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Note 22 - Financial Information of Subsidiary Issuer and Subsidiary Guarantors | 12 Months Ended
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Oct. 31, 2011
Condensed Financial Statements Disclosure [Text Block] | 22. Financial Information of Subsidiary Issuer and Subsidiary Guarantors Hovnanian Enterprises, Inc., the parent company (the “Parent”), is the issuer of publicly traded common stock and preferred stock, which is represented by depository shares. One of its wholly owned subsidiaries, K. Hovnanian Enterprises, Inc. (the “Subsidiary Issuer”), acts as a finance entity that as of October 31, 2011, had issued and outstanding approximately $797.0 million of senior secured notes ($786.6 million, net of discount), $807.1 million senior notes ($802.9 million, net of discount), and $13.3 million senior subordinated amortizing notes. The senior secured notes, senior notes, and senior subordinated amortizing notes are fully and unconditionally guaranteed by the Parent. In addition to the Parent, each of the wholly owned subsidiaries of the Parent other than the Subsidiary Issuer (collectively, the “Guarantor Subsidiaries”), with the exception of our home mortgage subsidiaries, certain of our title insurance subsidiaries, joint ventures, subsidiaries holding interests in our joint ventures and our foreign subsidiary (collectively, the “Nonguarantor Subsidiaries”), have guaranteed fully and unconditionally, on a joint and several basis, the obligations of the Subsidiary Issuer to pay principal and interest under the senior secured notes, senior notes, and senior subordinated amortizing notes (issued as a component of our 7.25% Tangible Equity Units). In lieu of providing separate audited financial statements for the Guarantor Subsidiaries, we have included the accompanying consolidating condensed financial statements. Management does not believe that separate financial statements of the Guarantor Subsidiaries are material to users of our consolidated financial statements. Therefore, separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented. The following Consolidating Condensed Financial Statements present the results of operations, financial position and cash flows of (i) the Parent, (ii) the Subsidiary Issuer, (iii) the Guarantor Subsidiaries, (iv) the Nonguarantor Subsidiaries and (v) the eliminations to arrive at the information for Hovnanian Enterprises, Inc. on a consolidated basis. CONSOLIDATING CONDENSED BALANCE SHEET OCTOBER 31, 2011
(In thousands) |  | Parent |  |  | Subsidiary Issuer |  |  | Guarantor Subsidiaries |  |  | Nonguarantor Subsidiaries |  |  | Eliminations |  |  | Consolidated |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  | $ | 12,756 |  |  | $ | 200,281 |  |  | $ | 1,096,594 |  |  | $ | 207,443 |  |  | $ |  |  |  | $ | 1,517,074 |
Financial services |  |  |  |  |  |  |  |  |  |  | 4,537 |  |  |  | 80,569 |  |  |  |  |  |  |  | 85,106 |
Investments in and amounts due to and from consolidated subsidiaries |  |  | (467,562 | ) |  |  | 2,140,349 |  |  |  | (2,435,348 | ) |  |  | (9,364 | ) |  |  | 771,925 |  |  |  | - |
Total assets |  | $ | (454,806 | ) |  | $ | 2,340,630 |  |  | $ | (1,334,217 | ) |  | $ | 278,648 |  |  | $ | 771,925 |  |  | $ | 1,602,180 |
Liabilities and equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  | $ | 2,172 |  |  | $ | (33 | ) |  | $ | 355,191 |  |  | $ | 11,276 |  |  | $ |  |  |  | $ | 368,606 |
Financial services |  |  |  |  |  |  |  |  |  |  | 4,231 |  |  |  | 60,015 |  |  |  |  |  |  |  | 64,246 |
Notes payable |  |  |  |  |  |  | 1,623,957 |  |  |  | 144 |  |  |  |  |  |  |  |  |  |  |  | 1,624,101 |
Income taxes payable |  |  | 39,716 |  |  |  |  |  |  |  | 2,113 |  |  |  |  |  |  |  |  |  |  |  | 41,829 |
Stockholders’ (deficit) equity |  |  | (496,694 | ) |  |  | 716,706 |  |  |  | (1,695,896 | ) |  |  | 207,265 |  |  |  | 771,925 |  |  |  | (496,694 | )
Non-controlling interest in consolidated joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 92 |  |  |  |  |  |  |  | 92 |
Total liabilities and equity |  | $ | (454,806 | ) |  | $ | 2,340,630 |  |  | $ | (1,334,217 | ) |  | $ | 278,648 |  |  | $ | 771,925 |  |  | $ | 1,602,180 |
CONSOLIDATING CONDENSED BALANCE SHEET OCTOBER 31, 2010
(In thousands) |  | Parent |  |  | Subsidiary Issuer |  |  | Guarantor Subsidiaries |  |  | Nonguarantor Subsidiaries |  |  | Eliminations |  |  | Consolidated |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  | $ | 14,498 |  |  | $ | 334,551 |  |  | $ | 1,165,877 |  |  | $ | 200,839 |  |  | $ |  |  |  | $ | 1,715,765 |
Financial services |  |  |  |  |  |  |  |  |  |  | 4,435 |  |  |  | 97,360 |  |  |  |  |  |  |  | 101,795 |
Investments in and amounts due to and from consolidated subsidiaries |  |  | (330,310 | ) |  |  | 2,061,186 |  |  |  | (2,202,568 | ) |  |  | 2,009 |  |  |  | 469,683 |  |  |  | - |
Total assets |  | $ | (315,812 | ) |  | $ | 2,395,737 |  |  | $ | (1,032,256 | ) |  | $ | 300,208 |  |  | $ | 469,683 |  |  | $ | 1,817,560 |
Liabilities and equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  | $ | 1,458 |  |  | $ |  |  |  | $ | 401,567 |  |  | $ | 4,463 |  |  | $ |  |  |  | $ | 407,488 |
Financial services |  |  |  |  |  |  |  |  |  |  | 4,271 |  |  |  | 85,514 |  |  |  |  |  |  |  | 89,785 |
Notes payable |  |  |  |  |  |  | 1,640,144 |  |  |  | 171 |  |  |  |  |  |  |  |  |  |  |  | 1,640,315 |
Income taxes payable |  |  | 21,298 |  |  |  |  |  |  |  | (3,388 | ) |  |  |  |  |  |  |  |  |  |  | 17,910 |
Stockholders’ (deficit) equity |  |  | (338,568 | ) |  |  | 755,593 |  |  |  | (1,434,877 | ) |  |  | 209,601 |  |  |  | 469,683 |  |  |  | (338,568 | )
Non-controlling interest in consolidated joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 630 |  |  |  |  |  |  |  | 630 |
Total liabilities and equity |  | $ | (315,812 | ) |  | $ | 2,395,737 |  |  | $ | (1,032,256 | ) |  | $ | 300,208 |  |  | $ | 469,683 |  |  | $ | 1,817,560 |
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS TWELVE MONTHS ENDED OCTOBER 31, 2011
(In thousands) |  | Parent |  |  | Subsidiary Issuer |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Eliminations |  |  | Consolidated |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  | $ | 21 |  |  | $ | (245 | ) |  | $ | 1,103,249 |  |  | $ | 7,360 |  |  | $ | (4,959 | ) |  | $ | 1,105,426 |
Financial services |  |  |  |  |  |  |  |  |  |  | 5,523 |  |  |  | 23,958 |  |  |  |  |  |  |  | 29,481 |
Intercompany charges |  |  |  |  |  |  | 114,592 |  |  |  | (152,042 | ) |  |  | (655 | ) |  |  | 38,105 |  |  |  | - |
Total revenues |  |  | 21 |  |  |  | 114,347 |  |  |  | 956,730 |  |  |  | 30,663 |  |  |  | 33,146 |  |  |  | 1,134,907 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  |  | 5,704 |  |  |  | 164,947 |  |  |  | 1,218,886 |  |  |  | 1,073 |  |  |  | 13,084 |  |  |  | 1,403,694 |
