2017

Leases of Lessee Disclosure [Text Block]

Leases

We lease certain property under non-cancelable leases. Office leases are generally for terms of

three

five

years and generally provide renewal options. Model home leases are generally for shorter terms of approximately

one

three

years with renewal options on a month-to-month basis. In most cases, we expect that in the normal course of business, leases that will expire will be renewed or replaced by other leases. The future lease payments required under operating leases that have initial or remaining non-cancelable terms in excess of

one

year are as follows:

Years Ending October 31,	(In Thousands)
2018	$	8,139
2019		7,882
2020		5,354
2021		2,915
2022		2,434
Thereafter		4,342
Total	$	31,066

Net rental expense for the

three

years ended

October 31, 2017,

2016

and

2015,

was

$10.8

million,

$12.8

million and

$11.6

million, respectively. These amounts include rent expense for various month-to-month leases on model homes, furniture and equipment. These amounts also include the amortization of abandoned lease costs for leased space that we have abandoned due to our reduction in size and consolidation of certain locations.

Certain leases contain renewal or purchase options and generally provide that the Company shall pay for insurance, taxes and maintenance.

Note 5 - Property, Plant and Equipment

12 Months Ended

Oct. 31, 2017

Property, Plant and Equipment Disclosure [Text Block]

Property, Plant and Equipment

Homebuilding property, plant, and equipment consists of land, land improvements, buildings, building improvements, furniture and equipment used to conduct day-to-day business and are recorded at cost less accumulated depreciation.

Included in these amounts are

$1.0

million in land,

$60.1

million in buildings and

$26.4

million in accumulated depreciation for our current corporate headquarters, for a net book value of

$34.7

million, which was held for sale at

October 31, 2017 and sold on November 1, 2017 as discussed in Note 24.

Property, plant, and equipment balances as of

October 31, 2017

and

2016

were as follows:

	October 31,
(In thousands)	2017		2016

Land and land improvements	$	2,625	$	2,398
Buildings		69,279		67,860
Building improvements		9,458		8,231
Furniture		5,571		5,788
Equipment , including capitalized software		35,328		35,770
Total		122,261		120,047
Less accumulated depreciation		69,342		69,715
Total		52,919	$	50,332

Note 6 - Restricted Cash and Deposits	12 Months Ended
Note 6 - Restricted Cash and Deposits	Oct. 31, 2017
Notes to Financial Statements
Cash and Cash Equivalents Disclosure [Text Block]	6. Restricted Cash and Deposits Restricted cash and cash equivalents on the Consolidated Balance Sheets totaled to $24.4 million and $22.9 million as of October 31, 2017 and 2016, respectively, which included cash collateralizing our letter of credit agreements and facilities as discussed in Note 8. Also included in this balance were ( 1 ) homebuilding and financial services customers’ deposits of $0.4 million and $20.0 million at October 31, 2017, respectively, and $2.2 million and $15.1 million as of October 31, 2016, respectively, which are restricted from use by us, and ( 2 ) $2.3 million at October 31, 2017 and $3.9 million at October 31, 2016 of restricted cash under the terms of our mortgage warehouse lines of credit. Financial services restricted cash is included in Financial services other assets on the Consolidated Balance Sheets. Total Homebuilding Customers ’ deposits are shown as a liability on the 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.

Note 7 - Mortgage Loans Held for Sale

12 Months Ended

Oct. 31, 2017

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Mortgage Loans Held for Sale

Our mortgage banking subsidiary originates mortgage loans, primarily from the sale of our homes. Such mortgage loans are sold in the secondary mortgage market within a short period of time of origination. Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. We have elected the fair value option to record loans held for sale and therefore these loans are recorded at fair value with the changes in the value recognized in the Consolidated Statements of Operations in “Revenues: Financial services.” We currently use forward sales of mortgage-backed securities (“MBS”), interest rate commitments from borrowers and mandatory and/or best efforts forward commitments to sell loans to

third

-party purchasers to protect us from interest rate fluctuations. These short-term instruments, which do

not

require any payments to be made to the counterparty or purchaser in connection with the execution of the commitments, are recorded at fair value. Gains and losses on changes in the fair value are recognized in the Consolidated Statements of Operations in “Revenues: Financial services.”

October 31, 2017

and

2016,

119.6

million and

$147.4

million, respectively, of mortgages held for sale were pledged against our mortgage warehouse lines of credit (see Note

). We

may

incur losses with respect to mortgages that were previously sold that are delinquent and which had underwriting defects, but only to the extent the losses are

not

covered by mortgage insurance or resale value of the home. The reserves for these estimated losses are included in the “Financial services – Accounts payable and other liabilities” balances on the Consolidated Balance Sheets. As of

October 31, 2017

and

2016,

we had reserves specifically for

and

130

identified mortgage loans, respectively, as well as reserves for an estimate for future losses on mortgages sold but

not

yet identified to us. In fiscal

2017,

the adjustment to pre-existing provisions for losses from changes in estimates is primarily due to the settlement of a dispute for significantly less than the amount previously reserved.

The activity in our loan origination reserves in fiscal

2017

and

2016

was as follows:

	Year Ended
	October 31,
(In thousands)	2017			2016

Loan origination reserves, beginning of period	$	8,137		$	8,025
Provisions for losses during the period		165			261
Adjustments to pre-existing provisions for losses from changes in estimates		(4,571	)		48
Payments/settlements		(573	)		(197	)
Loan origination reserves, end of period	$	3,158		$	8,137

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Note 8 - Mortgages and Notes Payable	12 Months Ended
Note 8 - Mortgages and Notes Payable	Oct. 31, 2017
Notes to Financial Statements
Line of Credit [Text Block]	8. Mortgages and Notes Payable We have nonrecourse mortgage loans for certain communities totaling $64.5 million and $82.1 million (net of debt issuance costs) at October 31, 2017 and 2016, respectively, which are secured by the related real property, including any improvements, with an aggregate book value of $ 157.8 million and $201.8 million, respectively. The weighted-average interest rate on these obligations was 5.3% and 4.9% at October 31, 2017 and 2016, respectively, and the mortgage loan payments on each community primarily correspond to home deliveries. We also had nonrecourse mortgage loans on our corporate headquarters totaling $13.0 million and $14.3 million at October 31, 2017 and 2016, respectively. These loans had a weighted-average interest rate of 8.9% at October 31, 2017 and 8.8% at October 31, 2016. As of October 31, 2017, these loans had installment obligations with annual principal maturities in the years ending October 31 of: $1.4 million in 2018, $1.5 million in 2019, $1.7 million in 2020, $1.8 million in 2021, $2.0 million in 2022 and $4.6 million after 2022. On November 1, 2017, the non-recourse loans on our corporate headquarters were paid in full in connection with the sale of the building. In June 2013, K. Hovnanian Enterprises, Inc. (“K. Hovnanian”), as borrower, and we and certain of our subsidiaries, as guarantors, entered into a five -year, $75.0 million unsecured revolving credit facility (the “Credit Facility”) with Citicorp USA, Inc., as administrative agent and issuing bank, and Citibank, N.A., as a lender. The Credit Facility is available for both letters of credit and general corporate purposes. The Credit Facility does not contain any financial maintenance covenants, but does contain certain restrictive covenants that track those contained in our indenture governing the 8.0% Senior Notes due 2019, which are described in Note 9. The Credit Facility also contains certain customary events of default which would permit the administrative agent at the request of the required lenders to, among other things, declare all loans then outstanding to be immediately due and payable if such default is not cured within applicable grace periods, including the failure to make timely payments of amounts payable under the Credit Facility or other material indebtedness or the acceleration of other material indebtedness, the failure to comply with agreements and covenants or for representations or warranties to be correct in all material respects when made, specified events of bankruptcy and insolvency, and the entry of a material judgment against a loan party. Outstanding borrowings under the Credit Facility accrue interest at an annual rate equal to either, as selected by K. Hovnanian, (i) the alternate base rate plus the applicable spread determined on the date of such borrowing or (ii) an adjusted London Interbank Offered Rate (“LIBOR”) rate plus the applicable spread determined as of the date two business days prior to the first day of the interest period for such borrowing. As of October 31, 2017 there were $52.0 million of borrowings and $14.6 million of letters of credit outstanding under the Credit Facility. As of October 31, 2016, there were $52.0 million of borrowings and $17.9 million of letters of credit outstanding under the Credit Facility. As of October 31, 2017, we believe we were in compliance with the covenants under the Credit Facility. In addition to the Credit Facility, which matures in 2018, we have certain stand –alone cash collateralized letter of credit agreements and facilities under which there were a total of $1.7 million letters of credit outstanding at both October 31, 2017 and 2016. These agreements and facilities require us to maintain specified amounts of cash as collateral in segregated accounts to support the letters of credit issued thereunder, which will affect the amount of cash we have available for other uses. At both October 31, 2017 and October 31, 2016, the amount of cash collateral in these segregated accounts was $1.7 million, which is reflected in “Restricted cash and cash equivalents” on the Consolidated Balance Sheets. Our wholly owned mortgage banking subsidiary, K. Hovnanian American Mortgage, LLC (“K. Hovnanian Mortgage”), originates mortgage loans primarily from the sale of our homes. Such mortgage loans and related servicing rights are sold in the secondary mortgage market within a short period of time. In certain instances, we retain the servicing rights for a small amount of loans. Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”), which has a maturity date of July 31, 2018, is a short-term borrowing facility that provides up to $50.0 million through maturity. The loan is secured by the mortgages held for sale and is repaid when we sell the underlying mortgage loans to permanent investors. Interest is payable monthly on outstanding advances at an adjusted LIBOR rate, which was 1.24% at October 31, 2017, plus the applicable margin of 2.5% or 2.63% based upon type of loan. As of October 31, 2017 and October 31, 2016, the aggregate principal amount of all borrowings outstanding under the Chase Master Repurchase Agreement was $41.5 million and $44.1 million, respectively. K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Customers Bank (“Customers Master Repurchase Agreement”), which is a short-term borrowing facility that provides up to $50.0 million through its maturity on February 16, 2018. The loan is secured by the mortgages held for sale and is repaid when we sell the underlying mortgage loans to permanent investors. Interest is payable daily or as loans are sold to permanent investors on outstanding advances at the current LIBOR rate, plus the applicable margin ranging from 2.5% to 5.25% based on the type of loan and the number of days outstanding on the warehouse line. As of October 31, 2017 and October 31, 2016, the aggregate principal amount of all borrowings outstanding under the Customers Master Repurchase Agreement was $40.7 million and $38.8 million, respectively. K. Hovnanian Mortgage also has a secured Master Repurchase Agreement with Comerica Bank (“Comerica Master Repurchase Agreement”), which has a maturity date of June 21, 2018. The Comerica Master Repurchase Agreement is a short-term borrowing facility that provides up to $50.0 million through maturity. The loan is secured by the mortgages held for sale and is repaid when we sell the underlying mortgage loans to permanent investors. Interest is payable monthly at the current LIBOR rate, subject to a floor of 0.25%, plus the applicable margin of 2.5%. As of October 31, 2017 and October 31, 2016, the aggregate principal amount of all borrowings outstanding under the Comerica Master Repurchase Agreement was $32.4 million and $29.8 million, respectively. K. Hovnanian Mortgage had a secured Master Repurchase Agreement with Credit Suisse First Boston Mortgage Capital LLC which was a short-term borrowing facility that provided up to $50.0 million through its maturity on February 21, 2017. The facility was not renewed after maturity, therefore there were no outstanding borrowings thereunder as of October 31, 2017. As of October 31, 2016, the aggregate principal amount of all borrowings outstanding was $32.9 million. The Chase Master Repurchase Agreement, Customers Master Repurchase Agreement and Comerica Master Repurchase Agreement (together, the “Master Repurchase Agreements”) require K. Hovnanian Mortgage to satisfy and maintain specified financial ratios and other financial condition tests. Because of the extremely short period of time mortgages are held by K. Hovnanian Mortgage before the mortgages are sold to investors (generally a period of a few weeks), the immateriality to us on a consolidated basis of the size of the Master Repurchase Agreements, the levels required by these financial covenants, our ability based on our immediately available resources to contribute sufficient capital to cure any default, were such conditions to occur, and our right to cure any conditions of default based on the terms of the applicable agreement, we do not consider any of these covenants to be substantive or material. As of October 31, 2017, we believe we were in compliance with the covenants under the Master Repurchase Agreements.

Note 9 - Senior Notes and Term Loan

12 Months Ended

Oct. 31, 2017

Long-term Debt [Text Block]

Senior Notes and Term Loan

Senior Notes and Term Loan balances as of

October 31, 2017

and

October

31,

2016,

were as follows:

(In thousands)	October 31, 2017(1)(2)		October 31, 2016(1)(2)
Senior Secured Term Loan, net of debt issuance costs	$	72,987	$	72,646
Senior Secured Notes:
7.25% Senior Secured First Lien Notes due October 15, 2020	$	-	$	569,641
10.0% Senior Secured Second Lien Notes due October 15, 2018 (net of discount)		-		68,951
9.125% Senior Secured Second Lien Notes due November 15, 2020		-		143,337
9.50% Senior Secured Notes due November 15, 2020		74,350		74,140
2.0% Senior Secured Notes due November 1, 2021 (net of discount)		53,058		53,022
5.0% Senior Secured Notes due November 1, 2021 (net of discount)		133,732		131,998
10.0% Senior Secured Notes due July 15, 2022		434,543		-
10.5% Senior Secured Notes due July 15, 2024		394,953		-
Total Senior Secured Notes, net of debt issuance costs	$	1,090,636	$	1,041,089
Senior Notes:
7.0% Senior Notes due January 15, 2019	$	131,957	$	148,800
8.0% Senior Notes due November 1, 2019		234,293		247,348
Total Senior Notes, net of debt issuance costs	$	366,250	$	396,148
11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs	$	2,045	$	6,152
Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs	$	53,919	$	57,298

(

) “Notes payable and term loan” on our Consolidated Balance Sheets as of

October 31, 2017

and

October 31, 2016

consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of

$41.8

million and

$32.4

million, respectively.

(

) As discussed in Note

we adopted ASU

2015

November 2016.

We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal

2017

presentation. As a result,

$20.2

million of debt issuance costs at

October

31,

2016,

were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at

October 31, 2017

were

$16.1

million.

As of

October 31, 2017,

future maturities of our borrowings (assuming

exchange of our senior exchangeable notes), were as follows (

in thousands

Fiscal Year Ended October 31,
2018	$	56,002
2019		207,546
2020		235,961
2021		75,000
2022		635,000
Thereafter		400,000
Total	$	1,609,509

General

Except for K. Hovnanian, the issuer of the notes, our home mortgage subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures and certain of our title insurance subsidiaries, we and each of our subsidiaries are guarantors of the senior secured term loan and senior secured, senior, senior amortizing and senior exchangeable notes outstanding at

October 31, 2017 (

collectively, the “Notes Guarantors”). In addition to the Notes Guarantors, the

5.0%

Senior Secured Notes due

2021

(the

“5.0%

2021

Notes”), the

2.0%

Senior Secured Notes due

2021

(the

“2.0%

2021

Notes” and together with the

5.0%

2021

Notes, the

“2021

Notes”) and the

9.50%

2020

Notes (defined below) collectively with the

2021

Notes, the “JV Holdings Secured Group Notes”) are guaranteed by K. Hovnanian JV Holdings, L.L.C. and its subsidiaries, except for certain joint ventures and joint venture holding companies (collectively, the “JV Holdings Secured Group”). Members of the JV Holdings Secured Group do

not

guarantee K. Hovnanian's other indebtedness.

The

credit agreement governing the Term Loans (defined below) and the indentures governing the notes outstanding at

October 31, 2017

not

contain any financial maintenance covenants, but do contain restrictive covenants that limit, among other things, the Company’s ability and that of certain of its subsidiaries, including K. Hovnanian, to incur additional indebtedness (other than nonrecourse indebtedness, certain permitted indebtedness and refinancing indebtedness (under the Term Loans and the

9.50%

2020

Notes, any new or refinancing indebtedness

may

not

be scheduled to mature earlier than

January 15, 2021 (

so long as

member of the JV Holdings Secured Group is an obligor thereon), or

February 15, 2021 (

if otherwise), and under the

10.0%

Senior Secured Notes due

2022

(the

“10.0%

2022

Notes”) and the

10.5%

Senior Secured Notes due

2024

(the

“10.5%

2024

Notes”), any refinancing indebtedness of the

7.0%

Senior Notes due

2019

(the

“7.0%

Notes”) and

8.0%

Senior Notes due

2019

(the

“8.0%

Notes” and together with the

7.0%

Notes, the

“2019

Notes”)

may

not

be scheduled to mature earlier than

July 16, 2024)),

pay dividends and make distributions on common and preferred stock, repurchase subordinated indebtedness (with respect to the Term Loans and certain of the senior secured and senior notes) and common and preferred stock, make other restricted payments, including investments, sell certain assets (including in certain land banking transactions), incur liens, consolidate, merge, sell or otherwise dispose of all or substantially all assets, enter into certain transactions with affiliates and make cash repayments of the

2019

Notes (with respect to the

10.0%

2022

Notes and

10.5%

2024

Notes). The credit agreement governing the Term Loans and the indentures also contain events of default which would permit the lenders/holders thereof to exercise remedies with respect to the collateral (as applicable), declare the loans made under the Term Loan Facility (defined below) (the “Term Loans”)/notes to be immediately due and payable if

not

cured within applicable grace periods, including the failure to make timely payments on the Term Loans/notes or other material indebtedness, cross default to other material indebtedness, the failure to comply with agreements and covenants and specified events of bankruptcy and insolvency, with respect to the Term Loans, material inaccuracy of representations and warranties and a change of control, and, with respect to the Term Loans and senior secured notes, the failure of the documents granting security for the Term Loans and senior secured notes to be in full force and effect, and the failure of the liens on any material portion of the collateral securing the Term Loans and senior secured notes to be valid and perfected. As of

October 31, 2017,

we believe we were in compliance with the covenants of the Term Loan Facility and the indentures governing our outstanding notes.

If our consolidated fixed charge coverage ratio, as defined in the agreements governing our debt instruments (other than the senior exchangeable note

units discussed below), is less than

2.0

1.0,

we are restricted from making certain payments, including dividends, and from incurring indebtedness other than certain permitted indebtedness, refinancing indebtedness and nonrecourse indebtedness. As a result of this ratio restriction, we are currently restricted from paying dividends, which are

not

cumulative, on our

7.625%

Series A Preferred Stock. We anticipate that we will continue to be restricted from paying dividends for the foreseeable future. Our inability to pay dividends is in accordance with covenant restrictions and will

not

result in a default under our debt instruments or otherwise affect compliance with any of the covenants contained in our debt instruments.

Under the terms of our debt agreements, we have the right to make certain redemptions and prepayments and, depending on market conditions and covenant restrictions,

may

do so from time to time. We also continue to evaluate our capital structure and

may

also continue to make debt purchases and/or exchanges for debt or equity from time to time through tender offers, open market purchases, private transactions, or otherwise, or seek to raise additional debt or equity capital, depending on market conditions and covenant restrictions.

Any liquidity-enhancing transaction will depend on identifying counterparties, negotiation of documentation and applicable closing conditions and any required approvals. Due to covenant restrictions in our debt instruments, we are currently limited in the amount of debt we can incur that does

not

qualify as refinancing indebtedness with certain maturity requirements as discussed above (a limitation that we expect to continue for the foreseeable future), even if market conditions would otherwise be favorable, which could also impact our ability to grow our business.

Fiscal

2017

During the year ended

October 31, 2017,

we repurchased in open market transactions

$17.5

million aggregate principal amount of

7.0%

Notes,

$14.0

million aggregate principal amount of

8.0%

Notes and

6,925

enior exchangeable note units representing

$6.9

million stated amount of senior exchangeable note units. The aggregate purchase price for these transactions was

$30.8

million, plus accrued and unpaid interest. These transactions resulted in a gain on extinguishment of debt of

$7.8

million, which is included as “Loss on Extinguishment of Debt” on the Consolidated Statement of Operations. This gain was offset by

$0.4

million of costs associated with the

9.50%

Senior Secured Notes due

2020

(the

“9.50%

2020

Notes”) issued during the

fourth

quarter of fiscal

2016

and the debt transactions during the

third

quarter of fiscal

2017

discussed below.

July 27, 2017,

K. Hovnanian issued

$440.0

million aggregate principal amount of

10.0%

2022

Notes and

$400.0

million aggregate principal amount of

10.5%

2024

Notes. The net proceeds from these issuances together with available cash were used to (i) purchase

$575,912,000

principal amount of

7.25%

Senior Secured First Lien Notes due

2020

(the

“7.25%

First Lien Notes”),

$87,321,000

principal amount of

9.125%

Senior Secured Second Lien Notes due

2020

(the

“9.125%

Second Lien Notes” and, together with the

7.25%

First Lien Notes, the “

2020

Secured Notes”) and all

$75,000,000

principal amount of

10.0%

Senior Secured Second Lien Notes due

2018

(the

“10.0%

Second Lien Notes”) that were tendered and accepted for purchase pursuant to K. Hovnanian’s offers to purchase for cash (the “Tender Offers”) any and all of the

7.25%

First Lien Notes, the

9.125%

Second Lien Notes and the

10.0%

Second Lien Notes and to pay related tender premiums and accrued and unpaid interest thereon to the date of purchase and (ii) satisfy and discharge all obligations (and cause the release of the liens on the collateral securing such indebtedness) under the indentures under which the

7.25%

First Lien Notes, the

9.125%

Second Lien Notes and the

10.0%

Second Lien Notes were issued and in connection therewith to call for redemption on

October 15, 2017

and on

November 15, 2017

all remaining

$1,088,000

principal amount of

7.25%

First Lien Notes and all remaining

$57,679,000

principal amount of

9.125%

Second Lien Notes, respectively, that were

not

validly tendered and purchased in the applicable Tender Offer in accordance with the redemption provisions of the indentures governing the

2020

Secured Notes. These transactions resulted in a loss on extinguishment of debt of

$42.3

million, which is included as “Loss on Extinguishment of Debt” on the Consolidated Statement of Operations.

The

10.0%

2022

Notes have a maturity of

July 15, 2022

and bear interest at a rate of

10.0%

per annum payable semi-annually on

January 15

and

July 15

of each year, commencing

January 15, 2018,

to holders of record at the close of business on

January 1

and

July 1,

as the case

may

be, immediately preceding such interest payment dates. The

10.0%

2022

Notes are redeemable in whole or in part at our option at any time prior to

July 15, 2019

100.0%

of their principal amount plus an applicable “Make-Whole Amount.” K. Hovnanian

may

also redeem some or all of the

10.0%

2022

Notes at

105.0%

of principal commencing

July 15, 2019,

102.50%

of principal commencing

July 15, 2020

and at

100.0%

of principal commencing

July 15, 2021.

In addition, K. Hovnanian

may

also redeem up to

35.0%

of the aggregate principal amount of the

10.0%

2022

Notes prior to

July 15, 2019

with the net cash proceeds from certain equity offerings at

110.0%

of principal.

The

10.5%

2024

Notes have a maturity of

July 15, 2024

and bear interest at a rate of

10.5%

per annum payable semi-annually on

January 15

and

July 15

of each year, commencing

January 15, 2018,

to holders of record at the close of business on

January 1

and

July 1,

as the case

may

be, immediately preceding such interest payment dates. The

10.5%

2024

Notes are redeemable in whole or in part at our option at any time prior to

July 15, 2020

100.0%

of their principal amount plus an applicable “Make-Whole Amount.” K. Hovnanian

may

also redeem some or all of the

10.5%

2024

Notes at

105.25%

of principal commencing

July 15, 2020,

102.625%

of principal commencing

July 15, 2021

and at

100.0%

of principal commencing

July 15, 2022.

In addition, K. Hovnanian

may

also redeem up to

35.0%

of the aggregate principal amount of the

10.5%

2024

Notes prior to

July 15, 2020

with the net cash proceeds from certain equity offerings at

110.50%

of principal.

All of K. Hovnanian

’s obligations under the

10.0%

2022

Notes and the

10.5%

2024

Notes are guaranteed by the Notes Guarantors. In addition to pledges of the equity interests in K. Hovnanian and the subsidiary Notes Guarantors which secure the

10.0%

2022

Notes and the

10.5%

2024

Notes, the

10.0%

2022

Notes and the

10.5%

2024

Notes and the guarantees thereof will also be secured in accordance with the terms of the indenture and security documents governing such Notes by pari passu liens on substantially all of the assets owned by K. Hovnanian and the Notes Guarantors, in each case subject to permitted liens and certain exceptions (the collateral securing the

10.0%

2022

Notes and the

10.5%

2024

Notes will be the same as that securing the Term Loans). The liens securing the

10.0%

2022

Notes and the

10.5%

2024

Notes rank junior to the liens securing the Term Loans and any other future secured obligations that are senior in priority with respect to the assets securing the

10.0%

2022

Notes and the

10.5%

2024

Notes.

In connection with the issuance of the

10.0%

2022

Notes and the

10.5%

2024

Notes, K. Hovnanian and the Notes Guarantors entered into security and pledge agreements pursuant to which K. Hovnanian and the Notes Guarantors pledged substantially all of their assets to secure their obligations under the

10.0%

2022

Notes and the

10.5%

2024

Notes, subject to permitted liens and certain exceptions as set forth in such agreements. K. Hovnanian and the Notes Guarantors also entered into applicable intercreditor and collateral agency agreements which set forth agreements with respect to the relative priority of their various secured obligations.

The indenture governing the

10.0%

2022

Notes and the

10.5%

2024

Notes was entered into on

July 27, 2017

among K. Hovnanian, the Notes Guarantors and Wilmington Trust, National Association, as trustee and collateral agent. The covenants and events of default in the indenture are described above under “

—General”.

Fiscal

2016

January 15, 2016,

$172.7

million principal amount of our

6.25%

Senior Notes due

2016

matured and was paid and on

May 15, 2016,

$86.5

million principal amount of our

7.5%

Senior Notes due

2016

matured and was paid. On

October 11, 2016 (

the next business day following the redemption date of

October 8, 2016),

all

$121.0

million principal amount of our

8.625%

Senior Notes due

2017

were redeemed for a redemption price of approximately

$126.1

million, which included accrued and unpaid interest.

September 8, 2016,

the Company and K. Hovnanian completed certain financing transactions with certain investment funds managed by

affiliates of

H/2

Capital Partners LLC (collectively, the “Investor”) pursuant to which the Investor (

) funded a

$75.0

million senior secured term loan facility (the “Term Loan Facility”), which was borrowed by K. Hovnanian and guaranteed by the Notes Guarantors, (

) purchased

$75.0

million aggregate principal amount of

10.0%

Second Lien Notes issued by K. Hovnanian and guaranteed by the Notes Guarantors (all such notes were subsequently purchased in the Tender Offers as described above under “-Fiscal

2017”

), and (

) exchanged

$75.0

million aggregate principal amount of

9.125%

Second Lien Notes held by such Investor for

$75.0

million of newly issued

9.50%

2020

Notes issued by K. Hovnanian and guaranteed by the Notes Guarantors and the members of the JV Holdings Secured Group, for aggregate cash proceeds of approximately

$146.3

million, before expenses.

The Term Loan Facility has a maturity of

August 1, 2019 (

provided that if any of K. Hovnanian

’s

7.0%

Senior Notes due

2019

(the

“7.0%

Notes”) remain outstanding on

October 15, 2018,

the maturity date of the Term Loan Facility will be

October 15, 2018,

or if any refinancing indebtedness with respect to the

7.0%

Notes has a maturity date prior to

January 15, 2021,

the maturity date of the Term Loan Facility will be

October 15, 2018)

and bears interest at a rate equal to LIBOR plus an applicable margin of

7.0%

or, at K. Hovnanian’s option, a base rate plus an applicable margin of

6.0%,

payable monthly. At any time from and after

September 8, 2018,

K. Hovnanian

may

voluntarily repay outstanding Term Loans, provided that voluntary prepayments of Eurodollar loans made on a date other than the last day of an interest period applicable thereto are subject to customary breakage costs and voluntary prepayments made prior to

February 1, 2019

are subject to a premium equal to

1.0%

of the aggregate principal amount of the Term Loans so prepaid (any prepayment of the Term Loans made on or after

February 1, 2019

are without any prepayment premium).

The

9.50%

2020

Notes have a maturity of

November 15, 2020,

and bear interest at a rate of

9.50%

per annum, payable semi-annually on

February 15

and

August 15

of each year, to holders of record at the close of business on

February 1

and

August 1,

as the case

may

be, immediately preceding such interest payment dates. The

9.50%

2020

Notes are redeemable in whole or in part at our option at any time prior to

November 15, 2018

100%

of their principal amount plus an applicable “Make-Whole Amount.” At any time and from time to time on or after

November 15, 2018,

K. Hovnanian

may

also redeem some or all of the

9.50%

2020

Notes at a redemption price equal to

100%

of their principal amount. In addition, we

may

also redeem up to

35%

of the aggregate principal amount of the

9.50%

2020

Notes prior to

November 15, 2018

with the net cash proceeds from certain equity offerings at

109.50%

of principal.

All of K. Hovnanian

’s obligations under the Term Loan Facility are guaranteed by the Notes Guarantors. The Term Loan Facility and the guarantees thereof are secured, subject to permitted liens and other exceptions, on a

first

lien priority basis relative to the

10.0%

2022

Notes and the

10.5%

2024

Notes (and on a

first

lien super priority basis relative to future

first

lien indebtedness). The

9.50%

2020

Notes are guaranteed by the Notes Guarantors and the members of the JV Holdings Secured Group. The Exchange Notes are secured on a pari passu

first

lien basis with K. Hovnanian’s

2021

Notes, by substantially all of the assets of the members of the JV Holdings Secured Group, subject to permitted liens and certain exceptions.

