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Note 1 - Basis of Presentation
12 Months Ended
Oct. 31, 2019
Notes to Financial Statements  
Basis of Presentation and Significant Accounting Policies [Text Block]
1.
Basis of Presentation
 
Basis of Presentation
- The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and include Hovnanian Enterprises, Inc.’s (“HEI”) accounts and those of all its consolidated subsidiaries, after elimination of all intercompany balances and transactions. HEI’s fiscal year ends
October 31.
Noncontrolling interest represents the proportionate equity interest in a consolidated joint venture that is
not
100%
owned by the Company. One of HEI's subsidiaries owns a
99%
controlling interest in the consolidated joint venture and therefore HEI is required to consolidate the joint venture within its Consolidated Financial Statements. The
1%
that we do
not
own is accounted for as noncontrolling interest.
 
Reclassifications
-
Effective
October 31, 2018
we early adopted Accounting Standards Update (“ASU”)
2016
-
18
“Statement of Cash Flows (Topic
230
): Restricted Cash” (“ASU
2016
-
18”
). As a result, restricted cash amounts are
no
longer shown within the operating and investing activities as these balances are now included in the beginning and ending cash balances in our Consolidated Statements of Cash Flows. The adoption also resulted in the reclassification of restricted cash in operating and investing activities of
$4.0
million and
$2.6
million, respectively, for the year ended
October 31, 2017.
These amounts are now included in the beginning and ending cash balances for the respective periods. See also the reconciliation of cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows.
 
Reverse Stock Split
– As discussed in Note
14,
in
March 2019,
the Company's stockholders approved and the Board of Directors determined to effectuate a reverse stock split (the “Reverse Stock Split”) of the Company’s common stock at a ratio of
1
-for-
25,
and a corresponding decrease in the number of authorized shares of the common stock. The Reverse Stock Split became effective on
March 29, 2019,
and every
25
issued shares (including treasury shares) of Class A Common Stock, par value
$0.01
per share (the “Class A Common Stock”), were combined into
one
share of Class A Common Stock, and every
25
issued shares (including treasury shares) of Class B Common Stock, par value
$0.01
per share (the “Class B Common Stock”), were combined into
one
share of Class B Common Stock. All share and per share amounts throughout this report have been retroactively adjusted to reflect the reverse stock split.