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Note 18 - Operating and Reporting Segments
 6 Months Ended
Apr. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

18.

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. 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, 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 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 before income taxes for the Homebuilding segments consists of revenues generated from the sales of homes and land, 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 noncontrolling 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)

 

2014

   

2013

   

2014

   

2013

 
                         

Revenues:

                       

Northeast

  $65,745     $54,236     $118,998     $109,071  

Mid-Atlantic

  68,735     58,405     129,255     111,124  

Midwest

  48,703     39,393     92,461     71,726  

Southeast

  52,023     37,192     91,164     66,153  

Southwest

  164,633     161,813     293,210     293,437  

West

  40,708     61,326     71,458     107,429  

Total homebuilding

  440,547     412,365     796,546     758,940  

Financial services

  9,412     10,682     17,506     22,341  

Corporate and unallocated

  (30 )   (49

)

  (75 )   (72

)

Total revenues

  $449,929     $422,998     $813,977     $781,209  
                         

(Loss) income before income taxes:

                       

Northeast

  $(2,759 )   $(4,651

)

  $(8,820 )   $(9,538

)

Mid-Atlantic

  2,462     3,344     4,375     4,269  

Midwest

  3,361     2,279     5,716     3,479  

Southeast

  3,315     2,719     4,746     3,309  

Southwest

  15,676     16,538     26,081     24,641  

West

  2,097     2,422     1,738     1,327  

Homebuilding income before income taxes

  24,152     22,651     33,836     27,487  

Financial services

  2,705     3,545     4,127     7,776  

Corporate and unallocated

  (34,155 )   (27,461

)

  (69,151 )   (57,330

)

Loss before income taxes

  $(7,298 )   $(1,265

)

  $(31,188 )   $(22,067

)


(In thousands)

 

April 30, 2014

   

October 31, 2013

 
                 

Assets:

               

Northeast

    $313,866       $323,152  

Mid-Atlantic

    295,251       240,486  

Midwest

    134,722       104,596  

Southeast

    125,582       101,410  

Southwest

    409,672       305,878  

West

    154,802       130,545  

Total homebuilding

    1,433,895       1,206,067  

Financial services

    84,682       148,853  

Corporate and unallocated

    320,246       404,210  

Total assets

    $1,838,823       $1,759,130