Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Apr. 30, 2023 | May 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2023 | |
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 | 1140 Virginia Drive | |
Entity Address, City or Town | Fort Washington | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19034 | |
City Area Code | 215 | |
Local Phone Number | 938-8000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | TOL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 109,342,000 | |
Entity Central Index Key | 0000794170 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 761,945 | $ 1,346,754 |
Inventory | 9,107,878 | 8,733,326 |
Property, construction and office equipment, net | 298,168 | 287,827 |
Receivables, prepaid expenses and other assets | 697,612 | 747,228 |
Mortgage loans held for sale, at fair value | 112,603 | 185,150 |
Customer deposits held in escrow | 123,627 | 136,115 |
Investments in unconsolidated entities | 887,643 | 852,314 |
Total assets | 11,989,476 | 12,288,714 |
Liabilities: | ||
Loans payable | 1,136,235 | 1,185,275 |
Senior notes | 1,595,727 | 1,995,271 |
Mortgage company loan facility | 102,489 | 148,863 |
Customer deposits | 662,559 | 680,588 |
Accounts payable | 550,900 | 619,411 |
Accrued expenses | 1,334,197 | 1,345,987 |
Income taxes payable | 171,643 | 291,479 |
Total liabilities | 5,553,750 | 6,266,874 |
Stockholders' equity: | ||
Preferred stock, none issued | 0 | 0 |
Common stock, 127,937 shares issued April 30, 2023 and October 31, 2022, respectively | 1,279 | 1,279 |
Additional paid-in capital | 697,583 | 716,786 |
Retained earnings | 6,632,502 | 6,166,732 |
Treasury stock, at cost - 18,505 and 18,312 shares at April 30, 2023 and October 31, 2022, respectively | (945,019) | (916,327) |
Total AOCI ending balance | 33,875 | 37,618 |
Total stockholders' equity | 6,420,220 | 6,006,088 |
Noncontrolling interest | 15,506 | 15,752 |
Total equity | 6,435,726 | 6,021,840 |
Total liabilities and stockholders' equity | 11,989,476 | 12,288,714 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Investments in unconsolidated entities | $ 84,300 | $ 81,300 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares issued | 0 | 0 |
Common stock, shares issued | 127,937 | 127,937 |
Treasury stock, at cost | 18,505 | 18,312 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Revenues | $ 2,506,979 | $ 2,277,541 | $ 4,287,148 | $ 4,068,622 |
Cost of revenues | 1,853,728 | 1,752,246 | 3,197,086 | 3,141,390 |
Selling, general and administrative | 227,537 | 243,637 | 439,034 | 470,507 |
Income from operations | 425,714 | 281,658 | 651,028 | 456,725 |
Other: | ||||
(Loss) income from unconsolidated entities | (5,302) | 2,933 | (9,735) | 24,970 |
Other income - net | 10,180 | 11,224 | 43,095 | 14,936 |
Income before income taxes | 430,592 | 295,815 | 684,388 | 496,631 |
Income tax provision | 110,376 | 75,222 | 172,642 | 124,134 |
Net income | 320,216 | 220,593 | 511,746 | 372,497 |
Other comprehensive income, net of tax: | ||||
Other comprehensive (loss) income - net of tax | (279) | 13,608 | (3,743) | 18,310 |
Total comprehensive income | $ 319,937 | $ 234,201 | $ 508,003 | $ 390,807 |
Per share: | ||||
Basic earnings | $ 2.88 | $ 1.87 | $ 4.60 | $ 3.12 |
Diluted earnings | $ 2.85 | $ 1.85 | $ 4.56 | $ 3.08 |
Weighted average number of shares: | ||||
Basic | 111,214 | 117,839 | 111,306 | 119,418 |
Diluted | 112,184 | 118,925 | 112,260 | 120,891 |
Home Building [Member] | ||||
Revenues | $ 2,490,098 | $ 2,186,529 | $ 4,239,520 | $ 3,873,881 |
Cost of revenues | 1,832,878 | 1,659,265 | 3,133,801 | 2,948,792 |
Land [Member] | ||||
Revenues | 16,881 | 91,012 | 47,628 | 194,741 |
Cost of revenues | $ 20,850 | $ 92,981 | $ 63,285 | $ 192,598 |
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] |
Beginning balance at Oct. 31, 2021 | $ 5,340,455 | $ 1,279 | $ 714,453 | $ 4,969,839 | $ (391,656) | $ 1,109 | $ 45,431 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 372,497 | 372,497 | |||||
Purchase of treasury stock | (292,279) | (292,279) | |||||
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances | (2,283) | (16,822) | 14,539 | ||||
Stock-based compensation | 17,020 | 17,020 | |||||
Dividends declared | (44,397) | (44,397) | |||||
Other Comprehensive Income (Loss), Net of Tax | 18,310 | 18,310 | |||||
Net income (loss) attributable to noncontrolling interest | 86 | 86 | |||||
Capital contributions (distributions) – net | (29,743) | (29,743) | |||||
Ending balance at Apr. 30, 2022 | 5,379,666 | 1,279 | 714,651 | 5,297,939 | (669,396) | 19,419 | 15,774 |
Beginning balance at Jan. 31, 2022 | 5,301,450 | 1,279 | 711,558 | 5,100,841 | (563,618) | 5,811 | 45,579 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 220,593 | 220,593 | |||||
Purchase of treasury stock | (106,511) | (106,511) | |||||
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances | 421 | (312) | 733 | ||||
Stock-based compensation | 3,405 | 3,405 | |||||
Dividends declared | (23,495) | (23,495) | |||||
Other Comprehensive Income (Loss), Net of Tax | 13,608 | 13,608 | |||||
Net income (loss) attributable to noncontrolling interest | 65 | 65 | |||||
Capital contributions (distributions) – net | (29,870) | (29,870) | |||||
Ending balance at Apr. 30, 2022 | 5,379,666 | 1,279 | 714,651 | 5,297,939 | (669,396) | 19,419 | 15,774 |
Beginning balance at Oct. 31, 2022 | 6,021,840 | 1,279 | 716,786 | 6,166,732 | (916,327) | 37,618 | 15,752 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 511,746 | 511,746 | |||||
Purchase of treasury stock | (93,203) | (93,203) | |||||
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances | 28,283 | (36,228) | 64,511 | ||||
Stock-based compensation | 17,025 | 17,025 | |||||
Dividends declared | (45,976) | (45,976) | |||||
Other Comprehensive Income (Loss), Net of Tax | (3,743) | (3,743) | |||||
Net income (loss) attributable to noncontrolling interest | (246) | (246) | |||||
Ending balance at Apr. 30, 2023 | 6,435,726 | 1,279 | 697,583 | 6,632,502 | (945,019) | 33,875 | 15,506 |
Beginning balance at Jan. 31, 2023 | 6,216,994 | 1,279 | 696,115 | 6,335,574 | (865,775) | 34,154 | 15,647 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 320,216 | 320,216 | |||||
Purchase of treasury stock | (83,846) | (83,846) | |||||
Exercise of stock options, stock based compensation issuances, and employee stock purchase plan issuances | 3,429 | (1,173) | 4,602 | ||||
Stock-based compensation | 2,641 | 2,641 | |||||
Dividends declared | (23,288) | (23,288) | |||||
Other Comprehensive Income (Loss), Net of Tax | (279) | (279) | |||||
Net income (loss) attributable to noncontrolling interest | (141) | (141) | |||||
Ending balance at Apr. 30, 2023 | $ 6,435,726 | $ 1,279 | $ 697,583 | $ 6,632,502 | $ (945,019) | $ 33,875 | $ 15,506 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Cash flow provided by (used in) operating activities: | ||
Net income | $ 511,746 | $ 372,497 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 34,093 | 33,536 |
Stock-based compensation | 17,025 | 17,020 |
Income (Loss) from unconsolidated entities | 9,735 | (24,970) |
Distributions of earnings from unconsolidated entities | 30,447 | 29,636 |
Deferred tax (benefit) provision | 8,646 | 6,797 |
Impairment charges and write offs | 36,773 | 11,225 |
Other | 2,371 | 2,831 |
Changes in operating assets and liabilities | ||
Inventory | (299,940) | (890,202) |
Origination of mortgage loans | (705,500) | (931,958) |
Sale of mortgage loans | 783,959 | 1,027,696 |
Receivables, prepaid expenses and other assets | 4,233 | (239) |
Current income taxes, net | (127,199) | (14,321) |
Customer deposits, net | (5,541) | 110,460 |
Accounts payable and accrued expenses | (155,277) | 45,020 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 145,571 | (204,972) |
Cash flow (used in) provided by investing activities: | ||
Purchase of property, construction and office equipment - net | (39,544) | (39,140) |
Investments in and advances to unconsolidated entities | (117,221) | (121,282) |
Return of investments in unconsolidated entities | 48,564 | 88,371 |
Proceeds from the sale of assets | 9,041 | 0 |
Other | 0 | 194 |
Net Cash (Used in) Provided By Investing Activities, Continuing Operations | (99,160) | (71,857) |
Cash flow used in financing activities: | ||
Proceeds from loans payable | 1,652,710 | 1,826,068 |
Debt issuance costs for loans payable | (5,265) | 0 |
Repayments of loans payable | (1,771,636) | (1,879,318) |
Redemption of senior notes | (400,000) | (409,856) |
(Payments) proceeds from stock-based benefit plans | 28,286 | (2,279) |
Purchase of treasury stock | (93,089) | (284,276) |
Dividends paid | (46,306) | (44,255) |
Payments related to noncontrolling interests - net | 0 | (25,766) |
Net Cash Used in Financing Activities, Continuing Operations | (635,300) | (819,682) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (588,889) | (1,096,511) |
Cash, Cash Equivalents, and Restricted Cash , beginning of period | 1,398,550 | 1,684,412 |
Cash, Cash Equivalents, and Restricted Cash, end of period | $ 809,661 | $ 587,901 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Basis of Presentation Our 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. Our 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, 2022 balance sheet amounts and disclosures have been derived from our October 31, 2022 audited financial statements. Since the 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 included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022 (“2022 Form 10-K”). In the opinion of management, the unaudited condensed consolidated financial statements include all recurring adjustments necessary to present fairly our financial position as of April 30, 2023; the results of our operations and changes in equity for the three-month and six-month periods ended April 30, 2023 and 2022; and our cash flows for the six-month periods ended April 30, 2023 and 2022. The results of operations for 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 estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates and assumptions may prove to be incorrect for a variety of reasons, whether as a result of the risks and uncertainties our business is subject to or for other reasons. In times of economic disruption when uncertainty regarding future economic conditions is heightened, our estimates and assumptions are subject to greater variability. Actual results could differ from the estimates and assumptions we make 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, 2023, 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 $662.6 million and $680.6 million at April 30, 2023 and October 31, 2022, respectively. Of the outstanding customer deposits held as of October 31, 2022, we recognized $152.2 million and $275.1 million in home sales revenues during the three months and six months ended April 30, 2023. Of the outstanding customer deposits held as of October 31, 2021, we recognized $132.9 million and $243.8 million in home sales revenues during the three and six months ended April 30, 2022. Land sales and other revenues: Our revenues from land sales and other generally consist of: (1) land sales to joint ventures in which we retain an interest; (2) lot sales to third-party builders within our master-planned communities; (3) bulk sales to third parties of land we have decided no longer meets our development criteria; and (4) sales of commercial and retail properties generally located at our high-rise urban luxury condominium buildings. 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 of incentive and by 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 March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848),” as amended by ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022 (“ASC 848”), directly addressing the effects of reference rate reform on financial reporting as a result of the cessation of the publication of certain London Interbank Offered Rate (“LIBOR”) rates beginning December 31, 2021. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020 and can be adopted no later than December 31, 2024, with early adoption permitted. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance on our consolidated financial statements and may apply other elections as applicable as additional changes in the market occur. Reclassification |
Inventory
Inventory | 6 Months Ended |
Apr. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands): April 30, October 31, Land controlled for future communities $ 170,613 $ 240,751 Land owned for future communities 876,561 808,851 Operating communities 8,060,704 7,683,724 $ 9,107,878 $ 8,733,326 Operating communities include communities offering homes for sale; communities that have sold all available home sites but have not completed delivery of the homes 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. Backlog consists of homes under contract but not yet delivered to our home buyers (“backlog”). 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, which are included in home sales cost of revenues, are shown in the table below (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Land controlled for future communities $ 5,844 $ 2,192 $ 8,448 $ 2,985 Land owned for future communities 325 — 325 1,440 Operating communities 4,900 — 10,300 — $ 11,069 $ 2,192 $ 19,073 $ 4,425 We have also recognized $4.7 million and $17.7 million of impairment charges on land held for sale included in land sales and other cost of revenues during the three-month and six-month periods ended April 30, 2023, respectively. We recognized $5.2 million of similar charges during the three-month and six-month periods ended April 30, 2022. See Note 13, “Commitments and Contingencies,” for information regarding land purchase commitments. At April 30, 2023, we evaluated our land purchase contracts, including those to acquire land for apartment developments, to determine whether any of the selling entities were variable interest entities (“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, 2023, we determined that 236 land purchase contracts, with an aggregate purchase price of $3.75 billion, on which we had made aggregate deposits totaling $414.6 million, were VIEs, and that we were not the primary beneficiary of any VIE related to our land purchase contracts. At October 31, 2022, we determined that 237 land purchase contracts, with an aggregate purchase price of $3.89 billion, on which we had made aggregate deposits totaling $417.6 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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Interest capitalized, beginning of period $ 215,197 $ 247,942 $ 209,468 $ 253,938 Interest incurred 37,862 31,888 74,716 62,893 Interest expensed to home sales cost of revenues (37,558) (40,822) (62,638) (73,259) Interest expensed to land sales and other cost of revenues (1,350) (219) (4,827) (3,628) Interest capitalized on investments in unconsolidated entities (2,668) (1,516) (5,161) (2,806) Previously capitalized interest transferred to investments in unconsolidated entities — — (244) — Previously capitalized interest on investments in unconsolidated entities transferred to inventory 277 60 446 195 Interest capitalized, end of period $ 211,760 $ 237,333 $ 211,760 $ 237,333 |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 6 Months Ended |
Apr. 30, 2023 | |
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 and our ownership interest in these investments ranges from 5.0% to 50%. These entities are structured as joint ventures and either: (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 and single family homes, commercial space, and a hotel (“Rental Property Joint Ventures”); or (iv) 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, 2023, 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 16 3 43 4 66 Investment in unconsolidated entities (1) $ 341,358 $ 66,271 $ 468,336 $ 11,678 $ 887,643 Number of unconsolidated entities with funding commitments by the Company 9 — 22 1 32 Company’s remaining funding commitment to unconsolidated entities (2) $ 215,524 $ — $ 107,524 $ 11,570 $ 334,618 (1) Our total investment includes $104.8 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $201.2 million as of April 30, 2023. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50% . (2) Our remaining funding commitment includes approximately $106.2 million related to our unconsolidated joint venture-related variable interests in VIEs. The table below provides information as of October 31, 2022, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands): Land Home Building Rental Property Gibraltar Total Number of unconsolidated entities 15 3 41 4 63 Investment in unconsolidated entities (1) $ 343,314 $ 49,385 $ 441,399 $ 18,216 $ 852,314 Number of unconsolidated entities with funding commitments by the Company 9 1 18 1 29 Company’s remaining funding commitment to unconsolidated entities (2) $ 180,812 $ 20,072 $ 90,900 $ 12,533 $ 304,317 (1) Our total investment includes $100.2 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $200.0 million as of October 31, 2022. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50% . (2) Our remaining funding commitment includes approximately $105.0 million related to our unconsolidated joint venture-related variable interests in VIEs. Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at April 30, 2023, regarding the debt financing obtained by category ($ amounts in thousands): Land Home Building Rental Property Total Number of joint ventures with debt financing 11 2 40 53 Aggregate loan commitments $ 576,959 $ 219,650 $ 3,638,795 $ 4,435,404 Amounts borrowed under loan commitments $ 449,637 $ 78,114 $ 2,036,446 $ 2,564,197 The table below provides information at October 31, 2022, regarding the debt financing obtained by category ($ amounts in thousands): Land Home Building Rental Property Total Number of joint ventures with debt financing 10 2 35 47 Aggregate loan commitments $ 557,185 $ 219,650 $ 3,317,261 $ 4,094,096 Amounts borrowed under loan commitments $ 444,306 $ 17,583 $ 1,774,567 $ 2,236,456 More specific and/or recent information regarding our investments in, advances to, and future commitments to these entities is provided below. New Joint Ventures The table below provides information on joint ventures entered into during the six-months ended April 30, 2023 ($ amounts in thousands): Land Development Joint Ventures Rental Property Joint Ventures Number of unconsolidated joint ventures entered into during the period 1 2 Investment balance at April 30, 2023 $ 11,755 $ 4,795 The table below provides information on joint ventures entered into during the six-months ended April 30, 2022 ($ amounts in thousands): Land Development Joint Ventures Rental Property Joint Ventures Gibraltar Joint Ventures Number of unconsolidated joint ventures entered into during the period 2 7 1 Investment balance at April 30, 2022 $ 13,816 $ 69,513 $ 2,093 Results of Operations and Intra-entity Transactions From time to time, certain of our land development and rental property joint ventures sell assets to unrelated parties or to our joint venture partner. None of our joint ventures sold assets in the three or six-month periods ended April 30, 2023 or the three-month period ended April 30, 2022. In the six-month period ended April 30, 2022, one of our joint ventures sold its assets and we recognized $21.0 million in “Income from unconsolidated entities” on our Condensed Consolidated Statements of Operations and Comprehensive Income. There were no other-than-temporary impairment charges recognized in the three-month or six-month periods ended April 30, 2023 and 2022. In the three-month periods ended April 30, 2023 and 2022, we purchased land from unconsolidated entities, principally related to our acquisition of lots from our Land Development Joint Ventures, totaling $52.4 million and $14.1 million, respectively. In the six-month periods ended April 30, 2023 and 2022, we purchased land from unconsolidated entities, principally related to our acquisition of lots from our Land Development Joint Ventures, totaling $69.1 million and $37.9 million, respectively. Our share of income from the lots we acquired was insignificant in each period. In the three-month periods ended April 30, 2023 and 2022, we sold land to unconsolidated entities, which principally involved land sales to our Rental Property Joint Ventures, totaling $8.2 million and $73.9 million, respectively. In the six-month periods ended April 30, 2023 and 2022, we sold land to unconsolidated entities, which principally involved land sales to our Rental Property Joint Ventures, totaling $8.2 million and $151.9 million, respectively. These amounts are included in “Land sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income and are generally sold at or near our land basis. 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 have guaranteed portions of debt of 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 or its partners. In some instances, we and our joint venture partner have provided joint and several guarantees in connection with loans to unconsolidated entities. In these situations, we generally seek to implement 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, we are not always successful. In addition, if the joint venture partner does not have adequate financial resources to meet its obligations under such a reimbursement agreement, we may be liable for more than our proportionate share. We believe that, as of April 30, 2023, 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. Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands): April 30, 2023 October 31, 2022 Loan commitments in the aggregate $ 3,181,400 $ 2,858,800 Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1) $ 654,400 $ 597,800 Debt obligations borrowed in the aggregate $ 1,436,200 $ 1,110,900 Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed $ 487,600 $ 390,500 Estimated fair value of guarantees provided by us related to debt and other obligations $ 19,000 $ 16,900 Terms of guarantees 1 month - 3.9 years 1 month - 3.7 years (1) At April 30, 2023 and October 31, 2022, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $95.0 million related to our unconsolidated Joint Venture VIEs. The maximum exposure estimates presented above do not take into account any recoveries from the underlying collateral or any reimbursement from our partners. In addition, they do not include any potential exposures related to project completion guarantees or the indemnities noted above, which are not estimable. We have not made payments under any of the outstanding guarantees, nor have we been called upon to do so. Variable Interest Entities We have both unconsolidated and consolidated joint venture-related variable interests in VIEs. Information regarding our involvement in unconsolidated joint-venture related variable interests in VIEs has been disclosed throughout information presented above. The table below provides information as of April 30, 2023 and October 31, 2022, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands): Balance Sheet Classification April 30, October 31, Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates 6 5 Carrying value of consolidated VIEs assets Inventory and investments in unconsolidated entities $ 84,300 $ 81,300 Our partners’ interests in consolidated VIEs Noncontrolling interest $ 9,600 $ 9,700 Our ownership interest in the above consolidated Joint Venture VIEs ranges from 80% to 98%. As shown above, we are the primary beneficiary of certain 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. For other VIEs, we are not the primary beneficiary 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 partners. Management and other fees earned by us are nominal and believed to be at market rates, and there is no significant economic disproportionality between us and other partners. Joint Venture Condensed Combined Financial Information The Condensed Combined Balance Sheets, as of the dates indicated, and the Condensed Combined Statements of Operations, for the periods indicated, for the unconsolidated entities in which we have an investment are included below (in thousands): Condensed Combined Balance Sheets: April 30, October 31, Cash and cash equivalents $ 135,511 $ 254,884 Inventory 1,342,879 1,256,215 Loans receivable – net 44,807 48,217 Rental properties 1,887,721 1,702,690 Rental properties under development 1,596,007 1,413,607 Other assets 364,735 305,250 Total assets $ 5,371,660 $ 4,980,863 Debt – net of deferred financing costs $ 2,555,116 $ 2,248,754 Other liabilities 392,710 399,818 Partners’ equity 2,423,834 2,332,291 Total liabilities and equity $ 5,371,660 $ 4,980,863 Company’s net investment in unconsolidated entities (1) $ 887,643 $ 852,314 (1) Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $4.4 million and $18.5 million as of April 30, 2023 and October 31, 2022, respectively, and these differences are primarily a result of unrealized gains on our retained joint venture interests; distributions from entities in excess of the carrying amount of our net investment; interest capitalized on our investments; other than temporary impairments we have recognized; gains recognized from the sale of our ownership interests; and the estimated fair value of the guarantees provided to the joint ventures. Condensed Combined Statements of Operations: Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Revenues $ 125,397 $ 130,771 $ 237,116 $ 286,523 Cost of revenues 78,613 86,219 137,966 194,701 Other expenses 56,655 39,172 119,729 82,776 Total expenses 135,268 125,391 257,695 277,477 Loss on disposition of loans and real estate owned — — — (113) (Loss) income from operations (9,871) 5,380 (20,579) 8,933 Other (loss) income (2) (2,276) 7,064 (3,632) 40,410 (Loss) income before income taxes (12,147) 12,444 (24,211) 49,343 Income tax (benefit) expense (148) 74 (166) 156 Net (loss) income (11,999) 12,370 (24,045) 49,187 Company’s (loss) income from unconsolidated entities (3) $ (5,302) $ 2,933 $ (9,735) $ 24,970 (2) The six months ended April 30, 2022 includes $29.9 million, related to the sale of assets by our Rental Property Joint Ventures. (3) Differences between our (loss) income from unconsolidated entities and the underlying net (loss) income of the entities are primarily a result of distributions from entities in excess of the carrying amount of our investment; promote earned on the gains recognized by joint ventures and those promoted cash flows being distributed; other than temporary impairments we have recognized; 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, 2023 | |
Receivables, prepaid expenses and other assets [Abstract] | |
Receivables, Prepaid Expenses, and Other Assets | Receivables, Prepaid Expenses, and Other Assets Receivables, prepaid expenses, and other assets at April 30, 2023 and October 31, 2022, consisted of the following (amounts in thousands): April 30, 2023 October 31, 2022 Expected recoveries from insurance carriers and others $ 35,873 $ 41,527 Improvement cost receivable 57,190 60,812 Escrow cash held by our wholly owned captive title company 47,716 51,796 Properties held for rental apartment and commercial development 261,980 224,593 Prepaid expenses 28,312 44,307 Right-of-use asset 118,803 116,660 Derivative assets 37,493 71,929 Other 110,245 135,604 $ 697,612 $ 747,228 |
Loans Payable, Senior Notes and
Loans Payable, Senior Notes and Mortgage Company Loan Facility | 6 Months Ended |
Apr. 30, 2023 | |
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, 2023 and October 31, 2022, loans payable consisted of the following (amounts in thousands): April 30, October 31, Senior unsecured term loan $ 650,000 $ 650,000 Loans payable – other 489,869 537,043 Deferred issuance costs (3,634) (1,768) $ 1,136,235 $ 1,185,275 Senior Unsecured Term Loan We are party to a $650.0 million senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. On February 14, 2023, we entered into an amendment to the Term Loan Facility to extend the maturity date of $487.5 million of outstanding term loans to February 14, 2028, with $60.9 million due on November 1, 2026 and the remaining $101.6 million due on November 1, 2025. In addition, this amendment replaced the LIBOR-based interest rate provisions applicable to borrowings under the Term Loan Facility with Secured Overnight Financing Rate (“SOFR”)-based interest rate provisions. At April 30, 2023, other than $101.6 million of term loans scheduled to mature on November 1, 2025 and the $60.9 million scheduled to mature on November 1, 2026, there were no payments required before the final maturity date on the Term Loan Facility. At April 30, 2023, the interest rate on the Term Loan Facility was 5.95% 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 New Revolving Credit Facility described below. In November 2020, we entered into five interest rate swap transactions to hedge $400.0 million of the Term Loan Facility. The interest rate swaps effectively fix the interest cost on the $400.0 million at 0.369% plus the spread set forth in the pricing schedule in the Term Loan Facility through October 2025. The spread at April 30, 2023 was 1.15%. These interest rate swaps were designated as cash flow hedges. Revolving Credit Facility On February 14, 2023, we entered into a new five-year $1.905 billion senior unsecured revolving credit facility (the “New Revolving Credit Facility”) with a syndicate of banks that is scheduled to mature on February 14, 2028. The New Revolving Credit Facility replaced our existing $1.905 billion revolving credit facility, which was terminated in connection with the execution of the new agreement. The New Revolving Credit Facility provides us with a committed borrowing capacity of $1.905 billion, which we have the ability to increase up to $3.00 billion with the consent of lenders. The terms of the New Revolving Credit Facility are substantially the same as the prior revolving credit facility, except that the LIBOR-based interest rate provisions have been replaced with SOFR-based provisions. Toll Brothers, Inc. and substantially all of its home building subsidiaries are guarantors of the borrower’s obligations under the New Revolving Credit Facility. Under the terms of the New Revolving Credit Facility, at April 30, 2023, our maximum leverage ratio, as defined, was not permitted to exceed 1.75 to 1.00, and we were required to maintain a minimum tangible net worth, as defined, of no less than approximately $4.04 billion. Under the terms of the New Revolving Credit Facility, at April 30, 2023, our leverage ratio was approximately 0.32 to 1.00, and our tangible net worth was approximately $6.37 billion. Based upon the terms of the New Revolving Credit Facility, our ability to repurchase our common stock was limited to approximately $3.63 billion as of April 30, 2023. In addition, under the provisions of the New Revolving Credit Facility, our ability to pay cash dividends was limited to approximately $2.33 billion as of April 30, 2023. At April 30, 2023, we had no outstanding borrowings under the New Revolving Credit Facility and had approximately $116.0 million of outstanding letters of credit that were issued under the New Revolving Credit Facility. At April 30, 2023, the interest rate on outstanding borrowings under the New Revolving Credit Facility would have been 6.10% per annum. Loans Payable – Other “Loans payable – other” primarily represents purchase money mortgages on properties we acquired that the seller had financed, project-level financing, and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. At April 30, 2023, the weighted-average interest rate on “Loans payable – other” was 4.22% per annum. Senior Notes At April 30, 2023, we had four issues of senior notes outstanding with an aggregate principal amount of $1.60 billion. In our second quarter of fiscal 2023, we redeemed all $400.0 million principal amount of 4.375% Senior Notes due April 15, 2023, at par, plus accrued interest. In our first quarter of fiscal 2022, we redeemed the remaining $409.9 million principal amount of 5.875% Senior Notes due February 15, 2022, at par, plus accrued interest. Mortgage Company Loan Facility Toll Brothers Mortgage Company (“TBMC”), our wholly owned mortgage subsidiary, has a mortgage warehousing agreement (the “Warehousing Agreement”) with a bank, which has been amended from time to time, to finance the origination of mortgage loans by TBMC. The Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” The Warehousing Agreement provides for loan purchases up to $75.0 million, subject to certain sublimits. In addition, the Warehousing Agreement provides for an accordion feature under which TBMC 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. The Warehousing Agreement was set to expire, as amended, on March 31, 2023, and borrowings thereunder bore interest at the Bloomberg Short-Term Bank Yield Index Rate (“BSBY”) plus 1.75% per annum (with a BSBY floor of 0.50%). In March 2023, the Warehousing Agreement was amended to extend the expiration date to March 30, 2024 and borrowings thereunder bear interest at BSBY plus 1.75% per annum (with a BSBY floor of 0.50%). At April 30, 2023, the interest rate on the Warehousing Agreement was 6.80% per annum. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Apr. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands): April 30, October 31, Land, land development, and construction $ 418,048 $ 334,975 Compensation and employee benefits 170,448 223,609 Escrow liability associated with our wholly owned captive title company 40,459 44,115 Self-insurance 245,687 251,576 Warranty 149,395 164,409 Lease liabilities 142,901 139,664 Deferred income 47,846 50,973 Interest 32,212 31,988 Commitments to unconsolidated entities 31,744 26,905 Other 55,457 77,773 $ 1,334,197 $ 1,345,987 The table below provides, for the periods indicated, a reconciliation of the changes in our warranty accrual (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Balance, beginning of period $ 156,895 $ 143,043 $ 164,409 $ 145,062 Additions – homes closed during the period 10,084 13,745 17,270 23,200 Change in accruals for homes closed in prior years – net (73) 715 2,023 3,672 Charges incurred (17,511) (13,512) (34,307) (27,943) Balance, end of period $ 149,395 $ 143,991 $ 149,395 $ 143,991 Since fiscal 2014, we have received water intrusion claims from owners of homes built since 2002 in communities located in Pennsylvania and Delaware. Our recorded estimated repair costs to resolve these claims were approximately $44.2 million at April 30, 2023 and $46.9 million at October 31, 2022, and are included in the Warranty accrued expense above. 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 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. Our review process includes a number of estimates that are based on assumptions with uncertain outcomes. 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax provisions of $110.4 million and $75.2 million for the three months ended April 30, 2023 and 2022, respectively. The effective tax rate was 25.6% for the three months ended April 30, 2023, compared to 25.4% for the three months ended April 30, 2022. We recorded income tax provisions of $172.6 million and $124.1 million for the six months ended April 30, 2023 and 2022, respectively. The effective tax rate was 25.2% for the six months ended April 30, 2023, compared to 25.0% for the six months ended April 30, 2022. 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, federal energy efficient home credits 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 2023 will be approximately 5.7%. Our state income tax rate for the full fiscal year 2022 was 5.6%. At April 30, 2023, we had $5.8 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, 2023 | |
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 non-employee 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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Total stock-based compensation expense recognized $ 2,641 $ 3,405 $ 17,025 $ 17,020 Income tax benefit recognized $ 666 $ 855 $ 4,304 $ 4,268 At April 30, 2023 and October 31, 2022, the aggregate unamortized value of unvested stock-based compensation awards was approximately $21.8 million and $15.5 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Apr. 30, 2023 | |
Stock Repurchase Program [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Stock Repurchase Program From time to time since fiscal 2017, our Board of Directors has renewed its authorization to repurchase up to 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. Most recently, on May 17, 2022, our Board of Directors renewed its authorization to repurchase 20 million shares of our common stock. Shares may be repurchased for general corporate purposes, including to obtain shares for the Company’s equity awards and other employee benefit plans. The 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: Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Number of shares purchased (in thousands) 1,443 2,205 1,630 5,219 Average price per share $ 58.14 $ 48.30 $ 57.20 $ 56.01 Remaining authorization at April 30 (in thousands) 12,947 7,344 12,947 7,344 Cash Dividends On March 9, 2023, our Board of Directors approved an increase in our quarterly cash dividend from $0.20 per share to $0.21 per share, which was previously increased from $0.17 to $0.20 in March 2022. During the three month periods ended April 30, 2023 and 2022, we declared and paid cash dividends of $0.21 and $0.20 per share, respectively, to our shareholders. During the six months ended April 30, 2023 and 2022, we declared and paid cash dividends of $0.41 and $0.37 per share, respectively, to our shareholders. Accumulated Other Comprehensive Income (Loss) The changes in each component of accumulated other comprehensive income (loss) (“AOCI”), for the periods indicated, were as follows (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Employee Retirement Plans Beginning balance $ 2,492 $ (5,685) $ 2,475 $ (6,024) Losses reclassified from AOCI to net income (1) 24 451 47 903 Less: Tax benefit (2) (6) (113) (12) (226) Net losses reclassified from AOCI to net income 18 338 35 677 Other comprehensive loss – net of tax 18 338 35 677 Ending balance $ 2,510 $ (5,347) $ 2,510 $ (5,347) Derivative Instruments Beginning balance $ 31,662 $ 11,496 $ 35,143 $ 7,133 Gains (losses) on derivative instruments 588 17,616 (3,709) 23,363 Less: Tax (expense) benefit (138) (4,425) 948 (5,866) Net gains (losses) on derivative instruments 450 13,191 (2,761) 17,497 (Gains) losses reclassified from AOCI to net income (3) (1,000) 106 (1,362) 182 Less: Tax expense (benefit) (2) 253 (27) 345 (46) Net (gains) losses reclassified from AOCI to net income (747) 79 (1,017) 136 Other comprehensive (income) loss – net of tax (297) 13,270 (3,778) 17,633 Ending balance $ 31,365 $ 24,766 $ 31,365 $ 24,766 Total AOCI ending balance $ 33,875 $ 19,419 $ 33,875 $ 19,419 (1) Reclassified to “Other income – net” (2) Reclassified to “Income tax provision” (3) Reclassified to “Cost of revenues – home sales” |
Earnings Per Share Information
Earnings Per Share Information | 6 Months Ended |
Apr. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings 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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Numerator: Net income as reported $ 320,216 $ 220,593 $ 511,746 $ 372,497 Denominator: Basic weighted-average shares 111,214 117,839 111,306 119,418 Common stock equivalents (1) 970 1,086 954 1,473 Diluted weighted-average shares 112,184 118,925 112,260 120,891 Other information: Weighted-average number of antidilutive options and restricted stock units (2) 168 214 334 209 Shares issued under stock incentive and employee stock purchase plans 103 17 1,437 424 (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, 2023 | |
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, 2022 Residential Mortgage Loans Held for Sale Level 2 $ 112,603 $ 185,150 Forward Loan Commitments — Residential Mortgage Loans Held for Sale Level 2 $ 1,396 $ 9,184 Interest Rate Lock Commitments (“IRLCs”) Level 2 $ (2,884) $ (17,734) Forward Loan Commitments — IRLCs Level 2 $ 2,884 $ 17,734 Interest Rate Swap Contracts Level 2 $ 33,214 $ 45,010 At April 30, 2023 and October 31, 2022, the carrying value of cash and cash equivalents, escrow cash held by our wholly owned captive title company, and customer deposits held in escrow approximated fair value. The fair values of the interest rate swap contracts are included in “Receivables, prepaid expenses and other assets” in our Condensed Consolidated Balance Sheets and are determined using widely accepted valuation techniques including discounted cash flow analysis based on the expected cash flows of each swap contract. Although the Company has determined that the significant inputs, such as interest yield curve and discount rate, used to value its interest rate swap contracts fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our counterparties and our own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of April 30, 2023, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our interest rate swap contract positions and have determined that the credit valuation adjustments were not significant to the overall valuation of our interest rate swap contracts. As a result, we have determined that our interest rate swap contracts valuations in their entirety are classified in Level 2 of the fair value hierarchy. 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 Fair value At April 30, 2023 $ 115,286 $ 112,603 $ (2,683) At October 31, 2022 $ 193,746 $ 185,150 $ (8,596) Inventory We recognize inventory impairment charges and land impairment charges based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. The fair value of the aforementioned inventory was determined using Level 3 criteria. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. In determining the fair value related to land impairments, we consider recent offers received, prices for land in recent comparable sales transactions, and other factors. We record land impairments related to land parcels we plan to sell to third parties within land sales and other cost of revenues. See Note 1, “Significant Accounting Policies – Inventory,” in our 2022 Form 10-K for additional information regarding our methodology for determining fair value. Impairments on operating communities were insignificant during the three-month and six-month periods ended April 30, 2023 and 2022 and, accordingly, we did not disclose the ranges of certain quantitative unobservable inputs utilized in determining the fair value of such impaired operating communities. Debt The table below provides, as of the dates indicated, the book value, excluding any bond discounts, premiums, and deferred issuance costs, and estimated fair value of our debt (amounts in thousands): April 30, 2023 October 31, 2022 Fair value Book value Estimated Book value Estimated Loans payable (1) Level 2 $ 1,139,869 $ 1,123,766 $ 1,187,043 $ 1,180,893 Senior notes (2) Level 1 1,600,000 1,536,985 2,000,000 1,822,255 Mortgage company loan facility (3) Level 2 102,489 102,489 148,863 148,863 $ 2,842,358 $ 2,763,240 $ 3,335,906 $ 3,152,011 (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, 2023 | |
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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Income (loss) from ancillary businesses $ 2,858 $ 12,334 $ (91) $ 14,294 Management fee income earned by home building operations 659 1,037 2,062 2,375 Gain on litigation settlements – net — — 27,683 — Other 6,663 (2,147) 13,441 (1,733) Total other income – net $ 10,180 $ 11,224 $ 43,095 $ 14,936 Income from ancillary businesses is generated by our mortgage, title, landscaping, smart home technology, Gibraltar, apartment living 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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Revenues $ 33,275 $ 31,890 $ 61,181 $ 59,586 Expenses $ 30,417 $ 19,556 $ 61,272 $ 45,292 In the three-month and six-month periods ended April 30, 2022, our smart home technology business recognized a $9.0 million gain from a bulk sale of security monitoring accounts, which is included in income from ancillary businesses above. In addition, in the three months ended April 30, 2023 and 2022, our apartment living operations earned fees from unconsolidated entities of $6.4 million and $4.8 million, respectively. In the six-month periods ended April 30, 2023 and 2022, our apartment living operations earned fees from unconsolidated entities of $12.6 million and $9.6 million, respectively. Fees earned by our apartment living operations are included in income from ancillary businesses. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2023 | |
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. Land Purchase Contracts 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 contracts, as of the dates indicated, is provided in the table below (amounts in thousands): April 30, 2023 October 31, 2022 Aggregate purchase price: Unrelated parties $ 4,031,720 $ 4,279,660 Unconsolidated entities that the Company has investments in 33,503 42,057 Total $ 4,065,223 $ 4,321,717 Deposits against aggregate purchase price $ 450,800 $ 463,452 Additional cash required to acquire land 3,614,423 3,858,265 Total $ 4,065,223 $ 4,321,717 Amount of additional cash required to acquire land included in accrued expenses $ 119,141 $ 34,994 In addition, we expect to purchase approximately 8,400 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, 2023, we also had purchase contracts to acquire land for apartment developments of approximately $330.8 million, of which we had outstanding deposits in the amount of $13.2 million. We intend to acquire and 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 price 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, 2023, 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 3, “Investments in Unconsolidated Entities,” for more information regarding our commitments to these entities. Surety Bonds and Letters of Credit At April 30, 2023, we had outstanding surety bonds amounting to $836.6 million, primarily related to our obligations to governmental entities to construct improvements in our communities. We estimate that approximately $344.2 million of work remains on these improvements. We have an additional $303.9 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, 2023, we had outstanding letters of credit of $116.0 million under our New 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. At April 30, 2023, we had provided financial guarantees of $25.7 million related to fronted letters of credit to secure obligations related to certain of our insurance policy deductibles and other claims. Backlog At April 30, 2023, we had agreements of sale outstanding to deliver 7,574 homes with an aggregate sales value of $8.38 billion. Mortgage Commitments Our mortgage subsidiary provides mortgage financing for a portion of our home closings. For those home buyers to whom our mortgage subsidiary provides mortgages, we determine whether the home buyer qualifies for the mortgage based upon information provided by the home buyer and other sources. For those home buyers who qualify, our mortgage subsidiary provides the home buyer with a mortgage commitment that specifies the terms and conditions of a proposed mortgage loan based upon then-current market conditions. Prior to the actual closing of the home and funding of the mortgage, the home buyer will lock in an interest rate based upon the terms of the commitment. At the time of rate lock, our mortgage subsidiary agrees to sell the proposed mortgage loan to one of several outside recognized mortgage financing institutions (“investors”) that is willing to honor the terms and conditions, including interest rate, committed to the home buyer. We believe that these investors have adequate financial resources to honor their commitments to our mortgage subsidiary. Mortgage loans are sold to investors with limited recourse provisions derived from industry-standard representations and warranties in the relevant agreements. These representations and warranties primarily involve the absence of misrepresentations by the borrower or other parties, the appropriate underwriting of the loan and in some cases, a required minimum number of payments to be made by the borrower. The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market. Information regarding our mortgage commitments, as of the dates indicated, is provided in the table below (amounts in thousands): April 30, October 31, 2022 Aggregate mortgage loan commitments: IRLCs $ 452,156 $ 669,631 Non-IRLCs 2,030,535 2,429,063 Total $ 2,482,691 $ 3,098,694 Investor commitments to purchase: IRLCs $ 452,156 $ 669,631 Mortgage loans held for sale 106,006 186,666 Total $ 558,162 $ 856,297 |
Information on Segments
Information on Segments | 6 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Information on Segments | Information on Segments We operate in the following five geographic segments, with current operations generally located in the states listed below: Eastern Region: • The North region: Connecticut, Delaware, Illinois, Massachusetts, Michigan, New Jersey, New York and Pennsylvania; • 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; • The Pacific region: California, Oregon and Washington. Our geographic reporting segments are consistent with how our chief operating decision makers are assessing operating performance and allocating capital. At October 31, 2022, we concluded that our City Living operations were no longer a reportable operating segment, primarily due to their insignificance as a result of the change in structure and shift in strategy. Amounts reported in prior periods have been restated to conform to the fiscal 2023 presentation. The realignment did not have any impact on our consolidated financial position, results of operations, earnings per share or cash flows for the periods presented. Revenues and income (loss) before income taxes for each of our segments, for the periods indicated, were as follows (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 (restated) (restated) Revenues: North $ 381,316 $ 398,907 $ 704,110 $ 754,041 Mid-Atlantic 309,587 268,250 498,704 511,127 South 519,351 326,351 912,232 569,870 Mountain 674,234 653,558 1,154,446 1,115,858 Pacific 605,870 541,495 970,638 926,444 Total home building 2,490,358 2,188,561 4,240,130 3,877,340 Corporate and other (260) (2,032) (610) (3,459) 2,490,098 2,186,529 4,239,520 3,873,881 Land sales and other revenues 16,881 91,012 47,628 194,741 Total consolidated $ 2,506,979 $ 2,277,541 $ 4,287,148 $ 4,068,622 Income (loss) before income taxes: North $ 50,922 $ 50,717 $ 87,556 $ 96,384 Mid-Atlantic 64,428 43,837 87,351 77,285 South 88,721 42,974 141,167 65,551 Mountain 133,942 104,962 221,246 175,973 Pacific 157,524 116,743 236,501 179,798 Total home building 495,537 359,233 773,821 594,991 Corporate and other (64,945) (63,418) (89,433) (98,360) Total consolidated $ 430,592 $ 295,815 $ 684,388 $ 496,631 “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 our apartment rental development business and our high-rise urban luxury condominium business, 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, North $ 1,394,986 $ 1,464,995 Mid-Atlantic 1,143,351 1,049,043 South 2,371,522 2,137,568 Mountain 2,781,482 2,785,603 Pacific 2,240,371 2,174,065 Total home building 9,931,712 9,611,274 Corporate and other 2,057,764 2,677,440 Total consolidated $ 11,989,476 $ 12,288,714 “Corporate and other” is comprised principally of cash and cash equivalents, restricted cash, investments in our Rental Property Joint Ventures, expected recoveries from insurance carriers and suppliers, our Gibraltar investments and operations, manufacturing facilities, and our mortgage and title subsidiaries. The amounts we have provided for inventory impairment charges and the expensing of costs that we believe not to be recoverable, for the periods indicated, which are included in home sales cost of revenues, were as follows (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 (restated) (restated) North $ 290 $ 443 $ 431 $ 769 Mid-Atlantic 5,080 706 6,320 1,145 South 30 466 481 609 Mountain 5,487 342 5,618 444 Pacific 182 235 6,223 1,458 Total consolidated $ 11,069 $ 2,192 $ 19,073 $ 4,425 |
Supplemental Disclosure to Cond
Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows | 6 Months Ended |
Apr. 30, 2023 | |
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, 2023 2022 Cash flow information: Income tax paid – net $ 291,196 $ 131,658 Noncash activity: Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses - net $ 110,759 $ 180,576 Accrued treasury share purchases $ — $ 8,003 Transfer of other assets to investment in unconsolidated entities - net $ 2,765 $ 55,202 Transfer of other assets to property, construction and office equipment - net $ 12,268 $ — Unrealized (loss) gain on derivatives $ (11,796) $ 23,731 At April 30, 2023 2022 Cash, cash equivalents, and restricted cash Cash and cash equivalents $ 761,945 $ 535,038 Restricted cash included in receivables, prepaid expenses, and other assets 47,716 52,863 Total cash, cash equivalents, and restricted cash shown on the Condensed Consolidated Statements of Cash Flows $ 809,661 $ 587,901 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our 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. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in accordance with GAAP requires estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates and assumptions may prove to be incorrect for a variety of reasons, whether as a result of the risks and uncertainties our business is subject to or for other reasons. In times of economic disruption when uncertainty regarding future economic conditions is heightened, our estimates and assumptions are subject to greater variability. Actual results could differ from the estimates and assumptions we make and such differences may be material. |
Revenue Recognition | 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, 2023, 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 $662.6 million and $680.6 million at April 30, 2023 and October 31, 2022, respectively. Of the outstanding customer deposits held as of October 31, 2022, we recognized $152.2 million and $275.1 million in home sales revenues during the three months and six months ended April 30, 2023. Of the outstanding customer deposits held as of October 31, 2021, we recognized $132.9 million and $243.8 million in home sales revenues during the three and six months ended April 30, 2022. Land sales and other revenues: Our revenues from land sales and other generally consist of: (1) land sales to joint ventures in which we retain an interest; (2) lot sales to third-party builders within our master-planned communities; (3) bulk sales to third parties of land we have decided no longer meets our development criteria; and (4) sales of commercial and retail properties generally located at our high-rise urban luxury condominium buildings. 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 of incentive and by 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 | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848),” as amended by ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022 (“ASC 848”), directly addressing the effects of reference rate reform on financial reporting as a result of the cessation of the publication of certain London Interbank Offered Rate (“LIBOR”) rates beginning December 31, 2021. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform by virtue of referencing LIBOR or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020 and can be adopted no later than December 31, 2024, with early adoption permitted. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance on our consolidated financial statements and may apply other elections as applicable as additional changes in the market occur. |
Reclassification | ReclassificationCertain prior period amounts have been reclassified to conform to the fiscal 2023 presentation. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands): April 30, October 31, Land controlled for future communities $ 170,613 $ 240,751 Land owned for future communities 876,561 808,851 Operating communities 8,060,704 7,683,724 $ 9,107,878 $ 8,733,326 |
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, which are included in home sales cost of revenues, are shown in the table below (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Land controlled for future communities $ 5,844 $ 2,192 $ 8,448 $ 2,985 Land owned for future communities 325 — 325 1,440 Operating communities 4,900 — 10,300 — $ 11,069 $ 2,192 $ 19,073 $ 4,425 |
Interest incurred, capitalized and expensed | Interest incurred, capitalized, and expensed, for the periods indicated, was as follows (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Interest capitalized, beginning of period $ 215,197 $ 247,942 $ 209,468 $ 253,938 Interest incurred 37,862 31,888 74,716 62,893 Interest expensed to home sales cost of revenues (37,558) (40,822) (62,638) (73,259) Interest expensed to land sales and other cost of revenues (1,350) (219) (4,827) (3,628) Interest capitalized on investments in unconsolidated entities (2,668) (1,516) (5,161) (2,806) Previously capitalized interest transferred to investments in unconsolidated entities — — (244) — Previously capitalized interest on investments in unconsolidated entities transferred to inventory 277 60 446 195 Interest capitalized, end of period $ 211,760 $ 237,333 $ 211,760 $ 237,333 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Summary of Joint Venture Information | he table below provides information as of April 30, 2023, 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 16 3 43 4 66 Investment in unconsolidated entities (1) $ 341,358 $ 66,271 $ 468,336 $ 11,678 $ 887,643 Number of unconsolidated entities with funding commitments by the Company 9 — 22 1 32 Company’s remaining funding commitment to unconsolidated entities (2) $ 215,524 $ — $ 107,524 $ 11,570 $ 334,618 (1) Our total investment includes $104.8 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $201.2 million as of April 30, 2023. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50% . (2) Our remaining funding commitment includes approximately $106.2 million related to our unconsolidated joint venture-related variable interests in VIEs. The table below provides information as of October 31, 2022, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands): Land Home Building Rental Property Gibraltar Total Number of unconsolidated entities 15 3 41 4 63 Investment in unconsolidated entities (1) $ 343,314 $ 49,385 $ 441,399 $ 18,216 $ 852,314 Number of unconsolidated entities with funding commitments by the Company 9 1 18 1 29 Company’s remaining funding commitment to unconsolidated entities (2) $ 180,812 $ 20,072 $ 90,900 $ 12,533 $ 304,317 (1) Our total investment includes $100.2 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $200.0 million as of October 31, 2022. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50% . (2) Our remaining funding commitment includes approximately $105.0 million related to our unconsolidated joint venture-related variable interests in VIEs. |
Summary of Joint Ventures Borrowing information | Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at April 30, 2023, regarding the debt financing obtained by category ($ amounts in thousands): Land Home Building Rental Property Total Number of joint ventures with debt financing 11 2 40 53 Aggregate loan commitments $ 576,959 $ 219,650 $ 3,638,795 $ 4,435,404 Amounts borrowed under loan commitments $ 449,637 $ 78,114 $ 2,036,446 $ 2,564,197 The table below provides information at October 31, 2022, regarding the debt financing obtained by category ($ amounts in thousands): Land Home Building Rental Property Total Number of joint ventures with debt financing 10 2 35 47 Aggregate loan commitments $ 557,185 $ 219,650 $ 3,317,261 $ 4,094,096 Amounts borrowed under loan commitments $ 444,306 $ 17,583 $ 1,774,567 $ 2,236,456 |
New joint venture formations | The table below provides information on joint ventures entered into during the six-months ended April 30, 2023 ($ amounts in thousands): Land Development Joint Ventures Rental Property Joint Ventures Number of unconsolidated joint ventures entered into during the period 1 2 Investment balance at April 30, 2023 $ 11,755 $ 4,795 The table below provides information on joint ventures entered into during the six-months ended April 30, 2022 ($ amounts in thousands): Land Development Joint Ventures Rental Property Joint Ventures Gibraltar Joint Ventures Number of unconsolidated joint ventures entered into during the period 2 7 1 Investment balance at April 30, 2022 $ 13,816 $ 69,513 $ 2,093 |
Summary of Unconsolidated Entities Debt Obligations, Loan Commitments and Guarantees | Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands): April 30, 2023 October 31, 2022 Loan commitments in the aggregate $ 3,181,400 $ 2,858,800 Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1) $ 654,400 $ 597,800 Debt obligations borrowed in the aggregate $ 1,436,200 $ 1,110,900 Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed $ 487,600 $ 390,500 Estimated fair value of guarantees provided by us related to debt and other obligations $ 19,000 $ 16,900 Terms of guarantees 1 month - 3.9 years 1 month - 3.7 years (1) At April 30, 2023 and October 31, 2022, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $95.0 million related to our unconsolidated Joint Venture VIEs. |
Consolidated Joint Venture Related Variable Interest Entities | The table below provides information as of April 30, 2023 and October 31, 2022, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands): Balance Sheet Classification April 30, October 31, Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates 6 5 Carrying value of consolidated VIEs assets Inventory and investments in unconsolidated entities $ 84,300 $ 81,300 Our partners’ interests in consolidated VIEs Noncontrolling interest $ 9,600 $ 9,700 Our ownership interest in the above consolidated Joint Venture VIEs ranges from 80% to 98%. |
Condensed balance sheet | Condensed Combined Balance Sheets: April 30, October 31, Cash and cash equivalents $ 135,511 $ 254,884 Inventory 1,342,879 1,256,215 Loans receivable – net 44,807 48,217 Rental properties 1,887,721 1,702,690 Rental properties under development 1,596,007 1,413,607 Other assets 364,735 305,250 Total assets $ 5,371,660 $ 4,980,863 Debt – net of deferred financing costs $ 2,555,116 $ 2,248,754 Other liabilities 392,710 399,818 Partners’ equity 2,423,834 2,332,291 Total liabilities and equity $ 5,371,660 $ 4,980,863 Company’s net investment in unconsolidated entities (1) $ 887,643 $ 852,314 (1) Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $4.4 million and $18.5 million as of April 30, 2023 and October 31, 2022, respectively, and these differences are primarily a result of unrealized gains on our retained joint venture interests; distributions from entities in excess of the carrying amount of our net investment; interest capitalized on our investments; other than temporary impairments we have recognized; gains recognized from the sale of our ownership interests; and the estimated fair value of the guarantees provided to the joint ventures. |
Condensed statements of operations and comprehensive income | Condensed Combined Statements of Operations: Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Revenues $ 125,397 $ 130,771 $ 237,116 $ 286,523 Cost of revenues 78,613 86,219 137,966 194,701 Other expenses 56,655 39,172 119,729 82,776 Total expenses 135,268 125,391 257,695 277,477 Loss on disposition of loans and real estate owned — — — (113) (Loss) income from operations (9,871) 5,380 (20,579) 8,933 Other (loss) income (2) (2,276) 7,064 (3,632) 40,410 (Loss) income before income taxes (12,147) 12,444 (24,211) 49,343 Income tax (benefit) expense (148) 74 (166) 156 Net (loss) income (11,999) 12,370 (24,045) 49,187 Company’s (loss) income from unconsolidated entities (3) $ (5,302) $ 2,933 $ (9,735) $ 24,970 (2) The six months ended April 30, 2022 includes $29.9 million, related to the sale of assets by our Rental Property Joint Ventures. (3) Differences between our (loss) income from unconsolidated entities and the underlying net (loss) income of the entities are primarily a result of distributions from entities in excess of the carrying amount of our investment; promote earned on the gains recognized by joint ventures and those promoted cash flows being distributed; other than temporary impairments we have recognized; 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, 2023 | |
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, 2023 and October 31, 2022, consisted of the following (amounts in thousands): April 30, 2023 October 31, 2022 Expected recoveries from insurance carriers and others $ 35,873 $ 41,527 Improvement cost receivable 57,190 60,812 Escrow cash held by our wholly owned captive title company 47,716 51,796 Properties held for rental apartment and commercial development 261,980 224,593 Prepaid expenses 28,312 44,307 Right-of-use asset 118,803 116,660 Derivative assets 37,493 71,929 Other 110,245 135,604 $ 697,612 $ 747,228 |
Loans Payable, Senior Notes a_2
Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Debt Disclosure [Abstract] | |
Loans Payable [Text Block] | At April 30, 2023 and October 31, 2022, loans payable consisted of the following (amounts in thousands): April 30, October 31, Senior unsecured term loan $ 650,000 $ 650,000 Loans payable – other 489,869 537,043 Deferred issuance costs (3,634) (1,768) $ 1,136,235 $ 1,185,275 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses at April 30, 2023 and October 31, 2022 consisted of the following (amounts in thousands): April 30, October 31, Land, land development, and construction $ 418,048 $ 334,975 Compensation and employee benefits 170,448 223,609 Escrow liability associated with our wholly owned captive title company 40,459 44,115 Self-insurance 245,687 251,576 Warranty 149,395 164,409 Lease liabilities 142,901 139,664 Deferred income 47,846 50,973 Interest 32,212 31,988 Commitments to unconsolidated entities 31,744 26,905 Other 55,457 77,773 $ 1,334,197 $ 1,345,987 |
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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Balance, beginning of period $ 156,895 $ 143,043 $ 164,409 $ 145,062 Additions – homes closed during the period 10,084 13,745 17,270 23,200 Change in accruals for homes closed in prior years – net (73) 715 2,023 3,672 Charges incurred (17,511) (13,512) (34,307) (27,943) Balance, end of period $ 149,395 $ 143,991 $ 149,395 $ 143,991 |
Stock-Based Benefit Plans (Tabl
Stock-Based Benefit Plans (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Total stock-based compensation expense recognized $ 2,641 $ 3,405 $ 17,025 $ 17,020 Income tax benefit recognized $ 666 $ 855 $ 4,304 $ 4,268 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Stock Repurchase Program [Abstract] | |
Stock repurchase program | The table below provides, for the periods indicated, information about our share repurchase programs: Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Number of shares purchased (in thousands) 1,443 2,205 1,630 5,219 Average price per share $ 58.14 $ 48.30 $ 57.20 $ 56.01 Remaining authorization at April 30 (in thousands) 12,947 7,344 12,947 7,344 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in each component of accumulated other comprehensive income (loss) (“AOCI”), for the periods indicated, were as follows (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Employee Retirement Plans Beginning balance $ 2,492 $ (5,685) $ 2,475 $ (6,024) Losses reclassified from AOCI to net income (1) 24 451 47 903 Less: Tax benefit (2) (6) (113) (12) (226) Net losses reclassified from AOCI to net income 18 338 35 677 Other comprehensive loss – net of tax 18 338 35 677 Ending balance $ 2,510 $ (5,347) $ 2,510 $ (5,347) Derivative Instruments Beginning balance $ 31,662 $ 11,496 $ 35,143 $ 7,133 Gains (losses) on derivative instruments 588 17,616 (3,709) 23,363 Less: Tax (expense) benefit (138) (4,425) 948 (5,866) Net gains (losses) on derivative instruments 450 13,191 (2,761) 17,497 (Gains) losses reclassified from AOCI to net income (3) (1,000) 106 (1,362) 182 Less: Tax expense (benefit) (2) 253 (27) 345 (46) Net (gains) losses reclassified from AOCI to net income (747) 79 (1,017) 136 Other comprehensive (income) loss – net of tax (297) 13,270 (3,778) 17,633 Ending balance $ 31,365 $ 24,766 $ 31,365 $ 24,766 Total AOCI ending balance $ 33,875 $ 19,419 $ 33,875 $ 19,419 (1) Reclassified to “Other income – net” (2) Reclassified to “Income tax provision” (3) Reclassified to “Cost of revenues – home sales” |
Earnings Per Share Information
Earnings Per Share Information (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Numerator: Net income as reported $ 320,216 $ 220,593 $ 511,746 $ 372,497 Denominator: Basic weighted-average shares 111,214 117,839 111,306 119,418 Common stock equivalents (1) 970 1,086 954 1,473 Diluted weighted-average shares 112,184 118,925 112,260 120,891 Other information: Weighted-average number of antidilutive options and restricted stock units (2) 168 214 334 209 Shares issued under stock incentive and employee stock purchase plans 103 17 1,437 424 (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, 2023 | |
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, 2022 Residential Mortgage Loans Held for Sale Level 2 $ 112,603 $ 185,150 Forward Loan Commitments — Residential Mortgage Loans Held for Sale Level 2 $ 1,396 $ 9,184 Interest Rate Lock Commitments (“IRLCs”) Level 2 $ (2,884) $ (17,734) Forward Loan Commitments — IRLCs Level 2 $ 2,884 $ 17,734 Interest Rate Swap Contracts Level 2 $ 33,214 $ 45,010 |
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 Fair value At April 30, 2023 $ 115,286 $ 112,603 $ (2,683) At October 31, 2022 $ 193,746 $ 185,150 $ (8,596) |
Book value and estimated fair value of the Company's debt | The table below provides, as of the dates indicated, the book value, excluding any bond discounts, premiums, and deferred issuance costs, and estimated fair value of our debt (amounts in thousands): April 30, 2023 October 31, 2022 Fair value Book value Estimated Book value Estimated Loans payable (1) Level 2 $ 1,139,869 $ 1,123,766 $ 1,187,043 $ 1,180,893 Senior notes (2) Level 1 1,600,000 1,536,985 2,000,000 1,822,255 Mortgage company loan facility (3) Level 2 102,489 102,489 148,863 148,863 $ 2,842,358 $ 2,763,240 $ 3,335,906 $ 3,152,011 (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 (Tables)
Other Income - Net (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income - net | The table below provides the significant components of other income – net (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Income (loss) from ancillary businesses $ 2,858 $ 12,334 $ (91) $ 14,294 Management fee income earned by home building operations 659 1,037 2,062 2,375 Gain on litigation settlements – net — — 27,683 — Other 6,663 (2,147) 13,441 (1,733) Total other income – net $ 10,180 $ 11,224 $ 43,095 $ 14,936 |
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): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 Revenues $ 33,275 $ 31,890 $ 61,181 $ 59,586 Expenses $ 30,417 $ 19,556 $ 61,272 $ 45,292 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Company land purchase commitments | Information regarding our land purchase contracts, as of the dates indicated, is provided in the table below (amounts in thousands): April 30, 2023 October 31, 2022 Aggregate purchase price: Unrelated parties $ 4,031,720 $ 4,279,660 Unconsolidated entities that the Company has investments in 33,503 42,057 Total $ 4,065,223 $ 4,321,717 Deposits against aggregate purchase price $ 450,800 $ 463,452 Additional cash required to acquire land 3,614,423 3,858,265 Total $ 4,065,223 $ 4,321,717 Amount of additional cash required to acquire land included in accrued expenses $ 119,141 $ 34,994 |
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, 2022 Aggregate mortgage loan commitments: IRLCs $ 452,156 $ 669,631 Non-IRLCs 2,030,535 2,429,063 Total $ 2,482,691 $ 3,098,694 Investor commitments to purchase: IRLCs $ 452,156 $ 669,631 Mortgage loans held for sale 106,006 186,666 Total $ 558,162 $ 856,297 |
Information on Segments (Tables
Information on Segments (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Revenue and income (loss) before income taxes and total assets | Revenues and income (loss) before income taxes for each of our segments, for the periods indicated, were as follows (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 (restated) (restated) Revenues: North $ 381,316 $ 398,907 $ 704,110 $ 754,041 Mid-Atlantic 309,587 268,250 498,704 511,127 South 519,351 326,351 912,232 569,870 Mountain 674,234 653,558 1,154,446 1,115,858 Pacific 605,870 541,495 970,638 926,444 Total home building 2,490,358 2,188,561 4,240,130 3,877,340 Corporate and other (260) (2,032) (610) (3,459) 2,490,098 2,186,529 4,239,520 3,873,881 Land sales and other revenues 16,881 91,012 47,628 194,741 Total consolidated $ 2,506,979 $ 2,277,541 $ 4,287,148 $ 4,068,622 Income (loss) before income taxes: North $ 50,922 $ 50,717 $ 87,556 $ 96,384 Mid-Atlantic 64,428 43,837 87,351 77,285 South 88,721 42,974 141,167 65,551 Mountain 133,942 104,962 221,246 175,973 Pacific 157,524 116,743 236,501 179,798 Total home building 495,537 359,233 773,821 594,991 Corporate and other (64,945) (63,418) (89,433) (98,360) Total consolidated $ 430,592 $ 295,815 $ 684,388 $ 496,631 “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 our apartment rental development business and our high-rise urban luxury condominium business, 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, North $ 1,394,986 $ 1,464,995 Mid-Atlantic 1,143,351 1,049,043 South 2,371,522 2,137,568 Mountain 2,781,482 2,785,603 Pacific 2,240,371 2,174,065 Total home building 9,931,712 9,611,274 Corporate and other 2,057,764 2,677,440 Total consolidated $ 11,989,476 $ 12,288,714 |
Schedule of inventory impairments by segment | 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, which are included in home sales cost of revenues, were as follows (amounts in thousands): Three months ended April 30, Six months ended April 30, 2023 2022 2023 2022 (restated) (restated) North $ 290 $ 443 $ 431 $ 769 Mid-Atlantic 5,080 706 6,320 1,145 South 30 466 481 609 Mountain 5,487 342 5,618 444 Pacific 182 235 6,223 1,458 Total consolidated $ 11,069 $ 2,192 $ 19,073 $ 4,425 |
Supplemental Disclosure to Co_2
Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
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, 2023 2022 Cash flow information: Income tax paid – net $ 291,196 $ 131,658 Noncash activity: Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses - net $ 110,759 $ 180,576 Accrued treasury share purchases $ — $ 8,003 Transfer of other assets to investment in unconsolidated entities - net $ 2,765 $ 55,202 Transfer of other assets to property, construction and office equipment - net $ 12,268 $ — Unrealized (loss) gain on derivatives $ (11,796) $ 23,731 At April 30, 2023 2022 Cash, cash equivalents, and restricted cash Cash and cash equivalents $ 761,945 $ 535,038 Restricted cash included in receivables, prepaid expenses, and other assets 47,716 52,863 Total cash, cash equivalents, and restricted cash shown on the Condensed Consolidated Statements of Cash Flows $ 809,661 $ 587,901 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contract liabilities consisting of customer deposits | $ 662,559 | $ 662,559 | $ 680,588 | ||
Home Building [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contract liabilities, revenue recognized | $ 152,200 | $ 132,900 | $ 275,100 | $ 243,800 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Total Inventory | ||
Inventory | $ 9,107,878 | $ 8,733,326 |
Land controlled for future communities [Member] | ||
Total Inventory | ||
Inventory | 170,613 | 240,751 |
Land Owned for Future Communities [Member] | ||
Total Inventory | ||
Inventory | 876,561 | 808,851 |
Operating communities [Member] | ||
Total Inventory | ||
Inventory | $ 8,060,704 | $ 7,683,724 |
Inventory (Details 1)
Inventory (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Schedule of inventory [Line Items] | ||||
Inventory Write-down | $ 11,069 | $ 2,192 | $ 19,073 | $ 4,425 |
Land and Land Improvements | ||||
Schedule of inventory [Line Items] | ||||
Inventory Write-down | 4,700 | 5,200 | 17,700 | 5,200 |
Land controlled for future communities [Member] | ||||
Schedule of inventory [Line Items] | ||||
Inventory Write-down | 5,844 | 2,192 | 8,448 | 2,985 |
Land Owned for Future Communities [Member] | ||||
Schedule of inventory [Line Items] | ||||
Inventory Write-down | 325 | 0 | 325 | 1,440 |
Operating communities [Member] | ||||
Schedule of inventory [Line Items] | ||||
Inventory Write-down | $ 4,900 | $ 0 | $ 10,300 | $ 0 |
Inventory (Details 2)
Inventory (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Interest capitalized, beginning of period | $ 215,197 | $ 247,942 | $ 209,468 | $ 253,938 |
Interest incurred | 37,862 | 31,888 | 74,716 | 62,893 |
Interest capitalized on investments in unconsolidated entities | (2,668) | (1,516) | (5,161) | (2,806) |
Real Estate Inventory Capitalized Interest Transferred to Unconsolidated Entities | 0 | 0 | (244) | 0 |
Previously capitalized interest on investments in unconsolidated entities transferred to inventory | 277 | 60 | 446 | 195 |
Interest capitalized, end of period | 211,760 | 237,333 | 211,760 | 237,333 |
Home Building [Member] | ||||
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Interest expensed to cost of revenues | (37,558) | (40,822) | (62,638) | (73,259) |
Land [Member] | ||||
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Interest expensed to cost of revenues | $ (1,350) | $ (219) | $ (4,827) | $ (3,628) |
Inventory (Details Textual)
Inventory (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2023 USD ($) | Apr. 30, 2022 USD ($) | Oct. 31, 2022 USD ($) | |
Variable Interest Entity [Line Items] | |||||
Purchase obligation | $ 4,065,223 | $ 4,065,223 | $ 4,321,717 | ||
Home Building [Member] | |||||
Real estate inventory capitalized interest costs [Line Items] | |||||
Interest expensed to cost of revenues | $ 37,558 | $ 40,822 | $ 62,638 | $ 73,259 | |
VariableInterestEntityNotPrimaryBeneficiaryAggregatedDisclosureMember [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Number of VIE Land Purchase Contracts (in ones) | 236 | 236 | 237 | ||
Interest Rate Swap [Member] | Home Building [Member] | |||||
Real estate inventory capitalized interest costs [Line Items] | |||||
Interest expensed to cost of revenues | $ (1,000) | 106 | $ (1,362) | 182 | |
Interest Rate Swap [Member] | AOCI Attributable to Parent [Member] | |||||
Real estate inventory capitalized interest costs [Line Items] | |||||
Interest costs incurred | (588) | $ (17,616) | 3,709 | $ (23,363) | |
Land Purchase Commitment To Unrelated Party [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Purchase obligation | 4,031,720 | 4,031,720 | $ 4,279,660 | ||
Land Purchase Commitment To Unrelated Party [Member] | VariableInterestEntityNotPrimaryBeneficiaryAggregatedDisclosureMember [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Purchase obligation | 3,750,000 | 3,750,000 | 3,890,000 | ||
Land Parcel Purchase Commitment [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Deposits against aggregate purchase commitments | 450,800 | 450,800 | 463,452 | ||
Land Parcel Purchase Commitment [Member] | VariableInterestEntityNotPrimaryBeneficiaryAggregatedDisclosureMember [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Deposits against aggregate purchase commitments | $ 414,600 | $ 414,600 | $ 417,600 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Details 1) $ in Thousands | Apr. 30, 2023 USD ($) joint_ventures | Oct. 31, 2022 USD ($) joint_ventures |
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures | joint_ventures | 66 | 63 |
Investment in unconsolidated entities (1) | $ 887,643 | $ 852,314 |
Number of joint venture with funding commitments | joint_ventures | 32 | 29 |
Other commitment | $ 334,618 | $ 304,317 |
Land Development Joint Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures | joint_ventures | 16 | 15 |
Investment in unconsolidated entities (1) | $ 341,358 | $ 343,314 |
Number of joint venture with funding commitments | joint_ventures | 9 | 9 |
Home Building Joint Ventures, Total [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures | joint_ventures | 3 | 3 |
Investment in unconsolidated entities (1) | $ 66,271 | $ 49,385 |
Number of joint venture with funding commitments | joint_ventures | 0 | 1 |
Rental Joint Ventures, including the Trust [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures | joint_ventures | 43 | 41 |
Investment in unconsolidated entities (1) | $ 468,336 | $ 441,399 |
Number of joint venture with funding commitments | joint_ventures | 22 | 18 |
Gibraltar Joint Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures | joint_ventures | 4 | 4 |
Investment in unconsolidated entities (1) | $ 11,678 | $ 18,216 |
Number of joint venture with funding commitments | joint_ventures | 1 | 1 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures | joint_ventures | 13 | 13 |
Investment in unconsolidated entities (1) | $ 104,800 | $ 100,200 |
Other commitment | $ 106,200 | $ 105,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Minimum [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest | 20% | 20% |
Variable Interest Entity, Not Primary Beneficiary [Member] | Maximum [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest | 50% | 50% |
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 | $ 215,524 | $ 180,812 |
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 | 20,072 |
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 | 107,524 | 90,900 |
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 | 11,570 | 12,533 |
Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other commitment | $ 201,200 | $ 200,000 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities (Details 2) $ in Thousands | Apr. 30, 2023 USD ($) joint_ventures | Oct. 31, 2022 USD ($) joint_ventures |
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures with loan commitments | joint_ventures | 53 | 47 |
Line of credit facility, maximum borrowing capacity | $ 4,435,404 | $ 4,094,096 |
Amounts borrowed under commitments | $ 2,564,197 | $ 2,236,456 |
Land Development Joint Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures with loan commitments | joint_ventures | 11 | 10 |
Line of credit facility, maximum borrowing capacity | $ 576,959 | $ 557,185 |
Amounts borrowed under commitments | $ 449,637 | $ 444,306 |
Home Building Joint Ventures, Total [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures with loan commitments | joint_ventures | 2 | 2 |
Line of credit facility, maximum borrowing capacity | $ 219,650 | $ 219,650 |
Amounts borrowed under commitments | $ 78,114 | $ 17,583 |
Rental Joint Ventures, including the Trust [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures with loan commitments | joint_ventures | 40 | 35 |
Line of credit facility, maximum borrowing capacity | $ 3,638,795 | $ 3,317,261 |
Amounts borrowed under commitments | $ 2,036,446 | $ 1,774,567 |
Investments in Unconsolidated_5
Investments in Unconsolidated Entities (Details 3) $ in Thousands | 6 Months Ended | ||
Apr. 30, 2023 USD ($) joint_ventures | Apr. 30, 2022 USD ($) joint_ventures | Oct. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated entities (1) | $ 887,643 | $ 852,314 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated entities (1) | 84,300 | 81,300 | |
Land Development Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated entities (1) | 341,358 | 343,314 | |
Rental Joint Ventures, including the Trust [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated entities (1) | 468,336 | 441,399 | |
Gibraltar Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated entities (1) | $ 11,678 | $ 18,216 | |
Newly Formed Joint Ventures [Member] | Land Development Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of JVs formed in the period | joint_ventures | 1 | 2 | |
Investment in unconsolidated entities (1) | $ 11,755 | $ 13,816 | |
Newly Formed Joint Ventures [Member] | Rental Joint Ventures, including the Trust [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of JVs formed in the period | joint_ventures | 2 | 7 | |
Investment in unconsolidated entities (1) | $ 4,795 | $ 69,513 | |
Newly Formed Joint Ventures [Member] | Gibraltar Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of JVs formed in the period | joint_ventures | 1 | ||
Investment in unconsolidated entities (1) | $ 2,093 |
Investments in Unconsolidated_6
Investments in Unconsolidated Entities (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2023 | Apr. 30, 2023 | Oct. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 4,435,404 | $ 4,094,096 | |
Long-term line of credit | 2,564,197 | 2,236,456 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1) | 95,000 | 95,000 | |
Equity Method Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Estimated fair value of guarantees provided by us related to debt and other obligations | 19,000 | 16,900 | |
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 3,181,400 | 2,858,800 | |
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1) | 654,400 | 597,800 | |
Long-term line of credit | 1,436,200 | 1,110,900 | |
Maximum repapyment and carry cost guarantee obligation for borrowings by JV | $ 487,600 | $ 390,500 | |
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Minimum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Terms of guarantees | 1 month | 1 month | |
Indirect Guarantee of Indebtedness [Member] | Equity Method Investee [Member] | Maximum [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Terms of guarantees | 3.7 years | 3.9 years |
Investments in Unconsolidated_7
Investments in Unconsolidated Entities (Details 5) $ in Thousands | 6 Months Ended | ||
Apr. 30, 2023 USD ($) joint_ventures | Apr. 30, 2022 USD ($) joint_ventures | Oct. 31, 2022 USD ($) joint_ventures | |
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Number of joint ventures | joint_ventures | 66 | 63 | |
Investment in unconsolidated entities (1) | $ 887,643 | $ 852,314 | |
Other commitment | $ 334,618 | $ 304,317 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Number of joint ventures | joint_ventures | 13 | 13 | |
Investment in unconsolidated entities (1) | $ 104,800 | $ 100,200 | |
Other commitment | 106,200 | 105,000 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Other commitment | $ 201,200 | $ 200,000 | |
Rental Joint Ventures, including the Trust [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Number of joint ventures | joint_ventures | 43 | 41 | |
Investment in unconsolidated entities (1) | $ 468,336 | $ 441,399 | |
Rental Joint Ventures, including the Trust [Member] | Newly Formed Joint Ventures [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Investment in unconsolidated entities (1) | $ 4,795 | $ 69,513 | |
Number of JVs formed in the period | joint_ventures | 2 | 7 | |
Rental Joint Ventures, including the Trust [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Other commitment | $ 107,524 | $ 90,900 | |
Land Development Joint Ventures [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Number of joint ventures | joint_ventures | 16 | 15 | |
Investment in unconsolidated entities (1) | $ 341,358 | $ 343,314 | |
Land Development Joint Ventures [Member] | Newly Formed Joint Ventures [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Investment in unconsolidated entities (1) | $ 11,755 | $ 13,816 | |
Number of JVs formed in the period | joint_ventures | 1 | 2 | |
Land Development Joint Ventures [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Other commitment | $ 215,524 | $ 180,812 | |
Gibraltar Joint Ventures [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Number of joint ventures | joint_ventures | 4 | 4 | |
Investment in unconsolidated entities (1) | $ 11,678 | $ 18,216 | |
Gibraltar Joint Ventures [Member] | Newly Formed Joint Ventures [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Investment in unconsolidated entities (1) | $ 2,093 | ||
Number of JVs formed in the period | joint_ventures | 1 | ||
Gibraltar Joint Ventures [Member] | Commitment To Advance Or Invest In Affiliates Subsidiaries And Joint Venture [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Other commitment | $ 11,570 | $ 12,533 | |
Minimum [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Ownership interest | 20% | 20% | |
Maximum [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract] | |||
Ownership interest | 50% | 50% |
Investments in Unconsolidated_8
Investments in Unconsolidated Entities (Details 6) $ in Thousands | Apr. 30, 2023 USD ($) joint_ventures | Oct. 31, 2022 USD ($) joint_ventures |
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Number of joint ventures | joint_ventures | 66 | 63 |
Investment in unconsolidated entities (1) | $ 887,643 | $ 852,314 |
Total assets | $ 11,989,476 | $ 12,288,714 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Number of joint ventures | joint_ventures | 6 | 5 |
Investment in unconsolidated entities (1) | $ 84,300 | $ 81,300 |
Noncontrolling Interest in Variable Interest Entity | $ 9,600 | $ 9,700 |
Variable Interest Entity, Primary Beneficiary [Member] | Minimum [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Ownership interest | 80% | |
Variable Interest Entity, Primary Beneficiary [Member] | Maximum [Member] | ||
Statement of Investments in and Advances to Unconsolidated Entities [Line Items] | ||
Ownership interest | 98% |
Investments in Unconsolidated_9
Investments in Unconsolidated Entities (Details 7) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 |
Condensed Balance Sheets: | ||||
Cash and cash equivalents | $ 809,661 | $ 1,398,550 | $ 587,901 | $ 1,684,412 |
Inventory | 9,107,878 | 8,733,326 | ||
Other Assets | 110,245 | 135,604 | ||
Total assets | 11,989,476 | 12,288,714 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 15,506 | 15,752 | ||
