Information on Segments

3 Months Ended

Jan. 31, 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):



	Three months ended January 31,
	2020			2019
				(Restated)
Revenues:
Traditional Home Building:
North	$	254,059		$	271,518
Mid-Atlantic	162,476			134,898
South	183,630			176,928
Mountain	263,096			226,399
Pacific	395,356			444,049
Traditional Home Building	1,258,617			1,253,792
City Living	39,835			68,594
Corporate and other	(1,115		)	(3,078		)
Total home sales revenue	1,297,337			1,319,308
Land sales revenue	34,094			43,873
Total revenue	$	1,331,431		$	1,363,181

Income (loss) before income taxes:
Traditional Home Building:
North	$	2,531		$	15,070
Mid-Atlantic	6,988			7,140
South	9,077			15,666
Mountain	17,585			25,603
Pacific	63,322			91,632
Traditional Home Building	99,503			155,111
City Living	9,549			14,642
Corporate and other	(43,120		)	(18,307		)
Total	$	65,932		$	151,446

“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):



	January 31, 2020		October 31, 2019
			(Restated)
Traditional Home Building:
North	$	1,574,303	$	1,487,012
Mid-Atlantic	908,884		854,470
South	1,234,819		1,165,974
Mountain	1,917,134		1,769,649
Pacific	2,611,868		2,627,417
Traditional Home Building	8,247,008		7,904,522
City Living	546,468		529,507
Corporate and other	1,793,730		2,394,109
Total	$	10,587,206	$	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.