XML 29 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Note 11 - Operating and Reporting Segments | 12 Months Ended
--- | ---
Oct. 31, 2011
Segment Reporting Disclosure [Text Block] | 11. Operating and Reporting Segments Our operating segments are components of our business for which discrete financial information is available and reviewed regularly by the chief operating decision maker, our Chief Executive Officer, to evaluate performance and make operating decisions. Based on this criteria, each of our communities qualifies as an operating segment, and therefore, it is impractical to provide segment disclosures for this many segments. As such, we have aggregated the homebuilding operating segments into six reportable segments. Our homebuilding operating segments are aggregated into reportable segments based primarily upon geographic proximity, similar regulatory environments, land acquisition characteristics and similar methods used to construct and sell homes. Our reportable segments consist of the following six homebuilding segments and a financial services segment: Homebuilding: (1) Northeast (New Jersey and Pennsylvania) (2) Mid-Atlantic (Delaware, Maryland, Virginia, West Virginia, and Washington D.C.) (3) Midwest (Illinois, Minnesota, and Ohio) (4) Southeast (Florida, Georgia, North Carolina, and South Carolina) (5) Southwest (Arizona and Texas) (6) West (California) Financial Services Operations of the Company’s Homebuilding segments primarily include the sale and construction of single-family attached and detached homes, attached townhomes and condominiums, urban infill and active adult homes in planned residential developments. In addition, from time to time, operations of the homebuilding segments include sales of land. Operations of the Company’s Financial Services segment include mortgage banking and title services provided to the homebuilding operations’ customers. We do not retain or service mortgages that we originate but rather sell the mortgages and related servicing rights to investors. Corporate and unallocated primarily represents operations at our headquarters in Red Bank, New Jersey. This includes our executive offices, information services, human resources, corporate accounting, training, treasury, process redesign, internal audit, construction services, and administration of insurance, quality, and safety. It also includes interest income and interest expense resulting from interest incurred that cannot be capitalized in inventory in the Homebuilding segments, as well as the gains or losses on extinguishment of debt from debt repurchases or exchanges. Evaluation of segment performance is based primarily on operating earnings from continuing operations before provision for income taxes (“(Loss) income before income taxes”). (Loss) income before income taxes for the Homebuilding segments consist of revenues generated from the sales of homes and land, (loss) income from unconsolidated entities, management fees and other income, less the cost of homes and land sold, selling, general and administrative expenses and minority interest expense. Income before income taxes for the Financial Services segment consist of revenues generated from mortgage financing, title insurance and closing services, less the cost of such services and certain selling, general and administrative expenses incurred by the Financial Services segment. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent stand-alone entity during the periods presented. Financial information relating to operations of our segments was as follows:
|  | Year Ended October 31, |
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
Revenues: |  |  |  |  |  |  |  |  |
Northeast |  | $ | 201,984 |  |  | $ | 298,713 |  |  | $ | 364,876 |
Mid-Atlantic |  |  | 199,716 |  |  |  | 282,052 |  |  |  | 297,706 |
Midwest |  |  | 70,567 |  |  |  | 93,358 |  |  |  | 117,308 |
Southeast |  |  | 79,453 |  |  |  | 93,493 |  |  |  | 119,779 |
Southwest |  |  | 425,152 |  |  |  | 393,639 |  |  |  | 422,808 |
West |  |  | 128,658 |  |  |  | 178,480 |  |  |  | 234,740 |
Total homebuilding |  |  | 1,105,530 |  |  |  | 1,339,735 |  |  |  | 1,557,217 |
Financial services |  |  | 29,481 |  |  |  | 31,973 |  |  |  | 35,550 |
Corporate and unallocated |  |  | (104 | ) |  |  | 134 |  |  |  | 3,523 |
Total revenues |  | $ | 1,134,907 |  |  | $ | 1,371,842 |  |  | $ | 1,596,290 |
(Loss) income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Northeast |  | $ | (99,276 | ) |  | $ | (92,605 | ) |  | $ | (341,147 | )
Mid-Atlantic |  |  | (17,286 | ) |  |  | (4,762 | ) |  |  | (85,817 | )
Midwest |  |  | (8,977 | ) |  |  | (13,226 | ) |  |  | (24,390 | )
Southeast |  |  | (11,874 | ) |  |  | (11,219 | ) |  |  | (67,891 | )
Southwest |  |  | 29,316 |  |  |  | 23,192 |  |  |  | (60,777 | )
West |  |  | (40,599 | ) |  |  | (61,769 | ) |  |  | (304,539 | )
