10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2013

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-9186

TOLL BROTHERS, INC.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	23-2416878 (I.R.S. Employer Identification No.)
250 Gibraltar Road, Horsham, Pennsylvania (Address of principal executive offices)	19044 (Zip Code)

(215) 938-8000

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “an accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Check one):

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

At March 4, 2013, there were approximately 169,162,000 shares of Common Stock, $.01 par value, outstanding.

TOLL BROTHERS, INC.

TABLE OF CONTENTS

	Page No.
Statement on Forward-Looking Information	1
PART I. Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets (Unaudited)	2
Condensed Consolidated Statements of Operations (Unaudited)	3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	3
Condensed Consolidated Statements of Cash Flows (Unaudited)	4
Notes to Condensed Consolidated Financial Statements (Unaudited)	5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3. Quantitative and Qualitative Disclosures About Market Risk	41
Item 4. Controls and Procedures	42
PART II. Other Information
Item 1. Legal Proceedings	42
Item 1A. Risk Factors	43
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 6. Exhibits	44
SIGNATURES	45

STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission ( “SEC”) (as well as information included in oral statements or other written statements made or to be made by us) contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these statements by the fact that they do not relate to matters of strictly historical or factual nature and generally discuss or relate to estimates or other expectations regarding future events. They contain words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” “should” and other words or phrases of similar meaning in connection with any discussion of future operating or financial performance. Such statements may include, but are not limited to, information related to: anticipated operating results; home deliveries; financial resources and condition; changes in revenues; changes in profitability; changes in margins; changes in accounting treatment; cost of revenues; selling, general and administrative expenses; interest expense; inventory write-downs; unrecognized tax benefits; anticipated tax refunds; sales paces and prices; effects of home buyer cancellations; growth and expansion; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; the ability to acquire land and pursue real estate opportunities; the ability to gain approvals and to open new communities; the ability to sell homes and properties; the ability to deliver homes from backlog; the ability to secure materials and subcontractors; the ability to produce the liquidity and capital necessary to expand and take advantage of opportunities; and legal proceedings and claims.

Any or all of the forward-looking statements included in this report and in any other reports or public statements made by us are not guarantees of future performance and may turn out to be inaccurate. Consequently, actual results may differ materially from those that might be anticipated from our forward looking statements. Therefore, we caution you not to place undue reliance on our forward-looking statements. The factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among others: local, regional, national, and international economic conditions; fluctuating consumer demand and confidence; interest and unemployment rates; changes in sales conditions, including home prices, in the markets where we build homes; conditions in our newly entered markets and newly acquired operations; the competitive environment in which we operate; the availability and cost of land for future growth; conditions that could result in inventory write-downs or write-downs associated with investments in unconsolidated entities; the ability to recover our deferred tax assets; the availability of capital; uncertainties in the capital and securities markets; liquidity in the credit markets; changes in tax laws and their interpretation; effects of governmental legislation and regulation; the outcome of various legal proceedings; the availability of adequate insurance at reasonable cost; the impact of construction defect, product liability and home warranty claims, including the adequacy of self-insurance accruals and the applicability and sufficiency of our insurance coverage; the ability of home buyers to obtain financing for the purchase of homes; the ability of customers to sell their existing homes; the ability of the participants in various joint ventures to honor their commitments; the availability and cost of labor and building and construction materials; the cost of raw materials; construction delays; domestic and international political events; and weather conditions. This statement is provided as permitted by the Private Securities Litigation Reform Act of 1995.

Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our most recent annual report on Form 10-K with the Securities and Exchange Commission.

When this report uses the words “we,” “us,” “our,” and the “Company,” they refer to Toll Brothers, Inc. and its subsidiaries, unless the context otherwise requires. References herein to “fiscal 2012,” “fiscal 2011,” “fiscal 2010,” “fiscal 2009,” and “fiscal 2008” refer to our fiscal years ending October 31, 2012, October 31, 2011, October 31, 2010, October 31, 2009, and October 31, 2008, respectively.

1

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

	January 31, 2013			October 31, 2012
	(unaudited)
ASSETS
Cash and cash equivalents	$	368,756		$	778,824
Marketable securities	424,819			439,068
Restricted cash	33,757			47,276
Inventory	4,155,047			3,761,187
Property, construction and office equipment, net	112,877			109,971
Receivables, prepaid expenses and other assets	152,881			144,558
Mortgage loans held for sale	49,400			86,386
Customer deposits held in escrow	31,301			29,579
Investments in and advances to unconsolidated entities	321,851			330,617
Investments in distressed loans	42,832			37,169
Investments in foreclosed real estate	68,764			58,353
Deferred tax assets, net of valuation allowances	355,966			358,056
	$	6,118,251		$	6,181,044
LIABILITIES AND EQUITY
Liabilities
Loans payable	$	93,314		$	99,817
Senior notes	2,021,897			2,080,463
Mortgage company warehouse loan	43,464			72,664
Customer deposits	156,758			142,977
Accounts payable	110,791			99,911
Accrued expenses	467,652			476,350
Income taxes payable	83,265			80,991
Total liabilities	2,977,141			3,053,173
Equity
Stockholders’ equity
Preferred stock, none issued
Common stock, 169,159 and 168,690 shares issued at January 31, 2013 and October 31, 2012, respectively	1,692			1,687
Additional paid-in capital	412,242			404,418
Retained earnings	2,725,829			2,721,397
Treasury stock, at cost — 1 and 53 shares at January 31, 2013 and October 31, 2012, respectively	(38		)	(983		)
Accumulated other comprehensive loss	(4,803		)	(4,819		)
Total stockholders’ equity	3,134,922			3,121,700
Noncontrolling interest	6,188			6,171
Total equity	3,141,110			3,127,871
	$	6,118,251		$	6,181,044

See accompanying notes

2

TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

	Three months ended January 31,
	2013		2012
Revenues	$	424,601	$	321,955
Cost of revenues	345,937		271,608
Selling, general and administrative	78,047		69,637
	423,984		341,245
Income (loss) from operations	617		(19,290		)
Other:
Income from unconsolidated entities	3,083		6,687
Other income - net	4,626		6,195
Income (loss) before income taxes	8,326		(6,408		)
Income tax provision (benefit)	3,894		(3,622		)
Net income (loss)	$	4,432	$	(2,786	)
Income (loss) per share:
Basic	$	0.03	$	(0.02	)
Diluted	$	0.03	$	(0.02	)
Weighted average number of shares:
Basic	169,064		166,311
Diluted	171,903		166,311

See accompanying notes

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Amounts in thousands)

(Unaudited)

	Three months ended January 31,
	2013			2012
Net income (loss)	$	4,432		$	(2,786	)
Other comprehensive income (loss), net of tax:
Change in pension liability	(173		)	(109		)
Change in fair value of available-for-sale securities	96			243
Unrealized income (loss) on derivative held by equity investee	93			(795		)
Other comprehensive income (loss)	16			(661		)
Total comprehensive income (loss)	$	4,448		$	(3,447	)

See accompanying notes

3

TOLL BROTHERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

	Three months ended January 31,
	2013			2012
Cash flow used in operating activities:
Net income (loss)	$	4,432		$	(2,786	)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	6,525			5,229
Stock-based compensation	5,684			5,626
Income from unconsolidated entities	(3,083		)	(6,687		)
Distributions of earnings from unconsolidated entities	2,413			872
Income from distressed loans and foreclosed real estate	(3,011		)	(4,138		)
Deferred tax provision (benefit)	2,306			(1,246		)
Deferred tax valuation allowances	(216		)	1,246
Inventory impairments and write-offs	709			8,120
Change in fair value of mortgage loans receivable and derivative instruments	554			346
Gain on marketable securities				(39		)
Changes in operating assets and liabilities
Increase in inventory	(378,715		)	(108,468		)
Origination of mortgage loans	(141,148		)	(120,662		)
Sale of mortgage loans	176,830			146,895
Decrease (increase) in restricted cash	13,519			(28,481		)
(Increase) decrease in receivables, prepaid expenses and other assets	(8,256		)	11,781
Increase in customer deposits	12,059			3,230
Increase (decrease) in accounts payable and accrued expenses	1,302			(67,127		)
Increase (decrease) in income taxes payable	2,274			(5,790		)
Net cash used in operating activities	(305,822		)	(162,079		)
Cash flow provided by (used in) investing activities:
Purchase of property and equipment — net	(5,391		)	(3,392		)
Purchase of marketable securities	(26,019		)
Sale and redemption of marketable securities	38,775			88,217
Investments in and advances to unconsolidated entities	(7,614		)	(71,784		)
Return of investments in unconsolidated entities	17,311			15,333
Investments in distressed loans and foreclosed real estate	(16,252		)	(26,410		)
Return of investments in distressed loans and foreclosed real estate	3,015			3,702
Acquisition of a business				(144,746		)
Net cash provided by (used in) investing activities	3,825			(139,080		)
Cash flow used in financing activities:
Proceeds from loans payable	244,830			199,139
Principal payments of loans payable	(299,862		)	(237,896		)
Redemption of senior notes	(59,068		)
Proceeds from stock-based benefit plans	6,108			9,334
Purchase of treasury stock	(79		)	(64		)
Net cash used in financing activities	(108,071		)	(29,487		)
Net decrease in cash and cash equivalents	(410,068		)	(330,646		)
Cash and cash equivalents, beginning of period	778,824			906,340
Cash and cash equivalents, end of period	$	368,756		$	575,694

See accompanying notes

4

TOLL BROTHERS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company”), a Delaware corporation, and those majority-owned subsidiaries it controls. 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 the Company has effective control of the entity, in which case the entity would be consolidated.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The October 31, 2012 balance sheet amounts and disclosures included herein have been derived from the Company’s October 31, 2012 audited financial statements. Since the accompanying condensed consolidated financial statements do not include all the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements, the Company suggests that they be read in conjunction with the consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended October 31, 2012. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of January 31, 2013, the results of its operations for the three-month periods ended January 31, 2013 and 2012, and its cash flows for the three-month periods ended January 31, 2013 and 2012. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-05, “Statement of Comprehensive Income” (“ASU 2011-05”), which requires entities to present comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. ASU 2011-05 was effective for our fiscal year beginning November 1, 2012. The adoption of this guidance, which related to presentation only, did not have an impact on the Company’s consolidated financial position, results of operations or cash flows but did require a change in the presentation of the Company’s comprehensive income from the notes of the condensed consolidated financial statements to the face of the condensed consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" ("ASU 2013-02"). ASU 2013-02 requires entities to present information about reclassification adjustments from accumulated other comprehensive income in their financial statements in a single note or on the face of the financial statements. The adoption of this guidance, which relates to presentation only, is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. ASU 2013-02 will be effective for the Company’s fiscal quarter beginning February 1, 2013.

Reclassification

Certain prior year amounts have been reclassified to conform to the fiscal 2013 presentation.

2. Inventory

Inventory at January 31, 2013 and October 31, 2012 consisted of the following (amounts in thousands):

	January 31, 2013		October 31, 2012
Land controlled for future communities	$	54,521	$	56,300
Land owned for future communities	1,253,102		1,040,373
Operating communities	2,847,424		2,664,514
	$	4,155,047	$	3,761,187

5

Operating communities include communities offering homes for sale, communities that have sold all available home sites but have not completed delivery of the homes, communities that were previously offering homes for sale but are temporarily closed due to business conditions or non-availability of improved home sites and that are expected to reopen within twelve months of the end of the fiscal period being reported on, and communities preparing to open for sale. The carrying value attributable to operating communities includes the cost of homes under construction, land and land development costs, the carrying cost of home sites in current and future phases of these communities and the carrying cost of model homes.

Communities that were previously offering homes for sale but are temporarily closed due to business conditions that do not have any remaining backlog and are not expected to reopen within twelve months of the end of the fiscal period being reported on have been classified as land owned for future communities.

Information regarding the classification, number and carrying value of these temporarily closed communities, as of the date indicated, is provided in the table below.

	January 31, 2013		October 31, 2012
Land owned for future communities:
Number of communities	24		40
Carrying value (in thousands)	$	159,931	$	240,307
Operating communities:
Number of communities	21		5
Carrying value (in thousands)	$	108,143	$	34,685

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable, for the periods indicated; these are shown in the table below (amounts in thousands).

	Three months ended January 31,
	2013		2012
Charge:
Land controlled for future communities	$	9	$	777
Land owned for future communities	—		918
Operating communities	700		6,425
	$	709	$	8,120

See Note 12, "Fair Value Disclosures", for information regarding the number of operating communities that the Company tested for potential impairment, the number of operating communities in which it recognized impairment charges, the amount of impairment charges recognized, and the fair values of those communities, net of impairment charges.

At January 31, 2013, the Company evaluated its land purchase contracts to determine if any of the selling entities were variable interest entities ("VIEs") and, if they were, whether the Company was the primary beneficiary of any of them. Under these land purchase contracts, the Company does not possess legal title to the land and its risk is generally limited to deposits paid to the sellers and the creditors of the sellers generally have no recourse against the Company. At January 31, 2013, the Company determined that 63 land purchase contracts, with an aggregate purchase price of $750.7 million, on which it had made aggregate deposits totaling $33.9 million, were VIEs, and that it was not the primary beneficiary of any VIE related to its land purchase contracts.

Interest incurred, capitalized and expensed, for the periods indicated, was as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Interest capitalized, beginning of period	$	330,581		$	298,757
Interest incurred	31,748			28,899
Interest expensed to cost of revenues	(19,974		)	(16,321		)
Write-off against other income	(88		)
Interest capitalized on investments in unconsolidated entities	(1,363		)
Interest capitalized, end of period	$	340,904		$	311,335

6

Inventory impairment charges are recognized against all inventory costs of a community, such as land, land improvements, cost of home construction and capitalized interest. The amounts included in the table directly above reflect the gross amount of capitalized interest without allocation of any impairment charges recognized. The Company estimates that, had inventory impairment charges been allocated on a pro-rata basis to the individual components of inventory, capitalized interest at January 31, 2013 and 2012 would have been reduced by approximately $46.2 million and $53.9 million, respectively.

3. Investments in and Advances to Unconsolidated Entities

The Company has investments in and advances to various unconsolidated entities. At January 31, 2013, the Company had investments in and advances to various unconsolidated entities of $321.9 million, and was committed to invest or advance $91.9 million to these entities if they require additional funding. At January 31, 2013, the Company had accrued $2.2 million of aggregate exposure with respect to its estimated obligations to unconsolidated entities in which it has an investment. More information regarding its investments in, advances to and future commitments to these entities is provided below.

At January 31, 2013, the Company determined that two of its joint ventures were VIEs under the guidance within FASB Accounting Standards Codification ("ASC") 810, "Consolidation". However, the Company concluded that it was not the primary beneficiary of the VIEs because the power to direct the activities of these VIEs that most significantly impact their performance was shared by the Company and the VIEs' other members. Business plans, budgets and other major decisions are required to be unanimously approved by all members. Management and other fees earned by the Company are nominal and believed to be at market rates and there is no significant economic disproportionality between the Company and other members.

The Company’s investments in these entities are accounted for using the equity method of accounting.

Development Joint Ventures

The Company has investments in and advances to a number of joint ventures with unrelated parties to develop land (“Development Joint Ventures”). Some of these Development Joint Ventures develop land for the sole use of the venture participants, including the Company, and others develop land for sale to the joint venture participants and to unrelated builders. The Company recognizes its share of earnings from the sale of home sites by the Development Joint Ventures to other builders. With regard to home sites the Company purchases from the Development Joint Ventures, the Company reduces its cost basis in those home sites by its share of the earnings on the home sites it purchases. At January 31, 2013, the Company had approximately $106.4 million invested in or advanced to the Development Joint Ventures. In addition, at January 31, 2013, the Company had a funding commitment of $13.5 million to two Development Joint Ventures which would be funded if additional investment in the ventures is required.

The Company has a 50% interest in a joint venture that is developing over 2,000 home sites in Orange County, California on land that it owns. Under the terms of the operating agreement, the Company will acquire 266 home sites in the first phase of the property from the joint venture. The Company intends to acquire approximately 545 additional home sites from the joint venture. The Company has a commitment to provide up to $10 million of additional funds to this joint venture, if needed. The joint venture has an $80 million credit facility from a bank to fund the development of the property; at January 31, 2013, the venture had $50.7 million borrowed under the facility. The Company executed a limited completion and a limited repayment guarantee under the loan agreement. The obligations under the guarantees are joint and several and contain a right of contribution agreement of each partner.

Planned Community Joint Venture

The Company entered into a joint venture in October 2008 for the development and sale of homes in a master planned community. At January 31, 2013, the Company had an investment of $31.6 million in this joint venture. At January 31, 2013, the participants agreed to contribute additional funds of up to $8.3 million each, if required.

Other Joint Ventures

At January 31, 2013, the Company had an aggregate of $143.4 million of investments in and advances to various joint ventures with unrelated parties to develop luxury for-sale and rental residential units, commercial space and a hotel. At At January 31, 2013, the Company had $70.1 million of funding commitments to three of these joint ventures. Several of the joint ventures expect to finance future construction with external financing. In addition, the Company has guaranteed approximately $11.9 million of joint venture liabilities, including approximately $9.8 million of payments related to a ground lease.

Toll Brothers Realty Trust and Trust II

In fiscal 2005, the Company, together with the Pennsylvania State Employees Retirement System (“PASERS”), formed Toll Brothers Realty Trust II (“Trust II”) to be in a position to invest in commercial real estate opportunities. Trust II is owned 50%

7

by the Company and 50% by an affiliate of PASERS. At January 31, 2013, the Company had an investment of $3.0 million in Trust II. Prior to the formation of Trust II, the Company formed Toll Brothers Realty Trust (“Trust”) in 1998 to invest in commercial real estate opportunities. The Trust is effectively owned one-third by the Company; one-third by Robert I. Toll, Bruce E. Toll (and members of his family), Douglas C. Yearley, Jr. and former members of the Company’s senior management; and one-third by an affiliate of PASERS (collectively, the “Shareholders”). As of January 31, 2013, the Company had a net investment in the Trust of $20 thousand. The Company provides development, finance and management services to the Trust and recognized fees under the terms of various agreements in the amounts of $0.6 million and $0.5 million in the three-month periods ended January 31, 2013 and 2012, respectively.

Structured Asset Joint Venture

The Company, through Gibraltar Capital and Asset Management LLC (“Gibraltar”), is a 20% participant with two unrelated parties that purchased a 40% interest in an entity that owns and controls a portfolio of loans and real estate (“Structured Asset Joint Venture”). At January 31, 2013, the Company had an investment of $37.5 million in this Structured Asset Joint Venture. At January 31, 2013, the Company did not have any commitments to make additional contributions to this Structured Asset Joint Venture and has not guaranteed any of the joint venture’s liabilities.

The condensed consolidated balance sheets, as of the dates indicated, and the condensed consolidated statements of operations, for the periods indicated, for the Company’s unconsolidated entities in which it has an investment, aggregated by type of business, are included below (in thousands). The column titled "Home Building Joint Ventures" includes the Planned Community and Other Joint Ventures described above.

Condensed Balance Sheets:

	January 31, 2013
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture		Total
Cash and cash equivalents	$	21,573	$	33,450	$	10,166		$	63,753	$	128,942
Inventory	263,743		310,002		5,676					579,421
Non-performing loan portfolio								185,142		185,142
Rental properties					170,406					170,406
Real estate owned (“REO”)					1,036			261,237		262,273
Other assets (1)	10,389		71,319		9,030			277,305		368,043
Total assets	$	295,705	$	414,771	$	196,314		$	787,437	$	1,694,227
Debt (1)	$	121,435	$	33,859	$	194,439		$	311,801	$	661,534
Other liabilities	14,174		8,225		5,348			501		28,248
Members’ equity (deficit)	160,096		372,687		(3,473		)	190,054		719,364
Noncontrolling interest								285,081		285,081
Total liabilities and equity	$	295,705	$	414,771	$	196,314		$	787,437	$	1,694,227
Company’s net investment in unconsolidated entities (2)	$	106,368	$	174,967	$	2,982		$	37,534	$	321,851

8

	October 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture		Total
Cash and cash equivalents	$	17,189	$	40,126	$	11,005		$	44,176	$	112,496
Inventory	255,561		294,724		5,643					555,928
Non-performing loan portfolio								226,315		226,315
Rental properties					173,767					173,767
Real estate owned (“REO”)								254,250		254,250
Other assets (1)	12,427		72,301		9,182			237,476		331,386
Total assets	$	285,177	$	407,151	$	199,597		$	762,217	$	1,654,142
Debt (1)	$	96,862	$	34,184	$	195,359		$	311,801	$	638,206
Other liabilities	13,890		5,707		5,202			561		25,360
Members’ equity (deficit)	174,425		367,260		(964		)	179,942		720,663
Noncontrolling interest								269,913		269,913
Total liabilities and equity	$	285,177	$	407,151	$	199,597		$	762,217	$	1,654,142
Company’s net investment in unconsolidated entities (2)	$	116,452	$	173,465	$	3,357		$	37,343	$	330,617

(1) Included in other assets of the Structured Asset Joint Venture at January 31, 2013 and October 31, 2012 is $277.3 million and $237.5 million, respectively, of restricted cash held in a defeasance account which will be used to repay debt of the Structured Asset Joint Venture.

(2) Differences between the Company’s net investment in unconsolidated entities and its underlying equity in the net assets of the entities is primarily a result of the acquisition price of an investment in an entity in fiscal 2012 which was in excess of the Company's pro-rata share of the underlying equity, impairments related to the Company’s investments in unconsolidated entities, a loan made to one of the entities by the Company, and distributions from entities in excess of the carrying amount of the Company’s net investment.

9

Condensed Statements of Operations and Comprehensive Income (Loss):

	For the three months ended January 31, 2013
	Develop- ment Joint Ventures			Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture			Total
Revenues	$	1,627		$	8,970	$	9,682		$	9,705		$	29,984
Cost of revenues	1,219			7,105		4,293			10,338			22,955
Other expenses	191			193		5,766			1,058			7,208
Total expenses—net	1,410			7,298		10,059			11,396			30,163
Gain on disposition of loans and REO									26,892			26,892
Income (loss) from operations	217			1,672		(377		)	25,201			26,713
Other income	3			19					79			101
Net income (loss) before noncontrolling interest	220			1,691		(377		)	25,280			26,814
Less: Net income attributable to noncontrolling interest									(15,168		)	(15,168		)
Net income (loss)	220			1,691		(377		)	10,112			11,646
Other comprehensive income						302						302
Total comprehensive income (loss)	$	220		$	1,691	$	(75	)	$	10,112		$	11,948
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	(98	)	$	843	$	425		$	1,913		$	3,083

	For the three months ended January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture			Total
Revenues	$	33,584	$	23,430	$	9,476		$	8,133		$	74,623
Cost of revenues	31,771		17,794		3,343			11,067			63,975
Other expenses	225		945		6,785			2,631			10,586
Total expenses—net	31,996		18,739		10,128			13,698			74,561
Loss on disposition of loans and REO								(44		)	(44		)
Income (loss) from operations	1,588		4,691		(652		)	(5,609		)	18
Other income	2,653		5					137			2,795
Net income (loss) before noncontrolling interest	4,241		4,696		(652		)	(5,472		)	2,813
Less: Net loss attributable to noncontrolling interest								3,283			3,283
Net income (loss)	4,241		4,696		(652		)	(2,189		)	6,096
Other comprehensive loss					(447		)				(447		)
Total comprehensive income (loss)	$	4,241	$	4,696	$	(1,099	)	$	(2,189	)	$	5,649
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	1,996	$	4,520	$	623		$	(452	)	$	6,687

(3) Differences between the Company’s equity in earnings (losses) of unconsolidated entities and the Company's percentage interest in the underlying net income (loss) of the entities is primarily a result of impairments related to the Company’s investment in unconsolidated entities, distributions from entities in excess of the carrying amount of the Company’s net investment, and the Company’s share of the entities’ profits related to home sites purchased by the Company which reduces the Company’s cost basis of the home sites.

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4. Investments in Distressed Loans and Foreclosed Real Estate

Investments in Distressed Loans

The Company’s investment in distressed loans consisted of the following as of the dates indicated (amounts in thousands):

	January 31, 2013			October 31, 2012
Unpaid principal balance	$	91,339		$	99,693
Discount on acquired loans	(48,507		)	(62,524		)
Carrying value	$	42,832		$	37,169

The Company's investment in distressed loans includes performing loans and non-performing loans and also includes investments in loan participations classified as secured borrowings under ASC 860, "Transfers and Servicing".

For acquired distressed loans where it is probable that the Company will collect less than the contractual amounts due under the terms of the loan based, at least in part, on the assessment of the credit quality of the borrowers, the loans are accounted for under ASC Topic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality" ("ASC 310-30"). Under ASC 310-30, provided the Company does not presently have the intention to utilize real estate secured by the loans for use in its operations or to significantly improve the collateral for resale, the amount by which the future cash flows expected to be collected at the acquisition date exceeds the estimated fair value of the loan, or accretable yield, is recognized in other income - net over the estimated remaining life of the loan using a level yield methodology . The difference between the contractually required payments of the loan as of the acquisition date and the total cash flows expected to be collected, or nonaccretable difference, is not recognized.

The Company may acquire distressed loans where it has determined that (1) it is possible to collect all contractual amounts due under the terms of the loan, (2) it expects to utilize the real estate secured by the loans in its operations, or (3) forecasted cash flows cannot be reasonably estimated. For non-performing loans acquired meeting these conditions, in accordance with ASC 310-10, "Receivable," the loans are classified as nonaccrual and interest income is not recognized. When a loan is classified as nonaccrual, any subsequent cash receipt is accounted for using the cost recovery method. For performing loans, payments are applied to principal and interest in accordance with the terms of the loan when received. As of January 31, 2013, the Company had investments in performing and non-performing loans, accounted for in accordance with ASC 310-10, of $14.0 million and $6.0 million, respectively. At October 31, 2012, the Company had investments in non-performing loans of $9.2 million. The Company had no investments in performing loans at October 31, 2012.

In the three months ended January 31, 2013, Gibraltar purchased distressed loans for approximately $16.1 million. The purchases included performing and non-performing loans secured by retail shopping centers, residential land and golf courses located in seven states.

The following table summarizes, for the distressed loans acquired in the three months ended January 31, 2012 that were accounted for in accordance with ASC 310-30, the accretable yield and the nonaccretable difference of the Company's investment in these loans as of their acquisition date (amounts in thousands).

	Three months ended January 31,
	2012
Contractually required payments, including interest	$	52,524
Nonaccretable difference	(5,125		)
Cash flows expected to be collected	47,399
Accretable yield	(20,514		)
Non-performing loans carrying amount	$	26,885

There were no distressed loans purchased during the three months ended January 31, 2013 that met the requirements of ASC 310-30.

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The accretable yield activity for the Company’s investment in distressed loans accounted for under ASC 310-30 for the three-month periods ended January 31, 2013 and 2012 was as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	17,196		$	42,326
Loans acquired	—			20,514
Deletions	(2,387		)	(1,768		)
Accretion	(1,403		)	(3,228		)
Balance, end of period	$	13,406		$	57,844

Deletions primarily represent loan dispositions, which includes foreclosure of the underlying collateral and resulting removal of the loans from the accretable yield portfolios, and reclassifications from accretable yield to nonaccretable yield. The additions to nonaccretable yield and the accretion of interest income are based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to gather additional information regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in the three-month periods ended January 31, 2013 and 2012 is not necessarily indicative of expected future results.

Real Estate Owned (REO)

The following table presents the activity in REO for the three-month periods ended January 31, 2013 and 2012 (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	58,353		$	5,939
Additions	11,040			1,164
Sales	(439		)	(615		)
Impairments	(15		)
Depreciation	(175		)
Balance, end of period	$	68,764		$	6,488

As of January 31, 2013, approximately $5.9 million and $62.8 million of REO was classified as held-for-sale and held-and-used, respectively. As of January 31, 2012, approximately $1.3 million and $5.2 million of REO was classified as held-for-sale and held-and-used, respectively. For the three-month period ended January 31, 2013, the Company recorded gains of $0.6 million from acquisitions of REO through foreclosure. There were no gains or losses recorded in the three-month period ended January 31, 2012 from REO conversions.

