Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Apr. 30, 2020 | Jun. 03, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-09186 | |
Entity Registrant Name | Toll Brothers, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-2416878 | |
Entity Address, Address Line One | 250 Gibraltar Road | |
Entity Address, City or Town | Horsham | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19044 | |
City Area Code | 215 | |
Local Phone Number | 938-8000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 125,629,000 | |
Entity Central Index Key | 0000794170 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | TOL | |
Security Exchange Name | NYSE | |
Senior Notes Due 2024 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantee of Toll Brothers Finance Corp. 5.625% Senior Notes due 2024 | |
Trading Symbol | TOL/24 | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 741,222 | $ 1,286,014 |
Inventory | 8,195,633 | 7,873,048 |
Property, construction and office equipment, net | 278,518 | 273,412 |
Receivables, prepaid expenses and other assets | 983,094 | 715,441 |
Mortgage loans held for sale | 141,007 | 218,777 |
Customer deposits held in escrow | 74,690 | 74,403 |
Investments in unconsolidated entities | 364,041 | 366,252 |
Income Taxes Receivable | 32,606 | 20,791 |
Total assets | 10,810,811 | 10,828,138 |
Liabilities: | ||
Loans payable | 1,556,572 | 1,111,449 |
Senior notes | 2,660,815 | 2,659,898 |
Mortgage company loan facility | 106,018 | 150,000 |
Customer deposits | 419,653 | 385,596 |
Accounts payable | 350,019 | 348,599 |
Accrued expenses | 998,543 | 950,932 |
Income taxes payable | 105,469 | 102,971 |
Total liabilities | 6,197,089 | 5,709,445 |
Stockholders' equity: | ||
Preferred stock, none issued | 0 | 0 |
Common stock, 152,937 shares issued April 30, 2020 and October 31, 2019, respectively | 1,529 | 1,529 |
Additional paid-in capital | 725,246 | 726,879 |
Retained earnings | 4,878,017 | 4,774,422 |
Treasury stock, at cost - 27,329 and 11,999 shares at April 30, 2020 and October 31, 2019, respectively | (1,034,999) | (425,183) |
Accumulated other comprehensive income | (5,275) | (5,831) |
Total stockholders' equity | 4,564,518 | 5,071,816 |
Noncontrolling interest | 49,204 | 46,877 |
Total equity | 4,613,722 | 5,118,693 |
Total liabilities and stockholders' equity | 10,810,811 | 10,828,138 |
Rental Joint Ventures, including the Trust [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 142,600 | $ 145,800 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares issued | 0 | 0 |
Common stock, shares issued | 152,937 | 152,937 |
Treasury stock, at cost | 27,329 | 11,999 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenues | $ 1,549,072 | $ 1,716,094 | $ 2,880,503 | $ 3,079,275 |
Cost of revenues | 1,277,107 | 1,377,268 | 2,369,289 | 2,453,766 |
Selling, general and administrative | 179,417 | 178,371 | 371,170 | 340,609 |
Income from operations | 92,548 | 160,455 | 140,044 | 284,900 |
Other: | ||||
Income from unconsolidated entities | (4,271) | 4,419 | 7,870 | 10,559 |
Other income - net | 13,836 | 11,285 | 20,131 | 32,146 |
Income before income taxes | 102,113 | 176,159 | 168,045 | 327,605 |
Income tax provision | 26,443 | 46,835 | 35,499 | 86,231 |
Net income | 75,670 | 129,324 | 132,546 | 241,374 |
Other comprehensive income, net of tax: | ||||
Other comprehensive income, net | 278 | 56 | 556 | 112 |
Total comprehensive income | $ 75,948 | $ 129,380 | $ 133,102 | $ 241,486 |
Per share: | ||||
Basic earnings | $ 0.59 | $ 0.88 | $ 1 | $ 1.65 |
Diluted earnings | $ 0.59 | $ 0.87 | $ 0.99 | $ 1.63 |
Weighted average number of shares: | ||||
Basic | 128,205 | 146,622 | 133,175 | 146,687 |
Diluted | 128,809 | 148,129 | 134,349 | 148,081 |
Home Building [Member] | ||||
Revenues | $ 1,516,234 | $ 1,712,057 | $ 2,813,571 | $ 3,031,365 |
Cost of revenues | 1,250,689 | 1,374,347 | 2,310,589 | 2,416,592 |
Land [Member] | ||||
Revenues | 32,838 | 4,037 | 66,932 | 47,910 |
Cost of revenues | $ 26,418 | $ 2,921 | $ 58,700 | $ 37,174 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2018 | $ 4,768,912 | $ 1,779 | $ 727,053 | $ 5,161,551 | $ (1,130,878) | $ 694 | $ 8,713 |
Net income | 241,374 | 241,374 | |||||
Purchase of treasury stock | (25,244) | (25,244) | |||||
Exercise of stock options and stock based compensation issuances | 578 | (19,667) | 20,245 | ||||
Employee stock purchase plan issuances | 720 | 9 | 711 | ||||
Stock-based compensation | 13,916 | 13,916 | |||||
Dividends declared | (32,514) | (32,514) | |||||
Other comprehensive income | 112 | 112 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | (4) | (4) | |||||
Capital contributions | 36,377 | 36,377 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Apr. 30, 2019 | 4,986,240 | 1,779 | 721,311 | 5,352,424 | (1,135,166) | 806 | 45,086 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 31, 2019 | 4,861,189 | 1,779 | 717,405 | 5,239,251 | (1,139,623) | 750 | 41,627 |
Net income | 129,324 | 129,324 | |||||
Purchase of treasury stock | (101) | (101) | |||||
Exercise of stock options and stock based compensation issuances | 2,728 | (1,473) | 4,201 | ||||
Employee stock purchase plan issuances | 405 | 48 | 357 | ||||
Stock-based compensation | 5,331 | 5,331 | |||||
Dividends declared | (16,151) | (16,151) | |||||
Other comprehensive income | 56 | 56 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | (4) | (4) | |||||
Capital contributions | 3,463 | 3,463 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Apr. 30, 2019 | 4,986,240 | 1,779 | 721,311 | 5,352,424 | (1,135,166) | 806 | 45,086 |
Cumulative effect adjustment upon adoption of new accounting pronouncements | (17,987) | (17,987) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Oct. 31, 2019 | 5,118,693 | 1,529 | 726,879 | 4,774,422 | (425,183) | (5,831) | 46,877 |
Net income | 132,546 | 132,546 | |||||
Purchase of treasury stock | (633,553) | (633,553) | |||||
Exercise of stock options and stock based compensation issuances | 4,573 | (17,828) | 22,401 | ||||
Employee stock purchase plan issuances | 729 | (607) | 1,336 | ||||
Stock-based compensation | 16,802 | 16,802 | |||||
Dividends declared | (28,951) | (28,951) | |||||
Other comprehensive income | 556 | 556 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | (8) | (8) | |||||
Capital contributions | 2,335 | 2,335 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Apr. 30, 2020 | 4,613,722 | 1,529 | 725,246 | 4,878,017 | (1,034,999) | (5,275) | 49,204 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 31, 2020 | 4,705,080 | 1,529 | 723,109 | 4,816,286 | (879,820) | (5,553) | 49,529 |
Net income | 75,670 | 75,670 | |||||
Purchase of treasury stock | (157,529) | (157,529) | |||||
Exercise of stock options and stock based compensation issuances | 643 | (716) | 1,359 | ||||
Employee stock purchase plan issuances | 425 | (566) | 991 | ||||
Stock-based compensation | 3,419 | 3,419 | |||||
Dividends declared | (13,939) | (13,939) | |||||
Other comprehensive income | 278 | 278 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | (7) | (7) | |||||
Capital contributions | (318) | (318) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Apr. 30, 2020 | $ 4,613,722 | $ 1,529 | $ 725,246 | $ 4,878,017 | $ (1,034,999) | $ (5,275) | $ 49,204 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Cash flow provided by (used in) operating activities: | ||
Net income | $ 132,546 | $ 241,374 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 30,285 | 33,314 |
Stock-based compensation | 16,802 | 13,916 |
Income (Loss) from unconsolidated entities | (7,870) | (10,559) |
Distributions of earnings from unconsolidated entities | 16,427 | 13,835 |
Income from foreclosed real estate and distressed loans | (477) | (351) |
Deferred tax (benefit) provision | 2,309 | 2,557 |
Inventory impairments and write-offs | 15,245 | 26,956 |
Gain on sales of golf club property and an office building | (12,970) | (13,331) |
Other | 604 | 254 |
Changes in operating assets and liabilities | ||
Increase in inventory | (247,104) | (215,141) |
Origination of mortgage loans | (745,847) | (673,032) |
Sale of mortgage loans | 823,354 | 720,231 |
(Increase) decrease in receivables, prepaid expenses and other assets | (173,249) | (94,837) |
Increase (Decrease) in Income Taxes Receivable | (11,815) | |
Increase in customer deposits, net | 33,271 | 28,726 |
Decrease in accounts payable and accrued expenses | (62,647) | (142,959) |
Decrease in income taxes payable | (16,631) | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (191,136) | (85,678) |
Cash flow (used in) provided by investing activities: | ||
Purchase of property and equipment - net | (50,757) | (44,941) |
Investments in and advances to unconsolidated entities | (10,263) | (31,560) |
Return of investments in unconsolidated entities | 34,884 | 70,465 |
Investment in distressed loans and foreclosed real estate | (272) | (522) |
Return of investments in distressed loans and foreclosed real estate | 1,431 | 1,214 |
Proceeds from sales of golf club property and an office building | 15,617 | 33,539 |
Acquisition of a business | (60,349) | |
Net Cash (Used in) Provided By Investing Activities, Continuing Operations | (69,709) | 28,195 |
Cash flow used in financing activities: | ||
Proceeds from loans payable | 2,732,493 | 1,339,641 |
Debt issuance costs for loans payable | (1,948) | |
Repayments of loans payable | (2,354,113) | (1,131,795) |
Redemption of senior notes | (350,000) | |
(Payments) proceeds from stock-based benefit plans | 5,305 | 1,302 |
Purchase of treasury stock | (633,553) | (25,244) |
Dividends paid | (28,783) | (32,434) |
Proceeds from (Payments to) Noncontrolling Interests | (936) | 13 |
Net Cash Used in Financing Activities, Continuing Operations | (279,587) | (200,465) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (540,432) | (257,948) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 1,319,643 | 1,182,939 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | $ 779,211 | $ 924,991 |
Supplemental Disclosure to Cond
Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows | 6 Months Ended |
Apr. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure to Statements of Cash Flows | Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows The following are supplemental disclosures to the Condensed Consolidated Statements of Cash Flows, for the periods indicated (amounts in thousands): Six months ended April 30, 2020 2019 Cash flow information: Interest paid, net of amount capitalized $ 13,999 Interest capitalized, net of amount paid $ 11,178 Income tax payments $ 46,375 $ 101,232 Income tax refunds $ 1,370 $ 927 Noncash activity: Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses, net $ 26,717 $ 110,269 Increase in inventory for capitalized interest, our share of earnings, and allocation of basis difference in land purchased from unconsolidated entities, net $ (120) $ (4,276) Increase in receivables, prepaid expenses, and other assets and accrued expenses related to the adoption of ASU 2016-02 and other lease activity $ 122,269 Reclassification from inventory to property, construction, and office equipment, net due to the adoption of ASC 606 $ 104,807 Net decrease in inventory and retained earnings due to the adoption of ASC 606 $ 8,989 Net increase in accrued expenses and decrease in retained earnings due to the adoption of ASC 606 $ 6,541 Net decrease in investment in unconsolidated entities and retained earnings due to the adoption of ASC 606 $ 2,457 Noncontrolling interest $ 3,262 $ 36,362 Transfer of other assets to inventory $ 7,100 Transfer of other assets to investment in unconsolidated entities, net $ 31,758 $ 11,656 Acquisition of a Business: Fair value of assets purchased $ 61,906 Liabilities assumed $ 1,557 Cash paid $ 60,349 At April 30, 2020 2019 Cash, cash equivalents, and restricted cash Cash and cash equivalents $ 741,222 $ 924,448 Restricted cash included in receivables, prepaid expenses, and other assets 37,989 543 Total cash, cash equivalents, and restricted cash shown in the Condensed Consolidated $ 779,211 $ 924,991 |
Supplemental Disclosure to Co_2
Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows | 6 Months Ended |
Apr. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental disclosures to the statements of cash flows | The following are supplemental disclosures to the Condensed Consolidated Statements of Cash Flows, for the periods indicated (amounts in thousands): Six months ended April 30, 2020 2019 Cash flow information: Interest paid, net of amount capitalized $ 13,999 Interest capitalized, net of amount paid $ 11,178 Income tax payments $ 46,375 $ 101,232 Income tax refunds $ 1,370 $ 927 Noncash activity: Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses, net $ 26,717 $ 110,269 Increase in inventory for capitalized interest, our share of earnings, and allocation of basis difference in land purchased from unconsolidated entities, net $ (120) $ (4,276) Increase in receivables, prepaid expenses, and other assets and accrued expenses related to the adoption of ASU 2016-02 and other lease activity $ 122,269 Reclassification from inventory to property, construction, and office equipment, net due to the adoption of ASC 606 $ 104,807 Net decrease in inventory and retained earnings due to the adoption of ASC 606 $ 8,989 Net increase in accrued expenses and decrease in retained earnings due to the adoption of ASC 606 $ 6,541 Net decrease in investment in unconsolidated entities and retained earnings due to the adoption of ASC 606 $ 2,457 Noncontrolling interest $ 3,262 $ 36,362 Transfer of other assets to inventory $ 7,100 Transfer of other assets to investment in unconsolidated entities, net $ 31,758 $ 11,656 Acquisition of a Business: Fair value of assets purchased $ 61,906 Liabilities assumed $ 1,557 Cash paid $ 60,349 At April 30, 2020 2019 Cash, cash equivalents, and restricted cash Cash and cash equivalents $ 741,222 $ 924,448 Restricted cash included in receivables, prepaid expenses, and other assets 37,989 543 Total cash, cash equivalents, and restricted cash shown in the Condensed Consolidated $ 779,211 $ 924,991 |
Supplemental Disclosure to Co_3
Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Nov. 01, 2018 | |
Cash flow information: | |||
Interest paid, net of amount capitalized | $ 13,999 | ||
Interest Capitalized Net of Amounts Paid | 11,178 | ||
Income tax payment | 46,375 | 101,232 | |
Income tax refunds | 1,370 | 927 | |
Noncash activity: | |||
Cost of inventory acquired through seller financing, municpal bonds, or included in accrued expenses, net | 26,717 | 110,269 | |
(Increase) decrease in inventory for capitalized interest, our share of earnings, and allocation of basis difference in land purchased from unconsolidated entities | (120) | (4,276) | |
Increase in receivables, prepaid expenses, and other assets and accrued expenses related to the adoption of ASU-2016-02 and other lease activity | 122,269 | ||
Noncontrolling interest | 3,262 | 36,362 | |
Noncash transfer of other assets to inventory | 7,100 | ||
Noncash transfer of other assets to investment in unconsolidated entities | 31,758 | 11,656 | |
Cash and Cash Equivalents, at Carrying Value | 741,222 | 924,448 | |
Restricted Cash and Cash Equivalents | 37,989 | 543 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 779,211 | 924,991 | |
Business Combinations [Abstract] | |||
Fair Value of Assets Acquired | 61,906 | ||
Liabilities Assumed | 1,557 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 60,349 | ||
Accounting Standards Update 2014-09 [Member] | |||
Noncash activity: | |||
Reclassification from inventory to property, construction, and office equipment, net due to the adoption of ASC 606 | $ 104,807 | ||
Net decrease in inventory and retained earnings for adoption of ASC 606 | 8,989 | ||
Net increase in accrued expenses and decrease in retained earnings due to adoption of ASC 606 | 6,541 | ||
Net decrease in investment in unconsolidated entities and retained earnings due to adoption of ASC 606 | $ 2,457 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Basis of Presentation The accompanying condensed 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The October 31, 2019 balance sheet amounts and disclosures included herein have been derived from our October 31, 2019 audited financial statements. Since the accompanying condensed consolidated financial statements do not include all the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements, they should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2019 (“2019 Form 10-K”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly our financial position as of April 30, 2020; the results of our operations and changes in equity for the six-month and three-month periods ended April 30, 2020 and 2019; and our cash flows for the six-month periods ended April 30, 2020 and 2019. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. Use of Estimates - The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. In times of economic disruption when uncertainty regarding future economic conditions is heightened, these estimates and assumptions are subject to greater variability. The Company is currently subject to risks and uncertainties resulting from the novel coronavirus (COVID-19) pandemic, which has adversely impacted our results of operations in the second quarter of fiscal 2020, and is likely to continue to impact our results of operations as well as our business operations. As a result, actual results could differ from the estimates and assumptions we make that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes, and such differences may be material. Revenue Recognition Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home. To the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of April 30, 2020, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $419.7 million and $385.6 million at April 30, 2020 and October 31, 2019, respectively. Of the outstanding customer deposits held as of October 31, 2019, we recognized $176.7 million and $91.0 million in home sales revenues during the six months and three months ended April 30, 2020, respectively. Land sales revenues: Our revenues from land sales generally consist of: (1) lot sales to third-party builders within our master planned communities; (2) land sales to joint ventures in which we retain an interest; and (3) bulk sales to third parties of land we have decided no longer meets our development criteria. In general, our performance obligation for each of these land sales is fulfilled upon the delivery of the land, which generally coincides with the receipt of cash consideration from the counterparty. For land sale transactions that contain repurchase options, revenues and related costs are not recognized until the repurchase option expires. In addition, when we sell land to a joint venture in which we retain an interest, we do not recognize revenue or gains on the sale to the extent of our retained interest in such joint venture. Forfeited Customer Deposits: Forfeited customer deposits are recognized in “Home sales revenues” in our Condensed 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 may offer our home buyers sales incentives. These incentives vary by type and amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds. Recent Accounting Pronouncements 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. In July 2018, the FASB issued ASU No. 2018-11, “Leases: Targeted Improvements” (“ASU 2018-11”), which provides an entity with the option to apply the transition provisions of the new standard at its adoption date instead of at its earliest comparative period presented. ASU 2018-11 also provides an entity with a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. ASU 2016-02, as amended by ASU 2018-11, became effective for our fiscal year beginning November 1, 2019, and we adopted the new standard using a modified retrospective approach. The prior year period was not recast and our Condensed Consolidated Balance Sheet as of October 31, 2019 does not reflect any changes resulting from the adoption of the new standard. We elected to apply the transition provisions that allow us to carry forward our historical assessment of (1) whether contracts are or contain leases, (2) lease classification, and (3) initial direct costs. In addition, we elected the practical expedient that allows lessees the option to account for lease and non-lease components together as a single component for all classes of underlying assets. As a result of the adoption, we recorded a right-of-use (“ROU”) asset and lease liability of $114.5 million and $118.5 million, respectively, as of November 1, 2019. The ROU asset is included in “Receivables, prepaid expenses, and other assets” and the corresponding lease liability is included in “Accrued expenses” in our Condensed Consolidated Balance Sheet. The adoption of ASU 2016-02 had no impact on retained earnings and did not materially impact our Condensed Consolidated Statements of Operations and Comprehensive Income or Condensed Consolidated Statements of Cash Flows. 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 will be effective for our fiscal year beginning November 1, 2020, with early adoption permitted as of November 1, 2019. We are currently evaluating the impact that the adoption of ASU 2016-13 may have on our consolidated financial statements and disclosures. |
Acquisition
Acquisition | 6 Months Ended |
Apr. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions In our second quarter of fiscal 2020, we acquired substantially all of the assets and operations of Thrive Residential (“Thrive”), an urban in-fill builder with operations in Atlanta, Georgia and Nashville, Tennessee, for approximately $60.3 million in cash. The assets acquired, based on our preliminary purchase price allocation, were primarily inventory for future communities, including approximately 680 home sites owned or controlled through land purchase agreements. During fiscal 2019, we acquired substantially all of the assets and operations of Sharp Residential, LLC (“Sharp”) and Sabal Homes LLC (“Sabal”), respectively, for an aggregate of approximately $162.4 million in cash. Sharp operates in metropolitan Atlanta, Georgia; Sabal operates in the Charleston, Greenville, and Myrtle Beach, South Carolina markets. The assets acquired, based on our purchase price allocations, which we finalized in the second quarter of fiscal 2020, were primarily inventory, including approximately 2,550 home sites owned or controlled through land purchase agreements. There were no significant adjustments between the preliminary and final purchase price allocations. In connection with these acquisitions, we assumed contracts to deliver 204 homes with an aggregate value of $96.1 million. The average price of undelivered homes at the dates of acquisitions was approximately $471,100. As a result of these acquisitions, our selling community count increased by 22 communities. The acquisitions discussed above were accounted for as a business combination and were not material to our results of operations or financial condition. |
Inventory
Inventory | 6 Months Ended |
Apr. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory at April 30, 2020 and October 31, 2019 consisted of the following (amounts in thousands): April 30, October 31, Land controlled for future communities $ 219,432 $ 182,929 Land owned for future communities 1,043,335 868,202 Operating communities 6,932,866 6,821,917 $ 8,195,633 $ 7,873,048 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 period 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, 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. Information regarding the classification, number, and carrying value of these temporarily closed communities, as of the dates indicated, is provided in the table below: April 30, October 31, Land owned for future communities: Number of communities 15 16 Carrying value (in thousands) $ 113,168 $ 120,857 Operating communities: Number of communities 1 1 Carrying value (in thousands) $ 5,824 $ 2,871 The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, are shown in the table below (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Land controlled for future communities (1) $ 12,840 $ 3,676 $ 11,809 $ 1,899 Land owned for future communities 2,105 2,105 Operating communities 300 23,280 300 17,495 $ 15,245 $ 26,956 $ 14,214 $ 19,394 (1) The six-month and three-month periods ended April 30, 2020, include a $10.7 million impairment charge related to a land purchase agreement located in our Mid-Atlantic segment, which we terminated. See Note 12, “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 values of those communities, net of impairment charges. See Note 14, “Commitments and Contingencies,” for information regarding land purchase commitments. At April 30, 2020, we evaluated our land purchase contracts, including those to acquire land for apartment developments, to determine whether 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 predevelopment costs incurred; and the creditors of the sellers generally have no recourse against us. At April 30, 2020, we determined that 131 land purchase contracts, with an aggregate purchase price of $2.15 billion, on which we had made aggregate deposits totaling $171.2 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2019, we determined that 127 land purchase contracts, with an aggregate purchase price of $2.00 billion, on which we had made aggregate deposits totaling $149.2 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, for the periods indicated, was as follows (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Interest capitalized, beginning of period $ 311,323 $ 319,364 $ 320,751 $ 330,167 Interest incurred 89,754 87,862 46,104 43,440 Interest expensed to home sales cost of revenues (70,811) (79,227) (38,037) (44,786) Interest expensed to land sales cost of revenues (1,304) (635) (737) (283) Interest expensed in other income (2,440) (2,440) Interest capitalized on investments in unconsolidated entities (1,778) (3,084) (897) (1,270) Previously capitalized interest on investments in unconsolidated entities transferred to inventory 120 4,303 120 1,315 Interest capitalized, end of period $ 324,864 $ 328,583 $ 324,864 $ 328,583 |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 6 Months Ended |
