Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Dec. 19, 2016 | Apr. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TOLL BROTHERS INC | ||
Entity Central Index Key | 794,170 | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 162,403,000 | ||
Entity Information [Line Items] | |||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4,262,101 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 633,715 | $ 918,993 |
Marketable securities | 10,001 | |
Restricted Cash and Investments | 31,291 | 16,795 |
Inventory | 7,353,967 | 6,997,516 |
Property, construction and office equipment, net | 169,576 | 136,755 |
Receivables, prepaid expenses, and other assets | 582,758 | 335,860 |
Mortgage loans held for sale | 248,601 | 123,175 |
Customer deposits held in escrow | 53,057 | 56,105 |
Investments in unconsolidated entities | 496,411 | 412,860 |
Deferred tax assets, net of valuation allowances | 167,413 | 198,455 |
Total assets | 9,736,789 | 9,206,515 |
Liabilities: | ||
Loans payable | 871,079 | 1,000,439 |
Senior notes | 2,694,372 | 2,689,801 |
Mortgage company loan facility | 210,000 | 100,000 |
Customer deposits | 309,099 | 284,309 |
Accounts payable | 281,955 | 236,953 |
Accrued expenses | 1,072,300 | 608,066 |
Income taxes payable | 62,782 | 58,868 |
Total liabilities | 5,501,587 | 4,978,436 |
Stockholders' equity: | ||
Preferred stock, none issued | 0 | 0 |
Common stock, 177,937 and 177,931 shares issued at October 31, 2016 and October 31, 2015, respectively | 1,779 | 1,779 |
Additional paid-in capital | 728,464 | 728,125 |
Retained earnings | 3,977,297 | 3,595,202 |
Treasury stock, at cost -- 16,154 shares and 3,084 shares at October 31, 2016 and October 31, 2015, respectively | (474,912) | (100,040) |
Accumulated other comprehensive loss | (3,336) | (2,509) |
Total stockholders' equity | 4,229,292 | 4,222,557 |
Noncontrolling interest | 5,910 | 5,522 |
Total equity | 4,235,202 | 4,228,079 |
Total liabilities and stockholders' equity | $ 9,736,789 | $ 9,206,515 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares issued | 0 | 0 |
Common stock, shares issued | 177,937 | 177,931 |
Treasury stock, at cost | 16,154 | 3,084 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Revenues | $ 5,169,508 | $ 4,171,248 | $ 3,911,602 |
Cost of revenues | 4,144,065 | 3,269,270 | 3,081,837 |
Selling, general and administrative | 535,382 | 455,108 | 432,516 |
Total | 4,679,447 | 3,724,378 | 3,514,353 |
Income from operations | 490,061 | 446,870 | 397,249 |
Other: | |||
Income (loss) from unconsolidated entities | 40,748 | 21,119 | 41,141 |
Other income - net | 58,218 | 67,573 | 66,192 |
Income before income taxes | 589,027 | 535,562 | 504,582 |
Income tax provision | 206,932 | 172,395 | 164,550 |
Net income | 382,095 | 363,167 | 340,032 |
Other comprehensive (loss) income, net of tax: | |||
Change in pension liability | (858) | 311 | (677) |
Change in fair value of available-for-sale securities | 2 | 3 | |
Change in unrealized income (loss) on derivative held by equity investee | 31 | 16 | 223 |
Other comprehensive (loss) income | (827) | 329 | (451) |
Total comprehensive income | $ 381,268 | $ 363,496 | $ 339,581 |
Income per share: | |||
Basic | $ 2.27 | $ 2.06 | $ 1.91 |
Diluted | $ 2.18 | $ 1.97 | $ 1.84 |
Weighted average number of shares: | |||
Basic | 168,261 | 176,425 | 177,578 |
Diluted | 175,973 | 184,703 | 185,875 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Shares, Issued at Oct. 31, 2013 | 169,353 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2013 | $ 3,339,164 | $ 1,694 | $ 441,677 | $ 2,892,003 | $ 0 | $ (2,387) | $ 6,177 |
Net income | 340,032 | 340,032 | |||||
Issuance of common stock, shares | 7,188 | ||||||
Issuance of common stock, value | $ 220,438 | $ 72 | 220,366 | ||||
Purchase of treasury stock, shares | (2,947) | ||||||
Purchase of treasury stock, value | $ (90,754) | (90,754) | |||||
Exercise of stock options and stock-based compensation issuances, shares | 1,389 | ||||||
Exercise of stock options and stock-based compensation issuances, value | 29,753 | $ 13 | 28,197 | 1,543 | |||
Employee stock purchase issuances, shares | |||||||
Employee stock purchase issuances, value | 715 | 266 | 449 | ||||
Stock-based compensation | 21,656 | 21,656 | |||||
Other Comprehensive Income (Loss) | (451) | (451) | |||||
Income (loss) attributable to noncontrolling interest | (28) | (28) | |||||
Capital contribution (distribution) | 172 | 172 | |||||
Shares, Issued at Oct. 31, 2014 | 177,930 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2014 | 3,860,697 | $ 1,779 | 712,162 | 3,232,035 | (88,762) | (2,838) | 6,321 |
Net income | $ 363,167 | 363,167 | |||||
Purchase of treasury stock, shares | (1,665) | ||||||
Purchase of treasury stock, value | $ (56,888) | (56,888) | |||||
Exercise of stock options and stock-based compensation issuances, shares | 1 | ||||||
Exercise of stock options and stock-based compensation issuances, value | 37,826 | (6,956) | 44,782 | ||||
Employee stock purchase issuances, shares | |||||||
Employee stock purchase issuances, value | 844 | 16 | 828 | ||||
Stock-based compensation | 22,903 | 22,903 | |||||
Other Comprehensive Income (Loss) | 329 | 329 | |||||
Income (loss) attributable to noncontrolling interest | (14) | (14) | |||||
Capital contribution (distribution) | (785) | (785) | |||||
Shares, Issued at Oct. 31, 2015 | 177,931 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2015 | 4,228,079 | $ 1,779 | 728,125 | 3,595,202 | (100,040) | (2,509) | 5,522 |
Net income | $ 382,095 | 382,095 | |||||
Purchase of treasury stock, shares | (13,652) | ||||||
Purchase of treasury stock, value | $ (392,772) | (392,772) | |||||
Exercise of stock options and stock-based compensation issuances, shares | 6 | ||||||
Exercise of stock options and stock-based compensation issuances, value | (9,524) | (26,294) | 16,770 | ||||
Employee stock purchase issuances, shares | |||||||
Employee stock purchase issuances, value | 1,084 | (46) | 1,130 | ||||
Stock-based compensation | 26,679 | 26,679 | |||||
Other Comprehensive Income (Loss) | (827) | (827) | |||||
Income (loss) attributable to noncontrolling interest | (16) | (16) | |||||
Capital contribution (distribution) | 404 | 404 | |||||
Shares, Issued at Oct. 31, 2016 | 177,937 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2016 | $ 4,235,202 | $ 1,779 | $ 728,464 | $ 3,977,297 | $ (474,912) | $ (3,336) | $ 5,910 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Cash flow provided by operating activities: | |||
Net income | $ 382,095 | $ 363,167 | $ 340,032 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 23,121 | 23,557 | 22,999 |
Stock-based compensation | 26,679 | 22,903 | 21,656 |
Excess tax benefits from stock-based compensation | (2,114) | (1,628) | (7,593) |
Income from unconsolidated entities | (40,748) | (21,119) | (41,141) |
Distributions of earnings from unconsolidated entities | 15,287 | 19,459 | 43,973 |
Income from distressed loans and foreclosed real estate | (8,390) | (13,269) | (15,833) |
Deferred tax provision | 19,252 | 62,084 | 47,431 |
Change in deferred tax valuation allowances | 1,018 | (12,642) | (11,929) |
Inventory impairments and write-offs | 13,807 | 35,709 | 20,678 |
Other | (1,739) | (316) | (22) |
Changes in operating assets and liabilities | |||
Increase in inventory | (391,178) | (351,983) | (271,982) |
Origination of mortgage loans | (1,275,047) | (1,029,112) | (818,515) |
Sale of mortgage loans | 1,150,156 | 1,007,671 | 829,948 |
(Increase) decrease in restricted cash and investments | (14,496) | 1,547 | 13,694 |
Increase in receivables, prepaid expenses and other assets | (307,351) | (55,553) | (5,214) |
Increase in customer deposits | 27,838 | 46,478 | 10,516 |
Increase in accounts payable and accrued expenses | 524,553 | 28,729 | 82,101 |
(Decrease)/Increase in income taxes payable | 6,028 | (65,500) | 52,401 |
Net cash provided by (used in) operating activities | 148,771 | 60,182 | 313,200 |
Cash flow provided by (used in) investing activities: | |||
Purchase of property and equipment - net | (28,426) | (9,447) | (15,074) |
Sale and redemption of marketable securities | 10,000 | 2,000 | 40,242 |
Investment in unconsolidated entities | (69,655) | (123,940) | (113,029) |
Return of investments in unconsolidated entities | 47,806 | 39,766 | 73,845 |
Investment in foreclosed real estate and distressed loans | (1,133) | (2,624) | (2,089) |
Return of investments in foreclosed real estate and distressed loans | 49,619 | 37,625 | 53,130 |
Net increase in cash from purchase of joint venture interest | 3,848 | ||
Acquisition of a business, net of cash acquired | (1,489,116) | ||
Net cash (used in) provided by investing activities | 8,211 | (52,772) | (1,452,091) |
Cash flow (used in) provided by financing activities: | |||
Proceeds from issuance of senior notes | 350,000 | 600,000 | |
Debt issuance costs for senior notes | (35) | (3,175) | (4,739) |
Proceeds from loans payable | 2,443,496 | 1,954,432 | 2,229,371 |
Debt issuance costs for loans payable | (4,868) | (3,063) | |
Principal payments of loans payable | (2,497,585) | (1,659,458) | (1,767,115) |
Repayments of senior notes | (300,000) | (267,960) | |
Net proceeds from issuance of common stock | 220,365 | ||
Proceeds from stock-based benefit plans | 6,986 | 39,514 | 28,364 |
Excess tax benefits from stock-based compensation | 2,114 | 1,628 | 7,593 |
Purchase of treasury stock | (392,772) | (56,888) | (90,754) |
Receipts (payments) related to noncontrolling interest, net | 404 | (785) | 172 |
Net cash provided by (used in) financing activities | (442,260) | 325,268 | 952,234 |
Net increase (decrease) in cash and cash equivalents | (285,278) | 332,678 | (186,657) |
Cash and cash equivalents, beginning of period | 918,993 | 586,315 | 772,972 |
Cash and cash equivalents, end of period | $ 633,715 | $ 918,993 | $ 586,315 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company,” “we,” “us,” or “our”), a Delaware corporation, and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in 50% or less owned partnerships and affiliates are accounted for using the equity method unless it is determined that we have effective control of the entity, in which case we would consolidate the entity. References herein to fiscal year refer to our fiscal years ended or ending October 31. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Liquid investments or investments with original maturities of three months or less are classified as cash equivalents. Marketable Securities Marketable securities are classified as available-for-sale and, accordingly, are stated at fair value, which is based on quoted market prices. Changes in unrealized gains and losses are excluded from earnings and are reported as other comprehensive income, net of income tax effects, if any. The cost of marketable securities sold is based on the specific identification method. Restricted Cash and Investments Restricted cash and investments primarily represents cash deposits collateralizing certain deductibles under insurance policies, outstanding letters of credit under our bank revolving credit facility, and cash deposited into a voluntary employee benefit association to fund certain employee benefits. Inventory Inventory is stated at cost unless an impairment exists, in which case it is written down to fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment” (“ASC 360”). In addition to direct land acquisition costs, land development costs, and home construction costs, costs also include interest, real estate taxes, and direct overhead related to development and construction, which are capitalized to inventory during the period beginning with the commencement of development and ending with the completion of construction. For those communities that have been temporarily closed, no additional capitalized interest is allocated to a community’s inventory until it reopens. While the community remains closed, carrying costs such as real estate taxes are expensed as incurred. We capitalize certain interest costs to qualified inventory during the development and construction period of our communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to cost of revenues when the related inventory is delivered. Interest incurred on home building indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged to the Consolidated Statements of Operations and Comprehensive Income in the period incurred. Once a parcel of land has been approved for development and we open one of our typical communities, it may take four or more years to fully develop, sell, and deliver all the homes in such community. Longer or shorter time periods are possible depending on the number of home sites in a community and the sales and delivery pace of the homes in a community. Our master planned communities, consisting of several smaller communities, may take up to 10 years or more to complete. Because our inventory is considered a long-lived asset under GAAP, we are required, under ASC 360, to regularly review the carrying value of each community and write down the value of those communities for which we believe the values are not recoverable. Operating Communities : When the profitability of an operating community deteriorates, the sales pace declines significantly, or some other factor indicates a possible impairment in the recoverability of the asset, the asset is reviewed for impairment by comparing the estimated future undiscounted cash flow for the community to its carrying value. If the estimated future undiscounted cash flow is less than the community’s carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. The impairment is charged to cost of revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, we use various estimates such as (i) the expected sales pace in a community, based upon general economic conditions that will have a short-term or long-term impact on the market in which the community is located and on competition within the market, including the number of home sites available and pricing and incentives being offered in other communities owned by us or by other builders; (ii) the expected sales prices and sales incentives to be offered in a community; (iii) costs expended to date and expected to be incurred in the future, including, but not limited to, land and land development, home construction, interest, and overhead costs; (iv) alternative product offerings that may be offered in a community that will have an impact on sales pace, sales price, building cost, or the number of homes that can be built on a particular site; and (v) alternative uses for the property such as the possibility of a sale of the entire community to another builder or the sale of individual home sites. Future Communities : We evaluate all land held for future communities or future sections of operating communities, whether owned or under contract, to determine whether or not we expect to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for operating communities described above, as well as an evaluation of the regulatory environment applicable to the land and the estimated probability of obtaining the necessary approvals, the estimated time and cost it will take to obtain the approvals, and the possible concessions that will be required to be given in order to obtain them. Concessions may include cash payments to fund improvements to public places such as parks and streets, dedication of a portion of the property for use by the public or as open space, or a reduction in the density or size of the homes to be built. Based upon this review, we decide (i) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (ii) as to land owned, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. We then further determine whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to cost of revenues in the period in which the need for the write-off is determined. The estimates used in the determination of the estimated cash flows and fair value of both current and future communities are based on factors known to us at the time such estimates are made and our expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to current and future communities and such amounts could be material. Variable Interest Entities We are required to consolidate variable interest entities (“VIEs”) in which we have a controlling financial interest in accordance with ASC 810, “Consolidation” (“ASC 810”). A controlling financial interest will have both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Our variable interest in VIEs may be in the form of equity ownership, contracts to purchase assets, management services, and development agreements between us and a VIE, loans provided by us to a VIE or other member, and/or guarantees provided by members to banks and other parties. We have a significant number of land purchase contracts and several investments in unconsolidated entities which we evaluate in accordance with ASC 810. We analyze our land purchase contracts and the unconsolidated entities in which we have an investment to determine whether the land sellers and unconsolidated entities are VIEs and, if so, whether we are the primary beneficiary. We examine specific criteria and use our judgment when determining if we are the primary beneficiary of a VIE. Factors considered in determining whether we are the primary beneficiary include risk and reward sharing, experience and financial condition of other member(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality between us and the other member(s), and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether we are the primary beneficiary may require significant judgment. Property, Construction, and Office Equipment Property, construction, and office equipment are recorded at cost and are stated net of accumulated depreciation of $114.5 million and $138.7 million at October 31, 2016 and 2015 , respectively. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. In fiscal 2016 , 2015 , and 2014 , we recognized $15.5 million , $15.7 million , and $13.4 million of depreciation expense, respectively. Receivables, Prepaid Expenses, and Other Assets Receivables, prepaid expenses, and other assets at October 31, 2016 and 2015 , consisted of the following (amounts in thousands): 2016 2015 Expected recoveries from insurance carriers and suppliers $ 165,696 $ 8,314 Improvement cost receivable 85,627 78,565 Escrow cash held by our captive title company 138,633 24,609 Property held for rental development 81,693 78,888 Investment in foreclosed real estate owned 11,552 50,233 Prepaid expenses 25,659 28,044 Other 73,898 67,207 $ 582,758 $ 335,860 See Note 6, “Accrued Expenses,” for additional information regarding the expected recoveries from insurance carriers and suppliers. At October 31, 2016 , escrow cash held by our captive title company includes $106.1 million in connection with the formation of a joint venture in December 2016. See Note 4, “Investments in Unconsolidated Entities – Home Building Joint Ventures,” for additional information. Mortgage Loans Held for Sale Residential mortgage loans held for sale are measured at fair value in accordance with the provisions of ASC 825, “Financial Instruments” (“ASC 825”). We believe the use of ASC 825 improves consistency of mortgage loan valuations between the date the borrower locks in the interest rate on the pending mortgage loan and the date of the mortgage loan sale. At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans using the market approach to determine fair value. The evaluation is based on the current market pricing of mortgage loans with similar terms and values as of the reporting date, and such pricing is applied to the mortgage loan portfolio. We recognize the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, we recognize the fair value of our forward loan commitments as a gain or loss. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan. In addition, the recognition of net origination costs and fees associated with residential mortgage loans originated are expensed as incurred. These gains and losses, interest income, and origination costs and fees are recognized in “Other income - net” in the Consolidated Statements of Operations and Comprehensive Income. Investments in Unconsolidated Entities In accordance with ASC 323, “Investments—Equity Method and Joint Ventures,” we review each of our investments on a quarterly basis for indicators of impairment. A series of operating losses of an investee, the inability to recover our invested capital, or other factors may indicate that a loss in value of our investment in the unconsolidated entity has occurred. If a loss exists, we further review the investment to determine if the loss is other than temporary, in which case we write down the investment to its fair value. The evaluation of our investment in unconsolidated entities entails a detailed cash flow analysis using many estimates, including, but not limited to, expected sales pace, expected sales prices, expected incentives, costs incurred and anticipated, sufficiency of financing and capital, competition, market conditions, and anticipated cash receipts, in order to determine projected future distributions. In addition, for rental properties, we review rental trends, expected future expenses, and expected cash flows to determine estimated fair values of the properties. Our unconsolidated entities that develop land or develop for-sale homes and condominiums evaluate their inventory in a similar manner as we do. See “Inventory” above for more detailed disclosure on our evaluation of inventory. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, our proportionate share is reflected in income from unconsolidated entities with a corresponding decrease to our investment in unconsolidated entities. We are a party to several joint ventures with unrelated parties to develop and sell land that is owned by the joint ventures. We recognize our proportionate share of the earnings from the sale of home sites to other builders, including our joint venture partners. We do not recognize earnings from the home sites we purchase from these ventures at the time of purchase; instead, our cost basis in those home sites is reduced by our share of the earnings realized by the joint venture from sales of those home sites to us. We are also a party to several other joint ventures. We recognize our proportionate share of the earnings and losses of our unconsolidated entities. Investments in Foreclosed Real Estate Foreclosed real estate owned (“REO”) assets, either directly owned or owned through a participation arrangement, acquired through subsequent foreclosure or deed in lieu actions on non-performing loans, are initially recorded at fair value based upon third-party appraisals, broker opinions of value, or internal valuation methodologies (which may include discounted cash flows, capitalization rate analysis, or comparable transactional analysis). Unobservable inputs used in estimating the fair value of REO assets are based upon the best information available under the circumstances and take into consideration the financial condition and operating results of the asset, local market conditions, the availability of capital, interest and inflation rates, and other factors deemed appropriate by management. REO assets acquired are reviewed to determine if they should be classified as “held and used” or “held for sale.” REO classified as “held and used” is stated at carrying cost unless an impairment exists, in which case it is written down to fair value in accordance with ASC 360. REO classified as “held for sale” is carried at the lower of carrying amount or fair value less cost to sell. An impairment charge is recognized for any decreases in estimated fair value subsequent to the acquisition date. For both classifications, carrying costs incurred after the acquisition, including property taxes and insurance, are expensed. As of October 31, 2016 and 2015 , our investment in REO was $11.6 million and $50.2 million , respectively, which is included in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheets. In prior periods, we presented our investments in REO in a separate line item in our Consolidated Balance Sheets. Our Consolidated Balance Sheet at October 31, 2015 has been reclassified to conform to the fiscal 2016 presentation. As of October 31, 2016 , approximately $1.5 million and $10.1 million of REO were classified as held-for-sale and held-and-used, respectively. As of October 31, 2015 , approximately $1.7 million and $48.5 million of REO were classified as held-for-sale and held-and-used, respectively. For the years ended October 31, 2016 , 2015 , and 2014 , we recorded impairments on REO of $1.2 million , $0.8 million , and $1.4 million , respectively. Fair Value Disclosures We use ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), to measure the fair value of certain assets and liabilities. ASC 820 provides a framework for measuring fair value in accordance with GAAP, establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and requires certain disclosures about fair value measurements. The fair value hierarchy is summarized below: Level 1: Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2: Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active. Level 3: Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. Treasury Stock Treasury stock is recorded at cost. Issuance of treasury stock is accounted for on a first-in, first-out basis. Differences between the cost of treasury stock and the re-issuance proceeds are charged to additional paid-in capital. Revenue and Cost Recognition Revenues and cost of revenues from home sales are recorded at the time each home is delivered and title and possession are transferred to the buyer. For our standard attached and detached homes, land, land development, and related costs, both incurred and estimated to be incurred in the future, are amortized to the cost of homes closed based upon the total number of homes to be constructed in each community. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs subsequent to the commencement of delivery of homes are allocated to the remaining undelivered homes in the community. Home construction and related costs are charged to the cost of homes closed under the specific identification method. The estimated land, common area development, and related costs of master planned communities, including the cost of golf courses, net of their estimated residual value, are allocated to individual communities within a master planned community on a relative sales value basis. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs are allocated to the remaining home sites in each of the communities of the master planned community. For high-rise/mid-rise projects, land, land development, construction, and related costs, both incurred and estimated to be incurred in the future, are generally amortized to the cost of units closed based upon an estimated relative sales value of the units closed to the total estimated sales value. Any changes resulting from a change in the estimated total costs or revenues of the project are allocated to the remaining units to be delivered. Forfeited Customer Deposits: Forfeited customer deposits are recognized in “Other income – net” in our Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit. Sales Incentives: In order to promote sales of our homes, we grant our home buyers sales incentives from time to time. These incentives will vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives that impact the value of the home or the sales price paid, such as special or additional options, are generally reflected as a reduction in sales revenues. Incentives that we pay to an outside party, such as paying some or all of a home buyer’s closing costs, are recorded as an additional cost of revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds. Advertising Costs We expense advertising costs as incurred. Advertising costs were $23.1 million , $18.2 million , and $15.6 million for the years ended October 31, 2016 , 2015 , and 2014 , respectively. Warranty and Self-Insurance Warranty: We provide all of our home buyers with a limited warranty as to workmanship and mechanical equipment. We also provide many of our home buyers with a limited 10 -year warranty as to structural integrity. We accrue for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Warranty costs are accrued based upon historical experience. Adjustments to our warranty liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. Over the past several years, we have had a significant number of warranty claims related primarily to older homes built in Pennsylvania and Delaware. See Note 6 – “Accrued Expenses” in Item 15(a)1 of this Form 10-K for additional information regarding these warranty charges. Self-Insurance: We maintain, and require the majority of our subcontractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our home building activities, subject to certain self-insured retentions, deductibles and other coverage limits (“self-insured liability”). We also provide general liability insurance for our subcontractors in Arizona, California, Nevada, Washington, and certain areas of Texas, where eligible subcontractors are enrolled as insureds under our general liability insurance policies in each community in which they perform work. For those enrolled subcontractors, we absorb their general liability associated with the work performed on our homes within the applicable community as part of our overall general liability insurance and our self-insurance through our captive insurance subsidiary. We record expenses and liabilities based on the estimated costs required to cover our self-insured liability and the estimated costs of potential claims and claim adjustment expenses that are above our coverage limits or that are not covered by our insurance policies. These estimated costs are based on an analysis of our historical claims and industry data, and include an estimate of claims incurred but not yet reported (“IBNR”). We engage a third-party actuary that uses our historical claim and expense data, input from our internal legal and risk management groups, as well as industry data, to estimate our liabilities related to unpaid claims, IBNR associated with the risks that we are assuming for our self-insured liability, and other required costs to administer current and expected claims. These estimates are subject to uncertainty due to a variety of factors, the most significant being the long period of time between the delivery of a home to a home buyer and when a structural warranty or construction defect claim may be made, and the ultimate resolution of the claim. Though state regulations vary, construction defect claims may be reported and resolved over a prolonged period of time, which can extend for 10 years or longer. As a result, the majority of the estimated liability relates to IBNR. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and the types of product we build, insurance industry practices, and legal or regulatory actions and/or interpretations, among other factors. Key assumptions used in these estimates include claim frequencies, severities, and settlement patterns, which can occur over an extended period of time. In addition, changes in the frequency and severity of reported claims and the estimates to settle claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Due to the degree of judgment required, and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated, and the difference could be material to our consolidated financial statements. Stock-Based Compensation We account for our stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”). We use a lattice model for the valuation for our stock option grants. The option pricing models used are designed to estimate the value of options that, unlike employee stock options and restricted stock units, can be traded at any time and are transferable. In addition to restrictions on trading, employee stock options and restricted stock units may include other restrictions such as vesting periods. Further, such models require the input of highly subjective assumptions, including the expected volatility of the stock price. Stock-based compensation expense is generally included in “Selling, general and administrative” expense in our Consolidated Statements of Operations and Comprehensive Income. Legal Expenses Transactional legal expenses for land acquisition and entitlement, and financing are capitalized and expensed over their appropriate life. We expense legal fees related to litigation, warranty and insurance claims when incurred. Income Taxes We account for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities are recorded based on temporary differences between the amounts reported for financial reporting purposes and the amounts reported for income tax purposes. In accordance with the provisions of ASC 740, we assess the realizability of our deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. See “Income Taxes – Valuation Allowance” below. Federal and state income taxes are calculated on reported pre-tax earnings based on current tax law and also include, in the applicable period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized for financial reporting purposes in different periods than for income tax purposes. Significant judgment is required in determining income tax provisions and evaluating tax positions. We establish reserves for income taxes when, despite the belief that our tax positions are fully supportable, we believe that our positions may be challenged and disallowed by various tax authorities. The consolidated tax provisions and related accruals include the impact of such reasonably estimable disallowances as deemed appropriate. To the extent that the probable tax outcome of these matters changes, such changes in estimates will impact the income tax provision in the period in which such determination is made. ASC 740 clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is “more-likely-than-not” (defined as a substantiated likelihood of more than 50% ), based on the technical merits of the position, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken. If a tax position does not meet the more-likely-than-not recognition threshold, despite our belief that our filing position is supportable, the benefit of that tax position is not recognized in the Consolidated Statements of Operations and Comprehensive Income and we are required to accrue potential interest and penalties until the uncertainty is resolved. Potential interest and penalties are recognized as a component of the provision for income taxes. Differences between amounts taken in a tax return and amounts recognized in the financial statements are considered unrecognized tax benefits. We believe that we have a reasonable basis for each of our filing positions and intend to defend those positions if challenged by the IRS or other taxing jurisdiction. If the IRS or other taxing authorities do not disagree with our position, and after the statute of limitations expires, we will recognize the unrecognized tax benefit in the period that the uncertainty of the tax position is eliminated. Income Taxes — Valuation Allowance Significant judgment is applied in assessing the realizability of deferred tax assets. In accordance with GAAP, a valuation allowance is established against a deferred tax asset if, based on the available evidence, it is more-likely-than-not that such asset will not be realized. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law. We assess the need for valuation allowances for deferred tax assets based on GAAP’s more-likely-than-not realization threshold criteria. In our assessment, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. Forming a conclusion that a valuation allowance is not needed is difficult when there is significant negative evidence such as cumulative losses in recent years. This assessment considers, among other matters, the nature, consistency, and magnitude of current and cumulative income and losses; forecasts of future profitability; the duration of statutory carryback or carryforward periods; our experience with operating loss and tax credit carryforwards being used before expiration; and tax planning alternatives. Our assessment of the need for a valuation allowance on our deferred tax assets includes assessing the likely future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. Changes in existing tax laws or rates could affect our actual tax results, and our future business results may affect the amount of our deferred tax liabilities or the valuation of our deferred tax assets over time. Our accounting for deferred tax assets represents our best estimate of future events. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods (carryforward period assumptions), actual results could differ from the |
Acquisition
Acquisition | 12 Months Ended |
Oct. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions Shapell Industries, Inc. On February 4, 2014 , we completed our acquisition of Shapell Industries, Inc. (“Shapell”) pursuant to a purchase and sale agreement dated November 6, 2013 , with Shapell Investment Properties, Inc. (“SIPI”). We acquired all of the equity interests in Shapell from SIPI for $1.49 billion , net of cash acquired (the “Acquisition”). We acquired the single-family residential real property development business of Shapell, including a portfolio of approximately 4,950 home sites in California, some of which we have sold to other builders. The Acquisition provided us with a premier California land portfolio, including 11 active selling communities as of the acquisition date, in affluent, high-growth markets: the San Francisco Bay area, metro Los Angeles, Orange County, and the Carlsbad market. As part of the Acquisition, we assumed contracts to deliver 126 homes with an aggregate value of approximately $105.3 million . Coleman Real Estate Holdings, LLC In October 2016, we entered into an agreement to acquire substantially all of the assets and operations of Coleman Real Estate Holdings, LLC (“Coleman”). In November 2016, we completed the acquisition of Coleman for approximately $85.2 million in cash. The assets acquired were primarily inventory, including approximately 1,750 home sites owned or controlled through land purchase agreements. As part of the acquisition, we assumed contracts to deliver 128 homes with an aggregate value of $38.8 million . The average price of the undelivered homes at the date of acquisition was approximately $303,000 . As a result of this acquisition, our selling community count increased by 15 communities at the acquisition date. |
Inventory
Inventory | 12 Months Ended |
Oct. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory at October 31, 2016 and 2015 consisted of the following (amounts in thousands): 2016 2015 Land controlled for future communities $ 71,729 $ 75,214 Land owned for future communities 1,884,146 2,033,447 Operating communities 5,398,092 4,888,855 $ 7,353,967 $ 6,997,516 Operating communities include communities offering homes for sale, communities that have sold all available home sites but have not completed delivery of the homes, communities that were previously offering homes for sale but are temporarily closed due to business conditions or non-availability of improved home sites and that are expected to reopen within 12 months of the end of the fiscal year being reported on, and communities preparing to open for sale. The carrying value attributable to operating communities includes the cost of homes under construction, land and land development costs, the carrying cost of home sites in current and future phases of these communities, and the carrying cost of model homes. Communities that were previously offering homes for sale but are temporarily closed due to business conditions and that do not have any remaining backlog and are not expected to reopen within 12 months of the end of the fiscal period being reported on have been classified as land owned for future communities. Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”). Information regarding the classification, number, and carrying value of these temporarily closed communities at October 31, 2016 , 2015 , and 2014 , is provided in the table below ($ amounts in thousands): 2016 2015 2014 Land owned for future communities: Number of communities 18 15 16 Carrying value (in thousands) $ 123,936 $ 119,138 $ 122,015 Operating communities: Number of communities 3 11 9 Carrying value (in thousands) $ 8,523 $ 63,668 $ 42,092 We provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable in each of the three fiscal years ended October 31, 2016 , 2015 , and 2014 , as shown in the table below (amounts in thousands): Charge: 2016 2015 2014 Land controlled for future communities $ 3,142 $ 809 $ 3,123 Land owned for future communities 2,300 12,600 Operating communities 8,365 22,300 17,555 $ 13,807 $ 35,709 $ 20,678 See Note 11, “Fair Value Disclosures,” for information regarding the number of operating communities that we tested for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and the fair value of those communities, net of impairment charges. See Note 14, “Commitments and Contingencies,” for information regarding land purchase commitments. At October 31, 2016 , we evaluated our land purchase contracts to determine if any of the selling entities were VIEs, and, if they were, whether we were the primary beneficiary of any of them. Under these land purchase contracts, we do not possess legal title to the land; our risk is generally limited to deposits paid to the sellers; and the creditors of the sellers generally have no recourse against us. At October 31, 2016 , we determined that 78 land purchase contracts, with an aggregate purchase price of $987.3 million , on which we had made aggregate deposits totaling $44.1 million , were VIEs and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2015 , we determined that 61 land purchase contracts, with an aggregate purchase price of $663.6 million , on which we had made aggregate deposits totaling $45.0 million , were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. Interest incurred, capitalized, and expensed in each of the three fiscal years ended October 31, 2016 , 2015 , and 2014 , was as follows (amounts in thousands): 2016 2015 2014 Interest capitalized, beginning of year $ 373,128 $ 356,180 $ 343,077 Interest incurred 164,001 155,170 163,815 Interest expensed to cost of revenues (160,337 ) (142,947 ) (137,457 ) Write-off against other income (1,143 ) (3,843 ) (5,394 ) Interest reclassified to property, construction, and office equipment (1,111 ) Interest capitalized on investments in unconsolidated entities (5,818 ) (7,467 ) (9,672 ) Previously capitalized interest on investments in unconsolidated entities transferred to inventory 699 16,035 1,811 Interest capitalized, end of year $ 369,419 $ 373,128 $ 356,180 During fiscal 2016, we reclassified $17.1 million of inventory related to two golf course facilities and a parking garage to property, construction, and office equipment and such amount was net of $2.1 million transferred to accrued liabilities related to golf deferred membership fees. The amounts were reclassified due to the completion of construction of the facilities and the substantial completion of the master planned communities of which the golf facilities are a part. During fiscal 2015, we transferred $132.3 million from investment in unconsolidated entities to inventory. The transfer related to the transfer of title of condominium units built by a Home Building Joint Venture to us. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Oct. 31, 2016 | |
Investments in and Advances to Unconsolidated Entities [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities We have investments in various unconsolidated joint venture entities. These joint ventures (i) develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) develop for-sale homes (“Home Building Joint Ventures”); (iii) develop luxury for-rent residential apartments, commercial space, and a hotel (“Rental Property Joint Ventures”), which includes our investment in Toll Brothers Realty Trust (the “Trust”); and (iv) invest in distressed loans and real estate and provide financing for residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”). In fiscal 2016 , 2015 and 2014 , we recognized income from the unconsolidated entities in which we had an investment of $40.7 million , $21.1 million , and $41.1 million , respectively. The table below provides information as of October 31, 2016 , regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands): Land Home Building Rental Property Gibraltar Joint Ventures Total Number of unconsolidated entities 7 3 12 4 26 Investment in unconsolidated entities $ 223,483 $ 98,754 $ 153,640 $ 20,534 $ 496,411 Number of unconsolidated entities with funding commitments by the Company 5 2 4 1 12 Company’s remaining funding commitment to unconsolidated entities $ 244,287 $ 9,902 $ 9,623 $ 10,000 $ 273,812 Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at October 31, 2016 , regarding the debt financing obtained by category ($ amounts in thousands): Land Home Building Rental Property Total Number of joint ventures with debt financing 4 2 10 16 Aggregate loan commitments $ 470,000 $ 135,253 $ 854,266 $ 1,459,519 Amounts borrowed under commitments $ 393,741 $ 106,857 $ 659,191 $ 1,159,789 More specific and/or recent information regarding our investments in, advances to, and future commitments to these entities is provided below. Land Development Joint Ventures During the year ended October 31, 2016 , our Land Development Joint Ventures sold approximately 776 lots and recognized revenues of $142.0 million . We acquired 207 of these lots for $64.2 million . Our share of the joint venture income from the lots we acquired of $9.3 million was deferred. During the year ended October 31, 2015 , our Land Development Joint Ventures sold approximately 1,015 lots and recognized revenues of $128.9 million . We acquired 376 of these lots for $56.2 million . Our share of the income from the lots we acquired of $9.8 million was deferred. Subsequent event We have an investment in a joint venture in which we have a 50% interest to develop a parcel of land located in Irvine, California. The joint venture expects to develop approximately 840 home sites on this land and sell approximately 50% of the value of the home sites to each of the members of the joint venture. At October 31, 2016 , we had an investment of $85.3 million in this joint venture and were committed to make additional contributions to this joint venture of up to $213.0 million . To finance a portion of the land purchase, the joint venture entered into a $320.0 million purchase money mortgage with the seller at the formation of the joint venture. Subsequent to October 31, 2016 , the joint venture entered into a $200.0 million building loan agreement and each member made a capital contribution of $80.0 million . A portion of the proceeds from the building loan in addition to the capital contributions made subsequent to October 31, 2016 , were used to repay the purchase money mortgage. We and an affiliate of our partner provided certain guarantees under the building loan agreement. Each partner has an obligation to fund 50% of the payments made as a result of performing under these guarantees. We estimate that the maximum exposure under these guarantees would be $200.0 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner. Home Building Joint Ventures Our Home Building Joint Ventures are delivering homes in New York City and Jupiter, Florida. During the year ended October 31, 2016 , our Home Building Joint Ventures delivered 115 homes with a value of $164.9 million . During the year ended October 31, 2015 , our Home Building Joint Ventures delivered 96 homes with a value of $78.1 million . In the first quarter of fiscal 2015 , we entered into a joint venture with an unrelated party to complete the development of a high-rise luxury condominium project in New York City on property that we owned. We contributed $15.9 million as our initial contribution for a 25% interest in this joint venture. We sold the property to the joint venture for $78.5 million , and we were reimbursed for development and construction costs incurred by us prior to the sale. The gain of $9.3 million that we realized on the sale in fiscal 2015 was deferred and will be recognized in our results of operations as units are sold and delivered to the ultimate home buyer. In fiscal 2016 , the joint venture commenced settlement of units and, accordingly, we recognized $1.5 million of previously deferred gains. At October 31, 2016 , we had an investment of $19.8 million in this joint venture. In fiscal 2015, the joint venture entered into a construction loan agreement of $124.0 million to fund the land purchase and a portion of the cost of the development of the property. At October 31, 2016 , the joint venture had $83.0 million borrowed under the construction loan. Subsequent event In December 2016 , we entered into a joint venture with an unrelated party to complete the development of a high-rise luxury condominium project in New York City. Before the formation of this joint venture, we acquired the property and incurred approximately $176.0 million of land and land development costs. The joint venture, in which we have a 20% interest, purchased the property from us at our cost, of which $59.8 million was financed by a $236.5 million construction loan obtained by the joint venture. From the sale, we received proceeds of $148.0 million , of which $106.1 million was held in escrow by our captive title company at October 31, 2016 and included in “Receivables, prepaid expenses, and other assets” on our Consolidated Balance Sheet at October 31, 2016 . We have an initial investment in the joint venture of $27.8 million . We and an affiliate of our partner provided certain guarantees under the construction loan agreement. We estimate that the maximum exposure under these guarantees, if the full amount of the loan commitment was borrowed, would be $236.5 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner. Rental Property Joint Ventures As of October 31, 2016 , our Rental Property Joint Ventures owned 11 for-rent apartment projects, which are located in the metro Boston to metro Washington, D.C. corridor. At October 31, 2016 , our joint ventures had approximately 2,950 units that were occupied or ready for occupancy, 600 units in the lease-up stage, 900 units under active development, and 400 units in the planning stage. In addition, we either own, have under contract, or under a letter of intent approximately 4,750 units, which are in the planning stage. We intend to develop these units with joint venture partners in the future. In the second quarter of fiscal 2016 , we entered into a joint venture with an unrelated party to develop a 525 -unit luxury for-rent residential apartment building near Union Station in Washington, D.C. Prior to the formation of this joint venture, we acquired the land, through a 100%-owned entity, and incurred $35.1 million of land and land development costs. Our partner acquired a 50% interest in this entity for $20.2 million and we subsequently received cash of $18.7 million to align the capital accounts of each of the partners of the joint venture. As a result of the sale of 50% of our interests to our partner, we recognized a gain of $3.0 million , which is recorded in “Other income-net” on our Condensed Consolidated Statement of Operations and Comprehensive Income in fiscal 2016 . Due to our continued involvement in the joint venture through our ownership interest, we deferred $3.0 million of the gain realized on the sale. At October 31, 2016 , we had an investment of $24.5 million in this joint venture and expect to make additional investments of approximately $4.8 million for the development of this project. Subsequent to October 31, 2016 , the joint venture entered into a $130.6 million construction loan agreement. Each partner has an obligation to fund 50% of the payments made as a result of performing under these guarantees. We estimate that the maximum exposure under these guarantees, if the the full amount of the loan commitment was borrowed, would be $130.6 million without taking into account any recoveries from the underlying collateral or any reimbursement from our partner. In the fourth quarter of fiscal 2016 , we entered into a joint venture with an unrelated party to develop a 390 -unit luxury for-rent residential apartment building in a Boston, Massachusetts suburb, on land that we were under contract to purchase. We have a 25% interest in this joint venture. In the fourth quarter of fiscal 2016 , the joint venture entered into a $91.0 million construction loan agreement with a bank to finance the development of this project. At October 31, 2016 , there were no outstanding borrowings under the construction loan agreement. At October 31, 2016 , we had an investment of $7.9 million in this joint venture and expect to make additional investments of approximately $3.0 million for the development of this project. In 1998, we formed the Trust to invest in commercial real estate opportunities. The Trust is effectively owned one-third by us; one-third by current and former members of our senior management; and one-third by an unrelated party. As of October 31, 2016 , our investment in the Trust was zero as cumulative distributions received from the Trust have been in excess of the carrying amount of our net investment. We provide development, finance, and management services to the Trust and recognized fees under the terms of various agreements in the amounts of $1.6 million , $2.2 million , and $2.3 million in fiscal 2016 , 2015 and 2014 , respectively. In fiscal 2015 , we received distributions of $6.1 million from the Trust, of which $3.5 million was recognized as income and is included in “Income from unconsolidated entities” in our fiscal 2015 Consolidated Statement of Operations and Comprehensive Income. In fiscal 2014 , the Trust refinanced the mortgage on one of its properties and distributed $36.0 million of the net proceeds from the refinancing to its partners. We received $12.0 million as our share of the proceeds and recognized this distribution as income which is included in “Income from unconsolidated entities” in our fiscal 2014 Consolidated Statement of Operations and Comprehensive Income. Gibraltar Joint Ventures In the second quarter of fiscal 2016 , we, through our wholly owned subsidiary, Gibraltar Capital and Asset Management, LLC (“Gibraltar”), entered into two ventures with an institutional investor to provide builders and developers with land banking and venture capital. We have a 25% interest in these ventures. These ventures will finance builders’ and developers’ acquisition and development of land and home sites and pursue other complementary investment strategies. We may invest up to $100.0 million in these ventures. As of October 31, 2016 , we had an investment of $8.8 million in these ventures. In addition, in the second quarter of fiscal 2016 , we entered into a separate venture with the same institutional investor to purchase, from Gibraltar, certain foreclosed real estate owned and distressed loans for $24.1 million . We have a 24% interest in this venture. In fiscal 2016 , we recognized a gain of $1.3 million from the sale of these assets to the venture. At October 31, 2016 , we had a $5.7 million investment in this venture and are committed to invest an additional $10.0 million , if necessary. Guarantees The unconsolidated entities in which we have investments generally finance their activities with a combination of partner equity and debt financing. In some instances, we and our partners have guaranteed debt of certain unconsolidated entities. These guarantees may include any or all of the following: (i) project completion guarantees, including any cost overruns; (ii) repayment guarantees, generally covering a percentage of the outstanding loan; (iii) carry cost guarantees, which cover costs such as interest. real estate taxes, and insurance; (iv) an environmental indemnity provided to the lender that holds the lender harmless from and against losses arising from the discharge of hazardous materials from the property and non- compliance with applicable environmental laws; and (v) indemnification of the lender from “bad boy acts” of the unconsolidated entity. In some instances, the guarantees provided in connection with loans to an unconsolidated entity are joint and several. In these situations, we generally have a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed upon share of the guarantee; however, if the joint venture partner does not have adequate financial resources to meet its obligations under the reimbursement agreement, we may be liable for more than our proportionate share. We believe that, as of October 31, 2016 , in the event we become legally obligated to perform under a guarantee of an obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay a significant portion of the obligation. If it is not, we and our partners would need to contribute additional capital to the venture. At October 31, 2016 , the unconsolidated entities that have guarantees related to debt had loan commitments aggregating $875.7 million and had borrowed an aggregate of $576.0 million . The term of these guarantees generally ranges from one month to 48 months . We estimate that the maximum potential exposure under these guarantees, if the full amount of the loan commitments were borrowed, would be $875.7 million , without taking into account any recoveries from the underlying collateral or any reimbursement from our partners. Of this maximum potential exposure, $87.0 million is related to repayment and carry cost guarantees. Based on the amounts borrowed at October 31, 2016 , our maximum potential exposure under all guarantees is estimated to be approximately $576.0 million , without taking into account any recoveries from the underlying collateral or any reimbursement from our partners. Of the estimated $576.0 million , $61.5 million is related to repayment and carry cost guarantees. In addition, we have guaranteed approximately $4.3 million of ground lease payments and insurance deductibles for three joint ventures. As of October 31, 2016 , the estimated aggregate fair value of the guarantees provided by us related to debt and other obligations of certain unconsolidated entities was approximately $4.8 million . We have not made payments under any of the guarantees, nor have we been called upon to do so. Variable Interest Entities At October 31, 2016 and 2015 , we determined that three and one , respectively, of our joint ventures were VIEs under the guidance within ASC 810. However, we have concluded that we were not the primary beneficiary of the VIEs because the power to direct the activities of such VIEs that most significantly impact their performance was either shared by us and the VIEs’ other partners or such activities were controlled by our partner. For VIEs where the power to direct significant activities is shared, business plans, budgets, and other major decisions are required to be unanimously approved by all members. Management and other fees earned by us are nominal and believed to be at market rates, and there is no significant economic disproportionality between us and other members. The information presented below regarding the investments, commitments, and guarantees in unconsolidated entities deemed to be VIEs is also included in the information provided above. At October 31, 2016 and 2015 , our investments in our unconsolidated joint ventures deemed to be VIEs, which are included in “Investments in unconsolidated entities” in our Consolidated Balance Sheets, totaled $16.4 million and $6.7 million , respectively. At October 31, 2016 , the maximum exposure of loss to our investments in unconsolidated joint ventures that are VIEs was limited to our investments in the unconsolidated VIEs, except with regard to $70.0 million of loan guarantees and $1.4 million of additional commitments to the VIEs. At October 31, 2015 , the maximum exposure to loss of our investment in the unconsolidated joint venture that was a VIE was limited to our investment in the unconsolidated VIE, except with regard to $89.8 million of loan guarantees and $0.4 million of additional commitments to fund the VIE. Of our potential exposure for these loan guarantees at October 31, 2016 and 2015 , $14.3 million is related to repayment and carry cost guarantees. Joint Venture Condensed Financial Information The Condensed Balance Sheets, as of the dates indicated, and the Condensed Statements of Operations and Comprehensive Income, for the periods indicated, for the unconsolidated entities in which we have an investment, aggregated by type of business, are included below (in thousands). Condensed Balance Sheets: October 31, 2016 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Joint Ventures Total Cash and cash equivalents $ 38,466 $ 12,820 $ 29,103 $ 50,405 $ 130,794 Inventory 719,732 345,588 9,568 1,074,888 Non-performing loan portfolio 4,298 4,298 Rental properties 621,615 621,615 Rental properties under development 302,632 302,632 Real estate owned 87,226 87,226 Other assets 76,518 82,794 14,574 1,919 175,805 Total assets $ 834,716 $ 441,202 $ 967,924 $ 153,416 $ 2,397,258 Debt $ 394,813 $ 110,879 $ 659,191 $ 1,164,883 Other liabilities 38,769 75,419 35,303 3,390 152,881 Members’ equity 401,134 254,904 273,430 50,886 980,354 Noncontrolling interest 99,140 99,140 Total liabilities and equity $ 834,716 $ 441,202 $ 967,924 $ 153,416 $ 2,397,258 Company’s net investment in unconsolidated entities (2) $ 223,483 $ 98,754 $ 153,640 $ 20,534 $ 496,411 October 31, 2015 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Total Cash and cash equivalents $ 29,281 $ 11,203 $ 44,310 $ 10,469 $ 95,263 Inventory 701,527 322,630 1,024,157 Non-performing loan portfolio 27,572 27,572 Rental properties 278,897 278,897 Rental properties under development 390,399 390,399 Real estate owned 117,758 117,758 Other assets (1) 70,799 61,144 12,199 80,475 224,617 Total assets $ 801,607 $ 394,977 $ 725,805 $ 236,274 $ 2,158,663 Debt (1) $ 417,025 $ 117,251 $ 514,895 $ 77,950 $ 1,127,121 Other liabilities 29,772 70,078 30,329 136 130,315 Members’ equity 354,810 207,648 180,581 63,288 806,327 Noncontrolling interest 94,900 94,900 Total liabilities and equity $ 801,607 $ 394,977 $ 725,805 $ 236,274 $ 2,158,663 Company’s net investment in unconsolidated entities (2) $ 214,060 $ 76,120 $ 110,454 $ 12,226 $ 412,860 (1) Included in other assets of the Gibraltar Joint Ventures at October 31, 2015 was $78.0 million of restricted cash held in a defeasance account that was used to repay debt of one of the Gibraltar Joint Ventures in December 2015. (2) Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of the acquisition price of an investment in a Land Development Joint Venture in fiscal 2012 that was in excess of our pro rata share of the underlying equity; impairments related to our investment in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; and distributions from entities in excess of the carrying amount of our net investment. Condensed Statements of Operations and Comprehensive Income: For the year ended October 31, 2016 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Total Revenues $ 142,015 $ 168,164 $ 58,707 $ 5,929 $ 374,815 Cost of revenues 63,429 118,621 29,791 24,684 236,525 Other expenses 3,904 8,124 30,779 2,043 44,850 Total expenses 67,333 126,745 60,570 26,727 281,375 Gain on disposition of loans and REO 49,579 49,579 Income (loss) from operations 74,682 41,419 (1,863 ) 28,781 143,019 Other income (expense) 3,464 (486 ) 1,144 1,172 5,294 Net income (loss) 78,146 40,933 (719 ) 29,953 148,313 Less: income attributable to noncontrolling interest (18,218 ) (18,218 ) Net income (loss) attributable to controlling interest 78,146 40,933 (719 ) 11,735 130,095 Other comprehensive income 100 100 Total comprehensive income (loss) $ 78,146 $ 40,933 $ (619 ) $ 11,735 $ 130,195 Company’s equity in earnings of unconsolidated entities (3) $ 15,772 $ 16,945 $ 5,721 $ 2,310 $ 40,748 For the year ended October 31, 2015 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Total Revenues $ 128,889 $ 78,072 $ 35,732 $ 6,102 $ 248,795 Cost of revenues 58,435 69,142 15,539 16,739 159,855 Other expenses 1,999 6,135 24,174 1,312 33,620 Total expenses 60,434 75,277 39,713 18,051 193,475 Gain on disposition of loans and REO 42,939 42,939 Income (loss) from operations 68,455 2,795 (3,981 ) 30,990 98,259 Other income 615 1,072 4,376 2,224 8,287 Net income 69,070 3,867 395 33,214 106,546 Less: income attributable to noncontrolling interest (19,928 ) (19,928 ) Net income attributable to controlling interest 69,070 3,867 395 13,286 86,618 Other comprehensive income 52 52 Total comprehensive income $ 69,070 $ 3,867 $ 447 $ 13,286 $ 86,670 Company’s equity in earnings of unconsolidated entities (3) $ 12,005 $ 3,448 $ 3,027 $ 2,639 $ 21,119 For the year ended October 31, 2014 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Total Revenues $ 136,949 $ 54,923 $ 32,875 $ 8,023 $ 232,770 Cost of revenues 73,628 53,221 14,250 14,152 155,251 Other expenses 730 5,165 35,003 1,585 42,483 Total expenses 74,358 58,386 49,253 15,737 197,734 Gain on disposition of loans and REO 30,420 30,420 Income (loss) from operations 62,591 (3,463 ) (16,378 ) 22,706 65,456 Other income 66 105 45,933 3,121 49,225 Net income (loss) 62,657 (3,358 ) 29,555 25,827 114,681 Less: income attributable to noncontrolling interest (15,496 ) (15,496 ) Net income (loss) attributable to controlling interest 62,657 (3,358 ) 29,555 10,331 99,185 Other comprehensive income 728 728 Total comprehensive income (loss) $ 62,657 $ (3,358 ) $ 30,283 $ 10,331 $ 99,913 Company’s equity in earnings (losses) of unconsolidated entities (3) $ 1,190 $ (2,034 ) $ 40,081 $ 1,904 $ 41,141 (3) Differences between our equity in earnings (losses) of unconsolidated entities and the underlying net income (loss) of the entities is primarily a result a basis difference of an acquired joint venture interest; distributions from entities in excess of the carrying amount of our net investment; recoveries of previously incurred charges; a gain recognized for the sale of our ownership interest in one of our joint ventures; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired. |
Loans Payable, Senior Notes, an
Loans Payable, Senior Notes, and Mortgage Company Loan Facility | 12 Months Ended |
Oct. 31, 2016 | |
Debt Disclosure [Abstract] | |
Loans Payable, Senior Notes, and Mortgage Company Warehouse Loan | Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable At October 31, 2016 and 2015 , loans payable consisted of the following (amounts in thousands): 2016 2015 Senior unsecured term loan $ 500,000 $ 500,000 Credit facility borrowings 250,000 350,000 Loans payable – other 122,809 151,702 Deferred issuance costs (1,730 ) (1,263 ) $ 871,079 $ 1,000,439 Senior Unsecured Term Loan On February 3, 2014, we entered into a five -year, $485.0 million , unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. We borrowed the full amount of the Term Loan Facility on February 3, 2014. In October 2014, we increased the Term Loan Facility by $15.0 million and borrowed the full amount of the increase. On May 19, 2016, we entered into an amendment to the Term Loan Facility to, among other things, (1) amend the financial maintenance covenants therein to be substantially the same as the financial maintenance covenants applicable under the New Credit Facility described below and (2) revise certain provisions relating to the interest rate applicable on outstanding borrowings. In addition, in August 2016, we amended the Term Loan Facility to extend the maturity date from February 3, 2019 to August 2, 2021. Under the Term Loan Facility, as amended, we may select interest rates equal to (i) London Interbank Offered Rate (“LIBOR”) plus an applicable margin, (ii) the base rate (as defined in the agreement) plus an applicable margin, or (iii) the federal funds/Euro rate (as defined in the agreement) plus an applicable margin, in each case, based on our leverage ratio. At October 31, 2016 , the interest rate on the Term Loan Facility was 1.93% per annum. We and substantially all of our 100% -owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the Credit Facility, as described below. Credit Facility On August 1, 2013 , we entered into a $1.035 billion unsecured, five -year revolving credit facility (“Credit Facility”). The commitments under the Credit Facility were scheduled to expire on August 1, 2018 . On May 19, 2016, we entered into a new $1.215 billion (subsequently increased to $1.295 billion ) (the “Aggregate Credit Commitment”), unsecured, five -year revolving credit facility (the “New Credit Facility”) with a syndicate of banks and terminated the Credit Facility. The commitments under the New Credit Facility are scheduled to expire on May 19, 2021. Up to 50% of the Aggregate Credit Commitment is available for letters of credit. The New Credit Facility has an accordion feature under which we may, subject to certain conditions set forth in the agreement, increase the New Credit Facility up to a maximum aggregate amount of $2.0 billion . We may select interest rates for the New Credit Facility equal to (i) LIBOR plus an applicable margin or (ii) the lenders’ base rate plus an applicable margin, which in each case is based on our credit rating and leverage ratio. At October 31, 2016 , the interest rate on outstanding borrowings under the New Credit Facility was 2.03% per annum. We are obligated to pay an undrawn commitment fee that is based on the average daily unused amount of the Aggregate Credit Commitment and our credit ratings and leverage ratio. Any proceeds from borrowings under the New Credit Facility may be used for general corporate purposes. We and substantially all of our 100% -owned home building subsidiaries are guarantors under the New Credit Facility. Under the terms of the New Credit Facility, our maximum leverage ratio (as defined in the credit agreement) may not exceed 1.75 to 1.00 and we are required to maintain a minimum tangible net worth (as defined in the credit agreement) of no less than approximately $2.60 billion . Under the terms of the New Credit Facility, at October 31, 2016 , our leverage ratio was approximately 0.71 to 1.00 and our tangible net worth was approximately $4.18 billion . Based upon the minimum tangible net worth requirement, our ability to repurchase our common stock was limited to approximately $2.13 billion as of October 31, 2016 . At October 31, 2016 , we had $250.0 million of outstanding borrowings under the New Credit Facility and had outstanding letters of credit of approximately $83.2 million . Loans Payable – Other Our “Loans payable – other” primarily represent purchase money mortgages on properties we had acquired that the seller had financed and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. Information regarding our loans payable at October 31, 2016 and 2015 , is included in the table below ($ amounts in thousands): 2016 2015 Aggregate loans payable at October 31 $ 122,809 $ 151,702 Weighted-average interest rate 3.99 % 3.78 % Interest rate range 0.78% - 7.87% 0.15% - 7.87% Loans secured by assets Carrying value of loans secured by assets $ 122,570 $ 151,702 Carrying value of assets securing loans $ 461,162 $ 378,864 The contractual maturities of “Loans payable – other” as of October 31, 2016 , ranged from three months to 30 years . Senior Notes At October 31, 2016 and 2015 , senior notes consisted of the following (amounts in thousands): 2016 2015 8.91% Senior Notes due October 15, 2017 $ 400,000 $ 400,000 4.00% Senior Notes due December 31, 2018 350,000 350,000 6.75% Senior Notes due November 1, 2019 250,000 250,000 5.875% Senior Notes due February 15, 2022 419,876 419,876 4.375% Senior Notes due April 15, 2023 400,000 400,000 5.625% Senior Notes due January 15, 2024 250,000 250,000 4.875% Senior Notes due November 15, 2025 350,000 350,000 0.5% Exchangeable Senior Notes due September 15, 2032 287,500 287,500 Bond discount and deferred issuance costs (13,004 ) (17,575 ) $ 2,694,372 $ 2,689,801 The senior notes are the unsecured obligations of Toll Brothers Finance Corp., our 100% -owned subsidiary. The payment of principal and interest is fully and unconditionally guaranteed, jointly and severally, by us and substantially all of our 100% -owned home building subsidiaries (together with Toll Brothers Finance Corp., the “Senior Note Parties”). The senior notes rank equally in right of payment with all the Senior Note Parties’ existing and future unsecured senior indebtedness, including the New Credit Facility and the Term Loan Facility. The senior notes are structurally subordinated to the prior claims of creditors, including trade creditors, of our subsidiaries that are not guarantors of the senior notes. The senior notes, other than the 0.5% Exchangeable Senior Notes due 2032 (“ 0.5% Exchangeable Senior Notes”), are redeemable in whole or in part at any time at our option, at prices that vary based upon the then-current rates of interest and the remaining original term of the notes. The 0.5% Exchangeable Senior Notes are not redeemable by us prior to September 15, 2017 . The 0.5% Exchangeable Senior Notes are exchangeable into shares of our common stock at an exchange rate of 20.3749 shares per $1,000 principal amount of notes, corresponding to an initial exchange price of approximately $49.08 per share of common stock. If all of the 0.5% Exchangeable Senior Notes are exchanged, we would issue approximately 5.9 million shares of our common stock. Shares issuable upon conversion of the 0.5% Exchangeable Senior Notes are included in the calculation of diluted earnings per share. Holders of the 0.5% Exchangeable Senior Notes have the right to require Toll Brothers Finance Corp. to repurchase their notes for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on each of December 15, 2017; September 15, 2022; and September 15, 2027. Toll Brothers Finance Corp. will have the right to redeem the 0.5% Senior Notes on or after September 15, 2017, for cash equal to 100% of their principal amount, plus accrued but unpaid interest. In October 2015, we issued $350.0 million aggregate principal amount of 4.875% Senior Notes due 2025 (the “ 4.875% Senior Notes”) at par. We received $347.7 million of net proceeds from this issuance of 4.875% Senior Notes. In May 2015, we repaid, at maturity, the $300.0 million of then-outstanding principal amount of 5.15% Senior Notes due May 15, 2015. In March 2014, we repaid, at maturity, the $268.0 million of the then-outstanding principal amount of 4.95% Senior Notes due March 15, 2014. In November 2013, we issued $350.0 million aggregate principal amount of 4.0% Senior Notes due 2018 (the “ 4.0% Senior Notes”) and $250.0 million aggregate principal amount of 5.625% Senior Notes due 2024 (the “ 5.625% Senior Notes”). We received $596.2 million of net proceeds from the issuance of the 4.0% Senior Notes and the 5.625% Senior Notes. Mortgage Company Loan Facility In October 2016, TBI Mortgage ® Company (“TBI Mortgage”), our wholly owned mortgage subsidiary, entered into a Mortgage Warehousing Agreement (“Warehousing Agreement”) with a syndicate of banks. The purpose of the Warehousing Agreement is to finance the origination of mortgage loans by TBI Mortgage, and the Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” The Warehousing Agreement provides for loan purchases up to $150 million , subject to certain sublimits. In addition, the Warehousing Agreement provides for an accordion feature under which TBI Mortgage may request that the aggregate commitments under the Warehousing Agreement be increased to an amount up to $210 million for a short period of time. The Warehousing Agreement, expires on October 27, 2017 , and borrowings thereunder bear interest at LIBOR plus 2.00% per annum. At October 31, 2016 , the interest rate on the Warehousing Agreement was 2.53% per annum. In addition, we are subject to an under usage fee based on outstanding balances, as defined in the Warehousing Agreement. Borrowings under this facility are included in the fiscal 2017 maturities. Prior to entering into the Warehousing Agreement, TBI Mortgage had a Master Repurchase Agreement, as amended (the “Repurchase Agreement”) with a bank, which provided for loan purchases up to $85 million subject to certain sublimits. In addition, the Repurchase Agreement provided for an accordion feature under which TBI Mortgage could request that the aggregate commitments under the Repurchase Agreement be increased to an amount up to $125 million for a short period of time. The borrowings under the Repurchase Agreement bore interest at LIBOR plus 2.00% per annum, with a minimum rate of 2.00% . The Repurchase Agreement was terminated when we entered into the Warehousing Agreement. At October 31, 2016 and 2015 , there were $210.0 million and $100.0 million , respectively, outstanding under the Warehousing and Repurchase Agreements, respectively, which are included in liabilities in our Consolidated Balance Sheets. At October 31, 2016 and 2015 , amounts outstanding under the agreements were collateralized by $231.4 million and $115.9 million , respectively, of mortgage loans held for sale, which are included in assets in our Consolidated Balance Sheets. As of October 31, 2016 , there were no aggregate outstanding purchase price limitations reducing the amount available to TBI Mortgage. There are several restrictions on purchased loans under the agreements, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreements. General As of October 31, 2016 , the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands): Amount 2017 $ 637,329 2018 (a) $ 305,543 2019 $ 373,122 2020 $ 253,914 2021 $ 751,983 (a) Since the Holders of the 0.5% Exchangeable Senior Notes have the right to require Toll Brothers Finance Corp. to repurchase their notes on December 15, 2017, these notes are included as a fiscal 2018 maturity. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Oct. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses at October 31, 2016 and 2015 , consisted of the following (amounts in thousands): 2016 2015 Land, land development and construction $ 153,264 $ 118,634 Compensation and employee benefits 138,282 125,045 Escrow liability (1) 137,396 24,023 Self-insurance 126,431 113,727 Warranty (2) 370,992 93,083 Deferred income (1) 43,488 43,059 Interest 34,903 26,926 Commitments to unconsolidated entities 5,637 5,534 Other (1) 61,907 58,035 $ 1,072,300 $ 608,066 (1) In prior periods, Escrow liability and Deferred income were included in Other in the above schedule. The October 31, 2015 column presented above has been reclassified to conform to the fiscal 2016 presentation. (2) The fiscal 2016 amount includes $159.0 million of warranty charges expected to be recovered from our insurance carriers and suppliers, which we recorded as a receivable at October 31, 2016 and is included in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheet. In response to an increasing number of water intrusion claims received in the second half of fiscal 2014 from owners of stucco homes in certain completed communities located in Pennsylvania and Delaware (which are in our Mid-Atlantic region), we undertook a review of homes built in these communities during fiscal 2003 through fiscal 2009 to determine whether additional repairs related to stucco homes would likely be needed in these communities. Our quarterly review process includes an analysis of many factors to determine whether a claim is likely to be received and the estimated costs to resolve any such claim, including: the closing dates of the stucco homes in each community; the number of claims received; our inspection of homes; an estimate of the number of homes we expect to repair; the type and cost of repairs that have been performed in each community; the estimated costs to remediate pending and future claims in each community; the expected recovery from our insurance carriers; and the amount of warranty and self-insurance reserves already recorded. At the end of fiscal 2014, we estimated our liability for known and unknown warranty claims for stucco homes in the affected communities to be approximately $54.0 million , of which we expected to recover approximately $21.5 million from our outside insurance carriers. We recognized a $25.0 million net charge, after reduction for expected insurance recoveries, in the fourth quarter of fiscal 2014 for estimated repair costs for these homes. During our fiscal fourth-quarter 2015 review of the estimated liability for warranty claims for stucco homes, we determined that the average cost of repairs had increased based on the actual costs we incurred to complete repairs of homes in the second half of fiscal 2015. We also determined that additional repairs would likely be needed in certain communities built during fiscal 2010 through fiscal 2013 in Pennsylvania. Based on the revision of our estimated costs of repairs and the inclusion of certain additional communities in our estimates, the estimated liability for known and unknown warranty claims for stucco homes increased to approximately $80.3 million as of October 31, 2015, of which we expected to recover approximately $32.6 million from outside insurance carriers. We recognized a $14.7 million additional net charge, after reduction for expected insurance recoveries, in the fourth quarter of fiscal 2015 for estimated repair costs for these homes. Based upon the reviews conducted in the second and third quarters of fiscal 2016, we determined that the actual costs incurred per claim had increased. We recognized additional net charges of $2.5 million and $1.9 million in the second and third quarters of fiscal 2016, respectively, for repairs to stucco homes. In the third quarter of fiscal 2016, our estimated liability also included estimated costs for a small number of water intrusion claims for non-stucco homes in these same completed communities. In the fourth quarter of fiscal 2016, we increased our estimate of the aggregate number of homes we expect to repair for stucco-related issues as well as the expected repair costs per home. These increases were largely attributable to the repairs taking place in the affected communities and our experience in responding to and adjusting claims received as we completed an increasing number of fully resolved repairs. The fourth-quarter 2016 increase in the estimated number of homes we expect to repair was further affected by an increase in the rate of claims received. In response to our remediation experience, we modified our repair protocol in the fourth quarter of fiscal 2016. The increase in the projected cost per claim in the fourth quarter is attributable to the modified repair protocol, as well as construction cost increases affecting the industry generally. In addition, based upon an increase in the number of water intrusion claims received on non-stucco homes and further investigation of these claims, we determined that an accrual was needed for projected warranty claims from these non-stucco homes in these same completed communities. We did not see a change in the geographic concentration of claims, and we believe these claims are attributable to local construction practices employed by independent contractors in this region. Our estimated liability for known and unknown water intrusion claims increased in the fourth quarter of fiscal 2016 to approximately $324.4 million as of October 31, 2016, of which we expect to recover approximately $152.6 million from outside insurance carriers and suppliers. Of the $324.4 million total estimated liability, approximately $115.5 million relates to water intrusion at non-stucco homes. We recognized a $121.2 million and $125.6 million additional net charge, after reduction for expected insurance and supplier recoveries, for estimated repair costs in the fourth quarter and full fiscal year of 2016, respectively. The charges discussed above are included in “Cost of revenues” in our Consolidated Statements of Operations and Comprehensive Income. Resolution of these known and unknown claims is expected to take several years. Our estimates are predicated on several assumptions for which there is significant uncertainty including, but not limited to, the number of homes to be repaired, the extent of repairs needed, the cost of those repairs, and expected recoveries from insurance carriers and suppliers. At October 31, 2016, the number of known claims represented approximately a third of the total number of claims included in our estimates. Due to the degree of judgment required and the potential for variability in the underlying assumptions, it is reasonably possible that our actual costs could differ from those estimated, such differences could be material, and therefore, we are unable to estimate the range of any such differences. As of October 31, 2014, we had received construction claims from three related multifamily community associations in California alleging issues with design and construction and damage to exterior common area elements. We believe we have coverage under multiple owner controlled insurance policies with deductibles or self-insured retention requirements that vary from policy year to policy year. We completed a settlement of one of the claims during fiscal 2015 and one of these claims in fiscal 2016. Our review of the remaining claim is ongoing. Due to issues related to insurance coverage on all three claims, the degree of judgment required, and the potential for variability in our underlying assumptions, our actual future costs could differ from our estimates. Based on the above settlements and our evaluation of the remaining claim, we recorded a charge of $6.9 million in fiscal 2015. We do not believe that the resolution of any of these matters, in excess of the amounts currently accrued would be material to our results of operations, liquidity, or on our financial condition. We accrue for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Warranty costs are accrued based upon historical experience. The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2016 , 2015 , and 2014 as follows (amounts in thousands): 2016 2015 2014 Balance, beginning of year $ 93,083 $ 86,282 $ 43,819 Additions - homes closed during the year 28,927 20,934 18,588 Addition - liabilities acquired 11,044 Increase in accruals for homes closed in prior years * 26,689 2,661 2,913 Reclassification from self-insurance accruals 7,554 Increase to water intrusion reserves (see above) ** 267,258 14,685 24,950 Charges incurred (44,965 ) (31,479 ) (22,586 ) Balance, end of year $ 370,992 $ 93,083 $ 86,282 |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2016 , 2015 , and 2014 ($ amounts in thousands): 2016 2015 2014 $ %* $ %* $ %* Federal tax provision at statutory rate 206,159 35.0 187,447 35.0 176,604 35.0 State tax provision, net of federal benefit 26,970 4.6 21,947 4.1 23,778 4.7 Domestic production activities deduction (16,874 ) (2.9 ) (12,284 ) (2.3 ) (14,796 ) (2.9 ) Other permanent differences (7,037 ) (1.2 ) (7,821 ) (1.5 ) (6,214 ) (1.2 ) Reversal of accrual for uncertain tax positions (11,177 ) (1.9 ) (15,331 ) (2.9 ) (11,022 ) (2.2 ) Accrued interest on anticipated tax assessments 1,964 0.3 2,588 0.5 1,847 0.4 Increase in unrecognized tax benefits 2,052 0.3 3,214 0.6 5,694 1.1 Valuation allowance — recognized 1,018 0.2 3,681 0.7 1,328 0.3 Valuation allowance — reversed — — (16,323 ) (3.0 ) (13,256 ) (2.6 ) Other 3,857 0.7 5,277 1.0 587 0.1 Income tax provision* 206,932 35.1 172,395 32.2 164,550 32.6 * Due to rounding, amounts may not add. We currently operate in 19 states and are subject to various state tax jurisdictions. We estimate our state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies. Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimated our rate for state income taxes will be 7.0% in fiscal 2016 . Our state income tax rate was 6.3% and 7.2% in fiscal 2015 and 2014 , respectively. The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Federal $ 189,170 $ 181,819 $ 163,089 State 17,762 (9,424 ) 1,461 $ 206,932 $ 172,395 $ 164,550 Current $ 186,662 $ 122,953 $ 129,047 Deferred 20,270 49,442 35,503 $ 206,932 $ 172,395 $ 164,550 The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Balance, beginning of year $ 51,889 $ 58,318 $ 78,105 Increase in benefit as a result of tax positions taken in prior years 8,110 16,802 10,314 Increase in benefit as a result of tax positions taken in current year 694 9,005 442 Decrease in benefit as a result of settlements (28,976 ) (31,013 ) Decrease in benefit as a result of completion of audits (1,222 ) Decrease in benefit as a result of lapse of statute of limitations (1,445 ) (1,223 ) (29,321 ) Balance, end of year $ 30,272 $ 51,889 $ 58,318 The statute of limitations has expired on our federal tax returns for fiscal years through 2010. Our unrecognized tax benefits are included in “Income taxes payable” on our Consolidated Balance Sheets. If these unrecognized tax benefits reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits will change, but we are not able to provide a range of such change. The anticipated changes will be principally due to the expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken, and the accrual of estimated interest and penalties. The amounts accrued for interest and penalties are included in “Income taxes payable” on our Consolidated Balance Sheets. The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the 12-month periods ended October 31, 2016 , 2015 , and 2014 , and the amounts accrued for potential interest and penalties at October 31, 2016 and 2015 (amounts in thousands): Expense recognized in the Consolidated Statements of Operations and Comprehensive Income Fiscal year 2016 $ 3,426 2015 $ 4,454 2014 $ 9,694 Accrued at: October 31, 2016 $ 9,282 October 31, 2015 $ 17,012 The components of net deferred tax assets and liabilities at October 31, 2016 and 2015 are set forth below (amounts in thousands): 2016 2015 Deferred tax assets: Accrued expenses $ 103,134 $ 72,426 Impairment charges 113,950 130,709 Inventory valuation differences 78,483 67,610 Stock-based compensation expense 49,004 54,768 Amounts related to unrecognized tax benefits 8,345 25,267 State tax, net operating loss carryforward 50,031 53,103 Other 6,329 7,410 Total assets 409,276 411,293 Deferred tax liabilities: Capitalized interest 85,873 107,970 Deferred income 52,406 17,661 Expenses taken for tax purposes not for book 47,045 37,868 Depreciation 5,440 3,819 Deferred marketing 18,945 14,384 Total liabilities 209,709 181,702 Net deferred tax assets before valuation allowances 199,567 229,591 Cumulative valuation allowance - state (32,154 ) (31,136 ) Net deferred tax assets $ 167,413 $ 198,455 Since the beginning of fiscal 2007, we recorded significant deferred tax assets as a result of the recognition of inventory impairments and impairments of investments in unconsolidated entities. In accordance with GAAP, we assess whether a valuation allowance should be established based on our determination of whether it is more-likely-than-not that some portion or all of the deferred tax assets would not be realized. At October 31, 2016 and 2015 , we determined that it was more-likely-than-not that our deferred assets would be realized for federal purposes. Accordingly, at October 31, 2016 and 2015 , we did not record any valuation allowances against our federal deferred tax assets. We file tax returns in the various states in which we do business. Each state has its own statutes regarding the use of tax loss carryforwards. Some of the states in which we do business do not allow for the carryforward of losses, while others allow for carryforwards for 5 years to 20 years . For state tax purposes, due to past and projected losses in certain jurisdictions where we do not have carryback potential and/or cannot sufficiently forecast future taxable income, we recognized net cumulative valuation allowances against our state deferred tax assets at October 31, 2016 and 2015 , as shown above. During fiscal 2015 and 2014 , due to improved actual and/or projected operating results, we reversed $16.3 million , and $13.3 million , respectively, of state deferred tax asset valuation allowance previously recognized. During fiscal 2016 , no state deferred tax asset valuation allowances were reversed. In addition, we establish valuation allowances for newly created deferred tax assets in certain jurisdictions where it is more-likely-than-not that the deferred tax asset would not be realized. During fiscal 2016 , 2015 , and 2014 , we recognized new valuation allowances of $1.0 million , $3.7 million , and $1.3 million , respectively. We will continue to review our deferred tax assets in accordance with ASC 740. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stock Issuance and Stock Repurchase Program | Stockholders’ Equity Our authorized capital stock consists of 400 million shares of common stock, $0.01 par value per share (“common stock”), and 15 million shares of preferred stock, $0.01 par value per share. At October 31, 2016 , we had 161.8 million shares of common stock issued and outstanding, 10.2 million shares of common stock reserved for outstanding stock options and restricted stock units, 6.8 million shares of common stock reserved for future stock option and award issuances, 5.9 million shares of common stock reserved for conversion of our 0.5% Senior Notes, and 0.5 million shares of common stock reserved for issuance under our employee stock purchase plan. As of October 31, 2016 , no shares of preferred stock have been issued. Stock Issuance In November 2013, in anticipation of the Shapell Acquisition, we issued 7.2 million shares of our common stock, par value $0.01 per share, at a price to the public of $32.00 per share. We received $220.4 million of net proceeds from the issuance. Stock Repurchase Program On December 16, 2014, our Board of Directors authorized the repurchase of 20 million shares of our common stock in open market transactions or otherwise for the purpose of obtaining shares for the Company’s equity award and other employee benefit plans and for any other additional purpose or purposes as may be determined from time to time by the Board of Directors. Effective May 23, 2016, our Board of Directors terminated the December 2014 share repurchase program and authorized, under a new repurchase program, the repurchase of 20 million shares of our common stock in open market transactions or otherwise for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans. The Board of Directors did not fix any expiration date for this repurchase program. The following table provides information about the share repurchase programs for the fiscal years ended October 31, 2016 , 2015 , and 2014 : 2016 2015 2014 Number of shares purchased (in thousands) 13,652 1,665 2,947 Average price per share $ 28.77 $ 34.17 $ 30.80 Remaining authorization at October 31 (in thousands) 15,838 18,535 5,321 Subsequent to October 31, 2016, we repurchased approximately 550,000 shares of our common stock at an average price of $27.28 per share. Stockholder Rights Plan and Transfer Restriction In June 2007 , we adopted a shareholder rights plan (“2007 Rights Plan”). The rights issued pursuant to the 2007 Rights Plan will become exercisable upon the earlier of (i) 10 days following a public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of our common stock, or (ii) 10 business days following the commencement of a tender offer or exchange offer that would result in a person or group beneficially owning 15% or more of the outstanding shares of common stock. No rights were exercisable at October 31, 2016. The 2007 Rights Plan will expire on July 11, 2017. On March 17, 2010 , our Board of Directors adopted a Certificate of Amendment to the Second Restated Certificate of Incorporation of the Company (the “Certificate of Amendment”). The Certificate of Amendment includes an amendment approved by our stockholders at the 2010 Annual Meeting of Stockholders that restricts certain transfers of our common stock. The Certificate of Amendment’s transfer restrictions generally restrict any direct or indirect transfer of our common stock if the effect would be to increase the direct or indirect ownership of any Person (as defined in the Certificate of Amendment) from less than 4.95% to 4.95% or more of our common stock or increase the ownership percentage of a Person owning or deemed to own 4.95% or more of our common stock. Any direct or indirect transfer attempted in violation of this restriction would be void as of the date of the prohibited transfer as to the purported transferee. |
