XML 86 R18.htm IDEA: XBRL DOCUMENT v2.4.1.9
Note 11 - Operating and Reporting Segments
 12 Months Ended
Oct. 31, 2014
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)

 

2014

   

2013

   

2012

 

Revenues:

                 

Northeast

  $275,830     $282,855     $233,326  

Mid-Atlantic

  332,719     289,303     273,080  

Midwest

  226,174     163,485     106,719  

Southeast

  204,671     147,570     128,684  

Southwest

  751,426     697,358     518,931  

West

  230,308     223,086     185,851  

Total homebuilding

  2,021,128     1,803,657     1,446,591  

Financial services

  42,414     47,727     38,735  

Corporate and unallocated

  (162

)

  (131

)

  27  

Total revenues

  $2,063,380     $1,851,253     $1,485,353  

Income (loss) before income taxes:

                 

Northeast

  $(7,517

)

  $1,519     $(4,683

)

Mid-Atlantic

  23,897     24,388     17,262  

Midwest

  17,879     12,270     253  

Southeast

  9,247     6,455     (4,828

)

Southwest

  74,527     76,459     42,178  

West

  21,303     14,398     (3,177

)

Total homebuilding

  139,336     135,489     47,005  

Financial services

  13,798     18,668     15,087  

Corporate and unallocated

  (132,954

)

  (132,222

)

  (163,340

)

Income (loss) before income taxes

  $20,180     $21,935     $(101,248

)


   

October 31,

(In thousands)

 

2014

   

2013

 

Assets:

           

Northeast

  $315,573     $323,152  

Mid-Atlantic

  313,494     240,486  

Midwest

  169,967     104,596  

Southeast

  148,096     101,410  

Southwest

  410,756     305,878  

West

  143,245     130,545  

Total homebuilding

  1,501,131     1,206,067  

Financial services

  120,343     148,853  

Corporate and unallocated (1)

  668,456     404,210  

Total assets

  $2,289,930     $1,759,130  

 

(1)

Includes $285.1 million related to the partial reversal of our deferred tax asset valuation allowance in fiscal 2014.


   

October 31,

(In thousands)

 

2014

   

2013

 

Investments in and advances to unconsolidated joint ventures:

           

Northeast

  $6,987     $8,828  

Mid-Atlantic

  36,285     33,052  

Midwest

  806     1,661  

Southeast

  4,787     3,412  

Southwest

  -     -  

West

  14,562     3,921  

Total homebuilding

  63,427     50,874  

Corporate and unallocated

  456     564  

Total investments in and advances to unconsolidated joint ventures

  $63,883     $51,438  

   

Year Ended October 31,

(In thousands)

 

2014

   

2013

   

2012

 

Homebuilding interest expense:

                 

Northeast

  $20,940     $26,163     $25,507  

Mid-Atlantic

  9,542     10,037     9,988  

Midwest

  5,354     3,737     2,994  

Southeast

  7,827     5,861     5,310  

Southwest

  20,543     16,071     15,880  

West

  12,619     12,960     14,416  

Total homebuilding

  76,825     74,829     74,095  

Corporate and unallocated

  64,519     68,745     78,338  

Financial services interest expense (1)

  (119

)

  499     553  

Total interest expense, net

  $141,225     $144,073     $152,986  

  

(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)

 

2014

   

2013

   

2012

 

Depreciation:

                 

Northeast

  $250     $245     $316  

Mid-Atlantic

  45     283     370  

Midwest

  355     528     517  

Southeast

  31     31     47  

Southwest

  131     163     217  

West

  33     148     302  

Total homebuilding

  845     1,398     1,769  

Financial services

  68     285     328  

Corporate and unallocated

  2,504     3,029     4,126  

Total depreciation

  $3,417     $4,712     $6,223  

   

Year Ended October 31,

(In thousands)

 

2014

   

2013

   

2012

 

Net additions to operating properties and equipment:

                 

Northeast

  $44     $388     $2,944  

Mid-Atlantic

  23     35     55  

Midwest

  927     279     218  

Southeast

  59     7     30  

Southwest

  39     44     -  

West

  170     19     -  

Total homebuilding

  1,262     772     3,247  

Financial services

  28     6     21  

Corporate and unallocated

  2,133     780     1,791  

Total net additions to operating properties and equipment

  $3,423     $1,558     $5,059  

   

Year Ended October 31,

(In thousands)

 

2014

   

2013

   

2012

 

Equity in earnings (losses) from unconsolidated joint ventures:

                 

Northeast

  $(1,302

)

  $3,738     $3,202  

Mid-Atlantic

  6,459     5,631     155  

Midwest

  17     1,045     598  

Southeast

  2,119     1,287     1,503  

Southwest

  -     -     -  

West

  604     339     (57

)

Total equity in earnings (losses) from unconsolidated joint ventures

  $7,897     $12,040     $5,401