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Commitments and Contingencies | 3 Months Ended
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Jan. 31, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies Disclosure [Text Block] | 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 and 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 March 2018, the Pennsylvania Attorney General informed the Company that it was conducting a review of our construction of stucco homes in Pennsylvania after January 1, 2005 and requested that we voluntarily produce documents and information. The Company has produced documents and information in response to this request and, in addition, has produced requested information and documents in response to a subpoena issued in the second quarter of fiscal 2019. Management cannot at this time predict the eventual scope or outcome of this matter. Land Purchase Commitments Generally, our 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 an agreement. Information regarding our land purchase commitments, as of the dates indicated, is provided in the table below (amounts in thousands):
| January 31, 2021 |  | October 31, 2020
Aggregate purchase commitments: |  |  |
Unrelated parties | $ | 2,744,059 |  |  | $ | 2,630,128 |
Unconsolidated entities that the Company has investments in | 8,787 |  |  | 10,097 |
Total | $ | 2,752,846 |  |  | $ | 2,640,225 |
Deposits against aggregate purchase commitments | $ | 207,600 |  |  | $ | 223,571 |
Additional cash required to acquire land | 2,545,246 |  |  | 2,416,654 |
Total | $ | 2,752,846 |  |  | $ | 2,640,225 |
Amount of additional cash required to acquire land included in accrued expenses | $ | 18,092 |  |  | $ | 19,590 |
In addition, we expect to purchase approximately 3,900 additional home sites over a number of years from several joint ventures in which we have interests; the purchase prices of these home sites will be determined at a future date. At January 31, 2021, we also had similar purchase commitments to acquire land for apartment developments of approximately $121.5 million, of which we had outstanding deposits in the amount of $6.5 million. We intend to develop these projects in joint ventures with unrelated parties in the future. We have additional land parcels under option that have been excluded from the aggregate purchase commitments 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 January 31, 2021, 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 January 31, 2021, we had outstanding surety bonds amounting to $800.4 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that approximately $383.6 million of work remains on these improvements. We have an additional $188.5 million of surety bonds outstanding that guarantee other obligations. We do not believe that it is probable that any outstanding bonds will be drawn upon. At January 31, 2021, we had outstanding letters of credit of $120.2 million under our Revolving Credit Facility. These letters of credit were issued to secure 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 January 31, 2021, we had agreements of sale outstanding to deliver 8,888 homes with an aggregate sales value of $7.47 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. Mortgage loans are sold to investors with limited recourse provisions derived from industry-standard representations and warranties in the relevant agreements. These representations and warranties primarily involve the absence of misrepresentations by the borrower or other parties, the appropriate underwriting of the loan and in some cases, a required minimum number of payments to be made by the borrower. The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market. Information regarding our mortgage commitments, as of the dates indicated, is provided in the table below (amounts in thousands):
| January 31, 2021 |  | October 31, 2020
Aggregate mortgage loan commitments: |  |  |
IRLCs | $ | 521,022 |  |  | $ | 381,116 |
Non-IRLCs | 2,280,509 |  |  | 1,688,801 |
Total | $ | 2,801,531 |  |  | $ | 2,069,917 |
Investor commitments to purchase: |  |  |
IRLCs | $ | 521,022 |  |  | $ | 381,116 |
Mortgage loans held for sale | 117,309 |  |  | 217,876 |
Total | $ | 638,331 |  |  | $ | 598,992 |

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