Total liabilities and stockholders' equity | 11,989,476 | 12,288,714 | ||
Investments in unconsolidated entities | 887,643 | 852,314 | ||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | (4,400) | (18,500) | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Condensed Balance Sheets: | ||||
Cash and cash equivalents | 135,511 | 254,884 | ||
Inventory | 1,342,879 | 1,256,215 | ||
Loans Receivable, Net | 44,807 | 48,217 | ||
Rental Properties | 1,887,721 | 1,702,690 | ||
Rental properties under development | 1,596,007 | 1,413,607 | ||
Other Assets | 364,735 | 305,250 | ||
Total assets | 5,371,660 | 4,980,863 | ||
Debt, net of deferred financing costs | 2,555,116 | 2,248,754 | ||
Other Liabilities | 392,710 | 399,818 | ||
Members' Equity | 2,423,834 | 2,332,291 | ||
Total liabilities and stockholders' equity | 5,371,660 | 4,980,863 | ||
Investments in unconsolidated entities | $ 887,643 | $ 852,314 |
Investments in Unconsolidate_10
Investments in Unconsolidated Entities (Details 8) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Condensed Statements of Operations and Comprehensive Income: | ||||
Income before income taxes | $ 430,592 | $ 295,815 | $ 684,388 | $ 496,631 |
Income Tax Expense (Benefit) | 110,376 | 75,222 | 172,642 | 124,134 |
Net Income (Loss) Attributable to Noncontrolling Interest | 141 | (65) | 246 | (86) |
Net income | 320,216 | 220,593 | 511,746 | 372,497 |
Company's (loss) income from unconsolidated entities | (5,302) | 2,933 | (9,735) | 24,970 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Condensed Statements of Operations and Comprehensive Income: | ||||
Revenues | 125,397 | 130,771 | 237,116 | 286,523 |
Cost of Revenue | 78,613 | 86,219 | 137,966 | 194,701 |
Other expenses | 56,655 | 39,172 | 119,729 | 82,776 |
Total expenses | 135,268 | 125,391 | 257,695 | 277,477 |
Loss on disposition of loans and real estate owned | 0 | 0 | 0 | (113) |
Income before income taxes | (9,871) | 5,380 | (20,579) | 8,933 |
Other Income | (2,276) | 7,064 | (3,632) | 40,410 |
Net Income Before Noncontrolling Interest | (12,147) | 12,444 | (24,211) | 49,343 |
Income Tax Expense (Benefit) | (148) | 74 | (166) | 156 |
Net income (loss) | (11,999) | 12,370 | (24,045) | 49,187 |
Company's (loss) income from unconsolidated entities | $ (5,302) | $ 2,933 | $ (9,735) | 24,970 |
Gain (Loss) on Disposition of Property Plant Equipment | $ 29,900 |
Investments in Unconsolidate_11
Investments in Unconsolidated Entities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 4,435,404 | $ 4,435,404 | $ 4,094,096 | ||
Long-term line of credit | 2,564,197 | 2,564,197 | 2,236,456 | ||
Investment in unconsolidated entities (1) | 887,643 | 887,643 | 852,314 | ||
Revenues | 2,506,979 | $ 2,277,541 | 4,287,148 | $ 4,068,622 | |
Land [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 16,881 | $ 91,012 | 47,628 | 194,741 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated entities (1) | 104,800 | 104,800 | 100,200 | ||
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1) | $ 95,000 | $ 95,000 | $ 95,000 | ||
Rental Joint Ventures, including Trusts i and II [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 21,000 |
Investments in Unconsolidate_12
Investments in Unconsolidated Entities (Details Textual 1) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 USD ($) joint_ventures | Apr. 30, 2022 USD ($) | Apr. 30, 2023 USD ($) joint_ventures | Apr. 30, 2022 USD ($) | Oct. 31, 2022 USD ($) joint_ventures | |
Schedule of Equity Method Investments [Line Items] | |||||
Number of joint ventures | joint_ventures | 66 | 66 | 63 | ||
Line of credit facility, maximum borrowing capacity | $ 4,435,404 | $ 4,435,404 | $ 4,094,096 | ||
Proceeds from Equity Method Investment, Distribution | 30,447 | $ 29,636 | |||
Long-term line of credit | 2,564,197 | 2,564,197 | 2,236,456 | ||
Total assets | $ 11,989,476 | $ 11,989,476 | $ 12,288,714 | ||
Co-venturer [Member] | Minimum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 5% | 5% | |||
Co-venturer [Member] | Maximum [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50% | 50% | |||
Land Development Joint Ventures [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of joint ventures | joint_ventures | 16 | 16 | 15 | ||
Land Development Joint Ventures [Member] | Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | $ 52,400 | $ 14,100 | $ 69,100 | 37,900 | |
Rental Joint Ventures, including the Trust [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of joint ventures | joint_ventures | 43 | 43 | 41 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of joint ventures | joint_ventures | 13 | 13 | 13 | ||
Rental Joint Ventures, including Trusts i and II [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 21,000 | ||||
Land sales earnings, net | $ 8,200 | 73,900 | $ 8,200 | $ 151,900 | |
Equity Method Investment, Number of Joint Ventures with Realized Gain (Loss) on Disposal Amount | 0 | $ 0 | $ 0 | ||
Home Building Joint Ventures, Total [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other than Temporary Impairment Losses, Investments | $ 0 |
Receivables, Prepaid Expenses_3
Receivables, Prepaid Expenses, and Other Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Receivables, prepaid expenses and other assets [Abstract] | ||
Expected recoveries from insurance carriers and others | $ 35,873 | $ 41,527 |
Improvement cost receivable | 57,190 | 60,812 |
Escrow cash held by our wholly owned captive title company | 47,716 | 51,796 |
Properties held for rental apartment and commercial development | 261,980 | 224,593 |
Prepaid expenses | 28,312 | 44,307 |
Right-of-use asset | 118,803 | 116,660 |
Derivative assets | 37,493 | 71,929 |
Other Assets | 110,245 | 135,604 |
Receivables, prepaid expenses and other assets | $ 697,612 | $ 747,228 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets |
Loans Payable, Senior Notes a_3
Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Debt Instrument [Line Items] | ||
Other Loans Payable | $ 489,869 | $ 537,043 |
Loans payable | 1,136,235 | 1,185,275 |
Senior unsecured term loan [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Long-term Debt, Noncurrent | 650,000 | 650,000 |
Deferred Finance Costs, Net | $ (3,634) | $ (1,768) |
Loans Payable, Senior Notes a_4
Loans Payable, Senior Notes and Mortgage Company Loan Facility Term Loan Facility (Details Textual 1) $ in Thousands | 6 Months Ended | ||||
Apr. 30, 2023 USD ($) | Feb. 14, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Nov. 30, 2020 USD ($) numberOfInterestRateSwaps | |
Senior unsecured term loan due February 14 2028 | |||||
Debt Instrument [Line Items] | |||||
Repayments of Debt | $ 0 | ||||
Senior unsecured term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured Long-term Debt, Noncurrent | $ 650,000 | $ 650,000 | |||
Senior unsecured term loan [Member] | Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured Long-term Debt, Noncurrent | $ 400,000 | ||||
Number of Interest Rate Derivatives Held | numberOfInterestRateSwaps | 5 | ||||
Derivative, Fixed Interest Rate | 0.369% | ||||
Fixed interest rate spread | 1.15% | ||||
Senior unsecured term loan due November 1 2026 | |||||
Debt Instrument [Line Items] | |||||
Unsecured Long-term Debt, Noncurrent | $ 650,000 | ||||
Debt Instrument, Interest Rate at Period End | 5.95% | ||||
Senior unsecured term loan due November 1 2026 | Debt Instrument, Redemption, Period Four | |||||
Debt Instrument [Line Items] | |||||
Unsecured Long-term Debt, Noncurrent | $ 60,900 | ||||
Senior unsecured term loan due November 1 2025 | Debt Instrument, Redemption, Period Four | |||||
Debt Instrument [Line Items] | |||||
Unsecured Long-term Debt, Noncurrent | 101,600 | $ 101,600 | |||
Senior unsecured term loan due February 14 2028 | |||||
Debt Instrument [Line Items] | |||||
Unsecured Long-term Debt, Noncurrent | $ 487,500 | ||||
Guarantor Subsidiaries [Member] | Toll Brothers | |||||
Debt Instrument [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% |
Loans Payable, Senior Notes a_5
Loans Payable, Senior Notes and Mortgage Company Loan Facility Credit Facility (Details Textual 2) - USD ($) $ in Thousands | 6 Months Ended | |||
Apr. 30, 2023 | Feb. 14, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 4,435,404 | $ 4,094,096 | ||
Long-term line of credit | $ 2,564,197 | $ 2,236,456 | ||
Oct 2021 Revolving Credit Facility Extension Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,905,000 | |||
Maximum Permissible Leverage Ratio | 175% | |||
Minimum Net Worth Required for Compliance | $ 4,040,000 | |||
Existing Leverage Ratio | 0.32 | |||
Tangible Net Worth | $ 6,370,000 | |||
Ability to repurchase common stock | 3,630,000 | |||
Ability to pay dividends | 2,330,000 | |||
Long-term line of credit | 0 | |||
Letters of Credit Outstanding, Amount | $ 116,000 | |||
Debt Instrument, Interest Rate at Period End | 6.10% | |||
Feb 2023 Revolving Credit Facility Extension Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,905,000 | |||
Line of credit facility, additional borrowing capacity amount | $ 3,000,000 |
Loans Payable, Senior Notes a_6
Loans Payable, Senior Notes and Mortgage Company Loan Facility Loans Payable - Other (Details Textual 3) | Apr. 30, 2023 |
Loans Payable [Member] | |
Debt Instrument [Line Items] | |
Debt, Weighted Average Interest Rate | 4.22% |
Loans Payable, Senior Notes a_7
Loans Payable, Senior Notes and Mortgage Company Loan Facility Senior Notes Payable (Details Textual 4) $ in Thousands | 6 Months Ended | ||||
Apr. 17, 2023 USD ($) | Nov. 15, 2021 USD ($) | Apr. 30, 2023 USD ($) debtissuances | Apr. 30, 2022 USD ($) | Oct. 31, 2022 USD ($) | |
Senior Note Payable (Textual) [Abstract] | |||||
Number of issuances of senior debt | debtissuances | 4 | ||||
Repayments of Senior Debt | $ 400,000 | $ 409,856 | |||
Senior notes | 1,595,727 | $ 1,995,271 | |||
Senior Notes [Member] | |||||
Senior Note Payable (Textual) [Abstract] | |||||
Debt Instrument, Face Amount | $ 1,600,000 | ||||
5.875% Senior Notes due 2022 | |||||
Senior Note Payable (Textual) [Abstract] | |||||
Repayments of Senior Debt | $ 409,900 | ||||
Interest rate on notes | 4.375% | 5.875% | |||
4.375% Senior Notes due 2023 | |||||
Senior Note Payable (Textual) [Abstract] | |||||
Repayments of Senior Debt | $ 400,000 |
Loans Payable, Senior Notes a_8
Loans Payable, Senior Notes and Mortgage Company Loan Facility Mortgage Company Loan Facility (Details Textual 5) - USD ($) $ in Thousands | 1 Months Ended | |||
Mar. 31, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Oct. 31, 2022 | |
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 4,435,404 | $ 4,094,096 | ||
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, Interest Rate, Effective Percentage | 6.80% | |||
Bloomsberg Short-Term Bank Yield Index (BSBY) | Warehouse Agreement Borrowings [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 1.75% | ||
Bloomsberg Short-Term Bank Yield Index (BSBY) | Warehouse Agreement Borrowings [Member] | Interest Rate Floor | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | 0.50% |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2021 |
Accrued expenses | ||||||
Land, land development, and construction | $ 418,048 | $ 334,975 | ||||
Compensation and employee benefits | 170,448 | 223,609 | ||||
Escrow liability associated with our wholly owned captive title company | 40,459 | 44,115 | ||||
Self-insurance | 245,687 | 251,576 | ||||
Warranty | 149,395 | $ 156,895 | 164,409 | $ 143,991 | $ 143,043 | $ 145,062 |
Lease Liabilities | $ 142,901 | $ 139,664 | ||||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses, Total | Accrued expenses, Total | ||||
Deferred income | $ 47,846 | $ 50,973 | ||||
Interest | 32,212 | 31,988 | ||||
Commitments to unconsolidated entities | 31,744 | 26,905 | ||||
Other | 55,457 | 77,773 | ||||
Accrued expenses, Total | $ 1,334,197 | $ 1,345,987 |
Accrued Expenses (Detail Textua
Accrued Expenses (Detail Textuals) - USD ($) $ in Thousands | 45 Months Ended | |||||||
Jul. 31, 2020 | Apr. 30, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2019 | |
Loss Contingencies [Line Items] | ||||||||
Standard and Extended Product Warranty Accrual | $ 149,395 | $ 156,895 | $ 164,409 | $ 143,991 | $ 143,043 | $ 145,062 | ||
Loss Contingency, Receivable | 35,873 | 41,527 | ||||||
Water intrusion related [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Estimate of Possible Loss | $ 324,400 | |||||||
Standard and Extended Product Warranty Accrual | $ 44,200 | $ 46,900 | ||||||
Other Assets [Member] | Water intrusion related [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Product Liability Contingency, Third Party Recovery | $ 152,600 |
Accrued Expenses (Details 1)
Accrued Expenses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Changes in the warranty accrual | ||||
Balance, beginning of year | $ 156,895 | $ 143,043 | $ 164,409 | $ 145,062 |
Additions - homes closed during the period | 10,084 | 13,745 | 17,270 | 23,200 |
Charges incurred | (17,511) | (13,512) | (34,307) | (27,943) |
Balance, end of year | 149,395 | 143,991 | 149,395 | 143,991 |
Warranty change, homes closed in prior period, other [Member] | ||||
Changes in the warranty accrual | ||||
Increase in accruals for homes closed in prior years - net | $ (73) | $ 715 | $ 2,023 | $ 3,672 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | |
Income Taxes (Textual) [Abstract] | |||||
Income tax provision | $ 110,376 | $ 75,222 | $ 172,642 | $ 124,134 | |
Effective Income Tax Rate Reconciliation, Percent | 25.60% | 25.40% | 25.20% | 25% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 5.70% | 5.60% | |||
Unrecognized Tax Benefits | $ 5,800 | $ 5,800 |
Stock-Based Benefit Plans (Deta
Stock-Based Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense recognized | $ 2,641 | $ 3,405 | $ 17,025 | $ 17,020 |
Income tax benefit recognized | $ 666 | $ 855 | $ 4,304 | $ 4,268 |
Stock-Based Benefit Plans (De_2
Stock-Based Benefit Plans (Details Textual) - USD ($) $ in Millions | Apr. 30, 2023 | Oct. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unamortized value of unvested stock-based compensation awards | $ 21.8 | $ 15.5 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Stock Repurchase Program [Abstract] | ||||
Number of shares purchased | 1,443 | 2,205 | 1,630 | 5,219 |
Average price per share | $ 58.14 | $ 48.30 | $ 57.20 | $ 56.01 |
Remaining authorization at April 30: | 12,947 | 7,344 | 12,947 | 7,344 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - $ / shares shares in Millions | 3 Months Ended | 6 Months Ended | |||||||
Mar. 09, 2023 | Mar. 08, 2022 | Mar. 09, 2021 | Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | May 17, 2022 | Oct. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, dividends, declared and paid (in dollars per share) | $ 0.21 | $ 0.20 | $ 0.17 | $ 0.21 | $ 0.20 | $ 0.41 | $ 0.37 | ||
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 (in shares) | 20 | ||||||||
May 2022 Repurchase Program | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 20 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 37,618 | |||
Other Comprehensive Income (Loss), Net of Tax | $ (279) | $ 13,608 | (3,743) | $ 18,310 |
Ending balance | 33,875 | 19,419 | 33,875 | 19,419 |
Total AOCI ending balance | 33,875 | 19,419 | 33,875 | 19,419 |
Defined Benefit Plan, Unfunded Plan [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 2,492 | (5,685) | 2,475 | (6,024) |
Losses reclassified from AOCI to net income (1) | 24 | 451 | 47 | 903 |
Less: Tax benefit (2) | (6) | (113) | (12) | (226) |
Net losses reclassified from AOCI to net income | 18 | 338 | 35 | 677 |
Other Comprehensive Income (Loss), Net of Tax | 18 | 338 | 35 | 677 |
Ending balance | 2,510 | (5,347) | 2,510 | (5,347) |
Total AOCI ending balance | 2,510 | (5,347) | 2,510 | (5,347) |
Interest Rate Swap [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 31,662 | 11,496 | 35,143 | 7,133 |
Other Comprehensive Income (Loss), Net of Tax | (297) | 13,270 | (3,778) | 17,633 |
Ending balance | 31,365 | 24,766 | 31,365 | 24,766 |
Gains (losses) on derivative instruments | 588 | 17,616 | (3,709) | 23,363 |
Less: Tax (expense) benefit | (138) | (4,425) | 948 | (5,866) |
Net gains (losses) on derivative instruments | 450 | 13,191 | (2,761) | 17,497 |
(Gains) losses reclassified from AOCI to net income (3) | (1,000) | 106 | (1,362) | 182 |
Less: Tax expense (benefit) (2) | 253 | (27) | 345 | (46) |
Net (gains) losses reclassified from AOCI to net income | (747) | 79 | (1,017) | 136 |
Total AOCI ending balance | $ 31,365 | $ 24,766 | $ 31,365 | $ 24,766 |
Earnings Per Share Informatio_2
Earnings Per Share Information (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income as reported | $ 320,216 | $ 220,593 | $ 511,746 | $ 372,497 |
Basic weighted-average shares (in shares) | 111,214 | 117,839 | 111,306 | 119,418 |
Common stock equivalents (in shares) | 970 | 1,086 | 954 | 1,473 |
Diluted weighted-average shares (in shares) | 112,184 | 118,925 | 112,260 | 120,891 |
Debt Instrument [Line Items] | ||||
Shares issued under stock incentive and employee stock purchase plans (in shares) | 103 | 17 | 1,437 | 424 |
Restricted Stock Units RSU And Employee Stock Option Member [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted-average number of antidilutive options and restricted stock units (in shares) | 168 | 214 | 334 | 209 |
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, 2023 | Oct. 31, 2022 |
Forward Contracts [Member] | Residential Mortgage [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Asset | $ 1,396 | $ 9,184 |
Interest Rate Swap [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Asset | 33,214 | 45,010 |
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 | 112,603 | 185,150 |
Interest Rate Lock Commitments [Member] | Forward Contracts [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Asset | 2,884 | 17,734 |
Interest Rate Lock Commitments [Member] | ||
Summary of assets and (liabilities), measured at fair value on a recurring basis | ||
Derivative Liability | $ (2,884) | $ (17,734) |
Fair Value Disclosures (Level_2
Fair Value Disclosures (Level 4 loan UPB vs FV) (Details 1) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Aggregate unpaid principal and fair value of mortgage loans held for sale | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 112,603 | $ 185,150 |
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 | 115,286 | 193,746 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 112,603 | 185,150 |
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | $ (2,683) | $ (8,596) |
Fair Value Disclosures (Level_3
Fair Value Disclosures (Level 4 debt fv) (Details 2) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Book value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 2,842,358 | $ 3,335,906 |
Book value [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 | 1,139,869 | 1,187,043 |
Book value [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 | 102,489 | 148,863 |
Book value [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 | 1,600,000 | 2,000,000 |
Estimate fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 2,763,240 | 3,152,011 |
Estimate fair value [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 | 1,123,766 | 1,180,893 |
Estimate fair value [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 | 102,489 | 148,863 |
Estimate fair value [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 | $ 1,536,985 | $ 1,822,255 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Fair value inputs, assets, quantitative information [Line Items] | ||||
Inventory Write-down | $ 11,069 | $ 2,192 | $ 19,073 | $ 4,425 |
Land Owned for Future Communities [Member] | ||||
Fair value inputs, assets, quantitative information [Line Items] | ||||
Inventory Write-down | $ 325 | $ 0 | $ 325 | $ 1,440 |
Other Income - Net (Details)
Other Income - Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Other Nonoperating Income By Component [Line Items] | ||||
Income (loss) from ancillary businesses | $ 2,858 | $ 12,334 | $ (91) | $ 14,294 |
Management fee income earned by home building operations | 2,506,979 | 2,277,541 | 4,287,148 | 4,068,622 |
Other | 6,663 | (2,147) | 13,441 | (1,733) |
Total other income - net | 10,180 | 11,224 | 43,095 | 14,936 |
Revenues and expenses of non-core ancillary businesses | ||||
Revenues | 33,275 | 31,890 | 61,181 | 59,586 |
Expenses | 30,417 | 19,556 | 61,272 | 45,292 |
Other Income | ||||
Other Nonoperating Income By Component [Line Items] | ||||
Gain (Loss) Related to Litigation Settlement | 0 | 0 | 27,683 | 0 |
Management Fee [Member] | ||||
Other Nonoperating Income By Component [Line Items] | ||||
Management fee income earned by home building operations | $ 659 | $ 1,037 | $ 2,062 | $ 2,375 |
Other Income - Net (Details Tex
Other Income - Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income from Ancillary Businesses, net | $ 2,858 | $ 12,334 | $ (91) | $ 14,294 |
Security Monitoring Business | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain (Loss) on Disposition of Other Assets | 9,000 | 9,000 | ||
Apartment living [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income from Ancillary Businesses, net | $ 6,400 | $ 4,800 | $ 12,600 | $ 9,600 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Company's land purchase commitments | ||
Purchase obligation | $ 4,065,223 | $ 4,321,717 |
Land Purchase Commitment To Unrelated Party [Member] | ||
Company's land purchase commitments | ||
Purchase obligation | 4,031,720 | 4,279,660 |
Land Purchase Commitment To JV [Member] | ||
Company's land purchase commitments | ||
Purchase obligation | 33,503 | 42,057 |
Land Parcel Purchase Commitment [Member] | ||
Company's land purchase commitments | ||
Deposits against aggregate purchase commitments | 450,800 | 463,452 |
Additional cash required to acquire land | 3,614,423 | 3,858,265 |
Amount of Additional Cash Required to Acquire Land Included in Accrued Expenses | $ 119,141 | $ 34,994 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual 1) $ in Thousands | Apr. 30, 2023 USD ($) home_sites | Oct. 31, 2022 USD ($) |
Long-term Purchase Commitment [Line Items] | ||
Purchase obligation | $ 4,065,223 | $ 4,321,717 |
Minimum [Member] | Co-venturer [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Equity Method Investment, Ownership Percentage | 5% | |
Land for Apartment Development Purchase Commitment [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase obligation | $ 330,800 | |
Deposits against aggregate purchase commitments | $ 13,200 | |
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 | 8,400 |
Commitments and Contingencies_4
Commitments and Contingencies (Details Textual 2) $ in Thousands | Apr. 30, 2023 USD ($) luxury_homes |
Backlog Information [Abstract] | |
Number of homes to be delivered (in ones) | luxury_homes | 7,574 |
Aggregate sales value of outstanding homes to be delivered | $ 8,380,000 |
Oct 2021 Revolving Credit Facility Extension Agreement | |
Loss Contingencies [Line Items] | |
Outstanding letter of credit | 116,000 |
Surety Bond Construction Improvements [Member] | |
Loss Contingencies [Line Items] | |
Outstanding Surety Bonds Amount | 836,600 |
Amount of work remains on improvements in the Company's various communities | 344,200 |
Surety Bond Other Obligations [Member] | |
Loss Contingencies [Line Items] | |
Additional outstanding surety bonds | 303,900 |
Financial Guarantee | |
Loss Contingencies [Line Items] | |
Outstanding Surety Bonds Amount | $ 25,700 |
Commitments and Contingencies_5
Commitments and Contingencies (Details 1) - Loan Origination Commitments [Member] - USD ($) $ in Thousands | Apr. 30, 2023 | Oct. 31, 2022 |
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | $ 2,482,691 | $ 3,098,694 |
Investor commitments to purchase | 558,162 | 856,297 |
Interest Rate Lock Commitments [Member] | ||
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | 452,156 | 669,631 |
Investor commitments to purchase | 452,156 | 669,631 |
Non Interest Rate Lock Commitments [Member] | ||
Company's mortgage commitments | ||
Unused Commitments to Extend Credit | 2,030,535 | 2,429,063 |
Mortgage Receivable [Member] | ||
Company's mortgage commitments | ||
Investor commitments to purchase | $ 106,006 | $ 186,666 |
Information on Segments (Detail
Information on Segments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | $ 11,069 | $ 2,192 | $ 19,073 | $ 4,425 |
Traditional Homebuilding [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | 11,069 | 2,192 | 19,073 | 4,425 |
North [Member] | Traditional Homebuilding [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | 290 | 443 | 431 | 769 |
Mid-Atlantic [Member] | Traditional Homebuilding [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | 5,080 | 706 | 6,320 | 1,145 |
Pacific [Member] | Traditional Homebuilding [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | 182 | 235 | 6,223 | 1,458 |
Land and Land Improvements | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | 4,700 | $ 5,200 | 17,700 | $ 5,200 |
Land and Land Improvements | Corporate and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | 2,500 | 2,500 | ||
Land and Land Improvements | North [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | 2,700 | |||
Land and Land Improvements | Mid-Atlantic [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | 10,300 | |||
Land and Land Improvements | Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Inventory Write-down | $ 2,200 | $ 2,200 |
Information on Segments (Deta_2
Information on Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | |
Revenues | |||||
Revenues | $ 2,506,979 | $ 2,277,541 | $ 4,287,148 | $ 4,068,622 | |
Income (loss) before income taxes | |||||
Income before income taxes | 430,592 | 295,815 | 684,388 | 496,631 | |
Total assets | |||||
Total assets | 11,989,476 | 11,989,476 | $ 12,288,714 | ||
Inventory Write-down | 11,069 | 2,192 | 19,073 | 4,425 | |
Corporate and other [Member] | |||||
Revenues | |||||
Revenues | (260) | (2,032) | (610) | (3,459) | |
Income (loss) before income taxes | |||||
Income before income taxes | (64,945) | (63,418) | (89,433) | (98,360) | |
Total assets | |||||
Total assets | 2,057,764 | 2,057,764 | 2,677,440 | ||
Traditional Homebuilding [Member] | |||||
Revenues | |||||
Revenues | 2,490,358 | 2,188,561 | 4,240,130 | 3,877,340 | |
Income (loss) before income taxes | |||||
Income before income taxes | 495,537 | 359,233 | 773,821 | 594,991 | |
Total assets | |||||
Total assets | 9,931,712 | 9,931,712 | 9,611,274 | ||
Inventory Write-down | 11,069 | 2,192 | 19,073 | 4,425 | |
North [Member] | Traditional Homebuilding [Member] | |||||
Revenues | |||||
Revenues | 381,316 | 398,907 | 704,110 | 754,041 | |
Income (loss) before income taxes | |||||
Income before income taxes | 50,922 | 50,717 | 87,556 | 96,384 | |
Total assets | |||||
Total assets | 1,394,986 | 1,394,986 | 1,464,995 | ||
Inventory Write-down | 290 | 443 | 431 | 769 | |
Mid-Atlantic [Member] | Traditional Homebuilding [Member] | |||||
Revenues | |||||
Revenues | 309,587 | 268,250 | 498,704 | 511,127 | |
Income (loss) before income taxes | |||||
Income before income taxes | 64,428 | 43,837 | 87,351 | 77,285 | |
Total assets | |||||
Total assets | 1,143,351 | 1,143,351 | 1,049,043 | ||
Inventory Write-down | 5,080 | 706 | 6,320 | 1,145 | |
South [Member] | Traditional Homebuilding [Member] | |||||
Revenues | |||||
Revenues | 519,351 | 326,351 | 912,232 | 569,870 | |
Income (loss) before income taxes | |||||
Income before income taxes | 88,721 | 42,974 | 141,167 | 65,551 | |
Total assets | |||||
Total assets | 2,371,522 | 2,371,522 | 2,137,568 | ||
Inventory Write-down | 30 | 466 | 481 | 609 | |
Mountain [Member] | Traditional Homebuilding [Member] | |||||
Revenues | |||||
Revenues | 674,234 | 653,558 | 1,154,446 | 1,115,858 | |
Income (loss) before income taxes | |||||
Income before income taxes | 133,942 | 104,962 | 221,246 | 175,973 | |
Total assets | |||||
Total assets | 2,781,482 | 2,781,482 | 2,785,603 | ||
Inventory Write-down | 5,487 | 342 | 5,618 | 444 | |
Pacific [Member] | Traditional Homebuilding [Member] | |||||
Revenues | |||||
Revenues | 605,870 | 541,495 | 970,638 | 926,444 | |
Income (loss) before income taxes | |||||
Income before income taxes | 157,524 | 116,743 | 236,501 | 179,798 | |
Total assets | |||||
Total assets | 2,240,371 | 2,240,371 | $ 2,174,065 | ||
Inventory Write-down | 182 | 235 | 6,223 | 1,458 | |
Home Building [Member] | |||||
Revenues | |||||
Revenues | 2,490,098 | 2,186,529 | 4,239,520 | 3,873,881 | |
Land and Land Improvements | |||||
Total assets | |||||
Inventory Write-down | 4,700 | $ 5,200 | 17,700 | $ 5,200 | |
Land and Land Improvements | Corporate and other [Member] | |||||
Total assets | |||||
Inventory Write-down | 2,500 | 2,500 | |||
Land and Land Improvements | North [Member] | |||||
Total assets | |||||
Inventory Write-down | 2,700 | ||||
Land and Land Improvements | Mid-Atlantic [Member] | |||||
Total assets | |||||
Inventory Write-down | 10,300 | ||||
Land and Land Improvements | Pacific [Member] | |||||
Total assets | |||||
Inventory Write-down | $ 2,200 | $ 2,200 |
Supplemental Disclosure to Co_3
Supplemental Disclosure to Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | |
Cash flow information: | ||||
Income tax paid – net | $ 291,196 | $ 131,658 | ||
Noncash activity: | ||||
Cost of inventory acquired through seller financing, municipal bonds, or included in accrued expenses - net | 110,759 | 180,576 | ||
Accrued treasury share purchases | 0 | 8,003 | ||
Transfer of other assets to investment in unconsolidated entities - net | 2,765 | 55,202 | ||
Transfer of other assets to property, construction and office equipment - net | 12,268 | 0 | ||
Unrealized (loss) gain on derivatives | (11,796) | 23,731 | ||
Cash, cash equivalents, and restricted cash | ||||
Cash and cash equivalents | 761,945 | 535,038 | $ 1,346,754 | |
Restricted cash included in receivables, prepaid expenses, and other assets | 47,716 | 52,863 | ||
Total cash, cash equivalents, and restricted cash shown on the Condensed Consolidated Statements of Cash Flows | $ 809,661 | $ 587,901 | $ 1,398,550 | $ 1,684,412 |