0001753926-24-000450 | 10-Q | XBRL Viewer | Hovnanian Enterprises INC

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Note 2 - Stock Compensation (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Payment Arrangement, Expense	$ 4.1	$ 2.1
Share-Based Payment Arrangement, Expense, after Tax	$ 3.0	$ 2.1
Performance Shares [Member] \| The 2023 LTIP [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Post-Vesting Hold Period (Year)	2 years
Performance Shares [Member] \| Payable in Cash-settled Phantom Shares [Member] \| The 2023 LTIP [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage	50.00%
Performance Shares [Member] \| Payable in Shares of Company Stock [Member] \| The 2023 LTIP [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage	50.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Note 20 - Fair Value of Financial Instruments - Fair Value of Notes (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Oct. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	$ 978,321	$ 1,077,869
Senior Secured Notes [Member] \| The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	231,750	230,690
Senior Secured Notes [Member] \| The 11.75% Senior Secured 1.25 Lien Notes due September 30, 2029 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	477,300	476,655
Senior Secured Notes [Member] \| The 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value		113,843
Senior Notes [Member] \| The 13.5% 2026 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	95,745	95,062
Senior Notes [Member] \| The 5.0% 2040 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	45,484	44,843
Unsecured Senior Term Loan [Member] \| Senior Unsecured Term Loan Credit Facility Due 2027 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	37,490	35,034
Senior Secured Term Loan [Member] \| The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	90,552	81,742
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 1 [Member] \| Senior Secured Notes [Member] \| The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 1 [Member] \| Senior Secured Notes [Member] \| The 11.75% Senior Secured 1.25 Lien Notes due September 30, 2029 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 1 [Member] \| Senior Secured Notes [Member] \| The 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value		0
Fair Value, Inputs, Level 1 [Member] \| Senior Notes [Member] \| The 13.5% 2026 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 1 [Member] \| Senior Notes [Member] \| The 5.0% 2040 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 1 [Member] \| Unsecured Senior Term Loan [Member] \| Senior Unsecured Term Loan Credit Facility Due 2027 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 1 [Member] \| Senior Secured Term Loan [Member] \| The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	477,300	590,498
Fair Value, Inputs, Level 2 [Member] \| Senior Secured Notes [Member] \| The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 2 [Member] \| Senior Secured Notes [Member] \| The 11.75% Senior Secured 1.25 Lien Notes due September 30, 2029 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	477,300	476,655
Fair Value, Inputs, Level 2 [Member] \| Senior Secured Notes [Member] \| The 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value		113,843
Fair Value, Inputs, Level 2 [Member] \| Senior Notes [Member] \| The 13.5% 2026 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 2 [Member] \| Senior Notes [Member] \| The 5.0% 2040 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 2 [Member] \| Unsecured Senior Term Loan [Member] \| Senior Unsecured Term Loan Credit Facility Due 2027 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 2 [Member] \| Senior Secured Term Loan [Member] \| The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	501,021	487,371
Fair Value, Inputs, Level 3 [Member] \| Senior Secured Notes [Member] \| The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	231,750	230,690
Fair Value, Inputs, Level 3 [Member] \| Senior Secured Notes [Member] \| The 11.75% Senior Secured 1.25 Lien Notes due September 30, 2029 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	0	0
Fair Value, Inputs, Level 3 [Member] \| Senior Secured Notes [Member] \| The 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value		0
Fair Value, Inputs, Level 3 [Member] \| Senior Notes [Member] \| The 13.5% 2026 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	95,745	95,062
Fair Value, Inputs, Level 3 [Member] \| Senior Notes [Member] \| The 5.0% 2040 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	45,484	44,843
Fair Value, Inputs, Level 3 [Member] \| Unsecured Senior Term Loan [Member] \| Senior Unsecured Term Loan Credit Facility Due 2027 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	37,490	35,034
Fair Value, Inputs, Level 3 [Member] \| Senior Secured Term Loan [Member] \| The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes, Fair Value	$ 90,552	$ 81,742

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Class A [Member]	Common Stock Outstanding [Member] Common Class A [Member]	Common Stock Outstanding [Member] Common Class B [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Noncontrolling Interest [Member]
Balance (in shares) at Oct. 31, 2022			5,376,985	705,705	5,600
Balance at Oct. 31, 2022	$ 383,051		$ 62	$ 7	$ 135,299	$ 727,663	$ (352,413)	$ (127,582)	$ 15
Stock options, amortization and issuances (in shares)			209
Stock options, amortization and issuances	8					8
Preferred dividend declared ($476.56 per share)	(2,669)						(2,669)
Restricted stock amortization, issuances and forfeitures (in shares)			18,051	14,620
Restricted stock amortization, issuances and forfeitures	1,487					1,487
Changes in noncontrolling interest in consolidated joint ventures	4								4
Share repurchases (in shares)		(118,478)	(118,478)
Share repurchases	(4,800)	$ (4,800)						(4,800)
Net income	18,716						18,716
Balance (in shares) at Jan. 31, 2023			5,276,767	720,325	5,600
Balance at Jan. 31, 2023	395,797		$ 62	$ 7	$ 135,299	729,158	(336,366)	(132,382)	19
Balance (in shares) at Oct. 31, 2023			5,345,929	749,081	5,600
Balance at Oct. 31, 2023	581,789		$ 62	$ 8	$ 135,299	735,946	(157,197)	(132,382)	53
Stock options, amortization and issuances (in shares)			615
Stock options, amortization and issuances	46					46
Preferred dividend declared ($476.56 per share)	(2,669)						(2,669)
Restricted stock amortization, issuances and forfeitures	4,071					4,071
Conversion of Class B to Class A common stock (in shares)			16	(16)
Conversion of Class B to Class A common stock
Changes in noncontrolling interest in consolidated joint ventures	(53)								(53)
Share repurchases (in shares)		0
Net income	23,904						23,904
Balance (in shares) at Jan. 31, 2024			5,346,560	749,065	5,600
Balance at Jan. 31, 2024	$ 607,088		$ 62	$ 8	$ 135,299	$ 740,063	$ (135,962)	$ (132,382)

Note 7 - Commitments and Contingent Liabilities

3 Months Ended

Jan. 31, 2024

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

7.	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 regulations 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. The significant majority of our litigation matters are related to construction defect claims. Our estimated losses from construction defect litigation matters, if any, are included in our construction defect reserves.

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 regulating 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 or take corrective action, 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 continue to be imposed on developers and homebuilders in the future. In addition, some of these laws and regulations that significantly affect how certain properties may be developed are contentious, attract intense political attention, and may be subject to significant changes over time. For example, regulations governing wetlands permitting under the federal Clean Water Act have been the subject of extensive rulemakings for many years, resulting in several major joint rulemakings by the EPA and the U.S. Army Corps of Engineers that have expanded and contracted the scope of wetlands subject to regulation; and such rulemakings have been the subject of many legal challenges, some of which remain pending. 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 2015, the condominium association of the Four Seasons at Great Notch condominium community (the “Great Notch Plaintiff”) filed a lawsuit in the Superior Court of New Jersey, Law Division, Passaic County (the “Court”) alleging various construction defects, design defects, and geotechnical issues relating to the community. The operative complaint (“Complaint”) asserts claims against Hovnanian Enterprises, Inc. and several of its affiliates, including K. Hovnanian at Great Notch, LLC, K. Hovnanian Construction Management, Inc., and K. Hovnanian Companies, LLC. The Complaint also asserts claims against various other design professionals and contractors. The Special Masters appointed by the Court to decide non-dispositive motions issued an opinion that (a) granted the Great Notch Plaintiff’s motion to permit it to assert a claim to pierce the corporate veil of K. Hovnanian at Great Notch, LLC to hold its alleged parent entities liable for any damages awarded against it, and (b) further stated that the Great Notch Plaintiff is not permitted to pursue that claim until after any trial on the underlying liability claims. In 2018, the Hovnanian-affiliated defendants reached a partial settlement with the Great Notch Plaintiff as to a portion of the Great Notch Plaintiff’s claims against them for an amount immaterial to the Company. On the remaining claims against the Hovnanian-affiliated defendants, the Great Notch Plaintiff had asserted damages of approximately $119.5 million, which amount was potentially subject to treble damages pursuant to the Great Notch Plaintiff’s claim under the New Jersey Consumer Fraud Act. In December 2023, the parties reached a settlement on the remaining claims through mediation, and in February 2024 executed a final confidential settlement agreement. The settlement amount is not materially different from what we had reserved for this case.

In December 2020, the New Jersey Department of Environmental Protection ("NJDEP") and the Administrator of the New Jersey Spill Compensation Fund (the “Spill Fund”) filed a lawsuit in the Superior Court of New Jersey, Law Division, Union County against Hovnanian Enterprises, Inc., in addition to other unrelated parties, in connection with contamination at Hickory Manor, a residential condominium development. Alleged predecessors of certain defendants had used the Hickory Manor property for decades for manufacturing purposes. In 1998, NJDEP confirmed that groundwater at this site was impacted from an off-site source. The site was later remediated, resulting in the NJDEP issuing an unconditional site-wide No Further Action determination letter and Covenant Not to Sue in 1999. Subsequently, one of our affiliates was involved in redeveloping the property as a residential community. The complaint asserts claims under the New Jersey Spill Act and other state law claims and alleges that the NJDEP and the Spill Fund have incurred over $5.3 million since 2009 to investigate vapor intrusion at the development and to install vapor mitigation systems. Among other things, the complaint seeks recovery of the costs incurred, an order that defendants perform additional required remediation and disgorgement of profits on our affiliate’s sales of the units in the development. Discovery has commenced. Hovnanian Enterprises, Inc. intends to defend these claims vigorously.

Note 10 - Mortgage Loans Held for Sale (Tables)

3 Months Ended

Jan. 31, 2024

Mortgage Loans Held for Sale

Schedule of activity in loan origination reserves [Table Text Block]

	Three Months Ended
	January 31,
(In thousands)	2024		2023
Loan origination reserves, beginning of period	$	2,013	$	1,795
Provisions for losses during the period		46		32
Adjustments to pre-existing provisions for losses from changes in estimates		-		-
Loan origination reserves, end of period	$	2,059	$	1,827

Note 13 - Per Share Calculation - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Per Share Calculation
Net income	$ 23,904	$ 18,716
Less: preferred stock dividends	(2,669)	(2,669)
Less: undistributed earnings allocated to participating securities	(1,025)	(1,403)
Numerator for basic earnings per share	20,210	14,644
Plus: undistributed earnings allocated to participating securities	1,025	1,403
Less: undistributed earnings reallocated to participating securities	(1,025)	(1,403)
Numerator for diluted earnings per share	$ 20,210	$ 14,644
Denominator for basic earnings per share – weighted average shares outstanding (in shares)	6,496	6,186
Stock-based payments (in shares)	441	282
Denominator for diluted earnings per share – weighted-average shares outstanding (in shares)	6,937	6,468
Net income per common share (in dollars per share)	$ 3.11	$ 2.37
Diluted earnings per share (in dollars per share)	$ 2.91	$ 2.26

Note 6 - Warranty Costs (Details Textual) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Product Warranty Liability [Line Items]
General Liability Insurance Deductible	$ 30,000	$ 25,000
Bodily Injury Insurance Deductible	250
Bodily Injury Insurance Deductible for Action Over Claims	500
Bodily Injury Insurance Limit	$ 30,000	5,000
CALIFORNIA
Product Warranty Liability [Line Items]
Bodily Injury Insurance Deductible		500
All States Other Than California [Member]
Product Warranty Liability [Line Items]
Bodily Injury Insurance Deductible		$ 250

Note 9 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Thousands

Jan. 31, 2024

Oct. 31, 2023

Leases

2024 (excluding the three months ended January 31, 2024)

$ 6,341

8,100

6,610

4,389

1,838

4,871

Total operating lease payments (1)

^[1]

32,149

Less: imputed interest

(6,975)

Present value of operating lease liabilities

$ 25,174

$ 26,470

[1]

Lease payments include options to extend lease terms that are reasonably certain of being executed and exclude $2.9 million of legally binding minimum lease payments for office leases signed but not yet commenced as of January 31, 2024. The related ROU assets and operating lease liabilities are not reflected on the Company's Condensed Consolidated Balance Sheets.

Note 12 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) - USD ($)
$ in Thousands

Jan. 31, 2024

Oct. 31, 2023

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

$ 956,759

$ 1,070,261

Net (discounts) premiums

(18,230)

(14,563)

Unamortized debt issuance costs

(3,912)

(4,207)

Total senior notes and credit facilities, net of discounts, premiums and unamortized debt issuance costs

934,617

1,051,491

Senior Secured Notes [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

655,000

768,502

Unsecured Senior Notes [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

180,710

Senior Unsecured Term Loan Credit Facility Due 2027 [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

39,551

Senior Secured Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

^[1]

The 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 [Member] | Senior Secured Notes [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

^[2]

113,502

The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

90,590

The 5.0% Senior Notes due 2040 [Member] | Unsecured Senior Notes [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

90,120

The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] | Senior Secured Term Loan [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

81,498

The 8.0% Senior Secured 1.125 Lien Notes Due 2028 [Member] | Senior Secured Notes [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

225,000

The 11.75% Senior Secured 1.25 Lien Notes Due 2029 [Member] | Senior Secured Notes [Member]

Debt Instrument [Line Items]

Subtotal senior notes and credit facilities

$ 430,000

[1]

At January 31, 2024, provides for up to $125.0 million in aggregate amount of senior secured first lien revolving loans. The revolving loans thereunder have a maturity of June 30, 2026 and borrowings bear interest, at K. Hovnanian’s option, at either (i) a term secured overnight financing rate (subject to a floor of 3.00%) plus an applicable margin of 4.50% or (ii) an alternate base rate (subject to a floor of 4.00%) plus an applicable margin of 3.50%. In addition, K. Hovnanian will pay an unused commitment fee on the undrawn revolving commitments at a rate of 1.00% per annum.

