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Commitments and Contingencies | 9 Months Ended
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Jul. 31, 2025
Commitments and Contingencies Disclosure [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 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. Land Purchase Contracts Generally, our agreements to acquire land parcels do not require us to purchase those land parcels, although, in some cases, we forfeit any deposit balance outstanding if and when we terminate an agreement. Information regarding our land purchase contracts, as of the dates indicated, is provided in the table below (amounts in thousands):
| July 31, 2025 |  | October 31, 2024
Aggregate purchase price: |  |  |
Unrelated parties | $ | 7,280,976 |  |  | $ | 6,073,847 |
Unconsolidated entities that the Company has investments in | 123,945 |  |  | 26,783 |
Total | $ | 7,404,921 |  |  | $ | 6,100,630 |
Deposits against aggregate purchase price | $ | 782,200 |  |  | $ | 549,195 |
Additional cash required to acquire land | 6,622,721 |  |  | 5,551,435 |
Total | $ | 7,404,921 |  |  | $ | 6,100,630 |
Amount of additional cash required to acquire land included in accrued expenses | $ | 758,084 |  |  | $ | 382,277 |
In addition, we expect to purchase approximately 10,700 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 July 31, 2025, we also had purchase contracts to acquire land for apartment developments of approximately $268.5 million, of which we had outstanding deposits in the amount of $11.5 million. We intend to acquire and 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 price 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 July 31, 2025, 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 3, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities. Surety Bonds and Letters of Credit At July 31, 2025, we had outstanding surety bonds amounting to $852.5 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We have an additional $397.1 million of surety bonds outstanding that guarantee other obligations. Although significant construction and development activities have been completed related to these improvements, the bonds are generally not released until all construction and development activities are completed and acceptance by the counterparty is received. The aggregate amount of surety bonds outstanding is in excess of the estimated cost of the remaining work to be performed. We do not believe that it is probable that any outstanding bonds will be drawn upon. At July 31, 2025, we had outstanding letters of credit of $158.5 million under our Revolving Credit Facility and $29.0 million under other letter of credit facilities. 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. At July 31, 2025, we had provided financial guarantees of $58.1 million related to fronted letters of credit to secure obligations related to certain of our insurance policy deductibles and other claims. Backlog At July 31, 2025, we had agreements of sale outstanding to deliver 5,492 homes with an aggregate sales value of $6.38 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):
| July 31, 2025 |  | October 31, 2024
Aggregate mortgage loan commitments: |  |  |
IRLCs | $ | 312,371 |  |  | $ | 168,829 |
Non-IRLCs | 1,531,041 |  |  | 1,668,455 |
Total | $ | 1,843,412 |  |  | $ | 1,837,284 |
Investor commitments to purchase: |  |  |
IRLCs | $ | 312,371 |  |  | $ | 168,829 |
Mortgage loans held for sale | 177,264 |  |  | 182,834 |
Total | $ | 489,635 |  |  | $ | 351,663 |

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