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Note 17 - Operating and Reporting Segments
 6 Months Ended
Apr. 30, 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 April 30,

    

Six Months Ended April 30,

  

(In thousands)

  

2015

    

2014

    

2015

    

2014

  
                         

Revenues:

                        

Northeast

   $39,274     $65,745     $90,004     $118,998  

Mid-Atlantic

   76,777     68,735     157,962     129,255  

Midwest

   73,256     48,703     137,695     92,461  

Southeast

   49,275     52,023     87,169     91,164  

Southwest

   190,427     164,633     357,614     293,210  

West

   27,522     40,708     60,715     71,458  

Total homebuilding

   456,531     440,547     891,159     796,546  

Financial services

   12,457     9,412     23,579     17,506  

Corporate and unallocated

   (39 )   (30

)

   (75 )   (75

)

Total revenues

   $468,949     $449,929     $914,663     $813,977  
                         

(Loss) income before income taxes:

                        

Northeast

   $(3,812 )   $(2,759

)

   $(6,965 )   $(8,820

)

Mid-Atlantic

   (178 )   2,462     4,999     4,375  

Midwest

   1,210     3,361     4,921     5,716  

Southeast

   (1,202 )   3,315     (2,358 )   4,746  

Southwest

   14,022     15,676     25,347     26,081  

West

   (8,963 )   2,097     (11,336 )   1,738  

Homebuilding income before income taxes

   1,077     24,152     14,608     33,836  

Financial services

   4,949     2,705     8,754     4,127  

Corporate and unallocated

   (35,507 )   (34,155

)

   (72,523 )   (69,151

)

Loss before income taxes

   $(29,481 )   $(7,298

)

   $(49,161 )   $(31,188

)

(In thousands)

  

April 30, 2015

    

October 31, 2014

  
             

Assets:

            

Northeast

   $313,252     $315,573  

Mid-Atlantic

   345,473     313,494  

Midwest

   185,958     169,967  

Southeast

   202,738     148,096  

Southwest

   445,760     410,756  

West

   221,822     143,245  

Total homebuilding

   1,715,003     1,501,131  

Financial services

   127,301     120,343  

Corporate and unallocated

   674,690     668,456  

Total assets

   $2,516,994     $2,289,930