Total homebuilding |  |  | (148,696 | ) |  |  | (160,389 | ) |  |  | (884,561 | )
Financial services |  |  | 8,109 |  |  |  | 8,899 |  |  |  | 6,255 |
Corporate and unallocated |  |  | (151,001 | ) |  |  | (143,792 | ) |  |  | 206,287 |
Loss before income taxes |  | $ | (291,588 | ) |  | $ | (295,282 | ) |  | $ | (672,019 | )
|  | October 31, |
(In thousands) |  | 2011 |  |  | 2010 |
Assets: |  |  |  |  |  |
Northeast |  | $ | 385,217 |  |  | $ | 456,544 |
Mid-Atlantic |  |  | 219,287 |  |  |  | 177,503 |
Midwest |  |  | 59,105 |  |  |  | 47,818 |
Southeast |  |  | 83,044 |  |  |  | 58,765 |
Southwest |  |  | 188,321 |  |  |  | 206,001 |
West |  |  | 168,590 |  |  |  | 195,808 |
Total homebuilding |  |  | 1,103,564 |  |  |  | 1,142,439 |
Financial services |  |  | 85,106 |  |  |  | 101,795 |
Corporate and unallocated |  |  | 413,510 |  |  |  | 573,326 |
Total assets |  | $ | 1,602,180 |  |  | $ | 1,817,560 |
|  | October 31, |
(In thousands) |  | 2011 |  |  | 2010 |
Investments in and advances to unconsolidated joint ventures: |  |  |  |  |  |
Northeast |  | $ | 15,450 |  |  | $ | 16,437 |
Mid-Atlantic |  |  | 26,477 |  |  |  | 12,568 |
Midwest |  |  | 2,957 |  |  |  | 4,432 |
Southeast |  |  | 4,687 |  |  |  | 4,528 |
Southwest |  |  | - |  |  |  | 35 |
West |  |  | 7,310 |  |  |  | - |
Total homebuilding |  |  | 56,881 |  |  |  | 38,000 |
Corporate and unallocated |  |  | 945 |  |  |  | - |
Total investments in and advances to unconsolidated joint ventures |  | $ | 57,826 |  |  | $ | 38,000 |
|  | Year Ended October 31, |
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
Homebuilding interest expense: |  |  |  |  |  |  |  |  |
Northeast |  | $ | 33,833 |  |  | $ | 27,105 |  |  | $ | 28,566 |
Mid-Atlantic |  |  | 10,180 |  |  |  | 16,572 |  |  |  | 18,452 |
Midwest |  |  | 2,441 |  |  |  | 3,807 |  |  |  | 3,712 |
Southeast |  |  | 4,036 |  |  |  | 5,570 |  |  |  | 8,050 |
Southwest |  |  | 14,552 |  |  |  | 13,927 |  |  |  | 23,914 |
West |  |  | 10,264 |  |  |  | 17,896 |  |  |  | 23,639 |
Total homebuilding |  |  | 75,306 |  |  |  | 84,877 |  |  |  | 106,333 |
Corporate and unallocated |  |  | 96,539 |  |  |  | 97,482 |  |  |  | 94,136 |
Financial services interest expense (income) (1) |  |  | 350 |  |  |  | (291 | ) |  |  | (507 | )
Total interest expense, net |  | $ | 172,195 |  |  | $ | 182,068 |  |  | $ | 199,962 |
| (1) | Financial services interest income and interest expenses are included in the Financial services lines on the Consolidated Statements of Operations in the respective revenues and expenses sections.
|  | Year Ended October 31, |
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
Depreciation: |  |  |  |  |  |  |  |  |
Northeast |  | $ | 677 |  |  | $ | 1,167 |  |  | $ | 1,533 |
Mid-Atlantic |  |  | 437 |  |  |  | 474 |  |  |  | 577 |
Midwest |  |  | 1,825 |  |  |  | 1,609 |  |  |  | 3,671 |
Southeast |  |  | 132 |  |  |  | 356 |  |  |  | 1,196 |
Southwest |  |  | 292 |  |  |  | 340 |  |  |  | 503 |
West |  |  | 409 |  |  |  | 832 |  |  |  | 1,009 |
Total homebuilding |  |  | 3,772 |  |  |  | 4,778 |  |  |  | 8,489 |
Financial services |  |  | 391 |  |  |  | 447 |  |  |  | 489 |
Corporate and unallocated |  |  | 5,177 |  |  |  | 7,351 |  |  |  | 9,549 |
Total depreciation and goodwill and intangible amortization and impairment |  | $ | 9,340 |  |  | $ | 12,576 |  |  | $ | 18,527 |
|  | Year Ended October 31, |
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
Net additions to operating properties and equipment: |  |  |  |  |  |  |  |  |
Northeast |  | $ | 191 |  |  | $ | 426 |  |  | $ | 41 |
Mid-Atlantic |  |  | 19 |  |  |  | - |  |  |  | 34 |
Midwest |  |  | 66 |  |  |  | 290 |  |  |  | 170 |
Southeast |  |  | 34 |  |  |  | - |  |  |  | 122 |
Southwest |  |  | 28 |  |  |  | 19 |  |  |  | - |
West |  |  | 118 |  |  |  | - |  |  |  | 22 |
Total homebuilding |  |  | 456 |  |  |  | 735 |  |  |  | 389 |
Financial services |  |  | 74 |  |  |  | - |  |  |  | 11 |
Corporate and unallocated |  |  | 296 |  |  |  | 1,721 |  |  |  | 350 |
Total net additions to operating properties and equipment |  | $ | 826 |  |  | $ | 2,456 |  |  | $ | 750 |
|  | Year Ended October 31, |
(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |
Equity in (losses) earnings from unconsolidated joint ventures: |  |  |  |  |  |  |  |  |
Northeast |  | $ | (4,474 | ) |  | $ | (29 | ) |  | $ | (31,156 | )
Mid-Atlantic |  |  | (4,340 | ) |  |  | (391 | ) |  |  | (3,866 | )
Midwest |  |  | 672 |  |  |  | 390 |  |  |  | (1,808 | )
Southeast |  |  | 676 |  |  |  | 322 |  |  |  | (4,359 | )
Southwest |  |  | 83 |  |  |  | 664 |  |  |  | (4,824 | )
West |  |  | (1,575 | ) |  |  | - |  |  |  | (28 | )
Total equity in (losses) earnings from unconsolidated joint ventures |  | $ | (8,958 | ) |  | $ | 956 |  |  | $ | (46,041 | )

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration