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, 2018 4.0% Senior Notes due December 31, 2018 $ 350,000 6.75% Senior Notes due November 1, 2019 $ 250,000 5.875% Senior Notes due February 15, 2022 $ 419,876 4.375% Senior Notes due April 15, 2023 $ 400,000 5.625% Senior Notes due January 15, 2024 $ 250,000 4.875% Senior Notes due November 15, 2025 $ 350,000 4.875% Senior Notes due March 15, 2027 $ 450,000 4.350% Senior Notes due February 15, 2028 $ 400,000 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 Revolving 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 Revolving Credit Facility. If there are no guarantors under the Revolving 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, 2018 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents — — 1,011,863 170,332 — 1,182,195 Inventory 7,493,205 105,014 7,598,219 Property, construction, and office equipment, net 169,265 24,016 193,281 Receivables, prepaid expenses, and other assets 291,299 392,559 (133,080 ) 550,778 Mortgage loans held for sale 170,731 170,731 Customer deposits held in escrow 116,332 1,241 117,573 Investments in unconsolidated entities 44,329 387,484 431,813 Investments in and advances to consolidated entities 4,791,629 2,916,557 91,740 126,872 (7,926,798 ) — 4,791,629 2,916,557 9,218,033 1,378,249 (8,059,878 ) 10,244,590 LIABILITIES AND EQUITY Liabilities Loans payable 686,801 686,801 Senior notes 2,861,375 2,861,375 Mortgage company loan facility 150,000 150,000 Customer deposits 405,318 5,546 410,864 Accounts payable 361,655 443 362,098 Accrued expenses 471 37,341 600,907 462,128 (127,266 ) 973,581 Advances from consolidated entities 1,551,196 476,040 (2,027,236 ) — Income taxes payable 30,959 30,959 Total liabilities 31,430 2,898,716 3,605,877 1,094,157 (2,154,502 ) 5,475,678 Equity Stockholders’ equity Common stock 1,779 48 3,006 (3,054 ) 1,779 Additional paid-in capital 727,053 49,400 93,734 (143,134 ) 727,053 Retained earnings (deficit) 5,161,551 (31,559 ) 5,612,108 178,639 (5,759,188 ) 5,161,551 Treasury stock, at cost (1,130,878 ) (1,130,878 ) Accumulated other comprehensive loss 694 694 Total stockholders’ equity 4,760,199 17,841 5,612,156 275,379 (5,905,376 ) 4,760,199 Noncontrolling interest 8,713 8,713 Total equity 4,760,199 17,841 5,612,156 284,092 (5,905,376 ) 4,768,912 4,791,629 2,916,557 9,218,033 1,378,249 (8,059,878 ) 10,244,590 Consolidating Balance Sheet at October 31, 2017 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents — — 533,204 179,625 — 712,829 Inventory 7,017,331 264,122 7,281,453 Property, construction, and office equipment, net 165,464 24,083 189,547 Receivables, prepaid expenses, and other assets 321,092 297,681 (74,074 ) 544,699 Mortgage loans held for sale 132,922 132,922 Customer deposits held in escrow 96,956 5,061 102,017 Investments in unconsolidated entities 66,897 414,861 481,758 Investments in and advances to consolidated entities 4,589,228 2,514,649 91,740 126,799 (7,322,416 ) — 4,589,228 2,514,649 8,292,684 1,445,154 (7,396,490 ) 9,445,225 LIABILITIES AND EQUITY Liabilities Loans payable 637,416 637,416 Senior notes 2,462,463 2,462,463 Mortgage company loan facility 120,145 120,145 Customer deposits 377,083 18,943 396,026 Accounts payable 271,617 3,606 275,223 Accrued expenses 141 34,345 563,577 440,631 (79,341 ) 959,353 Advances from consolidated entities 1,584,957 659,904 (2,244,861 ) — Income taxes payable 57,893 (384 ) 57,509 Total liabilities 58,034 2,496,808 3,434,650 1,242,845 (2,324,202 ) 4,908,135 Equity Stockholders’ equity Common stock 1,779 48 3,006 (3,054 ) 1,779 Additional paid-in capital 720,115 49,400 93,734 (143,134 ) 720,115 Retained earnings (deficit) 4,474,064 (31,559 ) 4,857,986 99,673 (4,926,100 ) 4,474,064 Treasury stock, at cost (662,854 ) (662,854 ) Accumulated other comprehensive loss (1,910 ) (1,910 ) Total stockholders’ equity 4,531,194 17,841 4,858,034 196,413 (5,072,288 ) 4,531,194 Noncontrolling interest 5,896 5,896 Total equity 4,531,194 17,841 4,858,034 202,309 (5,072,288 ) 4,537,090 4,589,228 2,514,649 8,292,684 1,445,154 (7,396,490 ) 9,445,225 Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2018 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues 6,899,891 453,073 (209,706 ) 7,143,258 Cost of revenues 5,427,753 303,962 (58,708 ) 5,673,007 Selling, general and administrative 77 3,162 709,265 83,003 (111,472 ) 684,035 77 3,162 6,137,018 386,965 (170,180 ) 6,357,042 Income (loss) from operations (77 ) (3,162 ) 762,873 66,108 (39,526 ) 786,216 Other: Income from unconsolidated entities 44,646 40,594 85,240 Other income - net 30,561 (2,950 ) 34,849 62,460 Intercompany interest income 142,084 1,649 4,422 (148,155 ) — Interest expense (138,922 ) (4,422 ) (2,111 ) 145,455 — Income from consolidated subsidiaries 933,993 106,063 (1,040,056 ) — Income (loss) before income taxes 933,916 — 941,370 106,063 (1,047,433 ) 933,916 Income tax provision (benefit) 185,765 187,248 21,097 (208,345 ) 185,765 Net income (loss) 748,151 — 754,122 84,966 (839,088 ) 748,151 Other comprehensive income 2,926 2,926 Total comprehensive income (loss) 751,077 — 754,122 84,966 (839,088 ) 751,077 Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2017 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Revenues 5,668,610 336,671 (190,223 ) 5,815,058 Cost of revenues 4,414,461 223,243 (75,401 ) 4,562,303 Selling, general and administrative 58 4,033 633,000 77,115 (108,634 ) 605,572 58 4,033 5,047,461 300,358 (184,035 ) 5,167,875 Income (loss) from operations (58 ) (4,033 ) 621,149 36,313 (6,188 ) 647,183 Other: Income from unconsolidated entities 12,271 103,795 116,066 Other income - net 10,574 26,653 10,674 3,161 51,062 Intercompany interest income 156,366 48 4,365 (160,779 ) — Interest expense (162,882 ) (4,365 ) (1,819 ) 169,066 — Income from consolidated subsidiaries 803,795 142,779 (946,574 ) — Income (loss) before income taxes 814,311 (10,549 ) 798,535 153,328 (941,314 ) 814,311 Income tax provision (benefit) 278,816 (3,612 ) 273,418 52,500 (322,306 ) 278,816 Net income (loss) 535,495 (6,937 ) 525,117 100,828 (619,008 ) 535,495 Other comprehensive income 1,426 1,426 Total comprehensive income (loss) 536,921 (6,937 ) 525,117 100,828 (619,008 ) 536,921 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 4,984,356 361,685 (176,533 ) 5,169,508 Cost of revenues 3,919,729 288,044 (63,708 ) 4,144,065 Selling, general and administrative 75 3,809 556,558 74,328 (101,652 ) 533,118 75 3,809 4,476,287 362,372 (165,360 ) 4,677,183 Income (loss) from operations (75 ) (3,809 ) 508,069 (687 ) (11,173 ) 492,325 Other: Income from unconsolidated entities 16,913 23,835 40,748 Other income - net 9,501 25,609 17,456 3,388 55,954 Intercompany interest income 145,828 (145,828 ) — Interest expense (151,410 ) (2,203 ) 153,613 — Income from consolidated subsidiaries 579,601 29,010 (608,611 ) — Income (loss) before income taxes 589,027 (9,391 ) 579,601 38,401 (608,611 ) 589,027 Income tax provision (benefit) 206,932 (3,299 ) 203,614 13,490 (213,805 ) 206,932 Net income (loss) 382,095 (6,092 ) 375,987 24,911 (394,806 ) 382,095 Other comprehensive income (loss) (858 ) 31 (827 ) Total comprehensive income (loss) 381,237 (6,092 ) 376,018 24,911 (394,806 ) 381,268 Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2018 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities (4,270 ) 5,439 523,136 68,995 9,101 602,401 Cash flow provided by (used in) investing activities: Purchase of property and equipment — net (28,064 ) (168 ) (28,232 ) Investment in unconsolidated entities (1,676 ) (25,815 ) (27,491 ) Return of investments in unconsolidated entities 29,242 103,948 133,190 Investment in distressed loans and foreclosed real estate (966 ) (966 ) Return of investments in distressed loans and foreclosed real estate 4,765 4,765 Dividends received intercompany — Investment paid intercompany — Intercompany advances 555,741 (401,908 ) (153,833 ) — Net cash provided by (used in) investing activities 555,741 (401,908 ) (498 ) 81,764 (153,833 ) 81,266 Cash flow (used in) provided by financing activities: Proceeds from issuance of senior notes 400,000 400,000 Proceeds from loans payable 590,000 2,040,835 2,630,835 Debt issuance costs (3,531 ) (3,531 ) Principal payments of loans payable (679,184 ) (2,010,980 ) (2,690,164 ) Proceeds from stock-based benefit plans 13,392 13,392 Purchase of treasury stock (503,159 ) (503,159 ) Dividends paid (61,704 ) (61,704 ) Receipts related to noncontrolling interest 30 30 Dividends paid intercompany (6,000 ) 6,000 — Investment received intercompany — Intercompany advances 45,205 (183,937 ) 138,732 — Net cash (used in) provided by financing activities (551,471 ) 396,469 (43,979 ) (160,052 ) 144,732 (214,301 ) Net increase (decrease) in cash and cash equivalents — — 478,659 (9,293 ) — 469,366 Cash and cash equivalents, beginning of period — — 533,204 179,625 — 712,829 Cash and cash equivalents, end of period — — 1,011,863 170,332 — 1,182,195 Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2017 Toll Brothers, Inc. Subsidiary Issuer Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities 201,766 9,955 292,802 469,948 (9,424 ) 965,047 Cash flow provided by (used in) investing activities: Purchase of property and equipment — net (20,439 ) (8,433 ) (28,872 ) Sale and redemption of marketable securities and restricted investments — net 10,631 7,418 18,049 Investment in unconsolidated entities (3,744 ) (118,590 ) (122,334 ) Return of investments in unconsolidated entities 58,610 136,895 195,505 Investment in distressed loans and foreclosed real estate (710 ) (710 ) Return of investments in distressed loans and foreclosed real estate 13,765 13,765 Acquisition of a business (83,088 ) (83,088 ) Investment paid intercompany (45,000 ) 45,000 — Intercompany advances 51,071 226,511 (277,582 ) — Net cash provided by (used in) investing activities 61,702 226,511 (93,661 ) 30,345 (232,582 ) (7,685 ) Cash flow (used in) provided by financing activities: Net proceeds from issuance of senior notes 455,483 455,483 Proceeds from loans payable 250,068 1,370,975 1,621,043 Debt issuance costs (4,449 ) (4,449 ) Principal payments of loans payable (538,527 ) (1,460,830 ) (1,999,357 ) Redemption of senior notes (687,500 ) (687,500 ) Proceeds from stock-based benefit plans 66,000 66,000 Purchase of treasury stock (290,881 ) (290,881 ) Dividends paid (38,587 ) (38,587 ) Investment received intercompany 45,000 (45,000 ) — Intercompany advances 39,082 (326,088 ) 287,006 — Net cash used in financing activities (263,468 ) (236,466 ) (249,377 ) (370,943 ) 242,006 (878,248 ) Net decrease in cash and cash equivalents — — (50,236 ) 129,350 — 79,114 Cash and cash equivalents, beginning of period — — 583,440 50,275 — 633,715 Cash and cash equivalents, end of period — — 533,204 179,625 — 712,829 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 62,579 14,768 116,116 (22,737 ) (19,841 ) 150,885 Cash flow (used in) provided by 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 Dividend received - intercompany 5,000 (5,000 ) — Investment paid intercompany (5,000 ) 5,000 — Intercompany advances 323,207 (14,733 ) (308,474 ) — Net cash (used in) provided by investing activities 323,207 (14,733 ) 2,385 5,826 (308,474 ) 8,211 Cash flow provided by (used in) financing activities: Proceeds from loans payable 550,000 1,893,496 2,443,496 Debt issuance costs (35 ) (4,868 ) (4,903 ) Principal payments of loans payable (714,089 ) (1,783,496 ) (2,497,585 ) Proceeds from stock-based benefit plans 6,986 6,986 Purchase of treasury stock (392,772 ) (392,772 ) Receipts related to noncontrolling interest 404 404 Dividend paid - intercompany (5,000 ) 5,000 — Investment received intercompany 5,000 (5,000 ) — Intercompany advances (149,703 ) (178,612 ) 328,315 — Net cash provided by (used in) financing activities (385,786 ) (35 ) (318,660 ) (68,208 ) 328,315 (444,374 ) Net increase 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 ` |