[2]

On November 15, 2023, K. Hovnanian redeemed all of its $113.5 million aggregate principal amount of 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025.

Note 20 - Fair Value of Financial Instruments - Fair Value of Notes (Details) (Parentheticals)	3 Months Ended	12 Months Ended
	Jan. 31, 2024	Oct. 31, 2023
The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member] \| Senior Secured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Stated Interest Rate	8.00%	8.00%
Debt Instrument, Maturity Date	Sep. 30, 2028	Sep. 30, 2028
The 11.75% Senior Secured 1.25 Lien Notes due September 30, 2029 [Member] \| Senior Secured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Stated Interest Rate	11.75%	11.75%
Debt Instrument, Maturity Date	Sep. 30, 2029	Sep. 30, 2029
The 13.5% 2026 Notes [Member] \| Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Stated Interest Rate	13.50%	13.50%
Debt Instrument, Maturity Date	Feb. 01, 2026	Feb. 01, 2026
The 5.0% 2040 Notes [Member] \| Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Stated Interest Rate	5.00%	5.00%
Debt Instrument, Maturity Date	Feb. 01, 2040	Feb. 01, 2040
Senior Unsecured Term Loan Credit Facility Due 2027 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Maturity Date	Feb. 01, 2027	Feb. 01, 2027
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] \| Senior Secured Term Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Maturity Date	Jan. 31, 2028	Jan. 31, 2028
The 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 [Member] \| Senior Secured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Stated Interest Rate		10.00%
Debt Instrument, Maturity Date		Nov. 15, 2025

Note 20 - Fair Value of Financial Instruments (Tables)

3 Months Ended

Jan. 31, 2024

Fair Value of Financial Instruments

Schedule of financial instruments measured at fair value on a recurring basis

		Fair Value at		Fair Value at
	Fair Value	January 31,		October 31,
(In thousands)	Hierarchy	2024		2023

Mortgage loans held for sale (1)	Level 2	$	99,046	$	130,235

(1) The aggregate unpaid principal balance was $98.2 million and $130.4 million at January 31, 2024 and October 31, 2023, respectively.

Schedule of change in fair value included in financial services revenue

Three Months Ended January 31, 2024

Mortgage

Interest Rate

Loans Held

Lock

Forward

(In thousands)

For Sale

Commitments

Contracts

Change in fair value included in financial services revenue

802

Three Months Ended January 31, 2023

Mortgage

Interest Rate

Loans Held

Lock

Forward

(In thousands)

For Sale

Commitments

Contracts

Change in fair value included in financial services revenue

421

(37

)

Schedule of fair value of each series of Notes and Credit Facilities

Fair Value as of January 31, 2024

(In thousands)	Level 1		Level 2		Level 3		Total
Senior Secured Notes:
8.0% Senior Secured 1.125 Lien Notes due September 30, 2028		-		-		231,750		231,750
11.75% Senior Secured 1.25 Lien Notes due September 30, 2029		-		477,300		-		477,300
Senior Notes:
13.5% Senior Notes due February 1, 2026		-		-		95,745		95,745
5.0% Senior Notes due February 1, 2040		-		-		45,484		45,484
Senior Credit Facilities:
Senior Unsecured Term Loan Credit Facility due February 1, 2027		-		-		37,490		37,490
Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028		-		-		90,552		90,552
Total fair value	$	-	$	477,300	$	501,021	$	978,321

Fair Value as of October 31, 2023

(In thousands)	*Level 1*		*Level 2*		*Level 3*		*Total*
Senior Secured Notes:
10.0% Senior Secured 1.75 Lien Notes due November 15, 2025		-		113,843		-		113,843
8.0% Senior Secured 1.125 Lien Notes due September 30, 2028		-		-		230,690		230,690
11.75% Senior Secured 1.25 Lien Notes due September 30, 2029		-		476,655		-		476,655
Senior Notes:
13.5% Senior Notes due February 1, 2026		-		-		95,062		95,062
5.0% Senior Notes due February 1, 2040		-		-		44,843		44,843
Senior Credit Facilities:
Senior Unsecured Term Loan Credit Facility due February 1, 2027		-		-		35,034		35,034
Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028		-		-		81,742		81,742
Total fair value	$	-	$	590,498	$	487,371	$	1,077,869

Note 15 - Common Stock (Details Textual) $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 31, 2024 USD ($) shares	Jan. 31, 2023 USD ($) $ / shares shares	Sep. 01, 2022 USD ($)	Jan. 11, 2018	Aug. 15, 2008
Class of Stock [Line Items]
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%
Treasury Stock, Value, Acquired, Cost Method		$ 4,800
Minimum [Member]
Class of Stock [Line Items]
Shareholder Ownership Percentage				5.00%
Common Class A [Member]
Class of Stock [Line Items]
Treasury Stock, Shares, Acquired (in shares) \| shares	0	118,478
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, Authorized Amount			$ 50,000
Treasury Stock, Value, Acquired, Cost Method		$ 4,800
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) \| $ / shares		$ 40.51
Stock Repurchase Program, Remaining Amount of Shares Authorized to be Repurchased	$ 33,000
Common Class B [Member]
Class of Stock [Line Items]
Common Stock Voting Rights Votes per Share Number	10

Note 13 - Per Share Calculation (Details Textual) shares in Thousands	3 Months Ended
	Jan. 31, 2023 shares
Out of the Money Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	80

Note 11 - Mortgages (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2024	Oct. 31, 2023
JP Morgan Chase Bank [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 75.0
Line of Credit Facility, Current Borrowing Capacity	50.0
Warehouse Agreement Borrowings	$ 36.5	$ 31.4
JP Morgan Chase Bank [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.125%
JP Morgan Chase Bank [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.375%
Customers Bank [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50.0
Warehouse Agreement Borrowings	$ 47.3	41.1
Customers Bank [Member] \| Bloomberg Short-term Bank Yield Index (BSBY) [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.125%
Customers Bank [Member] \| Bloomberg Short-term Bank Yield Index (BSBY) [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	4.50%
Flagstar Bank, N.A. [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50.0
Warehouse Agreement Borrowings	$ 0.0
Flagstar Bank, N.A. [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Debt Instrument Variable Rate Basis Floor Rate	1.00%
Flagstar Bank, N.A. [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.82%
Flagstar Bank, N.A. [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	5.00%
Nonrecourse Mortgages Secured By Inventory [Member] \| Mortgages [Member] \| Home Building [Member]
Debt Instrument [Line Items]
Secured Debt	$ 99.6	91.5
Debt Instrument, Collateral Amount	$ 313.5	$ 331.6
Debt, Weighted Average Interest Rate	8.70%	8.50%
Comerica Master Repurchase Agreement [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 60.0
Warehouse Agreement Borrowings		$ 38.3
Line of Credit Facility, Maximum Borrowing Capacity Reversion After Initial Period	$ 50.0
Comerica Master Repurchase Agreement [Member] \| Bloomberg Short-term Bank Yield Index (BSBY) [Member]
Debt Instrument [Line Items]
Debt Instrument Variable Rate Basis Floor Rate	0.50%
Comerica Master Repurchase Agreement [Member] \| Bloomberg Short-term Bank Yield Index (BSBY) [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%
Comerica Master Repurchase Agreement [Member] \| Bloomberg Short-term Bank Yield Index (BSBY) [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%

Note 8 - Cash Equivalents, Restricted Cash and Customers' Deposits

3 Months Ended

Jan. 31, 2024

Cash Equivalents, Restricted Cash and Customers' Deposits

Cash Equivalents, Restricted Cash and Customers' Deposits

8.	Cash Equivalents, Restricted Cash and Customers' Deposits

Cash equivalents include certificates of deposit, U.S. Treasury bills and government money–market funds with maturities of 90 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 high credit quality financial institutions. At January 31, 2024 and October 31, 2023, $12.8 million and $11.4 million, respectively, of our total cash and cash equivalents was in cash equivalents and restricted cash equivalents.

Homebuilding "Restricted cash and cash equivalents" on the Condensed Consolidated Balance Sheets totaled $8.4 million at both January 31, 2024 and October 31, 2023, which primarily consists of cash collateralizing our letter of credit agreements and facilities (see Note 12).

Financial services restricted cash and cash equivalents, which are included in "Financial services" assets on the Condensed Consolidated Balance Sheets, totaled $42.1 million and $30.5 million as of January 31, 2024 and October 31, 2023, respectively. Included in these balances were (1) financial services customers’ deposits of $39.5 million and $28.1 million at January 31, 2024 and October 31, 2023, respectively, which are subject to restrictions on our use, and (2) restricted cash under the terms of our mortgage warehouse lines of credit of $2.6 million and $2.4 million at January 31, 2024 and October 31, 2023, respectively.

Homebuilding "Customers' deposits" are shown as a liability on the Condensed 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 or surety bonds.

Note 5 - Variable Interest Entities (Details Textual) - USD ($) $ in Millions	Jan. 31, 2024	Oct. 31, 2023
Variable Interest Entities
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities	$ 206.5	$ 192.3
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities	$ 2,300.0	$ 2,200.0

Note 15 - Common Stock

3 Months Ended

Jan. 31, 2024

Common Stock

Common Stock

15.

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, the Board adopted a shareholder rights plan (the “Rights Plan”), which was amended on January 11, 2018, January 18, 2021, and January 11, 2024, 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, there would be a triggering event causing significant dilution in the voting power of such person or group. However, existing shareholders who owned, at the time of the Rights Plan’s initial adoption on August 4, 2008, 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’s 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 14, 2027, unless it expires earlier in accordance with its terms. The approval of the Board’s decision to initially adopt the Rights Plan and Amendments Nos. 1 and 2 thereto were approved by shareholders (Amendment No. 3 will be voted upon by shareholders at HEI's Annual Meeting to be held on March 21, 2024). Our shareholders also 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% shareholders and holders of Class B common stock, the transfer restrictions in our Restated 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” (as defined in the applicable U.S. Treasury regulations). 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 September 1, 2022, the Board authorized a repurchase program for up to $50.0 million of our Class A common stock. Under the program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual dollar amount repurchased will depend on a variety of factors, including legal requirements, price, future tax implications and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date.

There were no shares repurchased during the three months ended January 31, 2024. During the three months ended January 31, 2023, we repurchased 118,478 shares under the stock repurchase program, with a market value of $4.8 million, or $40.51 per share, which were added to "Treasury stock" on our Condensed Consolidated Balance Sheet. As of January 31, 2024, $33.0 million of our Class A common stock is available to be purchased under the stock repurchase program.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Paragraph 13
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Paragraph 1
-Subparagraph (SX 210.3-04)
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-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
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-Subparagraph (g)
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Note 1 - Basis of Presentation

3 Months Ended

Jan. 31, 2024

Basis of Presentation

Basis of Presentation

1.	Basis of Presentation

Hovnanian Enterprises, Inc. (“HEI”) conducts all of its homebuilding and financial services operations through its subsidiaries (references herein to the “Company,” “we,” “us” or “our” refer to HEI and its consolidated subsidiaries and should be understood to reflect the consolidated business of HEI’s subsidiaries).

The accompanying unaudited Condensed Consolidated Financial Statements include HEI's accounts and those of all of its consolidated subsidiaries after elimination of all intercompany balances and transactions. Noncontrolling interest represents the proportionate equity interest in a consolidated joint venture that is not 100% owned by the Company directly or indirectly, which we sold our membership interest in during the first quarter of fiscal 2024.

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023. In the opinion of management, all adjustments for interim periods presented have been made, which include normal recurring accruals and deferrals necessary for a fair presentation of our condensed consolidated financial position, results of operations and cash flows. The preparation of financial statements in conformity with U.S. 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 Condensed Consolidated Financial Statements. Results for interim periods are not necessarily indicative of the results which might be expected for a full year.

Note 10 - Mortgage Loans Held for Sale (Details Textual) $ in Millions	Jan. 31, 2024 USD ($) Item	Oct. 31, 2023 USD ($) Item
Mortgage Loans Held for Sale
Number of Loans Reserved For \| Item	10	10
Collateralized Debt Obligations [Member]
Mortgage Loans Held for Sale
Mortgages held for sale, pledged \| $	$ 95.1	$ 127.7

Note 13 - Per Share Calculation (Tables)

3 Months Ended

Jan. 31, 2024

Per Share Calculation

Schedule of basic and diluted earnings per share

	Three Months Ended
	January 31,
(In thousands, except per share data)	2024			2023
Numerator:
Net income	$	23,904		$	18,716
Less: preferred stock dividends		(2,669	)		(2,669	)
Less: undistributed earnings allocated to participating securities		(1,025	)		(1,403	)
Numerator for basic earnings per share	$	20,210		$	14,644
Plus: undistributed earnings allocated to participating securities		1,025			1,403
Less: undistributed earnings reallocated to participating securities		(1,025	)		(1,403	)
Numerator for diluted earnings per share	$	20,210		$	14,644
Denominator:
Denominator for basic earnings per share – weighted average shares outstanding		6,496			6,186
Effect of dilutive securities:
Stock-based payments		441			282
Denominator for diluted earnings per share – weighted-average shares outstanding		6,937			6,468
Basic earnings per share	$	3.11		$	2.37
Diluted earnings per share	$	2.91		$	2.26

Note 21 - Transactions With Related Parties (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Tavit Najarian [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	$ 0.3	$ 0.4

Note 2 - Stock Compensation

3 Months Ended

Jan. 31, 2024

Stock Compensation

Stock Compensation

2.	Stock Compensation

During the first quarter of fiscal 2024, the Board of Directors ("the Board") approved certain grants under a new Long-Term Incentive Program (the “2024 LTIP”) that contain performance-based vesting conditions. The performance period for the 2024 LTIP commenced on November 1, 2023 and will end on October 31, 2026. At the end of the performance period, 50% of the awards, if any, are payable in cash-settled phantom shares and the remaining 50% of the awards, if any, are payable in shares of Company stock, subject to a mandatory two-year post-vesting hold period.

For the three months ended January 31, 2024 and 2023, stock-based compensation expense was $4.1 million ($3.0 million net of tax) and $2.1 million (pre and post-tax), respectively.

Note 4 - Reduction of Inventory to Fair Value

3 Months Ended

Jan. 31, 2024

Reduction of Inventory to Fair Value

Reduction of Inventory to Fair Value

4.Reduction of Inventory to Fair Value

We had 403 and 361 communities under development and held for future development or sale at January 31, 2024 and 2023, respectively, which we evaluated for impairment indicators. We did not identify impairment indicators (i.e., those with a projected operating loss) for any community during the three months ended January 31, 2024 and 2023.

Write-offs of options, engineering and capitalized interest costs are recorded in "Inventory impairments and land option write-offs" when we redesign communities, abandon certain engineering costs or do not exercise options in various locations because the pro forma profitability is not projected to produce adequate returns on investment commensurate with the risk. Total aggregate write-offs related to these items were $0.3 million and $0.5 million for the three months ended January 31, 2024 and 2023, respectively. The number of lots walked away from during the three months ended January 31, 2024 and 2023 were 928 and 2,182, respectively. The walk-aways during the first quarter of fiscal 2024 occurred in our Southeast and West segments and for the first quarter of fiscal 2023 the walk-aways occurred across each of our segments.

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 these sale and leaseback transactions are considered a financing rather than a sale. Our Condensed Consolidated Balance Sheets at January 31, 2024 and October 31, 2023, included inventory of $36.6 million and $41.7 million, respectively, recorded to “Consolidated inventory not owned” with a corresponding amount of $36.3 million and $42.0 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 a 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, these transactions are considered a financing rather than a sale. Our Condensed Consolidated Balance Sheets at January 31, 2024 and October 31, 2023, included inventory of $161.5 million and $183.1 million, respectively, recorded to “Consolidated inventory not owned” with a corresponding amount of $78.4 million (net of debt issuance costs) and $82.3 million, respectively, recorded to “Liabilities from inventory not owned” for the amount of net cash received from the transactions.

Note 19 - Recent Accounting Pronouncements

3 Months Ended

Jan. 31, 2024

Recent Accounting Pronouncements

Recent Accounting Pronouncements

19.

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides companies with optional expedients to ease the potential accounting burden on contracts affected by the discontinuation of the London Interbank Offered Rate or another reference rate expected to be discontinued. This guidance was effective for the Company beginning on March 12, 2020 and we may elect to apply the amendments prospectively. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, to extend the temporary accounting rules under ASC 848 from December 31, 2022 to December 31, 2024. We are currently evaluating the potential impact, but we do not expect the adoption of this guidance to have a material impact on our Condensed Consolidated Financial Statements.

In August 2023, the FASB issued ASU 2023-05, “Business Combinations - Joint Venture Formations” (“ASU 2023-05”), which addresses the accounting for contributions made to a joint venture. ASU 2023-05 requires joint ventures to measure all assets and liabilities upon formation at fair value. This guidance will be applied prospectively to all joint venture formations with a formation date on or after January 1, 2025. We are currently evaluating the potential impact, but we do not expect the adoption of this guidance to have a material impact on our Condensed Consolidated Financial Statements.

In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within the segment measure of profit or loss. This guidance will be applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. We are currently evaluating the potential impact, but we do not expect the adoption of this guidance to have a material impact on our Condensed Consolidated Financial Statements.

In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires enhanced disclosures related to the rate reconciliation and information on income taxes paid. This guidance will be applied prospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2024. We are currently evaluating the potential impact the adoption of this guidance will have on our Condensed Consolidated Financial Statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Note 12 - Senior Notes and Credit Facilities (Tables)

3 Months Ended

Jan. 31, 2024

Senior Notes and Credit Facilities

Schedule of Long-Term Debt Instruments

	January 31,			October 31,
(In thousands)	2024			2023
Senior Secured Notes:
10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 (1)	$	-		$	113,502
8.0% Senior Secured 1.125 Lien Notes due September 30, 2028		225,000			225,000
11.75% Senior Secured 1.25 Lien Notes due September 30, 2029		430,000			430,000
Total Senior Secured Notes	$	655,000		$	768,502
Senior Notes:
13.5% Senior Notes due February 1, 2026	$	90,590		$	90,590
5.0% Senior Notes due February 1, 2040		90,120			90,120
Total Senior Notes	$	180,710		$	180,710
Senior Unsecured Term Loan Credit Facility due February 1, 2027	$	39,551		$	39,551
Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028	$	81,498		$	81,498
Senior Secured Revolving Credit Facility (2)	$	-		$	-
Subtotal senior notes and credit facilities	$	956,759		$	1,070,261
Net (discounts) premiums	$	(18,230	)	$	(14,563	)
Unamortized debt issuance costs	$	(3,912	)	$	(4,207	)
Total senior notes and credit facilities, net of discounts, premiums and unamortized debt issuance costs	$	934,617		$	1,051,491

(1) On November 15, 2023, K. Hovnanian redeemed all of its $113.5 million aggregate principal amount of 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025.

(2) At January 31, 2024, provides for up to $125.0 million in aggregate amount of senior secured first lien revolving loans. The revolving loans thereunder have a maturity of June 30, 2026 and borrowings bear interest, at K. Hovnanian’s option, at either (i) a term secured overnight financing rate (subject to a floor of 3.00%) plus an applicable margin of 4.50% or (ii) an alternate base rate (subject to a floor of 4.00%) plus an applicable margin of 3.50%. In addition, K. Hovnanian will pay an unused commitment fee on the undrawn revolving commitments at a rate of 1.00% per annum.

- Definition

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.

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+ Details

Note 4 - Reduction of Inventory to Fair Value (Details Textual) - Home Building [Member] $ in Thousands	3 Months Ended
	Jan. 31, 2024 USD ($) Item	Jan. 31, 2023 USD ($) Item	Oct. 31, 2023 USD ($)
Real Estate [Line Items]
Number of Communities Evaluated for Impairment \| Item	403	361
Impairment of Real Estate	$ 0	$ 0
Land Option Write Offs	$ 300	$ 500
Number of Walk Away Lots \| Item	928	2,182
Model Sale Leaseback Financing Arrangements [Member]
Real Estate [Line Items]
Inventory Real Estate, Other Options	$ 36,600		$ 41,700
Liabilities from Inventory Real Estate Not Owned	36,300		42,000
Land Banking Arrangement [Member]
Real Estate [Line Items]
Inventory Real Estate, Other Options	161,500		183,100
Liabilities from Inventory Real Estate Not Owned	$ 78,400		$ 82,300

Note 10 - Mortgage Loans Held for Sale

3 Months Ended

Jan. 31, 2024

Mortgage Loans Held for Sale

Mortgage Loans Held for Sale

10.

Mortgage Loans Held for Sale

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 are sold in the secondary mortgage market within a short period of time of origination. Mortgage loans held for sale are collateralized by the underlying property. Loans held for sale are recorded at fair value with changes in the value recognized in the Condensed Consolidated Statements of Operations in “Financial services” revenue. We use forward sales of mortgage-backed securities (“MBS”), interest rate commitments from borrowers and forward commitments to sell loans to third parties to protect us from interest rate fluctuations. These short-term instruments do not require any payments to be made to the counterparty or purchaser in connection with the execution of the commitments.

At January 31, 2024 and October 31, 2023, $95.1 million and $127.7 million, respectively, of mortgages held for sale were pledged against our mortgage warehouse lines of credit (see Note 11). 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 the resale value of the home. The reserves for these estimated losses are included in “Financial services” liabilities on the Condensed Consolidated Balance Sheets. At both January 31, 2024 and October 31, 2023, we had specific reserves for 10 identified mortgage loans, as well as reserves for an estimate of future losses on mortgages sold but not yet identified to us.

The activity in our loan origination reserves during the three months ended January 31, 2024 and 2023 was as follows:

	Three Months Ended
	January 31,
(In thousands)	2024		2023
Loan origination reserves, beginning of period	$	2,013	$	1,795
Provisions for losses during the period		46		32
Adjustments to pre-existing provisions for losses from changes in estimates		-		-
Loan origination reserves, end of period	$	2,059	$	1,827

Note 3 - Interest - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($)
$ in Thousands

3 Months Ended

Jan. 31, 2024

Jan. 31, 2023

Interest

Real Estate Inventory Expense Not Eligible for Capitalization

^[1]

$ 10,451

$ 15,093

[1]

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 $3.7 million and $6.6 million for the three months ended January 31, 2024 and 2023, 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 as incurred. This component of other interest was $6.8 million and $8.5 million for the three months ended January 31, 2024 and 2023, respectively.

Note 14 - Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Jul. 12, 2005	Jan. 31, 2024	Jan. 31, 2023	Oct. 31, 2023
Class of Stock [Line Items]
Preferred Stock, Shares Issued, Total (in shares)		5,600		5,600
Preferred Class A [Member]
Class of Stock [Line Items]
Preferred Stock, Shares Issued, Total (in shares)	5,600
Preferred Stock, Dividend Rate, Percentage	7.625%
Preferred Stock, Liquidation Preference Per Share (in dollars per share)	$ 25,000
Preferred Stock, Depositary Shares, Number of Shares of Preferred Stock in Each Depositary Share (in shares)	0.001
Payments of Dividends		$ 2.7	$ 2.7

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 505
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Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (b)
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 18
-Subparagraph (c)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
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-Paragraph 1
-Subparagraph (SX 210.5-02(27)(b))
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
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-Paragraph 1
-Subparagraph (SX 210.5-02(28))
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
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-Paragraph 1
-Subparagraph (SX 210.5-02(29))
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS (Current Period Unaudited) - USD ($) $ in Thousands	Jan. 31, 2024	Oct. 31, 2023
Inventories:
Deferred tax assets, net	$ 295,332	$ 302,833
Total assets	2,340,378	2,492,940
LIABILITIES AND EQUITY
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)	934,617	1,051,491
Income taxes payable	2,583	1,861
Total liabilities	1,733,290	1,911,151
Hovnanian Enterprises, Inc. stockholders' equity:
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at January 31, 2024 and October 31, 2023	135,299	135,299
Paid in capital - common stock	740,063	735,946
Accumulated deficit	(135,962)	(157,197)
Treasury stock - at cost – 901,379 shares of Class A common stock at January 31, 2024 and October 31, 2023; 27,669 shares of Class B common stock at January 31, 2024 and October 31, 2023	(132,382)	(132,382)
Total Hovnanian Enterprises, Inc. stockholders’ equity	607,088	581,736
Noncontrolling interest in consolidated joint ventures	0	53
Total equity	607,088	581,789
Total liabilities and equity	2,340,378	2,492,940
Common Class A [Member]
Hovnanian Enterprises, Inc. stockholders' equity:
Common stock	62	62
Common Class B [Member]
Hovnanian Enterprises, Inc. stockholders' equity:
Common stock	8	8
Home Building [Member]
ASSETS
Cash and cash equivalents	183,118	434,119
Restricted cash and cash equivalents	8,369	8,431
Inventories:
Sold and unsold homes and lots under development	1,092,347	998,841
Land and land options held for future development or sale	173,134	125,587
Consolidated inventory not owned	198,077	224,758
Total inventories	1,463,558	1,349,186
Investments in and advances to unconsolidated joint ventures	110,592	97,886
Receivables, deposits and notes, net	24,208	27,982
Property and equipment, net	37,441	33,946
Prepaid expenses and other assets	68,127	69,886
Total assets excluding deferred tax assets, net	1,895,413	2,021,436
LIABILITIES AND EQUITY
Nonrecourse mortgages, net of debt issuance costs	99,553	91,539
Accounts payable and other liabilities	360,207	415,480
Customers’ deposits	51,798	51,419
Liabilities from inventory not owned, net of debt issuance costs	114,658	124,254
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)	934,617	1,051,491
Accrued interest	41,472	26,926
Total liabilities excluding income taxes payable	1,602,305	1,761,109
Financial Services [Member]
Inventories:
Total assets excluding deferred tax assets, net	149,633	168,671
LIABILITIES AND EQUITY
Total liabilities excluding income taxes payable	$ 128,402	$ 148,181

Note 11 - Mortgages

3 Months Ended

Jan. 31, 2024

Disclosure of Mortgage Loans [Abstract]

Mortgages

11.Mortgages

Nonrecourse

We have nonrecourse mortgage loans for certain communities totaling $99.6 million and $91.5 million, net of debt issuance costs, at January 31, 2024 and October 31, 2023, respectively, which are secured by the related real property, including any improvements, with an aggregate book value of $313.5 million and $331.6 million, respectively. The weighted-average interest rate on these obligations was 8.7% and 8.5% at January 31, 2024 and October 31, 2023, respectively, and the mortgage loan payments on each community primarily correspond to home deliveries.

Mortgage Loans

K. Hovnanian Mortgage originates mortgage loans primarily from the sale of our homes. Such mortgage loans and related servicing rights are generally sold in the secondary mortgage market within a short period of time. K. Hovnanian Mortgage finances the origination of mortgage loans through various master repurchase agreements, which are recorded in "Financial services" liabilities on the Condensed Consolidated Balance Sheets.

Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”) which is a short-term borrowing facility, was amended on January 31, 2024 to reduce the borrowing limit from $75.0 million to $50.0 million and to extend its maturity to January 31, 2025. 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 Secured Overnight Financing Rate ("SOFR"), plus the applicable margin of 2.125% to 2.375%. As of January 31, 2024 and October 31, 2023, the aggregate principal amount of all borrowings outstanding under the Chase Master Repurchase Agreement was $36.5 million and $31.4 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 March 6, 2024, which we expect to be renewed for a one year term. 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 Bloomberg Short Term Bank Yield Index ("BSBY") rate, plus the applicable margin ranging from 2.125% to 4.5% based on the type of loan and the number of days outstanding on the warehouse line. As of January 31, 2024 and October 31, 2023, the aggregate principal amount of all borrowings outstanding under the Customers Master Repurchase Agreement was $47.3 million and $41.1 million, respectively.

K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Flagstar Bank, N.A. ("Flagstar Master Repurchase Agreement") which is a short-term borrowing facility that provides up to $50.0 million through its maturity on January 10, 2025. 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 SOFR, subject to a floor of 1.0%, plus the applicable margin ranging from 1.82% to 5.0% based on the type of loan and the number of days outstanding on the line. As of January 31, 2024 there were no borrowings outstanding under the Flagstar Master Repurchase Agreement.

K. Hovnanian Mortgage had a secured Master Repurchase Agreement with Comerica Bank (“Comerica Master Repurchase Agreement”) which was a short-term borrowing facility that matured on January 10, 2024. The Comerica Master Repurchase Agreement provided up to $60.0 million on the 15th day of the last month of the Company's fiscal quarters and reverted back to up to $50.0 million 30 days thereafter. The loan was secured by the mortgages held for sale and was repaid when we sold the underlying mortgage loans to permanent investors. Interest was payable monthly at the daily adjusting BSBY rate, subject to a floor of 0.50%, plus the applicable margin of 1.75% or 3.25% based upon the type of loan. At October 31, 2023 the aggregate principal amount of all borrowings outstanding under the Comerica Master Repurchase Agreement was $38.3 million. The borrowings outstanding were paid off at maturity.

The Chase Master Repurchase Agreement, Customers Master Repurchase Agreement and Flagstar 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, 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 January 31, 2024, we believe we were in compliance with the covenants under the Master Repurchase Agreements.

Note 18 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) $ in Thousands	3 Months Ended
	Jan. 31, 2024 USD ($)	Jan. 31, 2023 USD ($)	Oct. 31, 2023 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of Owned Communities Transferred to the Joint Venture		4
Number of Owned Active Communities Transferred to the Joint Venture		1
Proceeds from Transfer of Land to Joint Venture		$ 41,100
Equity Method Investment, Other than Temporary Impairment	$ 0	0
Revenues	594,196	515,366
Home Building [Member] \| Management Fees [Member]
Schedule of Equity Method Investments [Line Items]
Revenues	$ 4,300	$ 3,600
Homebuilding and Land Development Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of Owned Active Communities Transferred to the Joint Venture	7	8
Homebuilding and Land Development Joint Ventures [Member] \| Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	20.00%
Homebuilding and Land Development Joint Ventures [Member] \| Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	50.00%
Corporate Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Advances to Affiliate	$ 1,200		$ 1,400
Revenues	$ 126,425	$ 79,601

Note 18 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures

3 Months Ended

Jan. 31, 2024

Investments in Unconsolidated Homebuilding and Land Development Joint Ventures

Investments in Unconsolidated Homebuilding and Land Development Joint Ventures

18.

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.

During the first quarter of fiscal 2023, we contributed four communities we owned, including one active selling community to a new unconsolidated joint venture for $41.1 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.

	January 31, 2024
				Land
(In thousands)	Homebuilding			Development			Total
Assets:
Cash and cash equivalents	$	116,347		$	768		$	117,115
Inventories		372,833			-			372,833
Other assets		380,995			-			380,995
Total assets	$	870,175		$	768		$	870,943

Liabilities and equity:
Accounts payable and accrued liabilities	$	509,879		$	551		$	510,430
Notes payable		107,782			-			107,782
Total liabilities		617,661			551			618,212
Equity of:
Hovnanian Enterprises, Inc.		109,210			210			109,420
Others		143,304			7			143,311
Total equity		252,514			217			252,731
Total liabilities and equity	$	870,175		$	768		$	870,943
Debt to capitalization ratio		30	%		0	%		30	%

	October 31, 2023
				Land
(In thousands)	Homebuilding			Development			Total
Assets:
Cash and cash equivalents	$	127,547		$	822		$	128,369
Inventories		375,022			-			375,022
Other assets		380,989			-			380,989
Total assets	$	883,558		$	822		$	884,380

Liabilities and equity:
Accounts payable and accrued liabilities	$	524,586		$	605		$	525,191
Notes payable		101,126			-			101,126
Total liabilities		625,712			605			626,317
Equity of:
Hovnanian Enterprises, Inc.		96,281			210			96,491
Others		161,565			7			161,572
Total equity		257,846			217			258,063
Total liabilities and equity	$	883,558		$	822		$	884,380
Debt to capitalization ratio		28	%		0	%		28	%

As of January 31, 2024 and October 31, 2023, we had outstanding advances to unconsolidated joint ventures of $1.2 million and $1.4 million, respectively. These amounts were included in “Accounts payable and accrued liabilities” in the tables above. In some cases, our net investment in unconsolidated joint ventures is less than our proportionate share of equity reflected in the tables above because of differences between asset impairments recorded against our unconsolidated joint venture investments and any impairments recorded in the applicable unconsolidated joint venture. During the three months ended January 31, 2024 and 2023, we did not write-down any of our unconsolidated joint venture investments.

	Three Months Ended January 31, 2024
				Land
(In thousands)	Homebuilding			Development		Total

Revenues	$	126,425		$	-	$	126,425
Cost of sales and expenses		(108,659	)		-		(108,659	)
Joint venture net income	$	17,766		$	-	$	17,766
Our share of net income	$	14,952		$	-	$	14,952

	Three Months Ended January 31, 2023
				Land
(In thousands)	Homebuilding			Development		Total

Revenues	$	79,601		$	-	$	79,601
Cost of sales and expenses		(76,885	)		-		(76,885	)
Joint venture net income	$	2,716		$	-	$	2,716
Our share of net income	$	7,160		$	-	$	7,160

The reason “Our share of net income” in homebuilding joint ventures is higher or lower than the “Joint venture net income” in the tables above is a result of our varying ownership percentages in each investment. For the three months ended January 31, 2024 and 2023, respectively, we had investments in seven and eight unconsolidated joint ventures, respectively, and our ownership in these joint ventures ranged from 20% to over 50% for both periods. Therefore, depending on mix, if the unconsolidated joint ventures in which we have higher sharing percentages are more profitable than our other unconsolidated joint ventures, that results in us having a higher overall percentage of income in the aggregate than would occur if all joint ventures had the same sharing percentage; conversely, if the unconsolidated joint ventures in which we have lower sharing percentages are more profitable than our other unconsolidated joint ventures, that results in us having a lower overall percentage of income in the aggregate than would occur if all joint ventures had the same sharing percentage. For the three months ended January 31, 2024, "Our share of net income" was less than the "Joint venture net income" due to three unconsolidated joint ventures with increased income during the period for which we currently recognize a lower profit-sharing percentage based on the joint venture agreements, partially offset by one unconsolidated joint venture with increased income during the period for which we currently recognize a higher profit-sharing percentage based on the joint venture agreement.

To compensate us for the administrative services we provide as the manager of certain unconsolidated joint ventures, we receive a management fee based on a percentage of the applicable unconsolidated joint ventures' revenues. These management fees, which totaled $4.3 million and $3.6 million for the three months ended January 31, 2024 and 2023, respectively, are recorded in “Selling, general and administrative” homebuilding expenses in the Condensed Consolidated Statements of Operations.

Our unconsolidated joint ventures may obtain separate project specific mortgage financing. Any unconsolidated 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 unconsolidated joint venture entity is considered a VIE 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.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Dividend per share (in dollars per share)	$ 476.56	$ 476.56

Note 18 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Oct. 31, 2023	Oct. 31, 2022
Schedule of Equity Method Investments [Line Items]
Total assets	$ 2,340,378		$ 2,492,940
Total liabilities	1,733,290		1,911,151
Hovnanian Enterprises, Inc.	607,088		581,736
Others	0		53
Total equity	607,088	$ 395,797	581,789	$ 383,051
Total liabilities and equity	2,340,378		2,492,940
Revenues	594,196	515,366
Net income	23,904	18,716
Our share of net income	14,952	7,160
Corporate Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Cash and cash equivalents	117,115		128,369
Inventories	372,833		375,022
Other assets	380,995		380,989
Total assets	870,943		884,380
Accounts payable and accrued liabilities	510,430		525,191
Notes payable	107,782		101,126
Total liabilities	618,212		626,317
Hovnanian Enterprises, Inc.	109,420		96,491
Others	143,311		161,572
Total equity	252,731		258,063
Total liabilities and equity	$ 870,943		$ 884,380
Debt to capitalization ratio	30.00%		28.00%
Revenues	$ 126,425	79,601
Cost of sales and expenses	(108,659)	(76,885)
Net income	17,766	2,716
Our share of net income	14,952	7,160
Homebuilding Joint Venture [Member] \| Corporate Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Cash and cash equivalents	116,347		$ 127,547
Inventories	372,833		375,022
Other assets	380,995		380,989
Total assets	870,175		883,558
Accounts payable and accrued liabilities	509,879		524,586
Notes payable	107,782		101,126
Total liabilities	617,661		625,712
Hovnanian Enterprises, Inc.	109,210		96,281
Others	143,304		161,565
Total equity	252,514		257,846
Total liabilities and equity	$ 870,175		$ 883,558
Debt to capitalization ratio	30.00%		28.00%
Revenues	$ 126,425	79,601
Cost of sales and expenses	(108,659)	(76,885)
Net income	17,766	2,716
Our share of net income	14,952	7,160
Land Development Joint Venture [Member] \| Corporate Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Cash and cash equivalents	768		$ 822
Inventories	0		0
Other assets	0		0
Total assets	768		822
Accounts payable and accrued liabilities	551		605
Notes payable	0		0
Total liabilities	551		605
Hovnanian Enterprises, Inc.	210		210
Others	7		7
Total equity	217		217
Total liabilities and equity	$ 768		$ 822
Debt to capitalization ratio	0.00%		0.00%
Revenues	$ 0	0
Cost of sales and expenses	0	0
Net income	0	0
Our share of net income	$ 0	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

Jan. 31, 2024

Jan. 31, 2023

Revenues

$ 594,196

$ 515,366

Inventory impairments and land option write-offs

302

477

Corporate general and administrative

37,133

25,490

Other interest

^[1]

10,451

15,093

Other expenses, net

551

386

Total expenses

577,956

504,479

Gain on extinguishment of debt, net

1,371

Income from unconsolidated joint ventures

14,952

7,160

Income before income taxes

32,563

18,047

Tax provision (benefit)

8,659

(669)

Net income

23,904

18,716

Less: preferred stock dividends

2,669

Net income available to common stockholders

$ 21,235

$ 16,047

Net income per common share (in dollars per share)

$ 3.11

$ 2.37

Weighted-average number of common shares outstanding basic (in shares)

6,496

6,186

Net income per common share (in dollars per share)

$ 2.91

$ 2.26

Weighted-average number of common shares outstanding (in shares)

6,937

6,468

State and Local Jurisdiction [Member]

Tax provision (benefit)

$ 2,206

$ 2,211

Domestic Tax Authority [Member]

Tax provision (benefit)

6,453

(2,880)

Home Building [Member]

Revenues

578,928

503,202

Cost of sales, excluding interest

449,213

391,040

Cost of sales interest

19,898

15,022

Inventory impairments and land option write-offs

302

477

Total cost of sales

469,413

406,539

Selling, general and administrative

48,937

47,918

Total expenses excluding Corporate general and administrative, Other interest and Other expenses, net

518,350

454,457

Home Building [Member] | Sale of homes [Member]

Revenues

573,636

499,645

Home Building [Member] | Land Sales and Other Revenues [Member]

Revenues

5,292

3,557

Financial Services [Member]

Revenues

15,268

12,164

Total expenses excluding Corporate general and administrative, Other interest and Other expenses, net

$ 11,471

$ 9,053

[1]

Note 17 - Operating and Reporting Segments (Tables)

3 Months Ended

Jan. 31, 2024

Operating and Reporting Segments

Schedule of financial information relating to our reportable segments

	Three Months Ended
	January 31,
(In thousands)	2024			2023
Revenues:
Northeast	$	191,440		$	211,462
Southeast		106,010			73,794
West		278,457			215,734
Total homebuilding		575,907			500,990
Financial services		15,268			12,164
Corporate and unallocated		3,021			2,212
Total revenues	$	594,196		$	515,366
Income before income taxes:
Northeast	$	35,909		$	28,512
Southeast		14,875			11,623
West		20,592			9,889
Total homebuilding		71,376			50,024
Financial services		3,797			3,111
Corporate and unallocated (1)		(42,610	)		(35,088	)
Income before income taxes	$	32,563		$	18,047

(1)

Corporate and unallocated for the three months ended January 31, 2024 included corporate general and administrative expenses of $37.1 million, interest expense of $3.7 million (a component of Other interest in our Condensed Consolidated Statements of Operations), $3.2 million of other net expenses and $1.4 of gain on extinguishment of debt. Corporate and unallocated for the three months ended January 31, 2023 included corporate general and administrative expenses of $25.5 million, interest expense of $6.6 million, and $3.0 million of other net expenses.

	January 31,		October 31,
(In thousands)	2024		2023

Assets:
Northeast	$	524,029	$	483,784
Southeast		333,582		286,701
West		773,215		733,318
Total homebuilding		1,630,826		1,503,803
Financial services		149,633		168,671
Corporate and unallocated		559,919		820,466
Total assets	$	2,340,378	$	2,492,940

Note 14 - Preferred Stock

3 Months Ended

Jan. 31, 2024

Preferred Stock

Preferred Stock

14.

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 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. We paid dividends of $2.7 million on the Series A preferred stock for each of the three months ended January 31, 2024 and 2023.

Note 20 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2024	Oct. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale mortgages unpaid principal	$ 98,200	$ 130,400
Senior Secured Revolving Credit Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term line of credit, total	0	$ 0
Loan Origination Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loan applications in process	$ 569,200
Loan Origination Commitments [Member] \| Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of days in committment (day)	60 days
Interest Rate Committed Loan Applications [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate committed loan applications	$ 71,800
The 11.75% Senior Secured 1.25 Lien Notes Due 2029 [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, interest rate, stated percentage	11.75%

Note 3 - Interest

3 Months Ended

Jan. 31, 2024

Interest

Interest

3.Interest

Interest costs incurred, expensed and capitalized were as follows:

	Three Months Ended
	January 31,
(In thousands)	2024			2023
Interest capitalized at beginning of period	$	52,060		$	59,600
Plus interest incurred(1)		31,961			34,326
Less cost of sales interest expensed		(19,898	)		(15,022	)
Less other interest expensed(2)		(10,451	)		(15,093	)
Less interest contributed to unconsolidated joint venture(3)		-			(3,016	)
Interest capitalized at end of period(4)	$	53,672		$	60,795

(1)

Data does not include interest incurred by our mortgage and finance subsidiaries.

(2)

(3)	Represents capitalized interest which was included as part of the assets contributed to joint ventures, as discussed in Note 18. There was no impact to the Condensed Consolidated Statement of Operations as a result of these transactions.
(4)	Capitalized interest amounts are shown gross before allocating a portion of impairments, if any, to capitalized interest.

Note 17 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($)
$ in Thousands

3 Months Ended

Jan. 31, 2024

Jan. 31, 2023

Segment Reporting Information [Line Items]

Revenues

$ 594,196

$ 515,366

Income (loss) before income taxes

32,563

18,047

Corporate, Non-Segment [Member]

Segment Reporting Information [Line Items]

Revenues

3,021

2,212

Income (loss) before income taxes

^[1]

(42,610)

(35,088)

Home Building [Member] | Operating Segments [Member]

Segment Reporting Information [Line Items]

Revenues

575,907

500,990

Income (loss) before income taxes

71,376

50,024

Home Building [Member] | Northeast [Member] | Operating Segments [Member]

Segment Reporting Information [Line Items]

Revenues

191,440

211,462

Income (loss) before income taxes

35,909

28,512

Home Building [Member] | Southeast [Member] | Operating Segments [Member]

Segment Reporting Information [Line Items]

Revenues

106,010

73,794

Income (loss) before income taxes

14,875

11,623

Home Building [Member] | West [Member] | Operating Segments [Member]

Segment Reporting Information [Line Items]

Revenues

278,457

215,734

Income (loss) before income taxes

20,592

9,889

Financial Services [Member] | Operating Segments [Member]

Segment Reporting Information [Line Items]

Revenues

15,268

12,164

Income (loss) before income taxes

$ 3,797

$ 3,111

[1]

Note 12 - Senior Notes and Credit Facilities

3 Months Ended

Jan. 31, 2024

Senior Notes and Credit Facilities

Senior Notes and Credit Facilities

12.

Senior Notes and Credit Facilities

Senior notes and credit facilities balances as of January 31, 2024 and October 31, 2023, were as follows:

	January 31,			October 31,
(In thousands)	2024			2023
Senior Secured Notes:
10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 (1)	$	-		$	113,502
8.0% Senior Secured 1.125 Lien Notes due September 30, 2028		225,000			225,000
11.75% Senior Secured 1.25 Lien Notes due September 30, 2029		430,000			430,000
Total Senior Secured Notes	$	655,000		$	768,502
Senior Notes:
13.5% Senior Notes due February 1, 2026	$	90,590		$	90,590
5.0% Senior Notes due February 1, 2040		90,120			90,120
Total Senior Notes	$	180,710		$	180,710
Senior Unsecured Term Loan Credit Facility due February 1, 2027	$	39,551		$	39,551
Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028	$	81,498		$	81,498
Senior Secured Revolving Credit Facility (2)	$	-		$	-
Subtotal senior notes and credit facilities	$	956,759		$	1,070,261
Net (discounts) premiums	$	(18,230	)	$	(14,563	)
Unamortized debt issuance costs	$	(3,912	)	$	(4,207	)
Total senior notes and credit facilities, net of discounts, premiums and unamortized debt issuance costs	$	934,617		$	1,051,491

(1) On November 15, 2023, K. Hovnanian redeemed all of its $113.5 million aggregate principal amount of 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025.

General

Except for K. Hovnanian, the issuer of the notes and borrower under the Credit Facilities (as defined below), our home mortgage subsidiaries, certain of our title insurance subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures, we and each of our subsidiaries are guarantors of the Credit Facilities, the senior secured notes and senior notes outstanding at January 31, 2024 (collectively, the “Notes Guarantors”).

The credit agreements governing the term loans and revolving credit facilities (collectively, the “Credit Facilities”) and the indentures governing the senior secured and senior notes (together, the “Debt Instruments”) outstanding at January 31, 2024 do not contain any financial maintenance covenants, but do contain restrictive covenants that limit, among other things, the ability of HEI and certain of its subsidiaries, including K. Hovnanian, to incur additional indebtedness, pay dividends and make distributions on common and preferred stock, repay/repurchase certain indebtedness prior to its respective stated maturity, repurchase (including through exchanges) 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 of their assets and enter into certain transactions with affiliates. The Debt Instruments also contain customary events of default which would permit the lenders or holders thereof to exercise remedies with respect to the collateral (as applicable), declare the loans (the “Unsecured Term Loans”) made under the Senior Unsecured Term Loan Credit Facility due February 1, 2027 (the “Unsecured Term Loan Facility”), loans (the “Secured Term Loans”) made under the Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028 (the “Secured Term Loan Facility”) and loans (the “Secured Revolving Loans”) made under the Senior Secured Revolving Credit Agreement due June 30, 2026 (the “Secured Credit Agreement”) or notes to be immediately due and payable if not cured within applicable grace periods, including the failure to make timely payments on the Unsecured Term Loans, Secured Term Loans, Secured Revolving Loans or 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 Unsecured Term Loans, Secured Term Loans and Secured Revolving Loans, material inaccuracy of representations and warranties and with respect to the Unsecured Term Loans, Secured Term Loans and Secured Revolving Loans, a change of control, and, with respect to the Secured Term Loans, Secured Revolving Loans and senior secured notes, the failure of the documents granting security for the obligations under the secured Debt Instruments to be in full force and effect, and the failure of the liens on any material portion of the collateral securing the obligations under the secured Debt Instruments to be valid and perfected. As of January 31, 2024, we believe we were in compliance with the covenants of the Debt Instruments.

If our consolidated fixed charge coverage ratio is less than 2.0 to 1.0, as defined in the applicable Debt Instrument, we are restricted from making certain payments and dividends (in the case of certain of such payments, our secured debt leverage ratio must also be less than 4.0 to 1.0), and from incurring indebtedness other than certain permitted indebtedness and nonrecourse indebtedness. Beginning as of October 31, 2021, as a result of our improved operating results, we were no longer restricted from paying dividends. As such, we made dividend payments of $2.7 million to preferred shareholders in every quarter since the first quarter of fiscal 2022. Dividends on the Series A preferred stock are not cumulative and, accordingly, if for any reason we do not declare a dividend on the Series A preferred stock for a quarterly dividend period (regardless of our availability of funds), holders of the Series A Preferred Stock will have no right to receive a dividend for that period, and we will have no obligation to pay a dividend for that period.

Under the terms of our Debt Instruments, we have the right to make certain redemptions and prepayments and, depending on market conditions, our strategic priorities and covenant restrictions, may do so from time to time. We also continue to actively analyze and evaluate our capital structure and explore transactions to simplify our capital structure and to strengthen our balance sheet, including those that reduce leverage, interest rates and/or extend maturities, and will seek to do so with the right opportunity. We may also continue to make debt or equity purchases and/or exchanges from time to time through tender offers, exchange offers, redemptions, open market purchases, private transactions, or otherwise, or seek to raise additional debt or equity capital, depending on market conditions and covenant restrictions.

Fiscal 2024

On November 15, 2023, K. Hovnanian redeemed in full all of the $113.5 million aggregate principal amount of its 10.0% Senior Secured 1.75 Lien Notes due 2025 for a redemption price of $119.2 million, which included accrued and unpaid interest. This redemption resulted in a gain on extinguishment of debt of $1.4 million for the three months ended January 31, 2024, including the write-off of unamortized premiums, debt issuance costs and fees. The gain from the redemption is included in the Condensed Consolidated Statement of Operations as “Gain on extinguishment of debt, net".

Secured Obligations

The Secured Credit Agreement provides for up to $125.0 million in aggregate amount of Secured Revolving Loans to be used for general corporate purposes, upon the terms and subject to the conditions set forth therein. Secured Revolving Loans are to be borrowed by K. Hovnanian and guaranteed by the Notes Guarantors. The revolving loans under the Secured Credit Agreement have a maturity of June 30, 2026 and borrowings bear interest, at K. Hovnanian’s option, at either (i) SOFR (subject to a floor of 3.00%) plus an applicable margin of 4.5% or (ii) an alternate base rate (subject to a floor of 4.0%) plus an applicable margin of 3.5%. In addition, K. Hovnanian pays an unused commitment fee on the undrawn revolving commitments at a rate of 1.0% per annum.

The 8.0 % Senior Secured 1.125 Lien Notes due 2028 (the "New 1.125 Lien Notes") have a maturity of September 30, 2028 and bear interest at a rate of 8.0% per annum payable semi-annually on March 30 and September 30 of each year to holders of record at the close of business on March 15 and September 15, as the case may be, immediately preceding such interest payment dates. The New 1.125 Lien Notes are redeemable in whole or in part at K. Hovnanian’s option at any time prior to September 30, 2025 at a redemption price equal to 100% of their principal amount plus an applicable “Make Whole Amount”. K. Hovnanian may also redeem some or all of the New 1.125 Lien Notes at 104.0% of their principal amount commencing on September 30, 2025, at 102.0% of their principal amount commencing on September 30, 2026 and at 100.0% of their principal amount commencing September 30, 2027. In addition, K. Hovnanian may also redeem up to 35.0% of the aggregate principal amount of New 1.125 Lien Notes prior to September 30, 2025 with the net cash proceeds from certain equity offerings at 108.0% of their principal amount.

The 11.75% Senior Secured 1.25 Lien Notes due 2029 (the "New 1.25 Lien Notes") have a maturity of September 30, 2029 and bear interest at a rate of 11.75% per annum payable semi-annually on March 30 and September 30 of each year to holders of record at the close of business on March 15 and September 15, as the case may be, immediately preceding such interest payment dates. The New 1.25 Lien Notes are redeemable in whole or in part at K. Hovnanian’s option at any time prior to March 30, 2026 at a redemption price equal to 100% of their principal amount plus an applicable “Make Whole Amount”. K. Hovnanian may also redeem some or all of the New 1.25 Lien Notes at 105.875% of their principal amount commencing on March 30, 2026, at 102.9375% of their principal amount commencing on September 30, 2027 and at 100.0% of their principal amount commencing on September 30, 2028. In addition, K. Hovnanian may also redeem up to 35.0% of the aggregate principal amount of New 1.25 Lien Notes prior to March 30, 2026 with the net cash proceeds from certain equity offerings at 111.75% of their principal amount.

The secured term loans under the Secured Term Loan Facility (the “Secured Term Loans”) bear interest at a rate equal to 10.0% per annum and will mature on January 31, 2028, with interest payable in arrears on the last business day of each fiscal quarter. At any time and from time to time prior to November 15, 2023, K. Hovnanian may voluntarily prepay some or all of the Secured Term Loans at a prepayment price equal to 102.5% of their principal amount and at any time and from time to time after November 15, 2023, K. Hovnanian may voluntarily prepay some or all of the Secured Term Loans at a prepayment price equal to 100.0% of their principal amount.