October 31, 2017,

the aggregate book value of the real

property that constituted collateral securing the Term Loans was

$419.9

million, which does

not

include the impact of inventory investments, home deliveries or impairments thereafter and which

may

differ from the value if it were appraised. Cash and cash equivalents collateral that secured the Term Loans was

$381.1

million as of

October 31, 2017,

which included

$1.7

million of restricted cash collateralizing certain letters of credit. Subsequent to such date, fluctuations as a result of cash uses include general business operations and real estate and other investments along with cash inflow primarily from deliveries. In addition, collateral securing the Term Loans includes equity interest in K Hovnanian and the subsidiary Notes Guarantors.

Other Secured Obligations

November 1, 2011,

K. Hovnanian issued

$141.8

million aggregate principal amount of

5.0%

2021

Notes and

$53.2

million aggregate principal amount of

2.0%

2021

Notes. The

5.0%

2021

Notes and the

2.0%

2021

Notes were issued as separate series under an indenture, but have substantially the same terms other than with respect to interest rate and related redemption provisions, and vote together as a single class. The

2021

Notes are redeemable in whole or in part at our option at any time, at

100.0%

of the principal amount plus the greater of

of the principal amount and an applicable “Make-Whole Amount.”

The guarantees of the JV Holdings Secured Group with respect to the

2021

Notes and the

9.50%

2020

Notes are secured, subject to permitted liens and other exceptions, by a

first

-priority lien on substantially all of the assets of the members of the JV Holdings Secured Group. As of

October 31, 2017,

the collateral securing the guarantees included (

)

$84.3

million of cash and cash equivalents (subsequent to such date, fluctuations as a result of cash uses include general business operations and real estate and other investments along with cash inflow primarily from deliveries); (

) $

128.9

million aggregate book value of real property of the JV Holdings Secured Group, which does

not

include the impact of inventory investments, home deliveries or impairments thereafter and which

may

differ from the value if it were appraised; and (

) equity interests owned by guarantors that are members of the JV Holdings Secured Group. Members of the JV Holdings Secured Group also own equity in joint ventures, either directly or indirectly through ownership of joint venture holding companies, with a book value of

$88.2

million as of

October 31, 2017;

this equity is

not

pledged to secure, and is

not

collateral for, the

2021

Notes. Members of the JV Holdings Secured Group are “unrestricted subsidiaries” under K. Hovnanian's other senior secured notes and senior notes and the Term Loan Facility, and thus have

not

guaranteed such indebtedness.

Senior Notes

K. Hovnanian

’s

7.0%

Notes are redeemable in whole or in part at our option at any time at

101.75%

of principal commencing

January 15, 2017

and

100.0%

of principal commencing

January 15, 2018.

K. Hovnanian

’s

8.0%

Notes are redeemable in whole or in part at K. Hovnanian’s option at any time prior to

August 1, 2019

at a redemption price equal to

100.0%

of their principal amount plus an applicable “Make-Whole Amount.” At any time and from time to time on or after

August 1, 2019,

K. Hovnanian

may

also redeem some or all of the notes at a redemption price equal to

100.0%

of their principal amount.

Units

October 2, 2012,

the Company and K. Hovnanian issued

$100,000,000

aggregate stated amount of

6.0%

Exchangeable Note Units (the “Units”) (equivalent to

100,000

Units).

Each

$1,000

stated amount of Units initially consists of (

) a

zero

coupon senior exchangeable note due

December 1, 2017 (

a “Senior Exchangeable Note”) issued by K. Hovnanian, which bears

cash interest and has an initial principal amount of

$768.51

per Senior Exchangeable Note, and that will accrete to

$1,000

at maturity and (

) a senior amortizing note due

December 1, 2017 (

a “Senior Amortizing Note”) issued by K. Hovnanian, which has an initial principal amount of

$231.49

per Senior Amortizing Note, bears interest at a rate of

11.0%

per annum, and has a final installment payment date of

December 1, 2017.

Each Unit

may

be separated into its constituent Senior Exchangeable Note and Senior Amortizing Note after the initial issuance date of the Units, and the separate components

may

be combined to create a Unit.

Each Senior

Exchangeable Note had an initial principal amount of

$768.51

(which will accrete to

$1,000

over the term of the Senior Exchangeable Note at an annual rate of

5.17%

from the date of issuance, calculated on a semi-annual bond equivalent yield basis). Holders

may

exchange their Senior Exchangeable Notes at their option at any time prior to

5:00

p.m., New York City time, on the business day immediately preceding

December 1, 2017.

Each Senior Exchangeable Note will be exchangeable for shares of Class A Common Stock at an initial exchange rate of

185.5288

shares of Class A Common Stock per Senior Exchangeable Note (equivalent to an initial exchange price, based on

$1,000

principal amount at maturity, of approximately

$5.39

per share of Class A Common Stock). The exchange rate will be subject to adjustment in certain events. If certain corporate events occur prior to the maturity date, the Company will increase the applicable exchange rate for any holder who elects to exchange its Senior Exchangeable Notes in connection with such corporate event. In addition, holders of Senior Exchangeable Notes will also have the right to require K. Hovnanian to repurchase such holders’ Senior Exchangeable Notes upon the occurrence of certain of these corporate events. As of

October 31, 2017,

18,305

Senior Exchangeable Notes have been converted into

3.4

million shares of our Class A Common Stock, all of which were converted during the

first

quarter of fiscal

2013.

September 2016,

K. Hovnanian purchased a total of

20,823

Units for an aggregate purchase price of

$20.6

million, in

November 2016,

K. Hovnanian purchased a total of

6,925

Units for an aggregate purchase price of

$6.9

million and during the year ended

October 31, 2017,

K. Hovnanian purchased certain Units as discussed above under “—Fiscal

2017”.

On each

June 1

and

December 1 (

each, an “installment payment date”), K. Hovnanian will pay holders of Senior Amortizing Notes equal semi-annual cash installments of

$30.00

per Senior Amortizing Note (except for the

June 1, 2013

installment payment, which was

$39.83

per Senior Amortizing Note), which cash payment in the aggregate will be equivalent to

6.0%

per year with respect to each

$1,000

stated amount of Units.

Each installment will constitute a payment of interest (at a rate of

11.0%

per annum) and a partial repayment of principal on the Senior Amortizing Note. Following certain corporate events that occur prior to the maturity date, holders of the Senior Amortizing Notes will have the right to require K. Hovnanian to repurchase such holders’ Senior Amortizing Notes.

Note 10 - Operating and Reporting Segments

12 Months Ended

Oct. 31, 2017

Segment Reporting Disclosure [Text Block]

10.

Operating and Reporting Segments

Our operating segments are components of our business for which discrete financial information is available and reviewed regularly by the chief operating decision maker, our Chief Executive Officer, to evaluate

performance and make operating decisions. Based on this criteria, each of our communities qualifies as an operating segment, and therefore, it is impractical to provide segment disclosures for this many segments. As such, we have aggregated the homebuilding operating segments into

six

reportable segments.

Our homebuilding operating segments are aggregated into reportable segments based primarily upon geographic proximity, similar regulatory environments, land acquisition characteristics and similar methods used to construct and sell homes.

Our reportable segments consist of the following

six

homebuilding segments and a financial services segment noted below. During fiscal

2016,

we decided to exit the Minneapolis, Minnesota and Raleigh, North Carolina markets and in the

third

quarter of fiscal

2016,

we completed the sale of our portfolios in those markets.

Homebuilding:

	( 1 )	Northeast (New Jersey and Pennsylvania)
	( 2 )	Mid-Atlantic (Delaware, Maryland, Virginia, Washington D.C. and West Virginia)
	( 3 )	Midwest (Illinois and Ohio)
	( 4 )	Southeast (Florida, Georgia and South Carolina)
	( 5 )	Southwest (Arizona and Texas)
	( 6 )	West (California)

Financial Services

Operations of the Company

’s Homebuilding segments primarily include the sale and construction of single-family attached and detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. In addition, from time to time, operations of the homebuilding segments include sales of land. Operations of the Company’s Financial Services segment include mortgage banking and title services provided to the homebuilding operations’ customers. We do

not

typically retain or service mortgages that we originate but rather sell the mortgages and related servicing rights to investors.

Corporate and unallocated primarily represents operations at our headquarters in Red Bank, New Jersey.

This includes our executive offices, information services, human resources, corporate accounting, training, treasury, process redesign, internal audit, construction services, and administration of insurance, quality and safety. It also includes interest income and interest expense resulting from interest incurred that cannot be capitalized in inventory in the Homebuilding segments, as well as the gains or losses on extinguishment of debt from any debt repurchases or exchanges.

Evaluation of segment performance is based primarily on operating earnings from continuing operations before provision for income taxes (“Income (loss) before income taxes”).

Income (loss) before income taxes for the Homebuilding segments consist of revenues generated from the sales of homes and land, income (loss) from unconsolidated entities, management fees and other income, less the cost of homes and land sold, selling, general and administrative expenses and interest expense. Income before income taxes for the Financial Services segment consist of revenues generated from mortgage financing, title insurance and closing services, less the cost of such services and selling, general and administrative expenses incurred by the Financial Services segment.

Operational results of each segment are

not

necessarily indicative of the results that would have occurred had the segment been an independent stand-alone entity during the periods presented.

Financial information relating to the Company

’s segment operations was as follows:

	Year Ended October 31,
(In thousands)	2017			2016			2015
Revenues:
Northeast	$	209,509		$	278,028		$	189,497
Mid-Atlantic		464,126			458,579			399,500
Midwest		199,770			311,322			311,449
Southeast		260,402			260,584			207,662
Southwest		827,503			1,028,529			823,853
West		430,546			342,447			159,969
Total homebuilding		2,391,856			2,679,489			2,091,930
Financial services		58,743			72,617			56,665
Corporate and unallocated		1,066			141			(115	)
Total revenues	$	2,451,665		$	2,752,247		$	2,148,480
(Loss) income before income taxes:
Northeast	$	2,300		$	(3,869	)	$	(7,742	)
Mid-Atlantic		17,191			17,476			21,431
Midwest		(1,151	)		(11,416	)		14,012
Southeast		(6,199	)		(17,791	)		(6,330	)
Southwest		71,540			84,424			67,437
West		19,636			3,445			(17,145	)
Total homebuilding		103,317			72,269			71,663
Financial services		26,397			35,473			24,693
Corporate and unallocated (1)		(174,958	)		(105,306	)		(118,121	)
(Loss) income before income taxes	$	(45,244	)	$	2,436		$	(21,765	)

(

) Corporate and unallocated for the year ended

October 31, 2017

included corporate general and administrative costs of

$59.4

million, interest expense of

$69.1

million (a component of Other interest on our Consolidated Statements of Operations), loss on extinguishment of debt of

$34.9

million,

$12.5

million adjustment for construction defect reserves (discussed in Note

) and

$0.9

million of other income and expenses primarily related to interest income, rental income, bond amortization and stock compensation.

Corporate and unallocated for the year ended

October 31, 2016

included corporate general and administrative costs of

$60.1

million, interest expense of

$50.4

million (a component of Other interest on our Consolidated Statements of Operations), loss on extinguishment of debt of

$3.2

million, $(

9.2

) million adjustment for construction defect reserves (discussed in Note

) and

$0.8

million of other income and expenses primarily related to bond amortization, stock compensation and rental income. Corporate and unallocated for the year ended

October 31, 2015

included corporate general and administrative costs of

$62.5

million, interest expense of

$64.5

million (a component of Other interest on our Consolidated Statements of Operations), $(

14.4

) million adjustment for construction defect reserves (discussed in Note

) and

$5.5

million of other income and expenses primarily related to bond amortization, stock compensation and rental income.

	October 31,
(In thousands)	2017		2016
Assets:
Northeast	$	180,545	$	219,363
Mid-Atlantic		224,398		292,899
Midwest		84,960		111,596
Southeast		231,644		226,124
Southwest		294,337		341,472
West		175,347		269,400
Total homebuilding		1,191,231		1,460,854
Financial services		162,113		197,230
Corporate and unallocated (1)		547,554		696,872
Total assets	$	1,900,898	$	2,354,956

(

)

Includes

$283.6

million of income taxes receivable - including

deferred tax assets in fiscal

2016

	October 31,
(In thousands)	2017		2016
Investments in and advances to unconsolidated joint ventures:
Northeast	$	36,411	$	28,115
Mid-Atlantic		20,873		22,407
Midwest		4,268		5,516
Southeast		36,320		22,876
Southwest		11,832		3,625
West		4,451		17,547
Total homebuilding		114,155		100,086
Corporate and unallocated		935		416
Total investments in and advances to unconsolidated joint ventures	$	115,090	$	100,502

	Year Ended October 31,
(In thousands)	2017			2016			2015
Homebuilding interest expense:
Northeast	$	20,308		$	19,417		$	14,150
Mid-Atlantic		23,886			23,662			16,268
Midwest		7,799			12,275			10,405
Southeast		13,646			16,770			9,552
Southwest		25,278			37,552			26,147
West		25,799			23,295			10,381
Total homebuilding		116,716			132,971			86,903
Corporate and unallocated		69,124			50,387			64,545
Financial services interest expense (1)		(630	)		(763	)		(1,066	)
Total interest expense, net	$	185,210		$	182,595		$	150,382

(

)

Financial services interest expenses are included in the Financial services lines on the Consolidated Statements of Operations in the respective revenues and expenses sections.

	Year Ended October 31,
(In thousands)	2017		2016		2015
Depreciation:
Northeast	$	71	$	62	$	136
Mid-Atlantic		50		56		28
Midwest		858		497		361
Southeast		83		82		40
Southwest		78		104		89
West		94		92		79
Total homebuilding		1,234		893		733
Financial services		16		41		47
Corporate and unallocated		2,999		2,631		2,608
Total depreciation	$	4,249	$	3,565	$	3,388

	Year Ended October 31,
(In thousands)	2017		2016		2015
Net additions to operating properties and equipment:
Northeast	$	442	$	78	$	-
Mid-Atlantic		71		208		58
Midwest		3,773		3,180		637
Southeast		28		233		227
Southwest		18		199		173
West		80		91		88
Total homebuilding		4,412		3,989		1,183
Financial services		-		30		-
Corporate and unallocated		2,066		3,988		871
Total net additions to operating properties and equipment	$	6,478	$	8,007	$	2,054

	Year Ended October 31,
(In thousands)	2017			2016			2015
Equity in (losses) earnings from unconsolidated joint ventures:
Northeast	$	(4,376	)	$	(2,639	)	$	856
Mid-Atlantic		1,180			(27	)		4,502
Midwest		(1,424	)		(1,304	)		(105	)
Southeast		837			(1,774	)		1,213
Southwest		(306	)		(64	)		-
West		(2,958	)		1,462			(2,297	)
Total equity in (losses) earnings from unconsolidated joint ventures	$	(7,047	)	$	(4,346	)	$	4,169

Note 11 - Income Taxes

12 Months Ended

Oct. 31, 2017

Income Tax Disclosure [Text Block]

11.

Income Taxes

Income taxes payable (receivable), including deferred benefits, consists of the following:

	Year Ended October 31,
(In thousands)	2017		2016
State income taxes:
Current	$	2,227	$	1,945
Deferred		-		(9,890	)
Federal income taxes:
Current		-		-
Deferred		-		(275,688	)
Total	$	2,227	$	(283,633	)

The provision for income taxes is composed of the following charges (benefits):

	Year Ended October 31,
(In thousands)	2017		2016			2015
Current income tax expense (benefit):
Federal (1)	$	-	$	(2,796	)	$	(1,497	)
State (2)		1,371		1,200			523
Total current income tax expense (benefit):		1,371		(1,596	)		(974	)
Federal		275,688		5,594			(8,461	)
State		9,890		1,257			3,770
Total deferred income tax expense (benefit):		285,578		6,851			(4,691	)
Total	$	286,949	$	5,255		$	(5,665	)

(

)

The current federal income tax did

not

include the use of federal net operating losses for the year ended

October 31, 2017.

The current federal income tax

benefit

is net of the use of federal net operating losses totaling

$4.4

million and

$3.7

million for the years ended

October

31,

2016

and

2015,

respectively.

(

)

The current state income tax expense

(benefit)

is net of the use of state net operating losses totaling

$18.2

million,

$16.4

million and

$12.3

million for the years ended

October

31,

2017,

2016

and

2015,

respectively.

The total income tax expense of

$286.9

million for the period ended

October 31, 2017

was primarily due to increasing our valuation allowance to fully reserve against our deferred tax assets (“DTAs”). In addition, the same periods were also impacted by state tax expense from income generated in some states, which was

not

offset by tax benefits in other states that had losses for which we fully reserve the net operating losses. The total income tax expense of

$5.3

million for the period ended

October 31, 2016

was primarily due to current state taxes and permanent differences related to stock compensation, partially offset by a federal tax benefit related to receiving a specified liability loss refund of taxes paid in fiscal year

2002.

The total income tax benefit of

$5.7

million recognized for the

year ended

October 31, 2015

was primarily due to deferred taxes resulting from the loss before income taxes plus the reversal of state tax reserves for uncertain state tax positions, partially offset by state tax expenses.

The permanent difference in fiscal

2016

related to stock compensation arose because for tax purposes, the amount of stock compensation the Company expenses is the amount reported on an associate

’s W-

when the equity award is exercised or received, whereas for accounting purposes, the amount the Company expenses is based on the fair value of the equity award on the date of grant. Therefore, the permanent difference due to stock compensation was because of this different treatment, which does

not

arise until the time the equity award is exercised or received by the associate and therefore reported on an associate’s W-

The amount was significant because of the issuance in fiscal

2016

of stock to Company executives in respect of awards that had been granted over

ten

years ago at significantly higher stock prices and thus significantly higher fair values as compared to the time of issuance to the executive. As a result, at the time the stock awards were issued in fiscal

2016,

a significant permanent difference between book and tax was created impacting the effective tax rate for

2016.

The federal specified liability loss refund of taxes in fiscal year

2002

was due to an amendment of a prior year

’s tax return. The Internal Revenue Service issued the refund following the Company’s application therefor during the year ended

October 31, 2016.

The refund related to the portion of the fiscal year

2012

NOL attributable to a specified liability loss which, pursuant to Internal Revenue Code Section

172

(b)(

)(C), can be carried back

ten

years to

October 31, 2002.

A specified liability is any amount allowable as a deduction attributable to a product liability or expense incurred in investigation or settlement of claims because of a product liability. The refund was received in

February 2016

and therefore the tax credit was recorded in the

second

quarter of fiscal

2016.

Our federal net operating losses of

$1.6

billion expire between

2028

and

2037.

Our state NOLs of

$2.3

billion expire between

2018

and

2037.

Of the total state amount,

$247.1

million will expire between

2018

through

2022;

$463.1

million will expire between

2023

through

2027;

$1.2

billion will expire between

2028

through

2032;

and

$348.6

million will expire between

2033

through

2037.

Deferred federal and state income tax assets primarily represent the deferred tax benefits arising from net operating loss carryforwards and temporary differences between book and tax income which will be recognized in future years as an offset against future taxable income. If the combination of future years

’ income (or loss) and the reversal of the timing differences results in a loss, such losses can be carried forward to future years. In accordance with ASC

740,

we evaluate our deferred tax assets quarterly to determine if valuation allowances are required. ASC

740

requires that companies assess whether valuation allowances should be established based on the consideration of all available evidence using a “more likely than

not”

standard.

As of

October 31, 2017,

we considered all available positive and negative evidence to determine whether, based on the weight of that evidence, an additional valuation allowance for our DTAs was necessary in accordance with ASC

740.

Listed below, in order of the weighting of each factor, is the available positive and negative evidence that we considered in determining that it is more likely than

not

that all of our DTAs will

not

be realized. In analyzing these factors, overall the negative evidence, both objective and subjective, outweighed the positive evidence. Based on this analysis, we increased the valuation allowance against our DTAs such that we have a full valuation allowance and determined that the current valuation allowance for deferred taxes of

$918.2

million as of

October 31, 2017

is appropriate.

	1.	Fiscal 2017 financial results, especially the $50.2 million pre-tax loss in the third quarter of 2017 primarily from the $42.3 million loss on extinguishment of debt during the quarter, that put us in a cumulative three -year loss position as of July 31, 2017, and we are still in a cumulative three -year loss position as of October 31, 2017. Per ASC 740, cumulative losses are one of the most objectively verifiable forms of negative evidence. (Negative Objective Evidence)
	2.	In the third quarter of fiscal 2017, we completed a debt refinancing/restructuring transaction which, by extending our debt maturities, will enable us to allocate cash to invest in new communities and grow our community count to get back to sustained profitability. (Positive Objective Evidence)
	3.	Recent financial results of $12.3 pre-tax income in the fourth quarter of 2017. (Positive Objective Evidence)
	4.	The refinancing discussed above will increase our interest incurred in fiscal 2018 and future years (based on our longer term modeling) by $23.4 million per year. (Negative Objective Evidence)
	5.	We incurred pre-tax losses during the housing market decline and the slower than expected housing market recovery. (Negative Objective Evidence)
	6.	We exited two geographic markets and are winding down operations in two other markets that have historically had losses. By exiting these underperforming markets, the Company will be able to redeploy capital to better performing markets, which over time should improve our profitability. (Positive Subjective Evidence)
	7.	Evidence of a sustained recovery in the housing markets in which we operate, supported by economic data showing housing starts, homebuilding volume and prices all increasing and forecasted to continue to increase. (Positive Subjective Evidence)
	8.	The historical cyclicality of the U.S. housing market, a more restrictive mortgage lending environment compared to before the housing downturn, the uncertainty of the overall US economy and government policies and consumer confidence, all or any of which could continue to hamper a faster, stronger recovery of the housing market. (Negative Subjective Evidence)

The deferred tax assets and liabilities have been recognized in the Consolidated Balance Sheets as follows:

	Year Ended October 31,
(In thousands)	2017			2016
Deferred tax assets:
Depreciation	$	246		$	1,729
Inventory impairment loss		122,584			174,489
Uniform capitalization of overhead		5,766			6,802
Warranty and legal reserves		8,763			13,238
Deferred income		2,341			5,061
Acquisition intangibles		4,420			8,829
Restricted stock bonus		4,202			4,526
Rent on abandoned space		101			1,006
Stock options		6,539			7,073
Provision for losses		38,831			34,505
Joint venture loss		12,028			4,171
Federal net operating losses		549,862			520,117
State net operating losses		172,307			170,014
Other		20,678			22,862
Total deferred tax assets		948,668			974,422
Deferred tax liabilities:
Debt repurchase income		30,465			60,901
Total deferred tax liabilities		30,465			60,901
Valuation allowance		(918,203	)		(627,943	)
Net deferred income taxes	$	-		$	285,578

The effective tax rate varied from the statutory federal income tax rate. The effective tax rate is affected by a number of factors, the most significant of which has been the valuation allowance related to our deferred tax assets.

Due to the effects of these factors, our effective tax rates for

2017,

2016

and

2015

are

not

correlated to the amount of our income or loss before income taxes. The sources of these factors were as follows:

	Year Ended October 31,
	2017			2016			2015
Computed “expected” tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		1.0			65.4			(15.6	)
Permanent differences, net		(2.4	)		222.2			(0.4	)
Deferred tax asset valuation allowance impact		(667.8	)		-			-
Tax contingencies		-			0.3			3.2
Adjustments to prior years ’ tax accruals(1)		-			(107.2	)		3.8
Effective tax rate		(634.2	)%		215.7	%		26.0	%

(

)

The adjustments to prior years

’ tax accruals includes the impact of a federal specified liability loss refund of taxes paid in fiscal year

2002

of (

114.8%

) for the year ended

October

31,

2016.

ASC

740

provides that a tax benefit from an uncertain tax position

may

be recognized when it is more likely than

not

that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

Income tax positions must meet a more-likely-than-

not

recognition threshold at the effective date to be recognized upon the adoption of ASC

740

and in subsequent periods. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

We recognize tax liabilities in accordance with ASC

740

and we adjust these liabilities when our judgment changes as a result of the evaluation of new information

not

previously available. Due to the complexity of some of these uncertainties, the ultimate resolution

may

result in a liability that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined.

We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations.

Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet.

The following is a tabular reconciliation of the total amount of unrecognized tax benefits for the year (in millions) excluding interest and penalties:

	Year Ended October 31,
		2017			2016
Unrecognized tax benefit —November 1,		$	1.1		$	1.1
Gross increases —tax positions in current period			0.2			0.2
Decrease related to tax positions taken during a prior period			-			-
Lapse of statute of limitations			(0.2	)		(0.2	)
Unrecognized tax benefit —October 31,		$	1.1		$	1.1

Related to the unrecognized tax benefits noted above, as of

October

31,

2017

and

2016,

we have recognized a liability for interest and penalties of

$0.3

million and

$0.3

million, respectively. For the years ended

October

31,

2017,

2016

and

2015,

we recognized $(

) thousand, $(

) thousand and $(

) thousand respectively, of interest and penalties in income tax benefit.

It is likely that, within the next

year, the amount of the Company's unrecognized tax benefits will decrease by

$0.2

million, excluding penalties and interest. This reduction is expected primarily due to the expiration of the statutes of limitation. The portion of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate (excluding any related impact to the valuation allowance) is

$1.1

million as of both

October 31, 2017

and

2016.

The recognition of unrecognized tax benefits could have an impact on the Company’s deferred tax assets and the valuation allowance.

The consolidated federal tax returns have been audited through

October 31, 2016

and these years are closed. We are also subject to various income tax examinations in the states in which we do business. The outcome for a particular audit cannot be determined with certainty prior to the conclusion of the audit, appeal, and in some cases, litigation process. As each audit is concluded, adjustments, if any, are appropriately recorded in the period determined.

To provide for potential exposures, tax reserves are recorded, if applicable, based on reasonable estimates of potential audit results. However, if the reserves are insufficient upon completion of an audit, there could be an adverse impact on our financial position and results of operations. The statute of limitations for our major tax jurisdictions remains open for examination for tax years

2013

2016.

Note 12 - Reduction of Inventory to Fair Value

12 Months Ended

Oct. 31, 2017

Inventory Impairments and Land Option Cost Write-offs [Text Block]

12.

Reduction of Inventory to Fair Value

We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they

may

be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their related carrying amounts.

If the expected undiscounted cash flows are less than the carrying amount, then the community is written down to its fair value. We estimate the fair value of each impaired community by determining the present value of the estimated future cash flows at a discount rate commensurate with the risk of the respective community. For the years ended

October 31, 2017,

2016

and

2015,

our discount rates used for the impairments recorded ranged from

18.3%

19.8%,

16.8%

18.8%

and

17.3%

19.8%,

respectively. Should the estimates or expectations used in determining cash flows or fair value decrease or differ from current estimates in the future, we

may

need to recognize additional impairments.

During the years ended

October 31, 2017

and

2016,

we evaluated inventories of all

372

and

413

communities under development and held for future development or sale, respectively, for impairment indicators through preparation and review of detailed budgets or other market indicators of impairment. We performed detailed impairment calculations during the years ended

October 31, 2017

and

2016

for

and

of those communities (i.e., those with a projected operating loss or other impairment indicators), respectively, with an aggregate carrying value of

$98.0

million and

$125.4

million, respectively. As impairment indicators are assessed on a quarterly basis, some of the communities evaluated during the years ended

October 31, 2017

and

2016

were evaluated in more than

one

quarterly period. Of those communities tested for impairment during the years ended

October 31, 2017

and

2016,

two

and

nine

communities with an aggregate carrying value of

$45.0

million and

$43.5

million, respectively, had undiscounted future cash flows that exceeded the carrying amount by less than

20%.

As a result of our impairment analysis, we recorded aggregate impairment losses, which are included in the Consolidated Statement of Operations on the line entitled “Homebuilding: Inventory impairment loss and land option write-offs” and deducted from inventory, of

$15.1

million,

$24.5

million and

$7.3

million for the years ended

October 31, 2017,

2016

and

2015,

respectively.

Impairments decreased for the year ended

October 31, 2017

compared to the prior year as the impairments recorded for the year ended

October 31, 2016

were mainly for land held for sale in the Midwest and Northeast.

The pre-impairment value represents the carrying value, net of prior period impairments, if any, at the time of recording the impairment.

The following table represents impairments by segment for fiscal

2017,

2016

and

2015:

(Dollars in millions)	Year Ended October 31, 2017
	Number of Communities		Dollar Amount of Impairment		Pre- Impairment Value (1)
Northeast		2	$	3.3	$	22.2
Mid-Atlantic		1		1.5		8.5
Midwest		2		0.2		0.8
Southeast		3		8.1		18.3
Southwest		-		-		-
West		2		2.0		3.1
Total		10	$	15.1	$	52.9

(Dollars in millions)	Year Ended October 31, 2016
	Number of Communities		Dollar Amount of Impairment		Pre- Impairment Value (1)
Northeast		5	$	9.5	$	33.8
Mid-Atlantic		-		-		-
Midwest		12		13.5		43.7
Southeast		3		1.5		10.9
Southwest		-		-		-
West		-		-		-
Total		20	$	24.5	$	88.4

(Dollars in millions)	Year Ended October 31, 2015
	Number of Communities		Dollar Amount of Impairment		Pre- Impairment Value (1)
Northeast		2	$	0.8	$	0.9
Mid-Atlantic		1		0.9		2.5
Midwest		4		1.3		8.4
Southeast		4		2.5		10.1
Southwest		-		-		-
West		1		1.8		7.5
Total		12	$	7.3	$	29.4

(

)

Represents carrying value, net of prior period impairments, if any, at the time of recording the applicable period

’s impairments.

The Consolidated Statements of Operations line entitled “Homebuilding: Inventory impairment loss and land option write-offs” also includes write-offs of options and approval, engineering and capitalized interest costs that we record when we redesign communities and/or abandon certain engineering costs and we do

not

exercise options in various locations because the communities

’ pro forma profitability is

not

projected to produce adequate returns on investment commensurate with the risk. The total aggregate write-offs related to these items were

$2.7

million,

$8.9

million and

$4.7

million for the years ended

October

31,

2017,

2016

and

2015,

respectively. Occasionally, these write-offs are offset by recovered deposits (sometimes through legal action) that had been written off in a prior period as walk-away costs. Historically, these recoveries have

not

been significant in comparison to the total costs written off.

The following table represents write-offs of such costs by segment for fiscal

2017,

2016

and

2015:

	Year Ended October 31,
(In millions)	2017		2016		2015
Northeast	$	0.5	$	1.6	$	0.9
Mid-Atlantic		0.6		0.8		0.2
Midwest		0.3		1.3		0.6
Southeast		0.8		1.8		1.3
Southwest		0.4		3.2		1.4
West		0.1		0.2		0.3
Total	$	2.7	$	8.9	$	4.7

Note 13 - Per Share Calculations	12 Months Ended
Note 13 - Per Share Calculations	Oct. 31, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	13. Per Share Calculations Basic earnings per share is computed by dividing net income (loss) (the “numerator”) by the weighted-average number of common shares outstanding, adjusted for nonvested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of options and nonvested shares of restricted stock, as well as common shares issuable upon exchange of our Senior Exchangeable Notes issued as part of our Units. Any options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation. All outstanding nonvested shares that contain nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two -class method. The two -class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings in periods when we have net income. The Company ’s restricted common stock (“nonvested shares”) are considered participating securities. Incremental shares attributed to nonvested stock and outstanding options to purchase common stock of 2.7 million and 0.2 million for the years ended October 31, 2017 and 2015 respectively, were excluded from the computation of diluted earnings per share because we had a net loss for the period, and any incremental shares would not be dilutive. Also, for the years ended October 31, 2017, 2016 and 2015, 10.0 million, 14.6 million and 15.2 million shares, respectively, of common stock issuable upon the exchange of our senior exchangeable notes (which were issued in fiscal 2012 ) were excluded from the computation of diluted earnings per share because we had a net loss for the period. In addition, shares related to out-of-the money stock options that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share were 4.6 million, 7.3 million and 3.0 million for the years ended October 31, 2017, 2016 and 2015, respectively, because to do so would have been anti-dilutive for the periods presented.

Note 14 - Capital Stock	12 Months Ended
Note 14 - Capital Stock	Oct. 31, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	14. Capital Stock Common Stock - Each share of Class A Common Stock entitles its holder to one vote per share, and each share of Class B Common Stock generally entitles its holder to ten votes per share. The amount of any regular cash dividend payable on a share of Class A Common Stock will be an amount equal to 110% of the corresponding regular cash dividend payable on a share of Class B Common Stock. If a shareholder desires to sell shares of Class B Common Stock, such stock must be converted into shares of Class A Common Stock at a one to one conversion rate. On August 4, 2008, our Board of Directors adopted a shareholder rights plan (the “Rights Plan”) designed to preserve shareholder value and the value of certain tax assets primarily associated with net operating loss (NOL) carryforwards and built-in losses under Section 382 of the Internal Revenue Code. Our ability to use NOLs and built-in losses would be limited if there was an “ownership change” under Section 382. This would occur if shareholders owning (or deemed under Section 382 to own) 5% or more of our stock increase their collective ownership of the aggregate amount of our outstanding shares by more than 50 percentage points over a defined period of time. The Rights Plan was adopted to reduce the likelihood of an “ownership change” occurring as defined by Section 382. Under the Rights Plan, one right was distributed for each share of Class A Common Stock and Class B Common Stock outstanding as of the close of business on August 15, 2008. Effective August 15, 2008, if any person or group acquires 4.9% or more of the outstanding shares of Class A Common Stock without the approval of the Board of Directors, there would be a triggering event causing significant dilution in the voting power of such person or group. However, existing stockholders who owned, at the time of the Rights Plan’s adoption, 4.9% or more of the outstanding shares of Class A Common Stock will trigger a dilutive event only if they acquire additional shares. The approval of the Board of Directors’ decision to adopt the Rights Plan may be terminated by the Board at any time, prior to the Rights being triggered. The Rights Plan will continue in effect until August 15, 2018, unless it expires earlier in accordance with its terms. The approval of the Board of Directors’ decision to adopt the Rights Plan was submitted to a stockholder vote and approved at a special meeting of stockholders held on December 5, 2008. Also at the Special Meeting on December 5, 2008, our stockholders approved an amendment to our Certificate of Incorporation to restrict certain transfers of Class A Common Stock in order to preserve the tax treatment of our NOLs and built-in losses under Section 382 of the Internal Revenue Code. Subject to certain exceptions pertaining to pre-existing 5% stockholders and Class B stockholders, the transfer restrictions in the amended Certificate of Incorporation generally restrict any direct or indirect transfer (such as transfers of our stock that result from the transfer of interests in other entities that own our stock) if the effect would be to (i) increase the direct or indirect ownership of our stock by any person (or public group) from less than 5% to 5% or more of our common stock; (ii) increase the percentage of our common stock owned directly or indirectly by a person (or public group) owning or deemed to own 5% or more of our common stock; or (iii) create a new public group. Transfers included under the transfer restrictions include sales to persons (or public groups) whose resulting percentage ownership (direct or indirect) of common stock would exceed the 5% thresholds discussed above, or to persons whose direct or indirect ownership of common stock would by attribution cause another person (or public group) to exceed such threshold. On July 3, 2001, our Board of Directors authorized a stock repurchase program to purchase up to 4 million shares of Class A Common Stock. There were no shares purchased during the year ended October 31, 2017. As of October 31, 2017, the maximum number of shares of Class A Common Stock that may yet be purchased under this program is 0.5 million. Preferred Stock - On July 12, 2005, we issued 5,600 shares of 7.625% Series A Preferred Stock, with a liquidation preference of $25,000 per share. Dividends on the Series A Preferred Stock are not cumulative and are payable at an annual rate of 7.625%. The Series A Preferred Stock is not convertible into the Company’s common stock and is redeemable in whole or in part at our option at the liquidation preference of the shares. The Series A Preferred Stock is traded as depositary shares, with each depositary share representing 1/1000th of a share of Series A Preferred Stock. The depositary shares are listed on the NASDAQ Global Market under the symbol “HOVNP.” In fiscal 2017, 2016 and 2015, we did not pay any dividends on the Series A Preferred Stock due to covenant restrictions in our debt instruments. We anticipate that we will continue to be restricted from paying dividends, which are not cumulative, for the foreseeable future. Retirement Plan - We have established a tax-qualified, defined contribution savings and investment retirement plan (a 401 (k) plan). All associates are eligible to participate in the retirement plan, and employer contributions are based on a percentage of associate contributions and our operating results. Plan costs charged to operations were $6.8 million, $6.6 million and $6.2 million for the years ended October 31, 2017, 2016 and 2015, respectively.

Note 15 - Stock Plans

12 Months Ended

Oct. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

15.

Stock Plans

The fair value of option awards is established at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions for the years ended

October

31,

2017,

2016

and

2015:

risk free interest rate of

2.05%,

1.38%

and

2.03%,

respectively; dividend yield of zero; historical volatility factor of the expected market price of our common stock of

0.53,

0.61

and

0.58,

respectively; a weighted-average expected life of the option of

7.64

years,

7.36

years and

7.22

years, respectively; and an estimated forfeiture rate of

9.92%,

10.90%

and

8.84%,

respectively.

For the years ended

October 31, 2017,

2016

and

2015,

total stock-based compensation expense was

$0.6

million,

$2.9

million (

$2.3

million post tax) and

$8.8

million (

$6.5

million post tax), respectively. Included in this total stock-based compensation expense was expense from stock options of

$0.5

million for year ended

October 31, 2017,

income for stock options of

$1.5

million for the year ended

October

31,

2016,

and expense of

$2.2

million for the year ended

October

31,

2015.

The fiscal

2017

expense includes income of

$2.0

million from previously recognized expense of certain performance based restricted stock grants for which the performance metrics are

longer expected to be satisfied. This income was offset by the vesting of restricted stock of

$2.1

million during the year ended

October 31, 2017. T

he fiscal

2016

expense includes income of

$2.1

million from previously recognized expense of certain performance based stock option grants for which the performance metrics are

longer expected to be satisfied. This income was slightly offset by the vesting of stock options of

$0.5

million

during the year ended

October 31, 2016.

We have a stock incentive plan for certain officers and key employees and directors. Options are granted by a committee appointed by the Board of Directors or its delegate in accordance with the stock incentive plan. The exercise price of all stock options must be at least equal to the fair market value of the underlying shares on the date of the grant.

Stock options granted to officers and associates generally vest in

four

equal installments on the second, third,

fourth

and

fifth

anniversaries of the date of the grant. All options expire

years after the date of the grant. During the year ended

October

31,

2017,

each of the

five

non-employee directors of the Company were given the choice to receive stock options or a reduced number of shares of restricted stock units subject to a

two

-year post-vesting holding period, or a combination thereof, with restricted stock units based on the fair market value on the date of grant and stock options based on grant date Black-Scholes value. All such directors elected to receive restricted stock units. Non-employee directors’ stock options and restricted stock units vest in

three

equal installments on the first,

second

and

third

anniversaries of the date of the grant. Stock option transactions are summarized as follows:

	October 31, 2017		Weighted-Average Exercise Price		October 31, 2016		Weighted-Average Exercise Price		October 31, 2015		Weighted-Average Exercise Price
Options outstanding at beginning of period		7,373,951	$	4.03		6,393,876	$	4.78		6,720,251	$	5.23
Granted		236,250	$	2.34		1,148,481	$	1.95		173,750	$	2.47
Exercised		48,250	$	2.07		-	$	-		18,125	$	2.48
Forfeited		452,375	$	5.85		51,125	$	2.73		203,436	$	3.78
Expired		248,875	$	16.68		117,281	$	25.05		278,564	$	15.04
Options outstanding at end of period		6,860,701	$	3.40		7,373,951	$	4.03		6,393,876	$	4.78
Options exercisable at end of period		5,259,011				5,071,181				4,566,290

The total intrinsic value of options exercised during fiscal

2017

and

2015

was

$12

thousand and

$15

thousand, respectively. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. At

October 31, 2016,

there were

options exercisable which had an intrinsic value. Exercise prices for options outstanding at

October

31,

2017

ranged from

$1.54

$6.46.

The weighted-average fair value of grants made in fiscal

2017,

2016

and

2015

was

$1.33,

$1.00

and

$1.47

per share, respectively. Based on the fair value at the time they were granted, the weighted-average fair value of options vested in fiscal

2017,

2016

and

2015

was

$2.60,

$2.55

and

$2.78

per share, respectively.

The following table summarizes the exercise price range and related number of options outstanding at

October

31,

2017:

			Number		Weighted- Average		Weighted- Average Remaining Contractual
Range of Exercise Prices			Outstanding		Exercise Price		Life
$1.54	–	$2.41		2,320,409	$	2.01		6.71
$2.42	–	$4.41		2,496,542	$	2.84		3.26
$4.42	–	$6.46		2,043,750	$	5.70		2.57
				6,860,701	$	3.41		4.22

The following table summarizes the exercise price range and related number of exercisable options at

October

31,

2017:

			Number		Weighted- Average		Weighted- Average Remaining Contractual
Range of Exercise Prices			Exercisable		Exercise Price		Life
$1.54	–	$2.41		1,003,714	$	2.00		4.02
$2.42	–	$4.41		2,322,797	$	2.77		2.96
$4.42	–	$6.46		1,932,500	$	5.66		2.40
				5,259,011	$	3.69		2.96

Officers and key associates who are eligible to receive equity grants

may

elect to receive either a stated number of stock options, or a reduced number of shares of restricted stock units, or a combination thereof. Shares underlying restricted stock units granted to officers and associates generally vest in

four

equal installments on the second, third,

fourth

and

fifth

anniversaries of the grant date.

Participants aged

years or older, or aged

with

years of service, are eligible to vest in their equity awards on an accelerated basis on their retirement (which in the case of the restricted stock units only applies to a retirement that is at least

one

year after the date of grant). During the years ended

October

31,

2017,

2016

and

2015,

we granted

366,513

(including

298,388

units to certain of our non-employee directors),

456,070

(including

356,382

units to certain of our non-employee directors) and

1,018,558

(including

155,433

units to certain of our non-employee directors) restricted stock units, respectively, and also issued

101,218,

176,944

and

97,854

units, relating to awards granted in prior fiscal years, respectively. During the years ended

October

31,

2017,

2016

and

2015,

452,500,

33,125

and

5,811

restricted stock units were forfeited, respectively.

For the years ended

October

31,

2017,

2016

and

2015

total compensation cost recognized in the Consolidated Statement of Operations for the annual restricted stock unit grants, market share unit grants (discussed below), and the stock portion of the long-term incentive plan (also discussed below) was

$21

thousand,

$4.3

million and

$6.5

million, respectively. In addition to nonvested share awards summarized in the following table, there were

312,419,

224,326

and

538,892

vested share awards at

October 31, 2017,

2016

and

2015,

respectively, which were deferred at the participants' election.

A summary of the Company

’s nonvested share awards as of and for the year ended

October

31,

2017,

is as follows:

	Shares		Weighted-Average Grant Date Fair Value
Nonvested at beginning of period		7,239,469	$	2.80
Granted		1,233,700	$	2.56
Vested		1,216,359	$	4.92
Forfeited		1,082,333	$	2.59
Nonvested at end of period		6,174,477	$	2.36

Included in the above table are awards for the share portion of long-term incentive plans (“LTIPs”) for certain officers and associates, which are performance based plans. This includes

2.4

million target

2016

LTIP shares which were granted during fiscal

2016

and were re

duced from

2.8

million shares during fiscal

2017

due to a forfeiture. The awards included above for these plans remain at target, although based on our best estimate of the outcome for the performance criteria, the related expense of

$2.0

million was reversed in the

fourth

quarter of fiscal

2017.

Also included in the table above are

2.7

million target Market Share Units (“MSUs”) of which

850,000

and

780,000

were granted to certain officers in fiscal

2017

and fiscal

2016,

respectively. In addition,

700,000

and

400,000

MSUs are included from the fiscal

2015

and fiscal

2014

MSU Grants, which were adjusted by

25,000

and

200,000,

respectively, in fiscal

2017,

as certain performance conditions at the

first

and

second

measurement periods were

not

met and

only a portion of the shares were vested, resulting in the reversal of

$1.2

million of expense during the period. Additionally,

34,355

and

48,032

net shares were issued during fiscal

2017.

Fifty percent of the MSUs will vest in

four

equal annual installments, commencing on the

second

anniversary of the grant date subject to stock price performance conditions, pursuant to which the actual number of shares issuable with respect to vested MSUs

may

range from

175%

of the target number of shares covered by the MSU awards, generally depending on the growth in the

-day average trading price of the Company’s shares during the period between the grant date and the relevant vesting dates. The remaining

fifty

percent of the MSUs are also subject to financial performance conditions in addition to the stock price performance conditions applicable to all MSUs. These additional performance-based MSUs vest in

four

equal installments with the

first

installment vesting on

January 1

three

years after the MSU grant date (for example,

January 1, 2020

for the

2017

MSU Grant) and the remaining annual installments commencing on the

third

anniversary of the Grant date, except that

portion of the award will vest unless the Committee determines that the Company achieved (

) for the

2017

and

2016

MSU grants, specified gross margin improvement (as to

25%

of the MSU amount) and debt reduction (as to

25%

of the MSU amount) goals comparing the fiscal year of the grant date and the

second

fiscal year following the grant date (fiscal

2019

compared to fiscal

2017

) and (

) for the

2015

MSU grant, specified total revenue growth goals comparing the fiscal year of the grant date and the

second

fiscal year following the grant date (for example, fiscal

2017

compared to fiscal

2015

for the

2015

MSU Grant).

The fair value of the MSU grants is determined using the Monte-Carlo simulation model, which simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model uses the average closing trading price of the Company

’s Class A Common Stock on the New York Stock Exchange over the

calendar day period ending on the grant date. This model also incorporates the following ranges of assumptions:

	●	The expected volatility is based on our stock ’s historical volatility commensurate with the life 2 years, 2.5 years, 3 years, 4 years and 5 years.
	●	The risk-free interest rate is based on the U.S. Treasury rate assumption ranging from 2 - 5 years.
	●	The expected dividend yield is not applicable since we do not currently pay dividends.

The following assumptions were used for

2017

MSU Grants: historical volatility factor of the expected market price of our common stock of

57.93%,

54.61%,

52.66%,

48.85%

and

50.78%

for the

year,

2.6

year,

year and

year vesting tranches, respectively; risk free interest rates of

1.35%,

1.43%,

1.49%,

1.63%

and

1.76%

for each vesting tranche, respectively; and dividend yield of

zero

for all time periods. The following assumptions were used for

2016

MSU Grants: historical volatility factor of the expected market price of our common stock of

56.50%,

52.77%,

50.34%,

52.36%

and

61.08%

for the

year,

2.5

year,

year and

year vesting tranches, respectively; risk free interest rates of

0.73%,

0.81%,

0.87%,

1.02%

and

1.17%

for each vesting tranche, respectively; and dividend yield of

zero

for all time periods. The following assumptions were used for

2015

MSU Grants: historical volatility factor of the expected market price of our common stock of

38.28%,

42.01%,

45.73%,

59.08%

and

57.77%

for the

year,

2.5

year,

year and

year vesting tranches, respectively; risk free interest rates of

0.74%,

0.95%,

1.12%,

1.44%

and

1.75%

for each vesting tranche, respectively; and dividend yield of

zero

for all time periods.

As of

October

31,

2017,

we had

7.2

million shares authorized for future issuance under our equity compensation plans. In addition, as of

October

31,

2017,

there were

$3.5

million of total unrecognized compensation costs related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of

1.44

years.

Note 16 - Warranty Costs

12 Months Ended

Oct. 31, 2017

Product Warranty Disclosure [Text Block]

16.

Warranty Costs

General liability insurance for homebuilding companies and their suppliers and subcontractors is very difficult to obtain. The availability of general liability insurance is limited due to a decreased number of insurance companies willing to underwrite for the industry. In addition, those few insurers willing to underwrite liability insurance have significantly increased the premium costs. To date, we have been able to obtain general liability insurance but at higher premium costs with higher deductibles. Our subcontractors and suppliers have advised us that they have also had difficulty obtaining insurance that also provides us coverage. As a result, we have an owner controlled insurance program for certain of our subcontractors whereby the subcontractors pay us an insurance premium (through a reduction of amounts we would otherwise owe such subcontractors for their work on our homes) based on the risk type of the trade. We absorb the liability associated with their work on our homes as part of our overall general liability insurance at

additional cost to us because our existing general liability and construction defect insurance policy and related reserves for amounts under our deductible covers construction defects regardless of whether we or our subcontractors are responsible for the defect. For the fiscal years ended

October 31, 2017

and

2016,

we received

$4.1

million and

$4.2

million, respectively, from subcontractors related to the owner controlled insurance program, which we accounted for as a reduction to inventory.

We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible. This accrual is expensed as selling, general and administrative costs.

For homes delivered in fiscal

2017

and

2016,

our deductible under our general liability insurance is a

$20

million aggregate for construction defect and warranty claims. For bodily injury claims, our deductible per occurrence in fiscal

2017

and

2016

$0.25

million, up to a

million limit. Our aggregate retention in fiscal

2017

and

2016

$21

million for construction defect, warranty and bodily injury claims. In addition, we establish a warranty accrual for lower cost related issues to cover home repairs, community amenities and land development infrastructure that are

not

October 31, 2017

and

2016

were as follows:

	Year Ended October 31,
(In thousands)	2017			2016

Balance, beginning of period	$	121,144		$	135,053
Additions – Selling, general and administrative		10,870			17,363
Additions – Cost of sales		15,835			17,397
Charges incurred during the period		(28,019	)		(29,965	)
Changes to pre-existing reserves		7,872			(9,199	)
Changes to reserves where corresponding amounts are recorded as receivables from insurance carriers		-			(9,505	)
Balance, end of period	$	127,702		$	121,144

Warranty accruals are based upon historical experience.

We engage a

third

-party actuary that uses our historical warranty and construction defect data to assist our management in estimating our unpaid claims, claim adjustment expenses and incurred but

not

fourth

quarter of fiscal

2017,

we recorded a

$12.5

million adjustment to increase our construction defect reserves related to litigation. We also recorded a

$4.6

million reduction in our warranty accruals during the

fourth

quarter of fiscal

2017

and we had minor reductions in our warranty accruals during the

fourth

quarter of

2016

based on recent warranty claims history. As a result of reductions in our construction defect claims in recent years and the impact of those reductions on the actuarial analysis of our total reserves, we recorded a

$9.2

million reduction in our construction defect reserves during the

fourth

quarter of fiscal

2016.

These reductions are reflected in the changes to pre-existing reserves in the table above.

Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, were

$0.9

million and

$4.0

million for the fiscal years ended

October 31, 2017

and

2016,

respectively, for prior year deliveries. During fiscal

2016,

we settled

two

construction defect claims relating to the Northeast segment which made up the majority of the payments.

Note 17 - Transactions With Related Parties	12 Months Ended
Note 17 - Transactions With Related Parties	Oct. 31, 2017
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	17. Transactions with Related Parties During the years ended October 31, 2017, 2016 and 2015, an engineering firm owned by Tavit Najarian, a relative of Ara K. Hovnanian, our Chairman of the Board and one of our executive officers, provided services to the Company totaling $0.8 million, $1.0 million and $1.2 million, respectively. Neither the Company nor Mr. Hovnanian has a financial interest in the relative’s company from whom the services were provided. Mr. Carson Sorsby, the son of J. Larry Sorsby, one of our directors and executive officers, is employed by the Company ’s mortgage subsidiary and his total commissions from the Company’s mortgage affiliate totaled approximately $191,000, $152,000 and $129,000 in fiscal 2017, 2016 and 2015, respectively. Mr. Alexander Hovnanian, the son of Ara K. Hovnanian, our Chairman of the Board and one of our executive officers, is employed by the Company as an Area Vice President in the Company ’s Hudson/North Jersey Area and his total compensation was approximately $336,000 and $166,000 in fiscal 2017 and 2016, respectively.

Note 18 - Commitments and Contingent Liabilities	12 Months Ended
Note 18 - Commitments and Contingent Liabilities	Oct. 31, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	18. Commitments and Contingent Liabilities We are involved in litigation arising in the ordinary course of business, none of which is expected to have a material adverse effect on our financial position, results of operations or cash flows, and we are subject to extensive and complex laws and regu lations that affect the development of land and home building, sales and customer financing processes, including zoning, density, building standards and mortgage financing. These laws and regulations often provide broad discretion to the administering governmental authorities. This can delay or increase the cost of development or homebuilding. We also are subject to a variety of local, state, federal and foreign laws and regulations concerning protection of health and the environment, including those regu lating the emission or discharge of materials into the environment, the management of storm water runoff at construction sites, the handling, use, storage and disposal of hazardous substances, impacts to wetlands and other sensitive environments, and the remediation of contamination at properties that we have owned or developed or currently own or are developing (“environmental laws”). The particular environmental laws that apply to a site may vary greatly according to the community site, for example, due to the community, the environmental conditions at or near the site, and the present and former uses of the site. These environmental laws may result in delays, may cause us to incur substantial compliance, remediation and/or other costs, and can prohibit or severely restrict development and homebuilding activity. In addition, noncompliance with these laws and regulations could result in fines and penalties, obligations to remediate, permit revocations or other sanctions; and contamination or other environmental conditions at or in the vicinity of our developments may result in claims against us for personal injury, property damage or other losses. We anticipate that increasingly stringent requirements will be imposed on developers and homebuilders in the future. For example, for a number of years, the EPA and U.S. Army Corps of Engineers have been engaged in rulemakings to clarify the scope of federally regulated wetlands, which included a June 2015 rule many affected businesses contend impermissibly expanded the scope of such wetlands that was challenged in court, stayed, and remains in litigation, and a proposal in June 2017 to formally rescind the June 2015 rule and reinstate the rule scheme previously in place while the agencies initiate a new substantive rulemaking on the issue. It is unclear how these and related developments, including at the state or local level, ultimately may affect the scope of regulated wetlands where we operate. Although we cannot reliably predict the extent of any effect these developments regarding wetlands, or any other requirements that may take effect may have on us, they could result in time-consuming and expensive compliance programs and in substantial expenditures, which could cause delays and increase our cost of operations. In addition, our ability to obtain or renew permits or approvals and the continued effectiveness of permits already granted or approvals already obtained is dependent upon many factors, some of which are beyond our control, such as changes in policies, rules and regulations and their interpretations and application. In March 2013, we received a letter from the Environmental Protection Agency (“ EPA”) requesting information about our involvement in a housing redevelopment project in Newark, New Jersey that a Company entity undertook during the 1990s. We understand that the development is in the vicinity of a former lead smelter and that recent tests on soil samples from properties within the development conducted by the EPA show elevated levels of lead. We also understand that the smelter ceased operations many years before the Company entity involved acquired the properties in the area and carried out the re-development project. We responded to the EPA’s request. In August 2013, we were notified that the EPA considers us a potentially responsible party (or “PRP”) with respect to the site, that the EPA will clean up the site, and that the EPA is proposing that we fund and/or contribute towards the cleanup of the contamination at the site. We began preliminary discussions with the EPA concerning a possible resolution but do not know the scope or extent of the Company’s obligations, if any, that may arise from the site and therefore cannot provide any assurance that this matter will not have a material impact on the Company. The EPA requested additional information in April 2014 and again in March 2017 and the Company has responded to its information requests. The Grandview at Riverwalk Port Imperial Condominium Association, Inc. (the “Grandview Plaintiff”) filed a construction defect lawsuit against Hovnanian Enterprises, Inc. and several of its affiliates, including K. Hovnanian at Port Imperial Urban Renewal II, LLC, K. Hovnanian Construction Management, Inc., K. Hovnanian Companies, LLC, K. Hovnanian Enterprises, Inc., K. Hovnanian North East, Inc. aka and/or dba K. Hovnanian Companies North East, Inc., K. Hovnanian Construction II, Inc., K. Hovnanian Cooperative, Inc., K. Hovnanian Developments of New Jersey, Inc., and K. Hovnanian Holdings NJ, LLC, as well as the project architect, the geotechnical engineers and various construction contractors for the project alleging various construction defects, design defects and geotechnical issues totaling approximately $41.3 million. The lawsuit included claims against the geotechnical engineers for differential soil settlement under the building, against the architects for failing to design the correct type of structure allowable under the New Jersey Building Code, and against the Hovnanian-affiliated developer entity (K. Hovnanian at Port Imperial Urban Renewal II, LLC ) alleging that it: ( 1 ) had knowledge of and failed to disclose the improper building classification to unit purchasers and was therefore liable for treble damages under the New Jersey Consumer Fraud Act; and ( 2 ) breached an express warranty set forth in the Public Offering Statements that the common elements at the building were fit for their intended purpose. The Grandview Plaintiff further alleged that Hovnanian Enterprises, Inc., K. Hovnanian Holdings NJ, LLC, K. Hovnanian Developments of New Jersey, Inc., and K. Hovnanian Developments of New Jersey II, Inc. were jointly liable for any damages owed by the Hovnanian development entity under a veil piercing theory. The parties reached a settlement on the construction defe ct issues prior to trial, but attempts to settle the subsidence, building classification issue and Consumer Fraud Act claims were unsuccessful. The trial commenced on April 17, 2017 in Hudson County, New Jersey. In the third week of the trial, all of the Hovnanian defendants resolved the geotechnical claims for an amount immaterial to the Company, but the balance of the case continued to be tried before the jury. On June 1, 2017, the jury rendered a verdict against K. Hovnanian at Port Imperial Urban Renewal II, LLC on the breach of warranty and New Jersey Consumer Fraud claims in the total amount of $3 million, which resulted in a total verdict of $9 million against that entity due to statutory trebling, plus a to-be-determined portion of Grandview Plaintiff’s counsel fees, per the statute. The jury also found in favor of Grandview Plaintiff on its veil piercing theory. Certain Hovnanian-affiliated defendants filed post-trial motions on three issues: ( 1 ) a motion for a judgment notwithstanding the verdict or a new trial; ( 2 ) a motion addressing whether any of the Hovnanian-affiliated entities could be jointly liable under a veil piercing theory for the damages awarded against K. Hovnanian at Port Imperial Urban Renewal II, LLC; and ( 3 ) a motion for contractual indemnification against the project architect. On October 27, 2017, the Court addressed a number of post-trial motions. The Court denied the motion for a judgment notwithstanding the verdict or a new trial, and held that Hovnanian Enterprises, Inc. and its affiliate, K. Hovnanian Developments of New Jersey, Inc., are jointly liable for the damages awarded against K. Hovnanian at Port Imperial Urban Renewal II, LLC. On November 18, 2017, the Court awarded approximately $1.8 million in attorney fees and costs to Grandview Plaintiff out of the approximately $4.8 million it had sought. Certain Hovnanian-affiliated defendants filed a motion for reconsideration of the Court’s decision on attorney fees and costs, which remains pending. Once a final judgment is entered, the relevan t Hovnanian-affiliated defendants intend to appeal all aspects of the verdict against them. With respect to this case, depending on the outcome of all appeals, the range of loss is between $0 and $10.8 million, inclusive of attorneys’ fees and costs. Management believes that a loss is probable and reasonably estimable and that the Company has reserved for its estimated probable loss amount in its construction defect reserves. However, our assessment of the probable loss may differ from the ultimate resolution of this matter. In 2014, the condominium association of the Grandview II at Riverwalk Port Imperial condominium building (the “Grandview II Plaintiff”) filed a lawsuit in the Superior Court of New Jersey, Law Division, Hudson County (the “Court”) alleging various construction defects, design defects, and geotechnical issues relating to the building along with a claim for piercing the corporate veil as to certain defendants. The operative complaint (“Complaint”) brought claims against Hovnanian Enterprises, Inc. and several of its affiliates, including K. Hovnanian at Port Imperial Urban Renewal III, LLC, PI Investments I, LLC, K. Hovnanian Investments, LLC, K. Hovnanian Homes ( not a legal entity but named as a defendant), K. Hovnanian Shore Acquisitions, LLC, K. Hovnanian Construction Management, Inc., K. Hovnanian Companies, LLC, K. Hovnanian Northeast, Inc., K. Hovnanian Enterprises, Inc., K. Hovnanian Construction III, Inc. and K. Hovnanian Cooperative, Inc. The Complaint also brought claims against various other design professionals and contractors. Grandview II Plaintiff asserted damages of approximately $69 million to $79 million, which amount was potentially subject to treble damages. On December 7, 2017, the Court issued orders adjudicating various parties’ motions for summary judgment. The Court issued an order that granted Grandview II Plaintiff’s motion for partial summary judgment on the claim seeking to pierce the corporate veil of K. Hovnanian at Port Imperial Urban Renewal III, LLC and ordered that Hovnanian Enterprises, Inc. shall be jointly and severally liable for any damages awarded against K. Hovnanian at Port Imperial Urban Renewal III, LLC, including any treble damages and attorney’s fees and costs. The Court also issued an order dismissing Grandview II Plaintiff’s claims for negligence and breach of implied warranties against certain Hovnanian-affiliated defendants. As of December 14, 2017, the Hovnanian-affiliated defendants reached a settlement with Grandview II Plaintiff that resolved all claims in the case involving the Hovnanian-affiliated defendants. As of October 31, 2017, the Company had fully reserved for this settlement amount. On December 15, 2017, the Court issued an order dismissing the action. On December 21, 2016, the members of the Company’s Board were named as defendants in a derivative and class action lawsuit filed in the Delaware Court of Chancery by Plaintiff Joseph Hong ("Plaintiff Hong"). Plaintiff Hong had previously made a demand for inspection of the books and records of the Company pursuant to Delaware law. The Company had provided certain company documents in response to Plaintiff Hong’s demand. The complaint relates to the Board of Directors’ decisions to grant Ara K. Hovnanian equity awards in the form of Class B Common Stock, alleging that the defendants breached their fiduciary duties to the Company and its stockholders; that the equity awards granted in Class B Common Stock amounted to corporate waste; and that Ara. K Hovnanian was unjustly enriched by equity awards granted to him in Class B Common Stock. The complaint seeks a declaration that the equity awards granted to Ara K. Hovnanian in Class B Common Stock between June 13, 2014 and June 10, 2016 were ultra vires, invalidation or rescission of those awards, injunctive relief, and unspecified damages. On December 18, 2017, the parties finalized a settlement agreement to resolve the litigation. Pursuant to the settlement agreement, which remains subject to approval by the Chancery Court, the Company will submit for stockholder approval at the next Annual Meeting of Stockholders a resolution to amend the Company’s Certificate of Incorporation to affirm that in the event of a merger, consolidation, acquisition, tender offer, recapitalization, reorganization or other business combination, the same consideration will be provided for shares of Class A Common Stock and Class B Common Stock unless different treatment of the shares of each such class is approved separately by a majority of each class. The Company has also agreed to implement certain operational and corporate governance measures regarding the granting of equity awards in Class B Common Stock and, further, that it will not oppose an application by Plaintiff Hong for attorney’s fees up to $275,000, the amount of which is subject to approval by the Court.

Note 19 - Variable Interest Entities	12 Months Ended
Note 19 - Variable Interest Entities	Oct. 31, 2017
Notes to Financial Statements
Variable Interest Entity Disclosure [Text Block]	19. Variable Interest Entities The Company enters into land and lot option purchase contracts to procure land or lots for the construction of homes. Under these contracts, the Company will fund a stated deposit in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms. Under the terms of the option purchase contracts, many of the option deposits are not refundable at the Company's discretion. Under the requirements of ASC 810, certain option purchase contracts may result in the creation of a variable interest in the entity (“VIE”) that owns the land parcel under option. In compliance with ASC 810, the Company analyzes its option purchase contracts to determine whether the corresponding land sellers are VIEs and, if so, whether the Company is the primary beneficiary. Although the Company does not have legal title to the underlying land, ASC 810 requires the Company to consolidate a VIE if the Company is determined to be the primary beneficiary. In determining whether it is the primary beneficiary, the Company considers, among other things, whether it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Such activities would include, among other things, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. The Company also considers whether it has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. As a result of its analyses, the Company determined that as of October 31, 2017 and 2016, it was not the primary beneficiary of any VIEs from which it is purchasing land under option purchase contracts. We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at October 31, 2017, we had total cash and letters of credit deposits amounting to $57.1 million to purchase land and lots with a total purchase price of $1.0 billion. The maximum exposure to loss with respect to our land and lot options is limited to the deposits plus any pre-development costs invested in the property, although some deposits are refundable at our request or refundable if certain conditions are not met.

Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures

12 Months Ended

Oct. 31, 2017

Equity Method Investments and Joint Ventures Disclosure [Text Block]

20.

Investments in Unconsolidated Homebuilding and Land Development Joint Ventures

We enter into homebuilding and land development joint ventures from time to time as a means of accessing lot positions, expanding our market opportunities, establishing strategic alliances, managing our risk profile, leveraging our capital base and enhancing returns on capital. Our homebuilding joint ventures are generally entered into with

third

-party investors to develop land and construct homes that are sold directly to

third

-party home buyers. Our land development joint ventures include those entered into with developers and other homebuilders as well as financial investors to develop finished lots for sale to the joint venture

’s members or other

third

parties.

November 2015,

the Company entered into a new joint venture to which the Company contributed a land parcel that had been mothballed by the Company, but on which construction by the joint venture has now begun. Upon formation of the joint venture, the Company received $

25.7

million of cash proceeds for the contributed land. In addition, during the

third

quarter of fiscal

2016,

we entered into a new joint venture by contributing

eight

communities we owned and our option to buy

one

community to the joint venture. As a result of the formation of the joint venture, the Company received $

29.8

million of cash in return for the land and option contributions.

During the

first

quarter of fiscal

2017,

we expanded this joint venture by transferring

one

community we owned and our option to buy

three

communities to the joint venture, resulting in our receiving

$11.2

million of net cash.

The tables set forth below summarize the combined financial information related to our unconsolidated homebuilding and land development joint ventures that are accounted for under the equity method.

	October 31, 2017
(Dollars in thousands)	Homebuilding			Land Development			Total
Assets:
Cash and cash equivalents	$	60,580		$	194		$	60,774
Inventories		666,017			9,162			675,179
Other assets		36,026			-			36,026
Total assets	$	762,623		$	9,356		$	771,979
Liabilities and equity:
Accounts payable and accrued liabilities	$	121,646		$	429		$	122,075
Notes payable		330,642			-			330,642
Total liabilities		452,288			429			452,717
Equity of:
Hovnanian Enterprises, Inc.		88,884			3,746			92,630
Others		221,451			5,181			226,632
Total equity		310,335			8,927			319,262
Total liabilities and equity	$	762,623		$	9,356		$	771,979
Debt to capitalization ratio		52	%		0	%		51	%

	October 31, 2016
(Dollars in thousands)	Homebuilding			Land Development			Total
Assets:
Cash and cash equivalents	$	48,542		$	1,478		$	50,020
Inventories		516,947			11,010			527,957
Other assets		25,865			-			25,865
Total assets	$	591,354		$	12,488		$	603,842
Liabilities and equity:
Accounts payable and accrued liabilities	$	72,302		$	1,812		$	74,114
Notes payable		214,911			2,261			217,172
Total liabilities		287,213			4,073			291,286
Equity of:
Hovnanian Enterprises, Inc.		88,379			3,220			91,599
Others		215,762			5,195			220,957
Total equity		304,141			8,415			312,556
Total liabilities and equity	$	591,354		$	12,488		$	603,842
Debt to capitalization ratio		41	%		21	%		41	%

As of

October 31, 2017

and

2016,

we had advances and a note receivable outstanding of

$22.4

million and

$8.9

million, respectively, to these unconsolidated joint ventures. These amounts were included in the “Accounts payable and accrued liabilities” balances in the tables above.

On our Consolidated Balance Sheets, our “Investments in and advances to unconsolidated joint ventures” amounted to

$115.1

million and

$100.5

million at

October 31, 2017

and

2016,

respectively. In some cases our net investment in these joint ventures is less than our proportionate share of the equity reflected in the table above because of the differences between asset impairments recorded against our joint venture investments and any impairments recorded in the applicable joint venture. Impairments of joint venture investments are recorded at fair value while impairments recorded in the joint venture are recorded when undiscounted cash flows trigger the impairment. During fiscal

2017,

we wrote-down certain joint venture investments by

$2.8

million based on our determination that the investment in these joint ventures has sustained an other than temporary impairment.

	For The Year Ended October 31, 2017
(Dollars in thousands)	Homebuilding			Land Development			Total
Revenues	$	312,164		$	5,685		$	317,849
Cost of sales and expenses		(324,514	)		(4,633	)		(329,147	)
Joint venture net (loss) income	$	(12,350	)	$	1,052		$	(11,298	)
Our share of net (loss) income	$	(7,189	)	$	526		$	(6,663	)

	For The Year Ended October 31, 2016
(Dollars in thousands)	Homebuilding			Land Development			Total
Revenues	$	141,418		$	6,299		$	147,717
Cost of sales and expenses		(159,431	)		(6,103	)		(165,534	)
Joint venture net (loss) income	$	(18,013	)	$	196		$	(17,817	)
Our share of net (loss) income	$	(4,424	)	$	98		$	(4,326	)

	For The Year Ended October 31, 2015
(Dollars in thousands)	Homebuilding			Land Development			Total
Revenues	$	122,192		$	6,782		$	128,974
Cost of sales and expenses		(125,652	)		(6,518	)		(132,170	)
Joint venture net (loss) income	$	(3,460	)	$	264		$	(3,196	)
Our share of net income	$	4,087		$	132		$	4,219

“(Loss) income from unconsolidated joint ventures” is reflected as a separate line in the accompanying Consolidated Statements of Operations and reflects our proportionate share of the income or loss of these unconsolidated homebuilding and land development joint ventures.

The difference between our share of the income or loss from these unconsolidated joint ventures in the tables above compared to the Consolidated Statements of Operations is due primarily to the reclassification of the intercompany portion of management fee income from certain joint ventures and the deferral of income for lots purchased by us from certain joint ventures. To compensate us for the administrative services we provide as the manager of certain joint ventures we receive a management fee based on a percentage of the applicable joint venture’s revenues. These management fees, which totaled

$11.3

million,

$5.8

million and

$5.2

million for the years ended

October 31, 2017,

2016

and

2015,

respectively, are recorded in “Homebuilding: Selling, general and administrative” on the Consolidated Statement of Operations.

In determining whether or

not

we must consolidate joint ventures that we manage, we assess whether the other partners have specific rights to overcome the presumption of control by us as the manager of the joint venture.

In most cases, the presumption is overcome because the joint venture agreements require that both partners agree on establishing the operations and capital decisions of the partnership, including budgets in the ordinary course of business.

Typically, our unconsolidated joint ventures obtain separate project specific mortgage financing.

The amount of financing is generally targeted to be

more than

50%

of the joint venture’s total assets. For some of our joint ventures, obtaining financing was challenging, therefore, some of our joint ventures are capitalized only with equity. The total debt to capitalization ratio of all our joint ventures is currently

51%.

Any joint venture financing is on a nonrecourse basis, with guarantees from us limited only to performance and completion of development, environmental warranties and indemnification, standard indemnification for fraud, misrepresentation and other similar actions, including a voluntary bankruptcy filing. In some instances, the joint venture entity is considered a VIE under ASC

810

“Consolidation – Overall” due to the returns being capped to the equity holders; however, in these instances, we have determined that we are

not

the primary beneficiary, and therefore we do

not

consolidate these entities.

Note 21 - Fair Value of Financial Instruments

12 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Text Block]

21.

Fair Value of Financial Instruments

ASC

820,

"Fair Value Measurements and Disclosures," provides a framework for measuring fair value, expands disclosures about fair-value measurements and establishes a fair-value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows:

Level

Fair value determined based on quoted prices in active markets for identical assets.

Level

Fair value determined using significant other observable inputs.

Level

Fair value determined using significant unobservable inputs.

Our financial instruments measured at fair value on a recurring basis are summarized below:

(In thousands)	Fair Value Hierarchy	Fair Value at October 31, 2017			Fair Value at October 31, 2016

Mortgage loans held for sale (1)	Level 2	$	132,424		$	165,077
Interest rate lock commitments	Level 2		(14	)		(80	)
Forward contracts	Level 2		15			86
Total		$	132,425		$	165,083

(

)

The aggregate unpaid principal balance was

$128.4

million and

$149.4

million at

October 31, 2017

and

2016,

respectively.

We elected the fair value option for our loans held for sale for mortgage loans originated subsequent to

October 31, 2008,

in accordance with ASC

825,

“Financial Instruments,” which permits us to measure financial instruments at fair value on a contract-by-contract basis. Management believes that the election of the fair value option for loans held for sale improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. Fair value of loans held for sale is based on independent quoted market prices, where available, or the prices for other mortgage loans with similar characteristics.

The Financial Services segment had a pipeline of loan applications in process of

$486.5

million at

October 31, 2017.

Loans in process for which interest rates were committed to the borrowers totaled

$31.2

million as of

October 31, 2017.

Substantially all of these commitments were for periods of

days or less. Since a portion of these commitments is expected to expire without being exercised by the borrowers, the total commitments do

not

necessarily represent future cash requirements.

The Financial Services segment uses investor commitments and forward sales of mandatory MBS to hedge its mortgage-related interest rate exposure. These instruments involve, to varying degrees, elements of credit and interest rate risk. Credit risk is managed by entering into MBS forward commitments, option contracts with investment banks, federally regulated bank affiliates and loan sales transactions with permanent investors meeting the segment

’s credit standards. The segment’s risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At

October 31, 2017,

the segment had open commitments amounting to

$19.5

million to sell MBS with varying settlement dates through

December 13, 2017.

The assets accounted for using the fair value option are initially measured at fair value. Gains and losses from initial measurement and subsequent changes in fair value are recognized in the Financial Services segment

’s income. The changes in fair values that are included in income are shown, by financial instrument and financial statement line item, below:

	Year Ended October 31, 2017
(In thousands)	Mortgage Loans Held for Sale		Interest Rate Lock Commitments			Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$	4,256	$	(14	)	$	15

	Year Ended October 31, 2016
(In thousands)	Mortgage Loans Held for Sale		Interest Rate Lock Commitments			Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$	4,711	$	(73	)	$	(422	)

	Year Ended October 31, 2015
(In thousands)	Mortgage Loans Held for Sale			Interest Rate Lock Commitments			Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$	(284	)	$	(22	)	$	829

The Company's assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs during the fiscal years ended

October 31, 2017

and

2016.

The assets measured at fair value on a nonrecurring basis are all within the Company's Homebuilding operations and are summarized below:

Nonfinancial Assets

	Year Ended
	October 31, 2017
(In thousands)	Fair Value Hierarchy	Pre- Impairment Amount		Total Losses			Fair Value

Sold and unsold homes and lots under development	Level 3	$	30,022	$	(11,658	)	$	18,364
Land and land options held for future development or sale	Level 3	$	22,850	$	(3,403	)	$	19,447

Nonfinancial Assets

	Year Ended
	October 31, 2016
(In thousands)	Fair Value Hierarchy	Pre- Impairment Amount		Total Losses			Fair Value

Sold and unsold homes and lots under development	Level 3	$	61,584	$	(19,006	)	$	42,578
Land and land options held for future development or sale	Level 3	$	26,783	$	(5,466	)	$	21,317

We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they

may

be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their related carrying amounts.

If the expected undiscounted cash flows are less than the carrying amount, then the community is written down to its fair value. We estimate the fair value of each impaired community by determining the present value of its estimated future cash flows at a discount rate commensurate with the risk of the respective community. Should the estimates or expectations used in determining cash flows or fair value decrease or differ from current estimates in the future, we

may

be required to recognize additional impairments. We recorded inventory impairments, which are included in the Consolidated Statements of Operations as “Inventory impairment loss and land option write-offs” and deducted from inventory, of

$15.1

million,

$24.5

million and

$7.3

million for the years ended

October 31, 2017,

2016

and

2015,

respectively. See Note

for further detail of the communities evaluated for impairment.

The fair value of our cash equivalents and restricted cash and cash equivalents approximates their carrying amount, based on Level

inputs.

The fair value of our borrowings under the revolving credit and term loan facilities approximates their carrying amount based on level

inputs. The fair value of each series of the senior unsecured notes (other than the senior exchangeable notes and the senior amortizing notes) is estimated based on recent trades or quoted market prices for the same issues or based on recent trades or quoted market prices for our debt of similar security and maturity to achieve comparable yields, which are Level

measurements. The fair value of the senior unsecured notes (all series in the aggregate), other than the senior exchangeable notes and senior amortizing notes, was estimated at

$383.7

million and

$251.7

million as of

October 31, 2017

and

2016,

respectively.

The fair value of each of the senior secured notes

(all series in the aggregate), the senior amortizing notes and the senior exchangeable notes is estimated based on

third

party broker quotes, a Level

measurement. The fair value of the senior secured notes (all series in the aggregate), the senior amortizing notes and the senior exchangeable notes were estimated at

$1.2

billion,

$2.1

million and

$54.2

million, respectively, as of

October 31, 2017.

As of

October 31, 2016,

the fair value of the senior secured notes (all series in the aggregate), the senior amortizing notes and the senior exchangeable notes were estimated at

$883.0

million,

$6.3

million and

$55.2

million, respectively.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 22 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors

12 Months Ended

Oct. 31, 2017

Condensed Financial Statements [Text Block]

22.

Financial Information of Subsidiary Issuer and Subsidiary Guarantors

Hovnanian Enterprises,

Inc., the parent company (the “Parent”), is the issuer of publicly traded common stock and preferred stock, which is represented by depository shares. One of its wholly owned subsidiaries, K. Hovnanian Enterprises, Inc. (the “Subsidiary Issuer”), acts as a finance entity that, as of

October 31, 2017,

had issued and outstanding

$1,110.0

million of senior secured notes (

$1,090.6

million, net of discount and debt issuance costs),

$368.5

million senior notes (

$366.3

million net of debt issuance costs) and

$2.1

million senior amortizing notes (

$2.0

million net of debt issuance costs) and

$53.9

million senior exchangeable notes (

$53.9

million net of debt issuance costs) (issued as components of our Units). The senior secured notes, senior notes, senior amortizing notes and senior exchangeable notes are fully and unconditionally guaranteed by the Parent.

In addition to the Parent, each of the wholly owned subsidiaries of the Parent other than the Subsidiary Issuer (collectively, “Notes Guarantors”), with the exception of our home mortgage subsidiaries, certain of our title insurance subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures (collectively, the “Nonguarantor Subsidiaries”), have guaranteed fully and unconditionally, on a joint and several basis, the obligations of the Subsidiary Issuer to pay principal and interest under the senior secured notes (other than the

2021

Notes and the

9.50%

2020

Notes), senior notes, senior exchangeable notes and senior amortizing notes.

The Notes Guarantors are directly or indirectly

100%

owned subsidiaries of the Parent. The

2021

Notes and the

9.50%

2020

Notes are guaranteed by the Notes Guarantors and the members of the JV Holdings Secured Group (see Note

The senior amortizing notes and senior exchangeable notes have been registered under the Securities Act of

1933,

as amended (the “Securities Act”). The

7.0%

Notes, the

8.0%

Notes and our senior secured notes (see Note

) are

not,

pursuant to the indentures under which such notes were issued, required to be registered under the Securities Act.

The Consolidating Condensed Financial Statements presented below are in respect of our registered notes only and

not

the

7.0%

Notes, the

8.0%

Notes or the senior secured notes (however, the Notes Guarantors for the

7.0%

Notes, the

8.0%

Notes, the

10.0%

2022

Notes and the

10.5%

2024

Notes are the same as those represented by the accompanying Consolidating “Condensed” Financial Statements). In lieu of providing separate financial statements for the Notes Guarantors of our registered notes, we have included the accompanying Consolidating Financial Statements. Therefore, separate financial statements and other disclosures concerning such Notes Guarantors are

not

presented.

The following Consolidating Condensed Financial Statements present the results of operations, financial position and cash flows of (i)

the Parent, (ii) the Subsidiary Issuer, (iii) the Notes Guarantors, (iv) the Nonguarantor Subsidiaries and (v) the eliminations to arrive at the information for Hovnanian Enterprises, Inc. on a consolidated basis.

CONSOLIDATING CONDENSED BALANCE SHEET

OCTOBER 31,

201

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Nonguarantor Subsidiaries		Eliminations			Consolidated
Assets:
Homebuilding	$	-		$	389,456		$	949,032		$	400,297	$	-		$	1,738,785
Financial services								19,001			143,112					162,113
Intercompany receivable					1,046,796						25,580		(1,072,376	)		-
Investments in and amounts due from consolidated subsidiaries								376,964					(376,964	)		-
Total assets	$	-		$	1,436,252		$	1,344,997		$	568,989	$	(1,449,340	)	$	1,900,898
Liabilities and equity:
Homebuilding, excluding Notes payable and term loan and Revolving credit facilit y	$	740		$	236		$	467,613		$	68,865	$	-		$	537,454
Financial services								19,160			122,754					141,914
Income taxes (receivable) payable		(2	)					2,229								2,227
Notes payable and term loan and Revolving credit facilit y					1,677,891			1,377			406					1,679,674
Intercompany payable		148,385						923,994					(1,072,379	)		-
Amounts due to consolidated subsidiaries		311,248			37,175								(348,423	)		-
Stockholders ’ (deficit) equity		(460,371	)		(279,050	)		(69,376	)		376,964		(28,538	)		(460,371	)
Total liabilities and equity	$	-		$	1,436,252		$	1,344,997		$	568,989	$	(1,449,340	)	$	1,900,898

CONSOLIDATING CONDENSED BALANCE SHEET

OCTOBER 31,

201

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations			Consolidated
Assets:
Homebuilding	$	-		$	271,216		$	1,194,267	$	408,610	$	-		$	1,874,093
Financial services								13,453		183,777					197,230
Income taxes receivable		115,940			(58,597	)		226,258		32					283,633
Intercompany receivable					1,227,334					88,112		(1,315,446	)		-
Investments in and amounts due from consolidated subsidiaries					4,914			437,628				(442,542	)		-
Total assets	$	115,940		$	1,444,867		$	1,871,606	$	680,531	$	(1,757,988	)	$	2,354,956
Liabilities and equity:
Homebuilding, excluding Notes payable and term loan and Revolving credit facility	$	3,506		$	1,118		$	565,163	$	83,476	$	-		$	653,263
Financial services								13,338		159,107					172,445
Notes payable and term loan and Revolving credit facility					1,652,357			5,084		317					1,657,758
Intercompany payable		157,993						1,157,453				(1,315,446	)		-
Amounts due to consolidated subsidiaries		82,951										(82,951	)		-
Stockholders ’ (deficit) equity		(128,510	)		(208,608	)		130,568		437,631		(359,591	)		(128,510	)
Total liabilities and equity	$	115,940		$	1,444,867		$	1,871,606	$	680,531	$	(1,757,988	)	$	2,354,956

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

YEAR ENDED

OCTOBER 31, 2017

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Homebuilding	$	-		$	-		$	2,027,485		$	365,437		$	-		$	2,392,922
Financial services								10,910			47,833						58,743
Intercompany charges					88,601									(88,601	)		-
Total revenues		-			88,601			2,038,395			413,270			(88,601	)		2,451,665
Expenses:
Homebuilding		(3,135	)		140,696			1,946,395			338,706						2,422,662
Financial services		20						6,975			25,351						32,346
Intercompany charges								88,601						(88,601	)		-
Total expenses		(3,115	)		140,696			2,041,971			364,057			(88,601	)		2,455,008
Loss on extinguishment of debt					(34,854	)											(34,854	)
Income (loss) from unconsolidated joint ventures								142			(7,189	)					(7,047	)
(Loss) income before income taxes		3,115			(86,949	)		(3,434	)		42,024			-			(45,244	)
State and federal income tax (benefit) provision		107,011			(58,596	)		238,502			32						286,949
Equity in (loss) income from subsidiaries		(228,297	)		(42,089	)		41,992						228,394			-
Net (loss) income	$	(332,193	)	$	(70,442	)	$	(199,944	)	$	41,992		$	228,394		$	(332,193	)

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

YEAR ENDED

OCTOBER 31,

201

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Homebuilding	$	-		$	-		$	2,232,906		$	446,724		$	-		$	2,679,630
Financial services								11,038			61,579						72,617
Intercompany charges					112,207									(112,207	)		-
Total revenues		-			112,207			2,243,944			508,303			(112,207	)		2,752,247
Expenses:
Homebuilding		1,688			136,796			2,147,123			419,514						2,705,121
Financial services		16						7,387			29,741						37,144
Intercompany charges								112,169			38			(112,207	)		-
Total expenses		1,704			136,796			2,266,679			449,293			(112,207	)		2,742,265
Loss on extinguishment of debt					(3,200	)											(3,200	)
Income (loss) from unconsolidated joint ventures								78			(4,424	)					(4,346	)
(Loss) income before income taxes		(1,704	)		(27,789	)		(22,657	)		54,586			-			2,436
State and federal income tax (benefit) provision		(9,333	)		(30,615	)		45,213			(10	)					5,255
Equity in (loss) income from subsidiaries		(10,448	)		3,901			54,596						(48,049	)		-
Net (loss) income	$	(2,819	)	$	6,727		$	(13,274	)	$	54,596		$	(48,049	)	$	(2,819	)

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

YEAR ENDED

OCTOBER 31, 2015

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Homebuilding	$	-		$	-		$	1,778,700		$	313,115		$	-		$	2,091,815
Financial services								8,685			47,980						56,665
Intercompany charges					124,361									(124,361	)		-
Total revenues		-			124,361			1,787,385			361,095			(124,361	)		2,148,480
Expenses:
Homebuilding		5,125			155,773			1,686,726			294,818						2,142,442
Financial services		105						6,490			25,377						31,972
Intercompany charges								124,360			1			(124,361	)		-
Total expenses		5,230			155,773			1,817,576			320,196			(124,361	)		2,174,414
Income from unconsolidated joint ventures								82			4,087						4,169
(Loss) income before income taxes		(5,230	)		(31,412	)		(30,109	)		44,986			-			(21,765	)
State and federal income tax (benefit) provision		(10,985	)		(30,486	)		35,808			(2	)					(5,665	)
Equity in (loss) income from subsidiaries		(21,855	)		12,915			44,988						(36,048	)		-
Net (loss) income	$	(16,100	)	$	11,989		$	(20,929	)	$	44,988		$	(36,048	)	$	(16,100	)

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

YEAR ENDED

OCTOBER 31,

201

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(332,193	)	$	(70,442	)	$	(199,944	)	$	41,992		$	228,394		$	(332,193	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities		113,504			1,339			796,416			(53,119	)		(228,394	)		629,746
Net cash (used in) provided by operating activities		(218,689	)		(69,103	)		596,472			(11,127	)		-			297,553
Cash flows from investing activities:
Proceeds from sale of property and assets								245			25						270
Purchase of property, equipment and other fixed assets and acquisitions								(6,478	)								(6,478	)
Increase in restricted cash related to mortgage company											2,555						2,555
Decrease in restricted cash related to letters of credit					(3	)											(3	)
Investments in and advances to unconsolidated joint ventures					(521	)		(13,407	)		(22,875	)					(36,803	)
Distributions of capital from unconsolidated joint ventures								45			13,259						13,304
Intercompany investing activities					222,627									(222,627	)		-
Net cash provided by (used in) investing activities		-			222,103			(19,595	)		(7,036	)		(222,627	)		(27,155	)
Cash flows from financing activities:
Net payments from mortgages and notes								(15,907	)		(3,286	)					(19,193	)
Net payments from model sale leaseback financing programs								(12,973	)		(5,555	)					(18,528	)
Net proceeds from land bank financing programs								(42,652	)		85						(42,567	)
Net proceeds from senior secured notes					840,000												840,000
Payments related to senior notes, senior exchangeable notes and senior amortizing notes					(861,976	)											(861,976	)
Net proceeds related to mortgage warehouse lines of credit											(31,023	)					(31,023	)
Deferred financing costs from land bank financing program and note issuance					(12,836	)		(1,462	)		(258	)					(14,556	)
Intercompany financing activities – net		218,689						(503,848	)		62,532			222,627			-
Net cash provided by (used in) financing activities		218,689			(34,812	)		(576,842	)		22,495			222,627			(147,843	)
Net increase in cash		-			118,188			35			4,332			-			122,555
Cash and cash equivalents balance, beginning of period		-			261,553			(395	)		85,607			-			346,765
Cash and cash equivalents balance, end of period	$	-		$	379,741		$	(360	)	$	89,939		$	-		$	469,320

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

YEAR ENDED

OCTOBER 31, 2016

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(2,819	)	$	6,727		$	(13,274	)	$	54,596		$	(48,049	)	$	(2,819	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities		15,059			(26,032	)		353,149			259			48,049			390,484
Net cash provided by (used in) operating activities		12,240			(19,305	)		339,875			54,855			-			387,665
Cash flows from investing activities:
Proceeds from sale of property and assets								685			79						764
Purchase of property, equipment and other fixed assets and acquisitions								(7,977	)		(30	)					(8,007	)
Decrease in restricted cash related to mortgage company											2,034						2,034
Decrease in restricted cash related to letters of credit					872												872
Investments in and advances to unconsolidated joint ventures					(290	)		(74	)		(49,541	)					(49,905	)
Distributions of capital from unconsolidated joint ventures											5,264						5,264
Intercompany investing activities					344,479									(344,479	)		-
Net cash (used in) provided by investing activities		-			345,061			(7,366	)		(42,194	)		(344,479	)		(48,978	)
Cash flows from financing activities:
Net payments from mortgages and notes								(60,535	)		(476	)					(61,011	)
Net payments from model sale leaseback financing programs								(14,004	)		(3,134	)					(17,138	)
Net proceeds from land bank financing programs								53,654			11,980						65,634
Borrowings from revolving credit facility					5,000												5,000
Proceeds from senior secured term loan facility					75,000												75,000
Net proceeds from senior secured notes					71,250												71,250
Payments related to senior notes, senior exchangeable notes and senior amortizing notes					(409,646	)											(409,646	)
Net proceeds related to mortgage warehouse lines of credit											36,713						36,713
Deferred financing costs from land bank financing program and note issuance					(5,125	)		(4,812	)		(1,532	)					(11,469	)
Intercompany financing activities – net		(12,240	)					(302,407	)		(29,832	)		344,479			-
Net cash (used in) provided by financing activities		(12,240	)		(263,521	)		(328,104	)		13,719			344,479			(245,667	)
Net increase in cash		-			62,235			4,405			26,380			-			93,020
Cash and cash equivalents balance, beginning of period		-			199,318			(4,800	)		59,227			-			253,745
Cash and cash equivalents balance, end of period	$	-		$	261,553		$	(395	)	$	85,607		$	-		$	346,765

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

YEAR ENDED

OCTOBER 31, 2015

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(16,100	)	$	11,989		$	(20,929	)	$	44,988		$	(36,048	)	$	(16,100	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities		122,264			110,820			(456,704	)		(116,863	)		36,048			(304,435	)
Net cash (used in) provided by operating activities		106,164			122,809			(477,633	)		(71,875	)		-			(320,535	)
Cash flows from investing activities:
Proceeds from sale of property and assets								1,556			17						1,573
Purchase of property, equipment and other fixed assets and acquisitions								(2,054	)								(2,054	)
Decrease in restricted cash related to mortgage company											1,555						1,555
Decrease in restricted cash related to letters of credit					2,993												2,993
Investments in and advances to unconsolidated joint ventures					16			(114	)		(18,609	)					(18,707	)
Distributions of capital from unconsolidated joint ventures					315			646			16,151						17,112
Intercompany investing activities					(313,174	)								313,174			-
Net cash provided by (used in) investing activities		-			(309,850	)		34			(886	)		313,174			2,472
Cash flows from financing activities:
Net proceeds from mortgages and notes								27,881			11,502						39,383
Net proceeds from model sale leaseback financing programs								17,117			5,867						22,984
Net payments from land bank financing programs								(6,198	)		(1,147	)					(7,345	)
Proceeds from senior notes					250,000												250,000
Payments related to senior notes and senior amortizing notes					(65,053	)											(65,053	)
Borrowings from revolving credit facility					47,000												47,000
Net proceeds related to mortgage warehouse lines of credit											31,956						31,956
Deferred financing costs from land bank financing programs and note issuances					(5,096	)		(2,732	)		(1,187	)					(9,015	)
Intercompany financing activities		(106,164	)					441,457			(22,119	)		(313,174	)		-
Net cash provided by (used in) financing activities		(106,164	)		226,851			477,525			24,872			(313,174	)		309,910
Net (decrease) increase in cash		-			39,810			(74	)		(47,889	)		-			(8,153	)
Cash and cash equivalents balance, beginning of period		-			159,508			(4,726	)		107,116			-			261,898
Cash and cash equivalents balance, end of period	$	-		$	199,318		$	(4,800	)	$	59,227		$	-		$	253,745

Note 23 - Unaudited Summarized Consolidated Quarterly Information

12 Months Ended

Oct. 31, 2017

Quarterly Financial Information [Text Block]

23.

Unaudited Summarized Consolidated Quarterly Information

Summarized quarterly financial information for the years ended

October

31,

2017

and

2016

is as follows:

	Three Months Ended
(In thousands, except per share data)	October 31, 2017		July 31, 2017			April 30, 2017			January 31, 2017
Revenues	$	721,686	$	592,035		$	585,935		$	552,009
Expenses		703,964		591,872			586,877			554,482
Inventory impairment loss and land option write-offs		8,479		4,197			1,953			3,184
(Loss) gain on extinguishment of debt		-		(42,258	)		(242	)		7,646
Income (loss) from unconsolidated joint ventures		3,062		(3,881	)		(4,562	)		(1,666	)
Income (loss) before income taxes		12,305		(50,173	)		(7,699	)		323
State and federal income tax provision (benefit)		464		287,036			(1,017	)		466
Net income (loss)	$	11,841	$	(337,209	)	$	(6,682	)	$	(143	)
Per share data:
Basic:
Income (loss) per common share	$	0.08	$	(2.28	)	$	(0.05	)	$	(0.00	)
Weighted-average number of common shares outstanding		147,905		147,748			147,558			147,535
Assuming dilution:
Income (loss) per common share	$	0.08	$	(2.28	)	$	(0.05	)	$	(0.00	)
Weighted-average number of common shares outstanding		160,548		147,748			147,558			147,535

	Three Months Ended
(In thousands, except per share data)	October 31, 2016		July 31, 2016			April 30, 2016			January 31, 2016
Revenues	$	805,069	$	716,850		$	654,723		$	575,605
Expenses		760,171		711,791			661,312			575,638
Inventory impairment loss and land option write-offs		10,438		1,565			9,669			11,681
Loss on extinguishment of debt		3,200		-			-			-
Income (loss) from unconsolidated joint ventures		881		(2,401	)		(1,346	)		(1,480	)
Income (loss) before income taxes		32,141		1,093			(17,604	)		(13,194	)
State and federal income tax provision (benefit)		9,852		1,567			(9,143	)		2,979
Net income (loss)	$	22,289	$	(474	)	$	(8,461	)	$	(16,173	)
Per share data:
Basic:
Income (loss) per common share	$	0.14	$	(0.00	)	$	(0.06	)	$	(0.11	)
Weighted-average number of common shares outstanding		147,521		147,412			147,334			147,139
Assuming dilution:
Income (loss) per common share	$	0.14	$	(0.00	)	$	(0.06	)	$	(0.11	)
Weighted-average number of common shares outstanding		160,590		147,412			147,334			147,139

Note 24 - Subsequent Events	12 Months Ended
Note 24 - Subsequent Events	Oct. 31, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	24. Subsequent events On November 1, 2017, we sold our corporate headquarters building and land in Red Bank, New Jersey, which had a net book value of $34.7 million for $42.5 million. We used a portion of the proceeds to pay off our nonrecourse loans on the building of $13.0 million. On December 1, 2017 we made our final installment payment of $56.1 million on our senior exchangeable note units, as described in Note 9. On December 14, 2017, the Company settled a lawsuit with the condominium association of the Grandview II at Riverwalk Port Imperial condominium building, for which the company had fully reserved the settlement amount as of October 31, 2017. Also, on December 18, 2017, the parties finalized a settlement agreement to resolve the litigation of a class action lawsuit filed against the Company ’s Board. See Note 18 for further information on these settlements. 112

Significant Accounting Policies (Policies)

12 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Revenue Recognition, Policy [Policy Text Block]

Income Recognition from Home and Land Sales

- We are primarily engaged in the development, construction, marketing and sale of residential single-family and multi-family homes where the planned construction cycle is less than

months. For these homes, in accordance with Accounting Standards Codification (“ASC”)

360

20,

“Property, Plant and Equipment - Real Estate Sales,” revenue is recognized when title is conveyed to the buyer, adequate initial and continuing investments have been received and there is

continued involvement. In situations where the buyer’s financing is originated by our mortgage subsidiary and the buyer has

not

made an adequate initial investment or continuing investment as prescribed by ASC

360

20,

the profit on such sales is deferred until the sale of the related mortgage loan to a

third

-party investor has been completed.

Income Recognition from Mortgage Loans -

We elected the fair value option for our mortgage loans held for sale in accordance with ASC

825,

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

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

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

October 31, 2017

and

2016,

$13.3

million and

$9.4

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

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Inventory, Policy [Policy Text Block]

Inventories

three

components: (

) land and land options held for future development or sale, which includes all costs related to land in our communities in planning or mothballed communities; and (

) consolidated inventory

not

We decide to mothball (or stop development on) certain communities when we determine that the current performance does

not

justify further investment at the time.

2017,

we did

not

mothball any communities, but we sold

five

previously mothballed communities and re-activated

two

previously mothballed communities. As of

October 31, 2017

and

2016,

the net book value associated with our

and

total mothballed communities was

$36.7

million and

$74.4

million, respectively, which was net of impairment charges recorded in prior periods of

$214.1

million and

$296.3

million, respectively.

360

38,

we are required to record this inventory on our Consolidated Balance Sheets. As of

October 31,

201

and

2016,

we had

specific performance options.

We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a

third

party at the end of the respective lease. As a result of our continued involvement, for accounting purposes in accordance with ASC

360

38,

these sale and leaseback transactions are considered a financing rather than a sale. Therefore, for purposes of our Consolidated Balance Sheets, at

October 31,

201

and

2016,

inventory of

$58.5

million and

$79.2

million, respectively, was recorded to “Consolidated inventory

not

owned,” with a corresponding amount of

$51.8

million and

$69.7

million, respectively, recorded to “Liabilities from inventory

not

owned” for the amount of net cash received from the transactions.

360

38,

these transactions are considered a financing rather than a sale. For purposes of our Consolidated Balance Sheets, at

October 31,

201

and

2016,

inventory of

$66.3

million and

$129.5

million, respectively, was recorded to “Consolidated inventory

not

owned,” with a corresponding amount of

$39.3

million and

$80.5

million, respectively, recorded to “Liabilities from inventory

not

owned” for the amount of net cash received from the transactions.

The recoverability of inventories and other long-lived assets is assessed in accordance with the provisions of ASC

360

10,

“Property, Plant and Equipment

– Overall.” ASC

360

We evaluate inventories of communities under development and held for future development for impairment when indicators of potential impairment are present. Indicators of impairment include, but are

not

The projected operating profits, losses or cash flows of each community can be significantly impacted by our estimates of the following:

●

future base selling prices;

●

future home sales incentives;

●

future home construction and land development costs; and

●

future sales absorption pace and cancellation rates.

may

impact our estimates for a community include:

●

the intensity of competition within a market, including available home sales prices and home sales incentives offered by our competitors;

●

the current sales absorption pace for both our communities and competitor communities;

●

community-specific attributes, such as location, availability of lots in the market, desirability and uniqueness of our community, and the size and style of homes currently being offered;

●

potential for alternative product offerings to respond to local market conditions;

●

changes by management in the sales strategy of the community;

●

current local market economic and demographic conditions and related trends and forecasts; and

●

existing home inventory supplies, including foreclosures and short sales.

These and other local market-specific conditions that

may

lead us to price our homes with the objective of yielding a higher sales absorption pace, while facts and circumstances in another community

may

lead us to price our homes to minimize deterioration in our gross margins, although it

may

result in a slower sales absorption pace. In addition, the key assumptions included in our estimate of future undiscounted cash flows

may

be interrelated. For example, a decrease in estimated base sales price or an increase in homes sales incentives

may

result in a corresponding increase in sales absorption pace. Additionally, a decrease in the average sales price of homes to be sold and closed in future reporting periods for

one

community that has

not

been generating what management believes to be an adequate sales absorption pace

may

not

believe it is possible to develop a sensitivity analysis with a level of precision that would be meaningful to an investor.

If the undiscounted cash flows are more than the carrying value of the community, then the carrying amount is recoverable, and

third

parties. Our discount rates used for all impairments recorded from

October 31,

201

October 31, 2017

ranged from

16.8%

19.8%.

may

be required to recognize additional impairments related to current and future communities. The impairment of a community is allocated to each lot on a relative fair value basis.

From time to time, we write off deposits and approval, engineering and capitalized interest costs when we determine that it is

longer probable that we will exercise options to buy land in specific locations or when we redesign communities and/or abandon certain engineering costs. In deciding

not

been significant in comparison to the total costs written off.

Inventories held for sale are land parcels ready for sale in their current condition, where we have decided

not

to build homes but are instead actively marketing for sale. These land parcels represented $

23.6

million and

$48.7

million of our total inventories at

October 31, 2017

and

2016,

third

parties.

Post-development Completion Warranty Costs and Insurance Deductible Reserves, Policy [Policy Text Block]

Post-Development Completion, Warranty Costs

and

Insurance Deductible Reserves

2017

and

2016,

our deductible under our general liability insurance is a

$20

million aggregate for construction defect and warranty claims. For bodily injury claims, our deductible per occurrence in fiscal

2017

and

2016

$0.25

million, up to a

million limit. Our aggregate retention in fiscal

2017

and

2016

$21

million for construction defect, warranty and bodily injury claims. We do

not

have a deductible on our worker's compensation insurance. Reserves for estimated losses for construction defects, warranty and bodily injury claims have been established using the assistance of a

third

-party actuary. We engage a

third

-party actuary that uses our historical warranty and construction defect data to assist our management in estimating our unpaid claims, claim adjustment expenses and incurred but

not

for additional information on the amount of warranty costs recognized in cost of goods sold and administrative expenses.

Inventory, Interest Capitalization Policy [Policy Text Block]

Interest

Interest costs incurred, expensed and capitalized were:

	Year Ended
(In thousands)	October 31, 2017		October 31, 2016		October 31, 2015
Interest capitalized at beginning of year	$	96,688	$	123,898	$	109,158
Plus interest incurred(1)		160,203		166,824		166,188
Less cost of sales interest expensed		88,536		92,391		59,613
Less other interest expensed(2)(3)		97,304		90,967		91,835
Less interest contributed to unconsolidated joint venture(4)		-		10,676		-
Interest capitalized at end of year(5)	$	71,051	$	96,688	$	123,898

(

)

Data does

not

include interest incurred by our mortgage and finance subsidiaries.

(

)

Other interest expensed includes interest that does

not

qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do

not

exceed our debt, which amounted to

$69.1

million,

$50.4

million and

$77.6

million for the years ended

October 31, 2017,

2016

and

2015,

respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does

not

qualify for capitalization, and therefore, is expensed. This component of other interest was

$28.2

million,

$40.6

million and

$14.2

million for the years ended

October 31, 2017,

2016

and

2015.

(

)

	Year Ended
(In thousands)	October 31, 2017			October 31, 2016		October 31, 2015
Other interest expensed	$	97,304		$	90,967	$	91,835
Interest paid by our mortgage and finance subsidiaries		1,944			2,866		2,050
(Increase) decrease in accrued interest		(9,412	)		7,963		(8,166	)
Cash paid for interest, net of capitalized interest	$	89,836		$	101,796	$	85,719

(

)

Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in

November 2015,

as discussed in Note

20.

There was

impact to the Consolidated Statement of Operations as a result of this transaction.

(

)

Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.

Land under Option Arrangements, Policy [Policy Text Block]

Land Options -

not

owned” with an offset under “Liabilities from inventory

not

owned” with an offset under “Liabilities from inventory

not

owned.” In accordance with ASC

810

“Consolidation – Overall,” we record costs associated with other options on the Consolidated Balance Sheets under “Land and land options held for future development or sale.”

Equity Method Investments [Policy Text Block]

Unconsolidated Homebuilding and Land Development Joint Ventures -

third

parties. Our ownership interests in the joint ventures vary but our voting interests are generally

50%

or less. In determining whether or

not

we control a venture can require significant judgment. In accordance with ASC

323

10,

During fiscal

2017,

we wrote down certain joint venture investments by

$2.8

million. There were

write-downs in fiscal

2016

2015.

Deferred Charges, Policy [Policy Text Block]

Deferred Bond Issuance Costs -

Debt, Policy [Policy Text Block]

Debt Issued At a Discount -

Advertising Costs, Policy [Policy Text Block]

Advertising Costs

- Advertising costs are expensed as incurred. During the years ended

October

31,

2017,

2016

and

2015,

advertising costs expensed totaled

$17.9

million,

$21.4

million and

$21.0

million, respectively.

Income Tax, Policy [Policy Text Block]

Deferred Income Taxes -

740

10,

“Income Taxes – Overall,” we evaluate our deferred tax assets quarterly to determine if valuation allowances are required. ASC

740

requires that companies assess whether valuation allowances should be established based on the consideration of all available evidence using a “more-likely-than-

not”

standard.

In evaluating the exposures associated with our various tax filing positions, we recognize tax liabilities in accordance with ASC

740

10,

for more likely than

not

exposures.

may

Depreciation, Depletion, and Amortization [Policy Text Block]

Depreciation -

Property, plant and equipment are depreciated using the straight-line method over the estimated useful life of the assets ranging from

years.

Prepaid Expenses, Policy [Policy Text Block]

Prepaid Expenses -

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Allowance for Doubtful Accounts

$7.3

million and

$7.6

million at

October 31, 2017

and

2016,

respectively, which primarily related to allowances for receivables from municipalities and an allowance for a receivable for a prior year land sale. During fiscal

2017

and

2016,

we recorded

$0.2

million and

$0.8

million, respectively, in recoveries. In addition, there were

$0.1

million and

$0.2

million of write-offs in fiscal

2017

and

2016,

respectively. During fiscal

2016,

we recorded

$1.0

million of additional reserves.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Options -

We account for our stock options under ASC

718

10,

Earnings Per Share, Policy [Policy Text Block]

Per Share Calculations -

6.0%

two

-class method. The

two

’s restricted common stock (“nonvested shares”) are considered participating securities.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

May 2014,

the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”)

No.

2014

09,

“Revenue from Contracts with Customers” (Topic

606

), (“ASU

2014

09”

). ASU

2014

) identify the contract(s) with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract; and (

) recognize revenue when (or as) the entity satisfies a performance obligation. ASU

2014

supersedes the revenue recognition requirements in ASU

605,

“Revenue Recognition,” and most industry-specific guidance in the Accounting Standards Codification. In

August 2015,

the FASB

issued ASU

2015

on this same topic, which defers for

one

year the effective date of ASU

2014

09,

therefore making the guidance effective for the Company beginning

November 1, 2018.

December 15, 2016.

2014

August 2014,

the FASB issued ASU

2014

15,

“Disclosure of Uncertainties About an Entity

’s Ability to Continue as a Going Concern” (“ASU

2014

15”

one

year of the date the financial statements are issued and to provide related disclosures, if required. ASU

2014

was effective for the Company as of our fiscal year ending

October 31, 2017 and

the adoption did

not

have a material impact on the Company’s Consolidated Financial Statements.

February 2016,

the FASB issued ASU

2016

02,

“Leases (Topic

842

)” (“ASU

2016

02”

), which provides guidance for accounting for leases. ASU

2016

requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than

2016

is effective for the Company beginning

November

2019.

Early adoption is permitted. We are currently evaluating the impact of adopting this guidance on our Consolidated Financial Statements.

August 2016,

the FASB issued ASU

No.

2016

15,

“Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments” (“ASU

2016

15”

). ASU

2016

provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU

2016

is effective for the Company

’s fiscal year beginning

November 1, 2018.

Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements.

October 2016,

the FASB issued ASU

No.

2016

16,

“Income Taxes (Topic

740

): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU

2016

16”

). ASU

2016

provides improvement for the accounting of income taxes related to intra-entity transfers of assets other than inventory. ASU

2016

is effective for the Company

’s fiscal year beginning

November 1, 2018.

Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements.

October 2016,

the FASB issued ASU

No.

2016

17,

“Consolidation (Topic

810

): Interests Held through Related Parties That Are under Common Control” (“ASU

2016

17”

). ASU

2016

is effective for the Company

’s fiscal year beginning

November 1, 2017.

Early adoption is permitted. We do

not

anticipate the adoption of ASU

2016

to have a material impact on our Consolidated Financial Statements.

November 2016,

the FASB issued ASU

No.

2016

18,

“Statement of Cash Flows (Topic

230

): Restricted Cash” (“ASU

2016

18”

). ASU

2016

amends the classification and presentation of changes in restricted cash or restricted cash equivalents in the statement of cash flows. ASU

2016

is effective for the Company

’s fiscal year beginning

November 1, 2018.

Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements.

Note 3 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block]

	Year Ended
(In thousands)	October 31, 2017		October 31, 2016		October 31, 2015
Interest capitalized at beginning of year	$	96,688	$	123,898	$	109,158
Plus interest incurred(1)		160,203		166,824		166,188
Less cost of sales interest expensed		88,536		92,391		59,613
Less other interest expensed(2)(3)		97,304		90,967		91,835
Less interest contributed to unconsolidated joint venture(4)		-		10,676		-
Interest capitalized at end of year(5)	$	71,051	$	96,688	$	123,898

Cash Paid for Interest Net of Capitalized Interest [Table Text Block]

	Year Ended
(In thousands)	October 31, 2017			October 31, 2016		October 31, 2015
Other interest expensed	$	97,304		$	90,967	$	91,835
Interest paid by our mortgage and finance subsidiaries		1,944			2,866		2,050
(Increase) decrease in accrued interest		(9,412	)		7,963		(8,166	)
Cash paid for interest, net of capitalized interest	$	89,836		$	101,796	$	85,719

Note 4 - Leases (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Years Ending October 31,	(In Thousands)
2018	$	8,139
2019		7,882
2020		5,354
2021		2,915
2022		2,434
Thereafter		4,342
Total	$	31,066

Note 5 - Property, Plant and Equipment (Tables)

12 Months Ended

Oct. 31, 2017

Property, Plant and Equipment [Table Text Block]

	October 31,
(In thousands)	2017		2016

Land and land improvements	$	2,625	$	2,398
Buildings		69,279		67,860
Building improvements		9,458		8,231
Furniture		5,571		5,788
Equipment , including capitalized software		35,328		35,770
Total		122,261		120,047
Less accumulated depreciation		69,342		69,715
Total		52,919	$	50,332

Note 7 - Mortgage Loans Held for Sale (Tables)

12 Months Ended

Oct. 31, 2017

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Year Ended
	October 31,
(In thousands)	2017			2016

Loan origination reserves, beginning of period	$	8,137		$	8,025
Provisions for losses during the period		165			261
Adjustments to pre-existing provisions for losses from changes in estimates		(4,571	)		48
Payments/settlements		(573	)		(197	)
Loan origination reserves, end of period	$	3,158		$	8,137

Note 9 - Senior Notes and Term Loan (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Long-term Debt Instruments [Table Text Block]

(In thousands)	October 31, 2017(1)(2)		October 31, 2016(1)(2)
Senior Secured Term Loan, net of debt issuance costs	$	72,987	$	72,646
Senior Secured Notes:
7.25% Senior Secured First Lien Notes due October 15, 2020	$	-	$	569,641
10.0% Senior Secured Second Lien Notes due October 15, 2018 (net of discount)		-		68,951
9.125% Senior Secured Second Lien Notes due November 15, 2020		-		143,337
9.50% Senior Secured Notes due November 15, 2020		74,350		74,140
2.0% Senior Secured Notes due November 1, 2021 (net of discount)		53,058		53,022
5.0% Senior Secured Notes due November 1, 2021 (net of discount)		133,732		131,998
10.0% Senior Secured Notes due July 15, 2022		434,543		-
10.5% Senior Secured Notes due July 15, 2024		394,953		-
Total Senior Secured Notes, net of debt issuance costs	$	1,090,636	$	1,041,089
Senior Notes:
7.0% Senior Notes due January 15, 2019	$	131,957	$	148,800
8.0% Senior Notes due November 1, 2019		234,293		247,348
Total Senior Notes, net of debt issuance costs	$	366,250	$	396,148
11.0% Senior Amortizing Notes due December 1, 2017, net of debt issuance costs	$	2,045	$	6,152
Senior Exchangeable Notes due December 1, 2017, net of debt issuance costs	$	53,919	$	57,298

Schedule of Maturities of Long-term Debt [Table Text Block]

Fiscal Year Ended October 31,
2018	$	56,002
2019		207,546
2020		235,961
2021		75,000
2022		635,000
Thereafter		400,000
Total	$	1,609,509

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Note 10 - Operating and Reporting Segments (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	October 31,
(In thousands)	2017		2016
Assets:
Northeast	$	180,545	$	219,363
Mid-Atlantic		224,398		292,899
Midwest		84,960		111,596
Southeast		231,644		226,124
Southwest		294,337		341,472
West		175,347		269,400
Total homebuilding		1,191,231		1,460,854
Financial services		162,113		197,230
Corporate and unallocated (1)		547,554		696,872
Total assets	$	1,900,898	$	2,354,956

	October 31,
(In thousands)	2017		2016
Investments in and advances to unconsolidated joint ventures:
Northeast	$	36,411	$	28,115
Mid-Atlantic		20,873		22,407
Midwest		4,268		5,516
Southeast		36,320		22,876
Southwest		11,832		3,625
West		4,451		17,547
Total homebuilding		114,155		100,086
Corporate and unallocated		935		416
Total investments in and advances to unconsolidated joint ventures	$	115,090	$	100,502

Operating Segments [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Year Ended October 31,
(In thousands)	2017			2016			2015
Revenues:
Northeast	$	209,509		$	278,028		$	189,497
Mid-Atlantic		464,126			458,579			399,500
Midwest		199,770			311,322			311,449
Southeast		260,402			260,584			207,662
Southwest		827,503			1,028,529			823,853
West		430,546			342,447			159,969
Total homebuilding		2,391,856			2,679,489			2,091,930
Financial services		58,743			72,617			56,665
Corporate and unallocated		1,066			141			(115	)
Total revenues	$	2,451,665		$	2,752,247		$	2,148,480
(Loss) income before income taxes:
Northeast	$	2,300		$	(3,869	)	$	(7,742	)
Mid-Atlantic		17,191			17,476			21,431
Midwest		(1,151	)		(11,416	)		14,012
Southeast		(6,199	)		(17,791	)		(6,330	)
Southwest		71,540			84,424			67,437
West		19,636			3,445			(17,145	)
Total homebuilding		103,317			72,269			71,663
Financial services		26,397			35,473			24,693
Corporate and unallocated (1)		(174,958	)		(105,306	)		(118,121	)
(Loss) income before income taxes	$	(45,244	)	$	2,436		$	(21,765	)

	Year Ended October 31,
(In thousands)	2017			2016			2015
Homebuilding interest expense:
Northeast	$	20,308		$	19,417		$	14,150
Mid-Atlantic		23,886			23,662			16,268
Midwest		7,799			12,275			10,405
Southeast		13,646			16,770			9,552
Southwest		25,278			37,552			26,147
West		25,799			23,295			10,381
Total homebuilding		116,716			132,971			86,903
Corporate and unallocated		69,124			50,387			64,545
Financial services interest expense (1)		(630	)		(763	)		(1,066	)
Total interest expense, net	$	185,210		$	182,595		$	150,382

	Year Ended October 31,
(In thousands)	2017		2016		2015
Depreciation:
Northeast	$	71	$	62	$	136
Mid-Atlantic		50		56		28
Midwest		858		497		361
Southeast		83		82		40
Southwest		78		104		89
West		94		92		79
Total homebuilding		1,234		893		733
Financial services		16		41		47
Corporate and unallocated		2,999		2,631		2,608
Total depreciation	$	4,249	$	3,565	$	3,388

	Year Ended October 31,
(In thousands)	2017		2016		2015
Net additions to operating properties and equipment:
Northeast	$	442	$	78	$	-
Mid-Atlantic		71		208		58
Midwest		3,773		3,180		637
Southeast		28		233		227
Southwest		18		199		173
West		80		91		88
Total homebuilding		4,412		3,989		1,183
Financial services		-		30		-
Corporate and unallocated		2,066		3,988		871
Total net additions to operating properties and equipment	$	6,478	$	8,007	$	2,054

	Year Ended October 31,
(In thousands)	2017			2016			2015
Equity in (losses) earnings from unconsolidated joint ventures:
Northeast	$	(4,376	)	$	(2,639	)	$	856
Mid-Atlantic		1,180			(27	)		4,502
Midwest		(1,424	)		(1,304	)		(105	)
Southeast		837			(1,774	)		1,213
Southwest		(306	)		(64	)		-
West		(2,958	)		1,462			(2,297	)
Total equity in (losses) earnings from unconsolidated joint ventures	$	(7,047	)	$	(4,346	)	$	4,169

Note 11 - Income Taxes (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Components of Income Tax Payable Receivable [Table Text Block]

	Year Ended October 31,
(In thousands)	2017		2016
State income taxes:
Current	$	2,227	$	1,945
Deferred		-		(9,890	)
Federal income taxes:
Current		-		-
Deferred		-		(275,688	)
Total	$	2,227	$	(283,633	)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended October 31,
(In thousands)	2017		2016			2015
Current income tax expense (benefit):
Federal (1)	$	-	$	(2,796	)	$	(1,497	)
State (2)		1,371		1,200			523
Total current income tax expense (benefit):		1,371		(1,596	)		(974	)
Federal		275,688		5,594			(8,461	)
State		9,890		1,257			3,770
Total deferred income tax expense (benefit):		285,578		6,851			(4,691	)
Total	$	286,949	$	5,255		$	(5,665	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	Year Ended October 31,
(In thousands)	2017			2016
Deferred tax assets:
Depreciation	$	246		$	1,729
Inventory impairment loss		122,584			174,489
Uniform capitalization of overhead		5,766			6,802
Warranty and legal reserves		8,763			13,238
Deferred income		2,341			5,061
Acquisition intangibles		4,420			8,829
Restricted stock bonus		4,202			4,526
Rent on abandoned space		101			1,006
Stock options		6,539			7,073
Provision for losses		38,831			34,505
Joint venture loss		12,028			4,171
Federal net operating losses		549,862			520,117
State net operating losses		172,307			170,014
Other		20,678			22,862
Total deferred tax assets		948,668			974,422
Deferred tax liabilities:
Debt repurchase income		30,465			60,901
Total deferred tax liabilities		30,465			60,901
Valuation allowance		(918,203	)		(627,943	)
Net deferred income taxes	$	-		$	285,578

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended October 31,
	2017			2016			2015
Computed “expected” tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		1.0			65.4			(15.6	)
Permanent differences, net		(2.4	)		222.2			(0.4	)
Deferred tax asset valuation allowance impact		(667.8	)		-			-
Tax contingencies		-			0.3			3.2
Adjustments to prior years ’ tax accruals(1)		-			(107.2	)		3.8
Effective tax rate		(634.2	)%		215.7	%		26.0	%

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	Year Ended October 31,
		2017			2016
Unrecognized tax benefit —November 1,		$	1.1		$	1.1
Gross increases —tax positions in current period			0.2			0.2
Decrease related to tax positions taken during a prior period			-			-
Lapse of statute of limitations			(0.2	)		(0.2	)
Unrecognized tax benefit —October 31,		$	1.1		$	1.1

Note 12 - Reduction of Inventory to Fair Value (Tables)

12 Months Ended

Oct. 31, 2017

Inventory Impairment [Table Text Block]

(Dollars in millions)	Year Ended October 31, 2017
	Number of Communities		Dollar Amount of Impairment		Pre- Impairment Value (1)
Northeast		2	$	3.3	$	22.2
Mid-Atlantic		1		1.5		8.5
Midwest		2		0.2		0.8
Southeast		3		8.1		18.3
Southwest		-		-		-
West		2		2.0		3.1
Total		10	$	15.1	$	52.9

(Dollars in millions)	Year Ended October 31, 2016
	Number of Communities		Dollar Amount of Impairment		Pre- Impairment Value (1)
Northeast		5	$	9.5	$	33.8
Mid-Atlantic		-		-		-
Midwest		12		13.5		43.7
Southeast		3		1.5		10.9
Southwest		-		-		-
West		-		-		-
Total		20	$	24.5	$	88.4

(Dollars in millions)	Year Ended October 31, 2015
	Number of Communities		Dollar Amount of Impairment		Pre- Impairment Value (1)
Northeast		2	$	0.8	$	0.9
Mid-Atlantic		1		0.9		2.5
Midwest		4		1.3		8.4
Southeast		4		2.5		10.1
Southwest		-		-		-
West		1		1.8		7.5
Total		12	$	7.3	$	29.4

Write Offs and Lots Walked Away From [Table Text Block]

	Year Ended October 31,
(In millions)	2017		2016		2015
Northeast	$	0.5	$	1.6	$	0.9
Mid-Atlantic		0.6		0.8		0.2
Midwest		0.3		1.3		0.6
Southeast		0.8		1.8		1.3
Southwest		0.4		3.2		1.4
West		0.1		0.2		0.3
Total	$	2.7	$	8.9	$	4.7

Note 15 - Stock Plans (Tables)

12 Months Ended

Oct. 31, 2017

Share-based Compensation, Stock Options, Activity [Table Text Block]

	October 31, 2017		Weighted-Average Exercise Price		October 31, 2016		Weighted-Average Exercise Price		October 31, 2015		Weighted-Average Exercise Price
Options outstanding at beginning of period		7,373,951	$	4.03		6,393,876	$	4.78		6,720,251	$	5.23
Granted		236,250	$	2.34		1,148,481	$	1.95		173,750	$	2.47
Exercised		48,250	$	2.07		-	$	-		18,125	$	2.48
Forfeited		452,375	$	5.85		51,125	$	2.73		203,436	$	3.78
Expired		248,875	$	16.68		117,281	$	25.05		278,564	$	15.04
Options outstanding at end of period		6,860,701	$	3.40		7,373,951	$	4.03		6,393,876	$	4.78
Options exercisable at end of period		5,259,011				5,071,181				4,566,290

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

			Number		Weighted- Average		Weighted- Average Remaining Contractual
Range of Exercise Prices			Outstanding		Exercise Price		Life
$1.54	–	$2.41		2,320,409	$	2.01		6.71
$2.42	–	$4.41		2,496,542	$	2.84		3.26
$4.42	–	$6.46		2,043,750	$	5.70		2.57
				6,860,701	$	3.41		4.22

			Number		Weighted- Average		Weighted- Average Remaining Contractual
Range of Exercise Prices			Exercisable		Exercise Price		Life
$1.54	–	$2.41		1,003,714	$	2.00		4.02
$2.42	–	$4.41		2,322,797	$	2.77		2.96
$4.42	–	$6.46		1,932,500	$	5.66		2.40
				5,259,011	$	3.69		2.96

Schedule of Nonvested Share Activity [Table Text Block]

	Shares		Weighted-Average Grant Date Fair Value
Nonvested at beginning of period		7,239,469	$	2.80
Granted		1,233,700	$	2.56
Vested		1,216,359	$	4.92
Forfeited		1,082,333	$	2.59
Nonvested at end of period		6,174,477	$	2.36

Note 16 - Warranty Costs (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Product Warranty Liability [Table Text Block]

	Year Ended October 31,
(In thousands)	2017			2016

Balance, beginning of period	$	121,144		$	135,053
Additions – Selling, general and administrative		10,870			17,363
Additions – Cost of sales		15,835			17,397
Charges incurred during the period		(28,019	)		(29,965	)
Changes to pre-existing reserves		7,872			(9,199	)
Changes to reserves where corresponding amounts are recorded as receivables from insurance carriers		-			(9,505	)
Balance, end of period	$	127,702		$	121,144

Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables)

12 Months Ended

Oct. 31, 2017

Equity Method Investments [Table Text Block]

	October 31, 2017
(Dollars in thousands)	Homebuilding			Land Development			Total
Assets:
Cash and cash equivalents	$	60,580		$	194		$	60,774
Inventories		666,017			9,162			675,179
Other assets		36,026			-			36,026
Total assets	$	762,623		$	9,356		$	771,979
Liabilities and equity:
Accounts payable and accrued liabilities	$	121,646		$	429		$	122,075
Notes payable		330,642			-			330,642
Total liabilities		452,288			429			452,717
Equity of:
Hovnanian Enterprises, Inc.		88,884			3,746			92,630
Others		221,451			5,181			226,632
Total equity		310,335			8,927			319,262
Total liabilities and equity	$	762,623		$	9,356		$	771,979
Debt to capitalization ratio		52	%		0	%		51	%

	October 31, 2016
(Dollars in thousands)	Homebuilding			Land Development			Total
Assets:
Cash and cash equivalents	$	48,542		$	1,478		$	50,020
Inventories		516,947			11,010			527,957
Other assets		25,865			-			25,865
Total assets	$	591,354		$	12,488		$	603,842
Liabilities and equity:
Accounts payable and accrued liabilities	$	72,302		$	1,812		$	74,114
Notes payable		214,911			2,261			217,172
Total liabilities		287,213			4,073			291,286
Equity of:
Hovnanian Enterprises, Inc.		88,379			3,220			91,599
Others		215,762			5,195			220,957
Total equity		304,141			8,415			312,556
Total liabilities and equity	$	591,354		$	12,488		$	603,842
Debt to capitalization ratio		41	%		21	%		41	%

	For The Year Ended October 31, 2017
(Dollars in thousands)	Homebuilding			Land Development			Total
Revenues	$	312,164		$	5,685		$	317,849
Cost of sales and expenses		(324,514	)		(4,633	)		(329,147	)
Joint venture net (loss) income	$	(12,350	)	$	1,052		$	(11,298	)
Our share of net (loss) income	$	(7,189	)	$	526		$	(6,663	)

	For The Year Ended October 31, 2016
(Dollars in thousands)	Homebuilding			Land Development			Total
Revenues	$	141,418		$	6,299		$	147,717
Cost of sales and expenses		(159,431	)		(6,103	)		(165,534	)
Joint venture net (loss) income	$	(18,013	)	$	196		$	(17,817	)
Our share of net (loss) income	$	(4,424	)	$	98		$	(4,326	)

	For The Year Ended October 31, 2015
(Dollars in thousands)	Homebuilding			Land Development			Total
Revenues	$	122,192		$	6,782		$	128,974
Cost of sales and expenses		(125,652	)		(6,518	)		(132,170	)
Joint venture net (loss) income	$	(3,460	)	$	264		$	(3,196	)
Our share of net income	$	4,087		$	132		$	4,219

Note 21 - Fair Value of Financial Instruments (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

(In thousands)	Fair Value Hierarchy	Fair Value at October 31, 2017			Fair Value at October 31, 2016

Mortgage loans held for sale (1)	Level 2	$	132,424		$	165,077
Interest rate lock commitments	Level 2		(14	)		(80	)
Forward contracts	Level 2		15			86
Total		$	132,425		$	165,083

Fair Value, Option, Quantitative Disclosures [Table Text Block]

	Year Ended October 31, 2017
(In thousands)	Mortgage Loans Held for Sale		Interest Rate Lock Commitments			Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$	4,256	$	(14	)	$	15

	Year Ended October 31, 2016
(In thousands)	Mortgage Loans Held for Sale		Interest Rate Lock Commitments			Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$	4,711	$	(73	)	$	(422	)

	Year Ended October 31, 2015
(In thousands)	Mortgage Loans Held for Sale			Interest Rate Lock Commitments			Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$	(284	)	$	(22	)	$	829

Fair Value Measurements, Nonrecurring [Table Text Block]

	Year Ended
	October 31, 2017
(In thousands)	Fair Value Hierarchy	Pre- Impairment Amount		Total Losses			Fair Value

Sold and unsold homes and lots under development	Level 3	$	30,022	$	(11,658	)	$	18,364
Land and land options held for future development or sale	Level 3	$	22,850	$	(3,403	)	$	19,447

	Year Ended
	October 31, 2016
(In thousands)	Fair Value Hierarchy	Pre- Impairment Amount		Total Losses			Fair Value

Sold and unsold homes and lots under development	Level 3	$	61,584	$	(19,006	)	$	42,578
Land and land options held for future development or sale	Level 3	$	26,783	$	(5,466	)	$	21,317

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

+ References + Details

Note 22 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors (Tables)

12 Months Ended

Oct. 31, 2017

Condensed Balance Sheet [Table Text Block]

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Nonguarantor Subsidiaries		Eliminations			Consolidated
Assets:
Homebuilding	$	-		$	389,456		$	949,032		$	400,297	$	-		$	1,738,785
Financial services								19,001			143,112					162,113
Intercompany receivable					1,046,796						25,580		(1,072,376	)		-
Investments in and amounts due from consolidated subsidiaries								376,964					(376,964	)		-
Total assets	$	-		$	1,436,252		$	1,344,997		$	568,989	$	(1,449,340	)	$	1,900,898
Liabilities and equity:
Homebuilding, excluding Notes payable and term loan and Revolving credit facilit y	$	740		$	236		$	467,613		$	68,865	$	-		$	537,454
Financial services								19,160			122,754					141,914
Income taxes (receivable) payable		(2	)					2,229								2,227
Notes payable and term loan and Revolving credit facilit y					1,677,891			1,377			406					1,679,674
Intercompany payable		148,385						923,994					(1,072,379	)		-
Amounts due to consolidated subsidiaries		311,248			37,175								(348,423	)		-
Stockholders ’ (deficit) equity		(460,371	)		(279,050	)		(69,376	)		376,964		(28,538	)		(460,371	)
Total liabilities and equity	$	-		$	1,436,252		$	1,344,997		$	568,989	$	(1,449,340	)	$	1,900,898

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminations			Consolidated
Assets:
Homebuilding	$	-		$	271,216		$	1,194,267	$	408,610	$	-		$	1,874,093
Financial services								13,453		183,777					197,230
Income taxes receivable		115,940			(58,597	)		226,258		32					283,633
Intercompany receivable					1,227,334					88,112		(1,315,446	)		-
Investments in and amounts due from consolidated subsidiaries					4,914			437,628				(442,542	)		-
Total assets	$	115,940		$	1,444,867		$	1,871,606	$	680,531	$	(1,757,988	)	$	2,354,956
Liabilities and equity:
Homebuilding, excluding Notes payable and term loan and Revolving credit facility	$	3,506		$	1,118		$	565,163	$	83,476	$	-		$	653,263
Financial services								13,338		159,107					172,445
Notes payable and term loan and Revolving credit facility					1,652,357			5,084		317					1,657,758
Intercompany payable		157,993						1,157,453				(1,315,446	)		-
Amounts due to consolidated subsidiaries		82,951										(82,951	)		-
Stockholders ’ (deficit) equity		(128,510	)		(208,608	)		130,568		437,631		(359,591	)		(128,510	)
Total liabilities and equity	$	115,940		$	1,444,867		$	1,871,606	$	680,531	$	(1,757,988	)	$	2,354,956

Condensed Income Statement [Table Text Block]

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Homebuilding	$	-		$	-		$	2,027,485		$	365,437		$	-		$	2,392,922
Financial services								10,910			47,833						58,743
Intercompany charges					88,601									(88,601	)		-
Total revenues		-			88,601			2,038,395			413,270			(88,601	)		2,451,665
Expenses:
Homebuilding		(3,135	)		140,696			1,946,395			338,706						2,422,662
Financial services		20						6,975			25,351						32,346
Intercompany charges								88,601						(88,601	)		-
Total expenses		(3,115	)		140,696			2,041,971			364,057			(88,601	)		2,455,008
Loss on extinguishment of debt					(34,854	)											(34,854	)
Income (loss) from unconsolidated joint ventures								142			(7,189	)					(7,047	)
(Loss) income before income taxes		3,115			(86,949	)		(3,434	)		42,024			-			(45,244	)
State and federal income tax (benefit) provision		107,011			(58,596	)		238,502			32						286,949
Equity in (loss) income from subsidiaries		(228,297	)		(42,089	)		41,992						228,394			-
Net (loss) income	$	(332,193	)	$	(70,442	)	$	(199,944	)	$	41,992		$	228,394		$	(332,193	)

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Homebuilding	$	-		$	-		$	2,232,906		$	446,724		$	-		$	2,679,630
Financial services								11,038			61,579						72,617
Intercompany charges					112,207									(112,207	)		-
Total revenues		-			112,207			2,243,944			508,303			(112,207	)		2,752,247
Expenses:
Homebuilding		1,688			136,796			2,147,123			419,514						2,705,121
Financial services		16						7,387			29,741						37,144
Intercompany charges								112,169			38			(112,207	)		-
Total expenses		1,704			136,796			2,266,679			449,293			(112,207	)		2,742,265
Loss on extinguishment of debt					(3,200	)											(3,200	)
Income (loss) from unconsolidated joint ventures								78			(4,424	)					(4,346	)
(Loss) income before income taxes		(1,704	)		(27,789	)		(22,657	)		54,586			-			2,436
State and federal income tax (benefit) provision		(9,333	)		(30,615	)		45,213			(10	)					5,255
Equity in (loss) income from subsidiaries		(10,448	)		3,901			54,596						(48,049	)		-
Net (loss) income	$	(2,819	)	$	6,727		$	(13,274	)	$	54,596		$	(48,049	)	$	(2,819	)

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Homebuilding	$	-		$	-		$	1,778,700		$	313,115		$	-		$	2,091,815
Financial services								8,685			47,980						56,665
Intercompany charges					124,361									(124,361	)		-
Total revenues		-			124,361			1,787,385			361,095			(124,361	)		2,148,480
Expenses:
Homebuilding		5,125			155,773			1,686,726			294,818						2,142,442
Financial services		105						6,490			25,377						31,972
Intercompany charges								124,360			1			(124,361	)		-
Total expenses		5,230			155,773			1,817,576			320,196			(124,361	)		2,174,414
Income from unconsolidated joint ventures								82			4,087						4,169
(Loss) income before income taxes		(5,230	)		(31,412	)		(30,109	)		44,986			-			(21,765	)
State and federal income tax (benefit) provision		(10,985	)		(30,486	)		35,808			(2	)					(5,665	)
Equity in (loss) income from subsidiaries		(21,855	)		12,915			44,988						(36,048	)		-
Net (loss) income	$	(16,100	)	$	11,989		$	(20,929	)	$	44,988		$	(36,048	)	$	(16,100	)

Condensed Cash Flow Statement [Table Text Block]

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(332,193	)	$	(70,442	)	$	(199,944	)	$	41,992		$	228,394		$	(332,193	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities		113,504			1,339			796,416			(53,119	)		(228,394	)		629,746
Net cash (used in) provided by operating activities		(218,689	)		(69,103	)		596,472			(11,127	)		-			297,553
Cash flows from investing activities:
Proceeds from sale of property and assets								245			25						270
Purchase of property, equipment and other fixed assets and acquisitions								(6,478	)								(6,478	)
Increase in restricted cash related to mortgage company											2,555						2,555
Decrease in restricted cash related to letters of credit					(3	)											(3	)
Investments in and advances to unconsolidated joint ventures					(521	)		(13,407	)		(22,875	)					(36,803	)
Distributions of capital from unconsolidated joint ventures								45			13,259						13,304
Intercompany investing activities					222,627									(222,627	)		-
Net cash provided by (used in) investing activities		-			222,103			(19,595	)		(7,036	)		(222,627	)		(27,155	)
Cash flows from financing activities:
Net payments from mortgages and notes								(15,907	)		(3,286	)					(19,193	)
Net payments from model sale leaseback financing programs								(12,973	)		(5,555	)					(18,528	)
Net proceeds from land bank financing programs								(42,652	)		85						(42,567	)
Net proceeds from senior secured notes					840,000												840,000
Payments related to senior notes, senior exchangeable notes and senior amortizing notes					(861,976	)											(861,976	)
Net proceeds related to mortgage warehouse lines of credit											(31,023	)					(31,023	)
Deferred financing costs from land bank financing program and note issuance					(12,836	)		(1,462	)		(258	)					(14,556	)
Intercompany financing activities – net		218,689						(503,848	)		62,532			222,627			-
Net cash provided by (used in) financing activities		218,689			(34,812	)		(576,842	)		22,495			222,627			(147,843	)
Net increase in cash		-			118,188			35			4,332			-			122,555
Cash and cash equivalents balance, beginning of period		-			261,553			(395	)		85,607			-			346,765
Cash and cash equivalents balance, end of period	$	-		$	379,741		$	(360	)	$	89,939		$	-		$	469,320

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(2,819	)	$	6,727		$	(13,274	)	$	54,596		$	(48,049	)	$	(2,819	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities		15,059			(26,032	)		353,149			259			48,049			390,484
Net cash provided by (used in) operating activities		12,240			(19,305	)		339,875			54,855			-			387,665
Cash flows from investing activities:
Proceeds from sale of property and assets								685			79						764
Purchase of property, equipment and other fixed assets and acquisitions								(7,977	)		(30	)					(8,007	)
Decrease in restricted cash related to mortgage company											2,034						2,034
Decrease in restricted cash related to letters of credit					872												872
Investments in and advances to unconsolidated joint ventures					(290	)		(74	)		(49,541	)					(49,905	)
Distributions of capital from unconsolidated joint ventures											5,264						5,264
Intercompany investing activities					344,479									(344,479	)		-
Net cash (used in) provided by investing activities		-			345,061			(7,366	)		(42,194	)		(344,479	)		(48,978	)
Cash flows from financing activities:
Net payments from mortgages and notes								(60,535	)		(476	)					(61,011	)
Net payments from model sale leaseback financing programs								(14,004	)		(3,134	)					(17,138	)
Net proceeds from land bank financing programs								53,654			11,980						65,634
Borrowings from revolving credit facility					5,000												5,000
Proceeds from senior secured term loan facility					75,000												75,000
Net proceeds from senior secured notes					71,250												71,250
Payments related to senior notes, senior exchangeable notes and senior amortizing notes					(409,646	)											(409,646	)
Net proceeds related to mortgage warehouse lines of credit											36,713						36,713
Deferred financing costs from land bank financing program and note issuance					(5,125	)		(4,812	)		(1,532	)					(11,469	)
Intercompany financing activities – net		(12,240	)					(302,407	)		(29,832	)		344,479			-
Net cash (used in) provided by financing activities		(12,240	)		(263,521	)		(328,104	)		13,719			344,479			(245,667	)
Net increase in cash		-			62,235			4,405			26,380			-			93,020
Cash and cash equivalents balance, beginning of period		-			199,318			(4,800	)		59,227			-			253,745
Cash and cash equivalents balance, end of period	$	-		$	261,553		$	(395	)	$	85,607		$	-		$	346,765

(In thousands)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(16,100	)	$	11,989		$	(20,929	)	$	44,988		$	(36,048	)	$	(16,100	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities		122,264			110,820			(456,704	)		(116,863	)		36,048			(304,435	)
Net cash (used in) provided by operating activities		106,164			122,809			(477,633	)		(71,875	)		-			(320,535	)
Cash flows from investing activities:
Proceeds from sale of property and assets								1,556			17						1,573
Purchase of property, equipment and other fixed assets and acquisitions								(2,054	)								(2,054	)
Decrease in restricted cash related to mortgage company											1,555						1,555
Decrease in restricted cash related to letters of credit					2,993												2,993
Investments in and advances to unconsolidated joint ventures					16			(114	)		(18,609	)					(18,707	)
Distributions of capital from unconsolidated joint ventures					315			646			16,151						17,112
Intercompany investing activities					(313,174	)								313,174			-
Net cash provided by (used in) investing activities		-			(309,850	)		34			(886	)		313,174			2,472
Cash flows from financing activities:
Net proceeds from mortgages and notes								27,881			11,502						39,383
Net proceeds from model sale leaseback financing programs								17,117			5,867						22,984
Net payments from land bank financing programs								(6,198	)		(1,147	)					(7,345	)
Proceeds from senior notes					250,000												250,000
Payments related to senior notes and senior amortizing notes					(65,053	)											(65,053	)
Borrowings from revolving credit facility					47,000												47,000
Net proceeds related to mortgage warehouse lines of credit											31,956						31,956
Deferred financing costs from land bank financing programs and note issuances					(5,096	)		(2,732	)		(1,187	)					(9,015	)
Intercompany financing activities		(106,164	)					441,457			(22,119	)		(313,174	)		-
Net cash provided by (used in) financing activities		(106,164	)		226,851			477,525			24,872			(313,174	)		309,910
Net (decrease) increase in cash		-			39,810			(74	)		(47,889	)		-			(8,153	)
Cash and cash equivalents balance, beginning of period		-			159,508			(4,726	)		107,116			-			261,898
Cash and cash equivalents balance, end of period	$	-		$	199,318		$	(4,800	)	$	59,227		$	-		$	253,745

Note 23 - Unaudited Summarized Consolidated Quarterly Information (Tables)

12 Months Ended

Oct. 31, 2017

Quarterly Financial Information [Table Text Block]

	Three Months Ended
(In thousands, except per share data)	October 31, 2017		July 31, 2017			April 30, 2017			January 31, 2017
Revenues	$	721,686	$	592,035		$	585,935		$	552,009
Expenses		703,964		591,872			586,877			554,482
Inventory impairment loss and land option write-offs		8,479		4,197			1,953			3,184
(Loss) gain on extinguishment of debt		-		(42,258	)		(242	)		7,646
Income (loss) from unconsolidated joint ventures		3,062		(3,881	)		(4,562	)		(1,666	)
Income (loss) before income taxes		12,305		(50,173	)		(7,699	)		323
State and federal income tax provision (benefit)		464		287,036			(1,017	)		466
Net income (loss)	$	11,841	$	(337,209	)	$	(6,682	)	$	(143	)
Per share data:
Basic:
Income (loss) per common share	$	0.08	$	(2.28	)	$	(0.05	)	$	(0.00	)
Weighted-average number of common shares outstanding		147,905		147,748			147,558			147,535
Assuming dilution:
Income (loss) per common share	$	0.08	$	(2.28	)	$	(0.05	)	$	(0.00	)
Weighted-average number of common shares outstanding		160,548		147,748			147,558			147,535

	Three Months Ended
(In thousands, except per share data)	October 31, 2016		July 31, 2016			April 30, 2016			January 31, 2016
Revenues	$	805,069	$	716,850		$	654,723		$	575,605
Expenses		760,171		711,791			661,312			575,638
Inventory impairment loss and land option write-offs		10,438		1,565			9,669			11,681
Loss on extinguishment of debt		3,200		-			-			-
Income (loss) from unconsolidated joint ventures		881		(2,401	)		(1,346	)		(1,480	)
Income (loss) before income taxes		32,141		1,093			(17,604	)		(13,194	)
State and federal income tax provision (benefit)		9,852		1,567			(9,143	)		2,979
Net income (loss)	$	22,289	$	(474	)	$	(8,461	)	$	(16,173	)
Per share data:
Basic:
Income (loss) per common share	$	0.14	$	(0.00	)	$	(0.06	)	$	(0.11	)
Weighted-average number of common shares outstanding		147,521		147,412			147,334			147,139
Assuming dilution:
Income (loss) per common share	$	0.14	$	(0.00	)	$	(0.06	)	$	(0.11	)
Weighted-average number of common shares outstanding		160,590		147,412			147,334			147,139

Note 1 - Basis of Presentation (Details Textual) - October 31, 2016 [Member] $ in Millions	12 Months Ended
	Oct. 31, 2017 USD ($)
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Nonrecourse Mortgages Secured by Inventory, Liabilities from Inventory not Owned and Notes Payable and Term Loan [Member]
Prior Period Reclassification Adjustment	$ 24.5
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Nonrecourse Mortgages Secured by Inventory [Member]
Prior Period Reclassification Adjustment	1.3
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Liabilities from Inventory not Owned [Member]
Prior Period Reclassification Adjustment	3.0
Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Notes Payable and Term Loan [Member]
Prior Period Reclassification Adjustment	$ 20.2

Note 2 - Business (Details Textual)	12 Months Ended
Note 2 - Business (Details Textual)	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Number of Communities	130
Homebuilding [Member]
Number of Reportable Segments	6
Homebuilding [Member] \| Segment Concentration Risk [Member] \| Sales Revenue, Net [Member]
Concentration Risk, Percentage	98.00%	97.00%	97.00%

Note 3 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands	12 Months Ended			24 Months Ended
	Oct. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)	Oct. 31, 2017 USD ($)
Cash Equivalents, at Carrying Value	$ 13,300	$ 9,400		$ 13,300
Number of Previously Mothballed Communities Sold During the Period	5
Number of Mothballed Communities Reactivated	2
Number of Communities Mothballed	22	29		22
Inventory Real Estate Mothballed Communities	$ 36,700	$ 74,400		$ 36,700
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges	214,100	296,300		214,100
Inventory, Land Held-for-sale	23,600	48,700		23,600
General Liability Insurance Deductible	20,000	20,000	$ 20,000	20,000
Bodily Injury Insurance Deductible	250	250	250	250
Bodily Injury Insurance Limit	5,000	5,000	5,000	5,000
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims	21,000	21,000		21,000
Real Estate Inventory Expense Not Eligible for Capitalization	97,304	90,967	91,835
Advertising Expense	17,900	21,400	21,000
Allowance for Doubtful Accounts Receivable	7,300	7,600		$ 7,300
Allowance for Doubtful Accounts Receivable, Recoveries	200	800
Allowance for Doubtful Accounts Receivable, Write-offs	100	200
Provision for Doubtful Accounts	$ 1,000
Senior Exchangeable Note Units [Member]
Debt Instrument, Interest Rate, Stated Percentage	6.00%			6.00%
Joint Venture Investments [Member]
Equity Method Investment, Other than Temporary Impairment	$ 2,800	0	0
Qualifying Assets Not Exceeding Debt [Member]
Real Estate Inventory Expense Not Eligible for Capitalization	69,100	50,400	77,600
Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member]
Real Estate Inventory Expense Not Eligible for Capitalization	$ 28,200	40,600	$ 14,200
Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member]
Joint Venture Voting Interest Percentage	50.00%			50.00%
Property, Plant and Equipment, Useful Life	40 years
Homebuilding [Member]
Liabilities from Inventory Real Estate Not Owned	$ 91,101	150,179		$ 91,101
Homebuilding [Member] \| Real Estate Inventory [Member] \| Minimum [Member]
Fair Value Inputs, Discount Rate				16.80%
Homebuilding [Member] \| Real Estate Inventory [Member] \| Maximum [Member]
Fair Value Inputs, Discount Rate				19.80%
Homebuilding [Member] \| Model Sale Leaseback Financing Arrangements [Member]
Inventory Real Estate, Other Options	58,500	79,200		$ 58,500
Liabilities from Inventory Real Estate Not Owned	51,800	69,700		51,800
Homebuilding [Member] \| Land Banking Arrangement [Member]
Inventory Real Estate, Other Options	66,300	129,500		66,300
Liabilities from Inventory Real Estate Not Owned	$ 39,300	$ 80,500		$ 39,300

Note 3 - Summary of Significant Accounting Policies - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($)
$ in Thousands

12 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Oct. 31, 2015

Interest capitalized at beginning of year

$ 96,688

^[1]

$ 123,898

^[1]

$ 109,158

Plus interest incurred(1)

^[2]

160,203

166,824

166,188

Less cost of sales interest expensed

88,536

92,391

59,613

Less other interest expensed(2)(3)

^[3],[4]

97,304

90,967

91,835

Less interest contributed to unconsolidated joint venture(4)

^[5]

10,676

Interest capitalized at end of year(5)

^[1]

$ 71,051

$ 96,688

$ 123,898

[1]	Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.
[2]	Data does not include interest incurred by our mortgage and finance subsidiaries.
[3]	Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows:
[4]	Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $69.1 million, $50.4 million and $77.6 million for the years ended October 31, 2017, 2016 and 2015, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $28.2 million, $40.6 million and $14.2 million for the years ended October 31, 2017, 2016 and 2015.
[5]	Represents capitalized interest which was included as part of the assets contributed to the joint venture the Company entered into in November 2015, as discussed in Note 20. There was no impact to the Consolidated Statement of Operations as a result of this transaction.

Note 3 - Summary of Significant Accounting Policies - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Other interest expensed	$ 97,304	$ 90,967	$ 91,835
Interest paid by our mortgage and finance subsidiaries	1,944	2,866	2,050
(Increase) decrease in accrued interest	(9,412)	7,963	(8,166)
Cash paid for interest, net of capitalized interest	$ 89,836	$ 101,796	$ 85,719

Note 4 - Leases (Details Textual) - USD ($) $ in Millions	12 Months Ended
Note 4 - Leases (Details Textual) - USD ($) $ in Millions	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Operating Leases, Rent Expense	$ 10.8	$ 12.8	$ 11.6
Minimum [Member]
Lessee, Operating Lease, Term of Contract	3 years
Minimum [Member] \| Model Homes [Member]
Lessee, Operating Lease, Term of Contract	1 year
Maximum [Member]
Lessee, Operating Lease, Term of Contract	5 years
Maximum [Member] \| Model Homes [Member]
Lessee, Operating Lease, Term of Contract	3 years

Note 4 - Leases - Future Lease Payments (Details) $ in Thousands	Oct. 31, 2017 USD ($)
2018	$ 8,139
2019	7,882
2020	5,354
2021	2,915
2022	2,434
Thereafter	4,342
Total	$ 31,066

Note 5 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Property, Plant and Equipment, Net	$ 52,919	$ 50,332
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	69,342	$ 69,715
Corporate Headquarters Building [Member]
Property, Plant and Equipment, Net	34,700
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	26,400
Land [Member] \| Corporate Headquarters Building [Member]
Property, Plant and Equipment, Net	1,000
Building [Member] \| Corporate Headquarters Building [Member]
Property, Plant and Equipment, Net	$ 60,100

Note 5 - Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Property, plant and equipment, gross	$ 122,261	$ 120,047
Less accumulated depreciation	69,342	69,715
Total	52,919	50,332
Land and Land Improvements [Member]
Property, plant and equipment, gross	2,625	2,398
Building [Member]
Property, plant and equipment, gross	69,279	67,860
Building Improvements [Member]
Property, plant and equipment, gross	9,458	8,231
Furniture and Fixtures [Member]
Property, plant and equipment, gross	5,571	5,788
Equipment, Including Capitalized Software [Member]
Property, plant and equipment, gross	$ 35,328	$ 35,770

Note 6 - Restricted Cash and Deposits (Details Textual) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Restricted Cash and Cash Equivalents	$ 24,400	$ 22,900
Homebuilding [Member]
Restricted Cash and Cash Equivalents	2,077	3,914
Customer Deposits [Member] \| Homebuilding [Member]
Restricted Cash and Cash Equivalents	400	2,200
Customer Deposits [Member] \| Financial Services [Member]
Restricted Cash and Cash Equivalents	20,000	15,100
Mortgage Warehouse Lines of Credit [Member]
Restricted Cash and Cash Equivalents	$ 2,300	$ 3,900

Note 7 - Mortgage Loans Held for Sale (Details Textual) $ in Millions	Oct. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)
Loans Pledged as Collateral	$ 119.6	$ 147.4
Number of Loans Reserved For	45	130

Note 7 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Loan origination reserves, beginning of period	$ 8,137	$ 8,025
Provisions for losses during the period	165	261
Adjustments to pre-existing provisions for losses from changes in estimates	(4,571)	48
Payments/settlements	(573)	(197)
Loan origination reserves, end of period	$ 3,158	$ 8,137

Note 8 - Mortgages and Notes Payable (Details Textual) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2013	Oct. 31, 2017	Oct. 31, 2016
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months		$ 56,002
Long-term Debt, Maturities, Repayments of Principal in Year Two		207,546
Long-term Debt, Maturities, Repayments of Principal in Year Three		235,961
Long-term Debt, Maturities, Repayments of Principal in Year Four		75,000
Long-term Debt, Maturities, Repayments of Principal in Year Five		635,000
Long-term Debt, Maturities, Repayments of Principal after Year Five		400,000
Letter of Credit [Member]
Letters of Credit Outstanding, Amount		$ 1,700	$ 1,700
Citi Bank [Member] \| Revolving Credit Facility [Member]
Debt Instrument, Term	5 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 75,000
Debt Instrument Basis Spread on Variable Rate Number of Business Days Prior to First Day of Interest Period Spread Determined		2 days
Long-term Line of Credit		$ 52,000	52,000
Letters of Credit Outstanding, Amount		14,600	17,900
JP Morgan Chase Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity		50,000
Warehouse Agreement Borrowings		$ 41,500	44,100
JP Morgan Chase Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument Variable Rate Basis Adjusted London Interbank Offered Rate LIBOR		1.24%
JP Morgan Chase Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate		2.50%
JP Morgan Chase Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate		2.63%
Customers Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 50,000
Warehouse Agreement Borrowings		$ 40,700	38,800
Customers Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate		2.50%
Customers Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate		5.25%
Homebuilding [Member]
Long-term Line of Credit		$ 52,000	52,000
Nonrecourse Mortgages Secured By Inventory [Member] \| Mortgages [Member] \| Homebuilding [Member]
Secured Debt		64,512	82,115
Debt Instrument, Collateral Amount		$ 157,800	$ 201,800
Debt, Weighted Average Interest Rate		5.30%	4.90%
Nonrecourse Mortgages Secured by Operating Properties [Member] \| Mortgages [Member] \| Corporate, Non-Segment [Member]
Secured Debt		$ 13,000	$ 14,300
Debt, Weighted Average Interest Rate		8.90%	8.80%
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months		$ 1,400
Long-term Debt, Maturities, Repayments of Principal in Year Two		1,500
Long-term Debt, Maturities, Repayments of Principal in Year Three		1,700
Long-term Debt, Maturities, Repayments of Principal in Year Four		1,800
Long-term Debt, Maturities, Repayments of Principal in Year Five		2,000
Long-term Debt, Maturities, Repayments of Principal after Year Five		4,600
Nonrecourse Mortgages Secured by Operating Properties [Member] \| Mortgages [Member] \| Homebuilding [Member]
Secured Debt		$ 13,012	$ 14,312
8.0% Senior Notes Due 2019 [Member]
Debt Instrument, Interest Rate, Stated Percentage		8.00%
The 7.25% 2020 Notes, 9.125% 2020 Notes, 2018 10.0% Second Lien Notes and Term Loan [Member] \| Senior Secured Notes [Member] \| Letter of Credit [Member] \| Restricted Cash [Member]
Cash Collateral for Borrowed Securities		$ 1,700	1,700
Comerica Master Repurchase Agreement [Member]
Line of Credit Facility, Maximum Borrowing Capacity		50,000
Warehouse Agreement Borrowings		$ 32,400	29,800
Comerica Master Repurchase Agreement [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		2.50%
Debt Instrument Variable Rate Basis Floor Rate		0.25%
Credit Suisse Master Repurchase Agreement [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 50,000
Warehouse Agreement Borrowings		$ 0	$ 32,900

Note 9 - Senior Notes and Term Loan (Details Textual)

1 Months Ended

3 Months Ended

12 Months Ended

Jul. 31, 2017

Jul. 27, 2017

USD ($)

Sep. 08, 2016

USD ($)

May 15, 2016

USD ($)

Jan. 15, 2016

USD ($)

Jun. 01, 2013

USD ($)

Nov. 01, 2011

USD ($)

Nov. 30, 2016

USD ($)

Sep. 30, 2016

USD ($)

Oct. 31, 2017

USD ($)

Jul. 31, 2017

USD ($)

Apr. 30, 2017

USD ($)

Jan. 31, 2017

USD ($)

Oct. 31, 2016

USD ($)

Jul. 31, 2016

USD ($)

Apr. 30, 2016

USD ($)

Jan. 31, 2016

USD ($)

Oct. 31, 2017

USD ($)

Oct. 31, 2016

USD ($)

Oct. 31, 2015

USD ($)

Nov. 15, 2017

USD ($)

Oct. 11, 2016

USD ($)

Oct. 02, 2012

USD ($)

$ / shares

Interest Payable

$ 41,800,000

$ 32,400,000

$ 41,800,000

$ 32,400,000

Debt Issuance Costs, Net

$ 16,100,000

Debt Covenant Fixed Charge Coverage Ratio Minimum

Repayments of Senior Debt

$ (42,258,000)

$ (242,000)

$ 7,646,000

3,200,000

$ (34,854,000)

(3,200,000)

861,976,000

409,646,000

$ 65,053,000

Proceeds from Issuance of Debt

$ 146,300,000

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures

115,090,000

$ 100,502,000

$ 115,090,000

$ 100,502,000

Series A Preferred Stock [Member]

Preferred Stock, Dividend Rate, Percentage

7.625%

Senior Secured Notes [Member] | Real Estate Inventory [Member] | Term Loan Facility [Member]

Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member] | Term Loan Facility [Member]

419,900,000

$ 419,900,000

Senior Secured Notes [Member] | Restricted Cash [Member] | Term Loan Facility [Member]

381,100,000

Senior Notes and Senior Exchangeable Note Units [Member]

1,700,000

Debt Instrument, Repurchase Amount

$ 30,800,000

30,800,000

9.5 % Senior Secured Notes [Member]

$ 7,800,000

9.50%

Senior Secured Term Loan [Member]

$ (400,000)

Debt Instrument, Voluntary Prepayment Premium, Aggregate Principal Amount, Percentage

1.00%

Senior Secured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument, Basis Spread on Variable Rate

7.00%

Senior Secured Term Loan [Member] | Base Rate [Member]

Debt Instrument, Basis Spread on Variable Rate

6.00%

Senior Amortizing Notes [Member]

Debt Instrument, Periodic Payment, Interest

$ 39.83

$ 30

The 5.0% 2021 Notes [Member] | Senior Secured Notes [Member]

5.00%

^[1],[2]

5.00%

^[1],[2]

5.00%

^[1],[2]

5.00%

^[1],[2]

The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member]

$ 141,800,000

2.00%

^[1],[2]

2.00%

^[1],[2]

2.00%

^[1],[2]

2.00%

^[1],[2]

$ 53,200,000

The 9.50% 2020 Notes [Member]

100.00%

The 9.50% 2020 Notes [Member] | Senior Secured Notes [Member]

9.50%

^[1],[2]

9.50%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member]

$ 75,000,000

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

^[1],[2]

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member]

$ 440,000,000

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member]

100.00%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member]

105.00%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member]

102.50%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | Debt Instrument, Redemption, Period One [Member]

100.00%

Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed

110.00%

35.00%

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member]

^[1],[2]

10.50%

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member]

$ 400,000,000

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member]

100.00%

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member]

105.25%

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member]

102.625%

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member] | Debt Instrument, Redemption, Period One [Member]

100.00%

Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed

110.50%

35.00%

The 7.0% 2019 Notes [Member] | Senior Notes [Member]

7.00%

The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member]

$ 17,500,000

The 7.0% 2019 Notes [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Four [Member]

101.75%

The 7.0% 2019 Notes [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

100.00%

8.0% Senior Notes Due 2019 [Member]

^[1],[2]

7.00%

8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

8.00%

8.00%

$ 14,000,000

8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | Debt Instrument, Redemption, Period One [Member]

100.00%

The 6.00% Exchangeable Note Units [Member] | Senior Exchangeable Note Units [Member]

100.00%

6.00%

Debt Instrument, Exchangeable, Number of Units Repurchased | shares

$ 6,900,000

6,925

20,823

6,925

Note Units Initial Principal Amount Exchangeable Note | $ / shares

$ 100,000,000

Note Units Number

100,000

Note Units Stated Amount

$ 1,000

$ 768.51

Note Units Principal Amount at Maturity | $ / shares

1,000

Note Units Initial Principal Amount Senior Amortizing Note | $ / shares

$ 231.49

Debt Instrument, Interest Rate, Effective Percentage

5.17%

Shares Issued Upon Conversion of Convertible Debt | shares

185.5288

Share Price for Exchangeable Note Conversion | $ / shares

$ 5.39

Senior Exchangeable Notes Exchanged for Class A Common Stock | shares

18,305

Debt Conversion, Converted Instrument, Shares Issued | shares

3,400,000

Exchangeable Note Unit Face Amount

$ 6,900,000

$ 20,600,000

The 7.25% 2020 Notes [Member] | Senior Secured Notes [Member]

7.25%

^[1],[2]

7.25%

^[1],[2]

7.25%

^[1],[2]

7.25%

^[1],[2]

The 7.25% 2020 Notes [Member] | Senior Secured Notes [Member] | Scenario, Forecast [Member]

$ 575,912,000

The 9.125% 2020 Notes [Member] | Senior Secured Notes [Member]

$ 1,088,000

9.125%

^[1],[2]

9.125%

^[1],[2]

9.125%

^[1],[2]

9.125%

^[1],[2]

Extinguishment of Debt, Amount

$ 87,321,000

$ 75,000,000

The 9.125% 2020 Notes [Member] | Senior Secured Notes [Member] | Scenario, Forecast [Member]

The 10.0% 2018 Notes [Member]

$ 57,679,000

The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member]

10.00%

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

^[1],[2]

$ 75,000,000

The 7.25% 2020 Notes, The 9.125% 2020 Notes, and The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member]

$ 75,000,000

The 6.25% 2016 Notes [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

$ (42,300,000)

Repayments of Senior Debt

6.25%

$ 172,700,000

The 7.5% 2016 Notes [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

Repayments of Senior Debt

7.50%

$ 86,500,000

The 8.625% 2017 Notes [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

Debt Instrument, Redemption, Aggregate Price

8.625%

Long-term Debt, Gross

$ 121,000,000

$ 126,100,000

Term Loan [Member]

9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period One [Member]

$ 75,000,000

9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period Two [Member]

100.00%

9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period Three [Member]

100.00%

9.5% Senior Secured Notes Due 2020 [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member]

35.00%

Additional and Market Whole Amount [Member]

109.50%

The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Secured Group [Member]

1.00%

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures

$ 88,200,000

The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member]

The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Real Estate [Member]

128,900,000

The 11.0% 2017 Amortizing Note [Member] | Senior Amortizing Notes [Member]

$ 84,300,000

Reclassification of Unamortized Debt Issuance Costs from Prepaid Expenses and Other Assets to Notes Payable and Term Loan [Member] | October 31, 2016 [Member]

^[1],[2]

11.00%

Prior Period Reclassification Adjustment

$ 20,200,000

[1]

"Notes payable and term loan" on our Consolidated Balance Sheets as of October 31, 2017 and October 31, 2016 consists of the total senior secured, senior, senior amortizing and senior exchangeable notes and senior secured term loan shown above, as well as accrued interest of $41.8 million and $32.4 million, respectively.

[2]

As discussed in Note 1, we adopted ASU 2015-03 in November 2016. We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal 2017 presentation. As a result, $20.2 million of debt issuance costs at October 31, 2016, were reclassified from prepaids and other assets to a reduction in our senior secured term loan, senior secured, senior, senior amortizing and senior exchangeable notes. Debt issuance costs at October 31, 2017 were $16.1 million.

Note 9 - Senior Notes and Term Loan - Senior Secured, Senior and Senior Subordinated Notes (Details) - USD ($)
$ in Thousands

Oct. 31, 2017

Oct. 31, 2016

Senior Secured Term Loan [Member]

$ 1,609,509

Senior Secured Notes [Member]

^[1],[2]

72,987

$ 72,646

Senior Secured Notes [Member] | The 7.25% 2020 Notes [Member]

^[1],[2]

1,090,636

1,041,089

Senior Secured Notes [Member] | The 10.0% 2018 Notes [Member]

^[1],[2]

569,641

Senior Secured Notes [Member] | The 9.125% 2020 Notes [Member]

^[1],[2]

68,951

Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member]

^[1],[2]

143,337

Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member]

^[1],[2]

74,350

74,140

Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member]

^[1],[2]

53,058

53,022

Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member]

^[1],[2]

133,732

131,998

Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member]

^[1],[2]

434,543

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

^[1],[2]

394,953

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member]

^[1],[2]

366,250

396,148

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member]

^[1],[2]

131,957

148,800

Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member]

^[1],[2]

234,293

247,348

Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member]

^[1],[2]

2,045

6,152

The 10.0% 2018 Notes [Member]

^[1],[2]

$ 53,919

$ 57,298

[1]

[2]

Note 9 - Senior Notes and Term Loan - Senior Secured, Senior and Senior Subordinated Notes (Details) (Parentheticals)

12 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Jul. 27, 2017

Sep. 08, 2016

Nov. 01, 2011

The 9.50% 2020 Notes [Member]

10.00%

Senior Secured Notes [Member] | The 7.25% 2020 Notes [Member]

9.50%

7.25%

^[1],[2]

7.25%

^[1],[2]

7.25%

Senior Secured Notes [Member] | The 10.0% 2018 Notes [Member]

^[1],[2]

Oct. 15, 2020

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

Senior Secured Notes [Member] | The 9.125% 2020 Notes [Member]

^[1],[2]

Oct. 15, 2018

9.125%

^[1],[2]

9.125%

^[1],[2]

9.125%

Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member]

^[1],[2]

Nov. 15, 2020

^[1],[2]

9.50%

Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member]

^[1],[2]

Nov. 15, 2020

2.00%

^[1],[2]

2.00%

^[1],[2]

2.00%

Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member]

^[1],[2]

Nov. 01, 2021

5.00%

^[1],[2]

5.00%

^[1],[2]

5.00%

Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member]

^[1],[2]

Nov. 01, 2021

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member]

^[1],[2]

Jul. 15, 2022

^[1],[2]

10.50%

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member]

^[1],[2]

Jul. 15, 2024

^[1],[2]

7.00%

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member]

^[1],[2]

Jan. 15, 2019

^[1],[2]

8.00%

Senior Amortizing Notes [Member] | The 11.0% 2017 Amortizing Note [Member]

^[1],[2]

Nov. 01, 2019

^[1],[2]

11.00%

Senior Amortizing Notes [Member] | Senior Exchangeable Notes Due 2017 [Member]

^[1],[2]

Dec. 01, 2017

^[1],[2]

Dec. 01, 2017

[1]

[2]

Note 9 - Senior Notes and Term Loan - Future Maturities of Borrowings (Details) $ in Thousands	Oct. 31, 2017 USD ($)
2018	$ 56,002
2019	207,546
2020	235,961
2021	75,000
2022	635,000
Thereafter	400,000
Total	$ 1,609,509

Note 10 - Operating and Reporting Segments (Details Textual) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2017 USD ($)	Jul. 31, 2017 USD ($)	Apr. 30, 2017 USD ($)	Jan. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Jul. 31, 2016 USD ($)	Apr. 30, 2016 USD ($)	Jan. 31, 2016 USD ($)	Oct. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)
Real Estate Inventory Expense Not Eligible for Capitalization									$ 97,304	$ 90,967	$ 91,835
Gain (Loss) on Extinguishment of Debt		$ (42,258)	$ (242)	$ 7,646	$ 3,200				(34,854)	(3,200)
Increase (Decrease) In Construction Defect Reserves	12,500				(9,200)
Other Nonoperating Income (Expense)									(1,518)	(4,874)	(6,003)
Deferred Tax Assets, Net of Valuation Allowance					283,633					283,633
Qualifying Assets Not Exceeding Debt [Member]
Real Estate Inventory Expense Not Eligible for Capitalization									69,100	50,400	77,600
Corporate, Non-Segment [Member]
General and Administrative Expense									59,400	60,100	62,500
Gain (Loss) on Extinguishment of Debt									(34,900)	(3,200)
Increase (Decrease) In Construction Defect Reserves									12,500	(9,200)	(14,400)
Other Nonoperating Income (Expense)									900	800	5,500
Deferred Tax Assets, Net of Valuation Allowance					$ 283,600					283,600
Corporate, Non-Segment [Member] \| Qualifying Assets Not Exceeding Debt [Member]
Real Estate Inventory Expense Not Eligible for Capitalization									$ 69,100	$ 50,400	$ 64,500
Homebuilding [Member]
Number of Reportable Segments									6

Note 10 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Oct. 31, 2017

Jul. 31, 2017

Apr. 30, 2017

Jan. 31, 2017

Oct. 31, 2016

Jul. 31, 2016

Apr. 30, 2016

Jan. 31, 2016

Oct. 31, 2017

Oct. 31, 2016

Oct. 31, 2015

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

$ 721,686

$ 592,035

$ 585,935

$ 552,009

$ 805,069

$ 716,850

$ 654,723

$ 575,605

$ 2,451,665

$ 2,752,247

$ 2,148,480

12,305

(50,173)

(7,699)

323

32,141

1,093

(17,604)

(13,194)

(45,244)

2,436

(21,765)

185,210

182,595

150,382

Net additions to operating properties and equipment

4,249

3,565

3,388

6,478

8,007

2,054

Corporate, Non-Segment [Member]

$ 3,062

$ (3,881)

$ (4,562)

$ (1,666)

$ 881

$ (2,401)

$ (1,346)

$ (1,480)

(7,047)

(4,346)

4,169

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

1,066

141

(115)

^[1]

(174,958)

(105,306)

(118,121)

69,124

50,387

64,545

Net additions to operating properties and equipment

2,999

2,631

2,608

2,066

3,988

871

Homebuilding [Member] | Operating Segments [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

2,391,856

2,679,489

2,091,930

103,317

72,269

71,663

116,716

132,971

86,903

Net additions to operating properties and equipment

1,234

893

733

4,412

3,989

1,183

Homebuilding [Member] | Northeast [Member] | Operating Segments [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

209,509

278,028

189,497

2,300

(3,869)

(7,742)

20,308

19,417

14,150

Net additions to operating properties and equipment

136

442

Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member]

(4,376)

(2,639)

856

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

464,126

458,579

399,500

17,191

17,476

21,431

23,886

23,662

16,268

Net additions to operating properties and equipment

208

Homebuilding [Member] | Midwest [Member] | Operating Segments [Member]

1,180

(27)

4,502

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

199,770

311,322

311,449

(1,151)

(11,416)

14,012

7,799

12,275

10,405

Net additions to operating properties and equipment

858

497

361

3,773

3,180

637

Homebuilding [Member] | Southeast [Member] | Operating Segments [Member]

(1,424)

(1,304)

(105)

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

260,402

260,584

207,662

(6,199)

(17,791)

(6,330)

13,646

16,770

9,552

Net additions to operating properties and equipment

233

227

Homebuilding [Member] | Southwest [Member] | Operating Segments [Member]

837

(1,774)

1,213

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

827,503

1,028,529

823,853

71,540

84,424

67,437

25,278

37,552

26,147

Net additions to operating properties and equipment

104

199

173

Homebuilding [Member] | West [Member] | Operating Segments [Member]

(306)

(64)

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

430,546

342,447

159,969

19,636

3,445

(17,145)

25,799

23,295

10,381

Net additions to operating properties and equipment

Financial Services [Member] | Operating Segments [Member]

(2,958)

1,462

(2,297)

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

58,743

72,617

56,665

26,397

35,473

24,693

^[2]

(630)

(763)

(1,066)

Net additions to operating properties and equipment

$ 30

[1]

Corporate and unallocated for the year ended October 31, 2017 included corporate general and administrative costs of $59.4 million, interest expense of $69.1 million (a component of Other interest on our Consolidated Statements of Operations), loss on extinguishment of debt of $34.9 million, $12.5 million adjustment for construction defect reserves (discussed in Note 16) and $0.9 million of other income and expenses primarily related to interest income, rental income, bond amortization and stock compensation. Corporate and unallocated for the year ended October 31, 2016 included corporate general and administrative costs of $60.1 million, interest expense of $50.4 million (a component of Other interest on our Consolidated Statements of Operations), loss on extinguishment of debt of $3.2 million, $(9.2) million adjustment for construction defect reserves (discussed in Note 16) and $0.8 million of other income and expenses primarily related to bond amortization, stock compensation and rental income. Corporate and unallocated for the year ended October 31, 2015 included corporate general and administrative costs of $62.5 million, interest expense of $64.5 million (a component of Other interest on our Consolidated Statements of Operations), $(14.4) million adjustment for construction defect reserves (discussed in Note 16) and $5.5 million of other income and expenses primarily related to bond amortization, stock compensation and rental income.

[2]

Financial services interest expenses are included in the Financial services lines on the Consolidated Statements of Operations in the respective revenues and expenses sections.

Note 10 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($)
$ in Thousands

Oct. 31, 2017

Oct. 31, 2016

Investments in and advances to unconsolidated joint ventures

$ 1,900,898

$ 2,354,956

115,090

100,502

Corporate, Non-Segment [Member]

Investments in and advances to unconsolidated joint ventures

^[1]

547,554

696,872

935

416

Homebuilding [Member]

Investments in and advances to unconsolidated joint ventures

1,738,785

1,874,093

115,090

100,502

Homebuilding [Member] | Operating Segments [Member]

Investments in and advances to unconsolidated joint ventures

1,191,231

1,460,854

114,155

100,086

Homebuilding [Member] | Northeast [Member] | Operating Segments [Member]

Investments in and advances to unconsolidated joint ventures

180,545

219,363

36,411

28,115

Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member]

Investments in and advances to unconsolidated joint ventures

224,398

292,899

20,873

22,407

Homebuilding [Member] | Midwest [Member] | Operating Segments [Member]

Investments in and advances to unconsolidated joint ventures

84,960

111,596

4,268

5,516

Homebuilding [Member] | Southeast [Member] | Operating Segments [Member]

Investments in and advances to unconsolidated joint ventures

231,644

226,124

36,320

22,876

Homebuilding [Member] | Southwest [Member] | Operating Segments [Member]

Investments in and advances to unconsolidated joint ventures

294,337

341,472

11,832

3,625

Homebuilding [Member] | West [Member] | Operating Segments [Member]

Investments in and advances to unconsolidated joint ventures

175,347

269,400

4,451

17,547

Financial Services [Member]

Financial Services [Member] | Operating Segments [Member]

162,113

197,230

Total current income tax expense (benefit):

$ 162,113

$ 197,230

[1]	Includes $283.6 million of income taxes receivable - including deferred tax assets in fiscal 2016.

Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2016	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Income Tax Expense (Benefit)	$ 464	$ 287,036	$ (1,017)	$ 466	$ 9,852	$ 1,567	$ (9,143)	$ 2,979		$ 286,949	$ 5,255	$ (5,665)
Deferred Tax Assets, Valuation Allowance	918,203				627,943					918,203	627,943
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	12,305	(50,173)	(7,699)	323	32,141	1,093	(17,604)	(13,194)		(45,244)	2,436	(21,765)
Gain (Loss) on Extinguishment of Debt		$ (42,258)	$ (242)	$ 7,646	3,200					(34,854)	$ (3,200)
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Refunds on Previous Taxes Paid, Percent											(114.80%)
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	300				300					300	$ 300
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense										(45)	(2)	(91)
Unrecognized Tax Benefits, Period Increase (Decrease)										(200)
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	1,100				$ 1,100					$ 1,100	1,100
Scenario, Forecast [Member]
Increase in Interest Incurred Per Year, Amount									$ 23,400
Earliest Tax Year [Member]
Open Tax Year										2013
Latest Tax Year [Member]
Open Tax Year										2016
Domestic Tax Authority [Member]
Operating Income (Loss)										$ 0	(4,400)	(3,700)
Income Tax Expense (Benefit)										275,688	2,798	(9,958)
Operating Loss Carryforwards	1,600,000									1,600,000
State and Local Jurisdiction [Member]
Operating Income (Loss)										(18,200)	(16,400)	(12,300)
Income Tax Expense (Benefit)										11,261	$ 2,457	$ 4,293
Operating Loss Carryforwards	2,300,000									2,300,000
Deferred Tax Assets, Valuation Allowance	918,200									918,200
State and Local Jurisdiction [Member] \| Between 2018 and 2022 [Member]
Operating Loss Carryforwards	247,100									247,100
State and Local Jurisdiction [Member] \| Between 2023 and 2027 [Member]
Operating Loss Carryforwards	463,100									463,100
State and Local Jurisdiction [Member] \| Between 2028 and 2032 [Member]
Operating Loss Carryforwards	1,200,000									1,200,000
State and Local Jurisdiction [Member] \| Between 2033 and 2037 [Member]
Operating Loss Carryforwards	$ 348,600									$ 348,600

Note 11 - Income Taxes - Income Taxes Payable (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Deferred		$ (285,578)
Total	2,227	(283,633)
State and Local Jurisdiction [Member]
Current	2,227	1,945
Deferred		(9,890)
Domestic Tax Authority [Member]
Current
Deferred		$ (275,688)

Note 11 - Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Oct. 31, 2017

Jul. 31, 2017

Apr. 30, 2017

Jan. 31, 2017

Oct. 31, 2016

Jul. 31, 2016

Apr. 30, 2016

Jan. 31, 2016

Oct. 31, 2017

Oct. 31, 2016

Oct. 31, 2015

Federal (1)

^[1]

$ (2,796)

$ (1,497)

State (2)

^[2]

1,371

1,200

523

1,371

(1,596)

(974)

Federal

275,688

5,594

(8,461)

State

9,890

1,257

3,770

Total deferred income tax expense (benefit):

285,578

6,851

(4,691)

Total

$ 464

$ 287,036

$ (1,017)

$ 466

$ 9,852

$ 1,567

$ (9,143)

$ 2,979

$ 286,949

$ 5,255

$ (5,665)

[1]	The current federal income tax did not include the use of federal net operating losses for the year ended October 31, 2017. The current federal income tax benefit is net of the use of federal net operating losses totaling $4.4 million and $3.7 million for the years ended October 31, 2016 and 2015, respectively.
[2]	The current state income tax expense (benefit) is net of the use of state net operating losses totaling $18.2 million, $16.4 million and $12.3 million for the years ended October 31, 2017, 2016 and 2015, respectively.

Note 11 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Oct. 31, 2016
Depreciation	$ 246	$ 1,729
Inventory impairment loss	122,584	174,489
Uniform capitalization of overhead	5,766	6,802
Warranty and legal reserves	8,763	13,238
Deferred income	2,341	5,061
Acquisition intangibles	4,420	8,829
Other	20,678	22,862
Joint venture loss	12,028	4,171
Federal net operating losses	549,862	520,117
State net operating losses	172,307	170,014
Total deferred tax assets	948,668	974,422
Debt repurchase income	30,465	60,901
Total deferred tax liabilities	30,465	60,901
Valuation allowance	(918,203)	(627,943)
Net deferred income taxes		285,578
Rent on Abandoned Space [Member]
Other	101	1,006
Provision for Losses [Member]
Other	38,831	34,505
Restricted Stock [Member]
Share based compensation	4,202	4,526
Employee Stock Option [Member]
Share based compensation	$ 6,539	$ 7,073

Note 11 - Income Taxes - Effective Tax Rate (Details)

12 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Oct. 31, 2015

Computed “expected” tax rate

35.00%

State income taxes, net of federal income tax benefit

1.00%

65.40%

(15.60%)

Permanent differences, net

(2.40%)

222.20%

(0.40%)

Deferred tax asset valuation allowance impact

(667.80%)

Tax contingencies

0.30%

3.20%

Adjustments to prior years’ tax accruals(1)

^[1]

(107.20%)

3.80%

Effective tax rate

(634.20%)

215.70%

26.00%

[1]	The adjustments to prior years' tax accruals includes the impact of a federal specified liability loss refund of taxes paid in fiscal year 2002 of (114.8%) for the year ended October 31, 2016.

Note 11 - Income Taxes - Unrecognized Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Unrecognized tax benefit—November 1,	$ 1.1	$ 1.1
Gross increases—tax positions in current period	0.2	0.2
Decrease related to tax positions taken during a prior period
Lapse of statute of limitations	(0.2)	(0.2)
Unrecognized tax benefit—October 31,	$ 1.1	$ 1.1

Note 12 - Reduction of Inventory to Fair Value (Details Textual) $ in Millions	12 Months Ended
	Oct. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)
Number of Communities Evaluated for Impairment	372	413
Number of Communities Performed Detailed Impairment Calculations	12	30
Carrying Value of Communities Tested for Impairment	$ 98.0	$ 125.4
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount By Less Than 20 Percent	2	9
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount by Less than 20 Percent	$ 45.0	$ 43.5
Percentage Undiscounted Cash Flow Exceeds Carrying Amount	20.00%
Impairment of Real Estate	$ 15.1	24.5	$ 7.3
Land Option Write Offs	2.7	8.9	4.7
Homebuilding [Member]
Impairment of Real Estate	15.1	24.5	7.3
Land Option Write Offs	$ 2.7	$ 8.9	$ 4.7
Homebuilding [Member] \| Real Estate Inventory [Member] \| Minimum [Member]
Fair Value Inputs, Discount Rate	18.30%	16.80%	17.30%
Homebuilding [Member] \| Real Estate Inventory [Member] \| Maximum [Member]
Fair Value Inputs, Discount Rate	19.80%	18.80%	19.80%

Note 12 - Reduction of Inventory to Fair Value - Inventory Impairments by Homebuilding Segment (Details)
$ in Millions

12 Months Ended

Oct. 31, 2017

USD ($)

Oct. 31, 2016

USD ($)

Oct. 31, 2015

USD ($)

$ 15.1

$ 24.5

$ 7.3

Homebuilding [Member]

$ 15.1

$ 24.5

$ 7.3

Homebuilding [Member] | Northeast [Member]

^[1]

$ 52.9

$ 88.4

$ 29.4

$ 3.3

$ 9.5

$ 0.8

Homebuilding [Member] | Mid-Atlantic [Member]

^[1]

$ 22.2

$ 33.8

$ 0.9

$ 1.5

$ 0.9

Homebuilding [Member] | Midwest [Member]

^[1]

$ 8.5

$ 2.5

$ 0.2

$ 13.5

$ 1.3

Homebuilding [Member] | Southeast [Member]

^[1]

$ 0.8

$ 43.7

$ 8.4

$ 8.1

$ 1.5

$ 2.5

Homebuilding [Member] | Southwest [Member]

^[1]

$ 18.3

$ 10.9

$ 10.1

Homebuilding [Member] | West [Member]

^[1]

$ 2.0

$ 1.8

Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]

^[1]

$ 3.1

$ 7.5

[1]	Represents carrying value, net of prior period impairments, if any, at the time of recording the applicable period's impairments.

Note 12 - Reduction of Inventory to Fair Value - Write-offs and Lots Walked Away From (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Amount of write-offs	$ 2.7	$ 8.9	$ 4.7
Homebuilding [Member]
Amount of write-offs	2.7	8.9	4.7
Homebuilding [Member] \| Northeast [Member]
Amount of write-offs	0.5	1.6	0.9
Homebuilding [Member] \| Mid-Atlantic [Member]
Amount of write-offs	0.6	0.8	0.2
Homebuilding [Member] \| Midwest [Member]
Amount of write-offs	0.3	1.3	0.6
Homebuilding [Member] \| Southeast [Member]
Amount of write-offs	0.8	1.8	1.3
Homebuilding [Member] \| Southwest [Member]
Amount of write-offs	0.4	3.2	1.4
Homebuilding [Member] \| West [Member]
Amount of write-offs	$ 0.1	$ 0.2	$ 0.3

Note 13 - Per Share Calculations (Details Textual) - shares shares in Millions	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Non Vested Stock and Outstanding Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2.7		0.2
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	10.0	14.6	15.2
Out of the Money Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4.6	7.3	3.0

Note 14 - Capital Stock (Details Textual) $ / shares in Units, $ in Thousands		12 Months Ended
	Jul. 12, 2005 $ / shares shares	Oct. 31, 2017 USD ($) shares	Oct. 31, 2016 USD ($) shares	Oct. 31, 2015 USD ($)	Dec. 05, 2008	Aug. 15, 2008	Aug. 04, 2008	Jul. 03, 2001 shares
Common Stock Dividends Percent of Increase from Class A to Class B		110.00%
Conversion of Stock From Class B to Class A Conversion Ratio		1
Shareholder Ownership Percentage of Increase							50.00%
Preferred Stock, Shares Issued		5,600	5,600
Defined Benefit Plan, Plan Assets, Contributions by Employer \| $		$ 6,800	$ 6,600	$ 6,200
Minimum [Member]
Shareholder Ownership Percentage							5.00%
Common Class A [Member]
Common Stock Voting Rights Votes per Share Number		1
Shareholder Ownership Percentage						4.90%
Number of Rights						1
Shareholders Pre Existing Ownership Percentage					5.00%
Shareholders Current Ownership Percentage					5.00%
Shareholders Ownership Percentage on Transfers					5.00%
Shareholders Ownership Percentage Threshold					5.00%
Stock Repurchase Program, Number of Shares Authorized to be Repurchased								4,000,000
Stock Repurchased During Period, Shares		0
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased		500,000
Common Class B [Member]
Common Stock Voting Rights Votes per Share Number		10
Preferred Class A [Member]
Preferred Stock, Shares Issued	5,600
Preferred Stock, Dividend Rate, Percentage	7.625%
Preferred Stock, Liquidation Preference Per Share \| $ / shares	$ 25,000
Preferred Stock, Depositary Shares, Number of Shares of Preferred Stock in Each Depositary Share	0.001
Payments of Dividends \| $		$ 0	$ 0	$ 0

Note 15 - Stock Plans (Details Textual) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 31, 2017 USD ($) $ / shares shares	Oct. 31, 2017 USD ($) $ / shares shares	Oct. 31, 2016 USD ($) $ / shares shares	Oct. 31, 2015 USD ($) $ / shares shares
Allocated Share-based Compensation Expense \| $		$ 600	$ 2,900	$ 8,800
Allocated Share-based Compensation Expense, Net of Tax \| $			2,300	6,500
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments	4	4
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value \| $		$ 12		$ 15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value \| $			$ 0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit \| $ / shares		$ 1.54
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit \| $ / shares		6.46
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares		1.33	$ 1	$ 1.47
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price \| $ / shares	$ 2.60	$ 2.60	$ 2.55	$ 2.78
Share-based Compensation Arrangement by Share-based Payment Award, Participants Years of Service		15 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period		1,082,333
Share-based Compensation \| $		$ 557	$ 2,921	$ 8,816
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		1,233,700
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	6,174,477	6,174,477	7,239,469
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	7,200,000	7,200,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized \| $	$ 3,500	$ 3,500
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 160 days
Nonemployee Director [Member]
Number of Directors	5	5
Employee Stock Option [Member]
Allocated Share-based Compensation Expense \| $		$ 500	$ 500	$ 2,200
Share-based Compensation Income \| $			1,500
Performance Shares, Including LTIP [Member]
Share-based Compensation, Reverse of Previously Recognized Expense \| $	$ 2,000	2,000	$ 2,100
Restricted Stock [Member]
Allocated Share-based Compensation Expense \| $		$ 2,100
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		366,513	456,070	1,018,558
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period		452,500	33,125	5,811
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested, Number	312,419	312,419	224,326	538,892
Restricted Stock [Member] \| Prior Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		101,218	176,944	97,854
Restricted Stock [Member] \| Participants With Service Requirement [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Participants Age		58 years
Restricted Stock [Member] \| Nonemployee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments	3	3
Share-based Compensation Arrangement by Share-based Payment Award, Post-vesting Holding Period		2 years
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		298,388	356,382	155,433
Restricted Stock [Member] \| Participants Without Service Requirement [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Participants Age		60 years
Awards Other Than Options [Member]
Share-based Compensation \| $		$ 21	$ 4,300	$ 6,500
Target 2016 LTIP Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Previous Period, Net of Forfeited in Current Period		2,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			2,800,000
Market Stock Units [Member]
Share-based Compensation, Reverse of Previously Recognized Expense \| $		$ 1,200
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments	4	4
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		850,000	780,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	2,700,000	2,700,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		50.00%
Share-based Compensation Arrangement By Share-based Compensation Award Fair Value Measurement Period		60 days
Market Stock Units [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		0.00%
Market Stock Units [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		175.00%
Market Stock Units [Member] \| Fiscal Year 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		34,355
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	700,000	700,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Adjustment for Shares Grants in Previous Period		25,000
Market Stock Units [Member] \| Fiscal Year 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		48,032
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	400,000	400,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Adjustment for Shares Grants in Previous Period		200,000
Market Stock Units [Member] \| Two Year [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		1.35%	0.73%	0.74%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		57.93%	56.50%	38.28%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%	0.00%	0.00%
Market Stock Units [Member] \| Two and a Half Year [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		1.43%	0.81%	0.95%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		54.61%	52.77%	42.01%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%	0.00%	0.00%
Market Stock Units [Member] \| Three Year [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		1.49%	0.87%	1.12%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		52.66%	50.34%	45.73%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%	0.00%	0.00%
Market Stock Units [Member] \| Four Year [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		1.63%	1.02%	1.44%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		48.85%	52.36%	59.08%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%	0.00%	0.00%
Market Stock Units [Member] \| Five Year [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		1.76%	1.17%	1.75%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		50.78%	61.08%	57.77%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%	0.00%	0.00%
Performance Based MSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Installments	4	4
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		50.00%
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		2.05%	1.38%	2.03%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		0.53%	0.61%	0.58%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		7 years 233 days	7 years 131 days	7 years 80 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Estimated Forfeiture Rate		9.92%	10.90%	8.84%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%

Note 15 - Stock Plans - Stock Option Activity (Details) - $ / shares	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Options outstanding at beginning of period (in shares)	7,373,951	6,393,876	6,720,251
Options outstanding at beginning of period (in dollars per share)	$ 4.03	$ 4.78	$ 5.23
Granted (in shares)	236,250	1,148,481	173,750
Granted (in dollars per share)	$ 2.34	$ 1.95	$ 2.47
Exercised (in shares)	48,250		18,125
Exercised (in dollars per share)	$ 2.07		$ 2.48
Forfeited (in shares)	452,375	51,125	203,436
Forfeited (in dollars per share)	$ 5.85	$ 2.73	$ 3.78
Expired (in shares)	248,875	117,281	278,564
Expired (in dollars per share)	$ 16.68	$ 25.05	$ 15.04
Options outstanding at end of period (in shares)	6,860,701	7,373,951	6,393,876
Options outstanding at end of period (in dollars per share)	$ 3.40	$ 4.03	$ 4.78
Options exercisable at end of period (in shares)	5,259,011	5,071,181	4,566,290

Note 15 - Stock Plans - Stock Options Outstanding and Exercisable (Details)	12 Months Ended
	Oct. 31, 2017 $ / shares shares
Lower limit exercise price (in dollars per share)	$ 1.54
Upper limit exercise price (in dollars per share)	$ 6.46
Number outstanding (in shares) \| shares	6,860,701
Weighted-average exercise price - outstanding (in dollars per share)	$ 3.41
Weighted-average remaining contractual life - outstanding (Year)	4 years 80 days
Number exercisable (in shares) \| shares	5,259,011
Weighted-average exercise price - exercisable (in dollars per share)	$ 3.69
Weighted-average remaining contractual life - exercisable (Year)	2 years 350 days
Range One [Member]
Lower limit exercise price (in dollars per share)	$ 1.54
Upper limit exercise price (in dollars per share)	$ 2.41
Number outstanding (in shares) \| shares	2,320,409
Weighted-average exercise price - outstanding (in dollars per share)	$ 2.01
Weighted-average remaining contractual life - outstanding (Year)	6 years 259 days
Number exercisable (in shares) \| shares	1,003,714
Weighted-average exercise price - exercisable (in dollars per share)	$ 2
Weighted-average remaining contractual life - exercisable (Year)	4 years 7 days
Range Two [Member]
Lower limit exercise price (in dollars per share)	$ 2.42
Upper limit exercise price (in dollars per share)	$ 4.41
Number outstanding (in shares) \| shares	2,496,542
Weighted-average exercise price - outstanding (in dollars per share)	$ 2.84
Weighted-average remaining contractual life - outstanding (Year)	3 years 94 days
Number exercisable (in shares) \| shares	2,322,797
Weighted-average exercise price - exercisable (in dollars per share)	$ 2.77
Weighted-average remaining contractual life - exercisable (Year)	2 years 350 days
Range Three [Member]
Lower limit exercise price (in dollars per share)	$ 4.42
Upper limit exercise price (in dollars per share)	$ 6.46
Number outstanding (in shares) \| shares	2,043,750
Weighted-average exercise price - outstanding (in dollars per share)	$ 5.70
Weighted-average remaining contractual life - outstanding (Year)	2 years 208 days
Number exercisable (in shares) \| shares	1,932,500
Weighted-average exercise price - exercisable (in dollars per share)	$ 5.66
Weighted-average remaining contractual life - exercisable (Year)	2 years 146 days

Note 15 - Stock Plans - Nonvested Share Awards (Details)	12 Months Ended
	Oct. 31, 2017 $ / shares shares
Nonvested at beginning of period (in shares) \| shares	7,239,469
Nonvested at beginning of period (in dollars per share) \| $ / shares	$ 2.80
Granted (in shares) \| shares	1,233,700
Granted (in dollars per share) \| $ / shares	$ 2.56
Vested (in shares) \| shares	1,216,359
Vested (in dollars per share) \| $ / shares	$ 4.92
Forfeited (in shares) \| shares	1,082,333
Forfeited (in dollars per share) \| $ / shares	$ 2.59
Nonvested at end of period (in shares) \| shares	6,174,477
Nonvested at end of period (in dollars per share) \| $ / shares	$ 2.36

Note 16 - Warranty Costs (Details Textual) $ in Thousands	3 Months Ended		12 Months Ended
Note 16 - Warranty Costs (Details Textual) $ in Thousands	Oct. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)
Cash Received from Subcontractors for Owner Controlled Insurance Program			$ 4,100	$ 4,200
General Liability Insurance Deductible	$ 20,000	$ 20,000	20,000	20,000	$ 20,000
Bodily Injury Insurance Deductible	250	250	250	250	250
Bodily Injury Insurance Limit	5,000	5,000	5,000	5,000	$ 5,000
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims	21,000	21,000	21,000	21,000
Increase (Decrease) In Construction Defect Reserves	12,500	$ (9,200)
Standard Product Warranty Accrual, Period Increase (Decrease)	$ (4,600)
Payments by Insurance Companies for Claims			$ 900	$ 4,000
Homebuilding [Member] \| Northeast [Member]
Number of Construction Defect Claims Settled During the Period				2

Note 16 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Balance, beginning of period	$ 121,144	$ 135,053
Charges incurred during the period	(28,019)	(29,965)
Changes to pre-existing reserves	7,872	(9,199)
Changes to reserves where corresponding amounts are recorded as receivables from insurance carriers		(9,505)
Balance, end of period	127,702	121,144
Selling, General and Administrative Expenses [Member]
Additions	10,870	17,363
Cost of Sales [Member]
Additions	$ 15,835	$ 17,397

Note 17 - Transactions With Related Parties (Details Textual) - USD ($)	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Tavit Najarian [Member]
Related Party Transaction, Amounts of Transaction	$ 800,000	$ 1,000,000	$ 1,200,000
Carson Sorsby [Member] \| Compensation [Member]
Related Party Transaction, Amounts of Transaction	191,000	152,000	$ 129,000
Alexander Hovnanian [Member] \| Compensation [Member]
Related Party Transaction, Amounts of Transaction	$ 336,000	$ 166,000

Note 18 - Commitments and Contingent Liabilities (Details Textual) - USD ($)				12 Months Ended
	Dec. 18, 2017	Nov. 18, 2017	Jun. 01, 2017	Oct. 31, 2017
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member]
Loss Contingency, Damages Sought, Value				$ 41,300,000
Loss Contingency, Damages Awarded, Value			$ 9,000,000
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] \| Minimum [Member]
Loss Contingency, Estimate of Possible Loss				0
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] \| Maximum [Member]
Loss Contingency, Estimate of Possible Loss				10,800,000
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] \| Breach of Warranty and New Jersey Fraud Claims Prior to Statutory Trebling [Member]
Loss Contingency, Damages Awarded, Value			$ 3,000,000
Grandview at Riverwalk Port Imperial Condominium Association Construction Defect Lawsuit [Member] \| Attorney Fees and Costs [Member] \| Subsequent Event [Member]
Litigation Settlement, Amount Awarded to Other Party		$ 1,800,000
Litigation Settlement, Amount Sought from Other Party		$ 4,800,000
Construction and Design Defects Lawsuit from Second Condominium Association [Member] \| Minimum [Member]
Loss Contingency, Damages Sought, Value				69,000,000
Construction and Design Defects Lawsuit from Second Condominium Association [Member] \| Maximum [Member]
Loss Contingency, Damages Sought, Value				$ 79,000,000
Class Action Lawsuit Filed by Plaintiff Joseph Hong [Member] \| Subsequent Event [Member]
Litigation Settlement, Amount Awarded to Other Party	$ 275,000

Note 19 - Variable Interest Entities (Details Textual) $ in Millions	Oct. 31, 2017 USD ($)
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities	$ 57.1
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities	$ 1,000.0

Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Nov. 30, 2015 USD ($)	Jan. 31, 2017 USD ($)	Jul. 31, 2016 USD ($)	Oct. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)
Proceeds from Transfer of Land to Joint Venture	$ 25,700	$ 11,200	$ 29,800
Number of Owned Communities Transferred to the Joint Venture		1	8
Number of Optioned Communities Transferred to the Joint Venture		3	1
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures				$ 115,090	$ 100,502
Joint Venture Financing Percent of Assets				50.00%
Joint Venture Total Debt to Capitalization Ratio				51.00%
Joint Venture Investments [Member]
Equity Method Investment, Other than Temporary Impairment				$ 2,800	0	$ 0
Homebuilding [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures				115,090	100,502
Management Fees Revenue				11,300	5,800	$ 5,200
Corporate Joint Venture [Member]
Advances to Affiliate				$ 22,400	$ 8,900
Joint Venture Total Debt to Capitalization Ratio				51.00%	41.00%

Note 20 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	Oct. 31, 2016	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Debt to capitalization ratio	51.00%								51.00%
Our share of net (loss) income	$ 3,062	$ (3,881)	$ (4,562)	$ (1,666)	$ 881	$ (2,401)	$ (1,346)	$ (1,480)	$ (7,047)	$ (4,346)	$ 4,169
Corporate Joint Venture [Member]
Cash and cash equivalents	60,774				50,020				60,774	50,020
Inventories	675,179				527,957				675,179	527,957
Other assets	36,026				25,865				36,026	25,865
Total assets	771,979				603,842				771,979	603,842
Accounts payable and accrued liabilities	122,075				74,114				122,075	74,114
Notes payable	330,642				217,172				330,642	217,172
Total liabilities	452,717				291,286				452,717	291,286
Hovnanian Enterprises, Inc.	92,630				91,599				92,630	91,599
Others	226,632				220,957				226,632	220,957
Total equity	319,262				312,556				319,262	312,556
Total liabilities and equity	$ 771,979				$ 603,842				$ 771,979	$ 603,842
Debt to capitalization ratio	51.00%				41.00%				51.00%	41.00%
Revenues									$ 317,849	$ 147,717	128,974
Cost of sales and expenses									(329,147)	(165,534)	(132,170)
Joint venture net (loss) income									(11,298)	(17,817)	(3,196)
Our share of net (loss) income									(6,663)	(4,326)	4,219
Homebuilding Joint Venture [Member] \| Corporate Joint Venture [Member]
Cash and cash equivalents	$ 60,580				$ 48,542				60,580	48,542
Inventories	666,017				516,947				666,017	516,947
Other assets	36,026				25,865				36,026	25,865
Total assets	762,623				591,354				762,623	591,354
Accounts payable and accrued liabilities	121,646				72,302				121,646	72,302
Notes payable	330,642				214,911				330,642	214,911
Total liabilities	452,288				287,213				452,288	287,213
Hovnanian Enterprises, Inc.	88,884				88,379				88,884	88,379
Others	221,451				215,762				221,451	215,762
Total equity	310,335				304,141				310,335	304,141
Total liabilities and equity	$ 762,623				$ 591,354				$ 762,623	$ 591,354
Debt to capitalization ratio	52.00%				41.00%				52.00%	41.00%
Revenues									$ 312,164	$ 141,418	122,192
Cost of sales and expenses									(324,514)	(159,431)	(125,652)
Joint venture net (loss) income									(12,350)	(18,013)	(3,460)
Our share of net (loss) income									(7,189)	(4,424)	4,087
Land Development Joint Venture [Member] \| Corporate Joint Venture [Member]
Cash and cash equivalents	$ 194				$ 1,478				194	1,478
Inventories	9,162				11,010				9,162	11,010
Other assets
Total assets	9,356				12,488				9,356	12,488
Accounts payable and accrued liabilities	429				1,812				429	1,812
Notes payable					2,261					2,261
Total liabilities	429				4,073				429	4,073
Hovnanian Enterprises, Inc.	3,746				3,220				3,746	3,220
Others	5,181				5,195				5,181	5,195
Total equity	8,927				8,415				8,927	8,415
Total liabilities and equity	$ 9,356				$ 12,488				$ 9,356	$ 12,488
Debt to capitalization ratio	0.00%				21.00%				0.00%	21.00%
Revenues									$ 5,685	$ 6,299	6,782
Cost of sales and expenses									(4,633)	(6,103)	(6,518)
Joint venture net (loss) income									1,052	196	264
Our share of net (loss) income									$ 526	$ 98	$ 132

Note 21 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Loans Held for Sale Mortgages Unpaid Principal	$ 128.4	$ 149.4
Other Commitment	19.5
Impairment of Real Estate	15.1	24.5	$ 7.3
Fair Value, Inputs, Level 2 [Member] \| Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]
Notes Payable, Fair Value Disclosure	383.7	251.7
Fair Value, Inputs, Level 3 [Member] \| Senior Secured Notes [Member]
Notes Payable, Fair Value Disclosure	1,200.0	883.0
Fair Value, Inputs, Level 3 [Member] \| Senior Amortizing Notes [Member]
Notes Payable, Fair Value Disclosure	2.1	6.3
Fair Value, Inputs, Level 3 [Member] \| Senior Exchangeable Notes [Member]
Notes Payable, Fair Value Disclosure	54.2	$ 55.2
Loan Origination Commitments [Member]
Loan Applications in Process	$ 486.5
Loan Origination Commitments [Member] \| Maximum [Member]
Number of Days in Committment	60 days
Interest Rate Committed Loan Applications [Member]
Interest Rate Committed Loan Applications	$ 31.2

Note 21 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands

Oct. 31, 2017

Oct. 31, 2016

Total

$ 132,425

$ 165,083

Mortgage loans held for sale

^[1]

132,424

165,077

Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member]

Derivative Fair Value

(14)

(80)

Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member]

Derivative Fair Value

$ 15

$ 86

[1]	The aggregate unpaid principal balance was $128.4 million and $149.4 million at October 31, 2017 and 2016, respectively.

Note 21 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Loans Held for Sale [Member]
Fair value included in net loss all reflected in financial services revenues	$ 4,256	$ 4,711	$ (284)
Interest Rate Lock Commitments [Member]
Fair value included in net loss all reflected in financial services revenues	(14)	(73)	(22)
Forward Contracts [Member]
Fair value included in net loss all reflected in financial services revenues	$ 15	$ (422)	$ 829

Note 21 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2015
Total Losses	$ (15,100)	$ (24,500)	$ (7,300)
Sold and Unsold Homes and Lots Under Development [Member] \| Fair Value, Inputs, Level 3 [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Pre-Impairment Amount	30,022	61,584
Total Losses	(11,658)	(19,006)
Fair Value of Inventory	18,364	42,578
Land and Land Options Held for Future Development or Sale [Member] \| Fair Value, Inputs, Level 3 [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Pre-Impairment Amount	22,850	26,783
Total Losses	(3,403)	(5,466)
Fair Value of Inventory	$ 19,447	$ 21,317

Note 22 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors (Details Textual) - USD ($)

12 Months Ended

Oct. 31, 2017

Jul. 27, 2017

Oct. 31, 2016

Sep. 08, 2016

Direct or Indirect Ownership in Guarantor Subsidiaries Percentage

100.00%

The 9.50% 2020 Notes [Member]

Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member]

9.50%

$ 75,000,000

Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member]

^[1],[2]

9.50%

$ 440,000,000

Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member]

10.00%

^[1],[2]

10.00%

^[1],[2]

$ 400,000,000

Senior Secured Notes [Member] | Subsidiary Issuer [Member]

^[1],[2]

10.50%

$ 1,110,000,000

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 7.0% 2019 Notes [Member]

$ 1,090,600,000

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member]

^[1],[2]

7.00%

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | Subsidiary Issuer [Member]

^[1],[2]

8.00%

$ 368,500,000

Senior Amortizing Notes [Member] | Subsidiary Issuer [Member]

366,300,000

2,100,000

Senior Exchangeable Notes [Member] | Subsidiary Issuer [Member]

2,000,000

53,900,000