Apr. 30, 2020 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities We have investments in various unconsolidated entities. These entities, which are structured as 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 and land banking to residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”). The table below provides information as of April 30, 2020, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands): Land Home Building Rental Property Gibraltar Total Number of unconsolidated entities 8 4 22 7 41 Investment in unconsolidated entities $ 103,301 $ 42,961 $ 197,377 $ 20,402 $ 364,041 Number of unconsolidated entities with funding commitments by the Company 2 — 3 1 6 Company’s remaining funding commitment to unconsolidated entities $ 27,530 $ — $ 11,514 $ 6,232 $ 45,276 Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at April 30, 2020, regarding the debt financing obtained by category ($ amounts in thousands): Land Home Building Rental Property Total Number of joint ventures with debt financing 3 1 20 24 Aggregate loan commitments $ 110,842 $ 62,384 $ 1,516,624 $ 1,689,850 Amounts borrowed under loan commitments $ 95,900 $ 62,384 $ 1,082,342 $ 1,240,626 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 six months ended April 30, 2020, our Land Development Joint Ventures sold approximately 333 lots and recognized revenues of $43.9 million. We acquired 86 of these lots for $7.8 million. During the six months ended April 30, 2019, our Land Development Joint Ventures sold approximately 498 lots and recognized revenues of $138.8 million. We acquired 195 of these lots for $96.5 million. Our share of the joint venture income from the lots we acquired was insignificant. During the three months ended April 30, 2020, our Land Development Joint Ventures sold approximately 169 lots and recognized revenues of $19.3 million. We acquired 44 of these lots for $4.3 million. During the three months ended April 30, 2019, our Land Development Joint Ventures sold approximately 297 lots and recognized revenues of $49.0 million. We acquired 88 of these lots for $25.3 million. Our share of the joint venture income from the lots we acquired was insignificant. Home Building Joint Ventures During the six months ended April 30, 2020 and 2019, our Home Building Joint Ventures delivered 32 homes with a sales value of $91.4 million and 72 homes with a sales value of $121.8 million, respectively. During the three months ended April 30, 2020 and 2019, our Home Building Joint Ventures delivered 9 homes with a sales value of $24.3 million and 55 homes with a sales value of $94.6 million, respectively. We recognized an other than temporary impairment charge in connection with one Home Building Joint Venture of $3.0 million during the six months and three months ending April 30, 2020, which is included in “Income from unconsolidated entities” in our Condensed Consolidated Statements of Operations and Comprehensive Income. No charges were recognized in the six-month or three-month periods ending April 30, 2019. In our first quarter of fiscal 2020, one of our Home Building Joint Ventures refinanced its existing $236.5 million construction loan with a $76.6 million post-construction loan that extended the maturity date of the loan to November 2021 and revised certain guarantees provided for under the original construction loan. At April 30, 2020, this joint venture had $62.4 million of borrowings outstanding under the post-construction loan. Rental Property Joint Ventures As of April 30, 2020, our Rental Property Joint Ventures, including those that we consolidate, owned 25 for-rent apartment projects and a hotel, which are located in multiple metropolitan areas throughout the country. At April 30, 2020, these joint ventures had approximately 2,000 units that were occupied or ready for occupancy, 1,850 units in the lease-up stage, and 4,200 units in the design phase or under development. In addition, we either own, have under contract, or under a letter of intent approximately 13,050 units, including 200 units under active development; we intend to develop these units in joint ventures with unrelated parties in the future. In the first quarter of fiscal 2020, we sold all of our ownership interest in one of our Rental Property Joint Ventures to our partner for cash of $16.8 million, net of closing costs. The joint venture had owned, developed, and operated multifamily residential apartments in northern New Jersey. In connection with the sale, the joint venture’s existing $76.0 million loan was assumed by our partner. We recognized a gain of $10.7 million in the six months ended April 30, 2020, which is included in “Income from unconsolidated entities” in our Condensed Consolidated Statements of Operations and Comprehensive Income. In the second quarter of fiscal 2020, a joint venture that we had previously consolidated due to our controlling financial interest entered into a separate unconsolidated joint venture to admit an unrelated capital member that acquired a 75% interest for an aggregate amount of $19.1 million. This unconsolidated joint venture purchased the assets of the consolidated joint venture and we recognized a gain on land sale of $0.9 million in the six and three months ended April 30, 2020. This unconsolidated joint venture is developing a luxury for-rent residential apartment project located in suburban Boston, Massachusetts. At April 30, 2020, we had an aggregate investment of $7.0 million in the unconsolidated joint venture. Concurrent with its formation, the unconsolidated joint venture entered into a construction loan agreement for an aggregate amount of $75.4 million to finance the development of this project. At April 30, 2020, the unconsolidated joint venture had no outstanding borrowings under this construction loan facility. In the first quarter of fiscal 2020, we entered into two separate joint ventures with unrelated parties to develop (i) a luxury for-rent residential apartment project located in Dallas, Texas and (ii) a student housing community in State College, Pennsylvania. Prior to the formation of these joint ventures, we acquired the properties and incurred an aggregate of approximately $51.0 million of land and land development costs. Our partners acquired interests in these entities ranging from 50% to 70% for an aggregate amount of $26.2 million. At April 30, 2020, we had an aggregate investment of $24.9 million in these joint ventures. Concurrent with their formation, these joint ventures entered into construction loan agreements for an aggregate amount of $121.5 million to finance the development of these projects. At April 30, 2020, the joint ventures had $11.4 million outstanding borrowings under these construction loan facilities. In the first quarter of fiscal 2019, we entered into two separate joint ventures with unrelated parties to develop luxury for-rent residential apartment projects located in Harrison, New York and Frisco, Texas. Prior to the formation of these joint ventures, we acquired the properties and incurred approximately $41.9 million of land and land development costs. Our partners each acquired a 75% interest in these entities for an aggregate amount of $39.8 million and we recognized a gain on land sale of $8.4 million in the six months ended April 30, 2019. At April 30, 2020, we had an aggregate investment of $15.7 million in these joint ventures. Concurrent with their formation, these joint ventures entered into construction loan agreements for an aggregate amount of $134.4 million. At April 30, 2020, the joint ventures had $62.6 million outstanding borrowings under these construction loan facilities. In fiscal 2019 and 2018, we entered into five separate joint ventures with unrelated parties to develop luxury for-rent residential apartment projects and student housing communities located in Boston, Massachusetts, San Diego, California, Tempe, Arizona and Miami, Florida. We contributed an aggregate of $95.5 million for our initial ownership interests in these joint ventures, which ranged from 50% to 98%. Due to our controlling financial interest, our power to direct the activities that most significantly impact each joint venture’s performance, and/or our obligation to absorb expected losses or receive benefits from these joint ventures, we consolidated these joint ventures at April 30, 2020 and October 31, 2019. The carrying value of these joint ventures’ assets totaling $142.6 million and $145.8 million are reflected in “Receivables, prepaid expenses, and other assets” in our Condensed Consolidated Balance Sheet as of April 30, 2020 and October 31, 2019, respectively. Our partners’ interests aggregating $42.3 million and $41.0 million in the joint ventures are reflected as a component of “Noncontrolling interest” in our Condensed Consolidated Balance Sheet as of April 30, 2020 and October 31, 2019, respectively. These joint ventures intend to obtain additional equity investors and secure third-party financing at a later date. At such time, it is expected that these entities would no longer be consolidated. In fiscal 2019, we entered into a joint venture with unrelated parties to develop, build, and operate single-family rental communities. As of April 30, 2020, we have invested $2.4 million in this joint venture and have committed to invest up to $60.0 million. 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 April 30, 2020, 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 amount of $0.5 million in each of the six-month periods ended April 30, 2020 and 2019. Gibraltar Joint Ventures We, through our wholly owned subsidiary, Gibraltar Capital and Asset Management, LLC (“Gibraltar”), have entered into six ventures with an institutional investor to provide builders and developers with land banking and venture capital. These ventures will finance builders’ and developers’ acquisition and development of land and home sites and pursue other complementary investment strategies. We also are a member in a separate venture with the same institutional investor, which purchased, from Gibraltar, certain foreclosed real estate owned and distressed loans in fiscal 2016. Our ownership interest in these ventures is approximately 25%. We may invest up to $100.0 million in these ventures. As of April 30, 2020, we had an aggregate investment of $20.4 million in these ventures. 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 a 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 April 30, 2020, 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 April 30, 2020, certain unconsolidated entities have loan commitments aggregating $1.35 billion, of which, if the full amount of the debt obligations were borrowed, we estimate $190.6 million to be our maximum exposure related to repayment and carry cost guarantees. At April 30, 2020, the unconsolidated entities had borrowed an aggregate of $897.7 million, of which we estimate $137.2 million to be our maximum exposure related to repayment and carry cost guarantees. The terms of these guarantees generally range from 4 months to 4.0 years. These maximum exposure estimates do not take into account any recoveries from the underlying collateral or any reimbursement from our partners. As of April 30, 2020, the estimated aggregate fair value of the guarantees provided by us related to debt and other obligations of certain unconsolidated entities was approximately $5.1 million. We have not made payments under any of the guarantees, nor have we been called upon to do so. Variable Interest Entities At April 30, 2020 and October 31, 2019, we determined that 16 and 18 of our joint ventures, respectively, were VIEs under the guidance of ASC 810, “Consolidation.” For 11 and 13 of these VIEs as of April 30, 2020 and October 31, 2019, respectively, we concluded that we were not the primary beneficiary of these VIEs because the power to direct the activities of such VIEs that most significantly impact their performance was either shared by us and such 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 the 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. As of April 30, 2020, we have consolidated five Rental Property Joint Ventures. The carrying value of these joint ventures’ assets totaling $142.6 million is reflected in “Receivables, prepaid expenses, and other assets” in our Condensed Consolidated Balance Sheet as of April 30, 2020. Our partners’ interests aggregating $42.3 million in the joint ventures are reflected as a component of “Noncontrolling interest” in our Condensed Consolidated Balance Sheet as of April 30, 2020. These joint ventures were determined to be VIEs due to their current inability to finance their activities without additional subordinated financial support as well as our partners’ inability to participate in the significant decisions of the joint venture and their lack of substantive kick-out rights. We further concluded that we are the primary beneficiary of these VIEs due to our controlling financial interest in such ventures as we have the power to direct the activities that most significantly impact the joint ventures’ performance and the obligation to absorb expected losses or receive benefits from the joint ventures. The assets of these VIEs can only be used to settle the obligations of the VIEs. In addition, in certain of the joint ventures, in the event additional contributions are required to be funded to the joint ventures prior to the admission of any additional investor at a future date, we will fund 100% of such contributions, including our partner’s pro rata share, which we expect would be funded through an interest-bearing loan. At April 30, 2020 and October 31, 2019, our investments in the unconsolidated entities deemed to be VIEs totaled $43.4 million and $37.0 million, respectively. At April 30, 2020 and October 31, 2019, the maximum exposure of loss to our investments in these entities was limited to our investments in the unconsolidated VIEs, except with regard to $42.0 million and $76.0 million, respectively, of loan guarantees and $14.9 million and $8.3 million, respectively, of additional commitments to the VIEs. Of our potential exposure for these loan guarantees at April 30, 2020 and October 31, 2019, $11.1 million and $76.0 million, respectively, is related to loan repayment and carry cost guarantees, of which $1.5 million and $76.0 million was borrowed at April 30, 2020 and October 31, 2019, respectively. Joint Venture Condensed Financial Information The Condensed Balance Sheets, as of the dates indicated, and the Condensed Statements of Operations, for the periods indicated, for the unconsolidated entities in which we have an investment are included below (in thousands): Condensed Balance Sheets: April 30, October 31, Cash and cash equivalents $ 112,569 $ 85,819 Inventory 487,705 579,226 Loans receivable, net 33,287 56,545 Rental properties 1,000,062 1,021,848 Rental properties under development 708,022 535,197 Real estate owned 12,298 12,267 Other assets 170,698 212,761 Total assets $ 2,524,641 $ 2,503,663 Debt, net of deferred financing costs $ 1,229,197 $ 1,226,857 Other liabilities 186,831 175,827 Members’ equity 1,108,232 1,100,563 Noncontrolling interest 381 416 Total liabilities and equity $ 2,524,641 $ 2,503,663 Company’s net investment in unconsolidated entities (1) $ 364,041 $ 366,252 (1) Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of other than temporary impairments related to our investments in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; unrealized gains on our retained joint venture interests; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment. Condensed Statements of Operations: Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Revenues $ 212,282 $ 331,617 $ 79,112 $ 178,388 Cost of revenues 145,349 288,951 50,041 157,196 Other expenses 73,182 41,354 32,066 22,879 Total expenses 218,531 330,305 82,107 180,075 Gain on disposition of loans and real estate owned — 3,694 — — (Loss) income from operations (6,249) 5,006 (2,995) (1,687) Other income (loss) 529 1,737 (84) 1,090 (Loss) income before income taxes (5,720) 6,743 (3,079) (597) Income tax (benefit) provision (147) 225 (287) (40) Net (loss) income including earnings from noncontrolling interests (5,573) 6,518 (2,792) (557) Less: income (loss) attributable to noncontrolling interest — (2,078) — 31 Net (loss) income attributable to controlling interest $ (5,573) $ 4,440 $ (2,792) $ (526) Company’s equity in earnings of unconsolidated entities (1) $ 7,870 $ 10,559 $ (4,271) $ 4,419 (1) Differences between our equity in earnings of unconsolidated entities and the underlying net income of the entities are primarily a result of distributions from entities in excess of the carrying amount of our net investment; other than temporary impairments related to our investments in unconsolidated entities; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gains recognized from the sale of our investment to our joint venture partner; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired. |
Receivables, Prepaid Expenses,
Receivables, Prepaid Expenses, and Other Assets | 6 Months Ended |
Apr. 30, 2020 | |
Receivables, prepaid expenses and other assets [Abstract] | |
Receivables, Prepaid Expenses, and Other Assets [Text Block] | Receivables, Prepaid Expenses, and Other Assets Receivables, prepaid expenses, and other assets at April 30, 2020 and October 31, 2019, consisted of the following (amounts in thousands): April 30, 2020 October 31, 2019 Expected recoveries from insurance carriers and others $ 86,914 $ 114,162 Improvement cost receivable 106,280 100,864 Escrow cash held by our captive title company 36,465 32,863 Properties held for rental apartment and commercial development 532,436 367,072 Prepaid expenses 24,809 26,041 Right-of-use asset (1) 109,458 — Other 86,732 74,439 $ 983,094 $ 715,441 (1) On November 1, 2019, we adopted ASU 2016-02 which resulted in the establishment of a right-of-use asset on our Condensed Consolidated Balance Sheet as of January 31, 2020. The Condensed Consolidated Balance Sheet as of October 31, 2019 does not reflect any changes resulting from the adoption of the new standard. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the adoption of ASU 2016-02. See Note 7, “Accrued Expenses,” for additional information regarding the expected recoveries from insurance carriers and others. As of April 30, 2020 and October 31, 2019, properties held for rental apartment and commercial development include $142.6 million and $145.8 million, respectively, of assets related to consolidated VIEs. See Note 4, “Investments in Unconsolidated Entities” for additional information regarding VIEs. |
Loans Payable, Senior Notes and
Loans Payable, Senior Notes and Mortgage Company Loan Facility | 6 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Loans Payable, Senior Notes, and Mortgage Company Loan Facility | Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable At April 30, 2020 and October 31, 2019, loans payable consisted of the following (amounts in thousands): April 30, October 31, Senior unsecured term loan $ 800,000 $ 800,000 Revolving credit facility borrowings 450,000 — Loans payable – other 309,390 314,577 Deferred issuance costs (2,818) (3,128) $ 1,556,572 $ 1,111,449 Senior Unsecured Term Loan At April 30, 2020, we had an $800.0 million, five-year senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks that is scheduled to expire on November 1, 2024. At April 30, 2020, the interest rate on borrowings was 1.46% 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 Revolving Credit Facility described below. Revolving Credit Facility We have a $1.905 billion, five-year senior unsecured revolving credit facility (the “Revolving Credit Facility”) with a syndicate of banks. The Revolving Credit Facility is scheduled to mature on November 1, 2024. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Revolving Credit Facility. Under the terms of the Revolving Credit Facility, at April 30, 2020, our maximum leverage ratio, as defined, may not exceed 1.75 to 1.00, and we are required to maintain a minimum tangible net worth, as defined, of no less than approximately $2.11 billion. Under the terms of the Revolving Credit Facility, at April 30, 2020, our leverage ratio was approximately 0.75 to 1.00, and our tangible net worth was approximately $4.51 billion. Based upon the limitations related to our repurchase of common stock in the Revolving Credit Facility, our ability to repurchase our common stock was limited to approximately $3.03 billion as of April 30, 2020. In addition, under the provisions of the Revolving Credit Facility, our ability to pay cash dividends was limited to approximately $2.41 billion as of April 30, 2020. At April 30, 2020, we had $450.0 million outstanding borrowings under the Revolving Credit Facility and had approximately $164.8 million of outstanding letters of credit that were issued under the Revolving Credit Facility. At April 30, 2020, the interest rate on borrowings under the Revolving Credit Facility was 1.71% per annum . Subsequent to April 30, 2020, we repaid $100.0 million of the outstanding balance under the Revolving Credit Facility. Loans Payable – Other “Loans payable – other” primarily represents purchase money mortgages on properties we 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. At April 30, 2020, the weighted-average interest rate on “Loans payable – other” was 4.38% per annum. Senior Notes At April 30, 2020, we had seven issues of senior notes outstanding with an aggregate principal amount of $2.67 billion. Mortgage Company Loan Facility In October 2017, TBI Mortgage ® Company (“TBI Mortgage”), our wholly owned mortgage subsidiary, entered into a mortgage warehousing agreement (the “Warehousing Agreement”) with a bank to finance the origination of mortgage loans by TBI Mortgage. The Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” In December 2018, the Warehousing Agreement was amended to provide for loan purchases up to $75.0 million, subject to certain sublimits. In addition, the Warehousing Agreement, as amended, 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 $150.0 million for a short period of time. In December 2019, the Warehousing Agreement was amended to extend the expiration date on substantially the same terms as the existing agreement. The Warehousing Agreement, as amended, expires on December 4, 2020, and borrowings thereunder bear interest at LIBOR plus 1.90% per annum. At April 30, 2020, the interest rate on the Warehousing Agreement, as amended, was 2.27% per annum. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Apr. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses at April 30, 2020 and October 31, 2019 consisted of the following (amounts in thousands): April 30, October 31, Land, land development, and construction $ 180,212 $ 192,658 Compensation and employee benefits 168,959 183,592 Escrow liability 34,113 31,587 Self-insurance 194,969 193,405 Warranty 157,154 201,886 Lease liabilities (1) 127,754 — Deferred income 34,904 51,678 Interest 41,351 31,307 Commitments to unconsolidated entities 8,141 9,283 Other 50,986 55,536 $ 998,543 $ 950,932 (1) On November 1, 2019, we adopted ASU 2016-02 which resulted in the establishment of lease liabilities on our Condensed Consolidated Balance Sheet as of January 31, 2020. The Condensed Consolidated Balance Sheet as of October 31, 2019 does not reflect any changes resulting from the adoption of the new standard. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the adoption of ASU 2016-02. The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Balance, beginning of period $ 201,886 $ 258,831 $ 188,916 $ 237,326 Additions – homes closed during the period 14,278 14,954 7,254 8,329 Addition – liabilities assumed in a business acquisition 60 60 Increase in accruals for homes closed in prior years 3,579 272 2,361 963 Decrease to water intrusion accrual (24,400) (24,400) Charges incurred (38,249) (50,402) (17,037) (22,963) Balance, end of period $ 157,154 $ 223,655 $ 157,154 $ 223,655 Since fiscal 2014, we have received water intrusion claims from owners of homes built since 2002 in communities located in Pennsylvania and Delaware (which are in our North region). During the second quarter of fiscal 2020, we continued to receive water intrusion claims from homeowners in this region, mostly related to older homes, and we continue to perform review procedures to assess, among other things, the number of affected homes, whether repairs are likely to be required, and the extent of such repairs. Our review process, conducted quarterly, includes an analysis of many factors applicable to these communities 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 homes; 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; the expected recovery from our insurance carriers and suppliers; and the previously recorded amounts related to these claims. We also monitor legal developments relating to these types of claims and review the volume, relative merits and adjudication of claims in litigation or arbitration. Since October 31, 2016, our recorded aggregate estimated repair costs to be incurred for known and unknown water intrusion claims has been $324.4 million and our recorded aggregate expected recoveries from insurance carriers and suppliers were approximately $152.6 million. Based on trends in claims experience over the past several years and lower than anticipated repair costs, in the second fiscal quarter of 2020, we reduced the estimate of the aggregate estimated repair costs to be incurred for known and unknown water intrusion claims by $24.4 million. Because this reduction was associated with periods in which we expect our insurance deductibles and self-insured retentions to be exhausted, we reduced our aggregate expected recoveries from insurance carriers and suppliers by a corresponding $24.4 million. Our recorded remaining estimated repair costs, which reflects a reduction for the aggregate amount expended to resolve claims, were approximately $85.1 million at April 30, 2020 and $124.6 million at October 31, 2019. Our recorded remaining expected recoveries from insurance carriers and suppliers were approximately $70.5 million at April 30, 2020 and $97.9 million at October 31, 2019. As noted above, our review process includes a number of estimates that are based on assumptions with uncertain outcomes, including, but not limited to, the number of homes to be repaired, the extent of repairs needed, the repair procedures employed, the cost of those repairs, outcomes of litigation or arbitrations, and expected recoveries from insurance carriers and suppliers. Due to the degree of judgment required in making these estimates and the inherent uncertainty in potential outcomes, it is reasonably possible that our actual costs and recoveries could differ from those recorded and such differences could be material. In addition, due to such uncertainty, we are unable to estimate the range of any such differences. With respect to our insurance receivables, disputes between home builders and carriers over coverage positions relating to construction defect claims are common, and resolution of claims with carriers involves the exchange of significant amounts of information and frequently involves legal action. While our primary insurance carrier has funded substantially all of the water intrusion claims that we have submitted to it to date, other insurance carriers have recently disputed coverage for the same claims under policies that are substantially the same. As a result, we entered arbitration proceedings during the third quarter of fiscal 2019 with these carriers. Based on the legal merits that support our pending insurance claims, review by legal counsel, our history of collecting significant amounts funded by our primary carrier under policies that are substantially the same, and the high credit ratings of our insurance carriers, we believe collection of our remaining recorded insurance receivables is probable. However, due to the complexity of the underlying claims and the variability of the other factors described above, it is reasonably possible that our actual insurance recoveries could materially differ from those recorded. Resolution of these known and unknown claims is expected to take several years. |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax provisions of $35.5 million and $86.2 million for the six months ended April 30, 2020 and 2019, respectively. The effective tax rate was 21.1% for the six months ended April 30, 2020, compared to 26.3% for the six months ended April 30, 2019. For the three months ended April 30, 2020 and 2019, we recorded income tax provisions of $26.4 million and $46.8 million, respectively. The effective tax rate was 25.9% for the three months ended April 30, 2020, compared to 26.6% for the three months ended April 30, 2019. The lower effective tax rate for the six months ended April 30, 2020 was primarily due to a benefit recognized of $6.9 million from the retroactive extension of the federal energy efficient home credit, which was enacted into law on December 20, 2019. The income tax provisions for all periods included the provision for state income taxes, interest accrued on anticipated tax assessments, excess tax benefits related to stock-based compensation, and other permanent differences. We are subject to state tax in the jurisdictions in which we operate. 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 estimate that our state income tax rate for the full fiscal year 2020 will be approximately 5.5%. Our state income tax rate for the full fiscal year 2019 was 6.1%. At April 30, 2020, we had $8.4 million of gross unrecognized tax benefits, including interest and penalties. If these unrecognized tax benefits were to 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 our unrecognized tax benefits will change, but we are not able to provide a range of such change. The possible changes would 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. |
Stock-Based Benefit Plans
Stock-Based Benefit Plans | 6 Months Ended |
Apr. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Benefit Plans | Stock-Based Benefit Plans We grant stock options and various types of restricted stock units to our employees and our nonemployee directors. Additionally, we have an employee stock purchase plan that allows employees to purchase our stock at a discount. Information regarding the amount of total stock-based compensation expense and tax benefit recognized by us, for the periods indicated, is as follows (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Total stock-based compensation expense recognized $ 16,802 $ 13,916 $ 3,419 $ 5,331 Income tax benefit recognized $ 4,278 $ 3,652 $ 870 $ 1,396 At April 30, 2020 and October 31, 2019, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $23.6 million and $18.7 million, respectively. |
Stock Repurchase Program and Ca
Stock Repurchase Program and Cash Dividend | 6 Months Ended |
Apr. 30, 2020 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program [Text Block] | Stock Repurchase Program and Cash Dividends Stock Repurchase Program On March 10, 2020 our Board of Directors terminated our existing 20 million share repurchase program, which was authorized in December 2019, and authorized, under a new repurchase program, the repurchase of 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans. Our Board of Directors did not fix any expiration date for this repurchase program. The table below provides, for the periods indicated, information about our share repurchase programs: Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Number of shares purchased (in thousands) 15,938 788 4,252 3 Average price per share $ 39.75 $ 32.04 $ 37.05 $ 36.95 Remaining authorization at April 30 (in thousands) 19,998 19,784 19,998 19,784 Cash Dividends During the six months ended April 30, 2020 and 2019, we declared and paid cash dividends of $0.22 per share to our shareholders. During the three months ended April 30, 2020 and 2019, we declared and paid cash dividends of $0.11 per share to our shareholders. |
Earnings Per Share Information
Earnings Per Share Information | 6 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Income per Share Information | Earnings per Share Information The table below provides, for the periods indicated, information pertaining to the calculation of earnings per share, common stock equivalents, weighted-average number of antidilutive options, and shares issued (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Numerator: Net income as reported $ 132,546 $ 241,374 $ 75,670 $ 129,324 Denominator: Basic weighted-average shares 133,175 146,687 128,205 146,622 Common stock equivalents (1) 1,174 1,394 604 1,507 Diluted weighted-average shares 134,349 148,081 128,809 148,129 Other information: Weighted-average number of antidilutive options and restricted stock units (2) 2,321 1,690 3,967 756 Shares issued under stock incentive and employee stock purchase plans 608 654 60 144 (1) 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 upon the conversion of restricted stock units under our equity award programs. (2) Weighted-average number of antidilutive options and restricted stock units are based upon the average closing price of our common stock on the New York Stock Exchange for the period. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Disclosures Financial Instruments The table below provides, as of the dates indicated, a summary of assets/(liabilities) related to our financial instruments, measured at fair value on a recurring basis (amounts in thousands): Fair value Financial Instrument Fair value April 30, October 31, 2019 Residential Mortgage Loans Held for Sale Level 2 $ 141,007 $ 218,777 Forward Loan Commitments — Residential Mortgage Loans Held for Sale Level 2 $ (43) $ 298 Interest Rate Lock Commitments (“IRLCs”) Level 2 $ 1,461 $ 964 Forward Loan Commitments — IRLCs Level 2 $ (1,461) $ (964) At April 30, 2020 and October 31, 2019, the carrying value of cash and cash equivalents and customer deposits held in escrow approximated fair value. 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 table below provides, as of the dates indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale (amounts in thousands): Aggregate unpaid Fair value Excess At April 30, 2020 $ 138,773 $ 141,007 $ 2,234 At October 31, 2019 $ 216,280 $ 218,777 $ 2,497 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 inventory was determined using Level 3 criteria. See Note 1, “Significant Accounting Policies – Inventory,” in our 2019 Form 10-K for information regarding our methodology for determining fair value. The table below summarizes, for the periods indicated, the ranges of certain quantitative unobservable inputs utilized in determining the fair value of impaired operating communities: Three months ended: Selling price Sales pace Discount rate Fiscal 2020: January 31 — — — April 30 613 - 789 9 14.3% Fiscal 2019: January 31 836 - 13,495 2 - 12 12.5% - 15.8% April 30 372 - 1,915 2 - 19 12.0% - 26.0% July 31 530 - 1,113 2 - 9 7.8% - 13% October 31 478 - 857 2 - 5 13.8% - 14.5% 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 Fair value of Impairment charges recognized Fiscal 2020: January 31 65 — $ — $ — April 30 80 1 $ 2,754 300 $ 300 Fiscal 2019: January 31 (1) 49 5 $ 37,282 $ 5,785 April 30 (2) 64 6 $ 36,159 17,495 July 31 69 3 $ 5,436 1,100 October 31 (3) 71 7 $ 18,910 6,695 $ 31,075 (1) Includes impairments of $2.8 million (one community), $1.5 million (three communities), and $1.5 million (one community) located in our City Living, North, and South segments, respectively. (2) Includes impairments of $2.0 million (one community), $15.0 million (four communities), and $0.5 million (one community) located in our City Living, North, and South segments, respectively. (3) Includes impairments of $5.1 million (four communities), $0.6 million (two communities) and $1.0 million (one community) located in our North, South, and Pacific segments, respectively Debt The table below provides, as of the dates indicated, the book value and estimated fair value of our debt (amounts in thousands): April 30, 2020 October 31, 2019 Fair value Book value Estimated Book value Estimated Loans payable (1) Level 2 $ 1,559,389 $ 1,559,587 $ 1,114,577 $ 1,112,040 Senior notes (2) Level 1 2,669,876 2,676,884 2,669,876 2,823,043 Mortgage company loan facility (3) Level 2 106,018 106,018 150,000 150,000 $ 4,335,283 $ 4,342,489 $ 3,934,453 $ 4,085,083 (1) 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. (2) The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date. (3) We believe that the carrying value of our mortgage company loan borrowings approximates their fair value. |
Other Income - Net
Other Income - Net | 6 Months Ended |
Apr. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income - net | Other Income – Net The table below provides the significant components of other income – net (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Interest income $ 6,798 $ 10,210 $ 1,896 $ 4,338 Income from ancillary businesses 15,104 18,086 14,582 4,242 Management fee income from home building unconsolidated entities, net 1,553 4,727 207 3,119 Directly expensed interest (2,440) (2,440) Other (884) (877) (409) (414) Total other income – net $ 20,131 $ 32,146 $ 13,836 $ 11,285 Management fee income from home building unconsolidated entities presented above primarily represents fees earned by Toll Brothers City Living ® (“City Living”) and traditional home building operations. In addition, in the six-month periods ended April 30, 2020 and 2019, our apartment living operations earned fees from unconsolidated entities of $7.2 million and $4.7 million, respectively. In the three-months ended April 30, 2020 and 2019, our apartment living operations earned fees from unconsolidated entities of $3.5 million and $2.1 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses. Income from ancillary businesses is generated by our mortgage, title, landscaping, security monitoring, Gibraltar, and golf course and country club operations. The table below provides, for the periods indicated, revenues and expenses for our ancillary businesses (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Revenues $ 53,842 $ 65,129 $ 27,432 $ 32,846 Expenses $ 51,708 $ 60,374 $ 25,820 $ 29,749 Other income $ 12,970 $ 13,331 $ 12,970 $ 1,145 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 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 and 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. In March 2018, the Pennsylvania Attorney General informed the Company that it was conducting a review of our construction of stucco homes in Pennsylvania after January 1, 2005 and requested that we voluntarily produce documents and information. The Company has produced documents and information in response to this request and, in addition, has produced requested information and documents in response to a subpoena issued in the second quarter of fiscal 2019. Management cannot at this time predict the eventual scope or outcome of this matter. Land Purchase Commitments Generally, our 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 an agreement. Information regarding our land purchase commitments, as of the dates indicated, is provided in the table below (amounts in thousands): April 30, 2020 October 31, 2019 Aggregate purchase commitments: Unrelated parties $ 2,607,742 $ 2,349,900 Unconsolidated entities that the Company has investments in 7,776 10,826 Total $ 2,615,518 $ 2,360,726 Deposits against aggregate purchase commitments $ 189,705 $ 168,778 Additional cash required to acquire land 2,425,813 2,191,948 Total $ 2,615,518 $ 2,360,726 Amount of additional cash required to acquire land included in accrued expenses $ 14,582 $ 14,620 In addition, we expect to purchase approximately 2,500 additional home sites over a number of years from several joint ventures in which we have interests; the purchase prices of these home sites will be determined at a future date. At April 30, 2020, we also had similar purchase commitments to acquire land for apartment developments of approximately $165.0 million, of which we had outstanding deposits in the amount of $7.6 million. We intend to develop these projects in joint ventures with unrelated parties in the future. We have additional land parcels under option that have been excluded from the aggregate purchase commitments 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 April 30, 2020, 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 April 30, 2020, we had outstanding surety bonds amounting to $823.2 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that approximately $390.5 million of work remains on these improvements. We have an additional $181.3 million of surety bonds outstanding that guarantee other obligations. We do not believe that it is probable that any outstanding bonds will be drawn upon. At April 30, 2020, we had outstanding letters of credit of $164.8 million under our Revolving Credit Facility. These letters of credit were issued to secure 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 April 30, 2020, we had agreements of sale outstanding to deliver 6,428 homes with an aggregate sales value of $5.49 billion. Mortgage Commitments Information regarding our mortgage commitments, as of the dates indicated, is provided in the table below (amounts in thousands): April 30, October 31, 2019 Aggregate mortgage loan commitments: IRLCs $ 537,787 $ 565,634 Non-IRLCs 1,686,419 1,364,972 Total $ 2,224,206 $ 1,930,606 Investor commitments to purchase: IRLCs $ 537,787 $ 565,634 Mortgage loans held for sale 129,648 208,591 Total $ 667,435 $ 774,225 Lease Commitments We lease certain facilities, equipment, and properties held for rental apartment operation or development under non-cancelable operating leases which, in the case of certain rental properties, have an initial term of 99 years. We recognize lease expense for these leases on a straight-line basis over the lease term. ROU assets and lease liabilities are recorded on the balance sheet for all leases with an expected term over one year. A majority of our facility lease agreements include rental payments based on a pro-rata share of the lessor’s operating costs which are variable in nature. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. ROU assets are classified within “Receivables, prepaid expenses, and other assets” and the corresponding lease liability is included in “Accrued expenses” in our Condensed Consolidated Balance Sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. At April 30, 2020, ROU assets and lease liabilities were $109.5 million and $127.8 million, respectively. Payments on lease liabilities during the six months and three months ended April 30, 2020 totaled $8.2 million and $4.3 million, respectively. Lease expense includes costs for leases with terms in excess of one year as well as short-term leases with terms of one year or less. For the six months and three months ended April 30, 2020, our total lease expense was $12.8 million and $6.4 million, respectively, inclusive of variable lease costs of approximately $1.5 million and $0.9 million, respectively, and short-term lease costs of approxima tely $2.0 million and $1.0 million, respectively. S ublease income was de minimis. Information regarding our remaining lease payments as of April 30, 2020 is provided in the table below (amounts in thousands): Year ended April 30, 2020 2020 (a) $ 8,455 2021 19,327 2022 17,437 2023 15,039 2024 12,133 Thereafter 213,509 Total lease payments (b) 285,900 Less: Interest (c) 158,146 Present value of lease liabilities $ 127,754 (a) Remaining payments are for the six months ending October 31, 2020 (b) Lease payments include options to extend lease terms that are reasonably certain of being exercised (c) Our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our discount rate for such leases to determine the present value of lease payments at the lease commencement date. The majority of our facility leases give us the option to extend the lease term. The exercise of lease renewal options is at our discretion. For several of our facility leases we are reasonably certain the option will be exercised and thus the renewal term has been included in our calculation of the ROU asset and lease liability. The weighted average remaining lease term and weighted average discount rate used in calculating these facility lease liabilities, excluding our land leases, were 9 years and 4.0%, respectively, at April 30, 2020. We have a small number of land leases with initial terms of 99 years. We are not reasonably certain that, if given the option, we would extend these leases. We have therefore excluded the renewal terms from our ROU asset and lease liability for these leases. The weighted average remaining lease term and weighted average discount rate used in calculating these land lease liabilities were 94 years and 4.5%, respectively, at April 30, 2020. |
Information on Segments
Information on Segments | 6 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Information on Segments We operate in two segments: traditional home building and urban infill. We build and sell detached and attached homes in luxury residential communities located in affluent suburban markets that cater to move-up, empty-nester, active-adult, affordable luxury, age-qualified, and second-home buyers in the United States (“Traditional Home Building”). We also build and sell homes in urban infill markets through City Living. Our Traditional Home Building segment operates in five geographic segments. In the first quarter of fiscal 2020, we made certain changes to our Traditional Home Building regional management structure and realigned certain of the states falling among our five geographic segments, as follows: Eastern Region: • The North region: Connecticut, Delaware, Illinois, Massachusetts, Michigan, Pennsylvania, New Jersey and New York; • The Mid-Atlantic region: Georgia, Maryland, North Carolina, Tennessee and Virginia; • The South region: Florida, South Carolina and Texas; Western Region: • The Mountain region: Arizona, Colorado, Idaho, Nevada and Utah; and • The Pacific region: California, Oregon and Washington. Previously, our geographic segments were: • North : Connecticut, Illinois, Massachusetts, Michigan, New Jersey and New York; • Mid-Atlantic : Delaware, Maryland, Pennsylvania and Virginia; • South : Florida, Georgia, North Carolina, South Carolina and Texas; • West : Arizona, Colorado, Idaho, Nevada, Oregon, Utah and Washington; and • California : California. Our new geographic reporting segments are consistent with how our chief operating decision makers are assessing operating performance and allocating capital following the realignment of the regional management structure. The realignment did not have any impact on our consolidated financial position, results of operations, earnings per share or cash flows. Prior period segment information was restated to conform to the new reporting structure. Revenue and income (loss) before income taxes for each of our segments, for the periods indicated, were as follows (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 (Restated) (Restated) Revenues: Traditional Home Building: North $ 550,082 $ 616,608 $ 296,023 $ 345,090 Mid-Atlantic 355,376 308,987 192,900 174,089 South 414,490 419,689 230,860 242,761 Mountain 600,600 512,208 337,504 285,809 Pacific 818,648 1,023,665 423,292 579,616 Traditional Home Building 2,739,196 2,881,157 1,480,579 1,627,365 City Living 76,607 152,668 36,772 84,074 Corporate and other (2,232) (2,460) (1,117) 618 Total home sales revenue 2,813,571 3,031,365 1,516,234 1,712,057 Land sales revenue 66,932 47,910 32,838 4,037 Total revenue $ 2,880,503 $ 3,079,275 $ 1,549,072 $ 1,716,094 Income (loss) before income taxes: Traditional Home Building: North $ 19,527 $ 22,358 $ 16,996 $ 7,287 Mid-Atlantic 6,833 17,605 (155) 10,463 South 29,190 44,313 20,113 28,648 Mountain 50,784 52,980 33,199 27,377 Pacific 131,059 214,614 67,737 122,982 Traditional Home Building 237,393 351,870 137,890 196,757 City Living 18,247 40,476 8,698 25,834 Corporate and other (87,595) (64,741) (44,475) (46,432) Total $ 168,045 $ 327,605 $ 102,113 $ 176,159 “Corporate and other” is comprised principally of general corporate expenses such as our executive offices; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; interest income; income from certain of our ancillary businesses, including Gibraltar; and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures. Total assets for each of our segments, as of the dates indicated, are shown in the table below (amounts in thousands): April 30, October 31, (Restated) Traditional Home Building: North $ 1,540,813 $ 1,487,012 Mid-Atlantic 961,159 854,470 South 1,250,034 1,165,974 Mountain 1,979,579 1,769,649 Pacific 2,527,780 2,627,417 Traditional Home Building 8,259,365 7,904,522 City Living 542,483 529,507 Corporate and other 2,008,963 2,394,109 Total $ 10,810,811 $ 10,828,138 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 6 Months Ended |
Apr. 30, 2020 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information [Text Block] | Supplemental Guarantor Information At April 30, 2020, our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following outstanding Senior Notes (amounts in thousands): Original amount issued and amount outstanding 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 3.80% Senior Notes due November 1, 2029 $ 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 these Senior Notes. 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 our obligations under 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 (i) no default or event of default exists or would result from release of such guarantee; (ii) the Guarantor Subsidiary being released has consolidated net worth of less than 5% of the Company’s consolidated net worth as of the end of our most recent fiscal quarter; (iii) 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; (iv) such release would not have a material adverse effect on our and our subsidiaries’ home building business; and (v) the Guarantor Subsidiary is released from its guaranty 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). Condensed Consolidating Balance Sheet at April 30, 2020: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated ASSETS Cash and cash equivalents — — 610,591 130,631 — 741,222 Inventory 8,099,842 95,791 8,195,633 Property, construction and office equipment, net 276,552 1,966 278,518 Receivables, prepaid expenses and other assets 5,667 254,310 774,796 (51,679) 983,094 Mortgage loans held for sale 141,007 141,007 Customer deposits held in escrow 74,648 42 74,690 Investments in unconsolidated entities 44,545 319,496 364,041 Investments in and advances to consolidated entities 4,656,426 2,712,458 185,516 206,756 (7,761,156) — Income taxes receivable 32,606 32,606 4,694,699 2,712,458 9,546,004 1,670,485 (7,812,835) 10,810,811 LIABILITIES AND EQUITY Liabilities Loans payable 1,554,721 36,109 (34,258) 1,556,572 Senior notes 2,660,815 2,660,815 Mortgage company loan facility 106,018 106,018 Customer deposits 418,047 2,122 (516) 419,653 Accounts payable 330,970 19,049 350,019 Accrued expenses 6,724 33,802 566,295 444,970 (53,248) 998,543 Advances from consolidated entities 351,458 578,997 (930,455) — Income taxes payable 105,469 105,469 Total liabilities 112,193 2,694,617 3,221,491 1,187,265 (1,018,477) 6,197,089 Equity Stockholders’ equity Common stock 1,529 48 3,006 (3,054) 1,529 Additional paid-in capital 725,246 49,400 199,034 (248,434) 725,246 Retained earnings (deficit) 4,896,005 (31,559) 6,324,465 231,976 (6,542,870) 4,878,017 Treasury stock, at cost (1,034,999) (1,034,999) Accumulated other comprehensive loss (5,275) (5,275) Total stockholders’ equity 4,582,506 17,841 6,324,513 434,016 (6,794,358) 4,564,518 Noncontrolling interest 49,204 49,204 Total equity 4,582,506 17,841 6,324,513 483,220 (6,794,358) 4,613,722 4,694,699 2,712,458 9,546,004 1,670,485 (7,812,835) 10,810,811 Condensed Consolidating Balance Sheet at October 31, 2019: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated ASSETS Cash and cash equivalents — — 1,082,067 203,947 — 1,286,014 Inventory 7,791,759 81,289 7,873,048 Property, construction and office equipment, net 263,140 10,272 273,412 Receivables, prepaid expenses and other assets 224,681 610,541 (119,781) 715,441 Mortgage loans held for sale 218,777 218,777 Customer deposits held in escrow 74,303 100 74,403 Investments in unconsolidated entities 50,594 315,658 366,252 Investments in and advances to consolidated entities 5,172,737 2,704,551 163,371 147,413 (8,188,072) — Income taxes receivable 20,791 20,791 5,193,528 2,704,551 9,649,915 1,587,997 (8,307,853) 10,828,138 LIABILITIES AND EQUITY Liabilities Loans payable 1,109,614 36,092 (34,257) 1,111,449 Senior notes 2,659,898 2,659,898 Mortgage company loan facility 150,000 150,000 Customer deposits 383,583 2,013 385,596 Accounts payable 347,715 884 348,599 Accrued expenses 754 26,812 569,476 443,180 (89,290) 950,932 Advances from consolidated entities 1,052,370 503,058 (1,555,428) — Income taxes payable 102,971 102,971 Total liabilities 103,725 2,686,710 3,462,758 1,135,227 (1,678,975) 5,709,445 Equity Stockholders’ equity Common stock 1,529 48 3,006 (3,054) 1,529 Additional paid-in capital 726,879 49,400 177,034 (226,434) 726,879 Retained earnings (deficit) 4,792,409 (31,559) 6,187,109 225,853 (6,399,390) 4,774,422 Treasury stock, at cost (425,183) (425,183) Accumulated other comprehensive loss (5,831) (5,831) Total stockholders’ equity 5,089,803 17,841 6,187,157 405,893 (6,628,878) 5,071,816 Noncontrolling interest 46,877 46,877 Total equity 5,089,803 17,841 6,187,157 452,770 (6,628,878) 5,118,693 5,193,528 2,704,551 9,649,915 1,587,997 (8,307,853) 10,828,138 Condensed Consolidating Statement of Operations and Comprehensive Income for the six months ended April 30, 2020: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Revenues: Home sales 2,798,935 14,636 2,813,571 Land sales and other 43,964 112,929 (89,961) 66,932 — — 2,842,899 127,565 (89,961) 2,880,503 Cost of revenues: Home sales 2,301,861 11,286 (2,558) 2,310,589 Land sales and other 26,132 71,086 (38,518) 58,700 — — 2,327,993 82,372 (41,076) 2,369,289 Selling, general and administrative 100 36 385,041 32,991 (46,998) 371,170 Income (loss) from operations (100) (36) 129,865 12,202 (1,887) 140,044 Other: Income (loss) from unconsolidated entities 14,715 (6,845) 7,870 Other income – net 14,068 10,476 (4,413) 20,131 Intercompany interest income 65,642 2,930 2,802 (71,374) — Interest expense (65,606) (2,802) (3,266) 71,674 — Income from subsidiaries 168,145 15,369 (183,514) — Income before income taxes 168,045 — 174,145 15,369 (189,514) 168,045 Income tax provision 35,499 36,788 3,246 (40,034) 35,499 Net income 132,546 — 137,357 12,123 (149,480) 132,546 Other comprehensive income 556 556 Total comprehensive income 133,102 — 137,357 12,123 (149,480) 133,102 Condensed Consolidating Statement of Operations and Comprehensive Income for the six months ended April 30, 2019: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Revenues: Home sales 2,967,351 64,014 3,031,365 Land sales and other 30,793 107,644 (90,527) 47,910 — — 2,998,144 171,658 (90,527) 3,079,275 Cost of revenues: Home sales 2,365,786 50,965 (159) 2,416,592 Land sales and other 7,979 62,801 (33,606) 37,174 — — 2,373,765 113,766 (33,765) 2,453,766 Selling, general and administrative 491 1,395 355,050 36,095 (52,422) 340,609 Income (loss) from operations (491) (1,395) 269,329 21,797 (4,340) 284,900 Other: Income from unconsolidated entities 8,541 2,018 10,559 Other income – net 12,255 14,250 5,641 32,146 Intercompany interest income 67,004 870 2,980 (70,854) — Interest expense (65,609) (2,980) (964) 69,553 — Income from subsidiaries 328,096 40,081 (368,177) — Income before income taxes 327,605 — 328,096 40,081 (368,177) 327,605 Income tax provision 86,231 86,355 10,549 (96,904) 86,231 Net income 241,374 — 241,741 29,532 (271,273) 241,374 Other comprehensive income 112 112 Total comprehensive income 241,486 — 241,741 29,532 (271,273) 241,486 Condensed Consolidating Statement of Operations and Comprehensive Income for the three months ended April 30, 2020: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Revenues: Home sales 1,509,558 6,676 1,516,234 Land sales and other 26,168 54,653 (47,983) 32,838 — — 1,535,726 61,329 (47,983) 1,549,072 Cost of revenues: Home sales 1,248,159 5,284 (2,754) 1,250,689 Land sales and other 14,274 32,250 (20,106) 26,418 — — 1,262,433 37,534 (22,860) 1,277,107 Selling, general and administrative 47 11 187,091 16,195 (23,927) 179,417 Income (loss) from operations (47) (11) 86,202 7,600 (1,196) 92,548 Other: Income (loss) from unconsolidated entities 513 (4,784) (4,271) Other income – net 9,402 9,508 (5,074) 13,836 Intercompany interest income 29,272 1,425 1,509 (32,206) — Interest expense (29,261) (1,509) (1,705) 32,475 — Income from subsidiaries 102,161 12,128 (114,289) — Income before income taxes 102,114 — 108,161 12,128 (120,290) 102,113 Income tax provision 26,443 27,725 2,802 (30,527) 26,443 Net income 75,671 — 80,436 9,326 (89,763) 75,670 Other comprehensive income 278 278 Total comprehensive income 75,949 — 80,436 9,326 (89,763) 75,948 Condensed Consolidating Statement of Operations and Comprehensive Income for the three months ended April 30, 2019: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Revenues: Home sales 1,675,155 36,902 1,712,057 Land sales and other 15,460 34,329 (45,752) 4,037 — — 1,690,615 71,231 (45,752) 1,716,094 Cost of revenues: Home sales 1,344,891 29,616 (160) 1,374,347 Land sales and other 3,841 16,909 (17,829) 2,921 — — 1,348,732 46,525 (17,989) 1,377,268 Selling, general and administrative 101 662 185,133 17,342 (24,867) 178,371 Income (loss) from operations (101) (662) 156,750 7,364 (2,896) 160,455 Other: Income from unconsolidated entities 3,154 1,265 4,419 Other income - net 6,758 1,019 3,508 11,285 Intercompany interest income 32,883 343 1,475 (34,701) — Interest expense (32,221) (1,475) (393) 34,089 — Income from consolidated subsidiaries 176,260 10,730 (186,990) — Income before income taxes 176,159 — 176,260 10,730 (186,990) 176,159 Income tax provision 46,835 46,859 2,914 (49,773) 46,835 Net income 129,324 — 129,401 7,816 (137,217) 129,324 Other comprehensive income 56 56 Total comprehensive income 129,380 — 129,401 7,816 (137,217) 129,380 Condensed Consolidating Statement of Cash Flows for the six months ended April 30, 2020: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Net cash (used in) provided by operating activities 3,362 7,917 (73,779) (90,059) (38,577) (191,136) Cash flow (used in) provided by investing activities: Purchase of property and equipment - net (51,752) 995 (50,757) Investments in unconsolidated entities (542) (9,721) (10,263) Return of investments in unconsolidated entities 9,508 25,376 34,884 Investment in foreclosed real estate and distressed loans (272) (272) Return of investments in foreclosed real estate and distressed loans 1,431 1,431 Acquisition of a business (60,349) (60,349) Proceeds from sales of golf club properties and an office building 15,617 15,617 Investment paid - intercompany (85,631) 85,631 — Intercompany advances 653,669 (7,917) (645,752) — Net cash (used in) provided by investing activities 653,669 (7,917) (188,766) 33,426 (560,121) (69,709) Cash flow (used in) provided by financing activities: Proceeds from loans payable 1,425,008 1,307,485 2,732,493 Principal payments of loans payable (1,002,646) (1,351,467) (2,354,113) Proceeds from stock-based benefit plans, net 5,305 5,305 Purchase of treasury stock (633,553) (633,553) Dividends paid (28,783) (28,783) Payments related to noncontrolling interest, net (936) (936) Dividend paid - intercompany (6,000) 6,000 — Investment received - intercompany 85,628 (85,628) — Intercompany advances (631,294) (47,032) 678,326 — Net cash (used in) provided by financing activities (657,031) — (208,932) (12,322) 598,698 (279,587) Net decrease in cash, cash equivalents, and restricted cash — — (471,477) (68,955) — (540,432) Cash, cash equivalents, and restricted cash, beginning of period — — 1,082,090 237,553 — 1,319,643 Cash, cash equivalents, and restricted cash, end of period — — 610,613 168,598 — 779,211 Condensed Consolidating Statement of Cash Flows for the six months ended April 30, 2019: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Net cash used in operating activities (525) (3,635) (69,339) (1,854) (10,325) (85,678) Cash flow provided by (used in) investing activities: Purchase of property and equipment — net (45,805) 864 (44,941) Investments in unconsolidated entities (3,091) (28,469) (31,560) Return of investments in unconsolidated entities 70,465 70,465 Investment in foreclosed real estate and distressed loans (522) (522) Return of investments in foreclosed real estate and distressed loans 1,214 1,214 Investment paid - intercompany (57,917) 57,917 — Proceeds from the sale of a golf club property 15,319 18,220 33,539 Intercompany advances 56,901 353,635 (410,536) — Net cash provided by (used in) investing activities 56,901 353,635 (91,494) 61,772 (352,619) 28,195 Cash flow (used in) provided by financing activities: Proceeds from loans payable 300,000 1,039,641 1,339,641 Debt issuance costs for loans payable (1,948) (1,948) Principal payments of loans payable (52,165) (1,079,630) (1,131,795) Redemption of senior notes (350,000) (350,000) Proceeds from stock-based benefit plans, net 1,302 1,302 Excess tax benefits from stock-based compensation — Purchase of treasury stock (25,244) (25,244) Dividends paid (32,434) (32,434) Receipts related to noncontrolling interest, net 13 13 Investment received - intercompany 57,917 (57,917) — Intercompany advances (395,905) (24,956) 420,861 — Net cash used in financing activities (56,376) (350,000) (150,018) (7,015) 362,944 (200,465) Net (decrease) increase in cash, cash equivalents, and restricted cash — — (310,851) 52,903 — (257,948) Cash, cash equivalents, and restricted cash, beginning of period — — 1,011,867 171,072 — 1,182,939 Cash, cash equivalents, and restricted cash, end of period — — 701,016 223,975 — 924,991 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying condensed 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. |
Revenue [Policy Text Block] | Revenue Recognition Home sales revenues: Revenues and cost of revenues from home sales are recognized at the time each home is delivered and title and possession are transferred to the buyer. For the majority of our home closings, our performance obligation to deliver a home is satisfied in less than one year from the date a binding sale agreement is signed. In certain states where we build, we are not able to complete certain outdoor features prior to the closing of the home. To the extent these separate performance obligations are not complete upon the home closing, we defer a portion of the home sales revenues related to these obligations and subsequently recognize the revenue upon completion of such obligations. As of April 30, 2020, the home sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities, consisting of deposits received from customers for sold but undelivered homes, totaled $419.7 million and $385.6 million at April 30, 2020 and October 31, 2019, respectively. Of the outstanding customer deposits held as of October 31, 2019, we recognized $176.7 million and $91.0 million in home sales revenues during the six months and three months ended April 30, 2020, respectively. Land sales revenues: Our revenues from land sales generally consist of: (1) lot sales to third-party builders within our master planned communities; (2) land sales to joint ventures in which we retain an interest; and (3) bulk sales to third parties of land we have decided no longer meets our development criteria. In general, our performance obligation for each of these land sales is fulfilled upon the delivery of the land, which generally coincides with the receipt of cash consideration from the counterparty. For land sale transactions that contain repurchase options, revenues and related costs are not recognized until the repurchase option expires. In addition, when we sell land to a joint venture in which we retain an interest, we do not recognize revenue or gains on the sale to the extent of our retained interest in such joint venture. Forfeited Customer Deposits: Forfeited customer deposits are recognized in “Home sales revenues” in our Condensed 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 may offer our home buyers sales incentives. These incentives vary by type and amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sales revenues. Incentives are recognized at the time the home is delivered to the home buyer and we receive the sales proceeds. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements 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. In July 2018, the FASB issued ASU No. 2018-11, “Leases: Targeted Improvements” (“ASU 2018-11”), which provides an entity with the option to apply the transition provisions of the new standard at its adoption date instead of at its earliest comparative period presented. ASU 2018-11 also provides an entity with a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. ASU 2016-02, as amended by ASU 2018-11, became effective for our fiscal year beginning November 1, 2019, and we adopted the new standard using a modified retrospective approach. The prior year period was not recast and our Condensed Consolidated Balance Sheet as of October 31, 2019 does not reflect any changes resulting from the adoption of the new standard. We elected to apply the transition provisions that allow us to carry forward our historical assessment of (1) whether contracts are or contain leases, (2) lease classification, and (3) initial direct costs. In addition, we elected the practical expedient that allows lessees the option to account for lease and non-lease components together as a single component for all classes of underlying assets. As a result of the adoption, we recorded a right-of-use (“ROU”) asset and lease liability of $114.5 million and $118.5 million, respectively, as of November 1, 2019. The ROU asset is included in “Receivables, prepaid expenses, and other assets” and the corresponding lease liability is included in “Accrued expenses” in our Condensed Consolidated Balance Sheet. The adoption of ASU 2016-02 had no impact on retained earnings and did not materially impact our Condensed Consolidated Statements of Operations and Comprehensive Income or Condensed Consolidated Statements of Cash Flows. 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 will be effective for our fiscal year beginning November 1, 2020, with early adoption permitted as of November 1, 2019. We are currently evaluating the impact that the adoption of ASU 2016-13 may have on our consolidated financial statements and disclosures. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory at April 30, 2020 and October 31, 2019 consisted of the following (amounts in thousands): April 30, October 31, Land controlled for future communities $ 219,432 $ 182,929 Land owned for future communities 1,043,335 868,202 Operating communities 6,932,866 6,821,917 $ 8,195,633 $ 7,873,048 |
Temporarily Closed communities | Information regarding the classification, number, and carrying value of these temporarily closed communities, as of the dates indicated, is provided in the table below: April 30, October 31, Land owned for future communities: Number of communities 15 16 Carrying value (in thousands) $ 113,168 $ 120,857 Operating communities: Number of communities 1 1 Carrying value (in thousands) $ 5,824 $ 2,871 |
Inventory impairment charges and expensing of costs that it is believed not to be recoverable | The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, are shown in the table below (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Land controlled for future communities (1) $ 12,840 $ 3,676 $ 11,809 $ 1,899 Land owned for future communities 2,105 2,105 Operating communities 300 23,280 300 17,495 $ 15,245 $ 26,956 $ 14,214 $ 19,394 |
Interest incurred, capitalized and expensed | Interest incurred, capitalized, and expensed, for the periods indicated, was as follows (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Interest capitalized, beginning of period $ 311,323 $ 319,364 $ 320,751 $ 330,167 Interest incurred 89,754 87,862 46,104 43,440 Interest expensed to home sales cost of revenues (70,811) (79,227) (38,037) (44,786) Interest expensed to land sales cost of revenues (1,304) (635) (737) (283) Interest expensed in other income (2,440) (2,440) Interest capitalized on investments in unconsolidated entities (1,778) (3,084) (897) (1,270) Previously capitalized interest on investments in unconsolidated entities transferred to inventory 120 4,303 120 1,315 Interest capitalized, end of period $ 324,864 $ 328,583 $ 324,864 $ 328,583 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
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 April 30, 2020, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands): Land Home Building Rental Property Gibraltar Total Number of unconsolidated entities 8 4 22 7 41 Investment in unconsolidated entities $ 103,301 $ 42,961 $ 197,377 $ 20,402 $ 364,041 Number of unconsolidated entities with funding commitments by the Company 2 — 3 1 6 Company’s remaining funding commitment to unconsolidated entities $ 27,530 $ — $ 11,514 $ 6,232 $ 45,276 |
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 April 30, 2020, regarding the debt financing obtained by category ($ amounts in thousands): Land Home Building Rental Property Total Number of joint ventures with debt financing 3 1 20 24 Aggregate loan commitments $ 110,842 $ 62,384 $ 1,516,624 $ 1,689,850 Amounts borrowed under loan commitments $ 95,900 $ 62,384 $ 1,082,342 $ 1,240,626 |
Condensed balance sheet | Condensed Balance Sheets: April 30, October 31, Cash and cash equivalents $ 112,569 $ 85,819 Inventory 487,705 579,226 Loans receivable, net 33,287 56,545 Rental properties 1,000,062 1,021,848 Rental properties under development 708,022 535,197 Real estate owned 12,298 12,267 Other assets 170,698 212,761 Total assets $ 2,524,641 $ 2,503,663 Debt, net of deferred financing costs $ 1,229,197 $ 1,226,857 Other liabilities 186,831 175,827 Members’ equity 1,108,232 1,100,563 Noncontrolling interest 381 416 Total liabilities and equity $ 2,524,641 $ 2,503,663 Company’s net investment in unconsolidated entities (1) $ 364,041 $ 366,252 (1) Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of other than temporary impairments related to our investments in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; unrealized gains on our retained joint venture interests; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment. |
Condensed statements of operations and comprehensive income | Condensed Statements of Operations: Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Revenues $ 212,282 $ 331,617 $ 79,112 $ 178,388 Cost of revenues 145,349 288,951 50,041 157,196 Other expenses 73,182 41,354 32,066 22,879 Total expenses 218,531 330,305 82,107 180,075 Gain on disposition of loans and real estate owned — 3,694 — — (Loss) income from operations (6,249) 5,006 (2,995) (1,687) Other income (loss) 529 1,737 (84) 1,090 (Loss) income before income taxes (5,720) 6,743 (3,079) (597) Income tax (benefit) provision (147) 225 (287) (40) Net (loss) income including earnings from noncontrolling interests (5,573) 6,518 (2,792) (557) Less: income (loss) attributable to noncontrolling interest — (2,078) — 31 Net (loss) income attributable to controlling interest $ (5,573) $ 4,440 $ (2,792) $ (526) Company’s equity in earnings of unconsolidated entities (1) $ 7,870 $ 10,559 $ (4,271) $ 4,419 (1) Differences between our equity in earnings of unconsolidated entities and the underlying net income of the entities are primarily a result of distributions from entities in excess of the carrying amount of our net investment; other than temporary impairments related to our investments in unconsolidated entities; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gains recognized from the sale of our investment to our joint venture partner; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired. |
Receivables, Prepaid Expenses_2
Receivables, Prepaid Expenses, and Other Assets (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Receivables, prepaid expenses and other assets [Abstract] | |
Receivables, Prepaid Expenses, and Other Assets [Table Text Block] | Receivables, prepaid expenses, and other assets at April 30, 2020 and October 31, 2019, consisted of the following (amounts in thousands): April 30, 2020 October 31, 2019 Expected recoveries from insurance carriers and others $ 86,914 $ 114,162 Improvement cost receivable 106,280 100,864 Escrow cash held by our captive title company 36,465 32,863 Properties held for rental apartment and commercial development 532,436 367,072 Prepaid expenses 24,809 26,041 Right-of-use asset (1) 109,458 — Other 86,732 74,439 $ 983,094 $ 715,441 (1) On November 1, 2019, we adopted ASU 2016-02 which resulted in the establishment of a right-of-use asset on our Condensed Consolidated Balance Sheet as of January 31, 2020. The Condensed Consolidated Balance Sheet as of October 31, 2019 does not reflect any changes resulting from the adoption of the new standard. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the adoption of ASU 2016-02. |
Loans Payable, Senior Notes a_2
Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Loans Payable [Text Block] | At April 30, 2020 and October 31, 2019, loans payable consisted of the following (amounts in thousands): April 30, October 31, Senior unsecured term loan $ 800,000 $ 800,000 Revolving credit facility borrowings 450,000 — Loans payable – other 309,390 314,577 Deferred issuance costs (2,818) (3,128) $ 1,556,572 $ 1,111,449 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses at April 30, 2020 and October 31, 2019 consisted of the following (amounts in thousands): April 30, October 31, Land, land development, and construction $ 180,212 $ 192,658 Compensation and employee benefits 168,959 183,592 Escrow liability 34,113 31,587 Self-insurance 194,969 193,405 Warranty 157,154 201,886 Lease liabilities (1) 127,754 — Deferred income 34,904 51,678 Interest 41,351 31,307 Commitments to unconsolidated entities 8,141 9,283 Other 50,986 55,536 $ 998,543 $ 950,932 (1) On November 1, 2019, we adopted ASU 2016-02 which resulted in the establishment of lease liabilities on our Condensed Consolidated Balance Sheet as of January 31, 2020. The Condensed Consolidated Balance Sheet as of October 31, 2019 does not reflect any changes resulting from the adoption of the new standard. See Note 1, “Significant Accounting Policies – Recent Accounting Pronouncements” for additional information regarding the adoption of ASU 2016-02. |
Changes in the warranty accrual | The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Balance, beginning of period $ 201,886 $ 258,831 $ 188,916 $ 237,326 Additions – homes closed during the period 14,278 14,954 7,254 8,329 Addition – liabilities assumed in a business acquisition 60 60 Increase in accruals for homes closed in prior years 3,579 272 2,361 963 Decrease to water intrusion accrual (24,400) (24,400) Charges incurred (38,249) (50,402) (17,037) (22,963) Balance, end of period $ 157,154 $ 223,655 $ 157,154 $ 223,655 |
Stock-Based Benefit Plans (Tabl
Stock-Based Benefit Plans (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation expense and income tax benefit recognized | Information regarding the amount of total stock-based compensation expense and tax benefit recognized by us, for the periods indicated, is as follows (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Total stock-based compensation expense recognized $ 16,802 $ 13,916 $ 3,419 $ 5,331 Income tax benefit recognized $ 4,278 $ 3,652 $ 870 $ 1,396 |
Stock Repurchase Program and _2
Stock Repurchase Program and Cash Dividend (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Stock Repurchase Program [Abstract] | |
Stock repurchase program | The table below provides, for the periods indicated, information about our share repurchase programs: Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Number of shares purchased (in thousands) 15,938 788 4,252 3 Average price per share $ 39.75 $ 32.04 $ 37.05 $ 36.95 Remaining authorization at April 30 (in thousands) 19,998 19,784 19,998 19,784 |
Earnings Per Share Information
Earnings Per Share Information (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Income per share calculation | The table below provides, for the periods indicated, information pertaining to the calculation of earnings per share, common stock equivalents, weighted-average number of antidilutive options, and shares issued (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Numerator: Net income as reported $ 132,546 $ 241,374 $ 75,670 $ 129,324 Denominator: Basic weighted-average shares 133,175 146,687 128,205 146,622 Common stock equivalents (1) 1,174 1,394 604 1,507 Diluted weighted-average shares 134,349 148,081 128,809 148,129 Other information: Weighted-average number of antidilutive options and restricted stock units (2) 2,321 1,690 3,967 756 Shares issued under stock incentive and employee stock purchase plans 608 654 60 144 (1) 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 upon the conversion of restricted stock units under our equity award programs. (2) Weighted-average number of antidilutive options and restricted stock units are based upon the average closing price of our common stock on the New York Stock Exchange for the period. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Summary of assets and (liabilities), measured at fair value on a recurring basis | The table below provides, as of the dates indicated, a summary of assets/(liabilities) related to our financial instruments, measured at fair value on a recurring basis (amounts in thousands): Fair value Financial Instrument Fair value April 30, October 31, 2019 Residential Mortgage Loans Held for Sale Level 2 $ 141,007 $ 218,777 Forward Loan Commitments — Residential Mortgage Loans Held for Sale Level 2 $ (43) $ 298 Interest Rate Lock Commitments (“IRLCs”) Level 2 $ 1,461 $ 964 Forward Loan Commitments — IRLCs Level 2 $ (1,461) $ (964) |
Aggregate unpaid principal and fair value of mortgage loans held for sale | The table below provides, as of the dates indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale (amounts in thousands): Aggregate unpaid Fair value Excess At April 30, 2020 $ 138,773 $ 141,007 $ 2,234 At October 31, 2019 $ 216,280 $ 218,777 $ 2,497 |
Fair value of inventory adjusted for impairment | 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 Fair value of Impairment charges recognized Fiscal 2020: January 31 65 — $ — $ — April 30 80 1 $ 2,754 300 $ 300 Fiscal 2019: January 31 (1) 49 5 $ 37,282 $ 5,785 April 30 (2) 64 6 $ 36,159 17,495 July 31 69 3 $ 5,436 1,100 October 31 (3) 71 7 $ 18,910 6,695 $ 31,075 (1) Includes impairments of $2.8 million (one community), $1.5 million (three communities), and $1.5 million (one community) located in our City Living, North, and South segments, respectively. (2) Includes impairments of $2.0 million (one community), $15.0 million (four communities), and $0.5 million (one community) located in our City Living, North, and South segments, respectively. (3) Includes impairments of $5.1 million (four communities), $0.6 million (two communities) and $1.0 million (one community) located in our North, South, and Pacific segments, respectively |
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 (amounts in thousands): April 30, 2020 October 31, 2019 Fair value Book value Estimated Book value Estimated Loans payable (1) Level 2 $ 1,559,389 $ 1,559,587 $ 1,114,577 $ 1,112,040 Senior notes (2) Level 1 2,669,876 2,676,884 2,669,876 2,823,043 Mortgage company loan facility (3) Level 2 106,018 106,018 150,000 150,000 $ 4,335,283 $ 4,342,489 $ 3,934,453 $ 4,085,083 (1) 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. (2) The estimated fair value of our senior notes is based upon their market prices as of the applicable valuation date. (3) 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 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 operating communities: Three months ended: Selling price Sales pace Discount rate Fiscal 2020: January 31 — — — April 30 613 - 789 9 14.3% Fiscal 2019: January 31 836 - 13,495 2 - 12 12.5% - 15.8% April 30 372 - 1,915 2 - 19 12.0% - 26.0% July 31 530 - 1,113 2 - 9 7.8% - 13% October 31 478 - 857 2 - 5 13.8% - 14.5% |
Other Income - Net (Tables)
Other Income - Net (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income - net | The table below provides the significant components of other income – net (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Interest income $ 6,798 $ 10,210 $ 1,896 $ 4,338 Income from ancillary businesses 15,104 18,086 14,582 4,242 Management fee income from home building unconsolidated entities, net 1,553 4,727 207 3,119 Directly expensed interest (2,440) (2,440) Other (884) (877) (409) (414) Total other income – net $ 20,131 $ 32,146 $ 13,836 $ 11,285 |
Revenues and expenses of non-core ancillary businesses | The table below provides, for the periods indicated, revenues and expenses for our ancillary businesses (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 Revenues $ 53,842 $ 65,129 $ 27,432 $ 32,846 Expenses $ 51,708 $ 60,374 $ 25,820 $ 29,749 Other income $ 12,970 $ 13,331 $ 12,970 $ 1,145 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Information regarding our remaining lease payments as of April 30, 2020 is provided in the table below (amounts in thousands): Year ended April 30, 2020 2020 (a) $ 8,455 2021 19,327 2022 17,437 2023 15,039 2024 12,133 Thereafter 213,509 Total lease payments (b) 285,900 Less: Interest (c) 158,146 Present value of lease liabilities $ 127,754 (a) Remaining payments are for the six months ending October 31, 2020 (b) Lease payments include options to extend lease terms that are reasonably certain of being exercised |
Company land purchase commitments | Information regarding our land purchase commitments, as of the dates indicated, is provided in the table below (amounts in thousands): April 30, 2020 October 31, 2019 Aggregate purchase commitments: Unrelated parties $ 2,607,742 $ 2,349,900 Unconsolidated entities that the Company has investments in 7,776 10,826 Total $ 2,615,518 $ 2,360,726 Deposits against aggregate purchase commitments $ 189,705 $ 168,778 Additional cash required to acquire land 2,425,813 2,191,948 Total $ 2,615,518 $ 2,360,726 Amount of additional cash required to acquire land included in accrued expenses $ 14,582 $ 14,620 |
Company mortgage commitments | Information regarding our mortgage commitments, as of the dates indicated, is provided in the table below (amounts in thousands): April 30, October 31, 2019 Aggregate mortgage loan commitments: IRLCs $ 537,787 $ 565,634 Non-IRLCs 1,686,419 1,364,972 Total $ 2,224,206 $ 1,930,606 Investor commitments to purchase: IRLCs $ 537,787 $ 565,634 Mortgage loans held for sale 129,648 208,591 Total $ 667,435 $ 774,225 |
Information on Segments (Tables
Information on Segments (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Revenue and income (loss) before income taxes and total assets | Revenue and income (loss) before income taxes for each of our segments, for the periods indicated, were as follows (amounts in thousands): Six months ended April 30, Three months ended April 30, 2020 2019 2020 2019 (Restated) (Restated) Revenues: Traditional Home Building: North $ 550,082 $ 616,608 $ 296,023 $ 345,090 Mid-Atlantic 355,376 308,987 192,900 174,089 South 414,490 419,689 230,860 242,761 Mountain 600,600 512,208 337,504 285,809 Pacific 818,648 1,023,665 423,292 579,616 Traditional Home Building 2,739,196 2,881,157 1,480,579 1,627,365 City Living 76,607 152,668 36,772 84,074 Corporate and other (2,232) (2,460) (1,117) 618 Total home sales revenue 2,813,571 3,031,365 1,516,234 1,712,057 Land sales revenue 66,932 47,910 32,838 4,037 Total revenue $ 2,880,503 $ 3,079,275 $ 1,549,072 $ 1,716,094 Income (loss) before income taxes: Traditional Home Building: North $ 19,527 $ 22,358 $ 16,996 $ 7,287 Mid-Atlantic 6,833 17,605 (155) 10,463 South 29,190 44,313 20,113 28,648 Mountain 50,784 52,980 33,199 27,377 Pacific 131,059 214,614 67,737 122,982 Traditional Home Building 237,393 351,870 137,890 196,757 City Living 18,247 40,476 8,698 25,834 Corporate and other (87,595) (64,741) (44,475) (46,432) Total $ 168,045 $ 327,605 $ 102,113 $ 176,159 “Corporate and other” is comprised principally of general corporate expenses such as our executive offices; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; interest income; income from certain of our ancillary businesses, including Gibraltar; and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures. Total assets for each of our segments, as of the dates indicated, are shown in the table below (amounts in thousands): April 30, October 31, (Restated) Traditional Home Building: North $ 1,540,813 $ 1,487,012 Mid-Atlantic 961,159 854,470 South 1,250,034 1,165,974 Mountain 1,979,579 1,769,649 Pacific 2,527,780 2,627,417 Traditional Home Building 8,259,365 7,904,522 City Living 542,483 529,507 Corporate and other 2,008,963 2,394,109 Total $ 10,810,811 $ 10,828,138 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Supplemental Guarantor Information [Abstract] | |
Senior Notes issued by Subsidiary Issuer [Table Text Block] | At April 30, 2020, our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following outstanding Senior Notes (amounts in thousands): Original amount issued and amount outstanding 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 3.80% Senior Notes due November 1, 2029 $ 400,000 |
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). Condensed Consolidating Balance Sheet at April 30, 2020: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated ASSETS Cash and cash equivalents — — 610,591 130,631 — 741,222 Inventory 8,099,842 95,791 8,195,633 Property, construction and office equipment, net 276,552 1,966 278,518 Receivables, prepaid expenses and other assets 5,667 254,310 774,796 (51,679) 983,094 Mortgage loans held for sale 141,007 141,007 Customer deposits held in escrow 74,648 42 74,690 Investments in unconsolidated entities 44,545 319,496 364,041 Investments in and advances to consolidated entities 4,656,426 2,712,458 185,516 206,756 (7,761,156) — Income taxes receivable 32,606 32,606 4,694,699 2,712,458 9,546,004 1,670,485 (7,812,835) 10,810,811 LIABILITIES AND EQUITY Liabilities Loans payable 1,554,721 36,109 (34,258) 1,556,572 Senior notes 2,660,815 2,660,815 Mortgage company loan facility 106,018 106,018 Customer deposits 418,047 2,122 (516) 419,653 Accounts payable 330,970 19,049 350,019 Accrued expenses 6,724 33,802 566,295 444,970 (53,248) 998,543 Advances from consolidated entities 351,458 578,997 (930,455) — Income taxes payable 105,469 105,469 Total liabilities 112,193 2,694,617 3,221,491 1,187,265 (1,018,477) 6,197,089 Equity Stockholders’ equity Common stock 1,529 48 3,006 (3,054) 1,529 Additional paid-in capital 725,246 49,400 199,034 (248,434) 725,246 Retained earnings (deficit) 4,896,005 (31,559) 6,324,465 231,976 (6,542,870) 4,878,017 Treasury stock, at cost (1,034,999) (1,034,999) Accumulated other comprehensive loss (5,275) (5,275) Total stockholders’ equity 4,582,506 17,841 6,324,513 434,016 (6,794,358) 4,564,518 Noncontrolling interest 49,204 49,204 Total equity 4,582,506 17,841 6,324,513 483,220 (6,794,358) 4,613,722 4,694,699 2,712,458 9,546,004 1,670,485 (7,812,835) 10,810,811 Condensed Consolidating Balance Sheet at October 31, 2019: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated ASSETS Cash and cash equivalents — — 1,082,067 203,947 — 1,286,014 Inventory 7,791,759 81,289 7,873,048 Property, construction and office equipment, net 263,140 10,272 273,412 Receivables, prepaid expenses and other assets 224,681 610,541 (119,781) 715,441 Mortgage loans held for sale 218,777 218,777 Customer deposits held in escrow 74,303 100 74,403 Investments in unconsolidated entities 50,594 315,658 366,252 Investments in and advances to consolidated entities 5,172,737 2,704,551 163,371 147,413 (8,188,072) — Income taxes receivable 20,791 20,791 5,193,528 2,704,551 9,649,915 1,587,997 (8,307,853) 10,828,138 LIABILITIES AND EQUITY Liabilities Loans payable 1,109,614 36,092 (34,257) 1,111,449 Senior notes 2,659,898 2,659,898 Mortgage company loan facility 150,000 150,000 Customer deposits 383,583 2,013 385,596 Accounts payable 347,715 884 348,599 Accrued expenses 754 26,812 569,476 443,180 (89,290) 950,932 Advances from consolidated entities 1,052,370 503,058 (1,555,428) — Income taxes payable 102,971 102,971 Total liabilities 103,725 2,686,710 3,462,758 1,135,227 (1,678,975) 5,709,445 Equity Stockholders’ equity Common stock 1,529 48 3,006 (3,054) 1,529 Additional paid-in capital 726,879 49,400 177,034 (226,434) 726,879 Retained earnings (deficit) 4,792,409 (31,559) 6,187,109 225,853 (6,399,390) 4,774,422 Treasury stock, at cost (425,183) (425,183) Accumulated other comprehensive loss (5,831) (5,831) Total stockholders’ equity 5,089,803 17,841 6,187,157 405,893 (6,628,878) 5,071,816 Noncontrolling interest 46,877 46,877 Total equity 5,089,803 17,841 6,187,157 452,770 (6,628,878) 5,118,693 5,193,528 2,704,551 9,649,915 1,587,997 (8,307,853) 10,828,138 Condensed Consolidating Statement of Operations and Comprehensive Income for the six months ended April 30, 2020: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Revenues: Home sales 2,798,935 14,636 2,813,571 Land sales and other 43,964 112,929 (89,961) 66,932 — — 2,842,899 127,565 (89,961) 2,880,503 Cost of revenues: Home sales 2,301,861 11,286 (2,558) 2,310,589 Land sales and other 26,132 71,086 (38,518) 58,700 — — 2,327,993 82,372 (41,076) 2,369,289 Selling, general and administrative 100 36 385,041 32,991 (46,998) 371,170 Income (loss) from operations (100) (36) 129,865 12,202 (1,887) 140,044 Other: Income (loss) from unconsolidated entities 14,715 (6,845) 7,870 Other income – net 14,068 10,476 (4,413) 20,131 Intercompany interest income 65,642 2,930 2,802 (71,374) — Interest expense (65,606) (2,802) (3,266) 71,674 — Income from subsidiaries 168,145 15,369 (183,514) — Income before income taxes 168,045 — 174,145 15,369 (189,514) 168,045 Income tax provision 35,499 36,788 3,246 (40,034) 35,499 Net income 132,546 — 137,357 12,123 (149,480) 132,546 Other comprehensive income 556 556 Total comprehensive income 133,102 — 137,357 12,123 (149,480) 133,102 Condensed Consolidating Statement of Operations and Comprehensive Income for the six months ended April 30, 2019: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Revenues: Home sales 2,967,351 64,014 3,031,365 Land sales and other 30,793 107,644 (90,527) 47,910 — — 2,998,144 171,658 (90,527) 3,079,275 Cost of revenues: Home sales 2,365,786 50,965 (159) 2,416,592 Land sales and other 7,979 62,801 (33,606) 37,174 — — 2,373,765 113,766 (33,765) 2,453,766 Selling, general and administrative 491 1,395 355,050 36,095 (52,422) 340,609 Income (loss) from operations (491) (1,395) 269,329 21,797 (4,340) 284,900 Other: Income from unconsolidated entities 8,541 2,018 10,559 Other income – net 12,255 14,250 5,641 32,146 Intercompany interest income 67,004 870 2,980 (70,854) — Interest expense (65,609) (2,980) (964) 69,553 — Income from subsidiaries 328,096 40,081 (368,177) — Income before income taxes 327,605 — 328,096 40,081 (368,177) 327,605 Income tax provision 86,231 86,355 10,549 (96,904) 86,231 Net income 241,374 — 241,741 29,532 (271,273) 241,374 Other comprehensive income 112 112 Total comprehensive income 241,486 — 241,741 29,532 (271,273) 241,486 Condensed Consolidating Statement of Operations and Comprehensive Income for the three months ended April 30, 2020: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Revenues: Home sales 1,509,558 6,676 1,516,234 Land sales and other 26,168 54,653 (47,983) 32,838 — — 1,535,726 61,329 (47,983) 1,549,072 Cost of revenues: Home sales 1,248,159 5,284 (2,754) 1,250,689 Land sales and other 14,274 32,250 (20,106) 26,418 — — 1,262,433 37,534 (22,860) 1,277,107 Selling, general and administrative 47 11 187,091 16,195 (23,927) 179,417 Income (loss) from operations (47) (11) 86,202 7,600 (1,196) 92,548 Other: Income (loss) from unconsolidated entities 513 (4,784) (4,271) Other income – net 9,402 9,508 (5,074) 13,836 Intercompany interest income 29,272 1,425 1,509 (32,206) — Interest expense (29,261) (1,509) (1,705) 32,475 — Income from subsidiaries 102,161 12,128 (114,289) — Income before income taxes 102,114 — 108,161 12,128 (120,290) 102,113 Income tax provision 26,443 27,725 2,802 (30,527) 26,443 Net income 75,671 — 80,436 9,326 (89,763) 75,670 Other comprehensive income 278 278 Total comprehensive income 75,949 — 80,436 9,326 (89,763) 75,948 Condensed Consolidating Statement of Operations and Comprehensive Income for the three months ended April 30, 2019: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Revenues: Home sales 1,675,155 36,902 1,712,057 Land sales and other 15,460 34,329 (45,752) 4,037 — — 1,690,615 71,231 (45,752) 1,716,094 Cost of revenues: Home sales 1,344,891 29,616 (160) 1,374,347 Land sales and other 3,841 16,909 (17,829) 2,921 — — 1,348,732 46,525 (17,989) 1,377,268 Selling, general and administrative 101 662 185,133 17,342 (24,867) 178,371 Income (loss) from operations (101) (662) 156,750 7,364 (2,896) 160,455 Other: Income from unconsolidated entities 3,154 1,265 4,419 Other income - net 6,758 1,019 3,508 11,285 Intercompany interest income 32,883 343 1,475 (34,701) — Interest expense (32,221) (1,475) (393) 34,089 — Income from consolidated subsidiaries 176,260 10,730 (186,990) — Income before income taxes 176,159 — 176,260 10,730 (186,990) 176,159 Income tax provision 46,835 46,859 2,914 (49,773) 46,835 Net income 129,324 — 129,401 7,816 (137,217) 129,324 Other comprehensive income 56 56 Total comprehensive income 129,380 — 129,401 7,816 (137,217) 129,380 Condensed Consolidating Statement of Cash Flows for the six months ended April 30, 2020: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Net cash (used in) provided by operating activities 3,362 7,917 (73,779) (90,059) (38,577) (191,136) Cash flow (used in) provided by investing activities: Purchase of property and equipment - net (51,752) 995 (50,757) Investments in unconsolidated entities (542) (9,721) (10,263) Return of investments in unconsolidated entities 9,508 25,376 34,884 Investment in foreclosed real estate and distressed loans (272) (272) Return of investments in foreclosed real estate and distressed loans 1,431 1,431 Acquisition of a business (60,349) (60,349) Proceeds from sales of golf club properties and an office building 15,617 15,617 Investment paid - intercompany (85,631) 85,631 — Intercompany advances 653,669 (7,917) (645,752) — Net cash (used in) provided by investing activities 653,669 (7,917) (188,766) 33,426 (560,121) (69,709) Cash flow (used in) provided by financing activities: Proceeds from loans payable 1,425,008 1,307,485 2,732,493 Principal payments of loans payable (1,002,646) (1,351,467) (2,354,113) Proceeds from stock-based benefit plans, net 5,305 5,305 Purchase of treasury stock (633,553) (633,553) Dividends paid (28,783) (28,783) Payments related to noncontrolling interest, net (936) (936) Dividend paid - intercompany (6,000) 6,000 — Investment received - intercompany 85,628 (85,628) — Intercompany advances (631,294) (47,032) 678,326 — Net cash (used in) provided by financing activities (657,031) — (208,932) (12,322) 598,698 (279,587) Net decrease in cash, cash equivalents, and restricted cash — — (471,477) (68,955) — (540,432) Cash, cash equivalents, and restricted cash, beginning of period — — 1,082,090 237,553 — 1,319,643 Cash, cash equivalents, and restricted cash, end of period — — 610,613 168,598 — 779,211 Condensed Consolidating Statement of Cash Flows for the six months ended April 30, 2019: Toll Subsidiary Guarantor Nonguarantor Eliminations Consolidated Net cash used in operating activities (525) (3,635) (69,339) (1,854) (10,325) (85,678) Cash flow provided by (used in) investing activities: Purchase of property and equipment — net (45,805) 864 (44,941) Investments in unconsolidated entities (3,091) (28,469) (31,560) Return of investments in unconsolidated entities 70,465 70,465 Investment in foreclosed real estate and distressed loans (522) (522) Return of investments in foreclosed real estate and distressed loans 1,214 1,214 Investment paid - intercompany (57,917) 57,917 — Proceeds from the sale of a golf club property 15,319 18,220 33,539 Intercompany advances 56,901 353,635 (410,536) — Net cash provided by (used in) investing activities 56,901 353,635 (91,494) 61,772 (352,619) 28,195 Cash flow (used in) provided by financing activities: Proceeds from loans payable 300,000 1,039,641 1,339,641 Debt issuance costs for loans payable (1,948) (1,948) Principal payments of loans payable (52,165) (1,079,630) (1,131,795) Redemption of senior notes (350,000) (350,000) Proceeds from stock-based benefit plans, net 1,302 1,302 Excess tax benefits from stock-based compensation — Purchase of treasury stock (25,244) (25,244) Dividends paid (32,434) (32,434) Receipts related to noncontrolling interest, net 13 13 Investment received - intercompany 57,917 (57,917) — Intercompany advances (395,905) (24,956) 420,861 — Net cash used in financing activities (56,376) (350,000) (150,018) (7,015) 362,944 (200,465) Net (decrease) increase in cash, cash equivalents, and restricted cash — — (310,851) 52,903 — (257,948) Cash, cash equivalents, and restricted cash, beginning of period — — 1,011,867 171,072 — 1,182,939 Cash, cash equivalents, and restricted cash, end of period — — 701,016 223,975 — 924,991 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2020 | Nov. 01, 2019 | Oct. 31, 2019 | Apr. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Customer Advances and Deposits | $ 419,653,000 | $ 419,653,000 | $ 385,596,000 | $ 385,600,000 | |
Operating Lease, Right-of-Use Asset | 109,458,000 | 109,458,000 | 0 | ||
Operating Lease, Liability | 127,754,000 | 127,754,000 | $ 0 | ||
Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Lease, Right-of-Use Asset | 109,500,000 | 109,500,000 | $ 114,500,000 | ||
Operating Lease, Liability | $ 118,500,000 | ||||
Home Building [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognized | $ 91,000,000 | $ 176,700,000 |
Acquisition (Details Textuals)
Acquisition (Details Textuals) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 29, 2020USD ($)home_sites | Apr. 30, 2020USD ($)luxury_homes | Apr. 30, 2019USD ($) | Oct. 31, 2019USD ($)communitieshome_sites | May 20, 2019USD ($)home_sites | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 60,349,000 | ||||
Number of Homes to be Delivered | luxury_homes | 6,428 | ||||
Sales Value of Outstanding Homes to be Delivered | $ 5,490,000,000 | ||||
Thrive Residential [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Name of Acquired Entity | Thrive Residential | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 60,300,000 | ||||
Number of home sites included in acquisition | home_sites | 680 | ||||
Sharp Residential [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Name of Acquired Entity | Sharp Residential, LLC | ||||
Sabal Homes [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Name of Acquired Entity | Sabal Homes LLC | ||||
Sharp Residential and Sabal Homes [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 162,400,000 | ||||
Number of home sites included in acquisition | home_sites | 2,550 | ||||
Number of Homes to be Delivered | home_sites | 204 | ||||
Sales Value of Outstanding Homes to be Delivered | $ 96,100,000 | ||||
Average Sales Price of Backlog | $ 471,100 | ||||
Business acquisition, number of selling communities | communities | 22 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Total Inventory | ||
Inventory | $ 8,195,633 | $ 7,873,048 |
Land controlled for future communities [Member] | ||
Total Inventory | ||
Inventory | 219,432 | 182,929 |
Land Owned for Future Communities [Member] | ||
Total Inventory | ||
Inventory | 1,043,335 | 868,202 |
Operating communities [Member] | ||
Total Inventory | ||
Inventory | $ 6,932,866 | $ 6,821,917 |
Inventory (Details 1)
Inventory (Details 1) $ in Thousands | Apr. 30, 2020USD ($)communities | Oct. 31, 2019USD ($)communities |
Land Owned for Future Communities [Member] | ||
Temporarily Closed communities | ||
Number of Communities (in ones) | communities | 15 | 16 |
Carrying Value | $ | $ 113,168 | $ 120,857 |
Operating communities [Member] | ||
Temporarily Closed communities | ||
Number of Communities (in ones) | communities | 1 | 1 |
Carrying Value | $ | $ 5,824 | $ 2,871 |
Inventory (Details 2)
Inventory (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Schedule of inventory [Line Items] | ||||
Inventory Write-down | $ 14,214 | $ 19,394 | $ 15,245 | $ 26,956 |
Land controlled for future communities [Member] | ||||
Schedule of inventory [Line Items] | ||||
Inventory Write-down | 11,809 | 1,899 | 12,840 | 3,676 |
Land controlled for future communities [Member] | Mid-Atlantic [Member] | ||||
Schedule of inventory [Line Items] | ||||
Inventory Write-down | 10,700 | 10,700 | ||
Land Owned for Future Communities [Member] | ||||
Schedule of inventory [Line Items] | ||||
Inventory Write-down | 2,105 | 2,105 | ||
Operating communities [Member] | ||||
Schedule of inventory [Line Items] | ||||
Inventory Write-down | $ 300 | $ 17,495 | $ 300 | $ 23,280 |
Inventory (Details 3)
Inventory (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Real estate inventory capitalized interest costs [Line Items] | ||||
Interest capitalized, beginning of period | $ 320,751 | $ 330,167 | $ 311,323 | $ 319,364 |
Interest incurred | 46,104 | 43,440 | 89,754 | 87,862 |
tol_RealEstateInventoryCapitalizedInterestCostsOtherIncome | (2,440) | (2,440) | ||
Interest capitalized on investments in unconsolidated entities | (897) | (1,270) | (1,778) | (3,084) |
Previously capitalized interest on investments in unconsolidated entities transferred to inventory | 120 | 1,315 | 120 | 4,303 |
Interest capitalized, end of period | 324,864 | 328,583 | 324,864 | 328,583 |
Home Building [Member] | ||||
Real estate inventory capitalized interest costs [Line Items] | ||||
Interest expensed to cost of revenues | (38,037) | (44,786) | (70,811) | (79,227) |
Land [Member] | ||||
Real estate inventory capitalized interest costs [Line Items] | ||||
Interest expensed to cost of revenues | $ (737) | $ (283) | $ (1,304) | $ (635) |
Inventory (Details Textual)
Inventory (Details Textual) $ in Thousands | Apr. 30, 2020USD ($) | Oct. 31, 2019USD ($) |
Variable Interest Entity [Line Items] | ||
Purchase Obligation | $ 2,615,518 | $ 2,360,726 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of VIE Land Purchase Contracts (in ones) | 131 | 127 |
Land Purchase Commitment To Unrelated Party [Member] | ||
Variable Interest Entity [Line Items] | ||
Purchase Obligation | $ 2,607,742 | $ 2,349,900 |
Land Purchase Commitment To Unrelated Party [Member] | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | ||
Variable Interest Entity [Line Items] | ||
Purchase Obligation | 2,150,000 | 2,000,000 |
Land Parcel Purchase Commitment [Member] | ||
Variable Interest Entity [Line Items] | ||
Deposits against Aggregate Purchase Commitments | 189,705 | 168,778 |
Land Parcel Purchase Commitment [Member] | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | ||
Variable Interest Entity [Line Items] | ||
Deposits against Aggregate Purchase Commitments | $ 171,200 | $ 149,200 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Details 1) $ in Thousands | Apr. 30, 2020USD ($)joint_ventures | Oct. 31, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 41 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ | $ 364,041 | $ 366,252 |
Number of joint venture with funding commitments | joint_ventures | 6 | |
Other Commitment | $ | $ 45,276 | |
Land Development Joint Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 8 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ | $ 103,301 | |
Number of joint venture with funding commitments | joint_ventures | 2 | |
Home Building Joint Ventures, Total [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 4 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ | $ 42,961 | |
Number of joint venture with funding commitments | joint_ventures | 0 | |
Rental Joint Ventures, including the Trust [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 22 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ | $ 197,377 | |
Number of joint venture with funding commitments | joint_ventures | 3 | |
Gibraltar Joint Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Joint Ventures | joint_ventures | 7 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ | $ 20,402 | |
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 Equity Method Investments [Line Items] | ||
Other Commitment | $ | $ 27,530 | |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Home Building Joint Ventures, Total [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Commitment | $ | 0 | |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Rental Joint Ventures, including the Trust [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Commitment | $ | 11,514 | |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Gibraltar Joint Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Commitment | $ | $ 6,232 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities (Details 2) $ in Thousands | Apr. 30, 2020USD ($)joint_ventures |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures with loan commitments | joint_ventures | 24 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,689,850 |
Amounts borrowed under commitments | $ 1,240,626 |
Land Development Joint Ventures [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures with loan commitments | joint_ventures | 3 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 110,842 |
Amounts borrowed under commitments | $ 95,900 |
Home Building Joint Ventures, Total [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures with loan commitments | joint_ventures | 1 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 62,384 |
Amounts borrowed under commitments | $ 62,384 |
Rental Joint Ventures, including the Trust [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures with loan commitments | joint_ventures | 20 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,516,624 |
Amounts borrowed under commitments | $ 1,082,342 |
Investments in Unconsolidated_5
Investments in Unconsolidated Entities (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2020USD ($)rental_unitshome_sitesjoint_venturesHomes_sold | Jan. 31, 2020USD ($) | Apr. 30, 2019USD ($)home_sitesHomes_sold | Apr. 30, 2020USD ($)joint_venturesrental_unitshome_sitesHomes_sold | Apr. 30, 2019USD ($)home_sitesHomes_sold | Oct. 31, 2019USD ($) | |
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Summarized Financial Information, Revenue | $ 79,112 | $ 178,388 | $ 212,282 | $ 331,617 | ||
Revenues | 1,549,072 | 1,716,094 | 2,880,503 | 3,079,275 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 364,041 | 364,041 | $ 366,252 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,689,850 | 1,689,850 | ||||
Long-term Line of Credit | 1,240,626 | 1,240,626 | ||||
Other Commitment | $ 45,276 | $ 45,276 | ||||
Number of Joint Ventures | joint_ventures | 41 | 41 | ||||
Equity Method Investment, Other than Temporary Impairment | $ 3,000 | $ 0 | $ 3,000 | $ 0 | ||
Rental Property Joint Ventures Northern New Jersey [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 76,000 | |||||
Rental Property Joint Ventures new fiscal 2020 [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 121,500 | 121,500 | ||||
Long-term Line of Credit | 11,400 | 11,400 | ||||
Rental Property Joint Ventures new fiscal 2019 [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 134,400 | 134,400 | ||||
Long-term Line of Credit | $ 62,600 | $ 62,600 | ||||
Land Development Joint Ventures [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Home sites sold | home_sites | 169 | 297 | 333 | 498 | ||
Equity Method Investment, Summarized Financial Information, Revenue | $ 19,300 | $ 49,000 | $ 43,900 | $ 138,800 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 110,842 | 110,842 | ||||
Long-term Line of Credit | $ 95,900 | $ 95,900 | ||||
Home Building Joint Ventures, Total [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Home sites sold | Homes_sold | 9 | 55 | 32 | 72 | ||
Equity Method Investment, Summarized Financial Information, Revenue | $ 24,300 | $ 94,600 | $ 91,400 | $ 121,800 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 62,384 | 62,384 | ||||
Long-term Line of Credit | 62,384 | 62,384 | ||||
Home Building Joint Venture Metro New York Five [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 76,600 | 76,600 | 236,500 | |||
Long-term Line of Credit | $ 62,400 | $ 62,400 | ||||
Rental Joint Ventures, including the Trust [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Real Estate Properties | joint_ventures | 25 | 25 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,516,624 | $ 1,516,624 | ||||
Long-term Line of Credit | $ 1,082,342 | $ 1,082,342 | ||||
Toll Brothers Realty Trust [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 33.30% | 33.30% | ||||
Toll Brothers Realty Trust [Member] | Management [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 33.30% | 33.30% | ||||
Rental Property Joint Ventures new fiscal 2020 Woburn MA [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,400 | $ 75,400 | ||||
Long-term Line of Credit | $ 0 | 0 | ||||
Rental Property Joint Ventures Northern New Jersey [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Proceeds from Sale of Equity Method Investments | 16,800 | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 10,700 | |||||
Rental Property Joint Ventures new fiscal 2020 [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Real Estate Properties | joint_ventures | 2 | 2 | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 24,900 | $ 24,900 | ||||
Rental Property Joint Ventures new fiscal 2019 [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Real Estate Properties | joint_ventures | 2 | 2 | ||||
Land sales earnings, net | $ 8,400 | |||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 15,700 | $ 15,700 | ||||
Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 75.00% | 75.00% | ||||
Land Development Joint Ventures [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 103,301 | $ 103,301 | ||||
Number of Joint Ventures | joint_ventures | 8 | 8 | ||||
Land Development Joint Ventures [Member] | Equity Method Investee [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Home sites sold | home_sites | 44 | 88 | 86 | 195 | ||
Equity Method Investment, Summarized Financial Information, Revenue | $ 4,300 | $ 25,300 | $ 7,800 | $ 96,500 | ||
Toll Brothers Realty Trust [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 33.30% | 33.30% | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 0 | $ 0 | ||||
Property Management Fee Revenue | $ 500 | |||||
Gibraltar Land Banking & Development Joint Ventures [Member] [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 25.00% | 25.00% | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 20,400 | $ 20,400 | ||||
Number of Joint Ventures | joint_ventures | 6 | 6 | ||||
Single Family Build to Rent JV [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 2,400 | $ 2,400 | ||||
Rental Property Joint Ventures new fiscal 2020 Woburn MA [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Land sales earnings, net | 900 | |||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 7,000 | $ 7,000 | ||||
Rental Property Joint Ventures new fiscal 2020 Woburn MA [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 75.00% | 75.00% | ||||
Occupied or Ready for Occupancy [Member] | Rental Joint Ventures, including the Trust [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Units in Real Estate Property | rental_units | 2,000 | 2,000 | ||||
Lease up Stage [Member] | Rental Joint Ventures, including the Trust [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Units in Real Estate Property | rental_units | 1,850 | 1,850 | ||||
Asset under Construction [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Units in Real Estate Property | rental_units | 200 | 200 | ||||
Asset under Construction [Member] | Rental Joint Ventures, including the Trust [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Units in Real Estate Property | rental_units | 4,200 | 4,200 | ||||
In Planning Phase [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Units in Real Estate Property | rental_units | 13,050 | 13,050 | ||||
Rental Property Joint Ventures new fiscal 2019 [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Payments to Acquire and Develop Real Estate | 41,900 | |||||
Rental Property Joint Ventures new fiscal 2020 [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Payments to Acquire and Develop Real Estate | $ 51,000 | |||||
Rental Joint Ventures, including the Trust [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Real Estate Properties | joint_ventures | 5 | 5 | ||||
Real Estate Investment Property, at Cost | 95,500 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | Rental Joint Ventures, including the Trust [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Number of Real Estate Properties | joint_ventures | 5 | 5 | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 142,600 | $ 142,600 | 145,800 | |||
Noncontrolling Interest in Variable Interest Entity | 42,300 | 42,300 | $ 41,000 | |||
Land [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Revenues | 32,838 | $ 4,037 | 66,932 | 47,910 | ||
Land [Member] | Rental Property Joint Ventures new fiscal 2020 [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Revenues | $ 26,200 | |||||
Land [Member] | Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Revenues | $ 39,800 | |||||
Land [Member] | Rental Property Joint Ventures new fiscal 2020 Woburn MA [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Revenues | 19,100 | |||||
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Land Development Joint Ventures [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Other Commitment | 27,530 | 27,530 | ||||
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Gibraltar Land Banking & Development Joint Ventures [Member] [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Other Commitment | 100,000 | 100,000 | ||||
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Single Family Build to Rent JV [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Other Commitment | $ 60,000 | $ 60,000 | ||||
Minimum [Member] | Rental Property Joint Ventures new fiscal 2020 [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Minimum [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Maximum [Member] | Rental Property Joint Ventures new fiscal 2020 [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 70.00% | 70.00% | ||||
Maximum [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Rental Property Joint Ventures new fiscal 2019 [Member] | Co-venturer [Member] | ||||||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 98.00% | 98.00% |
Investments in Unconsolidated_6
Investments in Unconsolidated Entities (Details Textual 2) $ in Thousands | 6 Months Ended | |
Apr. 30, 2020USD ($)joint_ventures | Oct. 31, 2019USD ($)joint_ventures | |
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,689,850 | |
Amounts borrowed under commitments | $ 1,240,626 | |
Number Of Entities That Are Considered Variable Interest Entities | joint_ventures | 16 | 18 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 364,041 | $ 366,252 |
Other Commitment | 45,276 | |
Equity Method Investee [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Guarantees, Fair Value Disclosure | $ 5,100 | |
Number Of Unconsolidated Entities That Are Considered Variable Interest Entities | joint_ventures | 11 | 13 |
Equity Method Investee [Member] | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 43,400 | $ 37,000 |
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,350,000 | |
Guarantees, Repayment and Carry Cost, Maximum | 190,600 | |
Amounts borrowed under commitments | 897,700 | |
Maximum repapyment and carry cost guarantee obligation for borrowings by JV | $ 137,200 | |
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 | 4 months | |
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 | 4.0 years | |
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Guarantees, Repayment and Carry Cost, Maximum | $ 11,100 | 76,000 |
Maximum repapyment and carry cost guarantee obligation for borrowings by JV | 1,500 | 76,000 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 42,000 | 76,000 |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Ventures [Member] | Equity Method Investee [Member] | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Other Commitment | $ 14,900 | 8,300 |
Rental Joint Ventures, including the Trust [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Number of Real Estate Properties | joint_ventures | 5 | |
Rental Joint Ventures, including the Trust [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Number of Real Estate Properties | joint_ventures | 5 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 142,600 | 145,800 |
Noncontrolling Interest in Variable Interest Entity | $ 42,300 | $ 41,000 |
Investments in Unconsolidated_7
Investments in Unconsolidated Entities (Details 3) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Condensed Balance Sheets: | ||
Cash and cash equivalents | $ 112,569 | $ 85,819 |
Inventory | 487,705 | 579,226 |
Loans receivable, net | 33,287 | 56,545 |
Rental properties | 1,000,062 | 1,021,848 |
Rental properties under development | 708,022 | 535,197 |
Real estate owned | 12,298 | 12,267 |
Other assets | 170,698 | 212,761 |
Total assets | 2,524,641 | 2,503,663 |
Debt, net of deferred financing costs | 1,229,197 | 1,226,857 |
Other liabilities | 186,831 | 175,827 |
Member's equity | 1,108,232 | 1,100,563 |
Noncontrolling interest | 381 | 416 |
Total liabilities and equity | 2,524,641 | 2,503,663 |
Investments in unconsolidated entities | $ 364,041 | $ 366,252 |
Investments in Unconsolidated_8
Investments in Unconsolidated Entities (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Condensed Statements of Operations and Comprehensive Income: | ||||
Revenues | $ 79,112 | $ 178,388 | $ 212,282 | $ 331,617 |
Cost of revenues | 50,041 | 157,196 | 145,349 | 288,951 |
Other expenses | 32,066 | 22,879 | 73,182 | 41,354 |
Total expenses | 82,107 | 180,075 | 218,531 | 330,305 |
Gain on disposition of loans and real estate owned | 0 | 0 | 0 | 3,694 |
Income (loss) from operations | (2,995) | (1,687) | (6,249) | 5,006 |
Other income | (84) | 1,090 | 529 | 1,737 |
Income (loss) before income taxes | (3,079) | (597) | (5,720) | 6,743 |
Income tax provision | (287) | (40) | (147) | 225 |
Net income (loss) including earnings from noncontrolling interests | (2,792) | (557) | (5,573) | 6,518 |
Less: (income) loss attributable to noncontrolling interest | 0 | 31 | 0 | (2,078) |
Net income (loss) attributable to controlling interest | (2,792) | (526) | (5,573) | 4,440 |
Income (loss) from unconsolidated entities | $ (4,271) | $ 4,419 | $ 7,870 | $ 10,559 |
Receivables, Prepaid Expenses_3
Receivables, Prepaid Expenses, and Other Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Receivables, prepaid expenses and other assets [Line Items] | ||
Expected recoveries from insurance carriers and others | $ 86,914 | $ 114,162 |
Improvement cost receivable | 106,280 | 100,864 |
Escrow cash held by our captive title company | 36,465 | 32,863 |
Property held for rental apartment and commercial development | 532,436 | 367,072 |
Prepaid expenses | 24,809 | 26,041 |
Operating Lease, Right-of-Use Asset | 109,458 | 0 |
Other | 86,732 | 74,439 |
Receivables, prepaid expenses and other assets | 983,094 | 715,441 |
Variable Interest Entity, Primary Beneficiary [Member] | Rental Joint Ventures, including the Trust [Member] | ||
Receivables, prepaid expenses and other assets [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 142,600 | $ 145,800 |
Loans Payable, Senior Notes a_3
Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 1,240,626 | |
Other Loans Payable | 309,390 | $ 314,577 |
Loans payable | 1,556,572 | 1,111,449 |
Oct 2019 Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 450,000 | 0 |
Senior unsecured term loan [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Long-term Debt, Noncurrent | 800,000 | 800,000 |
Deferred Finance Costs, Net | $ (2,818) | $ (3,128) |
Loans Payable, Senior Notes a_4
Loans Payable, Senior Notes and Mortgage Company Loan Facility Term Loan Facility (Details Textual 1) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2020 | Oct. 31, 2019 | |
Senior unsecured term loan [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Long-term Debt, Noncurrent | $ 800,000 | $ 800,000 |
Debt Instrument, Term | 5 years | |
Debt Instrument, Interest Rate at Period End | 1.46% | |
Guarantor Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Loans Payable, Senior Notes a_5
Loans Payable, Senior Notes and Mortgage Company Loan Facility Credit Facility (Details Textual 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,689,850 | ||
Long-term Line of Credit | 1,240,626 | ||
Oct 2019 Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,905,000 | ||
Debt Instrument, Term | 5 years | ||
Debt Instrument, Maturity Date | Nov. 1, 2024 | ||
Maximum Permissible Leverage Ratio | 175.00% | ||
Minimum Net Worth Required for Compliance | $ 2,110,000 | ||
Existing Leverage Ratio | 0.75 | ||
Tangible Net Worth | $ 4,510,000 | ||
Ability to repurchase common stock | 3,030,000 | ||
Ability to pay dividends | 2,410,000 | ||
Long-term Line of Credit | 450,000 | $ 0 | |
Letters of Credit Outstanding, Amount | $ 164,800 | ||
Debt Instrument, Interest Rate at Period End | 1.71% | ||
Guarantor Subsidiaries [Member] | |||
Line of Credit Facility [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||
Subsequent Event [Member] | Oct 2019 Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Repayments of Lines of Credit | $ 100,000 |
Loans Payable, Senior Notes a_6
Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable - Other (Details Textual 3) | Apr. 30, 2020 |
Loans Payable [Member] | |
Debt Instrument [Line Items] | |
Debt, Weighted Average Interest Rate | 4.38% |
Loans Payable, Senior Notes a_7
Loans Payable, Senior Notes and Mortgage Company Loan Facility Senior Notes Payable (Details Textual 4) $ in Millions | Apr. 30, 2020USD ($)debtissuances |
Senior Note Payable (Textual) [Abstract] | |
Number of issuances of senior debt | debtissuances | 7 |
Senior Notes [Member] | |
Senior Note Payable (Textual) [Abstract] | |
Debt Instrument, Face Amount | $ | $ 2,670 |
Loans Payable, Senior Notes a_8
Loans Payable, Senior Notes and Mortgage Company Loan Facility Mortgage Company Loan Facility (Details Textual 5) $ in Thousands | 6 Months Ended |
Apr. 30, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,689,850 |
Warehouse Agreement Borrowings [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | 75,000 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000 |
Debt Instrument, Maturity Date | Dec. 4, 2020 |
Debt Instrument, Interest Rate, Effective Percentage | 2.27% |
London Interbank Offered Rate (LIBOR) [Member] | Warehouse Agreement Borrowings [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.90% |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 |
Accrued expenses | ||||||
Land, land development and construction | $ 180,212 | $ 192,658 | ||||
Compensation and employee benefits | 168,959 | 183,592 | ||||
Escrow liability | 34,113 | 31,587 | ||||
Self-insurance | 194,969 | 193,405 | ||||
Warranty | 157,154 | $ 188,916 | 201,886 | $ 223,655 | $ 237,326 | $ 258,831 |
Operating Lease, Liability | 127,754 | 0 | ||||
Deferred income | 34,904 | 51,678 | ||||
Interest | 41,351 | 31,307 | ||||
Commitments to unconsolidated entities | 8,141 | 9,283 | ||||
Other | 50,986 | 55,536 | ||||
Accrued expenses, Total | $ 998,543 | $ 950,932 |
Accrued Expenses (Detail Textua
Accrued Expenses (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 42 Months Ended | |||||||
Apr. 30, 2020 | Jan. 31, 2017 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2016 | |
Loss Contingencies [Line Items] | |||||||||
Standard and Extended Product Warranty Accrual | $ 157,154 | $ 157,154 | $ 188,916 | $ 201,886 | $ 223,655 | $ 237,326 | $ 258,831 | ||
Loss Contingency, Receivable | 86,914 | 86,914 | 114,162 | ||||||
Water intrusion related [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | 324,400 | 324,400 | $ 324,400 | ||||||
Standard and Extended Product Warranty Accrual | 85,100 | 85,100 | 124,600 | ||||||
Water intrusion related [Member] | Warranty Obligations | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | 24,400 | 24,400 | |||||||
Other Assets [Member] | Water intrusion related [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Product Liability Contingency, Third Party Recovery | $ 152,600 | 152,600 | |||||||
Loss Contingency, Receivable | 70,500 | $ 70,500 | $ 97,900 | ||||||
Other Assets [Member] | Water intrusion related [Member] | Warranty Obligations | |||||||||
Loss Contingencies [Line Items] | |||||||||
Product Liability Contingency, Third Party Recovery | $ 24,400 |
Accrued Expenses (Details 1)
Accrued Expenses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Changes in the warranty accrual | ||||
Balance, beginning of year | $ 188,916 | $ 237,326 | $ 201,886 | $ 258,831 |
Additions - homes closed during the period | 7,254 | 8,329 | 14,278 | 14,954 |
Standard Product Warranty Accrual, Additions from Business Acquisition | 60 | 60 | ||
Charges incurred | (17,037) | (22,963) | (38,249) | (50,402) |
Balance, end of year | 157,154 | 223,655 | 157,154 | 223,655 |
Warranty Obligations | ||||
Changes in the warranty accrual | ||||
Increase (decrease) to accruals for homes closed in prior years | (24,400) | (24,400) | ||
Warranty change, homes closed in prior period, other [Member] | ||||
Changes in the warranty accrual | ||||
Increase (decrease) to accruals for homes closed in prior years | $ 2,361 | $ 963 | $ 3,579 | $ 272 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Taxes (Textual) [Abstract] | ||||
Income tax provision | $ 26,443 | $ 46,835 | $ 35,499 | $ 86,231 |
Effective Income Tax Rate Reconciliation, Percent | 25.90% | 26.60% | 21.10% | 26.30% |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | $ 6,900 | |||
Unrecognized Tax Benefits | $ 8,400 | $ 8,400 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range Not Possible | During the next 12 months, it is reasonably possible that our unrecognized tax benefits will change, but we are not able to provide a range of such change. | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes (Textual) [Abstract] | ||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 5.50% | 6.10% |
Stock-Based Benefit Plans (Deta
Stock-Based Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense recognized | $ 3,419 | $ 5,331 | $ 16,802 | $ 13,916 |
Income tax benefit recognized | $ 870 | $ 1,396 | $ 4,278 | $ 3,652 |
Stock-Based Benefit Plans (De_2
Stock-Based Benefit Plans (Details Textual) - USD ($) $ in Millions | Apr. 30, 2020 | Oct. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unamortized value of outstanding stock-based compensation awards | $ 23.6 | $ 18.7 |
Stock Repurchase Program and _3
Stock Repurchase Program and Cash Dividend (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Stock Repurchase Program [Abstract] | ||||
Number of shares purchased | 4,252 | 3 | 15,938 | 788 |
Average price per share | $ 37.05 | $ 36.95 | $ 39.75 | $ 32.04 |
Remaining authorization at April 30: | 19,998 | 19,784 | 19,998 | 19,784 |
Stock Repurchase Program and _4
Stock Repurchase Program and Cash Dividend (Details Textual) - shares shares in Millions | Dec. 19, 2019 | Dec. 12, 2018 |
December 2018 Repurchase Program [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 20 | |
December 2019 Repurchase Program [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 20 |
Stock Repurchase Program and _5
Stock Repurchase Program and Cash Dividend (Details Textual 1) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Stock Repurchase Program and Cash Dividend [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared and Paid | $ 0.11 | $ 0.11 | $ 0.22 | $ 0.22 |
Earnings Per Share Informatio_2
Earnings Per Share Information (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income as reported | $ 75,670 | $ 129,324 | $ 132,546 | $ 241,374 |
Basic weighted-average shares | 128,205 | 146,622 | 133,175 | 146,687 |
Common stock equivalents | 604 | 1,507 | 1,174 | 1,394 |
Diluted weighted-average shares | 128,809 | 148,129 | 134,349 | 148,081 |
Debt Instrument [Line Items] | ||||
Shares issued under stock incentive and employee stock purchase plans | 60 | 144 | 608 | 654 |
Restricted Stock Units RSU And Employee Stock Option Member [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted-average number of antidilutive options and restricted stock units | 3,967 | 756 | 2,321 | 1,690 |
Fair Value Disclosures (Level 4
Fair Value Disclosures (Level 4 FV of Fin Instr) (Details) - Fair Value, Recurring [Member] - Level 2 [Member] - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Forward Contracts [Member] | Residential Mortgage [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Asset | $ (43) | $ 298 |
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 | 141,007 | 218,777 |
Interest Rate Lock Commitments [Member] | Forward Contracts [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Liability | (1,461) | (964) |
Interest Rate Lock Commitments [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Asset | $ 1,461 | $ 964 |
Fair Value Disclosures (Level_2
Fair Value Disclosures (Level 4 loan UPB vs FV) (Details 1) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Aggregate unpaid principal and fair value of mortgage loans held for sale | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 141,007 | $ 218,777 |
Fair Value, 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 | ||
Aggregate unpaid principal balance | 138,773 | 216,280 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 141,007 | 218,777 |
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | $ 2,234 | $ 2,497 |
Fair Value Disclosures (Level_3
Fair Value Disclosures (Level 4 Inv Impair inputs) (Details 2) - Operating communities [Member] $ in Thousands | 3 Months Ended | |||||
Apr. 30, 2020USD ($)Homes_sold | Jan. 31, 2020USD ($)Homes_sold | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | |
Minimum [Member] | ||||||
Fair value inputs, assets, quantitative information [Line Items] | ||||||
Average selling price | $ 613 | $ 478 | $ 530 | $ 372 | $ 836 | |
Sales Pace (in ones) | 9 | 2 | 2 | 2 | 2 | |
Fair Value Inputs, Discount Rate | 14.30% | 13.80% | 7.80% | 12.00% | 12.50% | |
Maximum [Member] | ||||||
Fair value inputs, assets, quantitative information [Line Items] | ||||||
Average selling price | $ 789 | $ 857 | $ 1,113 | $ 1,915 | $ 13,495 | |
Sales Pace (in ones) | 9 | 5 | 9 | 19 | 12 | |
Fair Value Inputs, Discount Rate | 14.30% | 14.50% | 13.00% | 26.00% | 15.80% |
Fair Value Disclosures (Level_4
Fair Value Disclosures (Level 4 inventory fv) (Details 3) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | Oct. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Inventory Write-down | $ 14,214 | $ 19,394 | $ 15,245 | $ 26,956 | |||||
Operating communities [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Inventory Write-down | 300 | $ 31,075 | |||||||
Fair Value, 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 (in ones) | 80 | 65 | 71 | 69 | 64 | 49 | |||
Number of Communities Impaired (in ones) | 1 | 0 | 7 | 3 | 6 | 5 | |||
Fair Value Of Communities Net Of Impairment Charges | $ 2,754 | $ 0 | $ 18,910 | $ 5,436 | $ 36,159 | $ 37,282 | $ 2,754 | $ 36,159 | $ 18,910 |
Inventory Write-down | $ 300 | $ 0 | $ 6,695 | $ 1,100 | $ 17,495 | $ 5,785 | |||
City Living [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Operating communities [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Number of Communities Impaired (in ones) | 1 | 1 | |||||||
Inventory Write-down | $ 2,000 | $ 2,800 | |||||||
North [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Operating communities [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Number of Communities Impaired (in ones) | 4 | 4 | 3 | ||||||
Inventory Write-down | $ 5,100 | $ 15,000 | $ 1,500 | ||||||
South [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Operating communities [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Number of Communities Impaired (in ones) | 2 | 1 | 1 | ||||||
Inventory Write-down | $ 600 | $ 500 | $ 1,500 | ||||||
Pacific [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Operating communities [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Number of Communities Impaired (in ones) | 1 | ||||||||
Inventory Write-down | $ 1,000 |
Fair Value Disclosures (Level_5
Fair Value Disclosures (Level 4 debt fv) (Details 4) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 4,335,283 | $ 3,934,453 |
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 | 1,559,389 | 1,114,577 |
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 | 106,018 | 150,000 |
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 | 2,669,876 | 2,669,876 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 4,342,489 | 4,085,083 |
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 | 1,559,587 | 1,112,040 |
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 | 106,018 | 150,000 |
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 | $ 2,676,884 | $ 2,823,043 |
Other Income - Net (Details)
Other Income - Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Other Nonoperating Income By Component [Line Items] | |||||
Interest income | $ 1,896 | $ 4,338 | $ 6,798 | $ 10,210 | |
Income from Ancillary Businesses | 14,582 | 4,242 | 15,104 | 18,086 | |
Management fee income from home building unconsolidated entities, net | 1,549,072 | 1,716,094 | 2,880,503 | 3,079,275 | |
Interest Expense, Debt | (2,440) | (2,440) | |||
Other | (409) | (414) | (884) | (877) | |
Total other income - net | 13,836 | 11,285 | 20,131 | 32,146 | |
Revenues and expenses of non-core ancillary businesses | |||||
Revenue | 27,432 | 32,846 | 53,842 | 65,129 | |
Expense | 25,820 | 29,749 | 51,708 | 60,374 | |
Gain (Loss) on Disposition of Business | 12,970 | 1,145 | $ 12,200 | 12,970 | 13,331 |
Management Fee [Member] | |||||
Other Nonoperating Income By Component [Line Items] | |||||
Management fee income from home building unconsolidated entities, net | $ 207 | $ 3,119 | $ 1,553 | $ 4,727 |
Other Income - Net (Details Tex
Other Income - Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Income from Ancillary Businesses, net | $ 14,582 | $ 4,242 | $ 15,104 | $ 18,086 | |
Proceeds from sale of golf club property | $ 18,200 | 15,617 | 33,539 | ||
Gain (Loss) on Disposition of Business | 12,970 | 1,145 | $ 12,200 | 12,970 | 13,331 |
Recognition of previously deferred gain | 3,800 | ||||
Golf Club Properties [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from sale of golf club property | 15,600 | ||||
Gain (Loss) on Disposition of Business | 9,100 | ||||
Apartment living [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income from Ancillary Businesses, net | $ 3,500 | $ 2,100 | $ 7,200 | $ 4,700 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Company's land purchase commitments | ||
Purchase Obligation | $ 2,615,518 | $ 2,360,726 |
Land Purchase Commitment To Unrelated Party [Member] | ||
Company's land purchase commitments | ||
Purchase Obligation | 2,607,742 | 2,349,900 |
Land Purchase Commitment To JV [Member] | ||
Company's land purchase commitments | ||
Purchase Obligation | 7,776 | 10,826 |
Land Parcel Purchase Commitment [Member] | ||
Company's land purchase commitments | ||
Deposits against Aggregate Purchase Commitments | 189,705 | 168,778 |
Additional cash required to acquire land | 2,425,813 | 2,191,948 |
Amount of Additional Cash Required to Acquire Land Included in Accrued Expenses | $ 14,582 | $ 14,620 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) $ in Thousands | Apr. 30, 2020USD ($)home_sites | Oct. 31, 2019USD ($) |
Long-term Purchase Commitment [Line Items] | ||
Purchase Obligation | $ 2,615,518 | $ 2,360,726 |
Land for Apartment Development Purchase Commitment [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Obligation | 165,000 | |
Deposits against Aggregate Purchase Commitments | $ 7,600 | |
Land Development Joint Ventures [Member] | Commitment To Acquire Home Sites [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Maximum Quantity | home_sites | 2,500 |
Commitments and Contingencies_4
Commitments and Contingencies (Details Textual 1) $ in Millions | Apr. 30, 2020USD ($)luxury_homes |
Backlog Information [Abstract] | |
Number of homes to be delivered (in ones) | luxury_homes | 6,428 |
Aggregate sales value of outstanding homes to be delivered | $ 5,490 |
Oct 2019 Revolving Credit Facility [Member] | |
Loss Contingencies [Line Items] | |
Outstanding letter of credit | 164.8 |
Surety Bond Construction Improvements [Member] | |
Loss Contingencies [Line Items] | |
Outstanding Surety Bonds Amount | 823.2 |
Amount of work remains on improvements in the Company's various communities | 390.5 |
Surety Bond Other Obligations [Member] | |
Loss Contingencies [Line Items] | |
Additional outstanding surety bonds | $ 181.3 |
Commitments and Contingencies_5
Commitments and Contingencies (Details 1) - Loan Origination Commitments [Member] - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | $ 2,224,206 | $ 1,930,606 |
Investor commitments to purchase | 667,435 | 774,225 |
Interest Rate Lock Commitments [Member] | ||
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | 537,787 | 565,634 |
Investor commitments to purchase | 537,787 | 565,634 |
Non Interest Rate Lock Commitments [Member] | ||
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | 1,686,419 | 1,364,972 |
Mortgage Receivable [Member] | ||
Company's mortgage commitments | ||
Investor commitments to purchase | $ 129,648 | $ 208,591 |
Commitments and Contingencies_6
Commitments and Contingencies (Details Textuals 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2020 | Nov. 01, 2019 | Oct. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 109,458,000 | $ 109,458,000 | $ 0 | |
Operating Lease, Liability | 127,754,000 | 127,754,000 | $ 0 | |
Operating Lease, Payments | 4,300,000 | 8,200,000 | ||
Lease, Cost | 6,400,000 | 12,800,000 | ||
Variable Lease, Cost | 900,000 | 1,500,000 | ||
Short-term Lease, Cost | $ 1,000,000 | $ 2,000,000 | ||
Operating Lease, Weighted Average Remaining Lease Term | 9 years | 9 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% | 4.00% | ||
Accounting Standards Update 2016-02 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 109,500,000 | $ 109,500,000 | $ 114,500,000 | |
Operating Lease, Liability | $ 118,500,000 | |||
Land [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Weighted Average Remaining Lease Term | 94 years | 94 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.50% |
Commitments and Contingencies_7
Commitments and Contingencies (Details 3) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 8,455 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 19,327 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 17,437 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 15,039 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 12,133 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 213,509 | |
Lessee, Operating Lease, Liability, Payments, Due | 285,900 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 158,146 | |
Operating Lease, Liability | $ 127,754 | $ 0 |
Information on Segments (Detail
Information on Segments (Details Textual) | 6 Months Ended |
Apr. 30, 2020 | |
Information on Segments [Abstract] | |
Number of Segments | 2 |
Number of Geographic Segments | 5 |
Information on Segments (Deta_2
Information on Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2019 | |
Revenues | |||||
Revenues | $ 1,549,072 | $ 1,716,094 | $ 2,880,503 | $ 3,079,275 | |
Income (loss) before income taxes | |||||
Income before income taxes | 102,113 | 176,159 | 168,045 | 327,605 | |
Total assets | |||||
Total assets | 10,810,811 | 10,810,811 | $ 10,828,138 | ||
North [Member] | |||||
Revenues | |||||
Revenues | 296,023 | 345,090 | 550,082 | 616,608 | |
Income (loss) before income taxes | |||||
Income before income taxes | 16,996 | 7,287 | 19,527 | 22,358 | |
Total assets | |||||
Total assets | 1,540,813 | 1,540,813 | 1,487,012 | ||
Mid-Atlantic [Member] | |||||
Revenues | |||||
Revenues | 192,900 | 174,089 | 355,376 | 308,987 | |
Income (loss) before income taxes | |||||
Income before income taxes | (155) | 10,463 | 6,833 | 17,605 | |
Total assets | |||||
Total assets | 961,159 | 961,159 | 854,470 | ||
South [Member] | |||||
Revenues | |||||
Revenues | 230,860 | 242,761 | 414,490 | 419,689 | |
Income (loss) before income taxes | |||||
Income before income taxes | 20,113 | 28,648 | 29,190 | 44,313 | |
Total assets | |||||
Total assets | 1,250,034 | 1,250,034 | 1,165,974 | ||
Mountain [Member] | |||||
Revenues | |||||
Revenues | 337,504 | 285,809 | 600,600 | 512,208 | |
Income (loss) before income taxes | |||||
Income before income taxes | 33,199 | 27,377 | 50,784 | 52,980 | |
Total assets | |||||
Total assets | 1,979,579 | 1,979,579 | 1,769,649 | ||
Pacific [Member] | |||||
Revenues | |||||
Revenues | 423,292 | 579,616 | 818,648 | 1,023,665 | |
Income (loss) before income taxes | |||||
Income before income taxes | 67,737 | 122,982 | 131,059 | 214,614 | |
Total assets | |||||
Total assets | 2,527,780 | 2,527,780 | 2,627,417 | ||
Traditional Homebuilding [Member] | |||||
Revenues | |||||
Revenues | 1,480,579 | 1,627,365 | 2,739,196 | 2,881,157 | |
Income (loss) before income taxes | |||||
Income before income taxes | 137,890 | 196,757 | 237,393 | 351,870 | |
Total assets | |||||
Total assets | 8,259,365 | 8,259,365 | 7,904,522 | ||
City Living [Member] | |||||
Revenues | |||||
Revenues | 36,772 | 84,074 | 76,607 | 152,668 | |
Income (loss) before income taxes | |||||
Income before income taxes | 8,698 | 25,834 | 18,247 | 40,476 | |
Total assets | |||||
Total assets | 542,483 | 542,483 | 529,507 | ||
Corporate and other [Member] | |||||
Revenues | |||||
Revenues | (1,117) | 618 | (2,232) | (2,460) | |
Income (loss) before income taxes | |||||
Income before income taxes | (44,475) | (46,432) | (87,595) | (64,741) | |
Total assets | |||||
Total assets | 2,008,963 | 2,008,963 | $ 2,394,109 | ||
Home Building [Member] | |||||
Revenues | |||||
Revenues | 1,516,234 | 1,712,057 | 2,813,571 | 3,031,365 | |
Land [Member] | |||||
Revenues | |||||
Revenues | $ 32,838 | $ 4,037 | $ 66,932 | $ 47,910 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information (Level 4 Senior Note table) (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Supplemental Guarantor Information (Textual) [Abstract] | ||
Senior notes | $ 2,660,815 | $ 2,659,898 |
Senior Notes Due 2022 [Member] | ||
Supplemental Guarantor Information (Textual) [Abstract] | ||
Senior notes | $ 419,876 | |
Interest rate on notes | 5.875% | |
Senior Notes Due 2023 [Member] | ||
Supplemental Guarantor Information (Textual) [Abstract] | ||
Senior notes | $ 400,000 | |
Interest rate on notes | 4.375% | |
Senior Notes Due 2024 [Member] | ||
Supplemental Guarantor Information (Textual) [Abstract] | ||
Senior notes | $ 250,000 | |
Interest rate on notes | 5.625% | |
4.875% Senior Notes Due 2025 [Member] | ||
Supplemental Guarantor Information (Textual) [Abstract] | ||
Senior notes | $ 350,000 | |
Interest rate on notes | 4.875% | |
4.875% Senior Notes Due 2027 [Member] | ||
Supplemental Guarantor Information (Textual) [Abstract] | ||
Senior notes | $ 450,000 | |
Interest rate on notes | 4.875% | |
4.350% Senior Notes Due 2028 [Member] | ||
Supplemental Guarantor Information (Textual) [Abstract] | ||
Senior notes | $ 400,000 | |
Interest rate on notes | 4.35% | |
3.80% Senior Notes Due 2029 [Member] | ||
Supplemental Guarantor Information (Textual) [Abstract] | ||
Senior notes | $ 400,000 | |
Interest rate on notes | 3.80% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information (Level 4 BS) (Details 1) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 |
ASSETS | ||||||
Cash and cash equivalents | $ 741,222 | $ 1,286,014 | $ 924,448 | |||
Inventory | 8,195,633 | 7,873,048 | ||||
Property, construction and office equipment, net | 278,518 | 273,412 | ||||
Receivables, prepaid expenses and other assets | 983,094 | 715,441 | ||||
Mortgage loans held for sale | 141,007 | 218,777 | ||||
Customer deposits held in escrow | 74,690 | 74,403 | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 364,041 | 366,252 | ||||
Investments in and advances to consolidated entities | 0 | 0 | ||||
Income Taxes Receivable | 32,606 | 20,791 | ||||
Total assets | 10,810,811 | 10,828,138 | ||||
Liabilities: | ||||||
Loans payable | 1,556,572 | 1,111,449 | ||||
Senior notes | 2,660,815 | 2,659,898 | ||||
Mortgage company loan facility | 106,018 | 150,000 | ||||
Customer deposits | 419,653 | 385,596 | 385,600 | |||
Accounts payable | 350,019 | 348,599 | ||||
Accrued expenses | 998,543 | 950,932 | ||||
Advances from Affiliiate | 0 | 0 | ||||
Income taxes payable | 105,469 | 102,971 | ||||
Total liabilities | 6,197,089 | 5,709,445 | ||||
Equity: | ||||||
Common stock | 1,529 | 1,529 | ||||
Additional paid-in capital | 725,246 | 726,879 | ||||
Retained earnings | 4,878,017 | 4,774,422 | ||||
Treasury stock, at cost | (1,034,999) | (425,183) | ||||
Accumulated other comprehensive income | (5,275) | (5,831) | ||||
Total stockholders' equity | 4,564,518 | 5,071,816 | ||||
Noncontrolling interest | 49,204 | 46,877 | ||||
Total equity | 4,613,722 | $ 4,705,080 | 5,118,693 | $ 4,986,240 | $ 4,861,189 | $ 4,768,912 |
Total liabilities and stockholders' equity | 10,810,811 | 10,828,138 | ||||
Toll Brothers Inc. [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Inventory | ||||||
Property, construction and office equipment, net | ||||||
Receivables, prepaid expenses and other assets | 5,667 | |||||
Mortgage loans held for sale | ||||||
Customer deposits held in escrow | ||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | ||||||
Investments in and advances to consolidated entities | 4,656,426 | 5,172,737 | ||||
Income Taxes Receivable | 32,606 | 20,791 | ||||
Total assets | 4,694,699 | 5,193,528 | ||||
Liabilities: | ||||||
Loans payable | ||||||
Senior notes | ||||||
Mortgage company loan facility | ||||||
Customer deposits | ||||||
Accounts payable | ||||||
Accrued expenses | 6,724 | 754 | ||||
Advances from Affiliiate | ||||||
Income taxes payable | 105,469 | 102,971 | ||||
Total liabilities | 112,193 | 103,725 | ||||
Equity: | ||||||
Common stock | 1,529 | 1,529 | ||||
Additional paid-in capital | 725,246 | 726,879 | ||||
Retained earnings | 4,896,005 | 4,792,409 | ||||
Treasury stock, at cost | (1,034,999) | (425,183) | ||||
Accumulated other comprehensive income | (5,275) | (5,831) | ||||
Total stockholders' equity | 4,582,506 | 5,089,803 | ||||
Noncontrolling interest | ||||||
Total equity | 4,582,506 | 5,089,803 | ||||
Total liabilities and stockholders' equity | 4,694,699 | 5,193,528 | ||||
Subsidiary Issuer [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | ||||
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 and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | ||||||
Investments in and advances to consolidated entities | 2,712,458 | 2,704,551 | ||||
Income Taxes Receivable | ||||||
Total assets | 2,712,458 | 2,704,551 | ||||
Liabilities: | ||||||
Loans payable | ||||||
Senior notes | 2,660,815 | 2,659,898 | ||||
Mortgage company loan facility | ||||||
Customer deposits | ||||||
Accounts payable | ||||||
Accrued expenses | 33,802 | 26,812 | ||||
Advances from Affiliiate | ||||||
Income taxes payable | ||||||
Total liabilities | 2,694,617 | 2,686,710 | ||||
Equity: | ||||||
Common stock | ||||||
Additional paid-in capital | 49,400 | 49,400 | ||||
Retained earnings | (31,559) | (31,559) | ||||
Treasury stock, at cost | ||||||
Accumulated other comprehensive income | ||||||
Total stockholders' equity | 17,841 | 17,841 | ||||
Noncontrolling interest | ||||||
Total equity | 17,841 | 17,841 | ||||
Total liabilities and stockholders' equity | 2,712,458 | 2,704,551 | ||||
Guarantor Subsidiaries [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 610,591 | 1,082,067 | ||||
Inventory | 8,099,842 | 7,791,759 | ||||
Property, construction and office equipment, net | 276,552 | 263,140 | ||||
Receivables, prepaid expenses and other assets | 254,310 | 224,681 | ||||
Mortgage loans held for sale | ||||||
Customer deposits held in escrow | 74,648 | 74,303 | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 44,545 | 50,594 | ||||
Investments in and advances to consolidated entities | 185,516 | 163,371 | ||||
Income Taxes Receivable | ||||||
Total assets | 9,546,004 | 9,649,915 | ||||
Liabilities: | ||||||
Loans payable | 1,554,721 | 1,109,614 | ||||
Senior notes | ||||||
Mortgage company loan facility | ||||||
Customer deposits | 418,047 | 383,583 | ||||
Accounts payable | 330,970 | 347,715 | ||||
Accrued expenses | 566,295 | 569,476 | ||||
Advances from Affiliiate | 351,458 | 1,052,370 | ||||
Income taxes payable | ||||||
Total liabilities | 3,221,491 | 3,462,758 | ||||
Equity: | ||||||
Common stock | 48 | 48 | ||||
Additional paid-in capital | ||||||
Retained earnings | 6,324,465 | 6,187,109 | ||||
Treasury stock, at cost | ||||||
Accumulated other comprehensive income | ||||||
Total stockholders' equity | 6,324,513 | 6,187,157 | ||||
Noncontrolling interest | ||||||
Total equity | 6,324,513 | 6,187,157 | ||||
Total liabilities and stockholders' equity | 9,546,004 | 9,649,915 | ||||
Nonguarantor Subsidiaries [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 130,631 | 203,947 | ||||
Inventory | 95,791 | 81,289 | ||||
Property, construction and office equipment, net | 1,966 | 10,272 | ||||
Receivables, prepaid expenses and other assets | 774,796 | 610,541 | ||||
Mortgage loans held for sale | 141,007 | 218,777 | ||||
Customer deposits held in escrow | 42 | 100 | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 319,496 | 315,658 | ||||
Investments in and advances to consolidated entities | 206,756 | 147,413 | ||||
Income Taxes Receivable | ||||||
Total assets | 1,670,485 | 1,587,997 | ||||
Liabilities: | ||||||
Loans payable | 36,109 | 36,092 | ||||
Senior notes | ||||||
Mortgage company loan facility | 106,018 | 150,000 | ||||
Customer deposits | 2,122 | 2,013 | ||||
Accounts payable | 19,049 | 884 | ||||
Accrued expenses | 444,970 | 443,180 | ||||
Advances from Affiliiate | 578,997 | 503,058 | ||||
Income taxes payable | ||||||
Total liabilities | 1,187,265 | 1,135,227 | ||||
Equity: | ||||||
Common stock | 3,006 | 3,006 | ||||
Additional paid-in capital | 199,034 | 177,034 | ||||
Retained earnings | 231,976 | 225,853 | ||||
Treasury stock, at cost | ||||||
Accumulated other comprehensive income | ||||||
Total stockholders' equity | 434,016 | 405,893 | ||||
Noncontrolling interest | 49,204 | 46,877 | ||||
Total equity | 483,220 | 452,770 | ||||
Total liabilities and stockholders' equity | 1,670,485 | 1,587,997 | ||||
Eliminations [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Inventory | ||||||
Property, construction and office equipment, net | ||||||
Receivables, prepaid expenses and other assets | (51,679) | (119,781) | ||||
Mortgage loans held for sale | ||||||
Customer deposits held in escrow | ||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | ||||||
Investments in and advances to consolidated entities | (7,761,156) | (8,188,072) | ||||
Income Taxes Receivable | ||||||
Total assets | (7,812,835) | (8,307,853) | ||||
Liabilities: | ||||||
Loans payable | (34,258) | (34,257) | ||||
Senior notes | ||||||
Mortgage company loan facility | ||||||
Customer deposits | (516) | |||||
Accounts payable | ||||||
Accrued expenses | (53,248) | (89,290) | ||||
Advances from Affiliiate | (930,455) | (1,555,428) | ||||
Income taxes payable | ||||||
Total liabilities | (1,018,477) | (1,678,975) | ||||
Equity: | ||||||
Common stock | (3,054) | (3,054) | ||||
Additional paid-in capital | (248,434) | (226,434) | ||||
Retained earnings | (6,542,870) | (6,399,390) | ||||
Treasury stock, at cost | ||||||
Accumulated other comprehensive income | ||||||
Total stockholders' equity | (6,794,358) | (6,628,878) | ||||
Noncontrolling interest | ||||||
Total equity | (6,794,358) | (6,628,878) | ||||
Total liabilities and stockholders' equity | $ (7,812,835) | $ (8,307,853) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information (Level 4 IS) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | $ 1,549,072 | $ 1,716,094 | $ 2,880,503 | $ 3,079,275 |
Cost of revenues | 1,277,107 | 1,377,268 | 2,369,289 | 2,453,766 |
Selling, general and administrative | 179,417 | 178,371 | 371,170 | 340,609 |
Income (loss) from operations | 92,548 | 160,455 | 140,044 | 284,900 |
Other [Abstract] | ||||
Income (loss) from unconsolidated entities | (4,271) | 4,419 | 7,870 | 10,559 |
Other income - net | 13,836 | 11,285 | 20,131 | 32,146 |
Intercompany interest income | 0 | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 | 0 |
Income from subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 102,113 | 176,159 | 168,045 | 327,605 |
Income tax provision | 26,443 | 46,835 | 35,499 | 86,231 |
Net income (loss) | 75,670 | 129,324 | 132,546 | 241,374 |
Other Comprehensive Income (Loss), Net of Tax | 278 | 56 | 556 | 112 |
Comprehensive Income (loss), Net of Tax, Attributable to Parent | 75,948 | 129,380 | 133,102 | 241,486 |
Toll Brothers Inc. [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
Selling, general and administrative | 47 | 101 | 100 | 491 |
Income (loss) from operations | (47) | (101) | (100) | (491) |
Other [Abstract] | ||||
Income (loss) from unconsolidated entities | ||||
Other income - net | ||||
Intercompany interest income | ||||
Interest Expense | ||||
Income from subsidiaries | 102,161 | 176,260 | 168,145 | 328,096 |
Income (loss) before income taxes | 102,114 | 176,159 | 168,045 | 327,605 |
Income tax provision | 26,443 | 46,835 | 35,499 | 86,231 |
Net income (loss) | 75,671 | 129,324 | 132,546 | 241,374 |
Other Comprehensive Income (Loss), Net of Tax | 278 | 56 | 556 | 112 |
Comprehensive Income (loss), Net of Tax, Attributable to Parent | 75,949 | 129,380 | 133,102 | 241,486 |
Subsidiary Issuer [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
Selling, general and administrative | 11 | 662 | 36 | 1,395 |
Income (loss) from operations | (11) | (662) | (36) | (1,395) |
Other [Abstract] | ||||
Income (loss) from unconsolidated entities | ||||
Other income - net | ||||
Intercompany interest income | 29,272 | 32,883 | 65,642 | 67,004 |
Interest Expense | (29,261) | (32,221) | (65,606) | (65,609) |
Income from subsidiaries | ||||
Income (loss) before income taxes | 0 | 0 | 0 | 0 |
Income tax provision | ||||
Net income (loss) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Comprehensive Income (loss), Net of Tax, Attributable to Parent | 0 | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 1,535,726 | 1,690,615 | 2,842,899 | 2,998,144 |
Cost of revenues | 1,262,433 | 1,348,732 | 2,327,993 | 2,373,765 |
Selling, general and administrative | 187,091 | 185,133 | 385,041 | 355,050 |
Income (loss) from operations | 86,202 | 156,750 | 129,865 | 269,329 |
Other [Abstract] | ||||
Income (loss) from unconsolidated entities | 513 | 3,154 | 14,715 | 8,541 |
Other income - net | 9,402 | 6,758 | 14,068 | 12,255 |
Intercompany interest income | 1,425 | 343 | 2,930 | 870 |
Interest Expense | (1,509) | (1,475) | (2,802) | (2,980) |
Income from subsidiaries | 12,128 | 10,730 | 15,369 | 40,081 |
Income (loss) before income taxes | 108,161 | 176,260 | 174,145 | 328,096 |
Income tax provision | 27,725 | 46,859 | 36,788 | 86,355 |
Net income (loss) | 80,436 | 129,401 | 137,357 | 241,741 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Comprehensive Income (loss), Net of Tax, Attributable to Parent | 80,436 | 129,401 | 137,357 | 241,741 |
Nonguarantor Subsidiaries [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 61,329 | 71,231 | 127,565 | 171,658 |
Cost of revenues | 37,534 | 46,525 | 82,372 | 113,766 |
Selling, general and administrative | 16,195 | 17,342 | 32,991 | 36,095 |
Income (loss) from operations | 7,600 | 7,364 | 12,202 | 21,797 |
Other [Abstract] | ||||
Income (loss) from unconsolidated entities | (4,784) | 1,265 | (6,845) | 2,018 |
Other income - net | 9,508 | 1,019 | 10,476 | 14,250 |
Intercompany interest income | 1,509 | 1,475 | 2,802 | 2,980 |
Interest Expense | (1,705) | (393) | (3,266) | (964) |
Income from subsidiaries | ||||
Income (loss) before income taxes | 12,128 | 10,730 | 15,369 | 40,081 |
Income tax provision | 2,802 | 2,914 | 3,246 | 10,549 |
Net income (loss) | 9,326 | 7,816 | 12,123 | 29,532 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Comprehensive Income (loss), Net of Tax, Attributable to Parent | 9,326 | 7,816 | 12,123 | 29,532 |
Eliminations [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | (47,983) | (45,752) | (89,961) | (90,527) |
Cost of revenues | (22,860) | (17,989) | (41,076) | (33,765) |
Selling, general and administrative | (23,927) | (24,867) | (46,998) | (52,422) |
Income (loss) from operations | (1,196) | (2,896) | (1,887) | (4,340) |
Other [Abstract] | ||||
Income (loss) from unconsolidated entities | ||||
Other income - net | (5,074) | 3,508 | (4,413) | 5,641 |
Intercompany interest income | (32,206) | (34,701) | (71,374) | (70,854) |
Interest Expense | 32,475 | 34,089 | 71,674 | 69,553 |
Income from subsidiaries | (114,289) | (186,990) | (183,514) | (368,177) |
Income (loss) before income taxes | (120,290) | (186,990) | (189,514) | (368,177) |
Income tax provision | (30,527) | (49,773) | (40,034) | (96,904) |
Net income (loss) | (89,763) | (137,217) | (149,480) | (271,273) |
Other Comprehensive Income (Loss), Net of Tax | ||||
Comprehensive Income (loss), Net of Tax, Attributable to Parent | (89,763) | (137,217) | (149,480) | (271,273) |
Home Building [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 1,516,234 | 1,712,057 | 2,813,571 | 3,031,365 |
Cost of revenues | 1,250,689 | 1,374,347 | 2,310,589 | 2,416,592 |
Home Building [Member] | Toll Brothers Inc. [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | ||||
Cost of revenues | ||||
Home Building [Member] | Subsidiary Issuer [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | ||||
Cost of revenues | ||||
Home Building [Member] | Guarantor Subsidiaries [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 1,509,558 | 1,675,155 | 2,798,935 | 2,967,351 |
Cost of revenues | 1,248,159 | 1,344,891 | 2,301,861 | 2,365,786 |
Home Building [Member] | Nonguarantor Subsidiaries [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 6,676 | 36,902 | 14,636 | 64,014 |
Cost of revenues | 5,284 | 29,616 | 11,286 | 50,965 |
Home Building [Member] | Eliminations [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | ||||
Cost of revenues | (2,754) | (160) | (2,558) | (159) |
Land [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 32,838 | 4,037 | 66,932 | 47,910 |
Cost of revenues | 26,418 | 2,921 | 58,700 | 37,174 |
Land [Member] | Toll Brothers Inc. [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | ||||
Cost of revenues | ||||
Land [Member] | Subsidiary Issuer [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | ||||
Cost of revenues | ||||
Land [Member] | Guarantor Subsidiaries [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 26,168 | 15,460 | 43,964 | 30,793 |
Cost of revenues | 14,274 | 3,841 | 26,132 | 7,979 |
Land [Member] | Nonguarantor Subsidiaries [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | 54,653 | 34,329 | 112,929 | 107,644 |
Cost of revenues | 32,250 | 16,909 | 71,086 | 62,801 |
Land [Member] | Eliminations [Member] | ||||
Supplemental Condensed Consolidating Statement of Operations | ||||
Revenues | (47,983) | (45,752) | (89,961) | (90,527) |
Cost of revenues | $ (20,106) | $ (17,829) | $ (38,518) | $ (33,606) |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information (Level 4 CF) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | |
Cash flow (used in) provided by operating activities: | |||||
Net Cash (Used in) Provided by Operating Activities, Continuing Operations | $ (191,136) | $ (85,678) | |||
Cash flow (used in) provided by investing activities: | |||||
Purchase of property and equipment - net | (50,757) | (44,941) | |||
Investments in and advances to unconsolidated entities | (10,263) | (31,560) | |||
Return of investments in unconsolidated entities | 34,884 | 70,465 | |||
Investment in distressed loans and foreclosed real estate | (272) | (522) | |||
Return of investments in distressed loans and foreclosed real estate | 1,431 | 1,214 | |||
Acquisition of a business | (60,349) | ||||
Proceeds from sale of golf club property | $ 18,200 | 15,617 | 33,539 | ||
Investments paid intercompany | 0 | $ 0 | |||
Intercompany investing advances (to) from consolidated entities | 0 | 0 | |||
Net cash provided by (used in) investing activities | (69,709) | 28,195 | |||
Cash flow provided by (used in) financing activities: | |||||
Proceeds from loans payable | 2,732,493 | 1,339,641 | |||
Debt issuance costs for loans payable | (1,948) | ||||
Repayments of Notes Payable | (2,354,113) | (1,131,795) | |||
Repayments of Senior Debt | (350,000) | ||||
(Payments) proceeds from stock-based benefit plans | 5,305 | 1,302 | |||
Purchase of treasury stock | (633,553) | (25,244) | |||
Dividends paid | (28,783) | (32,434) | |||
Proceeds from (Payments to) Noncontrolling Interests | (936) | 13 | |||
Dividend paid - intercompany | 0 | ||||
Investment received intercompany | 0 | 0 | |||
Intercompany financing advances (to) from consolidated entities | 0 | 0 | |||
Net cash provided by (used in) financing activities | (279,587) | (200,465) | |||
Net increase (decrease) in cash and cash equivalents | (540,432) | (257,948) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 779,211 | 924,991 | 1,182,939 | $ 1,319,643 | |
Parent Company [Member] | |||||
Cash flow (used in) provided by operating activities: | |||||
Net Cash (Used in) Provided by Operating Activities, Continuing Operations | 3,362 | (525) | |||
Cash flow (used in) provided by investing activities: | |||||
Purchase of property and equipment - net | |||||
Investments in and advances to unconsolidated entities | |||||
Return of investments in unconsolidated entities | |||||
Investment in distressed loans and foreclosed real estate | |||||
Return of investments in distressed loans and foreclosed real estate | |||||
Acquisition of a business | |||||
Proceeds from sale of golf club property | |||||
Investments paid intercompany | |||||
Intercompany investing advances (to) from consolidated entities | 653,669 | 56,901 | |||
Net cash provided by (used in) investing activities | 653,669 | 56,901 | |||
Cash flow provided by (used in) financing activities: | |||||
Proceeds from loans payable | |||||
Debt issuance costs for loans payable | |||||
Repayments of Notes Payable | |||||
Repayments of Senior Debt | |||||
(Payments) proceeds from stock-based benefit plans | 5,305 | 1,302 | |||
Purchase of treasury stock | (633,553) | (25,244) | |||
Dividends paid | (28,783) | (32,434) | |||
Proceeds from (Payments to) Noncontrolling Interests | |||||
Dividend paid - intercompany | |||||
Investment received intercompany | |||||
Intercompany financing advances (to) from consolidated entities | |||||
Net cash provided by (used in) financing activities | (657,031) | (56,376) | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 | |
Subsidiary Issuer [Member] | |||||
Cash flow (used in) provided by operating activities: | |||||
Net Cash (Used in) Provided by Operating Activities, Continuing Operations | 7,917 | (3,635) | |||
Cash flow (used in) provided by investing activities: | |||||
Purchase of property and equipment - net | |||||
Investments in and advances to unconsolidated entities | |||||
Return of investments in unconsolidated entities | |||||
Investment in distressed loans and foreclosed real estate | |||||
Return of investments in distressed loans and foreclosed real estate | |||||
Acquisition of a business | |||||
Proceeds from sale of golf club property | |||||
Investments paid intercompany | |||||
Intercompany investing advances (to) from consolidated entities | (7,917) | 353,635 | |||
Net cash provided by (used in) investing activities | (7,917) | 353,635 | |||
Cash flow provided by (used in) financing activities: | |||||
Proceeds from loans payable | |||||
Debt issuance costs for loans payable | |||||
Repayments of Notes Payable | |||||
Repayments of Senior Debt | (350,000) | ||||
(Payments) proceeds from stock-based benefit plans | |||||
Purchase of treasury stock | |||||
Dividends paid | |||||
Proceeds from (Payments to) Noncontrolling Interests | |||||
Dividend paid - intercompany | |||||
Investment received intercompany | |||||
Intercompany financing advances (to) from consolidated entities | |||||
Net cash provided by (used in) financing activities | 0 | (350,000) | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 | |
Guarantor Subsidiaries [Member] | |||||
Cash flow (used in) provided by operating activities: | |||||
Net Cash (Used in) Provided by Operating Activities, Continuing Operations | (73,779) | (69,339) | |||
Cash flow (used in) provided by investing activities: | |||||
Purchase of property and equipment - net | (51,752) | (45,805) | |||
Investments in and advances to unconsolidated entities | (542) | (3,091) | |||
Return of investments in unconsolidated entities | 9,508 | ||||
Investment in distressed loans and foreclosed real estate | |||||
Return of investments in distressed loans and foreclosed real estate | |||||
Acquisition of a business | (60,349) | ||||
Proceeds from sale of golf club property | 15,319 | ||||
Investments paid intercompany | (85,631) | (57,917) | |||
Intercompany investing advances (to) from consolidated entities | |||||
Net cash provided by (used in) investing activities | (188,766) | (91,494) | |||
Cash flow provided by (used in) financing activities: | |||||
Proceeds from loans payable | 1,425,008 | 300,000 | |||
Debt issuance costs for loans payable | (1,948) | ||||
Repayments of Notes Payable | (1,002,646) | (52,165) | |||
Repayments of Senior Debt | |||||
(Payments) proceeds from stock-based benefit plans | |||||
Purchase of treasury stock | |||||
Dividends paid | |||||
Proceeds from (Payments to) Noncontrolling Interests | |||||
Dividend paid - intercompany | |||||
Investment received intercompany | |||||
Intercompany financing advances (to) from consolidated entities | (631,294) | (395,905) | |||
Net cash provided by (used in) financing activities | (208,932) | (150,018) | |||
Net increase (decrease) in cash and cash equivalents | (471,477) | (310,851) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 610,613 | 701,016 | 1,011,867 | 1,082,090 | |
Nonguarantor Subsidiaries [Member] | |||||
Cash flow (used in) provided by operating activities: | |||||
Net Cash (Used in) Provided by Operating Activities, Continuing Operations | (90,059) | (1,854) | |||
Cash flow (used in) provided by investing activities: | |||||
Purchase of property and equipment - net | 995 | 864 | |||
Investments in and advances to unconsolidated entities | (9,721) | (28,469) | |||
Return of investments in unconsolidated entities | 25,376 | 70,465 | |||
Investment in distressed loans and foreclosed real estate | (272) | (522) | |||
Return of investments in distressed loans and foreclosed real estate | 1,431 | 1,214 | |||
Acquisition of a business | |||||
Proceeds from sale of golf club property | 15,617 | 18,220 | |||
Investments paid intercompany | |||||
Intercompany investing advances (to) from consolidated entities | |||||
Net cash provided by (used in) investing activities | 33,426 | 61,772 | |||
Cash flow provided by (used in) financing activities: | |||||
Proceeds from loans payable | 1,307,485 | 1,039,641 | |||
Debt issuance costs for loans payable | |||||
Repayments of Notes Payable | (1,351,467) | (1,079,630) | |||
Repayments of Senior Debt | |||||
(Payments) proceeds from stock-based benefit plans | |||||
Purchase of treasury stock | |||||
Dividends paid | |||||
Proceeds from (Payments to) Noncontrolling Interests | (936) | 13 | |||
Dividend paid - intercompany | (6,000) | ||||
Investment received intercompany | 85,628 | 57,917 | |||
Intercompany financing advances (to) from consolidated entities | (47,032) | (24,956) | |||
Net cash provided by (used in) financing activities | (12,322) | (7,015) | |||
Net increase (decrease) in cash and cash equivalents | (68,955) | 52,903 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 168,598 | 223,975 | 171,072 | 237,553 | |
Eliminations [Member] | |||||
Cash flow (used in) provided by operating activities: | |||||
Net Cash (Used in) Provided by Operating Activities, Continuing Operations | (38,577) | (10,325) | |||
Cash flow (used in) provided by investing activities: | |||||
Purchase of property and equipment - net | |||||
Investments in and advances to unconsolidated entities | |||||
Return of investments in unconsolidated entities | |||||
Investment in distressed loans and foreclosed real estate | |||||
Return of investments in distressed loans and foreclosed real estate | |||||
Acquisition of a business | |||||
Proceeds from sale of golf club property | |||||
Investments paid intercompany | 85,631 | 57,917 | |||
Intercompany investing advances (to) from consolidated entities | (645,752) | (410,536) | |||
Net cash provided by (used in) investing activities | (560,121) | (352,619) | |||
Cash flow provided by (used in) financing activities: | |||||
Proceeds from loans payable | |||||
Debt issuance costs for loans payable | |||||
Repayments of Notes Payable | |||||
Repayments of Senior Debt | |||||
(Payments) proceeds from stock-based benefit plans | |||||
Purchase of treasury stock | |||||
Dividends paid | |||||
Proceeds from (Payments to) Noncontrolling Interests | |||||
Dividend paid - intercompany | 6,000 | ||||
Investment received intercompany | (85,628) | (57,917) | |||
Intercompany financing advances (to) from consolidated entities | 678,326 | 420,861 | |||
Net cash provided by (used in) financing activities | 598,698 | 362,944 | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor Inform_7
Supplemental Guarantor Information Supplemental Guarantor Information (Level 4 Textuals) (Details) | Apr. 30, 2020 |
Entity Information [Line Items] | |
Supplemental Guarantor Information, consolidated net worth of released guarantor subsidiary | 5.00% |
supplemental guarantor information, consolidated net worth of all released guarantor subsidiaries | 10.00% |
supplemental guarantor information, consolidated net worth, all released guarantor subs, default cure | 15.00% |
Subsidiary Issuer [Member] | |
Entity Information [Line Items] | |
Subsidiary of Company, Ownership Percentage by Parent | 100.00% |
Guarantor Subsidiaries [Member] | |
Entity Information [Line Items] | |
Subsidiary of Company, Ownership Percentage by Parent | 100.00% |