XML 25 R25.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 18
 3 Months Ended
Jan. 31, 2013
Segment Reporting Disclosure [Text Block]
18.  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.  The Company’s 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.

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 consists 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, interest expense and non-controlling interest expense.  Income before income taxes for the Financial Services segment consists 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 the Company’s segment operations was as follows:

   
Three Months Ended
January 31,
 
(In thousands)
 
2013
   
2012
 
             
Revenues:
           
Northeast
 
$
54,835
   
$
41,532
 
Mid-Atlantic
   
52,719
     
54,395
 
Midwest
   
32,333
     
18,199
 
Southeast
   
28,961
     
20,209
 
Southwest
   
131,624
     
91,824
 
West
   
46,103
     
36,751
 
Total homebuilding
   
346,575
     
262,910
 
Financial services
   
11,659
     
6,690
 
Corporate and unallocated
   
(23
)
   
(1
)
Total revenues
 
$
358,211
   
$
269,599
 
                 
(Loss) income before income taxes:
               
Northeast
 
$
(4,887
)
 
$
(5,648
)
Mid-Atlantic
   
925
     
2,611
 
Midwest
   
1,200
     
(1,156
)
Southeast
   
590
     
(2,856
)
Southwest
   
8,103
     
4,550
 
West
   
(1,095
)
   
(972
)
Homebuilding income (loss) before income taxes
   
4,836
     
(3,471
)
Financial services
   
4,231
     
1,513
 
Corporate and unallocated
   
(29,869
)
   
(15,604
)
Loss before income taxes
 
$
(20,802
)
 
$
(17,562
)

(In thousands)
 
January 31,
2013
   
October 31,
2012
 
             
Assets:
           
Northeast
 
$
381,159
   
$
396,073
 
Mid-Atlantic
   
200,652
     
200,969
 
Midwest
   
78,431
     
73,305
 
Southeast
   
89,244
     
90,132
 
Southwest
   
257,308
     
235,367
 
West
   
131,815
     
143,851
 
Total homebuilding
   
1,138,609
     
1,139,697
 
Financial services
   
92,174
     
164,634
 
Corporate and unallocated
   
349,527
     
379,919
 
Total assets
 
$
1,580,310
   
$
1,684,250