General

The Company’s earnings from Gibraltar's operations, excluding its investment in the Structured Asset Joint Venture, are included in other income - net in its Condensed Consolidated Statements of Operations. In the three-month periods ended January 31, 2013 and 2012, the Company recognized $0.2 million and $2.1 million of earnings, respectively, from Gibraltar's operations.

5. Senior Notes and Mortgage Company Loan Facilities

Senior Notes

At January 31, 2013, the Company had 7 issues of its Senior Notes outstanding with an aggregate principal amount of $2.03 billion.

In November 2012, the Company repaid the $59.1 million of its outstanding 6.875% Senior Notes due November 15, 2012.

Mortgage Company Loan Facilities

In July 2012, TBI Mortgage Company (“TBI Mortgage”), the Company's wholly-owned mortgage subsidiary, amended its Master Repurchase Agreement (the “Repurchase Agreement”) with Comerica Bank. The purpose of the Repurchase Agreement is to finance the origination of mortgage loans by TBI Mortgage and it is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” The Repurchase Agreement, as amended, provides for loan purchases of up to $50 million, subject

12

to certain sublimits. In addition, the Repurchase Agreement provides for an accordion feature under which TBI Mortgage may request that the aggregate commitments under the Repurchase Agreement be increased to an amount up to $75 million for a short period of time. The Repurchase Agreement, as amended, expires on July 23, 2013 and bears interest at LIBOR plus 2.00% per annum, with a minimum rate of 3.00%.

6. Accrued Expenses

Accrued expenses at January 31, 2013 and October 31, 2012 consisted of the following (amounts in thousands):

	January 31, 2013		October 31, 2012
Land, land development and construction	$	119,804	$	124,731
Compensation and employee benefit	94,627		111,093
Insurance and litigation	102,135		101,908
Commitments to unconsolidated entities	2,164		2,135
Warranty	41,241		41,706
Interest	38,366		28,204
Other	69,315		66,573
	$	467,652	$	476,350

The Company accrues for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Warranty costs are accrued based upon historical experience. The table below provides, for the periods indicated, a reconciliation of the changes in the Company’s warranty accrual (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	41,706		$	42,474
Additions – homes closed during the period	2,289			1,871
Addition – liabilities acquired				731
(Decrease) increase in accruals for homes closed in prior periods	(267		)	1,783
Charges incurred	(2,487		)	(3,750		)
Balance, end of period	$	41,241		$	43,109

7. Income Taxes

The tables below provide, for the periods indicated, reconciliations of the Company’s effective tax rate from the federal statutory tax rate (amounts in thousands).

	Three months ended January 31,
	2013				2012
	$		%*		$		%*
Federal tax provision (benefit) at statutory rate	2,914		35.0		(2,243	)	35.0
State tax provision (benefit), net of federal provision (benefit)	346		4.2		(271	)	4.2
Increase in unrecognized tax benefits					1,500		(23.4	)
Reversal of accrual for uncertain tax positions					(5,279	)	82.4
Increase in deferred tax assets – net					(525	)	8.2
Valuation allowance – recognized					4,089		(63.8	)
Valuation allowance – reversed	(216	)	(2.6	)	(2,843	)	44.3
Accrued interest on anticipated tax assessments	1,166		14.0		1,950		(30.4	)
Other	(316	)	(3.8	)
Income tax provision (benefit)	3,894		46.8		(3,622	)	56.5

* Due to rounding, amounts may not add.

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The Company currently operates in 19 states and is subject to various state tax jurisdictions. The Company estimates its state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction and the Company’s ability to utilize certain tax-saving strategies. Based on the Company’s estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on the Company’s tax strategies, the Company estimated its rate for state income taxes at 6.4% and 6.5% for fiscal 2013 and 2012, respectively.

At October 31, 2012, the Company evaluated evidence related to the need for its deferred tax asset valuation allowances and determined that the valuation allowance on its federal deferred tax assets and certain state valuation allowances were no longer needed. Accordingly, in the fourth quarter of fiscal 2012, the Company reversed a valuation allowance in the amount of $394.7 million.

For state tax purposes, due to past and projected losses in certain jurisdictions where the Company does not have carryback potential and/or cannot sufficiently forecast future taxable income, the Company has recognized net cumulative valuation allowances against its state deferred tax assets of $56.8 million and $57.0 million as of January 31, 2013 and October 31, 2012, respectively.

8. Stock-Based Benefit Plans

The Company grants stock options, restricted stock and various types of restricted stock units to its employees and its non-employee directors. Beginning in fiscal 2012, the Company changed the mix of stock-based compensation to its employees (other then certain senior executives) by reducing the number of stock options it grants and, in their place, issued non-performance based restricted stock units ("RSUs") as a form of compensation. The Company also replaced its stock price-based restricted stock unit ("Stock Price-Based RSUs") awards for certain senior executives with a performance-based restricted stock (“Performance-Based RSUs”) award program. Additionally, the Company has an employee stock purchase plan that allows employees to purchase Company stock at a discount.

Information regarding the amount of total stock-based compensation expense and tax benefit recognized by the Company, for the periods indicated, is as follows (amounts in thousands):

	Three months ended January 31,
	2013		2012
Total stock-based compensation expense recognized	$	5,684	$	5,626
Income tax benefit recognized	$	2,079	$	2,061

At January 31, 2013 and October 31, 2012, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $32.6 million and $14.2 million, respectively.

Information about the Company’s more significant stock-based compensation programs is outlined below.

Stock Options

The fair value of each option award is estimated on the date of grant using a lattice-based option valuation model that uses assumptions noted in the following table. The lattice-based option valuation model incorporates ranges of assumptions for inputs, which are disclosed in the table below. Expected volatilities were based on implied volatilities from traded options on the Company’s stock, historical volatility of the Company’s stock and other factors. The expected lives of options granted were derived from the historical exercise patterns and anticipated future patterns and represent the period of time that options granted are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behaviors. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The weighted-average assumptions and the fair value used for stock option grants in fiscal 2013 and 2012 were as follows:

	2013	2012
Expected volatility	44.04%-48.13%	44.20% - 50.24%
Weighted-average volatility	46.70%	46.99%
Risk-free interest rate	0.64%-1.56%	0.78% - 1.77%
Expected life (years)	4.48-8.88	4.59 - 9.06
Dividends	none	none
Weighted-average grant date fair value per share of options granted	$13.05	$8.70

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Stock compensation expense, related to stock options, for the periods indicated, was as follows (amounts in thousands):

	2013		2012
Three months ended January 31,	$	3,475	$	3,522

Performance-Based Restricted Stock Units

In the first quarter of fiscal 2013, the Executive Compensation Committee of the Company’s Board of Directors ("Executive Compensation Committee") approved awards of Performance-Based RSUs relating to shares of the Company’s common stock to certain of its senior management. The Performance-Based RSUs are based on the attainment of certain performance metrics of the Company in fiscal 2013. The number of shares underlying the Performance-Based RSUs that will be issued to the recipients may range from 90% to 110% of the base award depending on actual performance as compared to the target performance goals. The Performance-Based RSUs vest over a four-year period provided the recipients continue to be employed by the Company or serve on the board of directors of the Company (as applicable) as specified in the award document.

The value of the Performance-Based RSUs was determined to be equal to the estimated number of shares of the Company’s common stock to be issued multiplied by the closing price of the Company’s common stock on the NYSE on the date the performance goals were approved by the Executive Compensation Committee. The Company evaluates the performance goals quarterly and estimates the number of shares underlying the Performance-Based RSUs that are probable of being issued. Information regarding the issuance, valuation assumptions and amortization of the Company’s Performance-Based RSUs issued in fiscal 2013 and 2012 is provided below.

	2013		2012
Estimated number of shares underlying Performance-Based RSUs to be issued	289,490		350,000
Closing price of the Company’s common stock on date performance goals were approved	$	37.78	$	20.50
Estimated aggregate fair value of Performance-Based RSUs to be issued (in thousands)	$	10,937	$	7,185
Performance-Based RSU expense recognized in the three months ended January 31, (in thousands):	$	514	$	936
Unamortized value of Performance-Based RSUs at January 31, (in thousands):	$	14,059	$	6,249

Stock Price-Based Restricted Stock Units

Information regarding the amortization of the Company’s Stock Price-Based RSUs, for the periods indicated, is provided below (amounts in thousands).

	2013		2012
Three months ended January 31,	$	562	$	848

Information regarding the aggregate number of outstanding Stock Price-Based RSUs and aggregate unamortized value of the outstanding Stock Price-Based RSUs, as of the date indicated, is provided below.

	January 31, 2013		October 31, 2012
Aggregate outstanding Stock Price-Based RSUs	306,000		506,000
Cumulative unamortized value of Stock Price-Based RSUs (in thousands)	$	1,480	$	2,042

In December 2012, the Company issued and distributed 200,000 shares of stock pursuant to a Stock Price-Based RSU award.

Non-Performance Based Restricted Stock Units

The Company issued RSUs to various officers, employees and non-employee directors. The value of the RSUs was determined to be equal to the number of shares of the Company’s common stock to be issued pursuant to the RSUs, multiplied by the closing price of the Company’s common stock on the NYSE on the date the RSUs were awarded. Information regarding these RSUs issued in the three months ended January 31, 2013 and 2012 is as follows:

15

	2013		2012
Number of RSUs issued	94,080		107,820
Closing price of the Company’s common stock on date of issuance	$	32.22	$	20.50
Aggregate fair value of RSUs issued (in thousands)	$	3,031	$	2,210

Information regarding the amortization of the Company’s RSUs, for the periods indicated, is as follows (amounts in thousands):

	2013		2012
Three months ended January 31,	$	1,112	$	314

Information regarding the aggregate number of outstanding RSUs and aggregate unamortized value of the outstanding RSUs, as of the date indicated, is as follows:

	January 31, 2013		October 31, 2012
Aggregate outstanding RSUs	230,214		137,764
Cumulative unamortized value of RSUs (in thousands)	$	3,209	$	1,326

9. Employee Retirement Plans

The Company has two unfunded supplemental retirement plans (“SERPs”). The table below provides, for the periods indicated, costs recognized and payments made related to its SERPs (amounts in thousands):

	Three months ended January 31,
	2013		2012
Service cost	$	118	$	97
Interest cost	261		303
Amortization of prior service obligation	210		184
Amortization of unrecognized losses	36		17
Total costs	$	625	$	601
Benefits paid	$	233	$	115

10. Stock Repurchase Program

In March 2003, the Company’s Board of Directors authorized the repurchase of up to 20 million shares of its common stock, par value $.01, from time to time, in open market transactions or otherwise, for the purpose of providing shares for its various employee benefit plans. The table below provides, for the periods indicated, information about the Company’s share repurchase program.

	Three months ended January 31,
	2013		2012
Number of shares purchased	3,000		3,000
Average price per share	$	32.59	$	20.61
Remaining authorization at January 31 (in thousands):	8,764		8,783

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11. Income (Loss) per Share Information

The table below provides, for the periods indicated, information pertaining to the calculation of income (loss) per share, common stock equivalents, weighted-average number of anti-dilutive options and shares issued (amounts in thousands):

	Three months ended January 31,
	2013	2012
Basic weighted-average shares (a)	169,064	166,311
Common stock equivalents (b)	2,839
Diluted weighted-average shares	171,903	166,311
Other information:
Common stock equivalents excluded from diluted weighted-average shares due to anti-dilutive effect (b)		796
Weighted-average number of anti-dilutive options (c)	980	6,727
Shares issued under stock incentive and employee stock purchase plans	523	942

(a) Basic weighted-average shares included the weighted-average number of shares outstanding for the period and vested shares issuable under restricted stock unit awards.

(b) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options and unvested shares issuable under restricted stock unit awards whose performance criteria, if any, have been met and are expected to be issued, using the treasury stock method. 5.9 million shares issuable upon the conversion of the Company's 0.5% Exchangeable Senior Notes are excluded from the calculation of diluted earnings per share because they are anti-dilutive.

(c) Based upon the average closing price of the Company’s common stock on the NYSE for the period.

12. Fair Value Disclosures

Fair Value Disclosures

The Company uses ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), to measure the fair value of certain assets and liabilities. ASC 820 provides a framework for measuring fair value in accordance with GAAP, establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and requires certain disclosures about fair value measurements.

The fair value hierarchy is summarized below:

Level 1:	Fair value determined based on quoted prices in active markets for identical assets or liabilities.
Level 2:	Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.
Level 3:	Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.

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Financial Instruments

The table below provides, as of the date indicated, a summary of assets (liabilities) related to the Company’s financial instruments, measured at fair value on a recurring basis (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	January 31, 2013			October 31, 2012
Corporate Securities	Level 2	$	246,487		$	260,772
Certificates of Deposit	Level 2	$	148,105		$	148,112
Short-Term Tax-Exempt Bond Fund	Level 1	$	30,227		$	30,184
Residential Mortgage Loans Held for Sale	Level 2	$	49,400		$	86,386
Forward Loan Commitments—Residential Mortgage Loans Held for Sale	Level 2	$	649		$	(102	)
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	(1,345	)	$	(202	)
Forward Loan Commitments—IRLCs	Level 2	$	1,345		$	202

At January 31, 2013 and October 31, 2012, the carrying value of cash and cash equivalents and restricted cash approximated fair value.

Mortgage Loans Held for Sale

The table below provides, as of the date indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale (amounts in thousands):

	Aggregate unpaid principal balance		Fair value		Excess
At January 31, 2013	$	49,304	$	49,400	$	96
At October 31, 2012	$	84,986	$	86,386	$	1,400

At the end of the reporting period, the Company determines the fair value of its mortgage loans held for sale and the forward loan commitments it has entered into as a hedge against the interest rate risk of its mortgage loans using the market approach to determine fair value. The evaluation is based on the current market pricing of mortgage loans with similar terms and values as of the reporting date and by applying such pricing to the mortgage loan portfolio. The Company recognizes the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, the Company recognizes the fair value of its forward loan commitments as a gain or loss. These gains and losses are included in other income - net. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan and is included in other income - net.

IRLCs represent individual borrower agreements that commit the Company to lend at a specified price for a specified period as long as there is no violation of any condition established in the commitment contract. These commitments have varying degrees of interest rate risk. The Company utilizes best-efforts forward loan commitments (“Forward Commitments”) to hedge the interest rate risk of the IRLCs and residential mortgage loans held for sale. Forward Commitments represent contracts with third-party investors for the future delivery of loans whereby the Company agrees to make delivery at a specified future date at a specified price. The IRLCs and Forward Commitments are considered derivative financial instruments under ASC 815, “Derivatives and Hedging,” which requires derivative financial instruments to be recorded at fair value. The Company estimates the fair value of such commitments based on the estimated fair value of the underlying mortgage loan and, in the case of IRLCs, the probability that the mortgage loan will fund within the terms of the IRLC. To manage the risk of non-performance of investors regarding the Forward Commitments, the Company assesses the credit worthiness of the investors on a periodic basis.

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Marketable Securities

The table below provides, as of the date indicated, the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of marketable securities (amounts in thousands):

	January 31, 2013			October 31, 2012
Amortized cost	$	424,387		$	438,755
Gross unrealized holding gains	552			451
Gross unrealized holding losses	(120		)	(138		)
Fair value	$	424,819		$	439,068

The estimated fair values of corporate securities and certificates of deposit are based on quoted prices provided by brokers. The remaining contractual maturities of marketable securities as of January 31, 2013 ranged from 1 month to 23 months.

Inventory

The Company recognizes inventory impairment charges based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. The fair value of the aforementioned inventory was determined using Level 3 criteria. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. See Note 1, “Significant Accounting Policies, Inventory” in the Company's Annual Report on Form 10-K for additional information regarding the Company’s methodology on determining fair value. As further discussed in Note 1 in the Company's Annual Report on Form 10-K, determining the fair value of a community's inventory involves a number of variables, many of which are interrelated. If the Company used a different input for any of the various unobservable inputs used in its impairment analysis, the results of the analysis may have been different, absent any other changes. The table below summarizes, for the periods indicated, the ranges of certain quantitative unobservable inputs utilized in determining the fair value of impaired communities:

	Selling price per unit (in thousands)	Sales pace per year (in units)	Discount rate
Three months ended January 31, 2013	$303 - $307	15	15.3%
Three months ended October 31, 2012	$501 - $536	11	18.3%
Three months ended July 31, 2012	$175 - $571	4 - 12	14.0% - 17.5%
Three months ended April 30, 2012	$413 - $472	6 - 17	17.5%
Three months ended January 31, 2012	$344 - $2,287	1 - 25	13.0% - 18.8%

The table below provides, for the periods indicated, the fair value of operating communities whose carrying value was adjusted and the amount of impairment charges recognized ($ amounts in thousands):

		Impaired operating communities
Three months ended:	Number of communities tested	Number of communities	Fair value of communities, net of impairment charges		Impairment charges
Fiscal 2013:
January 31	60	2	$	5,377	$	700
					$	700
Fiscal 2012:
January 31	113	8	$	49,758	$	6,425
April 30	115	2	$	22,962	2,560
July 31	115	4	$	6,609	2,685
October 31	108	3	$	9,319	1,400
					$	13,070

19

Investments in Distressed Loans and REO

Gibraltar’s distressed loans were recorded at estimated fair value at inception based on the acquisition price as determined by Level 3 inputs and was based on the estimated future cash flows to be generated by the loans discounted at the rates used to value the loans at the acquisition dates. The table below provides, as of the date indicated, the carrying amount and estimated fair value of distressed loans (amounts in thousands):

	January 31, 2013		October 31, 2012
Carrying amount	$	42,832	$	37,169
Estimated fair value	$	44,065	$	38,109

Gibraltar's REO was recorded at estimated fair value at the time it was acquired through foreclosure or deed in lieu actions using Level 3 inputs. The valuation techniques used to estimate fair value are third-party appraisals, broker opinions of value, or internal valuation methodologies (which may include discounted cash flows, capitalization rate analysis or comparable transactional analysis). Unobservable inputs used in estimating the fair value of REO assets are based upon the best information available under the circumstances and take into consideration the financial condition and operating results of the asset, local market conditions, the availability of capital, interest and inflation rates and other factors deemed appropriate by management.

Debt

The table below provides, as of the date indicated, the book value and estimated fair value of the Company’s debt (amounts in thousands):

		January 31, 2013				October 31, 2012
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	Level 2	$	93,314	$	93,014	$	99,817	$	99,093
Senior notes (b)	Level 1	2,030,121		2,272,730		2,089,189		2,340,189
Mortgage company warehouse loan (c)	Level 2	43,464		43,464		72,664		72,664
		$	2,166,899	$	2,409,208	$	2,261,670	$	2,511,946

(a) The estimated fair value of loans payable was based upon their indicated market prices or the interest rates that the Company believed were available to it for loans with similar terms and remaining maturities as of the applicable valuation date.

(b) The estimated fair value of the Company’s senior notes is based upon their indicated market prices.

(c) The Company believes that the carrying value of its mortgage company warehouse loan borrowings approximates their fair value.

13. Other Income - Net

The table below provides, for the periods indicated, the components of other income - net (amounts in thousands):

	Three months ended January 31,
	2013		2012
Interest income	$	1,475	$	914
Income from ancillary businesses	1,278		1,083
Gibraltar	151		2,138
Management fee income	327		687
Retained customer deposits	678		654
Land sales, net	145
Other	572		719
Total other income - net	$	4,626	$	6,195

20

Income from ancillary businesses includes the activity of the Company’s non-core businesses which include its mortgage, title, landscaping, security monitoring and golf course and country club operations. The table below provides, for the periods indicated, revenues and expenses for the Company’s non-core ancillary businesses (amounts in thousands):

	Three months ended January 31,
	2013		2012
Revenue	$	16,641	$	13,813
Expense	$	15,363	$	12,730

14. Commitments and Contingencies

Legal Proceedings

The Company is involved in various claims and litigation arising principally in the ordinary course of business. The Company believes that adequate provision for resolution of all current claims and pending litigation has been made for probable losses and the disposition of these matters will not have a material adverse effect on the Company’s results of operations and liquidity or on its financial condition.

Investments in and Advances to Unconsolidated Entities

See Note 3, “Investments in and Advances to Unconsolidated Entities,” for more information regarding the Company’s commitments to these entities.

Land Purchase Commitments

Generally, the Company’s option and purchase agreements to acquire land parcels do not require the Company to purchase those land parcels, although the Company may, in some cases, forfeit any deposit balance outstanding if and when it terminates an option and purchase agreement. If market conditions are weak, approvals needed to develop the land are uncertain or other factors exist that make the purchase undesirable, the Company may not acquire the land. Whether an option and purchase agreement is legally terminated or not, the Company reviews the amount recorded for the land parcel subject to the option and purchase agreement to determine if the amount is recoverable. While the Company may not formally terminate the option and purchase agreements for those land parcels that it does not expect to acquire, it writes off any non-refundable deposits and costs previously capitalized to such land parcels in the periods that it determines such costs are not recoverable.

Information regarding the Company’s land purchase commitments, as of the date indicated, is provided in the table below (amounts in thousands):

	January 31, 2013		October 31, 2012
Aggregate purchase commitments:
Unrelated parties	$	973,052	$	742,918
Unconsolidated entities that the Company has investments in	65,805		4,067
Total	$	1,038,857	$	746,985
Deposits against aggregate purchase commitments	$	42,428	$	42,921
Additional cash required to acquire land	996,429		704,064
Total	$	1,038,857	$	746,985
Amount of additional cash required to acquire land in accrued expenses	$	574	$	4,328

In addition, the Company expects to purchase approximately 545 additional lots from a joint venture in which it has a 50% interest. The purchase price of the lots will be determined at a future date.

At January 31, 2013, the Company also had purchase commitments to acquire land for apartment developments of approximately $93.3 million.

The Company has additional land parcels under option that have been excluded from the aforementioned aggregate purchase amounts since it does not believe that it will complete the purchase of these land parcels and no additional funds will be required from the Company to terminate these contracts.

21

Surety Bonds and Letters of Credit

At January 31, 2013, the Company had outstanding surety bonds amounting to $375.2 million, primarily related to its obligations to various governmental entities to construct improvements in the Company’s various communities. The Company estimates that $219.4 million of work remains on these improvements. The Company has an additional $61.3 million of surety bonds outstanding that guarantee other obligations of the Company. The Company believes it is not probable that any outstanding bonds will be drawn upon.

At January 31, 2013, the Company had outstanding letters of credit of $78.8 million, including $66.0 million under its credit facility and $12.8 million collateralized by restricted cash. These letters of credit were issued to secure various financial obligations of the Company including insurance policy deductibles and other claims, land deposits and security to complete improvements in communities which it is operating. The Company believes it is not probable that any outstanding letters of credit will be drawn upon.

Backlog

At January 31, 2013, the Company had agreements of sale outstanding to deliver 2,796 homes with an aggregate sales value of $1.86 billion.

Mortgage Commitments

The Company’s mortgage subsidiary provides mortgage financing for a portion of the Company’s home closings. For those home buyers to whom the Company’s mortgage subsidiary provides mortgages, it determines whether the home buyer qualifies for the mortgage he or she is seeking based upon information provided by the home buyer and other sources. For those home buyers that qualify, the Company’s 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, the Company’s 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. The Company believes that these investors have adequate financial resources to honor their commitments to its mortgage subsidiary.

Information regarding the Company’s mortgage commitments, as of the date indicated, is provided in the table below (amounts in thousands):

	January 31, 2013		October 31, 2012
Aggregate mortgage loan commitments:
IRLCs	$	128,023	$	111,173
Non-IRLCs	553,392		456,825
Total	$	681,415	$	567,998
Investor commitments to purchase:
IRLCs	$	128,023	$	111,173
Mortgage loans receivable	45,090		80,697
Total	$	173,113	$	191,870

22

15. Geographic Segments

Revenue and income (loss) before income taxes for each of the Company’s geographic segments, for the periods indicated, were as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Revenue:
North	$	92,670		$	75,580
Mid-Atlantic	132,151			100,799
South	87,185			76,466
West	112,595			69,110
Total	$	424,601		$	321,955
Income (loss) before income taxes:
North	$	7,242		$	1,201
Mid-Atlantic	15,095			10,642
South	2,725			(2,077		)
West	8,047			5,603
Corporate and other	(24,783		)	(21,777		)
Total	$	8,326		$	(6,408	)

“Corporate and other” is comprised principally of general corporate expenses such as the offices of the Executive Officers of the Company, and the corporate finance, accounting, audit, tax, human resources, risk management, marketing and legal groups, interest income and income from certain of the Company’s ancillary businesses, Gibraltar and income from a number of the Company's unconsolidated entities.

Total assets for each of the Company’s geographic segments, as of the date indicated, are shown in the table below (amounts in thousands).

	January 31, 2013		October 31, 2012
North	$	1,430,831	$	1,205,900
Mid-Atlantic	1,349,624		1,304,798
South	869,325		821,001
West	959,673		913,699
Corporate and other	1,508,798		1,935,646
Total	$	6,118,251	$	6,181,044

Corporate and other is comprised principally of cash and cash equivalents, marketable securities, restricted cash, the assets of the Company’s manufacturing facilities and mortgage subsidiary, and its Gibraltar investments.

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable and write-downs of investments in unconsolidated entities (including the Company's pro-rata share of impairment charges recognized by the unconsolidated entities in which it has an investment) and recoveries of prior charges for the periods indicated, as shown in the table below; the net carrying value of inventory and investments in and advances to unconsolidated entities for each of the Company’s geographic segments, as of the dates indicated, are also shown in the table below (amounts in thousands):

23

	Net Carrying Value				Impairments
	At January 31,		At October 31,		Three months ended January 31,
	2013		2012		2013			2012
Inventory:
Land controlled for future communities:
North	$	14,937	$	13,196	$	88		$	24
Mid-Atlantic	26,031		27,249		16			199
South	8,130		7,724		355			555
West	5,423		8,131		(450		)	(1		)
	54,521		56,300		9			777
Land owned for future communities:
North	395,575		226,082
Mid-Atlantic	474,446		431,620
South	163,080		141,644					918
West	220,001		241,027
	1,253,102		1,040,373		—			918
Operating communities:
North	855,440		803,085		500			2,265
Mid-Atlantic	739,084		729,739
South	633,822		603,239					4,160
West	619,078		528,451		200
	2,847,424		2,664,514		700			6,425
Total	$	4,155,047	$	3,761,187	$	709		$	8,120
Investments in and advances to unconsolidated entities:
North	$	143,358	$	142,213
South	31,609		31,252
West	106,368		116,452
Corporate	40,516		40,700
Total	$	321,851	$	330,617	$	—		$	—

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16. Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the statements of cash flows for the three months ended January 31, 2013 and 2012 (amounts in thousands):

	2013			2012
Cash flow information:
Interest capitalized, net of amount paid	$	6,801		$	766
Income tax payment				$	2,093
Income tax refunds	$	469
Non-cash activity:
Cost of inventory acquired through seller financing or municipal bonds, net	$	15,998		$	431
Miscellaneous decreases to inventory	$	(144	)	$	(75	)
Defined benefit plan amendment	$	519		$	310
Increase in accrued expenses related to Stock Price-Based RSUs paid	$	2,939
Increase of investments in unconsolidated entities due to reduction in letters of credit or accrued liabilities	$	(24	)	$	(26	)
Transfer of inventory to investment in distressed loans and foreclosed real estate				$	802
Transfer of inventory to investment in unconsolidated entities				$	5,793
Unrealized gain on derivative held by equity investee	$	151		$	795
Miscellaneous increases (decreases) to investments in unconsolidated entities	$	86		$	(18	)
Acquisition of Business:
Fair value of assets purchased				$	149,959
Liabilities assumed				$	5,213
Cash paid				$	144,746

17. Supplemental Guarantor Information

A 100% owned subsidiary of the Company, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following Senior Notes (amounts in thousand):

	Original Amount Issued		Amount outstanding at January 31, 2013
5.95% Senior Notes due 2013	$	250,000	$	104,785
4.95% Senior Notes due 2014	$	300,000	$	267,960
5.15% Senior Notes due 2015	$	300,000	$	300,000
8.91% Senior Notes due 2017	$	400,000	$	400,000
6.75% Senior Notes due 2019	$	250,000	$	250,000
5.875% Senior Notes due 2022	$	419,876	$	419,876
0.5% Exchangeable Senior Notes due 2032	$	287,500	$	287,500

The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest is guaranteed jointly and severally on a senior basis by the Company and substantially all of the Company’s 100% owned home building subsidiaries (the “Guarantor Subsidiaries”). The guarantees are full and unconditional. The Company’s non-home building subsidiaries and several of its home building subsidiaries (the “Non-Guarantor Subsidiaries”) do not guarantee the debt. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that such disclosures would not be material to investors. Prior to the above described senior debt issuances, the Subsidiary Issuer did not have any operations.

25

Supplemental consolidating financial information of Toll Brothers, Inc., the Subsidiary Issuer, the Guarantor Subsidiaries, the Non-Guarantor Subsidiaries and the eliminations to arrive at Toll Brothers, Inc. on a consolidated basis is presented below ($ amounts in thousands).

Condensed Consolidating Balance Sheet at January 31, 2013:

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		293,256		75,500		—		368,756
Marketable securities					364,585		60,234				424,819
Restricted cash	15,060				17,369		1,328				33,757
Inventory					3,859,964		295,083				4,155,047
Property, construction and office equipment, net					109,618		3,259				112,877
Receivables, prepaid expenses and other assets	146		14,458		74,673		77,665		(14,061	)	152,881
Mortgage loans held for sale							49,400				49,400
Customer deposits held in escrow					28,455		2,846				31,301
Investments in and advances to unconsolidated entities					64,931		256,920				321,851
Investments in distressed loans							42,832				42,832
Investments in foreclosed real estate							68,764				68,764
Investments in and advances to consolidated entities	2,847,200		2,045,897		(1,044,776	)	(714,679	)	(3,133,642	)	—
Deferred tax assets, net of valuation allowances	355,966										355,966
	3,218,372		2,060,355		3,768,075		219,152		(3,147,703	)	6,118,251
LIABILITIES AND EQUITY
Liabilities:
Loans payable					78,308		15,006				93,314
Senior notes			1,976,150						45,747		2,021,897
Mortgage company warehouse loan							43,464				43,464
Customer deposits					148,085		8,673				156,758
Accounts payable					110,764		27				110,791
Accrued expenses			37,526		317,137		127,196		(14,207	)	467,652
Income taxes payable	83,265										83,265
Total liabilities	83,265		2,013,676		654,294		194,366		31,540		2,977,141
Equity:
Stockholders’ equity:
Common stock	1,692				48		3,006		(3,054	)	1,692
Additional paid-in capital	412,242		49,400				1,734		(51,134	)	412,242
Retained earnings	2,725,829		(2,721	)	3,113,875		13,901		(3,125,055	)	2,725,829
Treasury stock, at cost	(38	)									(38	)
Accumulated other comprehensive loss	(4,618	)			(142	)	(43	)			(4,803	)
Total stockholders’ equity	3,135,107		46,679		3,113,781		18,598		(3,179,243	)	3,134,922
Noncontrolling interest							6,188				6,188
Total equity	3,135,107		46,679		3,113,781		24,786		(3,179,243	)	3,141,110
	3,218,372		2,060,355		3,768,075		219,152		(3,147,703	)	6,118,251

26

Condensed Consolidating Balance Sheet at October 31, 2012:

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents					711,375		67,449				778,824
Marketable securities					378,858		60,210				439,068
Restricted cash	28,268				17,561		1,447				47,276
Inventory					3,527,677		233,510				3,761,187
Property, construction and office equipment, net					106,963		3,008				109,971
Receivables, prepaid expenses and other assets	134		15,130		77,175		68,300		(16,181	)	144,558
Mortgage loans held for sale							86,386				86,386
Customer deposits held in escrow					27,312		2,267				29,579
Investments in and advances to unconsolidated entities					70,145		260,472				330,617
Investments in distressed loans							37,169				37,169
Investments in foreclosed real estate							58,353				58,353
Investments in and advances to consolidated entities	2,816,607		2,092,810		(1,168,812	)	(630,493	)	(3,110,112	)	—
Deferred tax assets, net of valuation allowances	358,056										358,056
	3,203,065		2,107,940		3,748,254		248,078		(3,126,293	)	6,181,044
LIABILITIES AND EQUITY
Liabilities:
Loans payable					69,393		30,424				99,817
Senior notes			2,032,335						48,128		2,080,463
Mortgage company warehouse loan							72,664				72,664
Customer deposits					136,225		6,752				142,977
Accounts payable					99,889		22				99,911
Accrued expenses			27,476		341,233		119,244		(11,603	)	476,350
Income taxes payable	80,991										80,991
Total liabilities	80,991		2,059,811		646,740		229,106		36,525		3,053,173
Equity:
Stockholders’ equity:
Common stock	1,687				48		3,006		(3,054	)	1,687
Additional paid-in capital	404,418		49,400				1,734		(51,134	)	404,418
Retained earnings	2,721,397		(1,271	)	3,101,833		8,068		(3,108,630	)	2,721,397
Treasury stock, at cost	(983	)									(983	)
Accumulated other comprehensive loss	(4,445	)			(367	)	(7	)			(4,819	)
Total stockholders’ equity	3,122,074		48,129		3,101,514		12,801		(3,162,818	)	3,121,700
Noncontrolling interest							6,171				6,171
Total equity	3,122,074		48,129		3,101,514		18,972		(3,162,818	)	3,127,871
	3,203,065		2,107,940		3,748,254		248,078		(3,126,293	)	6,181,044

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Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended January 31, 2013 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues					419,778		25,490		(20,667	)	424,601
Cost of revenues					340,182		11,144		(5,389	)	345,937
Selling, general and administrative	16		687		83,578		11,070		(17,304	)	78,047
Interest expense			31,422				160		(31,582	)	—
	16		32,109		423,760		22,374		(54,275	)	423,984
Income (loss) from operations	(16	)	(32,109	)	(3,982	)	3,116		33,608		617
Other:
Income from unconsolidated entities					1,118		1,965				3,083
Other income - net	4		29,727		5,995		126		(31,226	)	4,626
Income from subsidiaries	8,338				5,207				(13,545	)	—
Income before income tax benefit	8,326		(2,382	)	8,338		5,207		(11,163	)	8,326
Income tax benefit	3,894		(933	)	3,266		2,039		(4,372	)	3,894
Net income	4,432		(1,449	)	5,072		3,168		(6,791	)	4,432
Other comprehensive income (loss)	(173	)			225		(36	)			16
Comprehensive income (loss)	4,259		(1,449	)	5,297		3,132		(6,791	)	4,448

Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income for the three months ended January 31, 2012 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries	Eliminations		Consolidated
Revenues					327,692		12,386	(18,123	)	321,955
Cost of revenues					272,884		674	(1,950	)	271,608
Selling, general and administrative	13		478		73,287		9,519	(13,660	)	69,637
Interest expense			25,286					(25,286	)	—
	13		25,764		346,171		10,193	(40,896	)	341,245
Loss from operations	(13	)	(25,764	)	(18,479	)	2,193	22,773		(19,290	)
Other:
Loss (income) from unconsolidated entities					5,229		1,458			6,687
Other income - net	7		25,764		2,966		233	(22,775	)	6,195
Loss from subsidiaries	(6,402	)			3,884			2,518		—
Loss before income tax benefit	(6,408	)	—		(6,400	)	3,884	2,516		(6,408	)
Income tax benefit	(3,622	)	—		(3,618	)	2,195	1,423		(3,622	)
Net income	(2,786	)	—		(2,782	)	1,689	1,093		(2,786	)
Other comprehensive loss	(109	)			(552	)				(661	)
Comprehensive (loss) income	(2,895	)	—		(3,334	)	1,689	1,093		(3,447	)

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Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2013 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flow from operating activities:
Net income (loss)	4,432		(1,449	)	5,072		3,168		(6,791	)	4,432
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	6		3,570		5,139		191		(2,381	)	6,525
Stock-based compensation	5,684										5,684
Income from unconsolidated entities					(1,117	)	(1,966	)			(3,083	)
Distributions of earnings from unconsolidated entities					690		1,723				2,413
Income from distressed loans and foreclosed real estate							(3,011	)			(3,011	)
Deferred tax provision	2,306										2,306
Deferred tax valuation allowance	(216	)									(216	)
Inventory impairments and write-offs					740				(31	)	709
Change in fair value of mortgage loans receivable and derivative instruments							554				554
Changes in operating assets and liabilities
Increase in inventory					(317,472	)	(61,274	)	31		(378,715	)
Origination of mortgage loans							(141,148	)			(141,148	)
Sale of mortgage loans							176,830				176,830
Decrease in restricted cash	13,208				192		119				13,519
(Increase) decrease in receivables, prepaid expenses and other assets	(30,512	)	46,897		(115,728	)	79,311		11,776		(8,256	)
Increase in customer deposits					10,717		1,342				12,059
Increase (decrease) in accounts payable and accrued expenses	(3,211	)	10,050		(9,867	)	6,934		(2,604	)	1,302
Increase in income taxes payable	2,274										2,274
Net cash (used in) provided by operating activities	(6,029	)	59,068		(421,634	)	62,773		—		(305,822	)
Cash flow provided by (used in) investing activities:
Purchase of property and equipment - net					(5,123	)	(268	)			(5,391	)
Purchase of marketable securities					(25,938	)	(81	)			(26,019	)
Sale and redemption of marketable securities					38,775						38,775
Investments in and advances to unconsolidated entities					(2,047	)	(5,567	)			(7,614	)
Return of investments in unconsolidated entities					7,960		9,351				17,311
Investments in distressed loans and foreclosed real estate							(16,252	)			(16,252	)
Return of investments in distressed loans and foreclosed real estate							3,015				3,015
Net cash provided by (used in) investing activities	—		—		13,627		(9,802	)	—		3,825
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							244,830				244,830
Principal payments of loans payable					(10,112	)	(289,750	)			(299,862	)
Redemption of senior notes			(59,068	)							(59,068	)
Proceeds from stock-based benefit plans	6,108										6,108
Purchase of treasury stock	(79	)									(79	)
Net cash (used in) provided by financing activities	6,029		(59,068	)	(10,112	)	(44,920	)	—		(108,071	)
Net (decrease) increase in cash and cash equivalents	—		—		(418,119	)	8,051		—		(410,068	)
Cash and cash equivalents, beginning of period					711,375		67,449				778,824
Cash and cash equivalents, end of period	—		—		293,256		75,500		—		368,756

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Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2012 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flow from operating activities:
Net (loss) income	(2,786	)	—		(2,782	)	1,689		1,093		(2,786	)
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization			794		4,419		16				5,229
Stock-based compensation	5,626										5,626
Income from unconsolidated entities					(7,729	)	1,042				(6,687	)
Distributions of earnings from unconsolidated entities					872						872
Income from distressed loans and foreclosed real estate							(4,138	)			(4,138	)
Deferred tax benefit	(1,246	)									(1,246	)
Deferred tax valuation allowance	1,246										1,246
Inventory impairments and write-offs					8,120						8,120
Change in fair value of mortgage loans receivable and derivative instruments							346				346
Gain on marketable securities					(39	)					(39	)
Changes in operating assets and liabilities
Increase in inventory					(100,509	)	(7,959	)			(108,468	)
Origination of mortgage loans							(120,662	)			(120,662	)
Sale of mortgage loans							146,895				146,895
(Increase) decrease in restricted cash	(28,307	)			650		(824	)			(28,481	)
Decrease (increase) in receivables, prepaid expenses and other assets	22,096		(4,793	)	(177,589	)	173,768		(1,701	)	11,781
Increase (decrease) in customer deposits					9,291		(6,061	)			3,230
Increase (decrease) in accounts payable and accrued expenses	(109	)	3,999		(11,553	)	(60,072	)	608		(67,127	)
Decrease in income taxes payable	(5,790	)									(5,790	)
Net cash (used in) provided by operating activities	(9,270	)	—		(276,849	)	124,040		—		(162,079	)
Cash flow used in investing activities:
Purchase of property and equipment — net					(2,563	)	(829	)			(3,392	)
Sale and redemption of marketable securities					88,217						88,217
Investments in and advances to unconsolidated entities					(256	)	(71,528	)			(71,784	)
Return of investments in unconsolidated entities					15,333						15,333
Investments in distressed loans and foreclosed real estate							(26,410	)			(26,410	)
Return of investments in distressed loans and foreclosed real estate							3,702				3,702
Acquisition of a business					(144,746	)					(144,746	)
Net cash used in investing activities	—		—		(44,015	)	(95,065	)	—		(139,080	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							199,139				199,139
Principal payments of loans payable					(12,520	)	(225,376	)			(237,896	)
Proceeds from stock-based benefit plans	9,334										9,334
Purchase of treasury stock	(64	)									(64	)
Net cash (used in) provided by financing activities	9,270		—		(12,520	)	(26,237	)	—		(29,487	)
Net (decrease) increase in cash and cash equivalents	—		—		(333,384	)	2,738		—		(330,646	)
Cash and cash equivalents, beginning of period	—				775,300		131,040				906,340
Cash and cash equivalents, end of period	—		—		441,916		133,778		—		575,694

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”)

This discussion and analysis is based on, should be read with, and is qualified in its entirety by, the accompanying unaudited condensed consolidated financial statements and related notes, as well as our consolidated financial statements, notes thereto, and the related Management's Discussion and Analysis of Financial Condition and Results of Operations as contained in our Annual Report on Form 10-K for the fiscal year ended October 31, 2012. It also should be read in conjunction with the disclosure under “Statement on Forward-Looking Information” in this report.

Unless otherwise stated, net contracts signed represents a number or value equal to the gross number or value of contracts signed during the relevant period, less the number or value of contracts canceled during the relevant period, which includes contracts that were signed during the relevant period and in prior periods.

OVERVIEW

Financial Highlights

In the three-month period ended January 31, 2013, we recognized $424.6 million of revenues and net income of $4.4 million, as compared to $322.0 million of revenues and a net loss of $2.8 million in the three-month period ended January 31, 2012. The fiscal 2013three-month income before income taxes included $0.7 million of inventory impairments and write-offs. The fiscal 2012three-month loss before income taxes included $8.1 million of inventory impairments and write-offs. During the fiscal 2013three-month period, we recognized an income tax provision of $3.9 million, as compared to an income tax benefit of $3.6 million in the fiscal 2012 period.

