XML 34 R16.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Note 10 - Operating and Reporting Segments | 12 Months Ended
--- | ---
Oct. 31, 2016
Notes to Financial Statements |
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 noted below. During fiscal 2016, we decided to exit the Minneapolis, MN and Raleigh, NC markets and in the third quarter of fiscal 2016, we completed the sale of our portfolios in those markets. Homebuilding:
| (1) | Northeast (New Jersey and Pennsylvania)
| (2) | Mid Atlantic (Delaware, Maryland, Virginia, Washington D.C. and West Virginia)
| (3) | Midwest (Illinois and Ohio)
| (4) | Southeast (Florida, Georgia 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 any 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 and 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 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:
|  | Year Ended October 31, |
(In thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Revenues: |  |  |  |  |  |  |  |  |
Northeast |  | $278,028 |  |  | $189,497 |  |  | $275,830 |
Mid-Atlantic |  | 458,579 |  |  | 399,500 |  |  | 332,719 |
Midwest |  | 311,322 |  |  | 311,449 |  |  | 226,174 |
Southeast |  | 260,584 |  |  | 207,662 |  |  | 204,671 |
Southwest |  | 1,028,529 |  |  | 823,853 |  |  | 751,426 |
West |  | 342,447 |  |  | 159,969 |  |  | 230,308 |
Total homebuilding |  | 2,679,489 |  |  | 2,091,930 |  |  | 2,021,128 |
Financial services |  | 72,617 |  |  | 56,665 |  |  | 42,414 |
Corporate and unallocated |  | 141 |  |  | (115 | ) |  | (162 | )
Total revenues |  | $2,752,247 |  |  | $2,148,480 |  |  | $2,063,380 |
Income (loss) before income taxes: |  |  |  |  |  |  |  |  |
Northeast |  | $(3,869 | ) |  | $(7,742 | ) |  | $(7,517 | )
Mid-Atlantic |  | 17,476 |  |  | 21,431 |  |  | 23,897 |
Midwest |  | (11,416 | ) |  | 14,012 |  |  | 17,879 |
Southeast |  | (17,791 | ) |  | (6,330 | ) |  | 9,247 |
Southwest |  | 84,424 |  |  | 67,437 |  |  | 74,527 |
West |  | 3,445 |  |  | (17,145 | ) |  | 21,303 |
Total homebuilding |  | 72,269 |  |  | 71,663 |  |  | 139,336 |
Financial services |  | 35,473 |  |  | 24,693 |  |  | 13,798 |
Corporate and unallocated |  | (105,306 | ) |  | (118,121 | ) |  | (132,954 | )
Income (loss) before income taxes |  | $2,436 |  |  | $(21,765 | ) |  | $20,180 |
|  | October 31, |
(In thousands) |  | 2016 |  |  | 2015 |
Assets: |  |  |  |  |  |
Northeast |  | $220,239 |  |  | $321,983 |
Mid-Atlantic |  | 294,225 |  |  | 342,159 |
Midwest |  | 112,115 |  |  | 197,899 |
Southeast |  | 226,686 |  |  | 223,206 |
Southwest |  | 342,270 |  |  | 465,740 |
West |  | 269,646 |  |  | 259,943 |
Total homebuilding |  | 1,465,181 |  |  | 1,810,930 |
Financial services |  | 197,230 |  |  | 159,981 |
Corporate and unallocated (1) |  | 717,029 |  |  | 631,387 |
Total assets |  | $2,379,440 |  |  | $2,602,298 |
| (1) | Includes $ 283.6 million and $ 290.3 million of income taxes receivable including deferred tax assets in fiscal 2016 and 2015, respectively.
|  | October 31, |
(In thousands) |  | 2016 |  |  | 2015 |
Investments in and advances to unconsolidated joint ventures: |  |  |  |  |  |
Northeast |  | $28,115 |  |  | $12,340 |
Mid-Atlantic |  | 22,407 |  |  | 22,417 |
Midwest |  | 5,516 |  |  | (20 | )
Southeast |  | 22,876 |  |  | 10,224 |
Southwest |  | 3,625 |  |  | - |
West |  | 17,547 |  |  | 16,122 |
Total homebuilding |  | 100,086 |  |  | 61,083 |
Corporate and unallocated |  | 416 |  |  | 126 |
Total investments in and advances to unconsolidated joint ventures |  | $100,502 |  |  | $61,209 |
|  | Year Ended October 31, |
(In thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Homebuilding interest expense: |  |  |  |  |  |  |  |  |
Northeast |  | $19,417 |  |  | $14,150 |  |  | $20,940 |
Mid-Atlantic |  | 23,662 |  |  | 16,268 |  |  | 9,542 |
Midwest |  | 12,275 |  |  | 10,405 |  |  | 5,354 |
Southeast |  | 16,770 |  |  | 9,552 |  |  | 7,827 |
Southwest |  | 37,552 |  |  | 26,147 |  |  | 20,543 |
West |  | 23,295 |  |  | 10,381 |  |  | 12,619 |
Total homebuilding |  | 132,971 |  |  | 86,903 |  |  | 76,825 |
Corporate and unallocated |  | 50,387 |  |  | 64,545 |  |  | 64,519 |
Financial services interest expense (1) |  | (763 | ) |  | (1,066 | ) |  | (119 | )
Total interest expense, net |  | $182,595 |  |  | $150,382 |  |  | $141,225 |
| (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) |  | 2016 |  |  | 2015 |  |  | 2014 |
Depreciation: |  |  |  |  |  |  |  |  |
Northeast |  | $62 |  |  | $136 |  |  | $250 |
Mid-Atlantic |  | 56 |  |  | 28 |  |  | 45 |
Midwest |  | 497 |  |  | 361 |  |  | 355 |
Southeast |  | 82 |  |  | 40 |  |  | 31 |
Southwest |  | 104 |  |  | 89 |  |  | 131 |
West |  | 92 |  |  | 79 |  |  | 33 |
Total homebuilding |  | 893 |  |  | 733 |  |  | 845 |
Financial services |  | 41 |  |  | 47 |  |  | 68 |
Corporate and unallocated |  | 2,631 |  |  | 2,608 |  |  | 2,504 |
Total depreciation |  | $3,565 |  |  | $3,388 |  |  | $3,417 |
|  | Year Ended October 31, |
(In thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Net additions to operating properties and equipment: |  |  |  |  |  |  |  |  |
Northeast |  | $78 |  |  | $- |  |  | $44 |
Mid-Atlantic |  | 208 |  |  | 58 |  |  | 23 |
Midwest |  | 3,180 |  |  | 637 |  |  | 927 |
Southeast |  | 233 |  |  | 227 |  |  | 59 |
Southwest |  | 199 |  |  | 173 |  |  | 39 |
West |  | 91 |  |  | 88 |  |  | 170 |
Total homebuilding |  | 3,989 |  |  | 1,183 |  |  | 1,262 |
Financial services |  | 30 |  |  | - |  |  | 28 |
Corporate and unallocated |  | 3,988 |  |  | 871 |  |  | 2,133 |
Total net additions to operating properties and equipment |  | $8,007 |  |  | $2,054 |  |  | $3,423 |
|  | Year Ended October 31, |
(In thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Equity in (losses) earnings from unconsolidated joint ventures: |  |  |  |  |  |  |  |  |
Northeast |  | $(2,639 | ) |  | $856 |  |  | $(1,302 | )
Mid-Atlantic |  | (27 | ) |  | 4,502 |  |  | 6,459 |
Midwest |  | (1,304 | ) |  | (105 | ) |  | 17 |
Southeast |  | (1,774 | ) |  | 1,213 |  |  | 2,119 |
Southwest |  | (64 | ) |  | - |  |  | - |
West |  | 1,462 |  |  | (2,297 | ) |  | 604 |
Total equity in (losses) earnings from unconsolidated joint ventures |  | $(4,346 | ) |  | $4,169 |  |  | $7,897 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration