HOVNANIAN ENTERPRISES INC 10-K

ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK   A primary market risk facing us is interest rate risk on our long term debt, including debt instruments at variable interest rates. In connection with our mortgage operations, mortgage loans held for sale and the associated mortgage warehouse lines of credit under our Master Repurchase Agreements are subject to interest rate risk; however, such obligations reprice frequently and are short-term in duration. In addition, we hedge the interest rate risk on mortgage loans by obtaining forward commitments from private investors. Accordingly, the interest rate risk from mortgage loans is not material. We do not use financial instruments to hedge interest rate risk except with respect to mortgage loans. We are also subject to foreign currency risk but we do not believe this risk is material. The following tables set forth as of October 31, 2021 and 2020, our long-term debt obligations, principal cash flows by scheduled maturity, weighted-average interest rates and estimated fair value (“FV”).   Long-Term Debt Tables     Long-Term Debt as of October 31, 2021 by Fiscal Year of Debt Maturity                                                               FV at   (Dollars in thousands)   2022     2023     2024     2025     2026     Thereafter     Total     10/31/2021   Long term debt(1)(2):                                                                 Fixed rate   $ -     $ -     $ -     $ -     $ 1,043,683     $ 211,169     $ 1,254,852     $ 1,266,892                                                                     Weighted-average interest rate     - %     - %     - %     - %     9.88 %     6.93 %     9.38 %             (1) Does not include the mortgage warehouse lines of credit made under our Master Repurchase Agreements. Also does not include our $125.0 million Secured Credit Facility under which there were no borrowings outstanding as of October 31, 2021.     (2) Does not include $125.1 million of nonrecourse mortgages secured by inventory. These mortgages have various maturities spread over the next two to three years and are paid off as homes are delivered.       Long-Term Debt as of October 31, 2020 by Fiscal Year of Debt Maturity                                                               FV at   (Dollars in thousands)   2021     2022     2023     2024     2025     Thereafter     Total     10/31/2020   Long term debt(1)(2):                                                                 Fixed rate   $ -     $ 111,214     $ -     $ 69,683     $ -     $ 1,254,852     $ 1,435,749     $ 1,241,570                                                                     Weighted-average interest rate     - %     10.00 %     - %     10.50 %     - %     9.38 %     9.48 %           (1) Does not include the mortgage warehouse lines of credit made under our Master Repurchase Agreements. Also does not include our $125.0 million Secured Credit Facility under which there were no borrowings outstanding as of October 31, 2020.     (2) Does not include $135.1 million of nonrecourse mortgages secured by inventory. These mortgages have various maturities spread over the next two to three years and are paid off as homes are delivered.   42 Table of Contents   ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA   Financial statements of Hovnanian Enterprises, Inc. and its consolidated subsidiaries are set forth herein beginning on page 56.   ITEM 9 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE   None.