Stock-Based Benefit Plans
Stock-Based Benefit Plans | 12 Months Ended |
Oct. 31, 2016 | |
Stock-Based Benefit Plans [Abstract] | |
Stock-Based Benefit Plans | Stock-Based Benefit Plans We grant stock options, restricted stock, and various types of restricted stock units to our employees and our nonemployee directors under our stock incentive plans. We have two active stock incentive plans, one for employees (including officers) and one for nonemployee directors. Our active stock incentive plans provide for the granting of incentive stock options (solely to employees) and nonqualified stock options with a term of up to 10 years at a price not less than the market price of the stock at the date of grant. Our active stock incentive plans also provide for the issuance of stock appreciation rights and restricted and unrestricted stock awards and stock units, which may be performance-based. At October 31, 2016 , 2015 , and 2014 , we had 6.8 million ; 7.5 million ; and 8.8 million shares, respectively, available for grant under our stock incentive plans. We have three additional stock incentive plans for employees, officers, and directors that are inactive except for outstanding stock option awards at October 31, 2016 . No additional options may be granted under these plans. Stock options granted under these plans were made with a term of up to 10 years at a price not less than the market price of the stock at the date of grant and generally vested over a four-year period for employees and a two-year period for nonemployee directors. The following table provides information regarding the amount of total stock-based compensation expense recognized by us for fiscal 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Total stock-based compensation expense recognized $ 26,679 $ 22,903 $ 21,656 Income tax benefit recognized $ 10,450 $ 8,767 $ 8,322 At October 31, 2016 , 2015 , and 2014 , the aggregate unamortized value of outstanding stock-based compensation awards was approximately $27.0 million , $25.2 million , and $24.0 million , respectively. Information about our more significant stock-based compensation programs is outlined below. Stock Options: Stock options granted to employees generally vest over a four-year period, although certain grants may vest over a longer or shorter period, and stock options granted to nonemployee directors generally vest over a two-year period. Shares issued upon the exercise of a stock option are either from shares held in treasury or newly issued shares. The fair value of each option award is estimated on the date of grant using a lattice-based option valuation model that uses assumptions noted in the following table. The lattice-based option valuation model incorporates ranges of assumptions for inputs, which are disclosed in the table below. Expected volatilities were based on implied volatilities from traded options on our stock, historical volatility of our stock, and other factors. The expected lives of options granted were derived from the historical exercise patterns and anticipated future patterns and represent the period of time that options granted are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behaviors. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following table summarizes the weighted-average assumptions and fair value used for stock option grants in each of the fiscal years ended October 31, 2016 , 2015 , and 2014 : 2016 2015 2014 Expected volatility 32.03% - 42.31% 32.69% - 42.58% 36.44% - 44.71% Weighted-average volatility 34.69% 36.36% 42.71% Risk-free interest rate 1.58% - 2.14% 1.53% - 2.11% 1.45% - 2.71% Expected life (years) 4.56 - 9.17 4.54 - 9.12 4.55 - 9.02 Dividends none none none Weighted-average fair value per share of options granted $11.24 $11.67 $14.26 The fair value of stock option grants is recognized evenly over the vesting period of the options or over the period between the grant date and the time the option becomes nonforfeitable by the employee, whichever is shorter. Information regarding the stock compensation expense, related to stock options, for fiscal 2016 , 2015 and 2014 was as follows (amounts in thousands): 2016 2015 2014 Stock compensation expense recognized - options $ 10,986 $ 9,610 $ 9,005 At October 31, 2016 , total compensation cost related to nonvested stock option awards not yet recognized was approximately $13.7 million , and the weighted-average period over which we expect to recognize such compensation costs and tax benefit is approximately 2.4 years . The following table summarizes stock option activity for our plans during each of the fiscal years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands, except per share amounts): 2016 2015 2014 Number of options Weighted- average exercise price Number of options Weighted- average exercise price Number of options Weighted- average exercise price Balance, beginning 8,025 $ 25.75 9,358 $ 25.94 9,924 $ 24.51 Granted 965 32.85 870 32.49 819 35.16 Exercised (255 ) 24.04 (1,441 ) 27.52 (1,313 ) 20.88 Canceled (221 ) 35.23 (762 ) 32.48 (72 ) 25.23 Balance, ending 8,514 $ 26.36 8,025 $ 25.75 9,358 $ 25.94 Options exercisable, at October 31, 6,407 $ 24.14 6,098 $ 23.67 7,482 $ 24.91 The weighted average remaining contractual life (in years) for options outstanding and exercisable at October 31, 2016 , was 4.4 and 3.1 , respectively. The intrinsic value of options outstanding and exercisable is the difference between the fair market value of our common stock on the applicable date (“Measurement Value”) and the exercise price of those options that had an exercise price that was less than the Measurement Value. The intrinsic value of options exercised is the difference between the fair market value of our common stock on the date of exercise and the exercise price. The following table provides information pertaining to the intrinsic value of options outstanding and exercisable at October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Intrinsic value of options outstanding $ 31,852 $ 82,058 $ 62,073 Intrinsic value of options exercisable $ 31,852 $ 75,034 $ 55,776 Information pertaining to the intrinsic value of options exercised and the fair market value of options that became vested or modified in each of the fiscal years ended October 31, 2016 , 2015 , and 2014 , is provided below (amounts in thousands): 2016 2015 2014 Intrinsic value of options exercised $ 2,337 $ 12,923 $ 18,361 Fair market value of options vested $ 9,690 $ 9,183 $ 8,447 Our stock option plans permit optionees to exercise stock options using a “net exercise” method at the discretion of the Executive Compensation Committee of the Board of Directors (“Executive Compensation Committee”). In a net exercise, we withhold from the total number of shares that otherwise would be issued to an optionee upon exercise of the stock option that number of shares having a fair market value at the time of exercise equal to the option exercise price and applicable minimum income tax withholdings and remit the remaining shares to the optionee. The following table provides information regarding the use of the net exercise method for fiscal 2016 , 2015 , and 2014 : 2016 2015 2014 Options exercised 5,000 30,000 96,162 Shares withheld 3,547 29,917 58,819 Shares issued 1,453 83 37,343 Average fair market value per share withheld $ 32.85 $ 32.64 $ 33.78 Aggregate fair market value of shares withheld (in thousands) $ 117 $ 976 $ 1,987 Performance-Based Restricted Stock Units: In fiscal 2016 , 2015 , and 2014 , the Executive Compensation Committee approved awards of performance-based restricted stock units (“Performance-Based RSUs”) relating to shares of our common stock to certain members of our senior management. The Performance-Based RSUs are based on the attainment of certain performance metrics by the Company in the year of grant. The number of shares underlying the Performance-Based RSUs that will be issued to the recipients may range from 90% to 110% of the base award depending on actual performance metrics as compared to the target performance metrics. The Performance-Based RSUs vest over a four-year period provided the recipients continue to be employed by us or serve on our Board of Directors (as applicable) as specified in the award document. The value of the Performance-Based RSUs was determined to be equal to the estimated number of shares of our common stock to be issued multiplied by the closing price of our common stock on the New York Stock Exchange (“NYSE”) on the date the Performance-Based RSU awards were approved by the Executive Compensation Committee (“Valuation Date”). We evaluate the performance goals quarterly and estimate the number of shares underlying the Performance-Based RSUs that are probable of being issued. The following table provides information regarding the issuance, valuation assumptions, and amortization of the Performance-Based RSUs issued in fiscal 2016 , 2015 , and 2014 : 2016 2015 2014 Number of shares underlying Performance-Based RSUs to be issued 182,853 300,042 288,814 Aggregate number of Performance-Based RSUs outstanding at October 31 1,074,222 1,261,545 961,503 Closing price of our common stock on Valuation Date $ 32.85 $ 32.49 $ 35.16 Aggregate fair value of Performance-Based RSUs issued (in thousands) $ 6,007 $ 9,748 $ 10,155 Performance-Based RSU expense recognized (in thousands) $ 8,301 $ 9,863 $ 9,310 Unamortized value of Performance-Based RSUs at October 31 (in thousands) $ 6,556 $ 8,850 $ 8,965 Performance-Based RSUs issued in December 2011 were paid in fiscal 2016. The recipients of these RSUs elected to use a portion of the shares underlying the RSUs to pay the required income withholding taxes on the payout. The gross value of the payout was $12.2 million ( 370,171 shares), the minimum income tax withholding was $5.4 million ( 164,090 shares) and the net value of the shares delivered was $6.8 million ( 206,081 shares). Total Shareholder Return Restricted Stock Units: In December 2015, the Executive Compensation Committee approved awards of total shareholder return restricted stock units (“TSRs”) relating to 171,705 shares of our common stock to certain members of our senior management (the “Initial Grant”). The TSRs granted are earned by comparing our total shareholder return during three distinct performance periods to the respective total shareholder returns of companies in a performance peer group as defined in the award document. The three distinct performance periods are as follows: Performance Period Initial Number of TSR RSUs issued Tranche 1 November 1, 2015 to October 31, 2016 61,796 Tranche 2 November 1, 2015 to October 31, 2017 57,230 Tranche 3 November 1, 2015 to October 31, 2018 52,679 The TSRs vest over a three -year period provided the recipients continue to be employed by us or serve on our Board of Directors (as applicable) as specified in the award document. Based upon our ranking in the performance peer group, the recipient of the TSRs may earn a total award ranging from 0% to 200% of the Initial Grant. In 2016, recipients of Tranche 1 TRSs earned 0% of the grants based upon our total shareholder return ranking in the performance peer group during the one-year period ended October 31, 2016. We estimated the fair value of the TSRs at the grant date using a Monte Carlo simulation. The assumptions used in the Monte Carlo simulation for risk-free rate of return, expected dividend yield, and expected volatility were 1.23% , 0% , and 28.66% , respectively. The length of each performance period was used as the expected term in the simulation for each respective tranche. The weighted average grant date fair value of TSRs granted during 2016 was $41.16 per unit. In fiscal 2016 , we recognized $3.3 million of expense related to TSRs. At October 31, 2016 , the unamortized value of the TSRs was $3.8 million . Stock Price-Based Restricted Stock Units: In December 2010, the Executive Compensation Committee approved awards to certain of our executives of stock price-based restricted stock unit (“Stock Price-Based RSUs”) awards relating to shares of our common stock. In fiscal 2012, we adopted a Performance-Based Restricted Stock Award program to replace the Stock Price-Based RSU program. The Stock Price-Based RSUs vested and the recipients were entitled to receive the underlying shares when the average closing price of our common stock on the NYSE, measured over any 20 consecutive trading days ending on or prior to five years from date of issuance of the Stock Price-Based RSUs, increased 30% or more over the closing price of our common stock on the NYSE on the date of issuance (“Target Price”), provided the recipients continued to be employed by us or serve on our Board of Directors (as applicable) as specified in the award document. In fiscal 2012, the Target Price of all Stock Price-Based RSUs issued was met. The Stock Price-Based RSUs issued in December 2010 were paid in fiscal 2014. The recipients of these RSUs elected to use a portion of the shares underlying the RSUs to pay the required income withholding taxes on the payout. The gross value of the payout was $ 10.5 million ( 306,000 shares), the minimum income tax withholding was $4.8 million ( 140,160 shares) and the net value of the shares delivered was $5.7 million ( 165,840 shares). In fiscal 2014 , we recognized $0.2 million of expense related to Stock Price-Based RSUs. No expenses related to Stock Price-Based RSUs were recognized in fiscal 2016 or fiscal 2015. At October 31, 2016 and 2015, no Stock Price-Based RSUs were outstanding. Nonperformance-Based Restricted Stock Units: In fiscal 2016 , 2015 , and 2014 , we issued nonperformance-based restricted stock units (“RSUs”) to various officers, employees, and nonemployee directors. These RSUs generally vest in annual installments over a two- to four-year period. The value of the RSUs was determined to be equal to the number of shares of our common stock to be issued pursuant to the RSUs multiplied by the closing price of our common stock on the NYSE on the date the RSUs were awarded. The following table provides information regarding these RSUs for fiscal 2016 , 2015 , and 2014 : 2016 2015 2014 Nonperformance-Based RSUs issued: Number of RSUs issued 139,684 124,568 99,336 Weighted average closing price of our common stock on date of issuance $ 32.85 $ 32.74 $ 35.16 Aggregate fair value of RSUs issued (in thousands) $ 4,589 $ 4,078 $ 3,493 Nonperformance-Based RSU expense recognized (in thousands): $ 3,958 $ 3,317 $ 3,012 2016 2015 2014 At October 31: Aggregate Nonperformance-Based RSUs outstanding 396,716 380,548 304,286 Cumulative unamortized value of Nonperformance-Based RSUs (in thousands) $ 2,956 $ 2,542 $ 2,043 Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a restricted stock unit recipient upon distribution that number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining shares to the restricted stock unit recipient. During fiscal 2016, we withheld 25,340 of the shares subject to restricted stock units to cover $827,800 of income tax withholdings and we issued the remaining 70,627 shares to the recipients. During fiscal 2015, we withheld 4,221 of the shares subject to restricted stock units to cover $146,500 of income tax withholdings and we issued the remaining 10,049 shares to the recipients. Employee Stock Purchase Plan Our employee stock purchase plan enables substantially all employees to purchase our common stock at 95% of the market price of the stock on specified offering dates without restriction or at 85% of the market price of the stock on specified offering dates subject to restrictions. The plan, which terminates in December 2017, provides that 1.2 million shares be reserved for purchase. At October 31, 2016 , 501,000 shares were available for issuance. The following table provides information regarding our employee stock purchase plan for fiscal 2016 , 2015 , and 2014 : 2016 2015 2014 Shares issued 36,778 26,674 24,275 Average price per share $ 25.97 $ 31.65 $ 30.59 Compensation expense recognized (in thousands) $ 129 $ 113 $ 98 |
Income Per Share Information
Income Per Share Information | 12 Months Ended |
Oct. 31, 2016 | |
Earnings Per Share [Abstract] | |
Income per Share Information | Income Per Share Information Information pertaining to the calculation of income per share for each of the fiscal years ended October 31, 2016 , 2015 , and 2014 , is as follows (amounts in thousands): 2016 2015 2014 Numerator: Net income as reported $ 382,095 $ 363,167 $ 340,032 Plus: Interest and costs attributable to 0.5% Exchangeable Senior Notes, net of income tax benefit 1,538 1,561 1,557 Numerator for diluted earnings per share $ 383,633 $ 364,728 $ 341,589 Denominator: Basic weighted-average shares 168,261 176,425 177,578 Common stock equivalents (a) 1,854 2,420 2,439 Shares attributable to 0.5% Exchangeable Senior Notes 5,858 5,858 5,858 Diluted weighted-average shares 175,973 184,703 185,875 Other information: Weighted-average number of antidilutive options and restricted stock units (b) 3,932 1,826 1,970 Shares issued under stock incentive and employee stock purchase plans 587 1,467 1,453 (a) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options using the treasury stock method and shares expected to be issued under Performance-Based Restricted Stock Units and Nonperformance-Based Restricted Stock Units. (b) Weighted-average number of antidilutive options and restricted stock units are based upon the average of the average quarterly closing prices of our common stock on the NYSE for the year. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Oct. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Financial Instruments A summary of assets and (liabilities) at October 31, 2016 and 2015 , related to our financial instruments, measured at fair value on a recurring basis, is set forth below (amounts in thousands): Fair value Financial Instrument Fair value hierarchy October 31, 2016 October 31, 2015 Marketable Securities Level 2 $ 10,001 Residential Mortgage Loans Held for Sale Level 2 $ 248,601 $ 123,175 Forward Loan Commitments – Residential Mortgage Loans Held for Sale Level 2 $ 1,390 $ 186 Interest Rate Lock Commitments (“IRLCs”) Level 2 $ (921 ) $ (297 ) Forward Loan Commitments – IRLCs Level 2 $ 921 $ 297 At October 31, 2016 and 2015 , the carrying value of cash and cash equivalents and restricted cash approximated fair value. Marketable Securities The fair value of our marketable securities approximated their amortized costs basis as of October 31, 2015 . The estimated fair value of marketable securities was based on quoted prices provided by brokers. Mortgage Loans Held for Sale At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans and commitments using the market approach to determine fair value. The evaluation is based on the current market pricing of mortgage loans with similar terms and values as of the reporting date and the application of such pricing to the mortgage loan portfolio. We recognize the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, we recognize the fair value of our forward loan commitments as a gain or loss. These gains and losses are included in “Other income – net” in our Consolidated Statements of Operations and Comprehensive Income. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan and is also included in “Other income – net.” The table below provides, for the periods indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale as of the date indicated (amounts in thousands): At October 31, Aggregate unpaid principal balance Fair value Excess 2016 $ 246,794 $ 248,601 $ 1,807 2015 $ 121,904 $ 123,175 $ 1,271 IRLCs represent individual borrower agreements that commit us to lend at a specified price for a specified period as long as there is no violation of any condition established in the commitment contract. These commitments have varying degrees of interest rate risk. We utilize best-efforts forward loan commitments (“Forward Commitments”) to hedge the interest rate risk of the IRLCs and residential mortgage loans held for sale. Forward Commitments represent contracts with third-party investors for the future delivery of loans whereby we agree to make delivery at a specified future date at a specified price. The IRLCs and Forward Commitments are considered derivative financial instruments under ASC 815, “Derivatives and Hedging,” which requires derivative financial instruments to be recorded at fair value. We estimate the fair value of such commitments based on the estimated fair value of the underlying mortgage loan and, in the case of IRLCs, the probability that the mortgage loan will fund within the terms of the IRLC. The fair values of IRLCs and forward loan commitments are included in either “Receivables, prepaid expenses and other assets” or “Accrued expenses” in our Consolidated Balance Sheets, as appropriate. To manage the risk of non-performance of investors regarding the Forward Commitments, we assess the creditworthiness of the investors on a periodic basis. Inventory We recognize inventory impairment charges based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. The fair value of the aforementioned inventory was determined using Level 3 criteria. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. See Note 1, “Significant Accounting Policies - Inventory,” for additional information regarding our methodology on determining fair value. As further discussed in Note 1, determining the fair value of a community’s inventory involves a number of variables, many of which are interrelated. If we used a different input for any of the various unobservable inputs used in our impairment analysis, the results of the analysis may have been different, absent any other changes. The table below summarizes, for the periods indicated, the ranges of certain quantitative unobservable inputs utilized in determining the fair value of impaired communities: Selling price per unit ($ in thousands) Sales pace per year (in units) Discount rate Three months ended October 31, 2016 — — — Three months ended July 31, 2016 — — — Three months ended April 30, 2016 369 - 394 18 - 23 16.3% Three months ended January 31, 2016 — — — Three months ended October 31, 2015 301 - 764 3 - 24 16.3% - 22.0% Three months ended July 31, 2015 788 - 1,298 4 - 8 15.5% - 16.2% Three months ended April 30, 2015 527 - 600 13 - 25 17.0% Three months ended January 31, 2015 289 - 680 1 - 7 13.5% - 16.0% The table below provides, for the periods indicated, the number of operating communities that we reviewed for potential impairment, the number of operating communities in which we recognized impairment charges, the amount of impairment charges recognized, and, as of the end of the period indicated, the fair value of those communities, net of impairment charges ($ amounts in thousands): Impaired operating communities Three months ended: Number of Number of communities Fair value of Impairment charges recognized Fiscal 2016: January 31 43 2 $ 1,713 $ 600 April 30 41 2 $ 10,103 6,100 July 31 51 2 $ 11,714 1,250 October 31 59 2 $ 1,126 415 $ 8,365 Fiscal 2015: January 31 58 4 $ 24,968 $ 900 April 30 52 1 $ 16,235 11,100 July 31 40 3 $ 13,527 6,000 October 31 44 3 $ 8,726 4,300 $ 22,300 Fiscal 2014: January 31 67 1 $ 7,131 $ 1,300 April 30 65 2 $ 6,211 1,600 July 31 63 1 $ 14,122 4,800 October 31 55 7 $ 38,473 9,855 $ 17,555 Investments in REO Gibraltar’s REO was recorded at estimated fair value at the time it was acquired through foreclosure or deed in lieu actions using Level 3 inputs. The valuation techniques used to estimate fair value are third-party appraisals, broker opinions of value, or internal valuation methodologies (which may include discounted cash flows, capitalization rate analysis, or comparable transactional analysis). Unobservable inputs used in estimating the fair value of REO assets are based upon the best information available under the circumstances and take into consideration the financial condition and operating results of the asset, local market conditions, the availability of capital, interest and inflation rates, and other factors deemed appropriate by management. Debt The table below provides, as of the dates indicated, the book value and estimated fair value of our debt at October 31, 2016 and 2015 (amounts in thousands): 2016 2015 Fair value hierarchy Book value Estimated fair value Book value Estimated fair value Loans payable (a) Level 2 $ 872,809 $ 870,384 $ 1,001,702 $ 1,001,366 Senior notes (b) Level 1 2,707,376 2,843,177 2,707,376 2,877,039 Mortgage company loan facility (c) Level 2 210,000 210,000 100,000 100,000 $ 3,790,185 $ 3,923,561 $ 3,809,078 $ 3,978,405 (a) The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date. (b) The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date. (c) We believe that the carrying value of our mortgage company loan borrowings approximates their fair value. |
Employee Retirement and Deferre
Employee Retirement and Deferred Compensation Plans | 12 Months Ended |
Oct. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | Employee Retirement and Deferred Compensation Plans Salary Deferral Savings Plans We maintain salary deferral savings plans covering substantially all employees. We recognized an expense, net of plan forfeitures, with respect to the plans of $10.3 million , $8.9 million , and $7.8 million for the fiscal years ended October 31, 2016 , 2015 , and 2014 , respectively. Deferred Compensation Plan We have an unfunded, nonqualified deferred compensation plan that permits eligible employees to defer a portion of their compensation. The deferred compensation, together with certain of our contributions, earns various rates of return depending upon when the compensation was deferred. A portion of the deferred compensation and interest earned may be forfeited by a participant if he or she elects to withdraw the compensation prior to the end of the deferral period. We accrued $24.6 million and $21.6 million at October 31, 2016 and 2015 , respectively, for our obligations under the plan. Defined Benefit Retirement Plans We have two unfunded defined benefit retirement plans. Retirement benefits generally vest when the participant reaches normal retirement age (age 62 ). Unrecognized prior service costs are being amortized over the period from the date participants enter the plans until their interests are fully vested. We used a 2.98% , 3.55% , and 3.55% discount rate in our calculation of the present value of our projected benefit obligations at October 31, 2016 , 2015 , and 2014 , respectively. The rates represent the approximate long-term investment rate at October 31 of the fiscal year for which the present value was calculated. Information related to the plans is based on actuarial information calculated as of October 31, 2016 , 2015 and 2014 . Information related to our retirement plans for each of the fiscal years ended October 31, 2016 , 2015 , and 2014 , is as follows (amounts in thousands): 2016 2015 2014 Plan costs: Service cost $ 562 $ 579 $ 470 Interest cost 1,276 1,232 1,277 Amortization of prior service cost 947 806 662 Amortization of unrecognized losses 42 81 8 $ 2,827 $ 2,698 $ 2,417 Projected benefit obligation: Beginning of year $ 35,815 $ 34,606 $ 32,136 Plan amendments adopted during year 757 768 511 Service cost 562 579 470 Interest cost 1,276 1,232 1,277 Benefit payments (1,129 ) (988 ) (971 ) Change in unrecognized loss 1,699 (382 ) 1,183 Projected benefit obligation, end of year $ 38,980 $ 35,815 $ 34,606 Unamortized prior service cost: Beginning of year $ 2,965 $ 3,003 $ 3,154 Plan amendments adopted during year 757 768 511 Amortization of prior service cost (947 ) (806 ) (662 ) Unamortized prior service cost, end of year $ 2,775 $ 2,965 $ 3,003 Accumulated unrecognized loss, October 31 $ 2,898 $ 1,240 $ 1,703 Accumulated benefit obligation, October 31 $ 38,980 $ 35,815 $ 34,606 Accrued benefit obligation, October 31 $ 38,980 $ 35,815 $ 34,606 The table below provides, based upon the estimated retirement dates of the participants in the retirement plans, the amounts of benefits we would be required to pay in each of the next five fiscal years and for the five fiscal years ended October 31, 2026 in the aggregate (in thousands): Year ending October 31, Amount 2017 $ 1,326 2018 $ 2,124 2019 $ 2,503 2020 $ 2,611 2021 $ 2,702 November 1, 2021 – October 31, 2026 $ 15,290 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Oct. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss and Total Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The tables below provide, for the fiscal years ended October 31, 2016 and 2015 , the components of accumulated other comprehensive loss (amounts in thousands): 2016 Employee retirement plans Derivative instruments Total Balance, beginning of period $ (2,478 ) $ (31 ) $ (2,509 ) Other comprehensive (loss) income before reclassifications (2,456 ) 50 (2,406 ) Gross amounts reclassified from accumulated other comprehensive income 989 989 Income tax benefit (expense) 609 (19 ) 590 Other comprehensive (loss) income, net of tax (858 ) 31 (827 ) Balance, end of period $ (3,336 ) $ — $ (3,336 ) 2015 Employee retirement plans Available-for-sale securities Derivative instruments Total Balance, beginning of period $ (2,789 ) $ (2 ) $ (47 ) $ (2,838 ) Other comprehensive (loss) income before reclassifications (387 ) 3 26 (358 ) Gross amounts reclassified from accumulated other comprehensive income 887 887 Income tax expense (189 ) (1 ) (10 ) (200 ) Other comprehensive income, net of tax 311 2 16 329 Balance, end of period $ (2,478 ) $ — $ (31 ) $ (2,509 ) Reclassifications for the amortization of the employee retirement plans are included in “Selling, general and administrative” expense in the Consolidated Statements of Operations and Comprehensive Income. Reclassifications for the realized gains on available-for-sale securities are included in “Other income – net” in the Consolidated Statements of Operations and Comprehensive Income. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made for probable losses. We believe that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition. Land Purchase Commitments Generally, our purchase agreements to acquire land parcels do not require us to purchase those land parcels, although we, in some cases, forfeit any deposit balance outstanding if and when we terminate a purchase agreement. If market conditions are weak, approvals needed to develop the land are uncertain, or other factors exist that make the purchase undesirable, we may choose not to acquire the land. Whether a purchase agreement is legally terminated or not, we review the amount recorded for the land parcel subject to the purchase agreement to determine whether the amount is recoverable. While we may not have formally terminated the purchase agreements for those land parcels that we do not expect to acquire, we write off any nonrefundable deposits and costs previously capitalized to such land parcels in the periods that we determine such costs are not recoverable. Information regarding our land purchase commitments at October 31, 2016 and 2015 , is provided in the table below (amounts in thousands): 2016 2015 Aggregate purchase commitments: Unrelated parties $ 1,544,185 $ 1,081,008 Unconsolidated entities that the Company has investments in 79,204 136,340 Total $ 1,623,389 $ 1,217,348 Deposits against aggregate purchase commitments $ 65,299 $ 79,072 Additional cash required to acquire land 1,558,090 1,138,276 Total $ 1,623,389 $ 1,217,348 Amount of additional cash required to acquire land included in accrued expenses $ 18,266 $ 4,809 At October 31, 2016 , we had agreed to acquire 240 home sites from two of our Land Development Joint Ventures for an aggregate purchase price of $79.2 million and an agreement for the acquisition of Coleman for $85.2 million , which are included in the table above. In addition, we expect to purchase approximately 3,600 additional home sites over a number of years from several joint ventures in which we have investments; the purchase prices of these home sites will be determined at a future date. At October 31, 2016 , we also had purchase commitments to acquire land for apartment developments of approximately $71.8 million , of which we had outstanding deposits in the amount of $3.7 million . We have additional land parcels under option that have been excluded from the aforementioned aggregate purchase amounts since we do not believe that we will complete the purchase of these land parcels and no additional funds will be required from us to terminate these contracts. Investments in Unconsolidated Entities At October 31, 2016 , we had investments in a number of unconsolidated entities, were committed to invest or advance additional funds, and had guaranteed a portion of the indebtedness and/or loan commitments of these entities. See Note 4, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities. Surety Bonds and Letters of Credit At October 31, 2016 , we had outstanding surety bonds amounting to $617.3 million , primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that $326.1 million of work remains on these improvements. We have an additional $140.9 million of surety bonds outstanding that guarantee other obligations. We do not believe it is probable that any outstanding bonds will be drawn upon. At October 31, 2016 , we had outstanding letters of credit of $83.2 million under our New Credit Facility. These letters of credit were issued to secure our various financial obligations, including insurance policy deductibles and other claims, land deposits, and security to complete improvements in communities in which we are operating. We do not believe that it is probable that any outstanding letters of credit will be drawn upon. Backlog At October 31, 2016 , we had agreements of sale outstanding to deliver 4,685 homes with an aggregate sales value of $3.98 billion . Mortgage Commitments Our mortgage subsidiary provides mortgage financing for a portion of our home closings. For those home buyers to whom our mortgage subsidiary provides mortgages, we determine whether the home buyer qualifies for the mortgage based upon information provided by the home buyer and other sources. For those home buyers who qualify, our mortgage subsidiary provides the home buyer with a mortgage commitment that specifies the terms and conditions of a proposed mortgage loan based upon then-current market conditions. Prior to the actual closing of the home and funding of the mortgage, the home buyer will lock in an interest rate based upon the terms of the commitment. At the time of rate lock, our mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”) that is willing to honor the terms and conditions, including interest rate, committed to the home buyer. We believe that these investors have adequate financial resources to honor their commitments to our mortgage subsidiary. Information regarding our mortgage commitments at October 31, 2016 and 2015 , is provided in the table below (amounts in thousands): 2016 2015 Aggregate mortgage loan commitments: IRLCs $ 255,647 $ 316,184 Non-IRLCs 1,094,861 941,243 Total $ 1,350,508 $ 1,257,427 Investor commitments to purchase: IRLCs $ 255,647 $ 316,184 Mortgage loans receivable 231,398 115,859 Total $ 487,045 $ 432,043 Lease Commitments We lease certain facilities and equipment under non-cancelable operating leases. Rental expenses incurred by us under these operating leases were (amounts in thousands): Year ending October 31, Amount 2016 $ 13,360 2015 $ 12,584 2014 $ 12,385 At October 31, 2016 , future minimum rent payments under our operating leases were (amounts in thousands): Year ending October 31, Amount 2017 $ 11,634 2018 9,182 2019 7,044 2020 2,337 2021 994 Thereafter 694 $ 31,885 |
Other Income - Net
Other Income - Net | 12 Months Ended |
Oct. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income - net [Text Block] | Other Income - Net The table below provides the components of other income - net for the years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Interest income $ 2,443 $ 1,939 $ 2,493 Income from ancillary businesses 17,473 23,530 10,653 Gibraltar 6,646 10,168 14,364 Management fee income from unconsolidated entities 10,270 11,299 7,306 Retained customer deposits 5,866 5,224 3,067 Income from land sales 13,327 13,150 25,489 Directly expensed interest (656 ) Other 2,193 2,263 3,476 Total other income – net $ 58,218 $ 67,573 $ 66,192 During the years ended October 31, 2016 and 2015 , our security monitoring business recognized gains of $1.6 million and $8.1 million , respectively, from a bulk sale of security monitoring accounts in the fiscal 2015, which is included in income from ancillary businesses above. For the year ended October 31, 2014, income from land sales includes $2.9 million of previously deferred gains on our initial sales of the properties to a Rental Property Joint Venture, which sold substantially all of its assets in December 2013. Income from ancillary businesses includes our mortgage, title, landscaping, security monitoring, and golf course and country club operations. The table below provides revenues and expenses for these ancillary businesses for the years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Revenue $ 123,512 $ 119,732 $ 100,284 Expense $ 106,039 $ 96,202 $ 89,631 The table below provides revenues and expenses recognized from land sales for the years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Revenue $ 85,268 $ 183,870 $ 242,931 Expense (70,488 ) (161,460 ) (217,442 ) Deferred gains on land sales to joint ventures (2,999 ) (9,260 ) Deferred gains recognized 1,546 $ 13,327 $ 13,150 $ 25,489 Land sale revenues for the year ended October 31, 2016 includes $38.1 million related to an in substance real estate sale transaction which resulted in a new Rental Property Joint Venture in which we have a 50% interest. Due to our continued involvement in the joint venture through our ownership interest, we deferred 50% of the gain realized on the sale. We will amortize the deferred gain into income using the straight line method over the life of the rental property. Land sale revenues for the year October 31, 2015, include $78.5 million related to property sold to a Home Building Joint Venture in which we have a 25% interest. Due to our continued involvement in the joint venture through our ownership interest and guarantees provided on the joint venture’s debt, we deferred the $9.3 million gain realized on the sale. We are recognizing the gain as units are sold to the ultimate home buyers. See Note 4, “Investments in Unconsolidated Entities,” for more information on these transactions. |
Information on Segments
Information on Segments | 12 Months Ended |
Oct. 31, 2016 | |
Segment Reporting [Abstract] | |
Information on Segments | Information on Segments The table below summarizes revenue and income (loss) before income taxes for our segments for each of the fiscal years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): Revenues Income (loss) before income taxes 2016 2015 2014 2016 2015 2014 Traditional Home Building: North $ 814,519 $ 702,175 $ 662,734 $ 77,017 $ 59,172 $ 56,983 Mid-Atlantic 895,736 845,328 817,306 (29,361 ) 69,093 78,971 South 849,548 892,303 836,498 128,613 152,991 113,584 West 903,691 665,282 517,925 127,265 106,365 78,802 California 1,448,546 750,036 795,802 335,173 139,133 157,561 Traditional Home Building 4,912,040 3,855,124 3,630,265 638,707 526,754 485,901 City Living 257,468 316,124 281,337 91,109 124,290 104,580 Corporate and other (140,789 ) (115,482 ) (85,899 ) $ 5,169,508 $ 4,171,248 $ 3,911,602 $ 589,027 $ 535,562 $ 504,582 “Corporate and other” is comprised principally of general corporate expenses such as the offices of our executive officers; 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 a number of our unconsolidated entities. Total assets for each of our segments at October 31, 2016 and 2015 , are shown in the table below (amounts in thousands): 2016 2015 Traditional Home Building: North $ 1,020,250 $ 1,061,777 Mid-Atlantic 1,166,023 1,225,988 South 1,203,554 1,196,650 West 1,130,625 949,566 California 2,479,885 2,243,309 Traditional Home Building 7,000,337 6,677,290 City Living 946,738 873,013 Corporate and other 1,789,714 1,656,212 $ 9,736,789 $ 9,206,515 “Corporate and other” is comprised principally of cash and cash equivalents, marketable securities, restricted cash and investments, deferred tax assets, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments, manufacturing facilities, and mortgage and title subsidiaries. Inventory for each of our segments, as of the dates indicated, is shown in the table below (amounts in thousands): Land controlled for future communities Land owned for future communities Operating communities Total Balances at October 31, 2016 Traditional Home Building: North $ 20,671 $ 79,299 $ 883,195 $ 983,165 Mid-Atlantic 30,967 109,551 982,482 1,123,000 South 6,024 96,900 927,400 1,030,324 West 7,724 191,995 906,334 1,106,053 California 5,337 989,689 1,293,509 2,288,535 Traditional Home Building 70,723 1,467,434 4,992,920 6,531,077 City Living 1,006 416,712 405,172 822,890 $ 71,729 $ 1,884,146 $ 5,398,092 $ 7,353,967 Balances at October 31, 2015 Traditional Home Building: North $ 12,858 $ 146,063 $ 865,553 $ 1,024,474 Mid-Atlantic 33,196 194,058 956,749 1,184,003 South 4,861 205,562 806,513 1,016,936 West 8,417 198,689 726,256 933,362 California 14,386 899,675 1,149,112 2,063,173 Traditional Home Building 73,718 1,644,047 4,504,183 6,221,948 City Living 1,496 389,400 384,672 775,568 $ 75,214 $ 2,033,447 $ 4,888,855 $ 6,997,516 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 years ended October 31, 2016 , 2015 , and 2014 , are shown in the table below (amounts in thousands): 2016 2015 2014 Traditional Home Building: North $ 7,579 $ 15,033 $ 9,148 Mid-Atlantic 2,076 19,488 9,069 South 3,316 720 2,285 West 746 420 169 California 7 Traditional Home Building 13,717 35,661 20,678 City Living 90 48 $ 13,807 $ 35,709 $ 20,678 The net carrying value of our investments in unconsolidated entities and our equity in earnings (losses) from such investments, for each of our segments, as of the dates indicated, are shown in the table below (amounts in thousands): Investments in unconsolidated entities Equity in earnings (losses) from unconsolidated entities At October 31, Year ended October 31, 2016 2015 2016 2015 2014 Traditional Home Building: Mid-Atlantic $ 12,639 $ 12,167 $ (8 ) South 93,182 97,041 $ 11,013 $ 11,074 2,621 West 2,921 447 (166 ) California 130,534 128,338 5,896 5,089 302 Traditional Home Building 236,355 237,546 19,830 16,610 2,749 City Living 85,882 52,634 13,184 (1,158 ) (3,593 ) Corporate and other 174,174 122,680 7,734 5,667 41,985 $ 496,411 $ 412,860 $ 40,748 $ 21,119 $ 41,141 “Corporate and other” is comprised of our investments in the Rental Property Joint Ventures and the Gibraltar Joint Ventures. |
Supplemental Disclosure to Stat
Supplemental Disclosure to Statements of Cash Flows | 12 Months Ended |
Oct. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental Disclosure to Consolidated Statements of Cash Flows The following are supplemental disclosures to the Consolidated Statements of Cash Flows for each of the fiscal years ended October 31, 2016 , 2015 and 2014 (amounts in thousands): 2016 2015 2014 Cash flow information: Interest paid, net of amount capitalized $ 12,131 $ 23,930 $ 10,131 Income tax payments $ 185,084 $ 205,412 $ 71,608 Income tax refunds $ 4,451 $ 16,965 $ 8 Noncash activity: Cost of inventory acquired through seller financing or municipal bonds, net $ 5,807 $ 67,890 $ 96,497 Financed portion of land sale $ 2,273 $ 6,586 Reduction in inventory for our share of earnings in land purchased from unconsolidated entities and allocation of basis difference $ 9,012 $ 9,188 $ 4,177 Reclassification of deferred income from inventory to accrued liabilities $ 2,111 Reclassification of inventory to property, construction, and office equipment $ 17,064 $ 9,482 Increase (decrease) in unrecognized losses in defined benefit plans $ 1,699 $ (382 ) $ 1,183 Defined benefit plan amendment $ 757 $ 768 $ 511 Deferred tax decrease related to stock-based compensation activity included in additional paid-in capital $ 11,363 $ 2,325 $ 312 Increase in accrued expenses related to stock-based compensation $ 6,240 $ 5,086 Income tax benefit (expense) recognized in total comprehensive income $ 590 $ (200 ) $ 202 Transfer of inventory to investment in unconsolidated entities $ 4,152 Transfer of investment in unconsolidated entities to inventory $ 132,256 $ 2,704 Transfer of other assets to investment in unconsolidated entities $ 24,967 $ 4,852 Unrealized gain on derivatives held by equity investees $ 26 $ 364 Increase in investments in unconsolidated entities for change in the fair value of debt guarantees $ 29 $ 1,843 $ 1,356 Miscellaneous increases to investments in unconsolidated entities $ 1,510 $ 144 $ 249 Business Acquisition: Fair value of assets purchased, excluding cash acquired $ 1,524,964 Liabilities assumed $ 35,848 Cash paid, net of cash acquired $ 1,489,116 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 12 Months Ended |
Oct. 31, 2016 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information [Text Block] | . Supplemental Guarantor Information Our 100% -owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following Senior Notes (amounts in thousands): Original amount issued and amount outstanding at October 31, 2016 8.91% Senior Notes due 2017 $ 400,000 4.0% Senior Notes due 2018 $ 350,000 6.75% Senior Notes due 2019 $ 250,000 5.875% Senior Notes due 2022 $ 419,876 4.375% Senior Notes due 2023 $ 400,000 5.625% Senior Notes due 2024 $ 250,000 4.875% Senior Notes due 2025 $ 350,000 0.5% Exchangeable Senior Notes due 2032 $ 287,500 The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest are guaranteed jointly and severally on a senior basis by us and substantially all of our 100% -owned home building subsidiaries (the “Guarantor Subsidiaries”). The guarantees are full and unconditional. Our non-home building subsidiaries and several of our home building subsidiaries (together, the “Nonguarantor Subsidiaries”) do not guarantee the debt. The Subsidiary Issuer generates no operating revenues and does not have any independent operations other than the financing of our other subsidiaries by lending the proceeds from the above-described debt issuances. The indentures under which the Senior Notes were issued provide that any of our subsidiaries that provide a guarantee of the New Credit Facility will guarantee the Senior Notes. The indentures further provide that any Guarantor Subsidiary may be released from its guarantee, so long as (1) no default or event of default exists or would result from release of such guarantee, (2) the Guarantor Subsidiary being released has consolidated net worth of less than 5% of our consolidated net worth as of the end of our most recent fiscal quarter, (3) the Guarantor Subsidiaries released from their guarantees in any fiscal year comprise in the aggregate less than 10% (or 15% if and to the extent necessary to permit the cure of a default) of our consolidated net worth as of the end of our most recent fiscal quarter, (4) such release would not have a material adverse effect on our and our subsidiaries home building business, and (5) the Guarantor Subsidiary is released from its guarantee under the New Credit Facility. If there are no guarantors under the New Credit Facility, all Guarantor Subsidiaries under the indentures will be released from their guarantees. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that such disclosures would not be material to investors. Supplemental consolidating financial information of Toll Brothers, Inc., the Subsidiary Issuer, the Guarantor Subsidiaries, the Nonguarantor Subsidiaries, and the eliminations to arrive at Toll Brothers, Inc. on a consolidated basis is presented below ($ amounts in thousands). Consolidating Balance Sheet at October 31, 2016 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents — — 583,440 50,275 — 633,715 Restricted cash and investments 11,708 19,583 31,291 Inventory 6,896,205 457,806 (44 ) 7,353,967 Property, construction, and office equipment, net 153,663 15,913 169,576 Receivables, prepaid expenses, and other assets 77 319,319 299,978 (36,616 ) 582,758 Mortgage loans held for sale 248,601 248,601 Customer deposits held in escrow 50,079 2,978 53,057 Investments in unconsolidated entities 101,999 394,412 496,411 Investments in and advances to consolidated entities 4,112,876 2,741,160 20,519 90,671 (6,965,226 ) — Deferred tax assets, net of valuation allowances 167,413 167,413 4,292,074 2,741,160 8,125,224 1,580,217 (7,001,886 ) 9,736,789 LIABILITIES AND EQUITY Liabilities Loans payable 871,079 871,079 Senior notes 2,683,823 10,549 2,694,372 Mortgage company loan facility 210,000 210,000 Customer deposits 292,794 16,305 309,099 Accounts payable 280,107 1,848 281,955 Accrued expenses 32,559 610,958 469,527 (40,744 ) 1,072,300 Advances from consolidated entities 1,737,682 747,026 (2,484,708 ) — Income taxes payable 62,782 62,782 Total liabilities 62,782 2,716,382 3,792,620 1,444,706 (2,514,903 ) 5,501,587 Equity Stockholders’ equity Common stock 1,779 48 3,006 (3,054 ) 1,779 Additional paid-in capital 728,464 49,400 6,734 (56,134 ) 728,464 Retained earnings 3,977,297 (24,622 ) 4,332,556 119,861 (4,427,795 ) 3,977,297 Treasury stock, at cost (474,912 ) (474,912 ) Accumulated other comprehensive loss (3,336 ) (3,336 ) Total stockholders’ equity 4,229,292 24,778 4,332,604 129,601 (4,486,983 ) 4,229,292 Noncontrolling interest 5,910 5,910 Total equity 4,229,292 24,778 4,332,604 135,511 (4,486,983 ) 4,235,202 4,292,074 2,741,160 8,125,224 1,580,217 (7,001,886 ) 9,736,789 Consolidating Balance Sheet at October 31, 2015 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents — — 783,599 135,394 — 918,993 Marketable securities 10,001 10,001 Restricted cash and investments 15,227 499 1,069 16,795 Inventory 6,530,698 466,818 6,997,516 Property, construction, and office equipment, net 121,178 15,577 136,755 Receivables, prepaid expenses, and other assets 52 149,268 230,410 (43,870 ) 335,860 Mortgage loans held for sale 123,175 123,175 Customer deposits held in escrow 51,767 4,338 56,105 Investments in unconsolidated entities 115,999 296,861 412,860 Investments in and advances to consolidated entities 4,067,722 2,726,428 4,740 (6,798,890 ) — Deferred tax assets, net of valuation allowances 198,455 198,455 4,281,456 2,726,428 7,757,748 1,283,643 (6,842,760 ) 9,206,515 LIABILITIES AND EQUITY Liabilities Loans payable 1,000,439 1,000,439 Senior notes 2,669,860 19,941 2,689,801 Mortgage company loan facility 100,000 100,000 Customer deposits 271,124 13,185 284,309 Accounts payable 236,436 517 236,953 Accrued expenses 25,699 361,089 266,411 (45,133 ) 608,066 Advances from consolidated entities 1,932,075 850,374 (2,782,449 ) — Income taxes payable 58,868 58,868 Total liabilities 58,868 2,695,559 3,801,163 1,230,487 (2,807,641 ) 4,978,436 Equity Stockholders’ equity Common stock 1,779 48 3,006 (3,054 ) 1,779 Additional paid-in capital 728,125 49,400 1,734 (51,134 ) 728,125 Retained earnings 3,595,202 (18,531 ) 3,956,568 42,894 (3,980,931 ) 3,595,202 Treasury stock, at cost (100,040 ) (100,040 ) Accumulated other comprehensive loss (2,478 ) (31 ) (2,509 ) Total stockholders’ equity 4,222,588 30,869 3,956,585 47,634 (4,035,119 ) 4,222,557 Noncontrolling interest 5,522 5,522 Total equity 4,222,588 30,869 3,956,585 53,156 (4,035,119 ) 4,228,079 4,281,456 2,726,428 7,757,748 1,283,643 (6,842,760 ) 9,206,515 Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2016 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues 4,984,356 317,018 (131,866 ) 5,169,508 Cost of revenues 4,000,112 163,970 (20,017 ) 4,144,065 Selling, general and administrative 75 3,809 558,686 73,488 (100,676 ) 535,382 75 3,809 4,558,798 237,458 (120,693 ) 4,679,447 Income (loss) from operations (75 ) (3,809 ) 425,558 79,560 (11,173 ) 490,061 Other: Income from unconsolidated entities 16,913 23,835 40,748 Other income - net 9,501 27,873 17,456 3,388 58,218 Intercompany interest income 145,828 (145,828 ) — Interest expense (151,410 ) (2,203 ) 153,613 — Income from consolidated subsidiaries 579,601 109,257 (688,858 ) — Income (loss) before income taxes 589,027 (9,391 ) 579,601 118,648 (688,858 ) 589,027 Income tax provision (benefit) 206,932 (3,299 ) 203,614 41,681 (241,996 ) 206,932 Net income (loss) 382,095 (6,092 ) 375,987 76,967 (446,862 ) 382,095 Other comprehensive (loss) income (858 ) 31 (827 ) Total comprehensive income (loss) 381,237 (6,092 ) 376,018 76,967 (446,862 ) 381,268 Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2015 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues 4,213,776 77,226 (119,754 ) 4,171,248 Cost of revenues 3,276,078 12,909 (19,717 ) 3,269,270 Selling, general and administrative 113 3,560 481,943 60,377 (90,885 ) 455,108 113 3,560 3,758,021 73,286 (110,602 ) 3,724,378 Income (loss) from operations (113 ) (3,560 ) 455,755 3,940 (9,152 ) 446,870 Other: Income from unconsolidated entities 14,034 7,085 21,119 Other income - net 9,429 34,098 21,724 2,322 67,573 Intercompany interest income 137,362 (137,362 ) — Interest expense (143,193 ) (999 ) 144,192 — Income from consolidated subsidiaries 526,246 22,359 (548,605 ) — Income (loss) before income taxes 535,562 (9,391 ) 526,246 31,750 (548,605 ) 535,562 Income tax provision (benefit) 172,395 (3,628 ) 203,296 12,265 (211,933 ) 172,395 Net income (loss) 363,167 (5,763 ) 322,950 19,485 (336,672 ) 363,167 Other comprehensive income (loss) 311 18 329 Total comprehensive income (loss) 363,478 (5,763 ) 322,968 19,485 (336,672 ) 363,496 Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2014 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues 3,950,509 79,097 (118,004 ) 3,911,602 Cost of revenues 3,098,048 9,406 (25,617 ) 3,081,837 Selling, general and administrative 132 3,670 457,808 55,721 (84,815 ) 432,516 132 3,670 3,555,856 65,127 (110,432 ) 3,514,353 Income (loss) from operations (132 ) (3,670 ) 394,653 13,970 (7,572 ) 397,249 Other: Income from unconsolidated entities 40,588 553 41,141 Other income - net 9,403 40,594 15,416 779 66,192 Intercompany interest income 148,177 (148,177 ) — Interest expense (153,898 ) (1,072 ) 154,970 — Income from consolidated subsidiaries 495,311 19,476 (514,787 ) — Income (loss) before income taxes 504,582 (9,391 ) 495,311 28,867 (514,787 ) 504,582 Income tax (benefit) provision 164,550 (3,609 ) 190,349 11,094 (197,834 ) 164,550 Net income (loss) 340,032 (5,782 ) 304,962 17,773 (316,953 ) 340,032 Other comprehensive (loss) income (677 ) 202 24 (451 ) Total comprehensive income (loss) 339,355 (5,782 ) 305,164 17,797 (316,953 ) 339,581 Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2016 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities 60,465 14,768 105,709 (12,330 ) (19,841 ) 148,771 Cash flow provided by (used in) investing activities: Purchase of property and equipment — net (27,835 ) (591 ) (28,426 ) Sale and redemption of marketable securities 10,000 10,000 Investment in unconsolidated entities (2,637 ) (67,018 ) (69,655 ) Return of investments in unconsolidated entities 32,857 14,949 47,806 Investment in distressed loans and foreclosed real estate (1,133 ) (1,133 ) Return of investments in distressed loans and foreclosed real estate 49,619 49,619 Dividends received intercompany 5,000 (5,000 ) — Investment paid intercompany (5,000 ) 5,000 — Intercompany advances 323,207 (14,733 ) (308,474 ) — Net cash provided by (used in) investing activities 323,207 (14,733 ) 2,385 5,826 (308,474 ) 8,211 Cash flow (used in) provided by financing activities: Debt issuance costs for senior notes (35 ) (35 ) Proceeds from loans payable 550,000 1,893,496 2,443,496 Debt issuance costs for loans payable (4,868 ) (4,868 ) Principal payments of loans payable (714,089 ) (1,783,496 ) (2,497,585 ) Proceeds from stock-based benefit plans 6,986 6,986 Excess tax benefits from stock-based compensation 2,114 2,114 Purchase of treasury stock (392,772 ) (392,772 ) Receipts related to noncontrolling interest 404 404 Dividends paid intercompany (5,000 ) 5,000 — Investment received intercompany 5,000 (5,000 ) — Intercompany advances (139,296 ) (189,019 ) 328,315 — Net cash (used in) provided by financing activities (383,672 ) (35 ) (308,253 ) (78,615 ) 328,315 (442,260 ) Net decrease in cash and cash equivalents — — (200,159 ) (85,119 ) — (285,278 ) Cash and cash equivalents, beginning of period — — 783,599 135,394 — 918,993 Cash and cash equivalents, end of period — — 583,440 50,275 — 633,715 Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2015 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities 45,366 2,156 100,487 (78,246 ) (9,581 ) 60,182 Cash flow (used in) provided by investing activities: Purchase of property and equipment — net (10,181 ) 734 (9,447 ) Sale and redemption of marketable securities 2,000 2,000 Investment in unconsolidated entities (4,552 ) (119,388 ) (123,940 ) Return of investments in unconsolidated entities 23,213 16,553 39,766 Investment in distressed loans and foreclosed real estate (2,624 ) (2,624 ) Return of investments in distressed loans and foreclosed real estate 37,625 37,625 Net increase in cash from purchase of joint venture interest 3,848 3,848 Intercompany advances (29,620 ) (48,981 ) 78,601 — Net cash (used in) provided by investing activities (29,620 ) (48,981 ) 14,328 (67,100 ) 78,601 (52,772 ) Cash flow provided by (used in) financing activities: Net proceeds from issuance of senior notes 350,000 350,000 Debt issuance costs for senior notes (3,175 ) (3,175 ) Proceeds from loans payable 400,000 1,554,432 1,954,432 Principal payments of loans payable (113,745 ) (1,545,713 ) (1,659,458 ) Redemption of senior notes (300,000 ) (300,000 ) Proceeds from stock-based benefit plans 39,514 39,514 Excess tax benefits from stock-based compensation 1,628 1,628 Purchase of treasury stock (56,888 ) (56,888 ) Payments related to noncontrolling interest (785 ) (785 ) Intercompany advances (73,185 ) 142,205 (69,020 ) — Net cash provided by (used in) financing activities (15,746 ) 46,825 213,070 150,139 (69,020 ) 325,268 Net increase in cash and cash equivalents — — 327,885 4,793 — 332,678 Cash and cash equivalents, beginning of period — — 455,714 130,601 — 586,315 Cash and cash equivalents, end of period — — 783,599 135,394 — 918,993 Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2014 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities 137,023 15,644 279,724 (102,540 ) (16,651 ) 313,200 Cash flow (used in) provided by investing activities: Purchase of property and equipment — net (13,161 ) (1,913 ) (15,074 ) Purchase of marketable securities — Sale and redemption of marketable securities 40,242 40,242 Investment in unconsolidated entities (16,683 ) (96,346 ) (113,029 ) Return of investments in unconsolidated entities 63,581 10,264 73,845 Investment in distressed loans and foreclosed real estate (2,089 ) (2,089 ) Return of investments in distressed loans and foreclosed real estate 53,130 53,130 Acquisition of a business (1,489,116 ) (1,489,116 ) Dividend received - intercompany 15,000 (15,000 ) — Intercompany advances (302,591 ) (342,945 ) 645,536 — Net cash used in investing activities (302,591 ) (342,945 ) (1,400,137 ) (36,954 ) 630,536 (1,452,091 ) Cash flow provided by (used in) financing activities: Proceeds from issuance of senior notes 600,000 600,000 Debt issuance costs for senior notes (4,739 ) (4,739 ) Proceeds from loans payable 1,156,300 1,073,071 2,229,371 Debt issuance costs for loans payable (3,063 ) (3,063 ) Principal payments of loans payable (704,320 ) (1,062,795 ) (1,767,115 ) Redemption of senior notes (267,960 ) (267,960 ) Net proceeds from issuance of common stock 220,365 220,365 Proceeds from stock-based benefit plans 28,364 28,364 Excess tax benefits from stock-based compensation 7,593 7,593 Purchase of treasury stock (90,754 ) (90,754 ) Receipts related to noncontrolling interest 172 172 Dividend paid - intercompany (15,000 ) 15,000 — Intercompany advances 457,108 171,777 (628,885 ) — Net cash provided by financing activities 165,568 327,301 906,025 167,225 (613,885 ) 952,234 Net (decrease) increase in cash and cash equivalents — — (214,388 ) 27,731 — (186,657 ) Cash and cash equivalents, beginning of period — — 670,102 102,870 — 772,972 Cash and cash equivalents, end of period — — 455,714 130,601 — 586,315 |
Summary Consolidated Quarterly
Summary Consolidated Quarterly Financial Data (Unaudited) | 12 Months Ended |
Oct. 31, 2016 | |
Summary Consolidated Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Information [Text Block] | Summary Consolidated Quarterly Financial Data (Unaudited) The table below provides summary income statement data for each quarter of fiscal 2016 and 2015 (amounts in thousands, except per share data): Three Months Ended October 31 July 31 April 30 January 31 Fiscal 2016: Revenue $ 1,855,451 $ 1,269,934 $ 1,115,557 $ 928,566 Gross profit (a) $ 285,684 $ 278,518 $ 244,986 $ 216,255 Income before income taxes $ 168,160 $ 163,653 $ 140,397 $ 116,817 Net income $ 114,378 $ 105,483 $ 89,054 $ 73,180 Income per share (b) Basic $ 0.70 $ 0.64 $ 0.53 $ 0.42 Diluted $ 0.67 $ 0.61 $ 0.51 $ 0.40 Weighted-average number of shares Basic 163,970 165,919 168,952 174,205 Diluted 171,683 173,405 176,414 182,391 Fiscal 2015: Revenue $ 1,437,202 $ 1,028,011 $ 852,583 $ 853,452 Gross profit (a) $ 320,870 $ 203,617 $ 174,071 $ 203,420 Income before income taxes $ 217,543 $ 107,464 $ 86,532 $ 124,023 Net income $ 147,163 $ 66,749 $ 67,930 $ 81,325 Income per share (b) Basic $ 0.83 $ 0.38 $ 0.38 $ 0.46 Diluted $ 0.80 $ 0.36 $ 0.37 $ 0.44 Weighted-average number of shares Basic 176,370 176,797 176,458 176,076 Diluted 184,736 185,133 184,838 184,107 (a) Gross profit in the fourth quarters of fiscal 2016 and 2015 include $121.2 million and $14.7 million , respectively, of warranty charges. See Note 6 – “Accrued Expenses” in Item 15(a)1 of this Form 10-K for additional information regarding these warranty charges. (b) Due to rounding, the sum of the quarterly earnings per share amounts may not equal the reported earnings per share for the year. |
Significant Accounting Polici26
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation Policy [Text Block] | Basis of Presentation The consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company,” “we,” “us,” or “our”), a Delaware corporation, and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in 50% or less owned partnerships and affiliates are accounted for using the equity method unless it is determined that we have effective control of the entity, in which case we would consolidate the entity. References herein to fiscal year refer to our fiscal years ended or ending October 31. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Liquid investments or investments with original maturities of three months or less are classified as cash equivalents. |
Marketable Securities, Policy [Policy Text Block] | Marketable Securities Marketable securities are classified as available-for-sale and, accordingly, are stated at fair value, which is based on quoted market prices. Changes in unrealized gains and losses are excluded from earnings and are reported as other comprehensive income, net of income tax effects, if any. The cost of marketable securities sold is based on the specific identification method. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash and Investments Restricted cash and investments primarily represents cash deposits collateralizing certain deductibles under insurance policies, outstanding letters of credit under our bank revolving credit facility, and cash deposited into a voluntary employee benefit association to fund certain employee benefits. |
Inventory [Policy Text Block] | Inventory Inventory is stated at cost unless an impairment exists, in which case it is written down to fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment” (“ASC 360”). In addition to direct land acquisition costs, land development costs, and home construction costs, costs also include interest, real estate taxes, and direct overhead related to development and construction, which are capitalized to inventory during the period beginning with the commencement of development and ending with the completion of construction. For those communities that have been temporarily closed, no additional capitalized interest is allocated to a community’s inventory until it reopens. While the community remains closed, carrying costs such as real estate taxes are expensed as incurred. We capitalize certain interest costs to qualified inventory during the development and construction period of our communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to cost of revenues when the related inventory is delivered. Interest incurred on home building indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged to the Consolidated Statements of Operations and Comprehensive Income in the period incurred. Once a parcel of land has been approved for development and we open one of our typical communities, it may take four or more years to fully develop, sell, and deliver all the homes in such community. Longer or shorter time periods are possible depending on the number of home sites in a community and the sales and delivery pace of the homes in a community. Our master planned communities, consisting of several smaller communities, may take up to 10 years or more to complete. Because our inventory is considered a long-lived asset under GAAP, we are required, under ASC 360, to regularly review the carrying value of each community and write down the value of those communities for which we believe the values are not recoverable. Operating Communities : When the profitability of an operating community deteriorates, the sales pace declines significantly, or some other factor indicates a possible impairment in the recoverability of the asset, the asset is reviewed for impairment by comparing the estimated future undiscounted cash flow for the community to its carrying value. If the estimated future undiscounted cash flow is less than the community’s carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. The impairment is charged to cost of revenues in the period in which the impairment is determined. In estimating the future undiscounted cash flow of a community, we use various estimates such as (i) the expected sales pace in a community, based upon general economic conditions that will have a short-term or long-term impact on the market in which the community is located and on competition within the market, including the number of home sites available and pricing and incentives being offered in other communities owned by us or by other builders; (ii) the expected sales prices and sales incentives to be offered in a community; (iii) costs expended to date and expected to be incurred in the future, including, but not limited to, land and land development, home construction, interest, and overhead costs; (iv) alternative product offerings that may be offered in a community that will have an impact on sales pace, sales price, building cost, or the number of homes that can be built on a particular site; and (v) alternative uses for the property such as the possibility of a sale of the entire community to another builder or the sale of individual home sites. Future Communities : We evaluate all land held for future communities or future sections of operating communities, whether owned or under contract, to determine whether or not we expect to proceed with the development of the land as originally contemplated. This evaluation encompasses the same types of estimates used for operating communities described above, as well as an evaluation of the regulatory environment applicable to the land and the estimated probability of obtaining the necessary approvals, the estimated time and cost it will take to obtain the approvals, and the possible concessions that will be required to be given in order to obtain them. Concessions may include cash payments to fund improvements to public places such as parks and streets, dedication of a portion of the property for use by the public or as open space, or a reduction in the density or size of the homes to be built. Based upon this review, we decide (i) as to land under contract to be purchased, whether the contract will likely be terminated or renegotiated, and (ii) as to land owned, whether the land will likely be developed as contemplated or in an alternative manner, or should be sold. We then further determine whether costs that have been capitalized to the community are recoverable or should be written off. The write-off is charged to cost of revenues in the period in which the need for the write-off is determined. |
Capitalization of Interest Costs Policy [Text Block] | We capitalize certain interest costs to qualified inventory during the development and construction period of our communities in accordance with ASC 835-20, “Capitalization of Interest” (“ASC 835-20”). Capitalized interest is charged to cost of revenues when the related inventory is delivered. Interest incurred on home building indebtedness in excess of qualified inventory, as defined in ASC 835-20, is charged to the Consolidated Statements of Operations and Comprehensive Income in the period incurred. |
Estimated fair values Policy [Text Block] | The estimates used in the determination of the estimated cash flows and fair value of both current and future communities are based on factors known to us at the time such estimates are made and our expectations of future operations and economic conditions. Should the estimates or expectations used in determining estimated fair value deteriorate in the future, we may be required to recognize additional impairment charges and write-offs related to current and future communities and such amounts could be material. |
Consolidation, Policy [Policy Text Block] | Variable Interest Entities We are required to consolidate variable interest entities (“VIEs”) in which we have a controlling financial interest in accordance with ASC 810, “Consolidation” (“ASC 810”). A controlling financial interest will have both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Our variable interest in VIEs may be in the form of equity ownership, contracts to purchase assets, management services, and development agreements between us and a VIE, loans provided by us to a VIE or other member, and/or guarantees provided by members to banks and other parties. We have a significant number of land purchase contracts and several investments in unconsolidated entities which we evaluate in accordance with ASC 810. We analyze our land purchase contracts and the unconsolidated entities in which we have an investment to determine whether the land sellers and unconsolidated entities are VIEs and, if so, whether we are the primary beneficiary. We examine specific criteria and use our judgment when determining if we are the primary beneficiary of a VIE. Factors considered in determining whether we are the primary beneficiary include risk and reward sharing, experience and financial condition of other member(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality between us and the other member(s), and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether we are the primary beneficiary may require significant judgment. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Construction, and Office Equipment Property, construction, and office equipment are recorded at cost and are stated net of accumulated depreciation of $114.5 million and $138.7 million at October 31, 2016 and 2015 , respectively. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. In fiscal 2016 , 2015 , and 2014 , we recognized $15.5 million , $15.7 million , and $13.4 million of depreciation expense, respectively. |
Receivables, prepaid expenses and other assets [Policy Text Block] | Receivables, Prepaid Expenses, and Other Assets Receivables, prepaid expenses, and other assets at October 31, 2016 and 2015 , consisted of the following (amounts in thousands): 2016 2015 Expected recoveries from insurance carriers and suppliers $ 165,696 $ 8,314 Improvement cost receivable 85,627 78,565 Escrow cash held by our captive title company 138,633 24,609 Property held for rental development 81,693 78,888 Investment in foreclosed real estate owned 11,552 50,233 Prepaid expenses 25,659 28,044 Other 73,898 67,207 $ 582,758 $ 335,860 |
Mortgage Loans Held for Sale [Policy Text Block] | Mortgage Loans Held for Sale Residential mortgage loans held for sale are measured at fair value in accordance with the provisions of ASC 825, “Financial Instruments” (“ASC 825”). We believe the use of ASC 825 improves consistency of mortgage loan valuations between the date the borrower locks in the interest rate on the pending mortgage loan and the date of the mortgage loan sale. At the end of the reporting period, we determine the fair value of our mortgage loans held for sale and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans using the market approach to determine fair value. The evaluation is based on the current market pricing of mortgage loans with similar terms and values as of the reporting date, and such pricing is applied to the mortgage loan portfolio. We recognize the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, we recognize the fair value of our forward loan commitments as a gain or loss. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan. In addition, the recognition of net origination costs and fees associated with residential mortgage loans originated are expensed as incurred. These gains and losses, interest income, and origination costs and fees are recognized in “Other income - net” in the Consolidated Statements of Operations and Comprehensive Income. |
Investments in Unconsolidated Entities [Policy Text Block] | Investments in Unconsolidated Entities In accordance with ASC 323, “Investments—Equity Method and Joint Ventures,” we review each of our investments on a quarterly basis for indicators of impairment. A series of operating losses of an investee, the inability to recover our invested capital, or other factors may indicate that a loss in value of our investment in the unconsolidated entity has occurred. If a loss exists, we further review the investment to determine if the loss is other than temporary, in which case we write down the investment to its fair value. The evaluation of our investment in unconsolidated entities entails a detailed cash flow analysis using many estimates, including, but not limited to, expected sales pace, expected sales prices, expected incentives, costs incurred and anticipated, sufficiency of financing and capital, competition, market conditions, and anticipated cash receipts, in order to determine projected future distributions. In addition, for rental properties, we review rental trends, expected future expenses, and expected cash flows to determine estimated fair values of the properties. Our unconsolidated entities that develop land or develop for-sale homes and condominiums evaluate their inventory in a similar manner as we do. See “Inventory” above for more detailed disclosure on our evaluation of inventory. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, our proportionate share is reflected in income from unconsolidated entities with a corresponding decrease to our investment in unconsolidated entities. We are a party to several joint ventures with unrelated parties to develop and sell land that is owned by the joint ventures. We recognize our proportionate share of the earnings from the sale of home sites to other builders, including our joint venture partners. We do not recognize earnings from the home sites we purchase from these ventures at the time of purchase; instead, our cost basis in those home sites is reduced by our share of the earnings realized by the joint venture from sales of those home sites to us. We are also a party to several other joint ventures. We recognize our proportionate share of the earnings and losses of our unconsolidated entities. |
Investment in Foreclosed Real Estate [Policy Text Block] | Investments in Foreclosed Real Estate Foreclosed real estate owned (“REO”) assets, either directly owned or owned through a participation arrangement, acquired through subsequent foreclosure or deed in lieu actions on non-performing loans, are initially recorded at fair value based upon third-party appraisals, broker opinions of value, or internal valuation methodologies (which may include discounted cash flows, capitalization rate analysis, or comparable transactional analysis). Unobservable inputs used in estimating the fair value of REO assets are based upon the best information available under the circumstances and take into consideration the financial condition and operating results of the asset, local market conditions, the availability of capital, interest and inflation rates, and other factors deemed appropriate by management. REO assets acquired are reviewed to determine if they should be classified as “held and used” or “held for sale.” REO classified as “held and used” is stated at carrying cost unless an impairment exists, in which case it is written down to fair value in accordance with ASC 360. REO classified as “held for sale” is carried at the lower of carrying amount or fair value less cost to sell. An impairment charge is recognized for any decreases in estimated fair value subsequent to the acquisition date. For both classifications, carrying costs incurred after the acquisition, including property taxes and insurance, are expensed. As of October 31, 2016 and 2015 , our investment in REO was $11.6 million and $50.2 million , respectively, which is included in “Receivables, prepaid expenses, and other assets” in our Consolidated Balance Sheets. In prior periods, we presented our investments in REO in a separate line item in our Consolidated Balance Sheets. Our Consolidated Balance Sheet at October 31, 2015 has been reclassified to conform to the fiscal 2016 presentation. As of October 31, 2016 , approximately $1.5 million and $10.1 million of REO were classified as held-for-sale and held-and-used, respectively. As of October 31, 2015 , approximately $1.7 million and $48.5 million of REO were classified as held-for-sale and held-and-used, respectively. For the years ended October 31, 2016 , 2015 , and 2014 , we recorded impairments on REO of $1.2 million , $0.8 million , and $1.4 million , respectively. |
Fair Value Disclosures [Policy Text Block] | Fair Value Disclosures We use ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), to measure the fair value of certain assets and liabilities. ASC 820 provides a framework for measuring fair value in accordance with GAAP, establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and requires certain disclosures about fair value measurements. The fair value hierarchy is summarized below: Level 1: Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2: Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active. Level 3: Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. |
Treasury Stock Policy [Text Block] | Treasury Stock Treasury stock is recorded at cost. Issuance of treasury stock is accounted for on a first-in, first-out basis. Differences between the cost of treasury stock and the re-issuance proceeds are charged to additional paid-in capital. |
Revenue Recognition, Policy [Policy Text Block] | Revenue and Cost Recognition Revenues and cost of revenues from home sales are recorded at the time each home is delivered and title and possession are transferred to the buyer. For our standard attached and detached homes, land, land development, and related costs, both incurred and estimated to be incurred in the future, are amortized to the cost of homes closed based upon the total number of homes to be constructed in each community. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs subsequent to the commencement of delivery of homes are allocated to the remaining undelivered homes in the community. Home construction and related costs are charged to the cost of homes closed under the specific identification method. The estimated land, common area development, and related costs of master planned communities, including the cost of golf courses, net of their estimated residual value, are allocated to individual communities within a master planned community on a relative sales value basis. Any changes resulting from a change in the estimated number of homes to be constructed or in the estimated costs are allocated to the remaining home sites in each of the communities of the master planned community. For high-rise/mid-rise projects, land, land development, construction, and related costs, both incurred and estimated to be incurred in the future, are generally amortized to the cost of units closed based upon an estimated relative sales value of the units closed to the total estimated sales value. Any changes resulting from a change in the estimated total costs or revenues of the project are allocated to the remaining units to be delivered. Forfeited Customer Deposits: Forfeited customer deposits are recognized in “Other income – net” in our Consolidated Statements of Operations and Comprehensive Income in the period in which we determine that the customer will not complete the purchase of the home and we have the right to retain the deposit. Sales Incentives: In order to promote sales of our homes, we grant our home buyers sales incentives from time to time. These incentives will vary by type of incentive and by amount on a community-by-community and home-by-home basis. Incentives that impact the value of the home or the sales price paid, such as special or additional options, are generally reflected as a reduction in sales revenues. Incentives that we pay to an outside party, such as paying some or all of a home buyer’s closing costs, are recorded as an additional cost of revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs We expense advertising costs as incurred. Advertising costs were $23.1 million , $18.2 million , and $15.6 million for the years ended October 31, 2016 , 2015 , and 2014 , respectively. |
Warranty Costs Policy [Text Block] | Warranty and Self-Insurance Warranty: We provide all of our home buyers with a limited warranty as to workmanship and mechanical equipment. We also provide many of our home buyers with a limited 10 -year warranty as to structural integrity. We accrue for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Warranty costs are accrued based upon historical experience. Adjustments to our warranty liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. Over the past several years, we have had a significant number of warranty claims related primarily to older homes built in Pennsylvania and Delaware. |
Self-insurance [Text Block] | Self-Insurance: We maintain, and require the majority of our subcontractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our home building activities, subject to certain self-insured retentions, deductibles and other coverage limits (“self-insured liability”). We also provide general liability insurance for our subcontractors in Arizona, California, Nevada, Washington, and certain areas of Texas, where eligible subcontractors are enrolled as insureds under our general liability insurance policies in each community in which they perform work. For those enrolled subcontractors, we absorb their general liability associated with the work performed on our homes within the applicable community as part of our overall general liability insurance and our self-insurance through our captive insurance subsidiary. We record expenses and liabilities based on the estimated costs required to cover our self-insured liability and the estimated costs of potential claims and claim adjustment expenses that are above our coverage limits or that are not covered by our insurance policies. These estimated costs are based on an analysis of our historical claims and industry data, and include an estimate of claims incurred but not yet reported (“IBNR”). We engage a third-party actuary that uses our historical claim and expense data, input from our internal legal and risk management groups, as well as industry data, to estimate our liabilities related to unpaid claims, IBNR associated with the risks that we are assuming for our self-insured liability, and other required costs to administer current and expected claims. These estimates are subject to uncertainty due to a variety of factors, the most significant being the long period of time between the delivery of a home to a home buyer and when a structural warranty or construction defect claim may be made, and the ultimate resolution of the claim. Though state regulations vary, construction defect claims may be reported and resolved over a prolonged period of time, which can extend for 10 years or longer. As a result, the majority of the estimated liability relates to IBNR. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and the types of product we build, insurance industry practices, and legal or regulatory actions and/or interpretations, among other factors. Key assumptions used in these estimates include claim frequencies, severities, and settlement patterns, which can occur over an extended period of time. In addition, changes in the frequency and severity of reported claims and the estimates to settle claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Due to the degree of judgment required, and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated, and the difference could be material to our consolidated financial statements. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation We account for our stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”). We use a lattice model for the valuation for our stock option grants. The option pricing models used are designed to estimate the value of options that, unlike employee stock options and restricted stock units, can be traded at any time and are transferable. In addition to restrictions on trading, employee stock options and restricted stock units may include other restrictions such as vesting periods. Further, such models require the input of highly subjective assumptions, including the expected volatility of the stock price. Stock-based compensation expense is generally included in “Selling, general and administrative” expense in our Consolidated Statements of Operations and Comprehensive Income. |
Legal Costs, Policy [Policy Text Block] | Legal Expenses Transactional legal expenses for land acquisition and entitlement, and financing are capitalized and expensed over their appropriate life. We expense legal fees related to litigation, warranty and insurance claims when incurred. |
Income Tax, Policy [Policy Text Block] | Income Taxes We account for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities are recorded based on temporary differences between the amounts reported for financial reporting purposes and the amounts reported for income tax purposes. In accordance with the provisions of ASC 740, we assess the realizability of our deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. See “Income Taxes – Valuation Allowance” below. Federal and state income taxes are calculated on reported pre-tax earnings based on current tax law and also include, in the applicable period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized for financial reporting purposes in different periods than for income tax purposes. Significant judgment is required in determining income tax provisions and evaluating tax positions. We establish reserves for income taxes when, despite the belief that our tax positions are fully supportable, we believe that our positions may be challenged and disallowed by various tax authorities. The consolidated tax provisions and related accruals include the impact of such reasonably estimable disallowances as deemed appropriate. To the extent that the probable tax outcome of these matters changes, such changes in estimates will impact the income tax provision in the period in which such determination is made. ASC 740 clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 requires a company to recognize the financial statement effect of a tax position when it is “more-likely-than-not” (defined as a substantiated likelihood of more than 50% ), based on the technical merits of the position, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in the financial statements based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our inability to determine that a tax position meets the more-likely-than-not recognition threshold does not mean that the Internal Revenue Service (“IRS”) or any other taxing authority will disagree with the position that we have taken. If a tax position does not meet the more-likely-than-not recognition threshold, despite our belief that our filing position is supportable, the benefit of that tax position is not recognized in the Consolidated Statements of Operations and Comprehensive Income and we are required to accrue potential interest and penalties until the uncertainty is resolved. Potential interest and penalties are recognized as a component of the provision for income taxes. Differences between amounts taken in a tax return and amounts recognized in the financial statements are considered unrecognized tax benefits. We believe that we have a reasonable basis for each of our filing positions and intend to defend those positions if challenged by the IRS or other taxing jurisdiction. If the IRS or other taxing authorities do not disagree with our position, and after the statute of limitations expires, we will recognize the unrecognized tax benefit in the period that the uncertainty of the tax position is eliminated. |
Income Taxes - Valuation Allowance [Policy Text Block] | Income Taxes — Valuation Allowance Significant judgment is applied in assessing the realizability of deferred tax assets. In accordance with GAAP, a valuation allowance is established against a deferred tax asset if, based on the available evidence, it is more-likely-than-not that such asset will not be realized. The realization of a deferred tax asset ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law. We assess the need for valuation allowances for deferred tax assets based on GAAP’s more-likely-than-not realization threshold criteria. In our assessment, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. Forming a conclusion that a valuation allowance is not needed is difficult when there is significant negative evidence such as cumulative losses in recent years. This assessment considers, among other matters, the nature, consistency, and magnitude of current and cumulative income and losses; forecasts of future profitability; the duration of statutory carryback or carryforward periods; our experience with operating loss and tax credit carryforwards being used before expiration; and tax planning alternatives. Our assessment of the need for a valuation allowance on our deferred tax assets includes assessing the likely future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. Changes in existing tax laws or rates could affect our actual tax results, and our future business results may affect the amount of our deferred tax liabilities or the valuation of our deferred tax assets over time. Our accounting for deferred tax assets represents our best estimate of future events. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods (carryforward period assumptions), actual results could differ from the estimates used in our analysis. Our assumptions require significant judgment because the residential home building industry is cyclical and is highly sensitive to changes in economic conditions. If our results of operations are less than projected and there is insufficient objectively verifiable positive evidence to support the more-likely-than-not realization of our deferred tax assets, a valuation allowance would be required to reduce or eliminate our deferred tax assets. |
Geographic Segment Reporting Policy [Text Block] | Segment Reporting We operate in two segments: traditional home building and urban infill. We build and sell homes for detached and attached homes in luxury residential communities located in affluent suburban markets and 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 Toll Brothers City Living ® (“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, North Carolina, and Texas West: Arizona, Colorado, Nevada, and Washington California: California |
Related Party Transactions [Policy Text Block] | Related Party Transactions See Note 4, “Investments in Unconsolidated Entities - Rental Property Joint Ventures” for information regarding Toll Brothers Realty Trust. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain prior period amounts have been reclassified to conform to the fiscal 2016 presentation. |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements In January 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-04, “Receivables—Troubled Debt Restructurings by Creditors” (“ASU 2014-04”), which clarifies when an in substance repossession or foreclosure of residential real estate property collateralizing a consumer mortgage loan has occurred. By doing so, this guidance helps determine when the creditor should derecognize the loan receivable and recognize the real estate property. We adopted ASU 2014-04 on November 1, 2015, and the adoption did not have a material effect on our consolidated financial statements or disclosures. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which provides guidance on the classification of restricted cash in the statement of cash flows. ASU 2016-18 is effective for our fiscal year beginning November 1, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2016-18 to have a material effect on our consolidated financial statements and disclosures. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified and will make eight targeted changes to how cash receipts and cash payments are presented in the statement of cash flows. ASU 2016-15 is effective for our fiscal year beginning November 1, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2016-15 to have a material effect on our consolidated financial statements and disclosures. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for our fiscal year beginning November 1, 2020, with early adoption permitted as of November 1, 2019. We do not expect the adoption of ASU 2016-13 to have a material effect on our consolidated financial statements and disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes and forfeitures, statutory tax withholding requirements and classification on the statement of cash flows. ASU 2016-09 is effective for our fiscal year beginning November 1, 2017. We are currently evaluating the impact that the adoption of ASU 2016-09 may have on our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU 2016-02 is effective for our fiscal year beginning November 1, 2019, and, at that time, we will adopt the new standard using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 may have on our consolidated financial statements and disclosures. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customers’ Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). ASU 2015-05 provides guidance for a customer to determine whether a cloud computing arrangement contains a software license or should be accounted for as a service contract. ASU 2015-05 is effective for our fiscal year beginning November 1, 2016, and, at that time, we will adopt the new standard on a prospective basis. We do not expect the adoption of ASU 2015-05 to have a material effect on our consolidated financial statements or disclosures. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis” (“ASU 2015-02”), which eliminates the deferral granted to investment companies from applying the variable interest entities (“VIEs”) guidance and makes targeted amendments to the current consolidation guidance. The new guidance applies to all entities involved with limited partnerships or similar entities and will require re-evaluation of these entities under the revised guidance which may change previous consolidation conclusions. ASU 2015-02 is effective for our fiscal year beginning November 1, 2016. Upon adoption of ASU 2015-02, we expect that one unconsolidated joint venture, not previously identified as a VIE, will be determined to be a VIE, which will result in a modification of our current disclosures. However, the adoption of ASU 2015-02 is not expected to have a material effect on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These judgments and estimates include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 “Revenue from Contracts with Customers” (“ASU 2015-14”), which delays the effective date of ASU 2014-09 by one year. ASU 2014-09, as amended by ASU 2015-14, is effective for our fiscal year beginning November 1, 2018, and, at that time, we expect to adopt the new standard under the modified retrospective approach. We do not believe the adoption of ASU 2014-09 will have a material impact on the amount or timing of our home building revenues. We are continuing to evaluate the impact the adoption of ASU 2014-09 may have on other aspects of our business and on our consolidated financial statements and disclosures. |
Significant Accounting Polici27
Significant Accounting Policies Receivables, prepaid expenses, and other assets (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Receivables, prepaid expenses and other assets [Abstract] | |
Receivables, prepaid expenses, and other assets [Table Text Block] | Receivables, prepaid expenses, and other assets at October 31, 2016 and 2015 , consisted of the following (amounts in thousands): 2016 2015 Expected recoveries from insurance carriers and suppliers $ 165,696 $ 8,314 Improvement cost receivable 85,627 78,565 Escrow cash held by our captive title company 138,633 24,609 Property held for rental development 81,693 78,888 Investment in foreclosed real estate owned 11,552 50,233 Prepaid expenses 25,659 28,044 Other 73,898 67,207 $ 582,758 $ 335,860 See Note 6, “Accrued Expenses,” for additional information regarding the expected recoveries from insurance carriers and suppliers. At October 31, 2016 , escrow cash held by our captive title company includes $106.1 million in connection with the formation of a joint venture in December 2016. See Note 4, “Investments in Unconsolidated Entities – Home Building Joint Ventures,” for additional information. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory at October 31, 2016 and 2015 consisted of the following (amounts in thousands): 2016 2015 Land controlled for future communities $ 71,729 $ 75,214 Land owned for future communities 1,884,146 2,033,447 Operating communities 5,398,092 4,888,855 $ 7,353,967 $ 6,997,516 |
Temporarily Closed communities | Information regarding the classification, number, and carrying value of these temporarily closed communities at October 31, 2016 , 2015 , and 2014 , is provided in the table below ($ amounts in thousands): 2016 2015 2014 Land owned for future communities: Number of communities 18 15 16 Carrying value (in thousands) $ 123,936 $ 119,138 $ 122,015 Operating communities: Number of communities 3 11 9 Carrying value (in thousands) $ 8,523 $ 63,668 $ 42,092 |
Inventory impairment charges and expensing of costs that it is believed not to be recoverable | We provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable in each of the three fiscal years ended October 31, 2016 , 2015 , and 2014 , as shown in the table below (amounts in thousands): Charge: 2016 2015 2014 Land controlled for future communities $ 3,142 $ 809 $ 3,123 Land owned for future communities 2,300 12,600 Operating communities 8,365 22,300 17,555 $ 13,807 $ 35,709 $ 20,678 |
Interest incurred, capitalized and expensed | Interest incurred, capitalized, and expensed in each of the three fiscal years ended October 31, 2016 , 2015 , and 2014 , was as follows (amounts in thousands): 2016 2015 2014 Interest capitalized, beginning of year $ 373,128 $ 356,180 $ 343,077 Interest incurred 164,001 155,170 163,815 Interest expensed to cost of revenues (160,337 ) (142,947 ) (137,457 ) Write-off against other income (1,143 ) (3,843 ) (5,394 ) Interest reclassified to property, construction, and office equipment (1,111 ) Interest capitalized on investments in unconsolidated entities (5,818 ) (7,467 ) (9,672 ) Previously capitalized interest on investments in unconsolidated entities transferred to inventory 699 16,035 1,811 Interest capitalized, end of year $ 369,419 $ 373,128 $ 356,180 |
Investments in Unconsolidated29
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Summary of Joint Venture Information [Table Text Block] | The table below provides information as of October 31, 2016 , regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands): Land Home Building Rental Property Gibraltar Joint Ventures Total Number of unconsolidated entities 7 3 12 4 26 Investment in unconsolidated entities $ 223,483 $ 98,754 $ 153,640 $ 20,534 $ 496,411 Number of unconsolidated entities with funding commitments by the Company 5 2 4 1 12 Company’s remaining funding commitment to unconsolidated entities $ 244,287 $ 9,902 $ 9,623 $ 10,000 $ 273,812 |
Summary of Joint Ventures Borrowing information [Table Text Block] | Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at October 31, 2016 , regarding the debt financing obtained by category ($ amounts in thousands): Land Home Building Rental Property Total Number of joint ventures with debt financing 4 2 10 16 Aggregate loan commitments $ 470,000 $ 135,253 $ 854,266 $ 1,459,519 Amounts borrowed under commitments $ 393,741 $ 106,857 $ 659,191 $ 1,159,789 |
Condensed balance sheet aggregated by type of business | Condensed Balance Sheets: October 31, 2016 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Joint Ventures Total Cash and cash equivalents $ 38,466 $ 12,820 $ 29,103 $ 50,405 $ 130,794 Inventory 719,732 345,588 9,568 1,074,888 Non-performing loan portfolio 4,298 4,298 Rental properties 621,615 621,615 Rental properties under development 302,632 302,632 Real estate owned 87,226 87,226 Other assets 76,518 82,794 14,574 1,919 175,805 Total assets $ 834,716 $ 441,202 $ 967,924 $ 153,416 $ 2,397,258 Debt $ 394,813 $ 110,879 $ 659,191 $ 1,164,883 Other liabilities 38,769 75,419 35,303 3,390 152,881 Members’ equity 401,134 254,904 273,430 50,886 980,354 Noncontrolling interest 99,140 99,140 Total liabilities and equity $ 834,716 $ 441,202 $ 967,924 $ 153,416 $ 2,397,258 Company’s net investment in unconsolidated entities (2) $ 223,483 $ 98,754 $ 153,640 $ 20,534 $ 496,411 October 31, 2015 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Total Cash and cash equivalents $ 29,281 $ 11,203 $ 44,310 $ 10,469 $ 95,263 Inventory 701,527 322,630 1,024,157 Non-performing loan portfolio 27,572 27,572 Rental properties 278,897 278,897 Rental properties under development 390,399 390,399 Real estate owned 117,758 117,758 Other assets (1) 70,799 61,144 12,199 80,475 224,617 Total assets $ 801,607 $ 394,977 $ 725,805 $ 236,274 $ 2,158,663 Debt (1) $ 417,025 $ 117,251 $ 514,895 $ 77,950 $ 1,127,121 Other liabilities 29,772 70,078 30,329 136 130,315 Members’ equity 354,810 207,648 180,581 63,288 806,327 Noncontrolling interest 94,900 94,900 Total liabilities and equity $ 801,607 $ 394,977 $ 725,805 $ 236,274 $ 2,158,663 Company’s net investment in unconsolidated entities (2) $ 214,060 $ 76,120 $ 110,454 $ 12,226 $ 412,860 (1) Included in other assets of the Gibraltar Joint Ventures at October 31, 2015 was $78.0 million of restricted cash held in a defeasance account that was used to repay debt of one of the Gibraltar Joint Ventures in December 2015. (2) Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of the acquisition price of an investment in a Land Development Joint Venture in fiscal 2012 that was in excess of our pro rata share of the underlying equity; impairments related to our investment in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; and distributions from entities in excess of the carrying amount of our net investment. |
Condensed statements of operations aggregate by type of business | Condensed Statements of Operations and Comprehensive Income: For the year ended October 31, 2016 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Total Revenues $ 142,015 $ 168,164 $ 58,707 $ 5,929 $ 374,815 Cost of revenues 63,429 118,621 29,791 24,684 236,525 Other expenses 3,904 8,124 30,779 2,043 44,850 Total expenses 67,333 126,745 60,570 26,727 281,375 Gain on disposition of loans and REO 49,579 49,579 Income (loss) from operations 74,682 41,419 (1,863 ) 28,781 143,019 Other income (expense) 3,464 (486 ) 1,144 1,172 5,294 Net income (loss) 78,146 40,933 (719 ) 29,953 148,313 Less: income attributable to noncontrolling interest (18,218 ) (18,218 ) Net income (loss) attributable to controlling interest 78,146 40,933 (719 ) 11,735 130,095 Other comprehensive income 100 100 Total comprehensive income (loss) $ 78,146 $ 40,933 $ (619 ) $ 11,735 $ 130,195 Company’s equity in earnings of unconsolidated entities (3) $ 15,772 $ 16,945 $ 5,721 $ 2,310 $ 40,748 For the year ended October 31, 2015 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Total Revenues $ 128,889 $ 78,072 $ 35,732 $ 6,102 $ 248,795 Cost of revenues 58,435 69,142 15,539 16,739 159,855 Other expenses 1,999 6,135 24,174 1,312 33,620 Total expenses 60,434 75,277 39,713 18,051 193,475 Gain on disposition of loans and REO 42,939 42,939 Income (loss) from operations 68,455 2,795 (3,981 ) 30,990 98,259 Other income 615 1,072 4,376 2,224 8,287 Net income 69,070 3,867 395 33,214 106,546 Less: income attributable to noncontrolling interest (19,928 ) (19,928 ) Net income attributable to controlling interest 69,070 3,867 395 13,286 86,618 Other comprehensive income 52 52 Total comprehensive income $ 69,070 $ 3,867 $ 447 $ 13,286 $ 86,670 Company’s equity in earnings of unconsolidated entities (3) $ 12,005 $ 3,448 $ 3,027 $ 2,639 $ 21,119 For the year ended October 31, 2014 Land Develop- ment Joint Ventures Home Building Joint Ventures Rental Property Joint Ventures Gibraltar Total Revenues $ 136,949 $ 54,923 $ 32,875 $ 8,023 $ 232,770 Cost of revenues 73,628 53,221 14,250 14,152 155,251 Other expenses 730 5,165 35,003 1,585 42,483 Total expenses 74,358 58,386 49,253 15,737 197,734 Gain on disposition of loans and REO 30,420 30,420 Income (loss) from operations 62,591 (3,463 ) (16,378 ) 22,706 65,456 Other income 66 105 45,933 3,121 49,225 Net income (loss) 62,657 (3,358 ) 29,555 25,827 114,681 Less: income attributable to noncontrolling interest (15,496 ) (15,496 ) Net income (loss) attributable to controlling interest 62,657 (3,358 ) 29,555 10,331 99,185 Other comprehensive income 728 728 Total comprehensive income (loss) $ 62,657 $ (3,358 ) $ 30,283 $ 10,331 $ 99,913 Company’s equity in earnings (losses) of unconsolidated entities (3) $ 1,190 $ (2,034 ) $ 40,081 $ 1,904 $ 41,141 (3) Differences between our equity in earnings (losses) of unconsolidated entities and the underlying net income (loss) of the entities is primarily a result a basis difference of an acquired joint venture interest; distributions from entities in excess of the carrying amount of our net investment; recoveries of previously incurred charges; a gain recognized for the sale of our ownership interest in one of our joint ventures; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired. |
Loans Payable, Senior Notes, 30
Loans Payable, Senior Notes, and Mortgage Company Loan Facility (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Credit Facility, Loans Payable, Senior Notes, and Mortgage Company Loan Facility [Abstract] | |
Schedule of Debt [Table Text Block] | At October 31, 2016 and 2015 , loans payable consisted of the following (amounts in thousands): 2016 2015 Senior unsecured term loan $ 500,000 $ 500,000 Credit facility borrowings 250,000 350,000 Loans payable – other 122,809 151,702 Deferred issuance costs (1,730 ) (1,263 ) $ 871,079 $ 1,000,439 |
Schedule of Loans Payable [Table Text Block] | Information regarding our loans payable at October 31, 2016 and 2015 , is included in the table below ($ amounts in thousands): 2016 2015 Aggregate loans payable at October 31 $ 122,809 $ 151,702 Weighted-average interest rate 3.99 % 3.78 % Interest rate range 0.78% - 7.87% 0.15% - 7.87% Loans secured by assets Carrying value of loans secured by assets $ 122,570 $ 151,702 Carrying value of assets securing loans $ 461,162 $ 378,864 The contractual maturities of “Loans payable – other” as of October 31, 2016 , ranged from three months to 30 years . |
Schedule of Debt Instrument [Table Text Block] | At October 31, 2016 and 2015 , senior notes consisted of the following (amounts in thousands): 2016 2015 8.91% Senior Notes due October 15, 2017 $ 400,000 $ 400,000 4.00% Senior Notes due December 31, 2018 350,000 350,000 6.75% Senior Notes due November 1, 2019 250,000 250,000 5.875% Senior Notes due February 15, 2022 419,876 419,876 4.375% Senior Notes due April 15, 2023 400,000 400,000 5.625% Senior Notes due January 15, 2024 250,000 250,000 4.875% Senior Notes due November 15, 2025 350,000 350,000 0.5% Exchangeable Senior Notes due September 15, 2032 287,500 287,500 Bond discount and deferred issuance costs (13,004 ) (17,575 ) $ 2,694,372 $ 2,689,801 |
Schedule of Maturities of Long-term Debt [Table Text Block] | As of October 31, 2016 , the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands): Amount 2017 $ 637,329 2018 (a) $ 305,543 2019 $ 373,122 2020 $ 253,914 2021 $ 751,983 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses at October 31, 2016 and 2015 , consisted of the following (amounts in thousands): 2016 2015 Land, land development and construction $ 153,264 $ 118,634 Compensation and employee benefits 138,282 125,045 Escrow liability (1) 137,396 24,023 Self-insurance 126,431 113,727 Warranty (2) 370,992 93,083 Deferred income (1) 43,488 43,059 Interest 34,903 26,926 Commitments to unconsolidated entities 5,637 5,534 Other (1) 61,907 58,035 $ 1,072,300 $ 608,066 |
Changes in the warranty accrual | We accrue for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Warranty costs are accrued based upon historical experience. The table below provides a reconciliation of the changes in our warranty accrual during fiscal 2016 , 2015 , and 2014 as follows (amounts in thousands): 2016 2015 2014 Balance, beginning of year $ 93,083 $ 86,282 $ 43,819 Additions - homes closed during the year 28,927 20,934 18,588 Addition - liabilities acquired 11,044 Increase in accruals for homes closed in prior years * 26,689 2,661 2,913 Reclassification from self-insurance accruals 7,554 Increase to water intrusion reserves (see above) ** 267,258 14,685 24,950 Charges incurred (44,965 ) (31,479 ) (22,586 ) Balance, end of year $ 370,992 $ 93,083 $ 86,282 * The fiscal 2016 amount includes (i) the current year charge of $9.3 million , which is included in “Cost of sales” in our 2016 Consolidated Statement of Operations and Comprehensive Income and (ii) $17.3 million of non-water intrusion warranty charges expected to be recovered from our insurance carriers and suppliers, which we recorded as a receivable at October 31, 2016 and is included in “Receivables, prepaid expenses, and other assets” on our 2016 Consolidated Balance Sheet. ** The fiscal 2016 amount includes (i) the current year charge of $125.6 million , which is included in “Cost of sales” in our 2016 Consolidated Statement of Operations and Comprehensive Income and (ii) $141.7 million of water intrusion warranty charges expected to be recovered from our insurance carriers and suppliers, which we recorded as a receivable at October 31, 2016 and is included in “Receivables, prepaid expenses, and other assets” on our 2016 Consolidated Balance Sheet. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Company's effective tax rate from federal statutory rate | The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2016 , 2015 , and 2014 ($ amounts in thousands): 2016 2015 2014 $ %* $ %* $ %* Federal tax provision at statutory rate 206,159 35.0 187,447 35.0 176,604 35.0 State tax provision, net of federal benefit 26,970 4.6 21,947 4.1 23,778 4.7 Domestic production activities deduction (16,874 ) (2.9 ) (12,284 ) (2.3 ) (14,796 ) (2.9 ) Other permanent differences (7,037 ) (1.2 ) (7,821 ) (1.5 ) (6,214 ) (1.2 ) Reversal of accrual for uncertain tax positions (11,177 ) (1.9 ) (15,331 ) (2.9 ) (11,022 ) (2.2 ) Accrued interest on anticipated tax assessments 1,964 0.3 2,588 0.5 1,847 0.4 Increase in unrecognized tax benefits 2,052 0.3 3,214 0.6 5,694 1.1 Valuation allowance — recognized 1,018 0.2 3,681 0.7 1,328 0.3 Valuation allowance — reversed — — (16,323 ) (3.0 ) (13,256 ) (2.6 ) Other 3,857 0.7 5,277 1.0 587 0.1 Income tax provision* 206,932 35.1 172,395 32.2 164,550 32.6 * Due to rounding, amounts may not add. |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Federal $ 189,170 $ 181,819 $ 163,089 State 17,762 (9,424 ) 1,461 $ 206,932 $ 172,395 $ 164,550 Current $ 186,662 $ 122,953 $ 129,047 Deferred 20,270 49,442 35,503 $ 206,932 $ 172,395 $ 164,550 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Balance, beginning of year $ 51,889 $ 58,318 $ 78,105 Increase in benefit as a result of tax positions taken in prior years 8,110 16,802 10,314 Increase in benefit as a result of tax positions taken in current year 694 9,005 442 Decrease in benefit as a result of settlements (28,976 ) (31,013 ) Decrease in benefit as a result of completion of audits (1,222 ) Decrease in benefit as a result of lapse of statute of limitations (1,445 ) (1,223 ) (29,321 ) Balance, end of year $ 30,272 $ 51,889 $ 58,318 |
Tax Benefits potential interest and penalties | The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the 12-month periods ended October 31, 2016 , 2015 , and 2014 , and the amounts accrued for potential interest and penalties at October 31, 2016 and 2015 (amounts in thousands): Expense recognized in the Consolidated Statements of Operations and Comprehensive Income Fiscal year 2016 $ 3,426 2015 $ 4,454 2014 $ 9,694 Accrued at: October 31, 2016 $ 9,282 October 31, 2015 $ 17,012 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of net deferred tax assets and liabilities at October 31, 2016 and 2015 are set forth below (amounts in thousands): 2016 2015 Deferred tax assets: Accrued expenses $ 103,134 $ 72,426 Impairment charges 113,950 130,709 Inventory valuation differences 78,483 67,610 Stock-based compensation expense 49,004 54,768 Amounts related to unrecognized tax benefits 8,345 25,267 State tax, net operating loss carryforward 50,031 53,103 Other 6,329 7,410 Total assets 409,276 411,293 Deferred tax liabilities: Capitalized interest 85,873 107,970 Deferred income 52,406 17,661 Expenses taken for tax purposes not for book 47,045 37,868 Depreciation 5,440 3,819 Deferred marketing 18,945 14,384 Total liabilities 209,709 181,702 Net deferred tax assets before valuation allowances 199,567 229,591 Cumulative valuation allowance - state (32,154 ) (31,136 ) Net deferred tax assets $ 167,413 $ 198,455 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Stock Repurchase Program [Abstract] | |
Stock repurchase program | The following table provides information about the share repurchase programs for the fiscal years ended October 31, 2016 , 2015 , and 2014 : 2016 2015 2014 Number of shares purchased (in thousands) 13,652 1,665 2,947 Average price per share $ 28.77 $ 34.17 $ 30.80 Remaining authorization at October 31 (in thousands) 15,838 18,535 5,321 |
Stock-Based Benefit Plans (Tabl
Stock-Based Benefit Plans (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation expense recognized | The following table provides information regarding the amount of total stock-based compensation expense recognized by us for fiscal 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Total stock-based compensation expense recognized $ 26,679 $ 22,903 $ 21,656 Income tax benefit recognized $ 10,450 $ 8,767 $ 8,322 |
Weighted-average assumptions and the fair value used for stock option grants | The following table summarizes the weighted-average assumptions and fair value used for stock option grants in each of the fiscal years ended October 31, 2016 , 2015 , and 2014 : 2016 2015 2014 Expected volatility 32.03% - 42.31% 32.69% - 42.58% 36.44% - 44.71% Weighted-average volatility 34.69% 36.36% 42.71% Risk-free interest rate 1.58% - 2.14% 1.53% - 2.11% 1.45% - 2.71% Expected life (years) 4.56 - 9.17 4.54 - 9.12 4.55 - 9.02 Dividends none none none Weighted-average fair value per share of options granted $11.24 $11.67 $14.26 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes stock option activity for our plans during each of the fiscal years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands, except per share amounts): 2016 2015 2014 Number of options Weighted- average exercise price Number of options Weighted- average exercise price Number of options Weighted- average exercise price Balance, beginning 8,025 $ 25.75 9,358 $ 25.94 9,924 $ 24.51 Granted 965 32.85 870 32.49 819 35.16 Exercised (255 ) 24.04 (1,441 ) 27.52 (1,313 ) 20.88 Canceled (221 ) 35.23 (762 ) 32.48 (72 ) 25.23 Balance, ending 8,514 $ 26.36 8,025 $ 25.75 9,358 $ 25.94 Options exercisable, at October 31, 6,407 $ 24.14 6,098 $ 23.67 7,482 $ 24.91 |
Intrinsic Value of Options Outstanding and Exercisable [Table Text Block] | The following table provides information pertaining to the intrinsic value of options outstanding and exercisable at October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Intrinsic value of options outstanding $ 31,852 $ 82,058 $ 62,073 Intrinsic value of options exercisable $ 31,852 $ 75,034 $ 55,776 |
Intrinsic Value of Options Exercised and Fair Value of Options [Table Text Block] | Information pertaining to the intrinsic value of options exercised and the fair market value of options that became vested or modified in each of the fiscal years ended October 31, 2016 , 2015 , and 2014 , is provided below (amounts in thousands): 2016 2015 2014 Intrinsic value of options exercised $ 2,337 $ 12,923 $ 18,361 Fair market value of options vested $ 9,690 $ 9,183 $ 8,447 |
Information Regarding the Use of the Net Exercise Method [Text Block] | The following table provides information regarding the use of the net exercise method for fiscal 2016 , 2015 , and 2014 : 2016 2015 2014 Options exercised 5,000 30,000 96,162 Shares withheld 3,547 29,917 58,819 Shares issued 1,453 83 37,343 Average fair market value per share withheld $ 32.85 $ 32.64 $ 33.78 Aggregate fair market value of shares withheld (in thousands) $ 117 $ 976 $ 1,987 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation expense recognized | Information regarding the stock compensation expense, related to stock options, for fiscal 2016 , 2015 and 2014 was as follows (amounts in thousands): 2016 2015 2014 Stock compensation expense recognized - options $ 10,986 $ 9,610 $ 9,005 |
Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table provides information regarding our employee stock purchase plan for fiscal 2016 , 2015 , and 2014 : 2016 2015 2014 Shares issued 36,778 26,674 24,275 Average price per share $ 25.97 $ 31.65 $ 30.59 Compensation expense recognized (in thousands) $ 129 $ 113 $ 98 |
Vesting Based On Service [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table provides information regarding these RSUs for fiscal 2016 , 2015 , and 2014 : 2016 2015 2014 Nonperformance-Based RSUs issued: Number of RSUs issued 139,684 124,568 99,336 Weighted average closing price of our common stock on date of issuance $ 32.85 $ 32.74 $ 35.16 Aggregate fair value of RSUs issued (in thousands) $ 4,589 $ 4,078 $ 3,493 Nonperformance-Based RSU expense recognized (in thousands): $ 3,958 $ 3,317 $ 3,012 2016 2015 2014 At October 31: Aggregate Nonperformance-Based RSUs outstanding 396,716 380,548 304,286 Cumulative unamortized value of Nonperformance-Based RSUs (in thousands) $ 2,956 $ 2,542 $ 2,043 |
Vesting Based On Performance [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table provides information regarding the issuance, valuation assumptions, and amortization of the Performance-Based RSUs issued in fiscal 2016 , 2015 , and 2014 : 2016 2015 2014 Number of shares underlying Performance-Based RSUs to be issued 182,853 300,042 288,814 Aggregate number of Performance-Based RSUs outstanding at October 31 1,074,222 1,261,545 961,503 Closing price of our common stock on Valuation Date $ 32.85 $ 32.49 $ 35.16 Aggregate fair value of Performance-Based RSUs issued (in thousands) $ 6,007 $ 9,748 $ 10,155 Performance-Based RSU expense recognized (in thousands) $ 8,301 $ 9,863 $ 9,310 Unamortized value of Performance-Based RSUs at October 31 (in thousands) $ 6,556 $ 8,850 $ 8,965 |
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The three distinct performance periods are as follows: Performance Period Initial Number of TSR RSUs issued Tranche 1 November 1, 2015 to October 31, 2016 61,796 Tranche 2 November 1, 2015 to October 31, 2017 57,230 Tranche 3 November 1, 2015 to October 31, 2018 52,679 |
Income Per Share Information (T
Income Per Share Information (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of income per share | Information pertaining to the calculation of income per share for each of the fiscal years ended October 31, 2016 , 2015 , and 2014 , is as follows (amounts in thousands): 2016 2015 2014 Numerator: Net income as reported $ 382,095 $ 363,167 $ 340,032 Plus: Interest and costs attributable to 0.5% Exchangeable Senior Notes, net of income tax benefit 1,538 1,561 1,557 Numerator for diluted earnings per share $ 383,633 $ 364,728 $ 341,589 Denominator: Basic weighted-average shares 168,261 176,425 177,578 Common stock equivalents (a) 1,854 2,420 2,439 Shares attributable to 0.5% Exchangeable Senior Notes 5,858 5,858 5,858 Diluted weighted-average shares 175,973 184,703 185,875 Other information: Weighted-average number of antidilutive options and restricted stock units (b) 3,932 1,826 1,970 Shares issued under stock incentive and employee stock purchase plans 587 1,467 1,453 (a) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options using the treasury stock method and shares expected to be issued under Performance-Based Restricted Stock Units and Nonperformance-Based Restricted Stock Units. (b) Weighted-average number of antidilutive options and restricted stock units are based upon the average of the average quarterly closing prices of our common stock on the NYSE for the year. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Summary of assets and (liabilities), measured at fair value on a recurring basis | A summary of assets and (liabilities) at October 31, 2016 and 2015 , related to our financial instruments, measured at fair value on a recurring basis, is set forth below (amounts in thousands): Fair value Financial Instrument Fair value hierarchy October 31, 2016 October 31, 2015 Marketable Securities Level 2 $ 10,001 Residential Mortgage Loans Held for Sale Level 2 $ 248,601 $ 123,175 Forward Loan Commitments – Residential Mortgage Loans Held for Sale Level 2 $ 1,390 $ 186 Interest Rate Lock Commitments (“IRLCs”) Level 2 $ (921 ) $ (297 ) Forward Loan Commitments – IRLCs Level 2 $ 921 $ 297 |
Aggregate unpaid principal and fair value of mortgage loans held for sale | The table below provides, for the periods indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale as of the date indicated (amounts in thousands): At October 31, Aggregate unpaid principal balance Fair value Excess 2016 $ 246,794 $ 248,601 $ 1,807 2015 $ 121,904 $ 123,175 $ 1,271 |
Fair value of inventory adjusted for impairment | Impaired operating communities Three months ended: Number of Number of communities Fair value of Impairment charges recognized Fiscal 2016: January 31 43 2 $ 1,713 $ 600 April 30 41 2 $ 10,103 6,100 July 31 51 2 $ 11,714 1,250 October 31 59 2 $ 1,126 415 $ 8,365 Fiscal 2015: January 31 58 4 $ 24,968 $ 900 April 30 52 1 $ 16,235 11,100 July 31 40 3 $ 13,527 6,000 October 31 44 3 $ 8,726 4,300 $ 22,300 Fiscal 2014: January 31 67 1 $ 7,131 $ 1,300 April 30 65 2 $ 6,211 1,600 July 31 63 1 $ 14,122 4,800 October 31 55 7 $ 38,473 9,855 $ 17,555 |
Book value and estimated fair value of the Company's debt | The table below provides, as of the dates indicated, the book value and estimated fair value of our debt at October 31, 2016 and 2015 (amounts in thousands): 2016 2015 Fair value hierarchy Book value Estimated fair value Book value Estimated fair value Loans payable (a) Level 2 $ 872,809 $ 870,384 $ 1,001,702 $ 1,001,366 Senior notes (b) Level 1 2,707,376 2,843,177 2,707,376 2,877,039 Mortgage company loan facility (c) Level 2 210,000 210,000 100,000 100,000 $ 3,790,185 $ 3,923,561 $ 3,809,078 $ 3,978,405 (a) The estimated fair value of loans payable was based upon contractual cash flows discounted at interest rates that we believed were available to us for loans with similar terms and remaining maturities as of the applicable valuation date. (b) The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date. (c) We believe that the carrying value of our mortgage company loan borrowings approximates their fair value. |
Operating communities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis, Valuation Techniques [Table Text Block] | The table below summarizes, for the periods indicated, the ranges of certain quantitative unobservable inputs utilized in determining the fair value of impaired communities: Selling price per unit ($ in thousands) Sales pace per year (in units) Discount rate Three months ended October 31, 2016 — — — Three months ended July 31, 2016 — — — Three months ended April 30, 2016 369 - 394 18 - 23 16.3% Three months ended January 31, 2016 — — — Three months ended October 31, 2015 301 - 764 3 - 24 16.3% - 22.0% Three months ended July 31, 2015 788 - 1,298 4 - 8 15.5% - 16.2% Three months ended April 30, 2015 527 - 600 13 - 25 17.0% Three months ended January 31, 2015 289 - 680 1 - 7 13.5% - 16.0% |
Employee Retirement and Defer37
Employee Retirement and Deferred Compensation Plans (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | Information related to our retirement plans for each of the fiscal years ended October 31, 2016 , 2015 , and 2014 , is as follows (amounts in thousands): 2016 2015 2014 Plan costs: Service cost $ 562 $ 579 $ 470 Interest cost 1,276 1,232 1,277 Amortization of prior service cost 947 806 662 Amortization of unrecognized losses 42 81 8 $ 2,827 $ 2,698 $ 2,417 Projected benefit obligation: Beginning of year $ 35,815 $ 34,606 $ 32,136 Plan amendments adopted during year 757 768 511 Service cost 562 579 470 Interest cost 1,276 1,232 1,277 Benefit payments (1,129 ) (988 ) (971 ) Change in unrecognized loss 1,699 (382 ) 1,183 Projected benefit obligation, end of year $ 38,980 $ 35,815 $ 34,606 Unamortized prior service cost: Beginning of year $ 2,965 $ 3,003 $ 3,154 Plan amendments adopted during year 757 768 511 Amortization of prior service cost (947 ) (806 ) (662 ) Unamortized prior service cost, end of year $ 2,775 $ 2,965 $ 3,003 Accumulated unrecognized loss, October 31 $ 2,898 $ 1,240 $ 1,703 Accumulated benefit obligation, October 31 $ 38,980 $ 35,815 $ 34,606 Accrued benefit obligation, October 31 $ 38,980 $ 35,815 $ 34,606 |
Schedule of Expected Benefit Payments [Table Text Block] | The table below provides, based upon the estimated retirement dates of the participants in the retirement plans, the amounts of benefits we would be required to pay in each of the next five fiscal years and for the five fiscal years ended October 31, 2026 in the aggregate (in thousands): Year ending October 31, Amount 2017 $ 1,326 2018 $ 2,124 2019 $ 2,503 2020 $ 2,611 2021 $ 2,702 November 1, 2021 – October 31, 2026 $ 15,290 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The tables below provide, for the fiscal years ended October 31, 2016 and 2015 , the components of accumulated other comprehensive loss (amounts in thousands): 2016 Employee retirement plans Derivative instruments Total Balance, beginning of period $ (2,478 ) $ (31 ) $ (2,509 ) Other comprehensive (loss) income before reclassifications (2,456 ) 50 (2,406 ) Gross amounts reclassified from accumulated other comprehensive income 989 989 Income tax benefit (expense) 609 (19 ) 590 Other comprehensive (loss) income, net of tax (858 ) 31 (827 ) Balance, end of period $ (3,336 ) $ — $ (3,336 ) 2015 Employee retirement plans Available-for-sale securities Derivative instruments Total Balance, beginning of period $ (2,789 ) $ (2 ) $ (47 ) $ (2,838 ) Other comprehensive (loss) income before reclassifications (387 ) 3 26 (358 ) Gross amounts reclassified from accumulated other comprehensive income 887 887 Income tax expense (189 ) (1 ) (10 ) (200 ) Other comprehensive income, net of tax 311 2 16 329 Balance, end of period $ (2,478 ) $ — $ (31 ) $ (2,509 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Company purchase commitments | Information regarding our land purchase commitments at October 31, 2016 and 2015 , is provided in the table below (amounts in thousands): 2016 2015 Aggregate purchase commitments: Unrelated parties $ 1,544,185 $ 1,081,008 Unconsolidated entities that the Company has investments in 79,204 136,340 Total $ 1,623,389 $ 1,217,348 Deposits against aggregate purchase commitments $ 65,299 $ 79,072 Additional cash required to acquire land 1,558,090 1,138,276 Total $ 1,623,389 $ 1,217,348 Amount of additional cash required to acquire land included in accrued expenses $ 18,266 $ 4,809 |
Company mortgage commitments | Information regarding our mortgage commitments at October 31, 2016 and 2015 , is provided in the table below (amounts in thousands): 2016 2015 Aggregate mortgage loan commitments: IRLCs $ 255,647 $ 316,184 Non-IRLCs 1,094,861 941,243 Total $ 1,350,508 $ 1,257,427 Investor commitments to purchase: IRLCs $ 255,647 $ 316,184 Mortgage loans receivable 231,398 115,859 Total $ 487,045 $ 432,043 |
Operating Leases of Lessee Disclosure [Table Text Block] | Rental expenses incurred by us under these operating leases were (amounts in thousands): Year ending October 31, Amount 2016 $ 13,360 2015 $ 12,584 2014 $ 12,385 |
Future minimum rent payments under these operating leases [Text Block] | At October 31, 2016 , future minimum rent payments under our operating leases were (amounts in thousands): Year ending October 31, Amount 2017 $ 11,634 2018 9,182 2019 7,044 2020 2,337 2021 994 Thereafter 694 $ 31,885 |
Other Income - Net (Tables)
Other Income - Net (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income - net [Table Text Block] | The table below provides the components of other income - net for the years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Interest income $ 2,443 $ 1,939 $ 2,493 Income from ancillary businesses 17,473 23,530 10,653 Gibraltar 6,646 10,168 14,364 Management fee income from unconsolidated entities 10,270 11,299 7,306 Retained customer deposits 5,866 5,224 3,067 Income from land sales 13,327 13,150 25,489 Directly expensed interest (656 ) Other 2,193 2,263 3,476 Total other income – net $ 58,218 $ 67,573 $ 66,192 |
Revenues and Expenses of Non Core Ancillary Businesses [Table Text Block] | The table below provides revenues and expenses for these ancillary businesses for the years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Revenue $ 123,512 $ 119,732 $ 100,284 Expense $ 106,039 $ 96,202 $ 89,631 |
Schedule of revenues and expenses from land sales [Table Text Block] | The table below provides revenues and expenses recognized from land sales for the years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): 2016 2015 2014 Revenue $ 85,268 $ 183,870 $ 242,931 Expense (70,488 ) (161,460 ) (217,442 ) Deferred gains on land sales to joint ventures (2,999 ) (9,260 ) Deferred gains recognized 1,546 $ 13,327 $ 13,150 $ 25,489 Land sale revenues for the year ended October 31, 2016 includes $38.1 million related to an in substance real estate sale transaction which resulted in a new Rental Property Joint Venture in which we have a 50% interest. Due to our continued involvement in the joint venture through our ownership interest, we deferred 50% of the gain realized on the sale. We will amortize the deferred gain into income using the straight line method over the life of the rental property. Land sale revenues for the year October 31, 2015, include $78.5 million related to property sold to a Home Building Joint Venture in which we have a 25% interest. Due to our continued involvement in the joint venture through our ownership interest and guarantees provided on the joint venture’s debt, we deferred the $9.3 million gain realized on the sale. We are recognizing the gain as units are sold to the ultimate home buyers. See Note 4, “Investments in Unconsolidated Entities,” for more information on these transactions. |
Information on Segments (Tables
Information on Segments (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenue and income (loss) before income taxes and total assets [Table Text Block] | Total assets for each of our segments at October 31, 2016 and 2015 , are shown in the table below (amounts in thousands): 2016 2015 Traditional Home Building: North $ 1,020,250 $ 1,061,777 Mid-Atlantic 1,166,023 1,225,988 South 1,203,554 1,196,650 West 1,130,625 949,566 California 2,479,885 2,243,309 Traditional Home Building 7,000,337 6,677,290 City Living 946,738 873,013 Corporate and other 1,789,714 1,656,212 $ 9,736,789 $ 9,206,515 “Corporate and other” is comprised principally of cash and cash equivalents, marketable securities, restricted cash and investments, deferred tax assets, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments, manufacturing facilities, and mortgage and title subsidiaries. The table below summarizes revenue and income (loss) before income taxes for our segments for each of the fiscal years ended October 31, 2016 , 2015 , and 2014 (amounts in thousands): Revenues Income (loss) before income taxes 2016 2015 2014 2016 2015 2014 Traditional Home Building: North $ 814,519 $ 702,175 $ 662,734 $ 77,017 $ 59,172 $ 56,983 Mid-Atlantic 895,736 845,328 817,306 (29,361 ) 69,093 78,971 South 849,548 892,303 836,498 128,613 152,991 113,584 West 903,691 665,282 517,925 127,265 106,365 78,802 California 1,448,546 750,036 795,802 335,173 139,133 157,561 Traditional Home Building 4,912,040 3,855,124 3,630,265 638,707 526,754 485,901 City Living 257,468 316,124 281,337 91,109 124,290 104,580 Corporate and other (140,789 ) (115,482 ) (85,899 ) $ 5,169,508 $ 4,171,248 $ 3,911,602 $ 589,027 $ 535,562 $ 504,582 “Corporate and other” is comprised principally of general corporate expenses such as the offices of our executive officers; 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 a number of our unconsolidated entities. |
Schedule of inventory, by segment [Table Text Block] | Inventory for each of our segments, as of the dates indicated, is shown in the table below (amounts in thousands): Land controlled for future communities Land owned for future communities Operating communities Total Balances at October 31, 2016 Traditional Home Building: North $ 20,671 $ 79,299 $ 883,195 $ 983,165 Mid-Atlantic 30,967 109,551 982,482 1,123,000 South 6,024 96,900 927,400 1,030,324 West 7,724 191,995 906,334 1,106,053 California 5,337 989,689 1,293,509 2,288,535 Traditional Home Building 70,723 1,467,434 4,992,920 6,531,077 City Living 1,006 416,712 405,172 822,890 $ 71,729 $ 1,884,146 $ 5,398,092 $ 7,353,967 Balances at October 31, 2015 Traditional Home Building: North $ 12,858 $ 146,063 $ 865,553 $ 1,024,474 Mid-Atlantic 33,196 194,058 956,749 1,184,003 South 4,861 205,562 806,513 1,016,936 West 8,417 198,689 726,256 933,362 California 14,386 899,675 1,149,112 2,063,173 Traditional Home Building 73,718 1,644,047 4,504,183 6,221,948 City Living 1,496 389,400 384,672 775,568 $ 75,214 $ 2,033,447 $ 4,888,855 $ 6,997,516 |
Schedule of inventory impairments, by segment [Table Text Block] | 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 years ended October 31, 2016 , 2015 , and 2014 , are shown in the table below (amounts in thousands): 2016 2015 2014 Traditional Home Building: North $ 7,579 $ 15,033 $ 9,148 Mid-Atlantic 2,076 19,488 9,069 South 3,316 720 2,285 West 746 420 169 California 7 Traditional Home Building 13,717 35,661 20,678 City Living 90 48 $ 13,807 $ 35,709 $ 20,678 |
Schedule of investments in unconsolidated entities and equity in earnings (losses) from unconsolidated entities, by segment [Table Text Block] | The net carrying value of our investments in unconsolidated entities and our equity in earnings (losses) from such investments, for each of our segments, as of the dates indicated, are shown in the table below (amounts in thousands): Investments in unconsolidated entities Equity in earnings (losses) from unconsolidated entities At October 31, Year ended October 31, 2016 2015 2016 2015 2014 Traditional Home Building: Mid-Atlantic $ 12,639 $ 12,167 $ (8 ) South 93,182 97,041 $ 11,013 $ 11,074 2,621 West 2,921 447 (166 ) California 130,534 128,338 5,896 5,089 302 Traditional Home Building 236,355 237,546 19,830 16,610 2,749 City Living 85,882 52,634 13,184 (1,158 ) (3,593 ) Corporate and other 174,174 122,680 7,734 5,667 41,985 $ 496,411 $ 412,860 $ 40,748 $ 21,119 $ 41,141 “Corporate and other” is comprised of our investments in the Rental Property Joint Ventures and the Gibraltar Joint Ventures. |
Supplemental Disclosure to St42
Supplemental Disclosure to Statements of Cash Flows (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental disclosures to the consolidated statements of cash flows | The following are supplemental disclosures to the Consolidated Statements of Cash Flows for each of the fiscal years ended October 31, 2016 , 2015 and 2014 (amounts in thousands): 2016 2015 2014 Cash flow information: Interest paid, net of amount capitalized $ 12,131 $ 23,930 $ 10,131 Income tax payments $ 185,084 $ 205,412 $ 71,608 Income tax refunds $ 4,451 $ 16,965 $ 8 Noncash activity: Cost of inventory acquired through seller financing or municipal bonds, net $ 5,807 $ 67,890 $ 96,497 Financed portion of land sale $ 2,273 $ 6,586 Reduction in inventory for our share of earnings in land purchased from unconsolidated entities and allocation of basis difference $ 9,012 $ 9,188 $ 4,177 Reclassification of deferred income from inventory to accrued liabilities $ 2,111 Reclassification of inventory to property, construction, and office equipment $ 17,064 $ 9,482 Increase (decrease) in unrecognized losses in defined benefit plans $ 1,699 $ (382 ) $ 1,183 Defined benefit plan amendment $ 757 $ 768 $ 511 Deferred tax decrease related to stock-based compensation activity included in additional paid-in capital $ 11,363 $ 2,325 $ 312 Increase in accrued expenses related to stock-based compensation $ 6,240 $ 5,086 Income tax benefit (expense) recognized in total comprehensive income $ 590 $ (200 ) $ 202 Transfer of inventory to investment in unconsolidated entities $ 4,152 Transfer of investment in unconsolidated entities to inventory $ 132,256 $ 2,704 Transfer of other assets to investment in unconsolidated entities $ 24,967 $ 4,852 Unrealized gain on derivatives held by equity investees $ 26 $ 364 Increase in investments in unconsolidated entities for change in the fair value of debt guarantees $ 29 $ 1,843 $ 1,356 Miscellaneous increases to investments in unconsolidated entities $ 1,510 $ 144 $ 249 Business Acquisition: Fair value of assets purchased, excluding cash acquired $ 1,524,964 Liabilities assumed $ 35,848 Cash paid, net of cash acquired $ 1,489,116 |
Supplemental Guarantor Inform43
Supplemental Guarantor Information (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Supplemental Guarantor Information [Abstract] | |
Senior Notes issued by Subsidiary Issuer [Table Text Block] | Our 100% -owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following Senior Notes (amounts in thousands): Original amount issued and amount outstanding at October 31, 2016 8.91% Senior Notes due 2017 $ 400,000 4.0% Senior Notes due 2018 $ 350,000 6.75% Senior Notes due 2019 $ 250,000 5.875% Senior Notes due 2022 $ 419,876 4.375% Senior Notes due 2023 $ 400,000 5.625% Senior Notes due 2024 $ 250,000 4.875% Senior Notes due 2025 $ 350,000 0.5% Exchangeable Senior Notes due 2032 $ 287,500 |
Supplemental Consolidated Financial Information | Supplemental consolidating financial information of Toll Brothers, Inc., the Subsidiary Issuer, the Guarantor Subsidiaries, the Nonguarantor Subsidiaries, and the eliminations to arrive at Toll Brothers, Inc. on a consolidated basis is presented below ($ amounts in thousands). Consolidating Balance Sheet at October 31, 2016 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents — — 583,440 50,275 — 633,715 Restricted cash and investments 11,708 19,583 31,291 Inventory 6,896,205 457,806 (44 ) 7,353,967 Property, construction, and office equipment, net 153,663 15,913 169,576 Receivables, prepaid expenses, and other assets 77 319,319 299,978 (36,616 ) 582,758 Mortgage loans held for sale 248,601 248,601 Customer deposits held in escrow 50,079 2,978 53,057 Investments in unconsolidated entities 101,999 394,412 496,411 Investments in and advances to consolidated entities 4,112,876 2,741,160 20,519 90,671 (6,965,226 ) — Deferred tax assets, net of valuation allowances 167,413 167,413 4,292,074 2,741,160 8,125,224 1,580,217 (7,001,886 ) 9,736,789 LIABILITIES AND EQUITY Liabilities Loans payable 871,079 871,079 Senior notes 2,683,823 10,549 2,694,372 Mortgage company loan facility 210,000 210,000 Customer deposits 292,794 16,305 309,099 Accounts payable 280,107 1,848 281,955 Accrued expenses 32,559 610,958 469,527 (40,744 ) 1,072,300 Advances from consolidated entities 1,737,682 747,026 (2,484,708 ) — Income taxes payable 62,782 62,782 Total liabilities 62,782 2,716,382 3,792,620 1,444,706 (2,514,903 ) 5,501,587 Equity Stockholders’ equity Common stock 1,779 48 3,006 (3,054 ) 1,779 Additional paid-in capital 728,464 49,400 6,734 (56,134 ) 728,464 Retained earnings 3,977,297 (24,622 ) 4,332,556 119,861 (4,427,795 ) 3,977,297 Treasury stock, at cost (474,912 ) (474,912 ) Accumulated other comprehensive loss (3,336 ) (3,336 ) Total stockholders’ equity 4,229,292 24,778 4,332,604 129,601 (4,486,983 ) 4,229,292 Noncontrolling interest 5,910 5,910 Total equity 4,229,292 24,778 4,332,604 135,511 (4,486,983 ) 4,235,202 4,292,074 2,741,160 8,125,224 1,580,217 (7,001,886 ) 9,736,789 Consolidating Balance Sheet at October 31, 2015 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents — — 783,599 135,394 — 918,993 Marketable securities 10,001 10,001 Restricted cash and investments 15,227 499 1,069 16,795 Inventory 6,530,698 466,818 6,997,516 Property, construction, and office equipment, net 121,178 15,577 136,755 Receivables, prepaid expenses, and other assets 52 149,268 230,410 (43,870 ) 335,860 Mortgage loans held for sale 123,175 123,175 Customer deposits held in escrow 51,767 4,338 56,105 Investments in unconsolidated entities 115,999 296,861 412,860 Investments in and advances to consolidated entities 4,067,722 2,726,428 4,740 (6,798,890 ) — Deferred tax assets, net of valuation allowances 198,455 198,455 4,281,456 2,726,428 7,757,748 1,283,643 (6,842,760 ) 9,206,515 LIABILITIES AND EQUITY Liabilities Loans payable 1,000,439 1,000,439 Senior notes 2,669,860 19,941 2,689,801 Mortgage company loan facility 100,000 100,000 Customer deposits 271,124 13,185 284,309 Accounts payable 236,436 517 236,953 Accrued expenses 25,699 361,089 266,411 (45,133 ) 608,066 Advances from consolidated entities 1,932,075 850,374 (2,782,449 ) — Income taxes payable 58,868 58,868 Total liabilities 58,868 2,695,559 3,801,163 1,230,487 (2,807,641 ) 4,978,436 Equity Stockholders’ equity Common stock 1,779 48 3,006 (3,054 ) 1,779 Additional paid-in capital 728,125 49,400 1,734 (51,134 ) 728,125 Retained earnings 3,595,202 (18,531 ) 3,956,568 42,894 (3,980,931 ) 3,595,202 Treasury stock, at cost (100,040 ) (100,040 ) Accumulated other comprehensive loss (2,478 ) (31 ) (2,509 ) Total stockholders’ equity 4,222,588 30,869 3,956,585 47,634 (4,035,119 ) 4,222,557 Noncontrolling interest 5,522 5,522 Total equity 4,222,588 30,869 3,956,585 53,156 (4,035,119 ) 4,228,079 4,281,456 2,726,428 7,757,748 1,283,643 (6,842,760 ) 9,206,515 Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2016 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues 4,984,356 317,018 (131,866 ) 5,169,508 Cost of revenues 4,000,112 163,970 (20,017 ) 4,144,065 Selling, general and administrative 75 3,809 558,686 73,488 (100,676 ) 535,382 75 3,809 4,558,798 237,458 (120,693 ) 4,679,447 Income (loss) from operations (75 ) (3,809 ) 425,558 79,560 (11,173 ) 490,061 Other: Income from unconsolidated entities 16,913 23,835 40,748 Other income - net 9,501 27,873 17,456 3,388 58,218 Intercompany interest income 145,828 (145,828 ) — Interest expense (151,410 ) (2,203 ) 153,613 — Income from consolidated subsidiaries 579,601 109,257 (688,858 ) — Income (loss) before income taxes 589,027 (9,391 ) 579,601 118,648 (688,858 ) 589,027 Income tax provision (benefit) 206,932 (3,299 ) 203,614 41,681 (241,996 ) 206,932 Net income (loss) 382,095 (6,092 ) 375,987 76,967 (446,862 ) 382,095 Other comprehensive (loss) income (858 ) 31 (827 ) Total comprehensive income (loss) 381,237 (6,092 ) 376,018 76,967 (446,862 ) 381,268 Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2015 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues 4,213,776 77,226 (119,754 ) 4,171,248 Cost of revenues 3,276,078 12,909 (19,717 ) 3,269,270 Selling, general and administrative 113 3,560 481,943 60,377 (90,885 ) 455,108 113 3,560 3,758,021 73,286 (110,602 ) 3,724,378 Income (loss) from operations (113 ) (3,560 ) 455,755 3,940 (9,152 ) 446,870 Other: Income from unconsolidated entities 14,034 7,085 21,119 Other income - net 9,429 34,098 21,724 2,322 67,573 Intercompany interest income 137,362 (137,362 ) — Interest expense (143,193 ) (999 ) 144,192 — Income from consolidated subsidiaries 526,246 22,359 (548,605 ) — Income (loss) before income taxes 535,562 (9,391 ) 526,246 31,750 (548,605 ) 535,562 Income tax provision (benefit) 172,395 (3,628 ) 203,296 12,265 (211,933 ) 172,395 Net income (loss) 363,167 (5,763 ) 322,950 19,485 (336,672 ) 363,167 Other comprehensive income (loss) 311 18 329 Total comprehensive income (loss) 363,478 (5,763 ) 322,968 19,485 (336,672 ) 363,496 Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2014 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues 3,950,509 79,097 (118,004 ) 3,911,602 Cost of revenues 3,098,048 9,406 (25,617 ) 3,081,837 Selling, general and administrative 132 3,670 457,808 55,721 (84,815 ) 432,516 132 3,670 3,555,856 65,127 (110,432 ) 3,514,353 Income (loss) from operations (132 ) (3,670 ) 394,653 13,970 (7,572 ) 397,249 Other: Income from unconsolidated entities 40,588 553 41,141 Other income - net 9,403 40,594 15,416 779 66,192 Intercompany interest income 148,177 (148,177 ) — Interest expense (153,898 ) (1,072 ) 154,970 — Income from consolidated subsidiaries 495,311 19,476 (514,787 ) — Income (loss) before income taxes 504,582 (9,391 ) 495,311 28,867 (514,787 ) 504,582 Income tax (benefit) provision 164,550 (3,609 ) 190,349 11,094 (197,834 ) 164,550 Net income (loss) 340,032 (5,782 ) 304,962 17,773 (316,953 ) 340,032 Other comprehensive (loss) income (677 ) 202 24 (451 ) Total comprehensive income (loss) 339,355 (5,782 ) 305,164 17,797 (316,953 ) 339,581 Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2016 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities 60,465 14,768 105,709 (12,330 ) (19,841 ) 148,771 Cash flow provided by (used in) investing activities: Purchase of property and equipment — net (27,835 ) (591 ) (28,426 ) Sale and redemption of marketable securities 10,000 10,000 Investment in unconsolidated entities (2,637 ) (67,018 ) (69,655 ) Return of investments in unconsolidated entities 32,857 14,949 47,806 Investment in distressed loans and foreclosed real estate (1,133 ) (1,133 ) Return of investments in distressed loans and foreclosed real estate 49,619 49,619 Dividends received intercompany 5,000 (5,000 ) — Investment paid intercompany (5,000 ) 5,000 — Intercompany advances 323,207 (14,733 ) (308,474 ) — Net cash provided by (used in) investing activities 323,207 (14,733 ) 2,385 5,826 (308,474 ) 8,211 Cash flow (used in) provided by financing activities: Debt issuance costs for senior notes (35 ) (35 ) Proceeds from loans payable 550,000 1,893,496 2,443,496 Debt issuance costs for loans payable (4,868 ) (4,868 ) Principal payments of loans payable (714,089 ) (1,783,496 ) (2,497,585 ) Proceeds from stock-based benefit plans 6,986 6,986 Excess tax benefits from stock-based compensation 2,114 2,114 Purchase of treasury stock (392,772 ) (392,772 ) Receipts related to noncontrolling interest 404 404 Dividends paid intercompany (5,000 ) 5,000 — Investment received intercompany 5,000 (5,000 ) — Intercompany advances (139,296 ) (189,019 ) 328,315 — Net cash (used in) provided by financing activities (383,672 ) (35 ) (308,253 ) (78,615 ) 328,315 (442,260 ) Net decrease in cash and cash equivalents — — (200,159 ) (85,119 ) — (285,278 ) Cash and cash equivalents, beginning of period — — 783,599 135,394 — 918,993 Cash and cash equivalents, end of period — — 583,440 50,275 — 633,715 Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2015 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities 45,366 2,156 100,487 (78,246 ) (9,581 ) 60,182 Cash flow (used in) provided by investing activities: Purchase of property and equipment — net (10,181 ) 734 (9,447 ) Sale and redemption of marketable securities 2,000 2,000 Investment in unconsolidated entities (4,552 ) (119,388 ) (123,940 ) Return of investments in unconsolidated entities 23,213 16,553 39,766 Investment in distressed loans and foreclosed real estate (2,624 ) (2,624 ) Return of investments in distressed loans and foreclosed real estate 37,625 37,625 Net increase in cash from purchase of joint venture interest 3,848 3,848 Intercompany advances (29,620 ) (48,981 ) 78,601 — Net cash (used in) provided by investing activities (29,620 ) (48,981 ) 14,328 (67,100 ) 78,601 (52,772 ) Cash flow provided by (used in) financing activities: Net proceeds from issuance of senior notes 350,000 350,000 Debt issuance costs for senior notes (3,175 ) (3,175 ) Proceeds from loans payable 400,000 1,554,432 1,954,432 Principal payments of loans payable (113,745 ) (1,545,713 ) (1,659,458 ) Redemption of senior notes (300,000 ) (300,000 ) Proceeds from stock-based benefit plans 39,514 39,514 Excess tax benefits from stock-based compensation 1,628 1,628 Purchase of treasury stock (56,888 ) (56,888 ) Payments related to noncontrolling interest (785 ) (785 ) Intercompany advances (73,185 ) 142,205 (69,020 ) — Net cash provided by (used in) financing activities (15,746 ) 46,825 213,070 150,139 (69,020 ) 325,268 Net increase in cash and cash equivalents — — 327,885 4,793 — 332,678 Cash and cash equivalents, beginning of period — — 455,714 130,601 — 586,315 Cash and cash equivalents, end of period — — 783,599 135,394 — 918,993 Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2014 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities 137,023 15,644 279,724 (102,540 ) (16,651 ) 313,200 Cash flow (used in) provided by investing activities: Purchase of property and equipment — net (13,161 ) (1,913 ) (15,074 ) Purchase of marketable securities — Sale and redemption of marketable securities 40,242 40,242 Investment in unconsolidated entities (16,683 ) (96,346 ) (113,029 ) Return of investments in unconsolidated entities 63,581 10,264 73,845 Investment in distressed loans and foreclosed real estate (2,089 ) (2,089 ) Return of investments in distressed loans and foreclosed real estate 53,130 53,130 Acquisition of a business (1,489,116 ) (1,489,116 ) Dividend received - intercompany 15,000 (15,000 ) — Intercompany advances (302,591 ) (342,945 ) 645,536 — Net cash used in investing activities (302,591 ) (342,945 ) (1,400,137 ) (36,954 ) 630,536 (1,452,091 ) Cash flow provided by (used in) financing activities: Proceeds from issuance of senior notes 600,000 600,000 Debt issuance costs for senior notes (4,739 ) (4,739 ) Proceeds from loans payable 1,156,300 1,073,071 2,229,371 Debt issuance costs for loans payable (3,063 ) (3,063 ) Principal payments of loans payable (704,320 ) (1,062,795 ) (1,767,115 ) Redemption of senior notes (267,960 ) (267,960 ) Net proceeds from issuance of common stock 220,365 220,365 Proceeds from stock-based benefit plans 28,364 28,364 Excess tax benefits from stock-based compensation 7,593 7,593 Purchase of treasury stock (90,754 ) (90,754 ) Receipts related to noncontrolling interest 172 172 Dividend paid - intercompany (15,000 ) 15,000 — Intercompany advances 457,108 171,777 (628,885 ) — Net cash provided by financing activities 165,568 327,301 906,025 167,225 (613,885 ) 952,234 Net (decrease) increase in cash and cash equivalents — — (214,388 ) 27,731 — (186,657 ) Cash and cash equivalents, beginning of period — — 670,102 102,870 — 772,972 Cash and cash equivalents, end of period — — 455,714 130,601 — 586,315 |
Summary Consolidated Quarterl44
Summary Consolidated Quarterly Financial Data (Unaudited) Summary Consolidated Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2016 | |
Summary Consolidated Quarterly Financial Data (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The table below provides summary income statement data for each quarter of fiscal 2016 and 2015 (amounts in thousands, except per share data): Three Months Ended October 31 July 31 April 30 January 31 Fiscal 2016: Revenue $ 1,855,451 $ 1,269,934 $ 1,115,557 $ 928,566 Gross profit (a) $ 285,684 $ 278,518 $ 244,986 $ 216,255 Income before income taxes $ 168,160 $ 163,653 $ 140,397 $ 116,817 Net income $ 114,378 $ 105,483 $ 89,054 $ 73,180 Income per share (b) Basic $ 0.70 $ 0.64 $ 0.53 $ 0.42 Diluted $ 0.67 $ 0.61 $ 0.51 $ 0.40 Weighted-average number of shares Basic 163,970 165,919 168,952 174,205 Diluted 171,683 173,405 176,414 182,391 Fiscal 2015: Revenue $ 1,437,202 $ 1,028,011 $ 852,583 $ 853,452 Gross profit (a) $ 320,870 $ 203,617 $ 174,071 $ 203,420 Income before income taxes $ 217,543 $ 107,464 $ 86,532 $ 124,023 Net income $ 147,163 $ 66,749 $ 67,930 $ 81,325 Income per share (b) Basic $ 0.83 $ 0.38 $ 0.38 $ 0.46 Diluted $ 0.80 $ 0.36 $ 0.37 $ 0.44 Weighted-average number of shares Basic 176,370 176,797 176,458 176,076 Diluted 184,736 185,133 184,838 184,107 (a) Gross profit in the fourth quarters of fiscal 2016 and 2015 include $121.2 million and $14.7 million , respectively, of warranty charges. See Note 6 – “Accrued Expenses” in Item 15(a)1 of this Form 10-K for additional information regarding these warranty charges. (b) Due to rounding, the sum of the quarterly earnings per share amounts may not equal the reported earnings per share for the year. |
Significant Accounting Polici45
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Entity Information [Line Items] | |||
Number of Operating Segments | 2 | ||
Additional Significant Accounting Policies (Textual) [Abstract] | |||
Number of geographic segments | 5 | ||
Number of years to complete a community | 4 years | ||
Number of years to complete a master planned community | 10 years | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 114,500 | $ 138,700 | |
Depreciation | 15,500 | 15,700 | $ 13,400 |
Advertising Expense | $ 23,100 | 18,200 | 15,600 |
warranty period, structural integrity | 10 years | ||
Construction defect claims, reported and resolved, period of time | 10 years | ||
More Likely Than Not Definition Threshold | 50.00% | ||
Gibraltar [Member] | |||
Entity Information [Line Items] | |||
Real Estate Acquired Through Foreclosure | $ 11,600 | 50,200 | |
Impairment of Real Estate | 1,201 | 767 | $ 1,358 |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Entity Information [Line Items] | |||
Real Estate Acquired Through Foreclosure | 1,500 | 1,700 | |
real estate held and used [Member] | |||
Entity Information [Line Items] | |||
Real Estate Acquired Through Foreclosure | $ 10,100 | $ 48,500 |
Significant Accounting Polici46
Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Receivables, prepaid expenses and other assets | ||
Expected recoveries from insurance carriers and suppliers | $ 165,696 | $ 8,314 |
Improvement cost receivable | 85,627 | 78,565 |
Escrow cash held by our captive title company | 138,633 | 24,609 |
Property held for rental development | 81,693 | 78,888 |
Investment in foreclosed real estate owned | 11,552 | 50,233 |
Prepaid expenses | 25,659 | 28,044 |
Other | 73,898 | 67,207 |
Receivables, prepaid expenses, and other assets | 582,758 | $ 335,860 |
Home Building Joint Venture Metro New York Four [Member] | ||
Receivables, prepaid expenses and other assets | ||
Escrow cash held by our captive title company | $ 106,100 |
Acquisition (Detail Textuals)
Acquisition (Detail Textuals) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2016USD ($)communitieshome_sites | Oct. 31, 2016USD ($)luxury_homes | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($)communitieshome_sites | Nov. 07, 2016USD ($)home_sites | Feb. 04, 2014USD ($)home_sites | |
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,489,116,000 | |||||
Number of Homes to be Delivered | luxury_homes | 4,685 | |||||
Sales Value of Outstanding Deliver Homes | $ 3,980,000,000 | |||||
Shapell [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | Feb. 4, 2014 | |||||
Business Acquisition, Name of Acquired Entity | Shapell Industries, Inc. | |||||
Business Acquisition, Date of Acquisition Agreement | Nov. 6, 2013 | |||||
Number of home sites included in acquisition | home_sites | 4,950 | |||||
Business acquisition, number of selling communities | communities | 11 | |||||
Number of Homes to be Delivered | home_sites | 126 | |||||
Sales Value of Outstanding Deliver Homes | $ 105,300,000 | |||||
Subsequent Event [Member] | Coleman Holdings LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Name of Acquired Entity | Coleman Real Estate Holdings, LLC | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 85,200,000 | |||||
Number of home sites included in acquisition | home_sites | 1,750 | |||||
Business acquisition, number of selling communities | communities | 15 | |||||
Number of Homes to be Delivered | home_sites | 128 | |||||
Sales Value of Outstanding Deliver Homes | $ 38,800,000 | |||||
Average Sales Price of Backlog | $ 303,000 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Total Inventory | ||
Inventory | $ 7,353,967 | $ 6,997,516 |
Land controlled for future communities [Member] | ||
Total Inventory | ||
Inventory | 71,729 | 75,214 |
Land Owned for Future Communities [Member] | ||
Total Inventory | ||
Inventory | 1,884,146 | 2,033,447 |
Operating communities [Member] | ||
Total Inventory | ||
Inventory | $ 5,398,092 | $ 4,888,855 |
Inventory (Details 1)
Inventory (Details 1) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016USD ($)communities | Oct. 31, 2015USD ($)communities | Oct. 31, 2014USD ($)communities | |
Temporarily Closed communities | |||
Inventory Write-down | $ 13,807 | $ 35,709 | $ 20,678 |
Land controlled for future communities [Member] | |||
Temporarily Closed communities | |||
Inventory Write-down | $ 3,142 | $ 809 | $ 3,123 |
Operating communities [Member] | |||
Temporarily Closed communities | |||
Number of Communities | communities | 3 | 11 | 9 |
Carrying Value | $ 8,523 | $ 63,668 | $ 42,092 |
Inventory Write-down | $ 8,365 | $ 22,300 | $ 17,555 |
Land Owned for Future Communities [Member] | |||
Temporarily Closed communities | |||
Number of Communities | communities | 18 | 15 | 16 |
Carrying Value | $ 123,936 | $ 119,138 | $ 122,015 |
Inventory Write-down | $ 2,300 | $ 12,600 |
Inventory (Details 2)
Inventory (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2012 | |
Inventory Disclosure [Abstract] | ||||
Interest capitalized, beginning of period | $ 373,128 | $ 356,180 | $ 343,077 | |
Interest incurred | 164,001 | 155,170 | 163,815 | |
Interest expensed to cost of revenues | (160,337) | (142,947) | (137,457) | |
Write-off against other income | (1,143) | (3,843) | (5,394) | |
Interest Reclassified to Property Construction and Office Equipment | (1,111) | |||
Capitalized interest on investments in unconsolidated entities | (5,818) | (7,467) | (9,672) | |
Previously capitalized interest in unconsolidated entities transferred to inventory | 699 | 16,035 | 1,811 | |
Interest capitalized, end of period | $ 369,419 | $ 373,128 | $ 356,180 |
Inventory (Details Textual)
Inventory (Details Textual) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | |
Inventory (Textual) [Abstract] | |||
Reclassification of inventory to property, construction and office equipment | $ 17,064 | $ 9,482 | |
Deferred income relcassed from inventory to accrued liabilities, non-cash | 2,111 | ||
Non cash transfer of investment in unconsolidated investments to inventory | $ 132,256 | $ 2,704 | |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of VIE Land Purchase Contracts | 78 | 61 | |
Aggregate purchase price of VIE lands | $ 987,265 | $ 663,600 | |
Deposits for purchase of lands with VIE entities | $ 44,130 | 45,000 | |
Home Building Joint Venture Metro New York [Member] | |||
Inventory (Textual) [Abstract] | |||
Non cash transfer of investment in unconsolidated investments to inventory | $ 132,256 |
Investments in Unconsolidated52
Investments in Unconsolidated Entities Investments in Unconsolidated Entities (Details 1) $ in Thousands | Oct. 31, 2016USD ($)joint_ventures | Oct. 31, 2015USD ($) |
Schedule of Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 26 | |
Investments in unconsolidated entities | $ | $ 496,411 | $ 412,860 |
Number of joint venture with funding commitments | joint_ventures | 12 | |
Other Commitment | $ | $ 273,812 | |
Land Development Joint Ventures [Member] | ||
Schedule of Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 7 | |
Investments in unconsolidated entities | $ | $ 223,483 | 214,060 |
Number of joint venture with funding commitments | joint_ventures | 5 | |
Home Building Joint Ventures, Total [Member] | ||
Schedule of Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 3 | |
Investments in unconsolidated entities | $ | $ 98,754 | 76,120 |
Number of joint venture with funding commitments | joint_ventures | 2 | |
Rental Property Joint Ventures, including Trust I [Member] | ||
Schedule of Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 12 | |
Investments in unconsolidated entities | $ | $ 153,640 | 110,454 |
Number of joint venture with funding commitments | joint_ventures | 4 | |
Gibraltar Joint Ventures [Member] | ||
Schedule of Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 4 | |
Investments in unconsolidated entities | $ | $ 20,534 | $ 12,226 |
Number of joint venture with funding commitments | joint_ventures | 1 | |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Land Development Joint Ventures [Member] | ||
Schedule of Investments [Line Items] | ||
Other Commitment | $ | $ 244,287 | |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Home Building Joint Ventures, Total [Member] | ||
Schedule of Investments [Line Items] | ||
Other Commitment | $ | 9,902 | |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Rental Property Joint Ventures, including Trust I [Member] | ||
Schedule of Investments [Line Items] | ||
Other Commitment | $ | 9,623 | |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Gibraltar Joint Ventures [Member] | ||
Schedule of Investments [Line Items] | ||
Other Commitment | $ | $ 10,000 |
Investments in Unconsolidated53
Investments in Unconsolidated Entities Investments in Unconsolidated Entities (Details 2) $ in Thousands | Oct. 31, 2016USD ($)joint_ventures |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures with loan commitments | joint_ventures | 16 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,459,519 |
Amounts borrowed under commitments | $ 1,159,789 |
Land Development Joint Ventures [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures with loan commitments | joint_ventures | 4 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 470,000 |
Amounts borrowed under commitments | $ 393,741 |
Home Building Joint Ventures, Total [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures with loan commitments | joint_ventures | 2 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 135,253 |
Amounts borrowed under commitments | $ 106,857 |
Rental Property Joint Ventures, including Trust I [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures with loan commitments | joint_ventures | 10 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 854,266 |
Amounts borrowed under commitments | $ 659,191 |
Investments in Unconsolidated54
Investments in Unconsolidated Entities (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 35 Months Ended | |||||||||||||||
Dec. 31, 2016USD ($) | Nov. 30, 2016 | Oct. 31, 2016USD ($)home_sitesrental_unitsjoint_ventures | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Oct. 31, 2016USD ($)home_sitesrental_unitsHomes_soldjoint_ventures | Oct. 31, 2015USD ($)home_sitesHomes_sold | Oct. 31, 2014USD ($) | Oct. 31, 2013USD ($) | Mar. 08, 2016USD ($) | Dec. 06, 2016USD ($) | Dec. 05, 2016USD ($) | Nov. 23, 2016USD ($) | Apr. 15, 2016USD ($) | |
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Income (loss) from unconsolidated entities | $ 40,748,000 | $ 21,119,000 | $ 41,141,000 | ||||||||||||||||
Equity Method Investment, Summarized Financial Information, Revenue | 374,815,000 | 248,795,000 | 232,770,000 | ||||||||||||||||
Investments in unconsolidated entities | $ 496,411,000 | $ 412,860,000 | 496,411,000 | 412,860,000 | |||||||||||||||
Home Building Revenue | 1,855,451,000 | $ 1,269,934,000 | $ 1,115,557,000 | $ 928,566,000 | 1,437,202,000 | $ 1,028,011,000 | $ 852,583,000 | $ 853,452,000 | 5,169,508,000 | 4,171,248,000 | 3,911,602,000 | ||||||||
Funding Commitments to Joint Ventures | 273,812,000 | 273,812,000 | |||||||||||||||||
Secured Debt | 122,570,000 | 151,702,000 | 122,570,000 | 151,702,000 | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,459,519,000 | 1,459,519,000 | |||||||||||||||||
Payments to Acquire Equity Method Investments | 69,655,000 | 123,940,000 | 113,029,000 | ||||||||||||||||
Amounts borrowed under commitments | 1,159,789,000 | 1,159,789,000 | |||||||||||||||||
Escrow cash held by our captive title company | $ 138,633,000 | 24,609,000 | 138,633,000 | 24,609,000 | |||||||||||||||
Land Sales | $ 85,268,000 | 183,870,000 | 242,931,000 | ||||||||||||||||
Retail Land Sales, Installment Method, Gross Profit, Deferred | |||||||||||||||||||
Number of Joint Ventures | joint_ventures | 26 | 26 | |||||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 15,287,000 | 19,459,000 | 43,973,000 | ||||||||||||||||
Land sales, net | 13,327,000 | 13,150,000 | 25,489,000 | ||||||||||||||||
Management Fees Revenue | $ 10,270,000 | $ 11,299,000 | 7,306,000 | ||||||||||||||||
Land Development Joint Venture, Irvine, California [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Number of Units in Real Estate Property | home_sites | 840 | 840 | |||||||||||||||||
Expected Percentage Of Homes To Be Sold To Each Joint Venture Partner | 50.00% | ||||||||||||||||||
Secured Debt | $ 320,000,000 | $ 320,000,000 | |||||||||||||||||
Home Building Joint Ventures, Total [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Home sites sold | Homes_sold | 115 | 96 | |||||||||||||||||
Equity Method Investment, Summarized Financial Information, Revenue | $ 78,100,000 | ||||||||||||||||||
Home Building Revenue | $ 164,900,000 | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 135,253,000 | 135,253,000 | |||||||||||||||||
Amounts borrowed under commitments | $ 106,857,000 | $ 106,857,000 | |||||||||||||||||
Rental Joint Ventures, including Trusts i and II [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Number of Real Estate Properties | joint_ventures | 11 | 11 | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 854,266,000 | $ 854,266,000 | |||||||||||||||||
Amounts borrowed under commitments | 659,191,000 | 659,191,000 | |||||||||||||||||
Rental Property Joint Ventures Metro Washington, D.C. [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Number of Units in Real Estate Property | 525 | ||||||||||||||||||
Home Building Joint Venture Metro New York Three [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 124,000,000 | 124,000,000 | |||||||||||||||||
Amounts borrowed under commitments | $ 83,000,000 | $ 83,000,000 | |||||||||||||||||
Toll Brothers Realty Trust [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Partners' Capital Account, Distributions | 36,000,000 | ||||||||||||||||||
Toll Brothers Realty Trust [Member] | Co-venturer [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Ownership Percentage | 33.30% | 33.30% | |||||||||||||||||
Toll Brothers Realty Trust [Member] | Management [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Ownership Percentage | 33.30% | 33.30% | |||||||||||||||||
Land Development Joint Ventures [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Income (loss) from unconsolidated entities | $ 15,772,000 | $ 12,005,000 | 1,190,000 | ||||||||||||||||
Home sites sold | home_sites | 776 | 1,015 | |||||||||||||||||
Equity Method Investment, Summarized Financial Information, Revenue | $ 142,015,000 | $ 128,889,000 | 136,949,000 | ||||||||||||||||
Investments in unconsolidated entities | $ 223,483,000 | $ 214,060,000 | $ 223,483,000 | $ 214,060,000 | |||||||||||||||
Number of Joint Ventures | joint_ventures | 7 | 7 | |||||||||||||||||
Land Development Joint Ventures [Member] | Equity Method Investee [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Home sites sold | home_sites | 207 | 376 | |||||||||||||||||
Equity Method Investment, Summarized Financial Information, Revenue | $ 64,200,000 | $ 56,200,000 | |||||||||||||||||
Equity Method Investment, Deferred Gain on Sale | 9,300,000 | $ 9,800,000 | |||||||||||||||||
Land Development Joint Ventures [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Funding Commitments to Joint Ventures | $ 244,287,000 | 244,287,000 | |||||||||||||||||
Land Development Joint Venture, Irvine, California [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Investments in unconsolidated entities | $ 85,300,000 | $ 85,300,000 | |||||||||||||||||
Ownership Percentage | 50.00% | 50.00% | |||||||||||||||||
Funding Commitments to Joint Ventures | $ 213,000,000 | $ 213,000,000 | |||||||||||||||||
Home Building Joint Venture Metro New York Three [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Investments in unconsolidated entities | 19,800,000 | 19,800,000 | |||||||||||||||||
Ownership Percentage | 25.00% | 25.00% | |||||||||||||||||
Payments to Acquire Interest in Joint Venture | $ 15,900,000 | ||||||||||||||||||
Land Sales | 78,500,000 | ||||||||||||||||||
Retail Land Sales, Installment Method, Gross Profit, Deferred | 9,260,000 | ||||||||||||||||||
Deferred Revenue, Revenue Recognized | 1,546,000 | ||||||||||||||||||
Home Building Joint Venture Metro New York Four [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Escrow cash held by our captive title company | 106,100,000 | 106,100,000 | |||||||||||||||||
Rental Property Joint Ventures Metro Washington, D.C. [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Investments in unconsolidated entities | 24,500,000 | 24,500,000 | |||||||||||||||||
Land Sales | 38,100,000 | ||||||||||||||||||
Retail Land Sales, Installment Method, Gross Profit, Deferred | 2,999,000 | ||||||||||||||||||
Payments to Acquire and Develop Real Estate | $ 35,100,000 | ||||||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 18,700,000 | ||||||||||||||||||
Land sales, net | $ 3,000,000 | ||||||||||||||||||
Rental Property Joint Ventures Metro Washington, D.C. [Member] | Co-venturer [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Ownership Percentage | 50.00% | 50.00% | |||||||||||||||||
Land Sales | $ 20,200,000 | ||||||||||||||||||
Rental Property Joint Ventures Metro Washington, D.C. [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Funding Commitments to Joint Ventures | $ 4,800,000 | 4,800,000 | |||||||||||||||||
Rental Property Joint Venture Boston Suburb [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Investments in unconsolidated entities | $ 7,900,000 | $ 7,900,000 | |||||||||||||||||
Number of Units in Real Estate Property | rental_units | 390 | 390 | |||||||||||||||||
Ownership Percentage | 25.00% | 25.00% | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 91,000,000 | $ 91,000,000 | |||||||||||||||||
Amounts borrowed under commitments | 0 | 0 | |||||||||||||||||
Rental Property Joint Venture Boston Suburb [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Funding Commitments to Joint Ventures | 3,000,000 | 3,000,000 | |||||||||||||||||
Toll Brothers Realty Trust [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Income (loss) from unconsolidated entities | 3,500,000 | $ 12,000,000 | |||||||||||||||||
Investments in unconsolidated entities | $ 0 | $ 0 | |||||||||||||||||
Ownership Percentage | 33.30% | 33.30% | |||||||||||||||||
Management Fees Revenue | $ 1,600,000 | 2,200,000 | $ 2,300,000 | ||||||||||||||||
Partners' Capital Account, Distributions | $ 6,100,000 | ||||||||||||||||||
Gibraltar Land Banking & Development Joint Ventures [Member] [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Investments in unconsolidated entities | $ 8,800,000 | $ 8,800,000 | |||||||||||||||||
Ownership Percentage | 25.00% | 25.00% | |||||||||||||||||
Number of Joint Ventures | joint_ventures | 2 | 2 | |||||||||||||||||
Gibraltar Land Banking & Development Joint Ventures [Member] [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Funding Commitments to Joint Ventures | $ 100,000,000 | $ 100,000,000 | |||||||||||||||||
Gibraltar Legacy Assets Joint Venture [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Investments in unconsolidated entities | $ 5,700,000 | $ 5,700,000 | |||||||||||||||||
Ownership Percentage | 24.00% | 24.00% | |||||||||||||||||
Gains (Losses) on Sales of Other Real Estate | $ 1,300,000 | ||||||||||||||||||
Real Estate Owned & Distressed Loans, Sales | $ 24,100,000 | ||||||||||||||||||
Gibraltar Legacy Assets Joint Venture [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Funding Commitments to Joint Ventures | $ 10,000,000 | $ 10,000,000 | |||||||||||||||||
Subsequent Event [Member] | Land Development Joint Venture, Irvine, California [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | ||||||||||||||||||
Payments to Acquire Equity Method Investments | $ 80,000,000 | ||||||||||||||||||
Subsequent Event [Member] | Home Building Joint Venture Metro New York Four [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 236,500,000 | ||||||||||||||||||
Amounts borrowed under commitments | 59,800,000 | ||||||||||||||||||
Land Sales | $ 176,000,000 | ||||||||||||||||||
Subsequent Event [Member] | Land Development Joint Venture, Irvine, California [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Maxiumum guarantor obigation for borrowings by JVs | $ 200,000,000 | ||||||||||||||||||
Guarantee funding percentage | 50.00% | ||||||||||||||||||
Subsequent Event [Member] | Home Building Joint Venture Metro New York Four [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Investments in unconsolidated entities | $ 27,800,000 | ||||||||||||||||||
Ownership Percentage | 20.00% | ||||||||||||||||||
Maxiumum guarantor obigation for borrowings by JVs | $ 236,500,000 | ||||||||||||||||||
Land Sales | $ 148,000,000 | ||||||||||||||||||
Subsequent Event [Member] | Rental Property Joint Ventures Metro Washington, D.C. [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Guarantee funding percentage | 50.00% | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 130,600,000 | ||||||||||||||||||
Subsequent Event [Member] | Rental Property Joint Venture Boston Suburb [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Maxiumum guarantor obigation for borrowings by JVs | $ 130,600,000 | ||||||||||||||||||
In Planning Phase [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Number of Units in Real Estate Property | rental_units | 4,750 | 4,750 | |||||||||||||||||
In Planning Phase [Member] | Rental Joint Ventures, including Trusts i and II [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Number of Units in Real Estate Property | rental_units | 400 | 400 | |||||||||||||||||
Lease up Stage [Member] | Rental Joint Ventures, including Trusts i and II [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Number of Units in Real Estate Property | rental_units | 600 | 600 | |||||||||||||||||
Occupied or Ready for Occupancy [Member] | Rental Joint Ventures, including Trusts i and II [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Number of Units in Real Estate Property | rental_units | 2,950 | 2,950 | |||||||||||||||||
Asset under Construction [Member] | Rental Joint Ventures, including Trusts i and II [Member] | |||||||||||||||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||||||||||||||||||
Number of Units in Real Estate Property | rental_units | 900 | 900 |
Investments in Unconsolidated55
Investments in Unconsolidated Entities Investments in Unconsolidated Entities (Details Textual 2) $ in Thousands | 12 Months Ended | |
Oct. 31, 2016USD ($)joint_ventures | Oct. 31, 2015USD ($)joint_ventures | |
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Amounts borrowed under commitments | $ 1,159,789 | |
Investments in unconsolidated entities | 496,411 | $ 412,860 |
Other Commitment | 273,812 | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,459,519 | |
Equity Method Investee [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Guarantees, Fair Value Disclosure | 4,800 | |
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 875,700 | |
Amounts borrowed under commitments | 576,000 | |
Maxiumum guarantor obigation for borrowings by JVs | 576,000 | |
Maximum repapyment and carry cost guarantee obligation for borrowings by JV | 61,500 | |
Line of Credit Facility, Maximum Borrowing Capacity | 875,700 | |
Guarantees, Repayment and Carry Cost, Maximum | $ 87,000 | |
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Minimum [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Guarantor Obligations, Term | P1M | |
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Maximum [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Guarantor Obligations, Term | P48M | |
Ground Lease and Insurance Deductible Guarantee Member [Member] | Equity Method Investee [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 4,300 | |
Number of JVs, ground lease and other | 3 | |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | Equity Method Investee [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Number Of Unconsolidated Entities That Are Considered Variable Interest Entities | joint_ventures | 3 | 1 |
Investments in unconsolidated entities | $ 16,400 | $ 6,700 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 70,000 | 89,800 |
Maximum repapyment and carry cost guarantee obligation for borrowings by JV | 14,300 | 14,300 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Ventures [Member] | Equity Method Investee [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Other Commitment | $ 1,400 | $ 400 |
Investments in Unconsolidated56
Investments in Unconsolidated Entities (Details 4) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Condensed Balance Sheets: | ||
Cash and cash equivalents | $ 130,794 | $ 95,263 |
Inventory | 1,074,888 | 1,024,157 |
Non-performing loan portfolio | 4,298 | 27,572 |
Rental properties | 621,615 | 278,897 |
Rental properties under development | 302,632 | 390,399 |
Real estate owned | 87,226 | 117,758 |
Other assets | 175,805 | 224,617 |
Total assets | 2,397,258 | 2,158,663 |
Debt | 1,164,883 | 1,127,121 |
Other liabilities | 152,881 | 130,315 |
Members' equity | 980,354 | 806,327 |
Noncontrolling interest | 99,140 | 94,900 |
Total liabilities and equity | 2,397,258 | 2,158,663 |
Investments in unconsolidated entities | 496,411 | 412,860 |
Restricted Cash and Cash Equivalents | 16,795 | |
Land Development Joint Ventures [Member] | ||
Condensed Balance Sheets: | ||
Cash and cash equivalents | 38,466 | 29,281 |
Inventory | 719,732 | 701,527 |
Non-performing loan portfolio | ||
Rental properties | ||
Rental properties under development | ||
Real estate owned | ||
Other assets | 76,518 | 70,799 |
Total assets | 834,716 | 801,607 |
Debt | 394,813 | 417,025 |
Other liabilities | 38,769 | 29,772 |
Members' equity | 401,134 | 354,810 |
Noncontrolling interest | ||
Total liabilities and equity | 834,716 | 801,607 |
Investments in unconsolidated entities | 223,483 | 214,060 |
Home Building Joint Ventures, Total [Member] | ||
Condensed Balance Sheets: | ||
Cash and cash equivalents | 12,820 | 11,203 |
Inventory | 345,588 | 322,630 |
Non-performing loan portfolio | ||
Rental properties | ||
Rental properties under development | ||
Real estate owned | ||
Other assets | 82,794 | 61,144 |
Total assets | 441,202 | 394,977 |
Debt | 110,879 | 117,251 |
Other liabilities | 75,419 | 70,078 |
Members' equity | 254,904 | 207,648 |
Noncontrolling interest | ||
Total liabilities and equity | 441,202 | 394,977 |
Investments in unconsolidated entities | 98,754 | 76,120 |
Rental Property Joint Ventures, including Trust I [Member] | ||
Condensed Balance Sheets: | ||
Cash and cash equivalents | 29,103 | 44,310 |
Inventory | ||
Non-performing loan portfolio | ||
Rental properties | 621,615 | 278,897 |
Rental properties under development | 302,632 | 390,399 |
Real estate owned | ||
Other assets | 14,574 | 12,199 |
Total assets | 967,924 | 725,805 |
Debt | 659,191 | 514,895 |
Other liabilities | 35,303 | 30,329 |
Members' equity | 273,430 | 180,581 |
Noncontrolling interest | ||
Total liabilities and equity | 967,924 | 725,805 |
Investments in unconsolidated entities | 153,640 | 110,454 |
Gibraltar Joint Ventures [Member] | ||
Condensed Balance Sheets: | ||
Cash and cash equivalents | 50,405 | 10,469 |
Inventory | 9,568 | |
Non-performing loan portfolio | 4,298 | 27,572 |
Rental properties | ||
Rental properties under development | ||
Real estate owned | 87,226 | 117,758 |
Other assets | 1,919 | 80,475 |
Total assets | 153,416 | 236,274 |
Debt | 77,950 | |
Other liabilities | 3,390 | 136 |
Members' equity | 50,886 | 63,288 |
Noncontrolling interest | 99,140 | 94,900 |
Total liabilities and equity | 153,416 | 236,274 |
Investments in unconsolidated entities | $ 20,534 | 12,226 |
Restricted Cash and Cash Equivalents | $ 78,000 |
Investments in Unconsolidated57
Investments in Unconsolidated Entities (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Condensed Statements of Operations: | |||
Revenues | $ 374,815 | $ 248,795 | $ 232,770 |
Cost of revenues | 236,525 | 159,855 | 155,251 |
Other expenses | 44,850 | 33,620 | 42,483 |
Total expenses | 281,375 | 193,475 | 197,734 |
Gain on disposition of loans and REO | 49,579 | 42,939 | 30,420 |
Income (loss) from operations | 143,019 | 98,259 | 65,456 |
Other income (expense) | 5,294 | 8,287 | 49,225 |
Net income (loss) before noncontrolling interest | 148,313 | 106,546 | 114,681 |
Less: Net income attributable to noncontrolling interest | (18,218) | (19,928) | (15,496) |
Net income (loss) | 130,095 | 86,618 | 99,185 |
Other comprehensive income | 100 | 52 | 728 |
Total comprehensive income (loss) | 130,195 | 86,670 | 99,913 |
Income (loss) from unconsolidated entities | 40,748 | 21,119 | 41,141 |
Land Development Joint Ventures [Member] | |||
Condensed Statements of Operations: | |||
Revenues | 142,015 | 128,889 | 136,949 |
Cost of revenues | 63,429 | 58,435 | 73,628 |
Other expenses | 3,904 | 1,999 | 730 |
Total expenses | 67,333 | 60,434 | 74,358 |
Gain on disposition of loans and REO | |||
Income (loss) from operations | 74,682 | 68,455 | 62,591 |
Other income (expense) | 3,464 | 615 | 66 |
Net income (loss) before noncontrolling interest | 78,146 | 69,070 | 62,657 |
Less: Net income attributable to noncontrolling interest | |||
Net income (loss) | 78,146 | 69,070 | 62,657 |
Other comprehensive income | |||
Total comprehensive income (loss) | 78,146 | 69,070 | 62,657 |
Income (loss) from unconsolidated entities | 15,772 | 12,005 | 1,190 |
Home Building Joint Ventures, Total [Member] | |||
Condensed Statements of Operations: | |||
Revenues | 168,164 | 78,072 | 54,923 |
Cost of revenues | 118,621 | 69,142 | 53,221 |
Other expenses | 8,124 | 6,135 | 5,165 |
Total expenses | 126,745 | 75,277 | 58,386 |
Gain on disposition of loans and REO | |||
Income (loss) from operations | 41,419 | 2,795 | (3,463) |
Other income (expense) | (486) | 1,072 | 105 |
Net income (loss) before noncontrolling interest | 40,933 | 3,867 | (3,358) |
Less: Net income attributable to noncontrolling interest | |||
Net income (loss) | 40,933 | 3,867 | (3,358) |
Other comprehensive income | |||
Total comprehensive income (loss) | 40,933 | 3,867 | (3,358) |
Income (loss) from unconsolidated entities | 16,945 | 3,448 | (2,034) |
Rental Property Joint Ventures, including Trust I [Member] | |||
Condensed Statements of Operations: | |||
Revenues | 58,707 | 35,732 | 32,875 |
Cost of revenues | 29,791 | 15,539 | 14,250 |
Other expenses | 30,779 | 24,174 | 35,003 |
Total expenses | 60,570 | 39,713 | 49,253 |
Gain on disposition of loans and REO | |||
Income (loss) from operations | (1,863) | (3,981) | (16,378) |
Other income (expense) | 1,144 | 4,376 | 45,933 |
Net income (loss) before noncontrolling interest | (719) | 395 | 29,555 |
Less: Net income attributable to noncontrolling interest | |||
Net income (loss) | (719) | 395 | 29,555 |
Other comprehensive income | 100 | 52 | 728 |
Total comprehensive income (loss) | (619) | 447 | 30,283 |
Income (loss) from unconsolidated entities | 5,721 | 3,027 | 40,081 |
Gibraltar Joint Ventures [Member] | |||
Condensed Statements of Operations: | |||
Revenues | 5,929 | 6,102 | 8,023 |
Cost of revenues | 24,684 | 16,739 | 14,152 |
Other expenses | 2,043 | 1,312 | 1,585 |
Total expenses | 26,727 | 18,051 | 15,737 |
Gain on disposition of loans and REO | 49,579 | 42,939 | 30,420 |
Income (loss) from operations | 28,781 | 30,990 | 22,706 |
Other income (expense) | 1,172 | 2,224 | 3,121 |
Net income (loss) before noncontrolling interest | 29,953 | 33,214 | 25,827 |
Less: Net income attributable to noncontrolling interest | (18,218) | (19,928) | (15,496) |
Net income (loss) | 11,735 | 13,286 | 10,331 |
Other comprehensive income | |||
Total comprehensive income (loss) | 11,735 | 13,286 | 10,331 |
Income (loss) from unconsolidated entities | $ 2,310 | $ 2,639 | $ 1,904 |
Loans Payable, Senior Notes, 58
Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable (Details) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 1,159,789 | |
Other Loans Payable | 122,809 | $ 151,702 |
Loans payable | 871,079 | 1,000,439 |
May 2016 Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 250,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 350,000 | |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Long-term Debt, Noncurrent | 500,000 | 500,000 |
Deferred Finance Costs, Net | $ (1,730) | $ (1,263) |
Loans Payable, Senior Notes, 59
Loans Payable, Senior Notes, and Mortgage Company Loan Facility Term Loan Facility (Detail Textuals 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Apr. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2016 | |
Five year term note [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 5 years | ||
Proceeds from Bank Debt | $ 485 | $ 15 | |
Debt Instrument, Interest Rate, Effective Percentage | 1.93% | ||
Guarantor Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Loans Payable, Senior Notes, 60
Loans Payable, Senior Notes, and Mortgage Company Loan Facility Credit Facility (Details Textual 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2016 | May 19, 2016 | Oct. 31, 2015 | Aug. 01, 2013 | |
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,459,519 | |||
Long-term line of credit | $ 1,159,789 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,035,000 | |||
Line of Credit Facility, term of contract | 5 years | |||
Line of Credit Facility, Expiration Date | Aug. 1, 2018 | |||
Long-term line of credit | $ 350,000 | |||
May 2016 Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,295,000 | $ 1,215,000 | ||
Line of Credit Facility, term of contract | 5 years | |||
Line of credit facility, available for letters of credit | 50.00% | |||
Line of Credit Facility Contingent Increase To Maximum Borrowing Capacity | $ 2,000,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.03% | |||
Maximum Permissible Leverage Ratio | 175.00% | |||
Minimum Net Worth Required for Compliance | $ 2,600,000 | |||
Existing Leverage Ratio | .7141 | |||
Tangible Net Worth | $ 4,180,000 | |||
Ability to repurchase common stock | 2,130,000 | |||
Long-term line of credit | 250,000 | |||
Letters of Credit Outstanding, Amount | $ 83,200 | |||
Guarantor Subsidiaries [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Subsidiary of Company, Ownership Percentage by Parent | 100.00% |
Loans Payable, Senior Notes, 61
Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable - other (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Sep. 05, 2012 | |
Debt Instrument [Line Items] | |||
Other Loans Payable | $ 122,809 | $ 151,702 | |
Debt, Weighted Average Interest Rate | 3.99% | 3.78% | |
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | ||
Loans secured by assets [Abstract] | |||
Secured Debt | $ 122,570 | $ 151,702 | |
Value of Assets Securing Loans | $ 461,162 | $ 378,864 | |
Loans Payable Contractual Maturities Term Minimum | 3 months | ||
Loans Payable Contractual Maturities Term Maximum | 30 years | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.78% | 0.15% | |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.87% | 7.87% |
Loans Payable, Senior Notes, 62
Loans Payable, Senior Notes, and Mortgage Company Loan Facility Senior Notes (Details 3) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 30, 2015 | Nov. 13, 2013 | Nov. 12, 2013 | Sep. 05, 2012 |
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | |||||
Senior notes | $ 2,694,372 | $ 2,689,801 | ||||
8.91% Senior Notes due 2017 [Member] | ||||||
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.91% | |||||
Senior notes | $ 400,000 | 400,000 | ||||
4.0% Senior Notes due 2018 [Member] | ||||||
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | ||||
Senior notes | $ 350,000 | 350,000 | ||||
6.75% Senior Notes due 2019 [Member] | ||||||
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||||
Senior notes | $ 250,000 | 250,000 | ||||
5.875 % senior notes due 2022 [Member] | ||||||
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | |||||
Senior notes | $ 419,876 | 419,876 | ||||
4.375% Senior Notes due 2023 [Member] | ||||||
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.375% | |||||
Senior notes | $ 400,000 | 400,000 | ||||
5.625% Senior notes due 2024 [Member] | ||||||
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | ||||
Senior notes | $ 250,000 | 250,000 | ||||
4.875% Senior Notes Due 2025 [Member] | ||||||
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | ||||
Senior notes | $ 350,000 | 350,000 | $ 350,000 | |||
0.5% Exchangeable Senior Notes Due 2032 [Member] | ||||||
Senior Notes [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 0.50% | ||||
Senior notes | $ 287,500 | 287,500 | ||||
Senior Notes [Member] | ||||||
Senior Notes [Abstract] | ||||||
Deferred Finance Costs, Net | $ (13,004) | $ (17,575) |
Loans Payable, Senior Notes, 63
Loans Payable, Senior Notes, and Mortgage Company Loan Facility Senior Notes (Details Textual 3) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2012 | Oct. 31, 2016 | Jul. 31, 2015 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 30, 2015 | Nov. 13, 2013 | Nov. 12, 2013 | Sep. 05, 2012 | Jun. 02, 2005 | Mar. 16, 2004 | |
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Percentage of Holding In Subsidiary | 100.00% | 100.00% | ||||||||||||
Interest rate on notes | 0.50% | |||||||||||||
Additional common share if convertible debt exchanged | 5,900,000 | |||||||||||||
Issued Senior Notes | $ 2,694,372,000 | $ 2,694,372,000 | $ 2,689,801,000 | |||||||||||
Proceeds from issuance of senior notes | 350,000,000 | $ 600,000,000 | ||||||||||||
Repayments of Senior Debt | 300,000,000 | 267,960,000 | ||||||||||||
0.5% Exchangeable Senior Notes Due 2032 [Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Interest rate on notes | 0.50% | 0.50% | 0.50% | |||||||||||
Debt Conversion, Convertible, number of shares issued per note exchanged | 20.3749 | |||||||||||||
PrincipalAmountDenomination | $ 1,000 | |||||||||||||
Debt Instrument, Convertible, Conversion Price | $ 49.08 | |||||||||||||
Additional common share if convertible debt exchanged | 5,900,000 | |||||||||||||
Issued Senior Notes | $ 287,500,000 | $ 287,500,000 | 287,500,000 | |||||||||||
4.875% Senior Notes Due 2025 [Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Interest rate on notes | 4.875% | 4.875% | 4.875% | |||||||||||
Issued Senior Notes | $ 350,000,000 | $ 350,000,000 | 350,000,000 | $ 350,000,000 | ||||||||||
Proceeds from Debt, Net of Issuance Costs | $ 347,700,000 | |||||||||||||
5.15% Senior Notes due 2015 [Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Interest rate on notes | 5.15% | |||||||||||||
Repayments of Senior Debt | $ 300,000,000 | |||||||||||||
4.95% Senior Notes due 2014 [Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Interest rate on notes | 4.95% | |||||||||||||
Repayments of Senior Debt | $ 268,000,000 | |||||||||||||
4.0% Senior Notes due 2018 [Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Interest rate on notes | 4.00% | 4.00% | 4.00% | |||||||||||
Issued Senior Notes | $ 350,000,000 | $ 350,000,000 | 350,000,000 | |||||||||||
Proceeds from Debt, Net of Issuance Costs | 596,200,000 | |||||||||||||
Proceeds from issuance of senior notes | $ 350,000,000 | |||||||||||||
5.625% Senior notes due 2024 (Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Interest rate on notes | 5.625% | 5.625% | 5.625% | |||||||||||
Issued Senior Notes | $ 250,000,000 | $ 250,000,000 | 250,000,000 | |||||||||||
Proceeds from issuance of senior notes | $ 250,000,000 | |||||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | ||||||||||||
Issued Senior Notes | ||||||||||||||
Proceeds from issuance of senior notes | ||||||||||||||
Repayments of Senior Debt | ||||||||||||||
Sept2012HoldersofDebtInstrument [Member] | 0.5% Exchangeable Senior Notes Due 2032 [Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | Holders of the 0.5% Exchangeable Senior Notes have the right to require Toll Brothers Finance Corp. to repurchase their notes for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on each of December 15, 2017; September 15, 2022; and September 15, 2027. | |||||||||||||
Sept2012CompanyConversionRighttoDebtInstrument [Member] | 0.5% Exchangeable Senior Notes Due 2032 [Member] | ||||||||||||||
Senior Note Payable (Textual) [Abstract] | ||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | Toll Brothers Finance Corp. will have the right to redeem the 0.5% Senior Notes on or after September 15, 2017, for cash equal to 100% of their principal amount, plus accrued but unpaid interest. |
Loans Payable, Senior Notes, 64
Loans Payable, Senior Notes, and Mortgage Company Loan Facility Mortgage Company Loan Facility (Details Textual 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Sep. 05, 2012 | |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,459,519 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | ||
Mortgage company loan facility | 210,000 | $ 100,000 | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 248,601 | 123,175 | |
Warehouse Agreement Borrowings [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | 150,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 210,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.53% | ||
Mortgage company loan facility | $ 210,000 | 100,000 | |
Aggregate Outstanding Purchase Price Limitations | 0 | ||
Obligation to Repurchase Receivables Sold [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | 85,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | Warehouse Agreement Borrowings [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest Rate on Loan Commitments in Addition to Libor | 2.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Obligation to Repurchase Receivables Sold [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest Rate on Loan Commitments in Addition to Libor | 2.00% | ||
Securities Pledged as Collateral [Member] | Warehouse Agreement Borrowings [Member] | |||
Line of Credit Facility [Line Items] | |||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 231,400 | $ 115,900 | |
Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.78% | 0.15% | |
Minimum [Member] | Obligation to Repurchase Receivables Sold [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% |
Loans Payable, Senior Notes, 65
Loans Payable, Senior Notes, and Mortgage Company Loan Facility (Details 4) $ in Thousands | Oct. 31, 2016USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 637,329 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 305,543 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 373,122 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 253,914 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 751,983 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Accrued expenses | ||||
Land, land development and construction | $ 153,264 | $ 118,634 | ||
Compensation and employee benefits | 138,282 | 125,045 | ||
Deposit Liability, Current | 137,396 | 24,023 | ||
Self-insurance | 126,431 | 113,727 | ||
Warranty | 370,992 | 93,083 | $ 86,282 | $ 43,819 |
Deferred Revenue | 43,488 | 43,059 | ||
Interest | 34,903 | 26,926 | ||
Commitments to unconsolidated entities | 5,637 | 5,534 | ||
Other | 61,907 | 58,035 | ||
Accrued expenses, Total | $ 1,072,300 | $ 608,066 |
Accrued Expenses Product Liabil
Accrued Expenses Product Liability Contingency (Detail Textuals) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2016USD ($)communities | Oct. 31, 2015USD ($)communities | Oct. 31, 2014USD ($) | |
Water intrusion related [Member] | |||||||
Product Warranty Liability [Line Items] | |||||||
Loss Contingency, Estimate of Possible Loss | $ 324.4 | $ 324.4 | |||||
Product Liability Contingency, percent of known claims | 33.00% | 33.00% | |||||
Product Liability Accrual, Period Expense | $ 121.2 | $ 125.6 | |||||
Stucco Related [Member] | |||||||
Product Warranty Liability [Line Items] | |||||||
Loss Contingency, Estimate of Possible Loss | $ 80.3 | $ 80.3 | $ 54 | ||||
Product Liability Contingency, Third Party Recovery | $ 32.6 | 21.5 | |||||
Product Liability Accrual, Period Expense | $ 1.9 | $ 2.5 | $ 14.7 | $ 25 | |||
Non-stucco related [Member] | |||||||
Product Warranty Liability [Line Items] | |||||||
Loss Contingency, Estimate of Possible Loss | 115.5 | 115.5 | |||||
Product Liability Contingency, Third Party Recovery | $ 152.6 | ||||||
Construction Claims, Three Community Associations, California [Member] | |||||||
Product Warranty Liability [Line Items] | |||||||
Loss Contingency, New Claims Filed, Number | communities | 3 | ||||||
Loss Contingency, Claims Settled, Number | communities | 1 | 1 | |||||
Loss Contingency, Loss in Period | $ 6.9 | ||||||
Other warranty claims [Member] | |||||||
Product Warranty Liability [Line Items] | |||||||
Product Liability Accrual, Period Expense | $ 9.3 | ||||||
Other Assets [Member] | |||||||
Product Warranty Liability [Line Items] | |||||||
Loss Contingency, Receivable | 159 | 159 | |||||
Other Assets [Member] | Stucco Related [Member] | |||||||
Product Warranty Liability [Line Items] | |||||||
Loss Contingency, Receivable | 141.7 | 141.7 | |||||
Other Assets [Member] | Other warranty claims [Member] | |||||||
Product Warranty Liability [Line Items] | |||||||
Loss Contingency, Receivable | $ 17.3 | $ 17.3 |
Accrued Expenses (Details 1)
Accrued Expenses (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Changes in the warranty accrual | |||
Balance, beginning of year | $ 93,083 | $ 86,282 | $ 43,819 |
Additions - homes closed during the year | 28,927 | 20,934 | 18,588 |
Addition - liabilities acquired | 11,044 | ||
Reclassification from self-insurance accruals | 7,554 | ||
Charges incurred | (44,965) | (31,479) | (22,586) |
Balance, end of year | 370,992 | 93,083 | 86,282 |
Warranty change, homes closed in prior period, other [Member] | |||
Changes in the warranty accrual | |||
Increase (decrease) to accruals for homes closed in prior periods | 26,689 | 2,661 | 2,913 |
Stucco Related [Member] | |||
Changes in the warranty accrual | |||
Increase (decrease) to accruals for homes closed in prior periods | $ 267,258 | $ 14,685 | $ 24,950 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Reconciliation of Company's effective tax rate from federal statutory rate | |||
Federal tax provision at statutory rate | $ 206,159 | $ 187,447 | $ 176,604 |
State tax provision, net of federal benefit | 26,970 | 21,947 | 23,778 |
Domestic production activities deduction | (16,874) | (12,284) | (14,796) |
Other permanent differences | (7,037) | (7,821) | (6,214) |
Reversal of accrual for uncertain tax positions | (11,177) | (15,331) | (11,022) |
Accrued interest on anticipated tax assessments | 1,964 | 2,588 | 1,847 |
Increase in unrecognized tax benefits | 2,052 | 3,214 | 5,694 |
Valuation allowance - recognized | 1,018 | 3,681 | 1,328 |
Valuation allowance - reversed | 0 | (16,323) | (13,256) |
Other | 3,857 | 5,277 | 587 |
Income tax provision | $ 206,932 | $ 172,395 | $ 164,550 |
Federal tax provision at statutory rate, percentage | 35.00% | 35.00% | 35.00% |
State tax provision, net of federal benefit, percentage | 4.60% | 4.10% | 4.70% |
Domestic production activities deduction, Percent | (2.90%) | (2.30%) | (2.90%) |
Other permanent differences, Percent | (1.20%) | (1.50%) | (1.20%) |
Reversal of accrual for uncertain tax positions, percent | (1.90%) | (2.90%) | (2.20%) |
Accrued interest on anticipated tax assessments, percentage | 0.30% | 0.50% | 0.40% |
Increase in unrecognized tax benefits, percentage | 0.30% | 0.60% | 1.10% |
Valuation allowance - recognized, percentage | 0.20% | 0.70% | 0.30% |
Valuation allowance - reversed, percentage | 0.00% | (3.00%) | (2.60%) |
Other, percentage | 0.70% | 1.00% | 0.10% |
Income tax provision, percentage | 35.10% | 32.20% | 32.60% |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Income Tax Expense, Continuing Operations, by Jurisdiction [Abstract] | |||
Federal Income Tax Expense, Continuing Operations | $ 189,170 | $ 181,819 | $ 163,089 |
State and Local Income Tax Expense (Benefit), Continuing Operations | 17,762 | (9,424) | 1,461 |
Current Income Tax Expense | 186,662 | 122,953 | 129,047 |
Deferred Income Tax Expense | 20,270 | 49,442 | 35,503 |
Income tax provision | $ 206,932 | $ 172,395 | $ 164,550 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Reconciliation of change in gross unrecognized tax benefits | |||
Balance, beginning of period | $ 51,889 | $ 58,318 | $ 78,105 |
Increase in benefit as a result of tax positions taken in prior years | 8,110 | 16,802 | 10,314 |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 694 | 9,005 | 442 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (28,976) | (31,013) | |
Decrease in benefit as a result of completion of tax audits | (1,222) | ||
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (1,445) | (1,223) | (29,321) |
Balance, end of period | $ 30,272 | $ 51,889 | $ 58,318 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Tax Benefits potential Interest and Penalties | |||
Tax Benefits potential Interest and Penalties | $ 3,426 | $ 4,454 | $ 9,694 |
Tax Benefit Amount Accrued for potential Interest and Penalties | |||
Tax Benefit Amount Accrued for potential Interest and Penalties | $ 9,282 | $ 17,012 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred Tax Assets Accrued Expenses | $ 103,134 | $ 72,426 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Impairment Losses | 113,950 | 130,709 |
Deferred Tax Assets, Inventory | 78,483 | 67,610 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 49,004 | 54,768 |
Deferred Tax Asset Unrecognized Tax Benefits | 8,345 | 25,267 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 50,031 | 53,103 |
Deferred Tax Assets, Other | 6,329 | 7,410 |
Deferred Tax Assets, Gross | 409,276 | 411,293 |
Deferred Tax Liabilities, Deferred Expense, Capitalized Interest | 85,873 | 107,970 |
Deferred Tax Liabilities, Tax Deferred Income | 52,406 | 17,661 |
Deferred tax liability, expenses taken for tax not for book | 47,045 | 37,868 |
Deferred Tax Liabilities, Property, Plant and Equipment | 5,440 | 3,819 |
Deferred Tax Liabilities Marketing | 18,945 | 14,384 |
Deferred Tax Liabilities, Gross | 209,709 | 181,702 |
Deferred Tax Assets Liabilities Gross | 199,567 | 229,591 |
Deferred Tax Assets, Net | 167,413 | 198,455 |
State and Local Jurisdiction [Member] | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ (32,154) | $ (31,136) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | |
Income tax disclosures [Line Items] | |||
Number of states | 19 | ||
Effective Income Tax Rate Reconciliation, Percent | 35.10% | 32.20% | 32.60% |
Valuation allowance - reversed | $ 0 | $ (16,323) | $ (13,256) |
Valuation allowance - recognized | $ 1,018 | $ 3,681 | $ 1,328 |
State and Local Jurisdiction [Member] | |||
Income tax disclosures [Line Items] | |||
Effective Income Tax Rate Reconciliation, Percent | 7.00% | 6.30% | 7.20% |
State Net Operating Loss Carryforwards [Member] | Minimum [Member] | |||
Income tax disclosures [Line Items] | |||
net operating loss, carryback expiration periods | 5 years | ||
State Net Operating Loss Carryforwards [Member] | Maximum [Member] | |||
Income tax disclosures [Line Items] | |||
net operating loss, carryback expiration periods | 20 years |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2013 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Dec. 16, 2014 | Nov. 07, 2013 | Sep. 05, 2012 | |
Share Repurchase Program | |||||||
Number of shares purchased | 13,652,000 | 1,665,000 | 2,947,000 | ||||
Average price per share | $ 28.77 | $ 34.17 | $ 30.80 | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 15,838,000 | 18,535,000 | 5,321,000 | ||||
Stockholders' Equity (Textual) [Abstract] | |||||||
Common Stock, Shares Authorized | 400,000,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
Preferred Stock, Shares Authorized | 15,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
Common Stock, Shares, Outstanding | 161,800,000 | ||||||
Common Stock Reserved for Outstanding Stock Options and Restricted Stock Units | 10,200,000 | ||||||
Additional common share if convertible debt exchanged | 5,900,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | ||||||
Preferred Stock, Shares Issued | 0 | 0 | |||||
Stock Issued During Period, Shares, New Issues | 7,200,000 | ||||||
Sale of Stock, Price Per Share | $ 32 | ||||||
Proceeds from Issuance of Common Stock | $ 220,365 | ||||||
Authorization to repurchase shares | 20,000,000 | ||||||
Rights Issued Pursuant to Rights Plan Description | The rights issued pursuant to the 2007 Rights Plan will become exercisable upon the earlier of (i) 10 days following a public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of our common stock, or (ii) 10 business days following the commencement of a tender offer or exchange offer that would result in a person or group beneficially owning 15% or more of the outstanding shares of common stock. No rights were exercisable at October 31, 2016. | ||||||
Percentage of Ownership of Company's Common Stock for Restricts Certain Transfers | 4.95% | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 6,800,000 | ||||||
Employee Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 501,000 |
Stock-Based Benefit Plans (Deta
Stock-Based Benefit Plans (Details Textual) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016USD ($)shares | Oct. 31, 2015USD ($)shares | Oct. 31, 2014USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 26,679 | $ 22,903 | $ 21,656 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 6,771,000 | 7,541,000 | 8,821,000 |
Unamortized value of stock compensation | $ 27,000 | $ 25,200 | $ 24,000 |
Active plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock incentive plans | 2 | ||
Active plans [Member] | Employees including officers [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock incentive plans | 1 | ||
Active plans [Member] | Nonemployee directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock incentive plans | 1 | ||
Inactive Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock incentive plans | 3 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 10,986 | 9,610 | 9,005 |
Unamortized value of stock compensation | $ 13,700 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 146 days | ||
Inactive Plans [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Inactive Plans [Member] | Stock Option Non Employee Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Active plans [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Active plans [Member] | Stock Option Non Employee Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Vesting Based On Stock Price [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | $ 231 |
Stock-Based Benefit Plans (De77
Stock-Based Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock based expense recognized | $ 26,679 | $ 22,903 | $ 21,656 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 10,450 | $ 8,767 | $ 8,322 |
Stock-Based Benefit Plans (De78
Stock-Based Benefit Plans (Details 1) - Employee Stock Option [Member] - USD ($) | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Weighted-average assumptions and the fair value used for stock option grants | |||
Weighted-average volatility | 34.69% | 36.36% | 42.71% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payments | $ 0 | $ 0 | $ 0 |
Weighted-average grant date fair value per share of options granted | $ 11.24 | $ 11.67 | $ 14.26 |
Minimum [Member] | |||
Weighted-average assumptions and the fair value used for stock option grants | |||
Expected volatility | 32.03% | 32.69% | 36.44% |
Risk-free interest rate | 1.58% | 1.53% | 1.45% |
Expected life (years) | 4 years 205 days | 4 years 197 days | 4 years 201 days |
Maximum [Member] | |||
Weighted-average assumptions and the fair value used for stock option grants | |||
Expected volatility | 42.31% | 42.58% | 44.71% |
Risk-free interest rate | 2.14% | 2.11% | 2.71% |
Expected life (years) | 9 years 62 days | 9 years 44 days | 9 years 8 days |
Stock-Based Benefit Plans (De79
Stock-Based Benefit Plans (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Stock-based compensation expense recognized | |||
Stock based expense recognized | $ 26,679 | $ 22,903 | $ 21,656 |
Employee Stock Option [Member] | |||
Stock-based compensation expense recognized | |||
Stock based expense recognized | $ 10,986 | $ 9,610 | $ 9,005 |
Stock-Based Benefit Plans (De80
Stock-Based Benefit Plans (Details 3) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Unamortized value of stock compensation | $ 27 | $ 25.2 | $ 24 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning outstanding balance, stock options | 8,025 | 9,358 | 9,924 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 965 | 870 | 819 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (255) | (1,441) | (1,313) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (221) | (762) | (72) |
Ending outstanding balance, stock options | 8,514 | 8,025 | 9,358 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 6,407 | 6,098 | 7,482 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 25.75 | $ 25.94 | $ 24.51 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 32.85 | 32.49 | 35.16 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 24.04 | 27.52 | 20.88 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 35.23 | 32.48 | 25.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | 26.36 | 25.75 | 25.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 24.14 | $ 23.67 | $ 24.91 |
Unamortized value of stock compensation | $ 13.7 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 4 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 1 month 17 days |
Stock-Based Benefit Plans (De81
Stock-Based Benefit Plans (Details 4) - Employee Stock Option [Member] - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 31,852 | $ 82,058 | $ 62,073 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 31,852 | $ 75,034 | $ 55,776 |
Stock-Based Benefit Plans (De82
Stock-Based Benefit Plans (Details 5) - Employee Stock Option [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 2,337 | $ 12,923 | $ 18,361 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Total Fair Value | $ 9,690 | $ 9,183 | $ 8,447 |
Stock-Based Benefit Plans (De83
Stock-Based Benefit Plans (Details 6) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised | 255,000 | 1,441,000 | 1,313,000 |
Net exercise method [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised | 5,000 | 30,000 | 96,162 |
Shares tendered | 3,547 | 29,917 | 58,819 |
Shares issued | 1,453 | 83 | 37,343 |
Average Fair Market Value Per Share Withheld | $ 32.85 | $ 32.64 | $ 33.78 |
Aggregate Fair Market Value of Shares Withheld | $ 117 | $ 976 | $ 1,987 |
Stock-Based Benefit Plans (De84
Stock-Based Benefit Plans (Details 7) - USD ($) | 12 Months Ended | |||||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Dec. 18, 2015 | Dec. 19, 2014 | Dec. 20, 2013 | |
Performance-Based Restricted Stock Units | ||||||
Stock based expense recognized | $ 26,679,000 | $ 22,903,000 | $ 21,656,000 | |||
Unamortized value of RSUs | $ 27,000,000 | $ 25,200,000 | $ 24,000,000 | |||
Restricted Stock Units (RSUs) [Member] | Vesting Based On Performance [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Minimum Percentage of Units Issued to Recipients of Base Award | 90.00% | |||||
Maximum Percentage of Units Issued to Recipients of Base Award | 110.00% | |||||
Performance-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 182,853 | 300,042 | 288,814 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,074,222 | 1,261,545 | 961,503 | |||
Share Price | $ 32.85 | $ 32.49 | $ 35.16 | |||
Fair value of restricted stock units issued | $ 6,007,000 | $ 9,748,000 | $ 10,155,000 | |||
Stock based expense recognized | 8,301,000 | 9,863,000 | 9,310,000 | |||
Unamortized value of RSUs | 6,556,000 | $ 8,850,000 | $ 8,965,000 | |||
gross value of stock awarded related to restricted stock units | $ 12,200,000 | |||||
Gross shares distributed related to restricted stock | 370,171 | |||||
Value of shares withheld for income taxes on restricted shares issued | $ 5,400,000 | |||||
Shares withheld for income taxes related to share issued for RSU | 164,090 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 6,800,000 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 206,081 |
Stock-Based Benefit Plans Stock
Stock-Based Benefit Plans Stock-Based Benefit Plans (Details 8) - USD ($) | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 26,679,000 | $ 22,903,000 | $ 21,656,000 |
Unamortized value of stock compensation | $ 27,000,000 | $ 25,200,000 | $ 24,000,000 |
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 171,705 | ||
Minimum Percentage of Units Issued to Recipients of Base Award | 0.00% | ||
Maximum Percentage of Units Issued to Recipients of Base Award | 200.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payments | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 28.66% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 41.16 | ||
Allocated Share-based Compensation Expense | $ 3,300,000 | ||
Unamortized value of stock compensation | $ 3,800,000 | ||
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 61,796 | ||
Share-based compensation, percent of total sharehold return RSUs earned during the performance period | 0.00% | ||
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 57,230 | ||
Vesting based on total shareholder return [Member] | Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 52,679 |
Stock-Based Benefit Plans (De86
Stock-Based Benefit Plans (Details 9) - USD ($) | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Stock Price-Based RSUs issued | |||
Stock based expense recognized | $ 26,679,000 | $ 22,903,000 | $ 21,656,000 |
Restricted Stock Units (RSUs) [Member] | Vesting Based On Stock Price [Member] | |||
Stock Price-Based RSUs issued | |||
Percentage Increases Over Closing Price | 30.00% | ||
gross value of stock awarded related to restricted stock units | $ 10,471,000 | ||
Gross shares distributed related to restricted stock | 306,000 | ||
Value of shares withheld for income taxes on restricted shares issued | $ 4,796,000 | ||
Shares withheld for income taxes related to share issued for RSU | 140,160 | ||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 5,675,000 | ||
Issuance of restricted stock and stock units, shares | 165,840 | ||
Stock based expense recognized | $ 0 | $ 0 | $ 231,000 |
Aggregate outstanding RSUs | 0 | 0 | |
Number Of Consecutive Trading Days | 20 days | ||
Period of Issuance of Stock Price Based RSU | 5 years |
Stock-Based Benefit Plans (De87
Stock-Based Benefit Plans (Details 10) - USD ($) | 12 Months Ended | |||||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Dec. 20, 2013 | Dec. 17, 2012 | Dec. 20, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based expense recognized | $ 26,679,000 | $ 22,903,000 | $ 21,656,000 | |||
Summary of aggregate number and unamortized value of outstanding non-performance based RSUs | ||||||
Unamortized value of RSUs | $ 27,000,000 | $ 25,200,000 | $ 24,000,000 | |||
Restricted Stock Units (RSUs) [Member] | Vesting Based On Service [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 139,684 | 124,568 | 99,336 | |||
Share Price | $ 32.85 | $ 32.74 | $ 35.16 | |||
Fair value of restricted stock units issued | $ 4,589,000 | $ 4,078,000 | $ 3,493,000 | |||
Stock based expense recognized | $ 3,958,000 | $ 3,317,000 | $ 3,012,000 | |||
Summary of aggregate number and unamortized value of outstanding non-performance based RSUs | ||||||
Aggregate outstanding RSUs | 396,716 | 380,548 | 304,286 | |||
Unamortized value of RSUs | $ 2,956,000 | $ 2,542,000 | $ 2,043,000 | |||
Shares withheld for income taxes related to share issued for RSU | 25,340 | 4,221 | ||||
Value of shares withheld for income taxes on restricted shares issued | $ 827,800 | $ 146,500 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 70,627 | 10,049 | ||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | Vesting Based On Service [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | Vesting Based On Service [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years |
Stock-Based Benefit Plans ESPP
Stock-Based Benefit Plans ESPP (Details 11) - Employee Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Discounted Market Price of Common Stock on Specified Offering Dates without Restriction under Employee Stock Purchase Plan | 95.00% | ||
Discounted Market Price of Common Stock on Specified Offering Dates Subject to Restrictions under Employee Stock Purchase Plan | 85.00% | ||
Shares Reserved for Employee Stock Purchase Plan | 1,200,000 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 501,000 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 36,778 | 26,674 | 24,275 |
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased | $ 25.97 | $ 31.65 | $ 30.59 |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 129 | $ 113 | $ 98 |
Income Per Share Information (D
Income Per Share Information (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Sep. 05, 2012 | |
Earnings Per Share [Abstract] | ||||||||||||
Net Income Attributable to Parent | $ 114,378 | $ 105,483 | $ 89,054 | $ 73,180 | $ 147,163 | $ 66,749 | $ 67,930 | $ 81,325 | $ 382,095 | $ 363,167 | $ 340,032 | |
Interest on Convertible Debt, Net of Tax | 1,538 | 1,561 | 1,557 | |||||||||
Net Income Available to Common Stockholders, Diluted | $ 383,633 | $ 364,728 | $ 341,589 | |||||||||
Basic weighted-average shares | 163,970 | 165,919 | 168,952 | 174,205 | 176,370 | 176,797 | 176,458 | 176,076 | 168,261 | 176,425 | 177,578 | |
Common stock equivalents | 1,854 | 2,420 | 2,439 | |||||||||
Incremental Common Shares Attributable to Conversion of Debt Securities | 5,858 | 5,858 | 5,858 | |||||||||
Diluted weighted-average shares | 171,683 | 173,405 | 176,414 | 182,391 | 184,736 | 185,133 | 184,838 | 184,107 | 175,973 | 184,703 | 185,875 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | |||||||||||
Debt Instrument [Line Items] | ||||||||||||
Shares Issued under Stock Incentive and Employee Stock Purchase Plans | 587 | 1,467 | 1,453 | |||||||||
Restricted Stock Units RSU And Employee Stock Option Member [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,932 | 1,826 | 1,970 | |||||||||
Senior Notes Due 2032 [Member] | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 0.50% | 0.50% |
Fair Value Disclosures (Level 4
Fair Value Disclosures (Level 4 FV of Fin Instr) (Details) - Fair Value, Measurements, Recurring [Member] - Level 2 [Member] - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Forward Contracts [Member] | Residential Mortgage [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Asset | $ 1,390 | $ 186 |
Corporate Debt Securities [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Fair value of securities | 10,001 | |
Assets Held-for-sale [Member] | Residential Mortgage [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Loans Held-for-sale, Fair Value Disclosure | 248,601 | 123,175 |
Interest Rate Lock Commitments [Member] | Forward Contracts [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Asset | 921 | 297 |
Interest Rate Lock Commitments [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Asset/(Liability) | $ (921) | $ (297) |
Fair Value Disclosures (Level91
Fair Value Disclosures (Level 4 loan UPB vs FV) (Details 1) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Aggregate unpaid principal and fair value of mortgage loans held for sale | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 248,601 | $ 123,175 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Assets Held-for-sale [Member] | Residential Mortgage [Member] | ||
Aggregate unpaid principal and fair value of mortgage loans held for sale | ||
Loans Receivable Held-for-sale, Amount | 246,794 | 121,904 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 248,601 | 123,175 |
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | $ 1,807 | $ 1,271 |
Fair Value Disclosures (Level92
Fair Value Disclosures (Level 4 Inv Impair inputs) (Details 2) - Operating communities [Member] $ in Thousands | 3 Months Ended | |||||||
Oct. 31, 2016USD ($)Homes_sold | Jul. 31, 2016USD ($)Homes_sold | Apr. 30, 2016USD ($)Homes_sold | Jan. 31, 2016USD ($)Homes_sold | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | |
Minimum [Member] | ||||||||
Fair value inputs, assets, quantitative information [Line Items] | ||||||||
Average selling price | $ 0 | $ 0 | $ 369 | $ 0 | $ 301 | $ 788 | $ 527 | $ 289 |
Sales Pace | 0 | 0 | 18 | 0 | 3 | 4 | 13 | 1 |
Fair Value Inputs, Discount Rate | 0.00% | 0.00% | 16.30% | 0.00% | 16.30% | 15.50% | 17.00% | 13.50% |
Maximum [Member] | ||||||||
Fair value inputs, assets, quantitative information [Line Items] | ||||||||
Average selling price | $ 0 | $ 0 | $ 394 | $ 0 | $ 764 | $ 1,298 | $ 600 | $ 680 |
Sales Pace | 0 | 0 | 23 | 0 | 24 | 8 | 25 | 7 |
Fair Value Inputs, Discount Rate | 0.00% | 0.00% | 16.30% | 0.00% | 22.00% | 16.20% | 17.00% | 16.00% |
Fair Value Disclosures (Level93
Fair Value Disclosures (Level 4 inventory fv) (Details 3) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Jul. 31, 2014USD ($) | Apr. 30, 2014USD ($) | Jan. 31, 2014USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||
Inventory impairments and write-offs | $ 13,807 | $ 35,709 | $ 20,678 | ||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Operating communities [Member] | |||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||
Number of Operating Communities Tested | 59 | 51 | 41 | 43 | 44 | 40 | 52 | 58 | 55 | 63 | 65 | 67 | |||
Number of Communities impaired | 2 | 2 | 2 | 2 | 3 | 3 | 1 | 4 | 1 | 2 | 1 | 7 | |||
Fair Value Of Communities Net Of Impairment Charges | $ 1,126 | $ 11,714 | $ 10,103 | $ 1,713 | $ 8,726 | $ 13,527 | $ 16,235 | $ 24,968 | $ 38,473 | $ 14,122 | $ 6,211 | $ 7,131 | 1,126 | 8,726 | $ 38,473 |
Inventory impairments and write-offs | $ 415 | $ 1,250 | $ 6,100 | $ 600 | $ 4,300 | $ 6,000 | $ 11,100 | $ 900 | $ 9,855 | $ 4,800 | $ 1,600 | $ 1,300 | $ 8,365 | $ 22,300 | $ 17,555 |
Fair Value Disclosures (Level94
Fair Value Disclosures (Level 4 debt fv) (Details 4) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 3,923,561 | $ 3,978,405 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 2,843,177 | 2,877,039 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Loans Payable [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 870,384 | 1,001,366 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Warehouse Agreement Borrowings [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 210,000 | 100,000 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 3,790,185 | 3,809,078 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 2,707,376 | 2,707,376 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Loans Payable [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 872,809 | 1,001,702 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Warehouse Agreement Borrowings [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 210,000 | $ 100,000 |
Employee Retirement and Defer95
Employee Retirement and Deferred Compensation Plans (Details Textual) $ in Millions | 12 Months Ended | ||
Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 10.3 | $ 8.9 | $ 7.8 |
Number of Unfunded Defined Benefit Retirement Plans | 2 | ||
Normal retirement age | 62 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.98% | 3.55% | 3.55% |
Defined Benefit Plan Unfunded Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued for obligations under the plan | $ 24.6 | $ 21.6 |
Employee Retirement and Defer96
Employee Retirement and Deferred Compensation Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Projected benefit obligation [Roll Forward] | ||||||
Plan amendments adopted during year | $ 757 | $ 768 | $ 511 | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | 1,699 | (382) | 1,183 | |||
Unamortized Prior Service Cost [Roll Forward] | ||||||
Plan amendments adopted during year | 757 | 768 | 511 | |||
Supplemental Employee Retirement Plan [Member] | ||||||
Plan costs | ||||||
Service cost | 562 | 579 | 470 | |||
Interest cost | 1,276 | 1,232 | 1,277 | |||
Amortization of prior service obligation | 947 | 806 | 662 | |||
Amortization of unrecognized losses | 42 | 81 | 8 | |||
Total costs | 2,827 | 2,698 | 2,417 | |||
Projected benefit obligation [Roll Forward] | ||||||
Projected Benefit Obligation, beginning of year | 35,815 | 34,606 | 32,136 | |||
Plan amendments adopted during year | 757 | 768 | 511 | |||
Service cost | 562 | 579 | 470 | |||
Interest cost | 1,276 | 1,232 | 1,277 | |||
Benefits paid | (1,129) | (988) | (971) | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | 1,699 | (382) | 1,183 | |||
Projected Benefit Obligation, end of year | 38,980 | 35,815 | 34,606 | |||
Unamortized Prior Service Cost [Roll Forward] | ||||||
Unamorized Prior Service Cost, beginning of year | 2,965 | 3,003 | 3,154 | |||
Plan amendments adopted during year | 757 | 768 | 511 | |||
Amortization of prior service cost | (947) | (806) | (662) | |||
Unamorized Prior Service Cost, end of year | 2,775 | 2,965 | 3,003 | |||
Accumulated unrecognized loss | $ 2,898 | $ 1,240 | $ 1,703 | |||
Accumulated Benefit Obligation | 38,980 | 35,815 | 34,606 | |||
Accrued Benefit Obligation | 35,815 | $ 34,606 | $ 32,136 | 38,980 | $ 35,815 | $ 34,606 |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 1,326 | |||||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 2,124 | |||||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 2,503 | |||||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 2,611 | |||||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 2,702 | |||||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 15,290 |
Accumulated Other Comprehensi97
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income, Net of Tax | $ (2,509) | $ (2,838) | |
Other comprehensive (loss) income before reclassifications | (2,406) | (358) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 989 | 887 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 590 | (200) | |
Other Comprehensive Income (Loss), Net of Tax | (827) | 329 | $ (451) |
Accumulated Other Comprehensive (Loss) Income, Net of Tax | (3,336) | (2,509) | (2,838) |
Employee Retirement Plans [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income, Net of Tax | (2,478) | (2,789) | |
Other comprehensive (loss) income before reclassifications | (2,456) | (387) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 989 | 887 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 609 | (189) | |
Other Comprehensive Income (Loss), Net of Tax | (858) | 311 | |
Accumulated Other Comprehensive (Loss) Income, Net of Tax | (3,336) | (2,478) | (2,789) |
Available-for-sale Securities [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income, Net of Tax | 0 | (2) | |
Other comprehensive (loss) income before reclassifications | 3 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (1) | ||
Other Comprehensive Income (Loss), Net of Tax | 2 | ||
Accumulated Other Comprehensive (Loss) Income, Net of Tax | 0 | (2) | |
Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income, Net of Tax | (31) | (47) | |
Other comprehensive (loss) income before reclassifications | 50 | 26 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (19) | (10) | |
Other Comprehensive Income (Loss), Net of Tax | 31 | 16 | |
Accumulated Other Comprehensive (Loss) Income, Net of Tax | $ 0 | $ (31) | $ (47) |
Commitments and Contingencies98
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2016 | Oct. 31, 2015 | |
Company's purchase commitments | ||
Purchase Obligation | $ 1,623,389 | $ 1,217,348 |
Land Purchase Commitment To Unrelated Party [Member] | ||
Company's purchase commitments | ||
Purchase Obligation | 1,544,185 | 1,081,008 |
Land Purchase Commitment To JV [Member] | ||
Company's purchase commitments | ||
Purchase Obligation | 79,204 | 136,340 |
Land Parcel Purchase Commitment [Member] | ||
Company's purchase commitments | ||
Deposits against aggregate purchase commitments | 65,299 | 79,072 |
Additional cash required to acquire land | 1,558,090 | 1,138,276 |
Total | 1,623,389 | 1,217,348 |
Amount of Additional Cash Required to Acquire Land Included in Accrued Expenses | $ 18,266 | $ 4,809 |
Commitments and Contingencies99
Commitments and Contingencies (Details 1) - Loan Origination Commitments [Member] - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | $ 1,350,508 | $ 1,257,427 |
Investor commitments to purchase | 487,045 | 432,043 |
Interest Rate Lock Commitments [Member] | ||
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | 255,647 | 316,184 |
Investor commitments to purchase | 255,647 | 316,184 |
Non IRLC [Member] | ||
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | 1,094,861 | 941,243 |
Mortgage loans receivable [Member] | ||
Company's mortgage commitments | ||
Investor commitments to purchase | $ 231,398 | $ 115,859 |
Commitments and Contingencie100
Commitments and Contingencies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Operating Leases, Rent Expense | $ 13,360 | $ 12,584 | $ 12,385 |
Commitments and Contingencie101
Commitments and Contingencies (Details 3) $ in Thousands | Oct. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 11,634 |
Operating Leases, Future Minimum Payments, Due in Two Years | 9,182 |
Operating Leases, Future Minimum Payments, Due in Three Years | 7,044 |
Operating Leases, Future Minimum Payments, Due in Four Years | 2,337 |
Operating Leases, Future Minimum Payments, Due in Five Years | 994 |
Operating Leases, Future Minimum Payments, Due Thereafter | 694 |
Operating Leases, Future Minimum Payments Due | $ 31,885 |
Commitments and Contingencie102
Commitments and Contingencies (Details Textual) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016USD ($) | Oct. 31, 2016USD ($)home_sitesjoint_ventures | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | |
Long-term Purchase Commitment [Line Items] | ||||
Purchase Obligation | $ 1,623,389 | $ 1,217,348 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,489,116 | |||
Expected Lot Purchase | home_sites | 3,600 | |||
Land Development Joint Ventures [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of JV with Purchase Commitments | joint_ventures | 2 | |||
Land Purchase Commitment To JV [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Purchase Obligation | $ 79,204 | $ 136,340 | ||
Land for Apartment Development Purchase Commitment [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Purchase Obligation | 71,800 | |||
Deposits on purchase commitment to acquire land for apartment development | $ 3,700 | |||
Commitment To Acquire Home Sites [Member] | Land Development Joint Ventures [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation, Maximum Quantity | home_sites | 240 | |||
Subsequent Event [Member] | Coleman Holdings LLC [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 85,200 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details Textual 1) $ in Millions | Oct. 31, 2016USD ($)luxury_homes |
Backlog Information [Abstract] | |
Number of homes to be delivered | luxury_homes | 4,685 |
Aggregate sales value of outstanding homes to be delivered | $ 3,980 |
May 2016 Revolving Credit Facility [Member] | |
Loss Contingencies [Line Items] | |
Letters of Credit Outstanding, Amount | 83.2 |
Surety Bond Construction Improvements [Member] | |
Loss Contingencies [Line Items] | |
Outstanding Surety Bonds Amount | 617.3 |
Amount of work remains on improvements in the Company's various communities | 326.1 |
