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Note 16 - Operating and Reporting Segments
 3 Months Ended
Jan. 31, 2017
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
16.
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:
 
 
   
Three Months Ended
January 31,
  
(In thousands)
  
2017
    
2016
  
             
Revenues:
            
Northeast
  
$58,575
    
$72,504
  
Mid-Atlantic
  
100,226
    
93,820
  
Midwest
  
43,702
    
91,920
  
Southeast
  
56,584
    
39,252
  
Southwest
  
183,409
    
204,325
  
West
  
96,531
    
55,578
  
Total homebuilding
  
539,027
    
557,399
  
Financial services
  
12,849
    
18,226
  
Corporate and unallocated
  
133
    
(20
)
Total revenues
  
$552,009
    
$575,605
  
             
Income (loss) before income taxes:
            
Northeast
  
$906
    
$2,734
  
Mid-Atlantic
  
3,882
    
2,622
  
Midwest
  
712
    
(5,559
)
Southeast
  
(294
 )  
(1,834
)
Southwest
  
11,923
    
16,369
  
West
  
(754
 )  
(5,968
)
Homebuilding income before income taxes
  
16,375
    
8,364
  
Financial services
  
5,994
    
10,011
  
Corporate and unallocated
  
(22,046
 )  
(31,569
)
Income (loss) before income taxes
  
$323
    
$(13,194
)
 
(In thousands)
  
January 31,
2017
    
October 31,
2016
  
             
Assets:
            
Northeast
  
$211,610
    
$219,363
  
Mid-Atlantic
  
292,866
    
292,899
  
Midwest
  
107,213
    
111,596
  
Southeast
  
235,600
    
226,124
  
Southwest
  
371,940
    
341,472
  
West
  
254,379
    
269,400
  
Total homebuilding
  
1,473,608
    
1,460,854
  
Financial services
  
113,249
    
197,230
  
Corporate and unallocated (1)
  
558,439
    
696,872
  
Total assets
  
$2,145,296
    
$2,354,956
  
 
(1)
  Includes
$283.3
million and
$283.6
million of income taxes receivable
, including deferred tax assets
, as of
January
31,
2017
and
October
31,
2016,
respectively.