Financial services |  |  | 307 |  |  |  |  |  |  |  | 4,809 |  |  |  | 16,263 |  |  |  | (8 | ) |  |  | 21,371 |
Total expenses |  |  | 6,011 |  |  |  | 164,947 |  |  |  | 1,223,695 |  |  |  | 17,336 |  |  |  | 13,076 |  |  |  | 1,425,065 |
Gain on extinguishment of debt |  |  |  |  |  |  | 7,528 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7,528 |
(Loss) income from unconsolidated joint ventures |  |  |  |  |  |  |  |  |  |  | (712 | ) |  |  | (8,246 | ) |  |  |  |  |  |  | (8,958 | )
(Loss) income before income taxes |  |  | (5,990 | ) |  |  | (43,072 | ) |  |  | (267,677 | ) |  |  | 5,081 |  |  |  | 20,070 |  |  |  | (291,588 | )
State and federal income taxes |  |  | (20,084 | ) |  |  |  |  |  |  | 14,583 |  |  |  |  |  |  |  |  |  |  |  | (5,501 | )
Equity in (loss) income from subsidiaries |  |  | (300,181 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 300,181 |  |  |  | - |
Net (loss) income |  | $ | (286,087 | ) |  | $ | (43,072 | ) |  | $ | (282,260 | ) |  | $ | 5,081 |  |  | $ | 320,251 |  |  | $ | (286,087 | )
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS TWELVE MONTHS ENDED OCTOBER 31, 2010
(In thousands) |  | Parent |  |  | Subsidiary Issuer |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Eliminations |  |  | Consolidated |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  | $ | 20 |  |  | $ | (350 | ) |  | $ | 1,340,887 |  |  | $ | 4,272 |  |  | $ | (4,960 | ) |  | $ | 1,339,869 |
Financial services |  |  |  |  |  |  |  |  |  |  | 6,353 |  |  |  | 25,620 |  |  |  |  |  |  |  | 31,973 |
Intercompany charges |  |  |  |  |  |  | 128,383 |  |  |  | (190,616 | ) |  |  | (228 | ) |  |  | 62,461 |  |  |  | - |
Total revenues |  |  | 20 |  |  |  | 128,033 |  |  |  | 1,156,624 |  |  |  | 29,664 |  |  |  | 57,501 |  |  |  | 1,371,842 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  |  | 8,638 |  |  |  | 173,709 |  |  |  | 1,473,481 |  |  |  | (11,332 | ) |  |  | 25,557 |  |  |  | 1,670,053 |
Financial services |  |  | 505 |  |  |  |  |  |  |  | 5,182 |  |  |  | 17,905 |  |  |  | (518 | ) |  |  | 23,074 |
Total expenses |  |  | 9,143 |  |  |  | 173,709 |  |  |  | 1,478,663 |  |  |  | 6,573 |  |  |  | 25,039 |  |  |  | 1,693,127 |
Gain on extinguishment of debt |  |  |  |  |  |  | 25,047 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25,047 |
(Loss) income from unconsolidated joint ventures |  |  |  |  |  |  |  |  |  |  | (1,023 | ) |  |  | 1,979 |  |  |  |  |  |  |  | 956 |
(Loss) income before income taxes |  |  | (9,123 | ) |  |  | (20,629 | ) |  |  | (323,062 | ) |  |  | 25,070 |  |  |  | 32,462 |  |  |  | (295,282 | )
State and federal income taxes |  |  | (309,922 | ) |  |  |  |  |  |  | 12,052 |  |  |  |  |  |  |  |  |  |  |  | (297,870 | )
Equity in (loss) income from subsidiaries |  |  | (298,211 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 298,211 |  |  |  | - |
Net income (loss) |  | $ | 2,588 |  |  | $ | (20,629 | ) |  | $ | (335,114 | ) |  | $ | 25,070 |  |  | $ | 330,673 |  |  | $ | 2,588 |
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS TWELVE MONTHS ENDED OCTOBER 31, 2009
(In thousands) |  | Parent |  |  | Subsidiary Issuer |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Eliminations |  |  | Consolidated |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  | $ | 19 |  |  | $ | 3,438 |  |  | $ | 1,560,198 |  |  | $ | 2,044 |  |  | $ | (4,959 | ) |  | $ | 1,560,740 |
Financial services |  |  |  |  |  |  |  |  |  |  | 7,743 |  |  |  | 27,807 |  |  |  |  |  |  |  | 35,550 |
Intercompany charges |  |  |  |  |  |  | 209,599 |  |  |  | (251,402 | ) |  |  | (3,597 | ) |  |  | 45,400 |  |  |  | - |
Total revenues |  |  | 19 |  |  |  | 213,037 |  |  |  | 1,316,539 |  |  |  | 26,254 |  |  |  | 40,441 |  |  |  | 1,596,290 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Homebuilding |  |  | 26,309 |  |  |  | 632,640 |  |  |  | 1,954,821 |  |  |  | 1,231 |  |  |  | (11,843 | ) |  |  | 2,603,158 |
Financial services |  |  | 639 |  |  |  |  |  |  |  | 6,570 |  |  |  | 22,635 |  |  |  | (549 | ) |  |  | 29,295 |
Total expenses |  |  | 26,948 |  |  |  | 632,640 |  |  |  | 1,961,391 |  |  |  | 23,866 |  |  |  | (12,392 | ) |  |  | 2,632,453 |
Gain on extinguishment of debt |  |  |  |  |  |  | 409,929 |  |  |  | 256 |  |  |  |  |  |  |  |  |  |  |  | 410,185 |
(Loss) income from unconsolidated joint ventures |  |  |  |  |  |  |  |  |  |  | (9,782 | ) |  |  | (36,259 | ) |  |  |  |  |  |  | (46,041 | )
(Loss) income before income taxes |  |  | (26,929 | ) |  |  | (9,674 | ) |  |  | (654,378 | ) |  |  | (33,871 | ) |  |  | 52,833 |  |  |  | (672,019 | )
State and federal income taxes |  |  | 44,693 |  |  |  | (3,386 | ) |  |  | 50,932 |  |  |  | (11,919 | ) |  |  | (35,627 | ) |  |  | 44,693 |
Equity in (loss) income from subsidiaries |  |  | (645,090 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 645,090 |  |  |  |  |
Net (loss) income |  | $ | (716,712 | ) |  | $ | (6,288 | ) |  | $ | (705,310 | ) |  | $ | (21,952 | ) |  | $ | 733,550 |  |  | $ | (716,712 | )
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS TWELVE MONTHS ENDED OCTOBER 31, 2011
(In thousands) |  | Parent |  |  | Subsidiary Issuer |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Eliminations |  |  | Consolidated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | (286,087 | ) |  | $ | (43,072 | ) |  | $ | (282,260 | ) |  | $ | 5,081 |  |  | $ | 320,251 |  |  | $ | (286,087 | )
Adjustments to reconcile net income to net cash (used in) provided by operating activities |  |  | 93,926 |  |  |  | (34,441 | ) |  |  | 357,401 |  |  |  | (17,963 | ) |  |  | (320,251 | ) |  |  | 78,672 |
Net cash (used in) provided by operating activities |  |  | (192,161 | ) |  |  | (77,513 | ) |  |  | 75,141 |  |  |  | (12,882 | ) |  |  | - |  |  |  | (207,415 | )
Net cash used in investing activities |  |  | - |  |  |  | - |  |  |  | (223 | ) |  |  | 1,418 |  |  |  | - |  |  |  | 1,195 |
Net cash (used in) provided by financing activities |  |  | 54,899 |  |  |  | 56,428 |  |  |  | 2,367 |  |  |  | (23,914 | ) |  |  | - |  |  |  | 89,780 |
Intercompany investing and financing activities - net |  |  | 137,252 |  |  |  | (79,163 | ) |  |  | (69,462 | ) |  |  | 11,373 |  |  |  | - |  |  |  | - |
Net (decrease) increase in cash |  |  | (10 | ) |  |  | (100,248 | ) |  |  | 7,823 |  |  |  | (24,005 | ) |  |  | - |  |  |  | (116,440 | )
Cash and cash equivalents balance, beginning of period |  |  | 10 |  |  |  | 212,370 |  |  |  | (12,812 | ) |  |  | 167,612 |  |  |  | - |  |  |  | 367,180 |
Cash and cash equivalents balance, end of period |  | $ | - |  |  | $ | 112,122 |  |  | $ | (4,989 | ) |  | $ | 143,607 |  |  | $ | - |  |  | $ | 250,740 |
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS TWELVE MONTHS ENDED OCTOBER 31, 2010
(In thousands) |  | Parent |  |  | Subsidiary Issuer |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Eliminations |  |  | Consolidated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) income |  | $ | 2,588 |  |  | $ | (20,629 | ) |  | $ | (335,114 | ) |  | $ | 25,070 |  |  | $ | 330,673 |  |  | $ | 2,588 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities |  |  | (24,192 | ) |  |  | 47,439 |  |  |  | 151,814 |  |  |  | 185,511 |  |  |  | (330,673 | ) |  |  | 29,899 |
Net cash (used in) provided by operating activities |  |  | (21,604 | ) |  |  | 26,810 |  |  |  | (183,300 | ) |  |  | 210,581 |  |  |  | - |  |  |  | 32,487 |
Net cash (used in) investing activities |  |  |  |  |  |  |  |  |  |  | (1,146 | ) |  |  | 1,130 |  |  |  |  |  |  |  | (16 | )
Net cash (used in) financing activities |  |  |  |  |  |  | (113,232 | ) |  |  | 3,463 |  |  |  | 17,786 |  |  |  |  |  |  |  | (91,983 | )
Intercompany investing and financing activities - net |  |  | 21,604 |  |  |  | 6,385 |  |  |  | 183,755 |  |  |  | (211,744 | ) |  |  |  |  |  |  | - |
Net (decrease) increase in cash |  |  | - |  |  |  | (80,037 | ) |  |  | 2,772 |  |  |  | 17,753 |  |  |  | - |  |  |  | (59,512 | )
Cash and cash equivalents balance, beginning of period |  |  | 10 |  |  |  | 292,407 |  |  |  | (15,584 | ) |  |  | 149,859 |  |  |  |  |  |  |  | 426,692 |
Cash and cash equivalents balance, end of period |  | $ | 10 |  |  | $ | 212,370 |  |  | $ | (12,812 | ) |  | $ | 167,612 |  |  | $ | - |  |  | $ | 367,180 |
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS TWELVE MONTHS ENDED OCTOBER 31, 2009
(In thousands) |  | Parent |  |  | Subsidiary Issuer |  |  | Guarantor Subsidiaries |  |  | Non-Guarantor Subsidiaries |  |  | Eliminations |  |  | Consolidated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) income |  | $ | (716,712 | ) |  | $ | (6,288 | ) |  | $ | (705,310 | ) |  | $ | (21,952 | ) |  | $ | 733,550 |  |  | $ | (716,712 | )
Adjustments to reconcile net income to net cash (used in) provided by operating activities |  |  | (197,982 | ) |  |  | (542,328 | ) |  |  | 2,158,974 |  |  |  | 1,870 |  |  |  | (733,550 | ) |  |  | 686,984 |
Net cash (used in) provided by operating activities |  |  | (914,694 | ) |  |  | (548,616 | ) |  |  | 1,453,664 |  |  |  | (20,082 | ) |  |  | - |  |  |  | (29,728 | )
Net cash (used in) provided by investing activities |  |  |  |  |  |  |  |  |  |  | (6,310 | ) |  |  | (13,597 | ) |  |  |  |  |  |  | (19,907 | )
Net cash used in financing activities |  |  |  |  |  |  | (340,427 | ) |  |  | (2,368 | ) |  |  | (28,934 | ) |  |  |  |  |  |  | (371,729 | )
Intercompany investing and financing activities - net |  |  | 914,687 |  |  |  | 334,955 |  |  |  | (1,444,620 | ) |  |  | 194,978 |  |  |  | - |  |  |  | - |
Net (decrease) increase in cash |  |  | (7 | ) |  |  | (554,088 | ) |  |  | 366 |  |  |  | 132,365 |  |  |  | - |  |  |  | (421,364 | )
Cash and cash equivalents balance, beginning of period |  |  | 17 |  |  |  | 846,495 |  |  |  | (15,950 | ) |  |  | 17,494 |  |  |  |  |  |  |  | 848,056 |
Cash and cash equivalents balance, end of period |  | $ | 10 |  |  | $ | 292,407 |  |  | $ | (15,584 | ) |  | $ | 149,859 |  |  | $ | - |  |  | $ | 426,692 |

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- Definition Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions. + References No definition available. + Details
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Namespace Prefix: | hov_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration