XML 28 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 11 - Operating and Reporting Segments
 12 Months Ended
Oct. 31, 2013
Segment Reporting [Abstract]  
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, Washington D.C. , and West Virginia)


(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 typically 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 (“Income (loss) before income taxes”).  Income (loss) before income taxes for the Homebuilding segments consist of revenues generated from the sales of homes and land, income (loss) from unconsolidated entities, management fees and other income, less the cost of homes and land sold, selling, general and administrative expenses, interest expense and non-controlling 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)

 

2013

   

2012

   

2011

 

Revenues:

                       

Northeast

    $282,855       $233,326       $201,984  

Mid-Atlantic

    289,303       273,080       199,716  

Midwest

    163,485       106,719       70,567  

Southeast

    147,570       128,684       79,453  

Southwest

    697,358       518,931       425,152  

West

    223,086       185,851       128,658  

Total homebuilding

    1,803,657       1,446,591       1,105,530  

Financial services

    47,727       38,735       29,481  

Corporate and unallocated

    (131

)

    27       (104

)

Total revenues

    $1,851,253       $1,485,353       $1,134,907  

Income (loss) before income taxes:

                       

Northeast

    $1,519       $(4,683

)

    $(99,276

)

Mid-Atlantic

    24,388       17,262       (17,286

)

Midwest

    12,270       253       (8,977

)

Southeast

    6,455       (4,828

)

    (11,874

)

Southwest

    76,459       42,178       29,316  

West

    14,398       (3,177

)

    (40,599

)

Total homebuilding

    135,489       47,005       (148,696

)

Financial services

    18,668       15,087       8,109  

Corporate and unallocated

    (132,222

)

    (163,340

)

    (151,001

)

Income (loss) before income taxes

    $21,935       $(101,248

)

    $(291,588

)


   

October 31,

 

(In thousands)

 

2013

   

2012

 

Assets:

               

Northeast

    $323,152       $396,073  

Mid-Atlantic

    240,486       200,969  

Midwest

    104,596       73,305  

Southeast

    101,410       90,132  

Southwest

    305,878       235,367  

West

    130,545       143,851  

Total homebuilding

    1,206,067       1,139,697  

Financial services

    148,853       164,634  

Corporate and unallocated

    404,210       379,919  

Total assets

    $1,759,130       $1,684,250  

   

October 31,

 

(In thousands)

 

2013

   

2012

 

Investments in and advances to unconsolidated joint ventures:

               

Northeast

    $8,828       $18,954  

Mid-Atlantic

    33,052       32,014  

Midwest

    1,661       2,190  

Southeast

    3,412       4,636  

Southwest

    -       -  

West

    3,921       2,490  

Total homebuilding

    50,874       60,284  

Corporate and unallocated

    564       799  

Total investments in and advances to unconsolidated joint ventures

    $51,438       $61,083  

   

Year Ended October 31,

 

(In thousands)

 

2013

   

2012

   

2011

 

Homebuilding interest expense:

                       

Northeast

    $26,163       $25,507       $33,833  

Mid-Atlantic

    10,037       9,988       10,180  

Midwest

    3,737       2,994       2,441  

Southeast

    5,861       5,310       4,036  

Southwest

    16,071       15,880       14,552  

West

    12,960       14,416       10,264  

Total homebuilding

    74,829       74,095       75,306  

Corporate and unallocated

    68,745       78,338       96,539  

Financial services interest expense (1)

    499       553       350  

Total interest expense, net

    $144,073       $152,986       $172,195  

  

(1)

Financial services 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)

 

2013

   

2012

   

2011

 

Depreciation:

                       

Northeast

    $245       $316       $677  

Mid-Atlantic

    283       370       437  

Midwest

    528       517       1,825  

Southeast

    31       47       132  

Southwest

    163       217       292  

West

    148       302       409  

Total homebuilding

    1,398       1,769       3,772  

Financial services

    285       328       391  

Corporate and unallocated

    3,029       4,126       5,177  

Total depreciation

    $4,712       $6,223       $9,340  

   

Year Ended October 31,

 

(In thousands)

 

2013

   

2012

   

2011

 

Net additions to operating properties and equipment:

                       

Northeast

    $388       $2,944       $191  

Mid-Atlantic

    35       55       19  

Midwest

    279       218       66  

Southeast

    7       30       34  

Southwest

    44       -       28  

West

    19       -       118  

Total homebuilding

    772       3,247       456  

Financial services

    6       21       74  

Corporate and unallocated

    780       1,791       296  

Total net additions to operating properties and equipment

    $1,558       $5,059       $826  

   

Year Ended October 31,

 

(In thousands)

 

2013

   

2012

   

2011

 

Equity in earnings (losses) from unconsolidated joint ventures:

                       

Northeast

    $3,738       $3,202     $ (4,474

)

Mid-Atlantic

    5,631       155       (4,340

)

Midwest

    1,045       598       672  

Southeast

    1,287       1,503       676  

Southwest

    -       -       83  

West

    339       (57

)

    (1,575

)

Total equity in earnings (losses) from unconsolidated joint ventures

    $12,040       $5,401       $(8,958

)