Information on Segments

9 Months Ended

Jul. 31, 2019

Segment Reporting Disclosure [Text Block]

Information on Segments

We operate in two segments: traditional home building and urban infill. We build and sell detached and attached homes in luxury residential communities located in affluent suburban markets that cater to move-up, empty-nester, active-adult, age-qualified, and second-home buyers in the United States (“Traditional Home Building”). We also build and sell homes in urban infill markets through City Living.

We have determined that our Traditional Home Building operations operate in five geographic segments: North, Mid-Atlantic, South, West, and California. The states comprising each geographic segment are as follows:

North: Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, and New York

Mid-Atlantic: Delaware, Maryland, Pennsylvania, and Virginia

South: Florida, Georgia, North Carolina, and Texas

West: Arizona, Colorado, Idaho, Nevada, Oregon, Utah, and Washington

California: California

In fiscal 2018, we acquired land and commenced development activities in the Salt Lake City, Utah and Portland, Oregon markets. In the second quarter of fiscal 2019, we opened several communities in these markets.

Revenue and income (loss) before income taxes for each of our segments, for the periods indicated, were as follows (amounts in thousands):



	Nine months ended July 31,						Three months ended July 31,
	2019			2018			2019			2018
Revenues:
Traditional Home Building:
North	$	602,316		$	626,719		$	210,919		$	266,226
Mid-Atlantic	749,083			765,925			287,695			304,060
South	811,029			711,466			318,530			299,259
West	1,019,200			989,877			353,886			382,455
California	1,382,858			1,336,183			512,299			610,737
Traditional Home Building	4,564,486			4,430,170			1,683,329			1,862,737
City Living	224,560			257,850			71,892			50,616
Corporate and other	(711		)				1,749
Total home sales revenue	4,788,335			4,688,020			1,756,970			1,913,353
Land sales revenue	56,631			—			8,721			—
Total revenue	$	4,844,966		$	4,688,020		$	1,765,691		$	1,913,353

Income (loss) before income taxes:
Traditional Home Building:
North	$	34,111		$	23,276		$	16,148		$	21,240
Mid-Atlantic	35,167			54,958			16,216			20,614
South	76,491			74,006			29,127			34,729
West	128,820			138,773			41,399			60,120
California	292,764			286,797			112,591			140,278
Traditional Home Building	567,353			577,810			215,481			276,981
City Living	59,660			60,266			19,185			13,617
Corporate and other	(112,492		)	(100,633		)	(47,750		)	(37,501		)
Total	$	514,521		$	537,443		$	186,916		$	253,097

“Corporate and other” is comprised principally of general corporate expenses such as our executive offices; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; interest income; income from certain of our ancillary businesses, including Gibraltar; and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures.

Total assets for each of our segments, as of the dates indicated, are shown in the table below (amounts in thousands):



	July 31, 2019		October 31, 2018
Traditional Home Building:
North	$	984,670	$	970,854
Mid-Atlantic	1,233,622		1,130,417
South	1,371,325		1,237,744
West	1,905,091		1,580,199
California	2,615,005		2,733,956
Traditional Home Building	8,109,713		7,653,170
City Living	494,046		516,238
Corporate and other	1,848,358		2,075,182
Total	$	10,452,117	$	10,244,590

“Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, deferred tax assets, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries.