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Note 18 - Operating and Reporting Segments
 9 Months Ended
Jul. 31, 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 July 31,

   

Nine Months Ended July 31,

 

(In thousands)

 

2014

   

2013

   

2014

   

2013

 
                         

Revenues:

                       

Northeast

  $60,531     $67,214     $179,529     $176,285  

Mid-Atlantic

  90,123     89,365     219,378     200,489  

Midwest

  55,423     38,478     147,884     110,204  

Southeast

  55,449     35,731     146,613     101,884  

Southwest

  201,906     182,699     495,116     476,136  

West

  76,521     52,062     147,979     159,491  

Total homebuilding

  539,953     465,549     1,336,499     1,224,489  

Financial services

  11,106     12,878     28,612     35,219  

Corporate and unallocated

  (50

)

  (70

)

  (125

)

  (142

)

Total revenues

  $551,009     $478,357     $1,364,986     $1,259,566  
                         

Income (loss) before income taxes:

                       

Northeast

  $(1,971

)

  $1,028     $(10,791

)

  $(8,510

)

Mid-Atlantic

  5,397     8,036     9,772     12,305  

Midwest

  4,971     1,941     10,687     5,420  

Southeast

  2,244     276     6,990     3,585  

Southwest

  22,178     22,230     48,259     46,871  

West

  11,091     3,757     12,829     5,084  

Homebuilding income before income taxes

  43,910     37,268     77,746     64,755  

Financial services

  3,894     6,238     8,021     14,014  

Corporate and unallocated

  (32,432

)

  (33,118

)

  (101,583

)

  (90,448

)

Income (loss) before income taxes

  $15,372     $10,388     $(15,816

)

  $(11,679

)


(In thousands)

 

July 31, 2014

   

October 31, 2013

 
             

Assets:

           

Northeast

  $327,384     $323,152  

Mid-Atlantic

  313,962     240,486  

Midwest

  155,324     104,596  

Southeast

  134,998     101,410  

Southwest

  438,194     305,878  

West

  161,293     130,545  

Total homebuilding

  1,531,155     1,206,067  

Financial services

  98,461     148,853  

Corporate and unallocated

  264,112     404,210  

Total assets

  $1,893,728     $1,759,130