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Note 17 - Operating and Reporting Segments
 3 Months Ended
Jan. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

17.

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 the Company’s segment operations was as follows:


   

Three Months Ended

 
   

January 31,

 

(In thousands)

 

2015

   

2014

 
             

Revenues:

           

Northeast

  $50,730     $53,253  

Mid-Atlantic

  81,185     60,520  

Midwest

  64,439     43,758  

Southeast

  37,894     39,141  

Southwest

  167,187     128,577  

West

  33,193     30,750  

Total homebuilding

  434,628     355,999  

Financial services

  11,122     8,094  

Corporate and unallocated

  (36 )   (45

)

Total revenues

  $445,714     $364,048  
             

(Loss) income before income taxes:

           

Northeast

  $(3,153 )   $(6,061

)

Mid-Atlantic

  5,177     1,913  

Midwest

  3,711     2,355  

Southeast

  (1,156 )   1,431  

Southwest

  11,325     10,405  

West

  (2,373 )   (359

)

Homebuilding income before income taxes

  13,531     9,684  

Financial services

  3,805     1,422  

Corporate and unallocated

  (37,016 )   (34,996

)

Loss before income taxes

  $(19,680 )   $(23,890

)


   

January 31,

   

October 31,

 

(In thousands)

 

2015

   

2014

 
             

Assets:

           

Northeast

  $314,941     $315,573  

Mid-Atlantic

  336,549     313,494  

Midwest

  176,218     169,967  

Southeast

  195,939     148,096  

Southwest

  427,782     410,756  

West

  199,819     143,245  

Total homebuilding

  1,651,248     1,501,131  

Financial services

  111,663     120,343  

Corporate and unallocated

  698,524     668,456  

Total assets

  $2,461,435     $2,289,930