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Note 18
 6 Months Ended
Apr. 30, 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 April 30,

Six Months Ended April 30,

(In thousands)

2013

2012

2013

2012

                                 

Revenues:

                               

Northeast

  $ 54,236   $ 51,775   $ 109,071   $ 93,307

Mid-Atlantic

    58,405     64,776     111,124     119,171

Midwest

    39,393     23,631     71,726     41,829

Southeast

    37,192     36,346     66,153     56,555

Southwest

    161,813     114,716     293,437     206,540

West

    61,326     42,011     107,429     78,763

Total homebuilding

    412,365     333,255     758,940     596,165

Financial services

    10,682     8,513     22,341     15,203

Corporate and unallocated

    (49

)

    (70

)

    (72

)

    (71

)

Total revenues

  $ 422,998   $ 341,698   $ 781,209   $ 611,297
                                 

(Loss) income before income taxes:

                               

Northeast

  $ (4,651

)

  $ (125

)

  $ (9,538

)

  $ (5,773

)

Mid-Atlantic

    3,344     5,058     4,269     7,669

Midwest

    2,279     (91

)

    3,479     (1,247

)

Southeast

    2,719     (3,876

)

    3,309     (6,733

)

Southwest

    16,538     8,235     24,641     12,785

West

    2,422     (2,948

)

    1,327     (3,920

)

Homebuilding income before income taxes

    22,651     6,253     27,487     2,781

Financial services

    3,545     3,150     7,776     4,663

Corporate and unallocated

    (27,461

)

    (7,065

)

    (57,330

)

    (22,668

)

(Loss) income before income taxes

  $ (1,265

)

  $ 2,338   $ (22,067

)

  $ (15,224

)


(In thousands)

April 30, 2013

October 31, 2012

                 

Assets:

               

Northeast

  $ 367,882   $ 396,073

Mid-Atlantic

    210,881     200,969

Midwest

    81,338     73,305

Southeast

    91,953     90,132

Southwest

    289,577     235,367

West

    127,269     143,851

Total homebuilding

    1,168,900     1,139,697

Financial services

    112,800     164,634

Corporate and unallocated

    337,187     379,919

Total assets

  $ 1,618,887   $ 1,684,250