Each series of secured notes and the guarantees thereof, the Secured Term Loans and the guarantees thereof and the Secured Credit Agreement and the guarantees thereof are secured by the same assets. Among the secured debt (in each case, with respect to the assets securing such debt): the liens securing the Secured Credit Agreement are senior to the liens securing all of K. Hovnanian’s other secured notes and the Secured Term Loan; the liens securing the New 1.125 Lien Notes are senior to the liens securing the New 1.25 Lien Notes, the Secured Term Loans and any other future secured obligations that are junior in priority with respect to the assets securing the New 1.125 Lien Notes; the liens securing the New 1.25 Lien Notes are senior to the liens securing the Secured Term Loans and any other future secured obligations that are junior in priority with respect to the assets securing the New 1.25 Lien Notes; and the liens securing the Secured Term Loans are senior to any other future secured obligations that are junior in priority with respect to the assets securing the Secured Term Loans.

As of January 31, 2024, the collateral securing the Secured Credit Agreement, the Secured Term Loan Facility and the senior secured notes included (1) $190.1 million of cash and cash equivalents, which included $5.0 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); (2) $592.5 million aggregate book value of real property, 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 (3) equity interests in joint venture holding companies with an aggregate book value of $109.2 million.

Unsecured Obligations

The 13.5% Senior Notes due 2026 (the “13.5% 2026 Notes”) bear interest at 13.5% per annum and mature on February 1, 2026. Interest on the 13.5% 2026 Notes is payable semi-annually on February 1 and August 1 of each year to holders of record at the close of business on January 15 or July 15, as the case may be, immediately preceding each such interest payment date. The 13.5% 2026 Notes are redeemable in whole or in part at K. Hovnanian’s option at any time prior to February 1, 2025 at a redemption price equal to 100% of their principal amount plus an applicable “Make Whole Amount”. At any time and from time to time on or after February 1, 2025, K. Hovnanian may also redeem some or all of the 13.5% 2026 Notes at a redemption price equal to 100.0% of their principal amount.

The 5.0% Senior Notes due 2040 (the “5.0% 2040 Notes”) bear interest at 5.0% per annum and mature on February 1, 2040. Interest on the 5.0% 2040 Notes is payable semi-annually on February 1 and August 1 of each year to holders of record at the close of business on January 15 or July 15, as the case may be, immediately preceding each such interest payment date. At any time and from time to time, K. Hovnanian may redeem some or all of the 5.0% 2040 Notes at a redemption price equal to 100.0% of their principal amount.

The Unsecured Term Loans bear interest at a rate equal to 5.0% per annum and interest is payable in arrears on the last business day of each fiscal quarter. The Unsecured Term Loans will mature on February 1, 2027.

Other

We have certain stand-alone cash collateralized letter of credit agreements and facilities under which there was a total of $4.8 million and $4.9 million letters of credit outstanding at January 31, 2024 and October 31, 2023, respectively. 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 January 31, 2024 and October 31, 2023, the amount of cash collateral in these segregated accounts was $5.0 million and $5.1 million, respectively, which is reflected in “Restricted cash and cash equivalents” on the Condensed Consolidated Balance Sheets.

Note 17 - Operating and Reporting Segments

3 Months Ended

Jan. 31, 2024

Operating and Reporting Segments

Operating and Reporting Segments

17.

Operating and Reporting Segments

HEI’s operating segments are components of the Company’s 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 resource allocations.

We currently have homebuilding operations in 13 states that are aggregated into reportable segments based primarily upon geographic proximity.

HEI’s reportable segments consist of the following three homebuilding segments and a financial services segment.

Homebuilding:

	(1)	Northeast (Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia and West Virginia)
	(2)	Southeast (Florida, Georgia and South Carolina)
	(3)	West (Arizona, California and Texas)

Operations of the 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 financial services segment include mortgage banking and title services provided to the homebuilding operations’ customers. Our financial services subsidiaries do not typically retain or service mortgages that we originate but sell the mortgages and related servicing rights to investors.

Corporate and unallocated primarily represents operations at our headquarters in New Jersey. This includes our executive offices, information services, human resources, corporate accounting, training, treasury, process redesign, internal audit, construction services, 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 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 (loss) 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 corporate general and administrative expenses.

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 our reportable segments was as follows:

	Three Months Ended
	January 31,
(In thousands)	2024			2023
Revenues:
Northeast	$	191,440		$	211,462
Southeast		106,010			73,794
West		278,457			215,734
Total homebuilding		575,907			500,990
Financial services		15,268			12,164
Corporate and unallocated		3,021			2,212
Total revenues	$	594,196		$	515,366
Income before income taxes:
Northeast	$	35,909		$	28,512
Southeast		14,875			11,623
West		20,592			9,889
Total homebuilding		71,376			50,024
Financial services		3,797			3,111
Corporate and unallocated (1)		(42,610	)		(35,088	)
Income before income taxes	$	32,563		$	18,047

(1)

	January 31,		October 31,
(In thousands)	2024		2023

Assets:
Northeast	$	524,029	$	483,784
Southeast		333,582		286,701
West		773,215		733,318
Total homebuilding		1,630,826		1,503,803
Financial services		149,633		168,671
Corporate and unallocated		559,919		820,466
Total assets	$	2,340,378	$	2,492,940

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Note 6 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Product Warranty Liability [Line Items]
Balance, beginning of period	$ 98,919	$ 97,718
Charges incurred during the period	(6,644)	(8,802)
Changes to pre-existing reserves	2,146	(729)
Balance, end of period	99,836	91,067
Selling, General and Administrative Expenses [Member]
Product Warranty Liability [Line Items]
Additions	2,547	1,577
Cost of Sales [Member]
Product Warranty Liability [Line Items]
Additions	$ 2,868	$ 1,303

Note 16 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Operating Loss Carryforwards [Line Items]
Income Tax Expense (Benefit)	$ 8,659	$ (669)
Energy Efficient Tax Credit [Member]
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate Reconciliation, Tax Credit, Amount		$ 6,200

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 9 - Leases

3 Months Ended

Jan. 31, 2024

Leases

Leases

9.	Leases

We rent certain office space for use in our operations. Our lease population at January 31, 2024 is comprised of operating leases where we are the lessee, primarily for our corporate office and division offices.

Lease costs are included in our Condensed Consolidated Statements of Operations, primarily in "Selling, general and administrative" homebuilding expenses, and payments on our lease liabilities are presented in the table below.

	Three Months Ended
	January 31,
(In thousands)	2024		2023
Operating lease costs	$	2,633	$	2,859
Cash payments on lease liabilities	$	2,238	$	2,386

Operating right-of-use lease assets ("ROU assets") are included in "Prepaid expenses and other assets" on our Condensed Consolidated Balance Sheets, while lease liabilities are included in "Accounts payable and other liabilities". During the three months ended January 31, 2024, the Company recorded a net increase to both its ROU assets and lease liabilities of $0.3 million as a result of a new lease that commenced during the period. The following table contains additional information about our leases:

(In thousands)	January 31, 2024			October 31, 2023
ROU assets	$	23,833		$	25,745
Lease liabilities	$	25,174		$	26,470
Weighted-average remaining lease term (in years)		5.1			5.1
Weighted-average discount rate		10.0	%		10.0	%

Maturities of our operating lease liabilities as of January 31, 2024 are as follows:

Fiscal Year Ending October 31,	(In thousands)
2024 (excluding the three months ended January 31, 2024)	$	6,341
2025		8,100
2026		6,610
2027		4,389
2028		1,838
2029 and thereafter		4,871
Total operating lease payments (1)		32,149
Less: imputed interest		(6,975	)
Present value of operating lease liabilities	$	25,174

(1) Lease payments include options to extend lease terms that are reasonably certain of being executed and exclude $2.9 million of legally binding minimum lease payments for office leases signed but not yet commenced as of January 31, 2024. The related ROU assets and operating lease liabilities are not reflected on the Company's Condensed Consolidated Balance Sheets.

Note 12 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) (Parentheticals)	3 Months Ended	12 Months Ended
	Jan. 31, 2024	Oct. 31, 2023
Senior Unsecured Term Loan Credit Facility Due 2027 [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	Feb. 01, 2027	Feb. 01, 2027
The 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 [Member] \| Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		10.00%
Debt Instrument, Maturity Date		Nov. 15, 2025
The 13.5% Senior Notes Due 2026 [Member] \| Unsecured Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	13.50%	13.50%
Debt Instrument, Maturity Date	Feb. 01, 2026	Feb. 01, 2026
The 5.0% Senior Notes due 2040 [Member] \| Unsecured Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	5.00%	5.00%
Debt Instrument, Maturity Date	Feb. 01, 2040	Feb. 01, 2040
The 10.0% Senior Secured 1.75 Lien Term Loans Due 2028 [Member] \| Senior Secured Term Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	Jan. 31, 2028	Jan. 31, 2028
The 11.75% Senior Secured 1.25 Lien Notes Due 2029 [Member] \| Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	11.75%	11.75%
Debt Instrument, Maturity Date	Sep. 30, 2029	Sep. 30, 2029
The 8.0% Senior Secured 1.125 Lien Notes Due 2028 [Member] \| Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	8.00%	8.00%
Debt Instrument, Maturity Date	Sep. 30, 2028	Sep. 30, 2028

Note 20 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands

Jan. 31, 2024

Oct. 31, 2023

Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Mortgage loans held for sale

^[1]

$ 99,046

$ 130,235

[1]	The aggregate unpaid principal balance was $98.2 million and $130.4 million at January 31, 2024 and October 31, 2023, respectively.

Note 18 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables)

3 Months Ended

Jan. 31, 2024

Investments in Unconsolidated Homebuilding and Land Development Joint Ventures

Equity Method Investments [Table Text Block]

	January 31, 2024
				Land
(In thousands)	Homebuilding			Development			Total
Assets:
Cash and cash equivalents	$	116,347		$	768		$	117,115
Inventories		372,833			-			372,833
Other assets		380,995			-			380,995
Total assets	$	870,175		$	768		$	870,943

Liabilities and equity:
Accounts payable and accrued liabilities	$	509,879		$	551		$	510,430
Notes payable		107,782			-			107,782
Total liabilities		617,661			551			618,212
Equity of:
Hovnanian Enterprises, Inc.		109,210			210			109,420
Others		143,304			7			143,311
Total equity		252,514			217			252,731
Total liabilities and equity	$	870,175		$	768		$	870,943
Debt to capitalization ratio		30	%		0	%		30	%

	October 31, 2023
				Land
(In thousands)	Homebuilding			Development			Total
Assets:
Cash and cash equivalents	$	127,547		$	822		$	128,369
Inventories		375,022			-			375,022
Other assets		380,989			-			380,989
Total assets	$	883,558		$	822		$	884,380

Liabilities and equity:
Accounts payable and accrued liabilities	$	524,586		$	605		$	525,191
Notes payable		101,126			-			101,126
Total liabilities		625,712			605			626,317
Equity of:
Hovnanian Enterprises, Inc.		96,281			210			96,491
Others		161,565			7			161,572
Total equity		257,846			217			258,063
Total liabilities and equity	$	883,558		$	822		$	884,380
Debt to capitalization ratio		28	%		0	%		28	%

	Three Months Ended January 31, 2024
				Land
(In thousands)	Homebuilding			Development		Total

Revenues	$	126,425		$	-	$	126,425
Cost of sales and expenses		(108,659	)		-		(108,659	)
Joint venture net income	$	17,766		$	-	$	17,766
Our share of net income	$	14,952		$	-	$	14,952

	Three Months Ended January 31, 2023
				Land
(In thousands)	Homebuilding			Development		Total

Revenues	$	79,601		$	-	$	79,601
Cost of sales and expenses		(76,885	)		-		(76,885	)
Joint venture net income	$	2,716		$	-	$	2,716
Our share of net income	$	7,160		$	-	$	7,160

Note 12 - Senior Notes and Credit Facilities (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Nov. 15, 2023	Jan. 31, 2024	Jan. 31, 2023	Oct. 31, 2023
Debt Instrument [Line Items]
Debt Covenant Fixed Charge Coverage Ratio Minimum		2
Secured Debt Leverage Ratio		4
Dividends Payable		$ 2,700
Repayments of Senior Debt		113,502	$ 0
Gain (Loss) on Extinguishment of Debt		1,371	$ 0
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member]
Debt Instrument [Line Items]
Letters of Credit Outstanding, Amount		4,800		$ 4,900
Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] \| Restricted Cash [Member]
Debt Instrument [Line Items]
Debt Instrument, Collateral Amount		5,000		$ 5,100
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] \| Cash and Cash Equivalents Collateral [Member]
Debt Instrument [Line Items]
Debt Instrument, Collateral Amount		190,100
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] \| Restricted Cash [Member]
Debt Instrument [Line Items]
Debt Instrument, Collateral Amount		5,000
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] \| Real Property [Member]
Debt Instrument [Line Items]
Debt Instrument, Collateral Amount		592,500
The Secured Credit Facility, the New Secured Notes, and the Second Lien Notes [Member] \| Equity Interests in Joint Venture Holding Companies Collateral [Member]
Debt Instrument [Line Items]
Debt Instrument, Collateral Amount		109,200
Senior Secured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 125,000
Line of Credit Facility, Unused Commitment Fee Rate		1.00%
Senior Secured Revolving Credit Facility [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Variable Rate Floor		3.00%
Line of Credit Facility, Applicable Margin		4.50%
Senior Secured Revolving Credit Facility [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Applicable Margin		3.50%
Senior Secured Revolving Credit Facility [Member] \| Alternate Base Rate Member
Debt Instrument [Line Items]
Line of Credit Facility, Variable Rate Floor		4.00%
Line of Credit Facility, Applicable Margin		3.50%
The 10.5% Senior Secured 1.25 Lien Notes due February 15, 2026 [Member] \| Senior Secured Notes [Member] \| Redemption With Net Cash Proceeds From Certain Equity Offerings Member
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		111.75%
The 10.0% Senior Secured 1.75 Lien Notes due November 15, 2025 [Member] \| Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage				10.00%
Senior Secured 1.75 Lien Term Loan Credit Facility Due January 31, 2028 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		10.00%
Senior Secured 1.75 Lien Term Loan Credit Facility Due January 31, 2028 [Member] \| After November 15, 2023 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%
Senior Secured 1.75 Lien Term Loan Credit Facility Due January 31, 2028 [Member] \| Before Nov 15, 2023 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		102.50%
The 13.5% Senior Notes Due 2026 [Member] \| Unsecured Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		13.50%		13.50%
The 13.5% Senior Notes Due 2026 [Member] \| Unsecured Senior Notes [Member] \| Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%
The 13.5% Senior Notes Due 2026 [Member] \| Unsecured Senior Notes [Member] \| Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%
The 5.0% Senior Notes due 2040 [Member] \| Unsecured Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		5.00%		5.00%
The 5.0% Senior Notes due 2040 [Member] \| Unsecured Senior Notes [Member] \| Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%
The 10.0% Senior Secured 1.75 Lien Notes due 2025 [Member] \| Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	10.00%
Debt Instrument, Redeemed, Face Amount	$ 113,500
Repayments of Senior Debt	$ 119,200
Gain (Loss) on Extinguishment of Debt		$ 1,400
The 8.0% Senior Secured 1.125 Lien Notes Due 2028 [Member] \| Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		8.00%		8.00%
The 11.75% Senior Secured 1.25 Lien Notes Due 2029 [Member] \| Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		11.75%		11.75%
The 11.75% Senior Secured 1.25 Lien Notes Due 2029 [Member] \| Senior Secured Notes [Member] \| Principal Commencing September 30, 2027 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		102.9375%
The 11.75% Senior Secured 1.25 Lien Notes Due 2029 [Member] \| Senior Secured Notes [Member] \| Redeemable Prior to March 30, 2026 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed		35.00%
The 11.75% Senior Secured 1.25 Lien Notes Due 2029 [Member] \| Senior Secured Notes [Member] \| Principal Commencing March 30, 2026 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		105.875%
The 11.75% Senior Secured 1.25 Lien Notes Due 2029 [Member] \| Senior Secured Notes [Member] \| Principal Commencing September 30, 2028 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%
The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member] \| Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		8.00%		8.00%
The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member] \| Senior Secured Notes [Member] \| Redeemable Prior to September 30, 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed		35.00%
The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member] \| Senior Secured Notes [Member] \| Principal Commencing September 30, 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		104.00%
The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member] \| Senior Secured Notes [Member] \| Principal Commencing September 30, 2026 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		102.00%
The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member] \| Senior Secured Notes [Member] \| Principal Commencing September 30, 2027 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%
The 8.0% Senior Secured 1.125 Lien Notes due September 30, 2028 [Member] \| Senior Secured Notes [Member] \| Redemption With Net Cash Proceeds From Certain Equity Offerings Member
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		108.00%

Note 16 - Income Taxes

3 Months Ended

Jan. 31, 2024

Income Taxes

Income Taxes

16.

Income Taxes

For the three months ended January 31, 2024, we recorded income tax expense of $8.7 million. The expense was primarily driven by federal and state tax expense on income before income taxes and permanent differences, partially offset by the generation of energy home credits. The federal tax expense is not paid in cash as it is offset by the use of our existing NOL carryforwards.

For the three months ended January 31, 2023, we recorded income tax benefit of $0.7 million. The benefit was primarily due to $6.2 million benefit of energy efficient tax credits on homes closed in the prior fiscal year, which was offset by federal and state tax expense as a result of income before income taxes.

The Company recognizes deferred income taxes for deferred tax benefits arising from NOL carryforwards and temporary differences between book and tax income which will be recognized in future years as an offset against future taxable income. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in estimate of our deferred tax assets (“DTAs”) that may be realized in the future. At January 31, 2024, the Company has determined that it is more likely than not that sufficient taxable income will be generated in the future to realize its DTAs, net of any valuation allowance.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
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-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
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-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
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-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jan. 31, 2024	Oct. 31, 2023
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000	100,000
Preferred stock, shares issued (in shares)	5,600	5,600
Preferred stock, shares outstanding (in shares)	5,600	5,600
Preferred stock, liquidation preference	$ 140,000	$ 140,000
Common Class A [Member]
Common stock, shares authorized (in shares)	16,000,000	16,000,000
Common stock, shares issued (in shares)	6,247,939	6,247,308
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares held in Treasury (in shares)	901,379	901,379
Common Class B [Member]
Common stock, shares authorized (in shares)	2,400,000	2,400,000
Common stock, shares issued (in shares)	776,734	776,750
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares held in Treasury (in shares)	27,669	27,669

Document And Entity Information - shares

3 Months Ended

Jan. 31, 2024

Feb. 28, 2024

Document Information [Line Items]

Entity Central Index Key

0000357294

Entity Registrant Name

HOVNANIAN ENTERPRISES INC

Amendment Flag

false

Current Fiscal Year End Date

--10-31

Document Fiscal Period Focus

Document Fiscal Year Focus

2024

Document Type

10-Q

Document Quarterly Report

true

Document Period End Date

Jan. 31, 2024

Document Transition Report

false

Entity File Number

1-8551

Entity Incorporation, State or Country Code

Entity Tax Identification Number

22-1851059

Entity Address, Address Line One

90 Matawan Road, 5th Floor

Entity Address, City or Town

Matawan

Entity Address, State or Province

Entity Address, Postal Zip Code

07747

City Area Code

732

Local Phone Number

747-7800

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

Entity Shell Company

false

Preferred Stock Purchase Rights [Member]

Document Information [Line Items]

Title of 12(b) Security

^[1]

Preferred Stock Purchase Rights

Security Exchange Name

NYSE

No Trading Symbol Flag

true

Common Class B [Member]

Document Information [Line Items]

Entity Common Stock, Shares Outstanding

749,065

Common Class A [Member]

Document Information [Line Items]

Title of 12(b) Security

Class A Common Stock, $0.01 par value per share

Trading Symbol

HOV

Security Exchange Name

NYSE

Entity Common Stock, Shares Outstanding

5,346,595

Depository Shares [Member]

Document Information [Line Items]

Title of 12(b) Security

Depositary Shares each representing 1/1,000th of a share of 7.625% Series A Preferred Stock

Trading Symbol

HOVNP

Security Exchange Name

NASDAQ

[1]

Each share of Common Stock includes an associated Preferred Stock Purchase Right. Each Preferred Stock Purchase Right initially represents the right, if such Preferred Stock Purchase Right becomes exercisable, to purchase from the Company one ten-thousandth of a share of its Series B Junior Preferred Stock for each share of Common Stock. The Preferred Stock Purchase Rights currently cannot trade separately from the underlying Common Stock.

Note 1 - Basis of Presentation (Details Textual)	3 Months Ended
Note 1 - Basis of Presentation (Details Textual)	Jan. 31, 2024
Basis of Presentation
Noncontrolling Interest, Description	Noncontrolling interest represents the proportionate equity interest in a consolidated joint venture that is not 100% owned by the Company directly or indirectly, which we sold our membership interest in during the first quarter of fiscal 2024.
Percentage of equity interest in a consolidated joint venture that is not owned by the Company directly or indirectly	100.00%

Note 6 - Warranty Costs

3 Months Ended

Jan. 31, 2024

Warranty Costs

Warranty Costs

6.	Warranty Costs

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. For homes to be delivered in fiscal 2024, our deductible under our general liability insurance is $30.0 million, aggregated for construction defect and warranty claims, and for homes previously delivered in 2023, our deductible under our general liability insurance was $25.0 million, aggregated for construction defect, warranty, and bodily injury claims. As of November 1, 2023, we no longer have an aggregate deductible for bodily injury claims. For bodily injury claims, our deductible per occurrence in fiscal 2024 is $0.25 million and $0.5 million for action over claims, both with a $30.0 million limit, and for fiscal 2023 it was $0.25 million for all other states and $0.5 million for California, both with a $5.0 million limit. 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 at the time each home is closed and control is transferred to the homebuyer. Additions, charges and changes in the warranty reserve and general liability reserve for the three months ended January 31, 2024 and 2023 were as follows:

	Three Months Ended
	January 31,
(In thousands)	2024			2023
Balance, beginning of period	$	98,919		$	97,718
Additions – Selling, general and administrative		2,547			1,577
Additions – Cost of sales		2,868			1,303
Charges incurred during the period		(6,644	)		(8,802	)
Changes to pre-existing reserves		2,146			(729	)
Balance, end of period	$	99,836		$	91,067

Note 10 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - Collateralized Debt Obligations [Member] - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Loan origination reserves
Loan origination reserves, beginning of period	$ 2,013	$ 1,795
Provisions for losses during the period	46	32
Adjustments to pre-existing provisions for losses from changes in estimates	0	0
Loan origination reserves, end of period	$ 2,059	$ 1,827

Note 21 - Transactions With Related Parties

3 Months Ended

Jan. 31, 2024

Transactions with Related Parties

Transactions with Related Parties

21.

Transactions with Related Parties

From time to time, an engineering firm owned by Tavit Najarian, a relative of Ara K. Hovnanian, our Chairman and Chief Executive Officer, provides services to the Company. During the three months ended January 31, 2024 and 2023, the services provided by such engineering firm to the Company totaled $0.3 million and $0.4 million, respectively. Neither the Company nor Mr. Hovnanian has a financial interest in the relative’s company from whom the services were provided.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 6
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Subparagraph (e)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Cash flows from operating activities:
Net income	$ 23,904	$ 18,716
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	1,598	1,410
Stock-based compensation	4,073	2,070
Amortization of debt discounts, premiums and deferred financing costs	214	330
Gain on sale of property and assets	(41)	(14)
Income from unconsolidated joint ventures	(14,952)	(7,160)
Distributions of earnings from unconsolidated joint ventures	1,010	692
Gain on extinguishment of debt	(1,371)	0
Inventory impairments and land option write-offs	302	477
(Increase) decrease in assets:
Inventories	(114,674)	11,669
Receivables, deposits and notes	4,694	5,772
Origination of mortgage loans	(306,156)	(215,477)
Sale of mortgage loans	337,346	251,923
Deferred tax assets	7,501	(2,576)
(Decrease) increase in liabilities:
Accounts payable, accrued interest and other liabilities	(33,553)	(98,125)
Customers’ deposits	379	(2,777)
State income tax payable	722	1,824
Net cash used in operating activities	(89,004)	(31,246)
Cash flows from investing activities:
Proceeds from sale of property and assets	43	69
Purchase of property, equipment, and other fixed assets	(5,442)	(3,740)
Investment in and advances to unconsolidated joint ventures, net of reimbursements	0	(22,238)
Distributions of capital from unconsolidated joint ventures	1,278	2,633
Net cash used in investing activities	(4,121)	(23,276)
Cash flows from financing activities:
Proceeds from mortgages and notes	78,867	57,704
Payments related to mortgages and notes	(71,257)	(68,958)
Proceeds from model sale leaseback financing programs	0	1,310
Payments related to model sale leaseback financing programs	(5,907)	(3,303)
Proceeds from land bank financing programs	18,407	21,317
Payments related to land bank financing programs	(22,296)	(12,553)
Net payments related to mortgage warehouse lines of credit	(27,004)	(35,971)
Payments related to senior secured notes	(113,502)	0
Preferred dividends paid	(2,669)	(2,669)
Treasury stock purchases	0	(4,800)
Deferred financing costs from land banking financing programs and note issuances	(910)	(464)
Net cash used in financing activities	(146,271)	(48,387)
Net decrease in cash and cash equivalents, and restricted cash and cash equivalents	(239,396)	(102,909)
Cash and cash equivalents, and restricted cash and cash equivalents balance, beginning of period	477,519	382,190
Cash and cash equivalents, and restricted cash and cash equivalents balance, end of period	238,123	279,281
Supplemental disclosures of cash flows:
Interest, net of capitalized interest	(2,965)	(3,904)
Income taxes	435	84
Cash and cash equivalents, and restricted cash and cash equivalents balance, end of period	238,123	279,281
Home Building [Member]
Supplemental disclosures of cash flows:
Cash and cash equivalents	183,118	234,929
Restricted cash and cash equivalents	8,369	8,154
Financial Services [Member]
Supplemental disclosures of cash flows:
Cash and cash equivalents	4,522	4,682
Restricted cash and cash equivalents	$ 42,114	$ 31,516

Note 5 - Variable Interest Entities

3 Months Ended

Jan. 31, 2024

Variable Interest Entities

Variable Interest Entities

5.Variable Interest Entities

We enter 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 Entity ("VIE") that owns the land parcel under option.

Although the Company does not have legal title to the underlying land, we analyze our option purchase contracts to determine whether the corresponding land and lot sellers are VIEs and, if so, whether we are the primary beneficiary. The significant factors we consider in determining if the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared include, among other things, our ability in determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, changing the terms of the contract or arranging financing for the VIE. As a result of our analyses, we have concluded, there are no VIEs that required consolidation at either January 31, 2024 or October 31, 2023 because we are not the primary beneficiary of the land or lots under option purchase contracts.

We will continue to secure land and lots using options, some of which are with VIEs where we have determined power is shared among the partners and we do not have a controlling financial interest. Including deposits on our unconsolidated VIEs, at January 31, 2024 and October 31, 2023, we had total cash deposits amounting to $206.5 million and $192.3 million, respectively, to purchase land and lots with a total purchase price of $2.3 billion and $2.2 billion, respectively. 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 met.