Our Business Environment and Current Outlook

In fiscal 2012, the housing market began to recover from the significant slowdown that started in the fourth quarter of our fiscal year ended October 31, 2005. The recovery has continued in fiscal 2013.

During fiscal 2012, we, and many of the other public home builders, saw a strong recovery in the number of new sales contracts signed. Our net contracts signed in fiscal 2012, as compared to fiscal 2011, increased nearly 50% in the number of net contracts signed and 59% in the value of net contracts signed. In the three-month period ended January 31, 2013, net contracts signed increased 49.2% in units and 38.2% in value, as compared to the same period in fiscal 2012.

We believe that, as the unemployment rate has declined and confidence has improved, pent-up demand has begun to be released. We believe many of our target customers generally have remained employed during this downturn; however, we believe many deferred their home buying decisions because of concerns over the direction of the economy, the direction of home prices, and their ability to sell their existing home. Additionally, rising home prices, reduced inventory, and low mortgage rates have resulted in increased demand, although still below historical levels. We believe that the key to a full recovery in our business depends on these factors as well as a sustained stabilization of financial markets and the economy in general.

We believe that the demographics of the move-up, empty-nester, active-adult, age-qualified and second-home upscale markets will provide us with the potential for growth in the coming decade. According to the U.S. Census Bureau, the number of households earning $100,000 or more (in constant 2011 dollars) at September 2012 stood at 25.4 million, or approximately 17.3% of all U.S. households. This group has grown at three times the rate of increase of all U.S. households since 1980. According to Harvard University's June 2012 "The State of the Nation's Housing," the growth and aging of the current population, assuming the economic recovery is sustained over the next few years, supports the addition of about one million new household formations per year during the next decade.

According to the U.S. Census Bureau, during the period 1970 through 2007, total housing starts in the United States averaged approximately 1.26 million per year, while in the period 2008 through 2011, total housing starts averaged approximately 0.66 million per year. In addition, based on the trend of household formations in relation to population growth during the period 2000 through 2007, the number of households formed in the four-year period of 2008 through 2011 was approximately 2.3 million fewer than would have been expected.

In many markets, the pipeline of approved and improved home sites has dwindled as builders and developers have lacked both the capital and the economic benefit for bringing sites through approvals. Therefore, we believe that as demand continues to strengthen, builders and developers with approved land in well-located markets will benefit. We believe that this will be particularly true for us because our land portfolio is heavily weighted in the metro-Washington, DC to metro-Boston corridor where land is scarce, approvals are more difficult to obtain and overbuilding has been relatively less prevalent than in the Southeast and Western regions.

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We continue to believe that many of our communities are in desirable locations that are difficult to replace and in markets where approvals have been increasingly difficult to achieve. We believe that many of these communities have substantial embedded value that may be realized in the future as the housing recovery strengthens.

Competitive Landscape

Based on our experience during prior downturns in the housing industry, we believe that attractive land acquisition opportunities arise in difficult times for those builders that have the financial strength to take advantage of them. In the current environment, we believe our strong balance sheet, liquidity, access to capital, broad geographic presence, diversified product line, experienced personnel and national brand name all position us well for such opportunities now and in the future.

We believe that many of the small and mid-sized private builders that had been our primary competitors in the luxury market are no longer in business and that access to capital by the remaining private builders is severely constrained. While some of these private builders may emerge with new capital, the scarcity of attractive land is a further impediment to their competitiveness.

We believe that geographic and product diversification, access to lower-cost capital and strong demographics benefit those builders, like us, who can control land and persevere through the increasingly difficult regulatory approval process; these factors favor a large publicly traded home building company with the capital and expertise to control home sites and gain market share. We also believe that during the recent prolonged downturn, many builders and land developers reduced the number of home sites that were taken through the approval process. The process continues to be difficult and lengthy, and the political pressure from no-growth proponents continues to increase, but we believe our expertise in taking land through the approval process and our already-approved land positions will allow us to grow in the years to come as market conditions improve.

Land Acquisition and Development

Because of the length of time that it takes to obtain the necessary approvals on a property, complete the land improvements on it, and deliver a home after a home buyer signs an agreement of sale, we are subject to many risks. In certain cases, we attempt to reduce some of these risks by utilizing one or more of the following methods: controlling land for future development through options (also referred to herein as “land purchase contracts” or “option and purchase agreements”), thus allowing the necessary governmental approvals to be obtained before acquiring title to the land; generally commencing construction of a detached home only after executing an agreement of sale and receiving a substantial down payment from the buyer; and using subcontractors to perform home construction and land development work on a fixed-price basis.

Based on our belief that the housing market has begun to recover, the increased attractiveness of land available for purchase and the revival of demand in certain areas, we have begun to increase our land positions. During fiscal 2012 and the three-month period ended January 31, 2013, we acquired control of approximately 6,100 home sites (net of options terminated) and 4,100 home sites (net of options terminated), respectively. At January 31, 2013, we controlled approximately 43,700 home sites of which we owned approximately 33,500. Of these 33,500 home sites, significant improvements were completed on approximately 12,000. At January 31, 2013 and 2012, we were selling from 225 and 228 communities, respectively. At October 31, 2012, we were selling from 224 communities, compared to 215 communities at October 31, 2011. During the three-month period ended January 31, 2013, we opened 12 new communities for sale and sold out of 11 communities.

We expect to open approximately 70 communities for sale in the nine-month period ending October 31, 2013. We expect to be selling from 225 to 255 communities at October 31, 2013. At January 31, 2013, we had 45 communities that were temporarily closed due to market conditions and 34 communities for which we had acquired the land but have temporarily decided not to open.

Diversification

Based on our experience, our land acquisition/development, and construction expertise and our financial and marketing strength, we acquired control of a number of land parcels for for-rent apartment projects, including two student housing sites, totaling approximately 4,900 units. These projects, which are located in the metro Boston to Washington, D.C. corridor and which we are currently developing or expect to develop in partnership structures over the next several years, should start generating revenues beginning in 2015. A number of these sites had been acquired by us as part of a larger purchase or were originally acquired to develop as for-sale homes. Of the 4,900 units, 800 are owned by joint ventures in which we have a 50% interest; approximately 1,450 are owned by us; 1,850 of them are under contract; and 800 of them are under letters of intent. We currently own through Toll Brothers Realty Trust and Toll Brothers Realty Trust II interests in approximately 1,500 apartment units in the Washington, D.C. area and Princeton Junction, NJ.

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Availability of Customer Mortgage Financing

We maintain relationships with a widely diversified group of mortgage financial institutions, many of which are among the largest and, we believe, most reliable in the industry. We believe that regional and community banks continue to recognize the long-term value in creating relationships with high-quality, affluent customers such as our home buyers, and these banks continue to provide such customers with financing.

We believe that our home buyers generally are, and should continue to be, better able to secure mortgages due to their typically lower loan-to-value ratios and attractivecredit profiles as compared to the average home buyer. Nevertheless, in recent years, tightened credit standards have shrunk the pool of potential home buyers and hindered accessibility of or eliminated certain loan products previously available to our home buyers. Our home buyers continue to face stricter mortgage underwriting guidelines, higher down payment requirements and narrower appraisal guidelines than in the past. In addition, some of our home buyers continue to find it more difficult to sell their existing homes as prospective buyers of their homes may face difficulties obtaining a mortgage. In addition, other potential buyers may have little or negative equity in their existing homes and may not be able or willing to purchase a larger or more expensive home.

While the range of mortgage products available to a potential home buyer is not what it was in the period 2005 through 2007, we have seen improvements over the past two years. Indications from industry participants, including commercial banks, mortgage banks, mortgage real estate investment trusts and mortgage insurance companies are that availability, parameters and pricing of jumbo loans are all improving. We believe that improvement should not only enhance financing alternatives for existing jumbo buyers, but also help to offset the reduction in Fannie Mae/Freddie Mac-eligible loan amounts in some markets. Based on the mortgages provided by our mortgage subsidiary, we do not expect the change in the Fannie Mae/Freddie Mac-eligible loan amounts to have a significant impact on our business.

There has been significant media attention given to mortgage put-backs, a practice by which a buyer of a mortgage loan tries to recoup losses from the loan originator. We do not believe this is a material issue for our mortgage subsidiary. Of the approximately 16,042 loans sold by our mortgage subsidiary since November 1, 2004, only 39 have been the subject of either actual indemnification payments or take-backs or contingent liability loss provisions related thereto. We believe that this is due to (i) our typical home buyer's financial position and sophistication; (ii) on average, our home buyers who use mortgage financing to purchase a home pay approximately 30% of the purchase price in cash; (iii) our general practice of not originating certain loan types such as option adjustable rate mortgages and down payment assistance products, and our origination of few sub-prime and high loan-to-value/no documentation loans; (iv) our elimination of “early payment default” provisions from each of our agreements with our mortgage investors several years ago; and (v) the quality of our controls, processes and personnel in our mortgage subsidiary.

The Dodd-Frank Wall Street Reform and Consumer Protection Act provides for a number of new requirements relating to residential mortgage lending practices, many of which are subject to further potential rulemaking. These include, among others, minimum standards for mortgages and related lender practices, the definitions and parameters of a Qualified Mortgage and a Qualified Residential Mortgage, future risk retention requirements, limitations on certain fees, prohibition of certain tying arrangements and remedies for borrowers in foreclosure proceedings in the event that a lender violates fee limitations or minimum standards. The ultimate effect of such provisions on lending institutions, including our mortgage subsidiary, will depend on the rules that are ultimately promulgated.

Gibraltar

We look for distressed real estate opportunities through our Gibraltar Capital and Asset Management LLC (“Gibraltar”) wholly-owned subsidiary. Gibraltar selectively reviews a steady flow of new opportunities, including bank portfolios and other distressed real estate investments.

During the three-month period ended January 31, 2013, Gibraltar acquired three loans directly and invested in a loan participation for an aggregate purchase price of approximately $16.1 million. The loans are secured by retail shopping centers, residential land and golf courses located in seven states.

At January 31, 2013, Gibraltar had investments in distressed loans of approximately $42.8 million, investments in foreclosed real estate of $68.8 million and an investment in a structured asset joint venture of $37.5 million. At January 31, 2013, Gibraltar directly owned, or through loan participations held interests in, 102 loans and properties with a net unpaid principal of the loans or estimated fair value of the properties of approximately $160.1 million.

During the three-month periods ended January 31, 2013 and 2012, we recognized income of $2.1 million and $1.7 million from the Gibraltar operations, respectively, including its equity in the earnings from its investment in a structured asset joint venture.

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CONTRACTS AND BACKLOG

The aggregate value of net contracts signed increased $169.7 million or 38.2% in the three-month period ended January 31, 2013, as compared to the three-month period ended January 31, 2012. The value of net contracts signed was $614.4 million (973 homes) and $444.7 million (652 homes) in the three-month periods ended January 31, 2013 and 2012, respectively. The increase in the aggregate value of net contracts signed in the fiscal 2013 period, as compared to the fiscal 2012 period was the result of a 49.2% increase in the number of net contracts signed, offset, in part, by a 7.4% decrease in the average value of each contract signed. The increase in the number of net contracts signed was primarily due to an increase in demand for our homes in the fiscal 2013 period, as compared to the fiscal 2012 period. The decrease in the average value of each contract signed was due primarily to the sales contracts signed at one of our luxury high-rise developments in the metro-New York market in fiscal 2012 which averaged approximately $4.1 million each, offset, in part, by, increased prices and/or reduced incentives given on new contracts signed in the fiscal 2013 period and a change in mix to more expensive product and/or areas in the fiscal 2013 period.

In the three-month period ended January 31, 2013, home buyers canceled $45.3 million (64 homes) of signed contracts, representing 6.9% of the gross value of contracts signed and 6.2% of the gross number of contracts signed. In the three-month period ended January 31, 2012, home buyers canceled $25.6 million (43homes) of signed contracts, representing 5.4% of the gross value of contracts signed and 6.2% of the gross number of contracts signed.

Backlog consists of homes under contract but not yet delivered to our home buyers. The value of our backlog at January 31, 2013 of $1.86 billion (2,796 homes) increased 66.4%, as compared to our backlog at January 31, 2012 of $1.12 billion (1,784 homes). Our backlog at October 31, 2012 and 2011 was $1.67 billion (2,569 homes) and $981.1 million (1,667 homes), respectively. The increase in the value of backlog at January 31, 2013, as compared to the backlog at January 31, 2012, was primarily attributable to the increase in the aggregate value of net contracts signed in the three-month period ended January 31, 2013, as compared to the three-month period ended January 31, 2012, and the higher backlog at October 31, 2012, as compared to the backlog at October 31, 2011, offset, in part, by the increase in the aggregate value of our deliveries in the three-month period of fiscal 2013, as compared to the aggregate value of deliveries in the three-month period of fiscal 2012.

For more information regarding revenues, net contracts signed and backlog by geographic segment, see “Geographic Segments” in this MD&A.

CRITICAL ACCOUNTING POLICIES

As disclosed in our annual report on Form 10-K for the fiscal year ended October 31, 2012, our most critical accounting policies relate to inventory, income taxes-valuation allowances and revenue and cost recognition. Since October 31, 2012, there have been no significant changes to those critical accounting policies.

OFF-BALANCE SHEET ARRANGEMENTS

We have investments in and advances to various unconsolidated entities. At January 31, 2013, we had investments in and advances to these entities, net of impairment charges recognized, of $321.9 million, and were committed to invest or advance $91.9 million to these entities if they require additional funding. In addition, we have guaranteed approximately $11.9 million of joint venture liabilities, including $9.8 million of payments under a ground lease for one of the joint ventures. Our investments in these entities are accounted for using the equity method of accounting. For more information regarding these joint ventures, see Note 3, "Investments in and Advances to Unconsolidated Entities" in the Notes to Condensed Consolidated Financial Statements in this Form 10-Q.

