Information on Segments

6 Months Ended

Apr. 30, 2020

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, affordable luxury, 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.

Our Traditional Home Building segment operates in five geographic segments. In the first quarter of fiscal 2020, we made certain changes to our Traditional Home Building regional management structure and realigned certain of the states falling among our five geographic segments, as follows:

Eastern Region:

•The North region: Connecticut, Delaware, Illinois, Massachusetts, Michigan, Pennsylvania, New Jersey and New York;

•The Mid-Atlantic region: Georgia, Maryland, North Carolina, Tennessee and Virginia;

•The South region: Florida, South Carolina and Texas;

Western Region:

•The Mountain region: Arizona, Colorado, Idaho, Nevada and Utah; and

•The Pacific region: California, Oregon and Washington.

Previously, our geographic segments were:

•North: Connecticut, Illinois, Massachusetts, Michigan, New Jersey and New York;

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

•South: Florida, Georgia, North Carolina, South Carolina and Texas;

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

•California: California.

Our new geographic reporting segments are consistent with how our chief operating decision makers are assessing operating performance and allocating capital following the realignment of the regional management structure. The realignment did not have any impact on our consolidated financial position, results of operations, earnings per share or cash flows. Prior period segment information was restated to conform to the new reporting structure.

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


	Six months ended April 30,						Three months ended April 30,
	2020		2019		2020		2019
			(Restated)				(Restated)
Revenues:
Traditional Home Building:
North	$	550,082	$	616,608	$	296,023	$	345,090
Mid-Atlantic	355,376		308,987		192,900		174,089
South	414,490		419,689		230,860		242,761
Mountain	600,600		512,208		337,504		285,809
Pacific	818,648		1,023,665		423,292		579,616
Traditional Home Building	2,739,196		2,881,157		1,480,579		1,627,365
City Living	76,607		152,668		36,772		84,074
Corporate and other	(2,232)		(2,460)		(1,117)		618
Total home sales revenue	2,813,571		3,031,365		1,516,234		1,712,057
Land sales revenue	66,932		47,910		32,838		4,037
Total revenue	$	2,880,503	$	3,079,275	$	1,549,072	$	1,716,094

Income (loss) before income taxes:
Traditional Home Building:
North	$	19,527	$	22,358	$	16,996	$	7,287
Mid-Atlantic	6,833		17,605		(155)		10,463
South	29,190		44,313		20,113		28,648
Mountain	50,784		52,980		33,199		27,377
Pacific	131,059		214,614		67,737		122,982
Traditional Home Building	237,393		351,870		137,890		196,757
City Living	18,247		40,476		8,698		25,834
Corporate and other	(87,595)		(64,741)		(44,475)		(46,432)
Total	$	168,045	$	327,605	$	102,113	$	176,159

“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):


	April 30, 2020		October 31, 2019
			(Restated)
Traditional Home Building:
North	$	1,540,813	$	1,487,012
Mid-Atlantic	961,159		854,470
South	1,250,034		1,165,974
Mountain	1,979,579		1,769,649
Pacific	2,527,780		2,627,417
Traditional Home Building	8,259,365		7,904,522
City Living	542,483		529,507
Corporate and other	2,008,963		2,394,109
Total	$	10,810,811	$	10,828,138

“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.