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Note 10 - Operating and Reporting Segments
 12 Months Ended
Oct. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

10. 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 lifestyle 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)

  

2015

    

2014

    

2013

  

Revenues:

                  

Northeast

   $189,497     $275,830     $282,855  

Mid-Atlantic

   399,500     332,719     289,303  

Midwest

   311,449     226,174     163,485  

Southeast

   207,662     204,671     147,570  

Southwest

   823,853     751,426     697,358  

West

   159,969     230,308     223,086  

Total homebuilding

   2,091,930     2,021,128     1,803,657  

Financial services

   56,665     42,414     47,727  

Corporate and unallocated

   (115

)

   (162

)

   (131

)

Total revenues

   $2,148,480     $2,063,380     $1,851,253  

(Loss) income before income taxes:

                  

Northeast

   $(7,742

)

   $(7,517

)

   $1,519  

Mid-Atlantic

   21,431     23,897     24,388  

Midwest

   14,012     17,879     12,270  

Southeast

   (6,330

)

   9,247     6,455  

Southwest

   67,437     74,527     76,459  

West

   (17,145

)

   21,303     14,398  

Total homebuilding

   71,663     139,336     135,489  

Financial services

   24,693     13,798     18,668  

Corporate and unallocated

   (118,121

)

   (132,954

)

   (132,222

)

(Loss) Income before income taxes

   $(21,765

)

   $20,180     $21,935  

   

October 31,

  

(In thousands)

  

2015

    

2014

  

Assets:

            

Northeast

   $321,983     $315,573  

Mid-Atlantic

   342,159     313,494  

Midwest

   197,899     169,967  

Southeast

   223,206     148,096  

Southwest

   465,740     410,756  

West

   259,943     143,245  

Total homebuilding

   1,810,930     1,501,131  

Financial services

   159,981     120,343  

Corporate and unallocated (1)

   631,387     668,456  

Total assets

   $2,602,298     $2,289,930  

 

(1)

Includes $290.3 million and $284.5 million of income taxes receivable - including deferred tax assets in fiscal 2015 and 2014, respectively.

   

October 31,

  

(In thousands)

  

2015

    

2014

  

Investments in and advances to unconsolidated joint ventures:

            

Northeast

   $12,340     $6,987  

Mid-Atlantic

   22,417     36,285  

Midwest

   (20

)

   806  

Southeast

   10,224     4,787  

Southwest

   -     -  

West

   16,122     14,562  

Total homebuilding

   61,083     63,427  

Corporate and unallocated

   126     456  

Total investments in and advances to unconsolidated joint ventures

   $61,209     $63,883  

   

Year Ended October 31,

  

(In thousands)

  

2015

    

2014

    

2013

  

Homebuilding interest expense:

                  

Northeast

   $14,150     $20,940     $26,163  

Mid-Atlantic

   16,268     9,542     10,037  

Midwest

   10,405     5,354     3,737  

Southeast

   9,552     7,827     5,861  

Southwest

   26,147     20,543     16,071  

West

   10,381     12,619     12,960  

Total homebuilding

   86,903     76,825     74,829  

Corporate and unallocated

   64,545     64,519     68,745  

Financial services interest expense (1)

   (1,066

)

   (119

)

   499  

Total interest expense, net

   $150,382     $141,225     $144,073  

  

(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)

  

2015

    

2014

    

2013

  

Depreciation:

                  

Northeast

   $136     $250     $245  

Mid-Atlantic

   28     45     283  

Midwest

   361     355     528  

Southeast

   40     31     31  

Southwest

   89     131     163  

West

   79     33     148  

Total homebuilding

   733     845     1,398  

Financial services

   47     68     285  

Corporate and unallocated

   2,608     2,504     3,029  

Total depreciation

  $3,388     $3,417     $4,712  

   

Year Ended October 31,

  

(In thousands)

  

2015

    

2014

    

2013

  

Net additions to operating properties and equipment:

                  

Northeast

   $-     $44     $388  

Mid-Atlantic

   58     23     35  

Midwest

   637     927     279  

Southeast

   227     59     7  

Southwest

   173     39     44  

West

   88     170     19  

Total homebuilding

   1,183     1,262     772  

Financial services

   -     28     6  

Corporate and unallocated

   871     2,133     780  

Total net additions to operating properties and equipment

   $2,054     $3,423     $1,558  

   

Year Ended October 31,

  

(In thousands)

  

2015

    

2014

    

2013

  

Equity in earnings (losses) from unconsolidated joint ventures:

                  

Northeast

   $856     $(1,302

)

   $3,738  

Mid-Atlantic

   4,502     6,459     5,631  

Midwest

   (105

)

   17     1,045  

Southeast

   1,213     2,119     1,287  

Southwest

   -     -     -  

West

   (2,297

)

   604     339  

Total equity in earnings (losses) from unconsolidated joint ventures

   $4,169     $7,897     $12,040