Surety Bond Other Obligations [Member] | |
Loss Contingencies [Line Items] | |
Additional outstanding surety bonds | $ 140.9 |
Other Income - Net (Details)
Other Income - Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Other Nonoperating Income By Component [Line Items] | ||||
Interest income | $ 2,443 | $ 1,939 | $ 2,493 | |
Income from Ancillary Businesses | 17,473 | 23,530 | 10,653 | |
Management fee income from unconsolidated entities | 10,270 | 11,299 | 7,306 | |
Retained customer deposits | 5,866 | 5,224 | 3,067 | |
Land sales, net | 13,327 | 13,150 | 25,489 | |
Directly expensed interest | (656) | |||
Other | 2,193 | 2,263 | 3,476 | |
Total other income - net | 58,218 | 67,573 | 66,192 | |
Revenues and expenses of non-core ancillary businesses | ||||
Revenue | 123,512 | 119,732 | 100,284 | |
Expense | 106,039 | 96,202 | 89,631 | |
Revenues and expenses from land sales [Abstract] | ||||
Revenue | 85,268 | 183,870 | 242,931 | |
Expense | (70,488) | (161,460) | (217,442) | |
Retail Land Sales, Installment Method, Gross Profit, Deferred | ||||
Land sales, net | 13,327 | 13,150 | 25,489 | |
Gibraltar [Member] | ||||
Other Nonoperating Income By Component [Line Items] | ||||
Gibraltar | 6,646 | 10,168 | $ 14,364 | |
Home Building Joint Venture Metro New York Three [Member] | ||||
Revenues and expenses from land sales [Abstract] | ||||
Revenue | 78,500 | |||
Retail Land Sales, Installment Method, Gross Profit, Deferred | $ (9,260) | |||
Deferred Revenue, Revenue Recognized | 1,546 | |||
Rental Property Joint Ventures Metro Washington, D.C. [Member] | ||||
Other Nonoperating Income By Component [Line Items] | ||||
Land sales, net | $ 3,000 | |||
Revenues and expenses from land sales [Abstract] | ||||
Revenue | 38,100 | |||
Retail Land Sales, Installment Method, Gross Profit, Deferred | $ (2,999) | |||
Land sales, net | $ 3,000 |
Other Income (Details Textual)
Other Income (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income from Ancillary Businesses | $ 17,473 | $ 23,530 | $ 10,653 | |
Land Sales | 85,268 | 183,870 | 242,931 | |
Deferred gain on land sale to joint venture | ||||
Toll Brothers Realty Trust 2 [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Land Sales | $ 2,900 | |||
Home Building Joint Venture Metro New York Three [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Land Sales | $ 78,500 | |||
Equity Method Investment, Ownership Percentage | 25.00% | |||
Deferred gain on land sale to joint venture | $ 9,260 | |||
Rental Property Joint Ventures Metro Washington, D.C. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Land Sales | 38,100 | |||
Deferred gain on land sale to joint venture | 2,999 | |||
Security Monitoring Business [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income from Ancillary Businesses | $ 1,600 | $ 8,100 | ||
Co-venturer [Member] | Rental Property Joint Ventures Metro Washington, D.C. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Land Sales | $ 20,200 | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Other Income - Net (Details Tex
Other Income - Net (Details Textuals 1) | 12 Months Ended |
Oct. 31, 2016 | |
Rental Property Joint Ventures Metro Washington, D.C. [Member] | |
Loss Contingencies [Line Items] | |
Retail Land Sales, Installment Method, Gross Profit, Deferred, Percentage | 50.00% |
Information on Segments (Detail
Information on Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Revenues | |||||||||||
Revenues | $ 1,855,451 | $ 1,269,934 | $ 1,115,557 | $ 928,566 | $ 1,437,202 | $ 1,028,011 | $ 852,583 | $ 853,452 | $ 5,169,508 | $ 4,171,248 | $ 3,911,602 |
Income (loss) before income taxes | |||||||||||
Income before income taxes | 168,160 | $ 163,653 | $ 140,397 | $ 116,817 | 217,543 | $ 107,464 | $ 86,532 | $ 124,023 | 589,027 | 535,562 | 504,582 |
Total assets | |||||||||||
Total assets | 9,736,789 | 9,206,515 | 9,736,789 | 9,206,515 | |||||||
North [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 814,519 | 702,175 | 662,734 | ||||||||
Income (loss) before income taxes | |||||||||||
Income before income taxes | 77,017 | 59,172 | 56,983 | ||||||||
Total assets | |||||||||||
Total assets | 1,020,250 | 1,061,777 | 1,020,250 | 1,061,777 | |||||||
Mid-Atlantic [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 895,736 | 845,328 | 817,306 | ||||||||
Income (loss) before income taxes | |||||||||||
Income before income taxes | (29,361) | 69,093 | 78,971 | ||||||||
Total assets | |||||||||||
Total assets | 1,166,023 | 1,225,988 | 1,166,023 | 1,225,988 | |||||||
South [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 849,548 | 892,303 | 836,498 | ||||||||
Income (loss) before income taxes | |||||||||||
Income before income taxes | 128,613 | 152,991 | 113,584 | ||||||||
Total assets | |||||||||||
Total assets | 1,203,554 | 1,196,650 | 1,203,554 | 1,196,650 | |||||||
West [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 903,691 | 665,282 | 517,925 | ||||||||
Income (loss) before income taxes | |||||||||||
Income before income taxes | 127,265 | 106,365 | 78,802 | ||||||||
Total assets | |||||||||||
Total assets | 1,130,625 | 949,566 | 1,130,625 | 949,566 | |||||||
California [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 1,448,546 | 750,036 | 795,802 | ||||||||
Income (loss) before income taxes | |||||||||||
Income before income taxes | 335,173 | 139,133 | 157,561 | ||||||||
Total assets | |||||||||||
Total assets | 2,479,885 | 2,243,309 | 2,479,885 | 2,243,309 | |||||||
Traditional Homebuilding [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 4,912,040 | 3,855,124 | 3,630,265 | ||||||||
Income (loss) before income taxes | |||||||||||
Income before income taxes | 638,707 | 526,754 | 485,901 | ||||||||
Total assets | |||||||||||
Total assets | 7,000,337 | 6,677,290 | 7,000,337 | 6,677,290 | |||||||
City Living [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 257,468 | 316,124 | 281,337 | ||||||||
Income (loss) before income taxes | |||||||||||
Income before income taxes | 91,109 | 124,290 | 104,580 | ||||||||
Total assets | |||||||||||
Total assets | 946,738 | 873,013 | 946,738 | 873,013 | |||||||
Corporate and other [Member] | |||||||||||
Revenues | |||||||||||
Revenues | |||||||||||
Income (loss) before income taxes | |||||||||||
Income before income taxes | (140,789) | (115,482) | $ (85,899) | ||||||||
Total assets | |||||||||||
Total assets | $ 1,789,714 | $ 1,656,212 | $ 1,789,714 | $ 1,656,212 |
Information on Segments (Det108
Information on Segments (Details 1) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Inventory | ||
Inventory | $ 7,353,967 | $ 6,997,516 |
Land controlled for future communities [Member] | ||
Inventory | ||
Inventory | 71,729 | 75,214 |
Land Owned for Future Communities [Member] | ||
Inventory | ||
Inventory | 1,884,146 | 2,033,447 |
Operating communities [Member] | ||
Inventory | ||
Inventory | 5,398,092 | 4,888,855 |
North [Member] | ||
Inventory | ||
Inventory | 983,165 | 1,024,474 |
North [Member] | Land controlled for future communities [Member] | ||
Inventory | ||
Inventory | 20,671 | 12,858 |
North [Member] | Land Owned for Future Communities [Member] | ||
Inventory | ||
Inventory | 79,299 | 146,063 |
North [Member] | Operating communities [Member] | ||
Inventory | ||
Inventory | 883,195 | 865,553 |
Mid-Atlantic [Member] | ||
Inventory | ||
Inventory | 1,123,000 | 1,184,003 |
Mid-Atlantic [Member] | Land controlled for future communities [Member] | ||
Inventory | ||
Inventory | 30,967 | 33,196 |
Mid-Atlantic [Member] | Land Owned for Future Communities [Member] | ||
Inventory | ||
Inventory | 109,551 | 194,058 |
Mid-Atlantic [Member] | Operating communities [Member] | ||
Inventory | ||
Inventory | 982,482 | 956,749 |
South [Member] | ||
Inventory | ||
Inventory | 1,030,324 | 1,016,936 |
South [Member] | Land controlled for future communities [Member] | ||
Inventory | ||
Inventory | 6,024 | 4,861 |
South [Member] | Land Owned for Future Communities [Member] | ||
Inventory | ||
Inventory | 96,900 | 205,562 |
South [Member] | Operating communities [Member] | ||
Inventory | ||
Inventory | 927,400 | 806,513 |
West [Member] | ||
Inventory | ||
Inventory | 1,106,053 | 933,362 |
West [Member] | Land controlled for future communities [Member] | ||
Inventory | ||
Inventory | 7,724 | 8,417 |
West [Member] | Land Owned for Future Communities [Member] | ||
Inventory | ||
Inventory | 191,995 | 198,689 |
West [Member] | Operating communities [Member] | ||
Inventory | ||
Inventory | 906,334 | 726,256 |
California [Member] | ||
Inventory | ||
Inventory | 2,288,535 | 2,063,173 |
California [Member] | Land controlled for future communities [Member] | ||
Inventory | ||
Inventory | 5,337 | 14,386 |
California [Member] | Land Owned for Future Communities [Member] | ||
Inventory | ||
Inventory | 989,689 | 899,675 |
California [Member] | Operating communities [Member] | ||
Inventory | ||
Inventory | 1,293,509 | 1,149,112 |
Traditional Homebuilding [Member] | ||
Inventory | ||
Inventory | 6,531,077 | 6,221,948 |
Traditional Homebuilding [Member] | Land controlled for future communities [Member] | ||
Inventory | ||
Inventory | 70,723 | 73,718 |
Traditional Homebuilding [Member] | Land Owned for Future Communities [Member] | ||
Inventory | ||
Inventory | 1,467,434 | 1,644,047 |
Traditional Homebuilding [Member] | Operating communities [Member] | ||
Inventory | ||
Inventory | 4,992,920 | 4,504,183 |
City Living [Member] | ||
Inventory | ||
Inventory | 822,890 | 775,568 |
City Living [Member] | Land controlled for future communities [Member] | ||
Inventory | ||
Inventory | 1,006 | 1,496 |
City Living [Member] | Land Owned for Future Communities [Member] | ||
Inventory | ||
Inventory | 416,712 | 389,400 |
City Living [Member] | Operating communities [Member] | ||
Inventory | ||
Inventory | $ 405,172 | $ 384,672 |
Information on Segments (Det109
Information on Segments (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Schedule of inventory impairments, by segment [Line Items] | |||
Inventory Write-down | $ 13,807 | $ 35,709 | $ 20,678 |
North [Member] | |||
Schedule of inventory impairments, by segment [Line Items] | |||
Inventory Write-down | 7,579 | 15,033 | 9,148 |
Mid-Atlantic [Member] | |||
Schedule of inventory impairments, by segment [Line Items] | |||
Inventory Write-down | 2,076 | 19,488 | 9,069 |
South [Member] | |||
Schedule of inventory impairments, by segment [Line Items] | |||
Inventory Write-down | 3,316 | 720 | 2,285 |
West [Member] | |||
Schedule of inventory impairments, by segment [Line Items] | |||
Inventory Write-down | 746 | 420 | 169 |
California [Member] | |||
Schedule of inventory impairments, by segment [Line Items] | |||
Inventory Write-down | 7 | ||
Traditional Homebuilding [Member] | |||
Schedule of inventory impairments, by segment [Line Items] | |||
Inventory Write-down | 13,717 | 35,661 | 20,678 |
City Living [Member] | |||
Schedule of inventory impairments, by segment [Line Items] | |||
Inventory Write-down | $ 90 | $ 48 |
Information on Segments (Det110
Information on Segments (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items] | |||
Investments in unconsolidated entities | $ 496,411 | $ 412,860 | |
Income (loss) from unconsolidated entities | 40,748 | 21,119 | $ 41,141 |
Mid-Atlantic [Member] | |||
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items] | |||
Investments in unconsolidated entities | 12,639 | 12,167 | |
Income (loss) from unconsolidated entities | (8) | ||
South [Member] | |||
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items] | |||
Investments in unconsolidated entities | 93,182 | 97,041 | |
Income (loss) from unconsolidated entities | 11,013 | 11,074 | 2,621 |
West [Member] | |||
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items] | |||
Investments in unconsolidated entities | |||
Income (loss) from unconsolidated entities | 2,921 | 447 | (166) |
California [Member] | |||
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items] | |||
Investments in unconsolidated entities | 130,534 | 128,338 | |
Income (loss) from unconsolidated entities | 5,896 | 5,089 | 302 |
Traditional Homebuilding [Member] | |||
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items] | |||
Investments in unconsolidated entities | 236,355 | 237,546 | |
Income (loss) from unconsolidated entities | 19,830 | 16,610 | 2,749 |
City Living [Member] | |||
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items] | |||
Investments in unconsolidated entities | 85,882 | 52,634 | |
Income (loss) from unconsolidated entities | 13,184 | (1,158) | (3,593) |
Corporate and other [Member] | |||
Segment Reporting, Investment and Equity in Earnings (Losses) in Unconsolidated Entities [Line Items] | |||
Investments in unconsolidated entities | 174,174 | 122,680 | |
Income (loss) from unconsolidated entities | $ 7,734 | $ 5,667 | $ 41,985 |
Supplemental Disclosure to S111
Supplemental Disclosure to Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Cash flow information: | |||
Interest paid, net of amount capitalized | $ 12,131 | $ 23,930 | $ 10,131 |
Income tax payment | 185,084 | 205,412 | 71,608 |
Income tax refunds | 4,451 | 16,965 | 8 |
Noncash activity: | |||
Cost of inventory acquired through seller financing or municipal bonds, net | 5,807 | 67,890 | 96,497 |
Financed portion of land sale | 2,273 | 6,586 | |
Reduction in inventory for our share of earnings in land purchased from unconsolidated entities and allocation of basis difference | 9,012 | 9,188 | 4,177 |
Reclassification of deferred income from inventory to accrued liabilities | 2,111 | ||
Reclassification of inventory to property, construction and office equipment | 17,064 | 9,482 | |
Increase (decrease) in unrecognized losses in defined benefit plans | 1,699 | (382) | 1,183 |
Defined benefit retirement plan amendment | 757 | 768 | 511 |
Deferred tax decrease related to stock-based compensation activity included in additional paid-in capital | 11,363 | 2,325 | 312 |
Increase in accrued expenses related to stock-based compensation | 6,240 | 5,086 | |
Income tax (expense) benefit recognized in total comprehensive income | 590 | (200) | 202 |
Transfer of inventory to investment in unconsolidated entities | 4,152 | ||
Transfer of investment in unconsolidated entities to inventory | 132,256 | 2,704 | |
Transfer of other assets to investment in unconsolidated entities | 24,967 | 4,852 | |
Unrealized gain (loss) on derivative held by equity investee | 26 | 364 | |
Increase in investments in unconsolidated entities for change in the fair value of debt guarantees | 29 | 1,843 | 1,356 |
Miscellaneous (decreases) increases to investments in unconsolidated entities | 1,510 | 144 | 249 |
Acquisition of a Business: | |||
Business Combination, Assets Acquired Net Of Cash Acquired | 1,524,964 | ||
Fair Value of Liabilities Assumed Business Combination | 35,848 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,489,116 |
Supplemental Guarantor Infor112
Supplemental Guarantor Information (Level 4 Senior Note table) (Details) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 30, 2015 | Sep. 05, 2012 |
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Senior notes | $ 2,694,372 | $ 2,689,801 | ||
Interest rate on notes | 0.50% | |||
Senior Notes Due 2017 [Member] | ||||
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Issued Senior Notes | 400,000 | |||
Senior notes | $ 400,000 | |||
Interest rate on notes | 8.91% | |||
Senior Notes Due 2018 [Member] | ||||
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Issued Senior Notes | $ 350,000 | |||
Senior notes | $ 350,000 | |||
Interest rate on notes | 4.00% | |||
Senior Notes Due 2019 [Member] | ||||
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Issued Senior Notes | $ 250,000 | |||
Senior notes | $ 250,000 | |||
Interest rate on notes | 6.75% | |||
Senior Notes Due 2022 [Member] | ||||
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Issued Senior Notes | $ 419,876 | |||
Senior notes | $ 419,876 | |||
Interest rate on notes | 5.875% | |||
Senior Notes Due 2023 [Member] | ||||
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Issued Senior Notes | $ 400,000 | |||
Senior notes | $ 400,000 | |||
Interest rate on notes | 4.375% | |||
Senior Notes Due 2024 [Member] | ||||
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Issued Senior Notes | $ 250,000 | |||
Senior notes | $ 250,000 | |||
Interest rate on notes | 5.63% | |||
4.875% Senior Notes Due 2025 [Member] | ||||
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Issued Senior Notes | $ 350,000 | |||
Senior notes | $ 350,000 | $ 350,000 | $ 350,000 | |
Interest rate on notes | 4.875% | 4.875% | ||
Senior Notes Due 2032 [Member] | ||||
Supplemental Guarantor Information (Textual) [Abstract] | ||||
Issued Senior Notes | $ 287,500 | |||
Senior notes | $ 287,500 | |||
Interest rate on notes | 0.50% | 0.50% |
Supplemental Guarantor Infor113
Supplemental Guarantor Information (Level 4 BS) (Details 1) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
ASSETS | |||||
Cash and cash equivalents | $ 633,715 | $ 918,993 | $ 586,315 | $ 772,972 | $ 772,972 |
Marketable securities | 10,001 | ||||
Restricted Cash and Investments | 31,291 | 16,795 | |||
Inventory | 7,353,967 | 6,997,516 | |||
Property, construction and office equipment, net | 169,576 | 136,755 | |||
Receivables, prepaid expenses, and other assets | 582,758 | 335,860 | |||
Mortgage loans held for sale | 248,601 | 123,175 | |||
Customer deposits held in escrow | 53,057 | 56,105 | |||
Investments in unconsolidated entities | 496,411 | 412,860 | |||
Investments in and Advances to Affiliates, Amount of Equity | 0 | 0 | |||
Deferred tax assets, net of valuation allowances | 167,413 | 198,455 | |||
Total assets | 9,736,789 | 9,206,515 | |||
Liabilities: | |||||
Loans payable | 871,079 | 1,000,439 | |||
Senior notes | 2,694,372 | 2,689,801 | |||
Mortgage company loan facility | 210,000 | 100,000 | |||
Customer deposits | 309,099 | 284,309 | |||
Accounts payable | 281,955 | 236,953 | |||
Accrued expenses | 1,072,300 | 608,066 | |||
Advances from Affiliiate | 0 | 0 | |||
Income taxes payable | 62,782 | 58,868 | |||
Total liabilities | 5,501,587 | 4,978,436 | |||
Stockholders’ equity: | |||||
Common stock | 1,779 | 1,779 | |||
Additional paid-in capital | 728,464 | 728,125 | |||
Retained earnings | 3,977,297 | 3,595,202 | |||
Treasury stock, at cost -- 16,154 shares and 3,084 shares at October 31, 2016 and October 31, 2015, respectively | (474,912) | (100,040) | |||
Accumulated other comprehensive loss | (3,336) | (2,509) | (2,838) | ||
Total stockholders' equity | 4,229,292 | 4,222,557 | |||
Noncontrolling interest | 5,910 | 5,522 | |||
Total equity | 4,235,202 | 4,228,079 | 3,860,697 | 3,339,164 | |
Total liabilities and stockholders' equity | 9,736,789 | 9,206,515 | |||
Toll Brothers Inc. [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Marketable securities | |||||
Restricted Cash and Investments | 11,708 | 15,227 | |||
Inventory | |||||
Property, construction and office equipment, net | |||||
Receivables, prepaid expenses, and other assets | 77 | 52 | |||
Mortgage loans held for sale | |||||
Customer deposits held in escrow | |||||
Investments in unconsolidated entities | |||||
Investments in and Advances to Affiliates, Amount of Equity | 4,112,876 | 4,067,722 | |||
Deferred tax assets, net of valuation allowances | 167,413 | 198,455 | |||
Total assets | 4,292,074 | 4,281,456 | |||
Liabilities: | |||||
Loans payable | |||||
Senior notes | |||||
Mortgage company loan facility | |||||
Customer deposits | |||||
Accounts payable | |||||
Accrued expenses | |||||
Advances from Affiliiate | |||||
Income taxes payable | 62,782 | 58,868 | |||
Total liabilities | 62,782 | 58,868 | |||
Stockholders’ equity: | |||||
Common stock | 1,779 | 1,779 | |||
Additional paid-in capital | 728,464 | 728,125 | |||
Retained earnings | 3,977,297 | 3,595,202 | |||
Treasury stock, at cost -- 16,154 shares and 3,084 shares at October 31, 2016 and October 31, 2015, respectively | (474,912) | (100,040) | |||
Accumulated other comprehensive loss | (3,336) | (2,478) | |||
Total stockholders' equity | 4,229,292 | 4,222,588 | |||
Noncontrolling interest | |||||
Total equity | 4,229,292 | 4,222,588 | |||
Total liabilities and stockholders' equity | 4,292,074 | 4,281,456 | |||
Subsidiary Issuer [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Marketable securities | |||||
Restricted Cash and Investments | |||||
Inventory | |||||
Property, construction and office equipment, net | |||||
Receivables, prepaid expenses, and other assets | |||||
Mortgage loans held for sale | |||||
Customer deposits held in escrow | |||||
Investments in unconsolidated entities | |||||
Investments in and Advances to Affiliates, Amount of Equity | 2,741,160 | 2,726,428 | |||
Deferred tax assets, net of valuation allowances | |||||
Total assets | 2,741,160 | 2,726,428 | |||
Liabilities: | |||||
Loans payable | |||||
Senior notes | 2,683,823 | 2,669,860 | |||
Mortgage company loan facility | |||||
Customer deposits | |||||
Accounts payable | |||||
Accrued expenses | 32,559 | 25,699 | |||
Advances from Affiliiate | |||||
Income taxes payable | |||||
Total liabilities | 2,716,382 | 2,695,559 | |||
Stockholders’ equity: | |||||
Common stock | |||||
Additional paid-in capital | 49,400 | 49,400 | |||
Retained earnings | (24,622) | (18,531) | |||
Treasury stock, at cost -- 16,154 shares and 3,084 shares at October 31, 2016 and October 31, 2015, respectively | |||||
Accumulated other comprehensive loss | |||||
Total stockholders' equity | 24,778 | 30,869 | |||
Noncontrolling interest | |||||
Total equity | 24,778 | 30,869 | |||
Total liabilities and stockholders' equity | 2,741,160 | 2,726,428 | |||
Guarantor Subsidiaries [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 583,440 | 783,599 | 455,714 | 670,102 | |
Marketable securities | |||||
Restricted Cash and Investments | 499 | ||||
Inventory | 6,896,205 | 6,530,698 | |||
Property, construction and office equipment, net | 153,663 | 121,178 | |||
Receivables, prepaid expenses, and other assets | 319,319 | 149,268 | |||
Mortgage loans held for sale | |||||
Customer deposits held in escrow | 50,079 | 51,767 | |||
Investments in unconsolidated entities | 101,999 | 115,999 | |||
Investments in and Advances to Affiliates, Amount of Equity | 20,519 | 4,740 | |||
Deferred tax assets, net of valuation allowances | |||||
Total assets | 8,125,224 | 7,757,748 | |||
Liabilities: | |||||
Loans payable | 871,079 | 1,000,439 | |||
Senior notes | |||||
Mortgage company loan facility | |||||
Customer deposits | 292,794 | 271,124 | |||
Accounts payable | 280,107 | 236,436 | |||
Accrued expenses | 610,958 | 361,089 | |||
Advances from Affiliiate | 1,737,682 | 1,932,075 | |||
Income taxes payable | |||||
Total liabilities | 3,792,620 | 3,801,163 | |||
Stockholders’ equity: | |||||
Common stock | 48 | 48 | |||
Additional paid-in capital | |||||
Retained earnings | 4,332,556 | 3,956,568 | |||
Treasury stock, at cost -- 16,154 shares and 3,084 shares at October 31, 2016 and October 31, 2015, respectively | |||||
Accumulated other comprehensive loss | (31) | ||||
Total stockholders' equity | 4,332,604 | 3,956,585 | |||
Noncontrolling interest | |||||
Total equity | 4,332,604 | 3,956,585 | |||
Total liabilities and stockholders' equity | 8,125,224 | 7,757,748 | |||
Non-Guarantor Subsidiaries [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 50,275 | 135,394 | 130,601 | 102,870 | |
Marketable securities | 10,001 | ||||
Restricted Cash and Investments | 19,583 | 1,069 | |||
Inventory | 457,806 | 466,818 | |||
Property, construction and office equipment, net | 15,913 | 15,577 | |||
Receivables, prepaid expenses, and other assets | 299,978 | 230,410 | |||
Mortgage loans held for sale | 248,601 | 123,175 | |||
Customer deposits held in escrow | 2,978 | 4,338 | |||
Investments in unconsolidated entities | 394,412 | 296,861 | |||
Investments in and Advances to Affiliates, Amount of Equity | 90,671 | ||||
Deferred tax assets, net of valuation allowances | |||||
Total assets | 1,580,217 | 1,283,643 | |||
Liabilities: | |||||
Loans payable | |||||
Senior notes | |||||
Mortgage company loan facility | 210,000 | 100,000 | |||
Customer deposits | 16,305 | 13,185 | |||
Accounts payable | 1,848 | 517 | |||
Accrued expenses | 469,527 | 266,411 | |||
Advances from Affiliiate | 747,026 | 850,374 | |||
Income taxes payable | |||||
Total liabilities | 1,444,706 | 1,230,487 | |||
Stockholders’ equity: | |||||
Common stock | 3,006 | 3,006 | |||
Additional paid-in capital | 6,734 | 1,734 | |||
Retained earnings | 119,861 | 42,894 | |||
Treasury stock, at cost -- 16,154 shares and 3,084 shares at October 31, 2016 and October 31, 2015, respectively | |||||
Accumulated other comprehensive loss | |||||
Total stockholders' equity | 129,601 | 47,634 | |||
Noncontrolling interest | 5,910 | 5,522 | |||
Total equity | 135,511 | 53,156 | |||
Total liabilities and stockholders' equity | 1,580,217 | 1,283,643 | |||
Eliminations [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Marketable securities | |||||
Restricted Cash and Investments | |||||
Inventory | (44) | ||||
Property, construction and office equipment, net | |||||
Receivables, prepaid expenses, and other assets | (36,616) | (43,870) | |||
Mortgage loans held for sale | |||||
Customer deposits held in escrow | |||||
Investments in unconsolidated entities | |||||
Investments in and Advances to Affiliates, Amount of Equity | (6,965,226) | (6,798,890) | |||
Deferred tax assets, net of valuation allowances | |||||
Total assets | (7,001,886) | (6,842,760) | |||
Liabilities: | |||||
Loans payable | |||||
Senior notes | 10,549 | 19,941 | |||
Mortgage company loan facility | |||||
Customer deposits | |||||
Accounts payable | |||||
Accrued expenses | (40,744) | (45,133) | |||
Advances from Affiliiate | (2,484,708) | (2,782,449) | |||
Income taxes payable | |||||
Total liabilities | (2,514,903) | (2,807,641) | |||
Stockholders’ equity: | |||||
Common stock | (3,054) | (3,054) | |||
Additional paid-in capital | (56,134) | (51,134) | |||
Retained earnings | (4,427,795) | (3,980,931) | |||
Treasury stock, at cost -- 16,154 shares and 3,084 shares at October 31, 2016 and October 31, 2015, respectively | |||||
Accumulated other comprehensive loss | |||||
Total stockholders' equity | (4,486,983) | (4,035,119) | |||
Noncontrolling interest | |||||
Total equity | (4,486,983) | (4,035,119) | |||
Total liabilities and stockholders' equity | $ (7,001,886) | $ (6,842,760) |
Supplemental Guarantor Infor114
Supplemental Guarantor Information (Level 4 IS) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Supplemental Condensed Consolidating Statement of Operations | |||||||||||
Revenues | $ 1,855,451 | $ 1,269,934 | $ 1,115,557 | $ 928,566 | $ 1,437,202 | $ 1,028,011 | $ 852,583 | $ 853,452 | $ 5,169,508 | $ 4,171,248 | $ 3,911,602 |
Cost of revenues | 4,144,065 | 3,269,270 | 3,081,837 | ||||||||
Selling, general and administrative | 535,382 | 455,108 | 432,516 | ||||||||
Total | 4,679,447 | 3,724,378 | 3,514,353 | ||||||||
Income (loss) from operations | 490,061 | 446,870 | 397,249 | ||||||||
Other [Abstract] | |||||||||||
Income (loss) from unconsolidated entities | 40,748 | 21,119 | 41,141 | ||||||||
Other income - net | 58,218 | 67,573 | 66,192 | ||||||||
Intercompany interest income | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Loss from subsidiaries | 0 | 0 | 0 | ||||||||
Income (loss) before income tax benefit | 168,160 | 163,653 | 140,397 | 116,817 | 217,543 | 107,464 | 86,532 | 124,023 | 589,027 | 535,562 | 504,582 |
Income tax provision | 206,932 | 172,395 | 164,550 | ||||||||
Net income | $ 114,378 | $ 105,483 | $ 89,054 | $ 73,180 | $ 147,163 | $ 66,749 | $ 67,930 | $ 81,325 | 382,095 | 363,167 | 340,032 |
Other Comprehensive Income (Loss), Net of Tax | (827) | 329 | (451) | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 381,268 | 363,496 | 339,581 | ||||||||
Toll Brothers Inc. [Member] | |||||||||||
Supplemental Condensed Consolidating Statement of Operations | |||||||||||
Revenues | |||||||||||
Cost of revenues | |||||||||||
Selling, general and administrative | 75 | 113 | 132 | ||||||||
Total | 75 | 113 | 132 | ||||||||
Income (loss) from operations | (75) | (113) | (132) | ||||||||
Other [Abstract] | |||||||||||
Income (loss) from unconsolidated entities | |||||||||||
Other income - net | 9,501 | 9,429 | 9,403 | ||||||||
Intercompany interest income | |||||||||||
Interest Expense | |||||||||||
Loss from subsidiaries | 579,601 | 526,246 | 495,311 | ||||||||
Income (loss) before income tax benefit | 589,027 | 535,562 | 504,582 | ||||||||
Income tax provision | 206,932 | 172,395 | 164,550 | ||||||||
Net income | 382,095 | 363,167 | 340,032 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (858) | 311 | (677) | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 381,237 | 363,478 | 339,355 | ||||||||
Subsidiary Issuer [Member] | |||||||||||
Supplemental Condensed Consolidating Statement of Operations | |||||||||||
Revenues | |||||||||||
Cost of revenues | |||||||||||
Selling, general and administrative | 3,809 | 3,560 | 3,670 | ||||||||
Total | 3,809 | 3,560 | 3,670 | ||||||||
Income (loss) from operations | (3,809) | (3,560) | (3,670) | ||||||||
Other [Abstract] | |||||||||||
Income (loss) from unconsolidated entities | |||||||||||
Other income - net | |||||||||||
Intercompany interest income | 145,828 | 137,362 | 148,177 | ||||||||
Interest Expense | (151,410) | (143,193) | (153,898) | ||||||||
Loss from subsidiaries | |||||||||||
Income (loss) before income tax benefit | (9,391) | (9,391) | (9,391) | ||||||||
Income tax provision | (3,299) | (3,628) | (3,609) | ||||||||
Net income | (6,092) | (5,763) | (5,782) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (6,092) | (5,763) | (5,782) | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Supplemental Condensed Consolidating Statement of Operations | |||||||||||
Revenues | 4,984,356 | 4,213,776 | 3,950,509 | ||||||||
Cost of revenues | 4,000,112 | 3,276,078 | 3,098,048 | ||||||||
Selling, general and administrative | 558,686 | 481,943 | 457,808 | ||||||||
Total | 4,558,798 | 3,758,021 | 3,555,856 | ||||||||
Income (loss) from operations | 425,558 | 455,755 | 394,653 | ||||||||
Other [Abstract] | |||||||||||
Income (loss) from unconsolidated entities | 16,913 | 14,034 | 40,588 | ||||||||
Other income - net | 27,873 | 34,098 | 40,594 | ||||||||
Intercompany interest income | |||||||||||
Interest Expense | |||||||||||
Loss from subsidiaries | 109,257 | 22,359 | 19,476 | ||||||||
Income (loss) before income tax benefit | 579,601 | 526,246 | 495,311 | ||||||||
Income tax provision | 203,614 | 203,296 | 190,349 | ||||||||
Net income | 375,987 | 322,950 | 304,962 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 31 | 18 | 202 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 376,018 | 322,968 | 305,164 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Supplemental Condensed Consolidating Statement of Operations | |||||||||||
Revenues | 317,018 | 77,226 | 79,097 | ||||||||
Cost of revenues | 163,970 | 12,909 | 9,406 | ||||||||
Selling, general and administrative | 73,488 | 60,377 | 55,721 | ||||||||
Total | 237,458 | 73,286 | 65,127 | ||||||||
Income (loss) from operations | 79,560 | 3,940 | 13,970 | ||||||||
Other [Abstract] | |||||||||||
Income (loss) from unconsolidated entities | 23,835 | 7,085 | 553 | ||||||||
Other income - net | 17,456 | 21,724 | 15,416 | ||||||||
Intercompany interest income | |||||||||||
Interest Expense | (2,203) | (999) | (1,072) | ||||||||
Loss from subsidiaries | |||||||||||
Income (loss) before income tax benefit | 118,648 | 31,750 | 28,867 | ||||||||
Income tax provision | 41,681 | 12,265 | 11,094 | ||||||||
Net income | 76,967 | 19,485 | 17,773 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 24 | ||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 76,967 | 19,485 | 17,797 | ||||||||
Eliminations [Member] | |||||||||||
Supplemental Condensed Consolidating Statement of Operations | |||||||||||
Revenues | (131,866) | (119,754) | (118,004) | ||||||||
Cost of revenues | (20,017) | (19,717) | (25,617) | ||||||||
Selling, general and administrative | (100,676) | (90,885) | (84,815) | ||||||||
Total | (120,693) | (110,602) | (110,432) | ||||||||
Income (loss) from operations | (11,173) | (9,152) | (7,572) | ||||||||
Other [Abstract] | |||||||||||
Income (loss) from unconsolidated entities | |||||||||||
Other income - net | 3,388 | 2,322 | 779 | ||||||||
Intercompany interest income | (145,828) | (137,362) | (148,177) | ||||||||
Interest Expense | 153,613 | 144,192 | 154,970 | ||||||||
Loss from subsidiaries | (688,858) | (548,605) | (514,787) | ||||||||
Income (loss) before income tax benefit | (688,858) | (548,605) | (514,787) | ||||||||
Income tax provision | (241,996) | (211,933) | (197,834) | ||||||||
Net income | (446,862) | (336,672) | (316,953) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (446,862) | $ (336,672) | $ (316,953) |
Supplemental Guarantor Infor115
Supplemental Guarantor Information (Level 4 CF) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Cash flow (used in) provided by operating activities: | |||
Net cash provided by (used in) operating activities | $ 148,771 | $ 60,182 | $ 313,200 |
Cash flow from investing activities: | |||
Purchase of property and equipment - net | (28,426) | (9,447) | (15,074) |
Purchase of marketable securities | 0 | ||
Sale and redemption of marketable securities | 10,000 | 2,000 | 40,242 |
Payments to Acquire Equity Method Investments | (69,655) | (123,940) | (113,029) |
Return of investments in unconsolidated entities | 47,806 | 39,766 | 73,845 |
Investment in foreclosed real estate and distressed loans | (1,133) | (2,624) | (2,089) |
Return of investments in foreclosed real estate and distressed loans | 49,619 | 37,625 | 53,130 |
Net increase in cash from purchase of joint venture interest | 3,848 | ||
Acquisition of a business, net of cash acquired | (1,489,116) | ||
Proceeds from Dividends Received | 0 | 0 | |
Investments paid intercompany | 0 | ||
Intercompany investing activites (to) from consolidated entities | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 8,211 | (52,772) | (1,452,091) |
Cash flow from financing activities: | |||
Proceeds from issuance of senior notes | 350,000 | 600,000 | |
Debt issuance costs for senior notes | (35) | (3,175) | (4,739) |
Proceeds from loans payable | 2,443,496 | 1,954,432 | 2,229,371 |
Debt issuance costs for loans payable | (4,868) | (3,063) | |
Principal Payments of Loans Payable | (2,497,585) | (1,659,458) | (1,767,115) |
Repayments of senior notes | (300,000) | (267,960) | |
Proceeds from Issuance of Common Stock | 220,365 | ||
Proceeds from stock-based benefit plans | 6,986 | 39,514 | 28,364 |
Excess tax benefits from stock-based compensation | 2,114 | 1,628 | 7,593 |
Purchase of treasury stock | (392,772) | (56,888) | (90,754) |
Receipts (payments) related to noncontrolling interest, net | 404 | (785) | 172 |
Payments of Dividends | 0 | 0 | |
Investment received intercompany | 0 | ||
Intercompany financing advances (to) from consolidated entities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (442,260) | 325,268 | 952,234 |
Net increase (decrease) in cash and cash equivalents | (285,278) | 332,678 | (186,657) |
Cash and cash equivalents, beginning of period | 918,993 | 586,315 | 772,972 |
Cash and cash equivalents, end of period | 633,715 | 918,993 | 586,315 |
Toll Brothers Inc. [Member] | |||
Cash flow (used in) provided by operating activities: | |||
Net cash provided by (used in) operating activities | 60,465 | 45,366 | 137,023 |
Cash flow from investing activities: | |||
Purchase of property and equipment - net | |||
Purchase of marketable securities | |||
Sale and redemption of marketable securities | |||
Payments to Acquire Equity Method Investments | |||
Return of investments in unconsolidated entities | |||
Investment in foreclosed real estate and distressed loans | |||
Return of investments in foreclosed real estate and distressed loans | |||
Net increase in cash from purchase of joint venture interest | |||
Acquisition of a business, net of cash acquired | |||
Proceeds from Dividends Received | |||
Investments paid intercompany | |||
Intercompany investing activites (to) from consolidated entities | 323,207 | (29,620) | (302,591) |
Net cash (used in) provided by investing activities | 323,207 | (29,620) | (302,591) |
Cash flow from financing activities: | |||
Proceeds from issuance of senior notes | |||
Debt issuance costs for senior notes | |||
Proceeds from loans payable | |||
Debt issuance costs for loans payable | |||
Principal Payments of Loans Payable | |||
Repayments of senior notes | |||
Proceeds from Issuance of Common Stock | 220,365 | ||
Proceeds from stock-based benefit plans | 6,986 | 39,514 | 28,364 |
Excess tax benefits from stock-based compensation | 2,114 | 1,628 | 7,593 |
Purchase of treasury stock | (392,772) | (56,888) | (90,754) |
Receipts (payments) related to noncontrolling interest, net | |||
Payments of Dividends | |||
Investment received intercompany | |||
Intercompany financing advances (to) from consolidated entities | |||
Net cash provided by (used in) financing activities | (383,672) | (15,746) | 165,568 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
Subsidiary Issuer [Member] | |||
Cash flow (used in) provided by operating activities: | |||
Net cash provided by (used in) operating activities | 14,768 | 2,156 | 15,644 |
Cash flow from investing activities: | |||
Purchase of property and equipment - net | |||
Purchase of marketable securities | |||
Sale and redemption of marketable securities | |||
Payments to Acquire Equity Method Investments | |||
Return of investments in unconsolidated entities | |||
Investment in foreclosed real estate and distressed loans | |||
Return of investments in foreclosed real estate and distressed loans | |||
Net increase in cash from purchase of joint venture interest | |||
Acquisition of a business, net of cash acquired | |||
Proceeds from Dividends Received | |||
Investments paid intercompany | |||
Intercompany investing activites (to) from consolidated entities | (14,733) | (48,981) | (342,945) |
Net cash (used in) provided by investing activities | (14,733) | (48,981) | (342,945) |
Cash flow from financing activities: | |||
Proceeds from issuance of senior notes | 350,000 | 600,000 | |
Debt issuance costs for senior notes | (35) | (3,175) | (4,739) |
Proceeds from loans payable | |||
Debt issuance costs for loans payable | |||
Principal Payments of Loans Payable | |||
Repayments of senior notes | (300,000) | (267,960) | |
Proceeds from Issuance of Common Stock | |||
Proceeds from stock-based benefit plans | |||
Excess tax benefits from stock-based compensation | |||
Purchase of treasury stock | |||
Receipts (payments) related to noncontrolling interest, net | |||
Payments of Dividends | |||
Investment received intercompany | |||
Intercompany financing advances (to) from consolidated entities | |||
Net cash provided by (used in) financing activities | (35) | 46,825 | 327,301 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | |||
Cash flow (used in) provided by operating activities: | |||
Net cash provided by (used in) operating activities | 105,709 | 100,487 | 279,724 |
Cash flow from investing activities: | |||
Purchase of property and equipment - net | (27,835) | (10,181) | (13,161) |
Purchase of marketable securities | |||
Sale and redemption of marketable securities | 2,000 | 40,242 | |
Payments to Acquire Equity Method Investments | (2,637) | (4,552) | (16,683) |
Return of investments in unconsolidated entities | 32,857 | 23,213 | 63,581 |
Investment in foreclosed real estate and distressed loans | |||
Return of investments in foreclosed real estate and distressed loans | |||
Net increase in cash from purchase of joint venture interest | 3,848 | ||
Acquisition of a business, net of cash acquired | (1,489,116) | ||
Proceeds from Dividends Received | 5,000 | 15,000 | |
Investments paid intercompany | (5,000) | ||
Intercompany investing activites (to) from consolidated entities | |||
Net cash (used in) provided by investing activities | 2,385 | 14,328 | (1,400,137) |
Cash flow from financing activities: | |||
Proceeds from issuance of senior notes | |||
Debt issuance costs for senior notes | |||
Proceeds from loans payable | 550,000 | 400,000 | 1,156,300 |
Debt issuance costs for loans payable | (4,868) | (3,063) | |
Principal Payments of Loans Payable | (714,089) | (113,745) | (704,320) |
Repayments of senior notes | |||
Proceeds from Issuance of Common Stock | |||
Proceeds from stock-based benefit plans | |||
Excess tax benefits from stock-based compensation | |||
Purchase of treasury stock | |||
Receipts (payments) related to noncontrolling interest, net | |||
Payments of Dividends | |||
Investment received intercompany | |||
Intercompany financing advances (to) from consolidated entities | (139,296) | (73,185) | 457,108 |
Net cash provided by (used in) financing activities | (308,253) | 213,070 | 906,025 |
Net increase (decrease) in cash and cash equivalents | (200,159) | 327,885 | (214,388) |
Cash and cash equivalents, beginning of period | 783,599 | 455,714 | 670,102 |
Cash and cash equivalents, end of period | 583,440 | 783,599 | 455,714 |
Non-Guarantor Subsidiaries [Member] | |||
Cash flow (used in) provided by operating activities: | |||
Net cash provided by (used in) operating activities | (12,330) | (78,246) | (102,540) |
Cash flow from investing activities: | |||
Purchase of property and equipment - net | (591) | 734 | (1,913) |
Purchase of marketable securities | |||
Sale and redemption of marketable securities | 10,000 | ||
Payments to Acquire Equity Method Investments | (67,018) | (119,388) | (96,346) |
Return of investments in unconsolidated entities | 14,949 | 16,553 | 10,264 |
Investment in foreclosed real estate and distressed loans | (1,133) | (2,624) | (2,089) |
Return of investments in foreclosed real estate and distressed loans | 49,619 | 37,625 | 53,130 |
Net increase in cash from purchase of joint venture interest | |||
Acquisition of a business, net of cash acquired | |||
Proceeds from Dividends Received | |||
Investments paid intercompany | |||
Intercompany investing activites (to) from consolidated entities | |||
Net cash (used in) provided by investing activities | 5,826 | (67,100) | (36,954) |
Cash flow from financing activities: | |||
Proceeds from issuance of senior notes | |||
Debt issuance costs for senior notes | |||
Proceeds from loans payable | 1,893,496 | 1,554,432 | 1,073,071 |
Debt issuance costs for loans payable | |||
Principal Payments of Loans Payable | (1,783,496) | (1,545,713) | (1,062,795) |
Repayments of senior notes | |||
Proceeds from Issuance of Common Stock | |||
Proceeds from stock-based benefit plans | |||
Excess tax benefits from stock-based compensation | |||
Purchase of treasury stock | |||
Receipts (payments) related to noncontrolling interest, net | 404 | (785) | 172 |
Payments of Dividends | (5,000) | (15,000) | |
Investment received intercompany | 5,000 | ||
Intercompany financing advances (to) from consolidated entities | (189,019) | 142,205 | 171,777 |
Net cash provided by (used in) financing activities | (78,615) | 150,139 | 167,225 |
Net increase (decrease) in cash and cash equivalents | (85,119) | 4,793 | 27,731 |
Cash and cash equivalents, beginning of period | 135,394 | 130,601 | 102,870 |
Cash and cash equivalents, end of period | 50,275 | 135,394 | 130,601 |
Eliminations [Member] | |||
Cash flow (used in) provided by operating activities: | |||
Net cash provided by (used in) operating activities | (19,841) | (9,581) | (16,651) |
Cash flow from investing activities: | |||
Purchase of property and equipment - net | |||
Purchase of marketable securities | |||
Sale and redemption of marketable securities | |||
Payments to Acquire Equity Method Investments | |||
Return of investments in unconsolidated entities | |||
Investment in foreclosed real estate and distressed loans | |||
Return of investments in foreclosed real estate and distressed loans | |||
Net increase in cash from purchase of joint venture interest | |||
Acquisition of a business, net of cash acquired | |||
Proceeds from Dividends Received | (5,000) | (15,000) | |
Investments paid intercompany | 5,000 | ||
Intercompany investing activites (to) from consolidated entities | (308,474) | 78,601 | 645,536 |
Net cash (used in) provided by investing activities | (308,474) | 78,601 | 630,536 |
Cash flow from financing activities: | |||
Proceeds from issuance of senior notes | |||
Debt issuance costs for senior notes | |||
Proceeds from loans payable | |||
Debt issuance costs for loans payable | |||
Principal Payments of Loans Payable | |||
Repayments of senior notes | |||
Proceeds from Issuance of Common Stock | |||
Proceeds from stock-based benefit plans | |||
Excess tax benefits from stock-based compensation | |||
Purchase of treasury stock | |||
Receipts (payments) related to noncontrolling interest, net | |||
Payments of Dividends | 5,000 | 15,000 | |
Investment received intercompany | (5,000) | ||
Intercompany financing advances (to) from consolidated entities | 328,315 | (69,020) | (628,885) |
Net cash provided by (used in) financing activities | 328,315 | (69,020) | (613,885) |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor Infor116
Supplemental Guarantor Information (Level 4 Textuals) (Details) - USD ($) $ in Thousands | Oct. 31, 2016 | Oct. 31, 2015 |
Entity Information [Line Items] | ||
Inventory | $ 7,353,967 | $ 6,997,516 |
Subsidiary Issuer [Member] | ||
Entity Information [Line Items] | ||
Subsidiary of Company, Ownership Percentage by Parent | 100.00% | |
Inventory | ||
Guarantor Subsidiaries [Member] | ||
Entity Information [Line Items] | ||
Subsidiary of Company, Ownership Percentage by Parent | 100.00% | |
Inventory | $ 6,896,205 | $ 6,530,698 |
Summary Consolidated Quarter117
Summary Consolidated Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2014 | |
Quarterly Summary of Income Statement Data [Abstract] | |||||||||||
Revenues | $ 1,855,451 | $ 1,269,934 | $ 1,115,557 | $ 928,566 | $ 1,437,202 | $ 1,028,011 | $ 852,583 | $ 853,452 | $ 5,169,508 | $ 4,171,248 | $ 3,911,602 |
Gross Profit | 285,684 | 278,518 | 244,986 | 216,255 | 320,870 | 203,617 | 174,071 | 203,420 | |||
Income before income taxes | 168,160 | 163,653 | 140,397 | 116,817 | 217,543 | 107,464 | 86,532 | 124,023 | 589,027 | 535,562 | 504,582 |
Net income | $ 114,378 | $ 105,483 | $ 89,054 | $ 73,180 | $ 147,163 | $ 66,749 | $ 67,930 | $ 81,325 | $ 382,095 | $ 363,167 | $ 340,032 |
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share, Basic | $ 0.70 | $ 0.64 | $ 0.53 | $ 0.42 | $ 0.83 | $ 0.38 | $ 0.38 | $ 0.46 | $ 2.27 | $ 2.06 | $ 1.91 |
Earnings Per Share, Diluted | $ 0.67 | $ 0.61 | $ 0.51 | $ 0.40 | $ 0.80 | $ 0.36 | $ 0.37 | $ 0.44 | $ 2.18 | $ 1.97 | $ 1.84 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||||||||
Basic weighted-average shares | 163,970 | 165,919 | 168,952 | 174,205 | 176,370 | 176,797 | 176,458 | 176,076 | 168,261 | 176,425 | 177,578 |
Weighted Average Number of Shares Outstanding, Diluted | 171,683 | 173,405 | 176,414 | 182,391 | 184,736 | 185,133 | 184,838 | 184,107 | 175,973 | 184,703 | 185,875 |
Summary Consolidated Quarterly Financial Data (Textual) [Abstract] | |||||||||||
Stucco, Construction Claims, And Litigation Charge | $ 121,200 | $ 14,700 |