Information on Segments

9 Months Ended

Jul. 31, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure

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.

Revenues 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,
	2020		2019		2020		2019
			(Restated)				(Restated)
Revenues:
Traditional Home Building:
North	$	840,481	$	976,616	$	290,399	$	360,008
Mid-Atlantic	556,655		522,703		201,279		213,716
South	690,809		663,109		276,319		243,420
Mountain	1,026,000		804,901		425,400		292,693
Pacific	1,225,072		1,597,157		406,424		573,492
Traditional Home Building	4,339,017		4,564,486		1,599,821		1,683,329
City Living	102,973		224,560		26,366		71,892
Corporate and other	(607)		(711)		1,625		1,749
Total home sales revenues	4,441,383		4,788,335		1,627,812		1,756,970
Land sales revenues	90,609		56,631		23,677		8,721
Total revenues	$	4,531,992	$	4,844,966	$	1,651,489	$	1,765,691
Income (loss) before income taxes:
Traditional Home Building:
North	$	33,249	$	47,483	$	13,722	$	25,126
Mid-Atlantic	20,189		29,571		13,356		11,968
South	61,612		68,711		32,422		24,397
Mountain	103,883		85,172		53,099		32,192
Pacific	207,867		336,412		76,808		121,798
Traditional Home Building	426,800		567,349		189,407		215,481
City Living	27,789		59,661		9,543		19,185
Corporate and other	(134,679)		(112,489)		(47,085)		(47,750)
Total	$	319,910	$	514,521	$	151,865	$	186,916

“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, 2020		October 31, 2019
			(Restated)
Traditional Home Building:
North	$	1,526,703	$	1,487,012
Mid-Atlantic	946,295		854,470
South	1,232,172		1,165,974
Mountain	1,961,496		1,769,649
Pacific	2,475,221		2,627,417
Traditional Home Building	8,141,887		7,904,522
City Living	537,855		529,507
Corporate and other	1,857,689		2,394,109
Total	$	10,537,431	$	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.

The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable 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,
	2020		2019		2020		2019
Traditional Home Building:
North	$	1,478	$	17,860	$	1,106	$	212
Mid-Atlantic	15,449		1,380		4,783		1,277
South	2,619		7,418		630		3,072
Mountain	427		102		167		87
Pacific	1,961		76		4		31
Total	21,934		26,836		6,690		4,679
City Living			4,800				—
	$	21,934	$	31,636	$	6,690	$	4,679