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Commitments and Contingencies | 12 Months Ended
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Oct. 31, 2017
Commitments and Contingencies [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made for probable losses. We believe that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition. In April 2017, the SEC informed the Company that it was conducting an investigation and requested that we voluntarily produce documents and information relating to our estimated repair costs for stucco and other water intrusion claims in fiscal 2016. The Company has produced detailed information and documents in response to this request. Management cannot at this time predict the eventual scope or outcome of this matter. See Note 7 – “Accrued Expenses” for additional information regarding these warranty charges. Land Purchase Commitments Generally, our purchase agreements to acquire land parcels do not require us to purchase those land parcels, although we, in some cases, forfeit any deposit balance outstanding if and when we terminate a purchase agreement. If market conditions are weak, approvals needed to develop the land are uncertain, or other factors exist that make the purchase undesirable, we may choose not to acquire the land. Whether a purchase agreement is legally terminated or not, we review the amount recorded for the land parcel subject to the purchase agreement to determine whether the amount is recoverable. While we may not have formally terminated the purchase agreements for those land parcels that we do not expect to acquire, we write off any nonrefundable deposits and costs previously capitalized to such land parcels in the periods that we determine such costs are not recoverable. Information regarding our land purchase commitments at October 31, 2017 and 2016, is provided in the table below (amounts in thousands):
| 2017 |  | 2016
Aggregate purchase commitments: |  |  |
Unrelated parties | $ | 1,986,276 |  |  | $ | 1,544,185 |
Unconsolidated entities that the Company has investments in | 248,801 |  |  | 79,204 |
Total | $ | 2,235,077 |  |  | $ | 1,623,389 |
Deposits against aggregate purchase commitments | $ | 97,706 |  |  | $ | 65,299 |
Additional cash required to acquire land | 2,137,371 |  |  | 1,558,090 |
Total | $ | 2,235,077 |  |  | $ | 1,623,389 |
Amount of additional cash required to acquire land included in accrued expenses | $ | 4,329 |  |  | $ | 18,266 |
In addition, we expect to purchase approximately 3,100 additional home sites over a number of years from several joint ventures in which we have investments; the purchase prices of these home sites will be determined at a future date. At October 31, 2017, we also had purchase commitments to acquire land for apartment developments of approximately $230.1 million, of which we had outstanding deposits in the amount of $11.9 million. We have additional land parcels under option that have been excluded from the aforementioned aggregate purchase amounts since we do not believe that we will complete the purchase of these land parcels and no additional funds will be required from us to terminate these contracts. Investments in Unconsolidated Entities At October 31, 2017, we had investments in a number of unconsolidated entities, were committed to invest or advance additional funds, and had guaranteed a portion of the indebtedness and/or loan commitments of these entities. See Note 4, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities. Surety Bonds and Letters of Credit At October 31, 2017, we had outstanding surety bonds amounting to $678.0 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that $352.2 million of work remains on these improvements. We have an additional $172.7 million of surety bonds outstanding that guarantee other obligations. We do not believe it is probable that any outstanding bonds will be drawn upon. At October 31, 2017, we had outstanding letters of credit of $140.1 million under our Credit Facility. These letters of credit were issued to secure our various financial obligations, including insurance policy deductibles and other claims, land deposits, and security to complete improvements in communities in which we are operating. We do not believe that it is probable that any outstanding letters of credit will be drawn upon. Backlog At October 31, 2017, we had agreements of sale outstanding to deliver 5,851 homes with an aggregate sales value of $5.06 billion. Mortgage Commitments Our mortgage subsidiary provides mortgage financing for a portion of our home closings. For those home buyers to whom our mortgage subsidiary provides mortgages, we determine whether the home buyer qualifies for the mortgage based upon information provided by the home buyer and other sources. For those home buyers who qualify, our mortgage subsidiary provides the home buyer with a mortgage commitment that specifies the terms and conditions of a proposed mortgage loan based upon then-current market conditions. Prior to the actual closing of the home and funding of the mortgage, the home buyer will lock in an interest rate based upon the terms of the commitment. At the time of rate lock, our mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”) that is willing to honor the terms and conditions, including interest rate, committed to the home buyer. We believe that these investors have adequate financial resources to honor their commitments to our mortgage subsidiary. Information regarding our mortgage commitments at October 31, 2017 and 2016, is provided in the table below (amounts in thousands):
| 2017 |  | 2016
Aggregate mortgage loan commitments: |  |  |
IRLCs | $ | 350,740 |  |  | $ | 255,647 |
Non-IRLCs | 1,146,872 |  |  | 1,094,861 |
Total | $ | 1,497,612 |  |  | $ | 1,350,508 |
Investor commitments to purchase: |  |  |
IRLCs | $ | 350,740 |  |  | $ | 255,647 |
Mortgage loans receivable | 125,710 |  |  | 231,398 |
Total | $ | 476,450 |  |  | $ | 487,045 |
Lease Commitments We lease certain facilities and equipment under non-cancelable operating leases. Rental expenses incurred by us under these operating leases were (amounts in thousands):
Year ending October 31, |  | Amount
2017 |  | $ | 14,505 |
2016 |  | $ | 13,360 |
2015 |  | $ | 12,584 |
At October 31, 2017, future minimum rent payments under our operating leases were (amounts in thousands):
Year ending October 31, |  | Amount
2018 |  | $ | 12,081 |
2019 |  | 9,747 |
2020 |  | 5,097 |
2021 |  | 3,570 |
2022 |  | 1,980 |
Thereafter |  | 544 |
|  | $ | 33,019 |

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