Note 20 - Fair Value of Financial Instruments

3 Months Ended

Jan. 31, 2024

Fair Value of Financial Instruments

Fair Value of Financial Instruments

20.

Fair Value of Financial Instruments

We use a fair-value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1:

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

Level 2:

Fair value determined using significant other observable inputs.

	Level 3:	Fair value determined using significant unobservable inputs.

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

		Fair Value at		Fair Value at
	Fair Value	January 31,		October 31,
(In thousands)	Hierarchy	2024		2023

Mortgage loans held for sale (1)	Level 2	$	99,046	$	130,235

(1) The aggregate unpaid principal balance was $98.2 million and $130.4 million at January 31, 2024 and October 31, 2023, respectively.

Fair value of mortgage 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 $569.2 million at January 31, 2024. Loans in process for which interest rates were committed to the borrowers totaled $71.8 million as of January 31, 2024. Substantially all of these commitments were for periods of 60 days or less. Since a portion of these commitments are expected to expire without being exercised by the borrowers, the total commitments do not necessarily represent future cash requirements.

In addition, 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. Our 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 January 31, 2024, we had no open mandatory investor commitments to sell MBS.

Changes in fair value that are included in income are shown, by financial instrument and financial statement line item, below:

Three Months Ended January 31, 2024

Mortgage

Interest Rate

Loans Held

Lock

Forward

(In thousands)

For Sale

Commitments

Contracts

Change in fair value included in financial services revenue

802

Three Months Ended January 31, 2023

Mortgage

Interest Rate

Loans Held

Lock

Forward

(In thousands)

For Sale

Commitments

Contracts

Change in fair value included in financial services revenue

421

(37

)

We did not have any assets measured at fair value on a nonrecurring basis during the three months ended January 31, 2024 and 2023, respectively.

The fair value of our cash equivalents, restricted cash and cash equivalents and customers' deposits approximates their carrying amount, based on Level 1 inputs.

The fair value of each series of our Notes and Credit Facilities are listed below. Level 2 measurements are 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. Level 3 measurements are estimated based on third-party broker quotes or management’s estimate of the fair value based on available trades for similar debt instruments. As shown in the table below, our 11.75% Senior Secured 1.25 Lien Notes due 2029 were a Level 2 measurement at January 31, 2024 due to recent trades for the same notes.

Fair Value as of January 31, 2024

(In thousands)	Level 1		Level 2		Level 3		Total
Senior Secured Notes:
8.0% Senior Secured 1.125 Lien Notes due September 30, 2028		-		-		231,750		231,750
11.75% Senior Secured 1.25 Lien Notes due September 30, 2029		-		477,300		-		477,300
Senior Notes:
13.5% Senior Notes due February 1, 2026		-		-		95,745		95,745
5.0% Senior Notes due February 1, 2040		-		-		45,484		45,484
Senior Credit Facilities:
Senior Unsecured Term Loan Credit Facility due February 1, 2027		-		-		37,490		37,490
Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028		-		-		90,552		90,552
Total fair value	$	-	$	477,300	$	501,021	$	978,321

Fair Value as of October 31, 2023

(In thousands)	*Level 1*		*Level 2*		*Level 3*		*Total*
Senior Secured Notes:
10.0% Senior Secured 1.75 Lien Notes due November 15, 2025		-		113,843		-		113,843
8.0% Senior Secured 1.125 Lien Notes due September 30, 2028		-		-		230,690		230,690
11.75% Senior Secured 1.25 Lien Notes due September 30, 2029		-		476,655		-		476,655
Senior Notes:
13.5% Senior Notes due February 1, 2026		-		-		95,062		95,062
5.0% Senior Notes due February 1, 2040		-		-		44,843		44,843
Senior Credit Facilities:
Senior Unsecured Term Loan Credit Facility due February 1, 2027		-		-		35,034		35,034
Senior Secured 1.75 Lien Term Loan Credit Facility due January 31, 2028		-		-		81,742		81,742
Total fair value	$	-	$	590,498	$	487,371	$	1,077,869

The Senior Secured Revolving Credit Facility is not included in the above tables because there were no borrowings outstanding thereunder at January 31, 2024 and October 31, 2023.

- Definition

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 20 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Mortgage Loans Held For Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value included in financial services revenue	$ 802	$ 421
Interest Rate Lock Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value included in financial services revenue	0	0
Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value included in financial services revenue	$ 0	$ (37)

Note 17 - Operating and Reporting Segments (Details Textual)
$ in Thousands

3 Months Ended

Jan. 31, 2024

USD ($)

Jan. 31, 2023

USD ($)

Segment Reporting Information [Line Items]

Number of States in which Entity Operates

Real Estate Inventory Expense Not Eligible for Capitalization

^[1]

$ 10,451

$ 15,093

Gain (Loss) on Extinguishment of Debt

1,371

Qualifying Assets Not Exceeding Debt [Member]

Segment Reporting Information [Line Items]

Real Estate Inventory Expense Not Eligible for Capitalization

3,700

6,600

Corporate, Non-Segment [Member]

Segment Reporting Information [Line Items]

General and Administrative Expense

37,100

25,500

Other Nonoperating Income (Expense)

3,200

3,000

Gain (Loss) on Extinguishment of Debt

1,400

Corporate, Non-Segment [Member] | Qualifying Assets Not Exceeding Debt [Member]

Segment Reporting Information [Line Items]

Real Estate Inventory Expense Not Eligible for Capitalization

$ 3,700

$ 6,600

[1]

Note 7 - Commitments and Contingent Liabilities (Details Textual) $ in Millions	3 Months Ended
	Jan. 31, 2024 USD ($)
Great Notch Condominium Claims[Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value	$ 119.5
Spill Fund Lawsuit [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value	$ 5.3

Note 3 - Interest (Tables)

3 Months Ended

Jan. 31, 2024

Interest

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

	Three Months Ended
	January 31,
(In thousands)	2024			2023
Interest capitalized at beginning of period	$	52,060		$	59,600
Plus interest incurred(1)		31,961			34,326
Less cost of sales interest expensed		(19,898	)		(15,022	)
Less other interest expensed(2)		(10,451	)		(15,093	)
Less interest contributed to unconsolidated joint venture(3)		-			(3,016	)
Interest capitalized at end of period(4)	$	53,672		$	60,795

(1)

Data does not include interest incurred by our mortgage and finance subsidiaries.

(2)

(3)	Represents capitalized interest which was included as part of the assets contributed to joint ventures, as discussed in Note 18. There was no impact to the Condensed Consolidated Statement of Operations as a result of these transactions.
(4)	Capitalized interest amounts are shown gross before allocating a portion of impairments, if any, to capitalized interest.

Note 13 - Per Share Calculation

3 Months Ended

Jan. 31, 2024

Per Share Calculation

Per Share Calculation

13.

Per Share Calculation

Basic and diluted earnings per share for the periods presented below were calculated as follows:

	Three Months Ended
	January 31,
(In thousands, except per share data)	2024			2023
Numerator:
Net income	$	23,904		$	18,716
Less: preferred stock dividends		(2,669	)		(2,669	)
Less: undistributed earnings allocated to participating securities		(1,025	)		(1,403	)
Numerator for basic earnings per share	$	20,210		$	14,644
Plus: undistributed earnings allocated to participating securities		1,025			1,403
Less: undistributed earnings reallocated to participating securities		(1,025	)		(1,403	)
Numerator for diluted earnings per share	$	20,210		$	14,644
Denominator:
Denominator for basic earnings per share – weighted average shares outstanding		6,496			6,186
Effect of dilutive securities:
Stock-based payments		441			282
Denominator for diluted earnings per share – weighted-average shares outstanding		6,937			6,468
Basic earnings per share	$	3.11		$	2.37
Diluted earnings per share	$	2.91		$	2.26

In addition, 80 thousand shares related to out-of-the money stock options, which could potentially dilute basic earnings per share in the future, were not included in the computation of diluted earnings per share for the three months ended January 31, 2023, because to do so would have been anti-dilutive for the period.

Note 8 - Cash Equivalents, Restricted Cash and Customer's Deposits (Details Textual) - USD ($) $ in Thousands	Jan. 31, 2024	Oct. 31, 2023	Jan. 31, 2023
Cash and Cash Equivalents [Line Items]
Cash Equivalents, at Carrying Value	$ 12,800	$ 11,400
Restricted Cash, Statement of Financial Position [Extensible Enumeration]	Assets
Home Building [Member]
Cash and Cash Equivalents [Line Items]
Restricted Cash and Cash Equivalents	$ 8,369	8,400	$ 8,154
Financial Services [Member]
Cash and Cash Equivalents [Line Items]
Restricted Cash and Cash Equivalents	42,114		$ 31,516
Restricted Cash	42,100	30,500
Financial Services [Member] \| Customer Deposits [Member]
Cash and Cash Equivalents [Line Items]
Restricted Cash	39,500	28,100
Financial Services [Member] \| Mortgage Warehouse Lines of Credit [Member]
Cash and Cash Equivalents [Line Items]
Restricted Cash	$ 2,600	$ 2,400

Note 9 - Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Oct. 31, 2023
Leases
Operating lease costs	$ 2,633	$ 2,859
Cash payments on lease liabilities	2,238	$ 2,386
ROU assets	23,833		$ 25,745
Lease liabilities	$ 25,174		$ 26,470
Weighted-average remaining lease term (in years) (Year)	5 years 1 month 6 days		5 years 1 month 6 days
Weighted-average discount rate	10.00%		10.00%

Note 6 - Warranty Costs (Tables)

3 Months Ended

Jan. 31, 2024

Warranty Costs

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended
	January 31,
(In thousands)	2024			2023
Balance, beginning of period	$	98,919		$	97,718
Additions – Selling, general and administrative		2,547			1,577
Additions – Cost of sales		2,868			1,303
Charges incurred during the period		(6,644	)		(8,802	)
Changes to pre-existing reserves		2,146			(729	)
Balance, end of period	$	99,836		$	91,067

Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($)
$ in Thousands

3 Months Ended

Jan. 31, 2024

Jan. 31, 2023

Interest

Interest capitalized at beginning of period

$ 52,060

$ 59,600

Plus interest incurred(1)

^[1]

31,961

34,326

Less cost of sales interest expensed

(19,898)

(15,022)

Other interest

^[2]

(10,451)

(15,093)

Less interest contributed to unconsolidated joint venture(3)

^[3]

(3,016)

Interest capitalized at end of period(4)

^[4]

$ 53,672

$ 60,795

[1]	Data does not* include interest incurred by our mortgage and finance subsidiaries.*
[2]	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 $3.7 million and $6.6 million for the three months ended January 31, 2024 and 2023, 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 as incurred. This component of other interest was $6.8 million and $8.5 million for the three months ended January 31, 2024 and 2023, respectively.
[3]	Represents capitalized interest which was included as part of the assets contributed to joint ventures, as discussed in Note 18. There was no impact to the Condensed Consolidated Statement of Operations as a result of these transactions.
[4]	Capitalized interest amounts are shown gross before allocating a portion of impairments, if any, to capitalized interest.

Note 9 - Leases (Tables)

3 Months Ended

Jan. 31, 2024

Leases

Lease, Cost [Table Text Block]

	Three Months Ended
	January 31,
(In thousands)	2024		2023
Operating lease costs	$	2,633	$	2,859
Cash payments on lease liabilities	$	2,238	$	2,386

(In thousands)	January 31, 2024			October 31, 2023
ROU assets	$	23,833		$	25,745
Lease liabilities	$	25,174		$	26,470
Weighted-average remaining lease term (in years)		5.1			5.1
Weighted-average discount rate		10.0	%		10.0	%

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

Fiscal Year Ending October 31,	(In thousands)
2024 (excluding the three months ended January 31, 2024)	$	6,341
2025		8,100
2026		6,610
2027		4,389
2028		1,838
2029 and thereafter		4,871
Total operating lease payments (1)		32,149
Less: imputed interest		(6,975	)
Present value of operating lease liabilities	$	25,174

Note 9 - Leases (Details Textual) $ in Millions	3 Months Ended
Note 9 - Leases (Details Textual) $ in Millions	Jan. 31, 2024 USD ($)
Leases
Operating Lease, Right-of-Use Asset, Statement of Financial Position	Prepaid expenses and other assets
Operating Lease, Liability, Statement of Financial Position	Accounts payable and other liabilities
Increase (Decrease) in Operating Lease Liability	$ 0.3
Lessee, Operating Lease, Lease Not Yet Commenced	$ 2.9

Note 3 - Interest (Details Textual) - USD ($)
$ in Thousands

3 Months Ended

Jan. 31, 2024

Jan. 31, 2023

Real Estate [Line Items]

Real Estate Inventory Expense Not Eligible for Capitalization

^[1]

$ 10,451

$ 15,093

Qualifying Assets Not Exceeding Debt [Member]

Real Estate [Line Items]

Real Estate Inventory Expense Not Eligible for Capitalization

3,700

6,600

Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member]

Real Estate [Line Items]

Real Estate Inventory Expense Not Eligible for Capitalization

$ 6,800

$ 8,500

[1]

Note 17 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Oct. 31, 2023
Segment Reporting Information [Line Items]
Assets	$ 2,340,378	$ 2,492,940
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Assets	559,919	820,466
Home Building [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	1,630,826	1,503,803
Home Building [Member] \| Northeast [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	524,029	483,784
Home Building [Member] \| Southeast [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	333,582	286,701
Home Building [Member] \| West [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	773,215	733,318
Financial Services [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	$ 149,633	$ 168,671

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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+ Details