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 geogr

aphic 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.

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 operat

ions at our headquarters in 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)	2018			2017

Revenues:
Northeast	$	20,199		$	58,575
Mid-Atlantic		71,297			100,226
Midwest		40,579			43,702
Southeast		56,668			56,584
Southwest		128,305			183,409
West		85,050			96,531
Total homebuilding		402,098			539,027
Financial services		10,888			12,849
Corporate and unallocated (1)		4,180			133
Total revenues	$	417,166		$	552,009

(Loss) i ncome before income taxes:
Northeast	$	(9,701	)	$	906
Mid-Atlantic		1,952			3,882
Midwest		(2,344	)		712
Southeast		(1,661	)		(294	)
Southwest		5,511			11,923
West		8,067			(754	)
Homebuilding income before income taxes		1,824			16,375
Financial services		2,547			5,994
Corporate and unallocated (1)		(34,842	)		(22,046	)
(Loss) i ncome before income taxes	$	(30,471	)	$	323

(

) Corporate and unallocated for the

three

months ended

January 31, 2018

included corporate general and administrative costs of

$19.1

million, interest expense of

$19.6

million (a component of Other interest on our Condensed Consolidated Statements of Operations) and $(

3.9

) million of other income and expenses primarily related to interest income, gain on the sale of our corporate headquarters building and stock compensation. Corporate and unallocated for the

three

months ended

January 31, 2017

included corporate general and administrative costs of

$15.7

million, interest expense of

$13.3

million (a component of Other interest on our Condensed Consolidated Statements of Operations), gain on extinguishment of debt of $(

7.6

) million and

$0.6

million of other income and expenses primarily related to interest income, rental income, bond amortization and stock compensation.

(In thousands)	January 31, 2018		October 31, 2017

Assets:
Northeast	$	168,967	$	180,545
Mid-Atlantic		222,284		224,398
Midwest		86,909		84,960
Southeast		234,358		231,644
Southwest		325,296		294,337
West		171,372		175,347
Total homebuilding		1,209,186		1,191,231
Financial services		101,925		162,113
Corporate and unallocated		334,826		547,554
Total assets	$	1,645,937	$	1,900,898