The trends, uncertainties or other factors that have negatively impacted our business and the industry in general have also impacted the unconsolidated entities in which we have investments. We review each of our investments on a quarterly basis for indicators of impairment. A series of operating losses of an investee, the inability to recover our invested capital, or other factors may indicate that a loss in value of our investment in the unconsolidated entity has occurred. If a loss exists, we further review to determine if the loss is other than temporary, in which case we write down the investment to its fair value. The evaluation of our investment in unconsolidated entities entails a detailed cash flow analysis using many estimates including but not limited to expected sales pace, expected sales prices, expected incentives, costs incurred and anticipated, sufficiency of financing and capital, competition, market conditions and anticipated cash receipts, in order to determine projected future distributions. Each of the unconsolidated entities evaluates its inventory in a similar manner as we do. See “Critical Accounting Policies - Inventory” contained in the MD&A in our Annual Report on Form 10-K for the year ended October 31, 2012 for more detailed disclosure on our evaluation of inventory. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, our proportionate share is reflected in income (loss) from unconsolidated entities with a corresponding decrease to our investment in unconsolidated entities. Based upon our evaluation of the fair value of our investments in unconsolidated entities, we determined that no impairments of our investments occurred in the three-month periods ended January 31, 2013 and 2012.

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RESULTS OF OPERATIONS

The following table sets forth, for the three-month periods ended January 31, 2013 and 2012, a comparison of certain items in the condensed consolidated statements of operations ($ amounts in millions):

	Three months ended January 31,
	2013		2012
	$	%*	$		%*
Revenues	424.6		322.0
Cost of revenues	345.9	81.5	271.6		84.4
Selling, general and administrative	78.0	18.4	69.6		21.6
	424.0	99.9	341.2		106.0
Income (loss) from operations	0.6		(19.3	)
Other
Income from unconsolidated entities	3.1		6.7
Other income - net	4.6		6.2
Income (loss) before income taxes	8.3		(6.4	)
Income tax provision (benefit)	3.9		(3.6	)
Net income (loss)	4.4		(2.8	)

* Percent of revenues

Note: Due to rounding, amounts may not add.

REVENUES AND COST OF REVENUES

Revenues for the three months ended January 31, 2013 were higher than those for the comparable period of fiscal 2012 by approximately $102.6 million, or 31.9%. This increase was primarily attributable to an increase in the number of homes delivered. In the fiscal 2013 period, we delivered 746 homes with a value of $424.6 million, as compared to 564 homes in the fiscal 2012 period with a value of $322.0 million. The increase in the number of homes delivered in the three-month period ended January 31, 2013, as compared to the fiscal 2012 period, was primarily due to the higher number of homes in backlog at the beginning of fiscal 2013, as compared to the beginning of fiscal 2012.

Cost of revenues as a percentage of revenues was 81.5% in the three-month period ended January 31, 2013 , as compared to 84.4% in the three-month period ended January 31, 2012. In the three-month periods ended January 31, 2013 and 2012, we recognized inventory impairment charges and write-offs of $0.7 million and $8.1 million, respectively. Cost of revenues as a percentage of revenues, excluding impairments, was 81.3% of revenues in the three-month period ended January 31, 2013, as compared to 81.8% in the fiscal 2012 period. The decrease in cost of revenues, excluding inventory impairment charges, as a percentage of revenue in the fiscal 2013 period, as compared to the fiscal 2012 period, was due primarily to lower interest costs in the fiscal 2013 period, as compared to the fiscal 2012 period. During the fiscal 2013 period, the cost of land, land improvements, materials and labor increased as a percentage of revenues by approximately 0.8%, as compared to the fiscal 2012 period due in part to a change in the mix of product delivered in the fiscal 2013 period; these increases were offset by improved absorption of job overhead and closing costs due to the increased number of homes closed in the fiscal 2013 period, as compared to the fiscal 2012 period. In the three-month periods ended January 31, 2013 and 2012, interest cost as a percentage of revenues was 4.7% and 5.1%, respectively.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (“SG&A”)

SG&A increased by $8.4 million in the three-month period ended January 31, 2013, as compared to the three-month period ended January 31, 2012. As a percentage of revenues, SG&A was 18.4% in the fiscal 2013 period, as compared to 21.6% in the fiscal 2012 period. The decline in SG&A as a percentage of revenues was due to SG&A increasing by 12.1% while revenues increased 31.9%. The increase in SG&A costs was due primarily to increased compensation costs and increased sales and marketing costs. The increased costs were due primarily to the increase in net sales contracts taken and the number of homes delivered in the fiscal 2013 period, as compared to the fiscal 2012 period, and the increased number of communities we were in the process of preparing to open in fiscal 2013, as compared to the fiscal 2012 period.

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INCOME FROM UNCONSOLIDATED ENTITIES

We are a participant in several joint ventures. We recognize our proportionate share of the earnings and losses from these entities. Many of our joint ventures are land development projects or high-rise/mid-rise construction projects and do not generate revenues and earnings for a number of years during the development of the property. Once development is complete, these joint ventures will generally, over a relatively short period of time, generate revenues and earnings until all assets of the entity are sold. Because there is not a steady flow of revenues and earnings from these entities, the earnings recognized from these entities will vary significantly from quarter-to-quarter and year-to-year.

In the three-month period ended January 31, 2013, we recognized $3.1 million of income from unconsolidated entities, as compared to $6.7 million in the comparable period of fiscal 2012. The $3.6 million decrease in income from unconsolidated entities in the fiscal 2013 period, as compared to the fiscal 2012 period, was due principally to lower income in the fiscal 2013 period, as compared to the fiscal 2012 period, generated from one of our development joint ventures and two condominium joint ventures due to their substantial completion in the fiscal 2012 period, offset, in part, by higher income realized from Gibraltar's structured asset joint venture in the fiscal 2013 period, as compared to the fiscal 2012 period.

OTHER INCOME - NET

Other income - net includes the gains and losses from our ancillary businesses, interest income, management fee income, retained customer deposits, income/losses on land sales and other miscellaneous items.

For the three months ended January 31, 2013 and 2012, other income was $4.6 million and $6.2 million, respectively. The decrease in other income - net in the three-month period ended January 31, 2013, as compared to the fiscal 2012 period, was primarily due to a decrease in income from our Gibraltar operations and lower management fee income in the fiscal 2013 period, as compared to the fiscal 2012 period, offset, in part, by higher interest and rental income in the fiscal 2013 period, as compared to the fiscal 2012 period.

INCOME (LOSS) BEFORE INCOME TAXES

For the three-month period ended January 31, 2013, we reported income before income taxes of $8.3 million, as compared to a loss before income tax benefit of $6.4 million in the three-month period ended January 31, 2012.

INCOME TAX PROVISION (BENEFIT)

We recognized a $3.9 million tax provision in the three-month period ended January 31, 2013. Based upon the federal statutory rate of 35%, our federal tax provision would have been $2.9 million. The difference between the tax provision recognized and the tax provision based on the federal statutory rate was due primarily to the recognition of $1.2 million of accrued interest and penalties (net of federal tax provision) for previously accrued taxes on uncertain tax positions.

We recognized a $3.6 million tax benefit in the three-month period ended January 31, 2012. Based upon the federal statutory rate of 35%, our tax benefit would have been $2.2 million. The difference between the tax benefit recognized and the tax benefit based on the federal statutory rate was due primarily to the reversal of $5.3 million of previously accrued taxes on uncertain tax positions (net of federal tax provision), offset, in part, by $2.0 million of accrued interest and penalties (net of federal tax provision) and a $1.5 million increase in our provision for uncertain tax positions.

CAPITAL RESOURCES AND LIQUIDITY

Funding for our business has been provided principally by cash flow from operating activities before inventory additions, unsecured bank borrowings and the public debt and equity markets. At January 31, 2013, we had $368.8 million of cash and cash equivalents and $424.8 million of marketable securities. At October 31, 2012, we had $778.8 million of cash and cash equivalents and $439.1 million of marketable securities. Cash used in operating activities during the three-month period ended January 31, 2013 was $305.8 million. Cash used in operating activities during the fiscal 2013 period was primarily used for the purchase inventory, offset, in part, by cash generated from net income before stock-based compensation and depreciation and amortization, the sale of mortgage loans to outside investors in excess of mortgage loans originated, a reduction in restricted cash and an increase in customer deposits.

In the three-month period ended January 31, 2013, cash provided from our investing activities was $3.8 million. The cash provided by investing activities was primarily generated from $12.8 million of net sales of marketable securities, $20.3 million of cash received as returns on our investments in unconsolidated entities, distressed loans and foreclosed real estate, offset, in part, by $7.6 million used to fund joint venture projects, $16.3 million for investments in a distressed loans and $5.4 million for the purchase of property and equipment. We used $108.1 million of cash from financing activities in the three-month period ended January 31, 2013, primarily for the repayment of $59.1 million of our 6.875% senior notes in November 2012 and $29.2 million of repayments of borrowings under our mortgage company warehouse facility, net of new borrowings under it, and

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$25.8 million of repayments of other loans, net of new borrowings, offset, in part, by $6.1 million from the proceeds of our stock-based benefit plans.

At January 31, 2012, we had $575.7 million of cash and cash equivalents and $143.7 million of marketable securities. At October 31, 2011, we had $906.3 million of cash and cash equivalents and $233.6 million of marketable securities. Cash used in operating activities during the three-month period ended January 31, 2012 was $162.1 million. Cash used in operating activities during the fiscal 2012 period was primarily used to fund the purchase of inventory, reduce accounts payable and accrued liabilities, including the payment of $57.6 million to fund the litigation settlement related to South Edge, and to replace letters of credit with cash deposits, offset, in part, by the sale of mortgage loans, net of mortgage originations. In the three-month period ended January 31, 2012, cash used in our investing activities was $139.1 million, net of $88.2 million of sales and redemptions of marketable securities and $19.0 million of cash received as returns on our investments in unconsolidated entities and in distressed loans and foreclosed real estate. The gross cash used in investing activities of $246.3 million included $144.7 million for the acquisition of the assets of CamWest Development LLC, a small Seattle, Washington-based home builder, $70.9 million to fund a new joint venture project in New York City and $26.4 million for investments in a non-performing loan portfolio. We also used $29.5 million of cash in financing activities in the three-month period ended January 31, 2012, primarily for the repayment of $25.5 million of our mortgage company warehouse loan, net of new borrowings under it, and the repayment of other loans payable.

At January 31, 2013, the aggregate purchase price of land parcels under option and purchase agreements was approximately $1.04 billion. Of the $1.04 billion of land purchase commitments, we paid or deposited $42.4 million, and, if we acquire all of these land parcels, we will be required to pay an additional $996.4 million. In addition, we expect to acquire an additional 545 home sites from a joint venture in which we have a 50% interest; the purchase price of these lots will be determined in the future. The purchases of these land parcels are scheduled over the next several years. We have additional land parcels under option that have been excluded from the aforementioned aggregate purchase amounts since we do not believe that we will complete the purchase of these land parcels and no additional funds will be required from us to terminate these contracts. At January 31, 2013, we also had purchase commitments to acquire land for apartment developments of approximately $93.3 million.

In general, our cash flow from operating activities assumes that, as each home is delivered, we will purchase a home site to replace it. Because we owned approximately 33,500 home sites at January 31, 2013, we do not need to buy home sites immediately to replace those which we deliver. Of the 33,500 home sites we owned, approximately 12,000 are substantially improved. In addition, we generally do not begin construction of our single-family detached homes until we have a signed contract with the home buyer. Should our business decline from present levels, we believe that our inventory levels would decrease as we complete and deliver the homes under construction but do not commence construction of as many new homes, or incur additional costs to improve land we already own, and as we sell and deliver the speculative homes that are currently in inventory, all of which should result in additional cash flow from operations. In addition, we might curtail our acquisition of additional land which would further reduce our inventory levels and cash needs. During the three-month period ended January 31, 2013, we acquired control of approximately 4,100 lots (net of lot options terminated). At January 31, 2013, we owned or controlled through options approximately 43,700 home sites, as compared to 40,350 at October 31, 2012.

At January 31, 2013, we had $819.0 million available to us under our $885.0 million revolving credit facility with 12 banks, which matures in October 2014. At January 31, 2013, we had no outstanding borrowings under the credit facility but had outstanding letters of credit of approximately $66.0 million. Under the terms of the credit facility, we are not permitted to allow our maximum leverage ratio (as defined in the credit agreement) to exceed 1.75 to 1.00, and we are required to maintain a minimum tangible net worth (as defined in the credit agreement) of approximately $2.14 billion at January 31, 2013. At January 31, 2013, our leverage ratio was approximately 0.43 to 1.00, and our tangible net worth was approximately $3.08 billion. Based upon the minimum tangible net worth requirement at January 31, 2013, our ability to pay dividends was limited to an aggregate amount of approximately $936.9 million or the repurchase of our common stock of approximately $1.29 billion. In addition, at January 31, 2013, we had $12.8 million of letters of credit outstanding which were not part of our credit facility; these letters of credit were collateralized by $13.3 million of cash deposits.

We believe that we will be able to continue to fund our current operations and meet our contractual obligations through a combination of existing cash resources and other sources of credit. Due to the tight credit markets and the uncertainties that exist in the economy and for home builders in general, we cannot be certain that we will be able to replace existing financing or find sources of additional financing in the future; moreover, if we are able to replace all or some of such facilities, we may be subjected to more restrictive borrowing terms and conditions.

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GEOGRAPHIC SEGMENTS

We operate in four geographic segments around the United States: the North, consisting of Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York; the Mid-Atlantic, consisting of Delaware, Maryland, Pennsylvania, Virginia; the South, consisting of Florida, North Carolina, and Texas; and the West, consisting of Arizona, California, Colorado, Nevada and Washington.

The tables below summarize information related to units delivered and revenues and net contracts signed by geographic segment for the three-month periods ended January 31, 2013 and 2012, and information related to backlog by geographic segment at January 31, 2013 and 2012, and at October 31, 2012 and 2011.

Units Delivered and Revenues ($ amounts in millions):

	Three months ended January 31,
	2013 Units	2012 Units	2013		2012
North	161	137	$	92.7	$	75.6
Mid-Atlantic	242	179	132.1		100.8
South	143	135	87.2		76.5
West	200	113	112.6		69.1
	746	564	$	424.6	$	322.0

Net Contracts Signed ($ amounts in millions):

	Three months ended January 31,
	2013 Units	2012 Units	2013		2012
North	252	201	$	144.9	$	178.5
Mid-Atlantic	277	182	154.1		104.2
South	203	159	137.5		96.3
West	241	110	177.9		65.7
	973	652	$	614.4	$	444.7

Backlog ($ amounts in millions):

	At January 31,						At October 31,
	2013 Units	2012 Units	2013		2012		2012 Units	2011 Units	2012		2011
North	746	617	$	501.5	$	410.3	655	553	$	449.2	$	307.4
Mid-Atlantic	693	490	408.1		292.4		658	487	386.2		288.9
South	809	466	533.8		283.0		749	442	483.5		263.2
West	548	211	416.3		131.8		507	185	351.0		121.6
	2,796	1,784	$	1,859.7	$	1,117.5	2,569	1,667	$	1,669.9	$	981.1

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Revenues and Income (Loss) Before Income Taxes:

The following table summarizes by geographic segments total revenues and income (loss) before income taxes for the three-month periods ended January 31, 2013 and 2012 (amounts in millions):

	Three months ended January 31,
	2013		2012
Revenue:
North	$	92.7	$	75.6
Mid-Atlantic	132.1		100.8
South	87.2		76.5
West	112.6		69.1
Total	$	424.6	$	322.0

	Three months ended January 31,
	2013			2012
Income (loss) before income taxes:
North	$	7.3		$	1.2
Mid-Atlantic	15.1			10.7
South	2.7			(2.1		)
West	8.0			5.6
Corporate and other (a)	(24.8		)	(21.8		)
Total	$	8.3		$	(6.4	)

(a) “Corporate and other” is comprised principally of general corporate expenses such as the offices of the Executive Officers of the Company, and the corporate finance, accounting, audit, tax, human resources, risk management, marketing and legal groups, directly expensed interest, interest income and income from the Company’s ancillary businesses, Gibraltar, and income (loss) from a number of its unconsolidated entities.

North

Revenues in the three-month period ended January 31, 2013 were higher than those for the comparable period of fiscal 2012 by $17.1 million, or 22.6%. The increase in revenues was primarily attributable to a 17.5% increase in the number of homes delivered and an increase of 4.3% in the average selling price of the homes delivered. The increase in the number of homes delivered in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily due to a higher backlog at October 31, 2012, as compared to October 31, 2011. The increase in the average price of homes delivered in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily attributable to a shift in the number of homes delivered to more expensive areas and/or products.

The value of net contracts signed in the three-month period ended January 31, 2013 was $144.9 million, an 18.8% decrease from the $178.5 million of net contracts signed during the three-month period ended January 31, 2012. This decrease was primarily due to a 35.2% decrease in the average value of each net contract, offset, in part, by a 25.4% increase in the number of net contracts signed. The decrease in the average sales price of net contracts signed in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily attributable to sales at the Touraine, a high-rise building located in the New York urban market that opened for sale in the fourth quarter of fiscal 2011. In the three-month period ended January 31, 2012, we signed 16 contracts at the Touraine with an average sales value of approximately $4.1 million each. The increase in the number of net contracts signed was primarily due to an improvement in home buyer demand in the fiscal 2013 period as compared to the fiscal 2012 period, partially offset by a decrease in net contracts signed in our high-rise buildings located in the New York and New Jersey urban markets where unit availability has diminished since the fiscal 2012 period.

For the three-month period ended January 31, 2013, we reported income before income taxes of $7.3 million, as compared to $1.2 million for the three-month period ended January 31, 2012. The increase in income in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily attributable to higher earnings from the increased amount of revenues and lower cost of revenues as a percentage of revenues, in the fiscal 2013 period, as compared to the fiscal 2012 period, offset, in part, by a decrease in income from unconsolidated entities from $4.6 million in the fiscal 2012 period to $0.8 million in the fiscal 2013 period and by higher SG&A. The lower cost of revenues as a percentage of revenues was primarily due to the closings at two of

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our high-rise buildings located in the New York and New Jersey urban markets which had significantly higher margins than our normal product and lower inventory impairment charges in the fiscal 2013 period, as compared to the fiscal 2012 period. In the three-month period ended January 31, 2013 and 2012, we recognized inventory impairment charges of $0.6 million and $2.3 million, respectively. The decrease in income from unconsolidated entities in the fiscal January 31, 2013 period was due principally to a decrease in income generated from two of our high-rise joint ventureswhere unit availability has diminished since the fiscal 2012 period.

Mid-Atlantic

For the three-month ended January 31, 2013, revenues were higher than those for the three-month ended January 31, 2012, by $31.3 million, or 31.1%. The increase in revenues was primarily attributable to a 35.2% increase in the number of homes delivered, partially offset by a 3.0% decrease in the average selling price of the homes delivered. The increase in the number of homes delivered in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily due to a higher backlog at October 31, 2012, as compared to October 31, 2011. The decrease in the average price of homes delivered in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily attributable to a shift in the number of homes delivered to less expensive areas and/or products.

The value of net contracts signed during the three-month period ended January 31, 2013 increased by $49.9 million, or 47.8%, from the three-month period ended January 31, 2012. The increase was due to a 52.2% increase in the number of net contracts signed partially offset by a 2.9% decrease in the average value of each net contract. The increase in the number of net contracts signed was primarily due to an increase in home buyer demand in the three-month period ended January 31, 2013, as compared to the three-month period ended January 31, 2012. The decrease in the average sales price of net contracts signed was primarily due to a shift in the number of contracts signed to less expensive areas and/or products in the fiscal 2013 period, as compared to the fiscal 2012 period.

We reported income before income taxes for the three-month periods ended January 31, 2013 and 2012, of $15.1 million and $10.7 million, respectively. The increase in the income before income taxes in the fiscal 2013 period was primarily due to higher earnings from the increased amount of revenues, offset, in part, by higher cost of revenues as a percentage of revenues and higher SG&A costs, in the fiscal 2013 period, as compared to the fiscal 2012 period. The increase in the cost of revenues as a percentage of revenues in the fiscal 2013 period was primarily due to a shift in the number of homes delivered to higher cost communities in the fiscal 2013 period, as compared to the fiscal 2012 period.

South

Revenues in the three-month period ended January 31, 2013 were higher than those for the three-month period ended January 31, 2012 by $10.7 million, or 14.0%. This increase was attributable to a 5.9% increase in the number of homes delivered and a 7.6% increase in the average price of the homes delivered. The increase in the number of homes delivered in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily due to a higher backlog at October 31, 2012, as compared to October 31, 2011. The increase in the average price of the homes delivered in the three-month period ended January 31, 2013, as compared to the three-month period ended January 31, 2012, was primarily attributable to a shift in the number of homes delivered to more expensive areas and/or products in the fiscal 2013 period, as compared to the fiscal 2012 period.

For the three-month period ended January 31, 2013, the value of net contracts signed increased by $41.2 million, or 42.8%, as compared to the three-month period ended January 31, 2012. The increase was attributable to increases of 27.7% and 11.9% in the number and average value of net contracts signed, respectively. The increase in the number of net contracts signed in the three-month period ended January 31, 2013, as compared to the three-month period ended January 31, 2012, was primarily due to increased demand in the fiscal 2013 period, as compared to the fiscal 2012 period. The increase in the average sales price of net contracts signed was primarily due to a shift in the number of contracts signed to more expensive areas and/or products in the fiscal 2013 period, as compared to the fiscal 2012 period.

For the three -month period ended January 31, 2013, we reported income before income taxes of $2.7 million, as compared to a loss before income taxes of $2.1 million for the three-month period ended January 31, 2012. The increase in the income before income taxes was primarily due to lower impairment charges and higher earnings from the increased amount of revenues in the fiscal 2013 period, as compared to the three-month period ended January 31, 2012, partially offset, by higher SG&A costs in the fiscal 2013 period, as compared to the fiscal 2012 period. In the three-month periods ended January 31, 2013 and 2012, we recognized inventory impairment charges of $0.4 million and $5.6 million, respectively.

West

Revenues in the three-month period ended January 31, 2013 were higher than those in the three-month period ended January 31, 2012 by $43.5 million, or 63.0%. The increase in revenues was attributable to a 77.0% increase in the number of homes delivered, offset, in part, by a 7.9% decrease in the average sales price of the homes delivered. The increase in the number of homes delivered in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily due to a higher backlog at October 31, 2012, as compared to October 31, 2011. The decrease in the average price of the homes delivered was

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primarily due to a shift in the number of homes delivered to less expensive products and/or locations, primarily in Arizona, Nevada and Washington, in the fiscal 2013 period, as compared to the fiscal 2012 period.

The value of net contracts signed during the three -month period ended January 31, 2013 increased $112.2 million, or 170.7%, as compared to the three-month period ended January 31, 2012. This increase was due to a 119.1% increase in the number of net contracts signed and a 23.6% increase in the average value of each net contract signed. The increase in the number of net contracts signed was due to the addition of communities in Washington from our acquisition of CamWest in fiscal 2012 and demand in other states in the fiscal 2013 period, as compared to the fiscal 2012 period. The increase in the average sales price of net contracts signed was primarily due to a shift in the number of contracts signed to more expensive areas and/or products in the fiscal 2013 period, as compared to the fiscal 2012 period.

For the three-month period ended January 31, 2013 and 2012, we reported income before income taxes of $8.0 million and $5.6 million, respectively. The increase in income before income taxes was primarily due to higher earnings from the increased amount of revenues in the fiscal 2013 period, as compared to the fiscal 2012 period, offset, in part, by higher cost of revenues, excluding interest, as a percentage of revenues and higher SG&A costs in the fiscal 2013 period, as compared to the fiscal 2012 period. Cost of revenues as a percentage of revenues, excluding interest, was 78.6% of revenues in the three-month period ended January 31, 2013, as compared to 76.9% in the fiscal 2012 period. The increase in cost of revenues, excluding interest, as a percentage of revenue in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily due to a shift in the number of homes delivered to higher cost communities in the fiscal 2013 period, as compared to the fiscal 2012 period.

Other

For the three-month period ended January 31, 2013 and 2012, corporate and other loss before income taxes was $24.8 million and $21.8 million, respectively. The increase in the loss in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily due to higher unallocated SG&A in the fiscal 2013 period, as compared to the fiscal 2012 period, offset, in part, by higher interest income and increases of income recognized from our Gibraltar operations (including its equity in the earnings from its investment in a structured asset joint venture) and ancillary business operations in the fiscal 2013 period, as compared to the fiscal 2012 period. The increase in unallocated SG&A in the fiscal 2013 period, as compared to the fiscal 2012 period, was primarily due to higher compensation, office and information technology expenses as a result of the increase in our business activity.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk primarily due to fluctuations in interest rates. We utilize both fixed-rate and variable-rate debt. For fixed-rate debt, changes in interest rates generally affect the fair market value of the debt instrument, but not our earnings or cash flow. Conversely, for variable-rate debt, changes in interest rates generally do not impact the fair market value of the debt instrument, but do affect our earnings and cash flow. We do not have the obligation to prepay fixed-rate debt prior to maturity, and, as a result, interest rate risk and changes in fair market value should not have a significant impact on our fixed-rate debt until we are required or elect to refinance it.

The table below sets forth, at January 31, 2013, our debt obligations, principal cash flows by scheduled maturity, weighted-average interest rates and estimated fair value (amounts in thousands):

	Fixed-rate debt				Variable-rate debt
Fiscal year of maturity	Amount			Weighted- average interest rate	Amount		Weighted- average interest rate
2013	$	110,509		5.84%	$	43,464	3.00%
2014	293,011			4.93%	150		0.42%
2015	309,177			5.12%	150		0.42%
2016	5,042			5.31%	150		0.42%
2017	401,883			8.90%	150		0.42%
Thereafter	991,268			4.53%	11,945		0.29%
Discount	(8,224		)
Total	$	2,102,666		5.57%	$	56,009	2.40%
Fair value at January 31, 2013	$	2,353,199			$	56,009

Based upon the amount of variable-rate debt outstanding at January 31, 2013, and holding the variable-rate debt balance constant, each 1% increase in interest rates would increase the interest incurred by us by approximately $0.6 million per year.

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ITEM 4. CONTROLS AND PROCEDURES

Any controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have been detected. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected; however, our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives.

Our chief executive officer and chief financial officer, with the assistance of management, evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this report (the “Evaluation Date”). Based on that evaluation, our chief executive officer and chief financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

There has not been any change in internal control over financial reporting during our quarter ended January 31, 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are involved in various claims and litigation arising principally in the ordinary course of business.

In January 2006, we received a request for information pursuant to Section 308 of the Clean Water Act from Region 3 of the U.S. Environmental Protection Agency (“EPA”) concerning storm water discharge practices in connection with our home building projects in the states that comprise EPA Region 3. Thereafter, the U.S. Department of Justice assumed responsibility for the oversight of this matter and alleged that we violated regulatory requirements applicable to storm water discharges. The parties have entered into a consent decree, which has been submitted for approval to the presiding judge in the U.S. District Court for the Eastern District of Pennsylvania. We believe the disposition of this matter will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

On November 4, 2008, a shareholder derivative action was filed in the Chancery Court of Delaware by Milton Pfeiffer against Robert I. Toll, Zvi Barzilay, Joel H. Rassman, Bruce E. Toll, Paul E. Shapiro, Robert S. Blank, Carl B. Marbach, and Richard J. Braemer. The plaintiff purports to bring his claims on behalf of Toll Brothers, Inc. and alleges that the director and officer defendants breached their fiduciary duties to us and our stockholders with respect to their sales of shares of our common stock during the period from December 9, 2004 to November 8, 2005. The plaintiff alleges that such stock sales were made while in possession of non-public, material information about us. The plaintiff seeks contribution and indemnification from the individual director and officer defendants for costs and expenses incurred by us in connection with defending a now-settled related class action. In addition, again purportedly on our behalf, the plaintiff seeks disgorgement of the defendants' profits from their stock sales.

On March 4, 2009, a second shareholder derivative action was brought by Oliverio Martinez in the U.S. District Court for the Eastern District of Pennsylvania. The case was brought against the eleven then-current members of our board of directors and the Company's Chief Accounting Officer. This plaintiff alleges breaches of fiduciary duty, waste of corporate assets, and unjust enrichment during the period from February 2005 to November 2006. The plaintiff further alleges that certain of the defendants sold our stock during this period while in possession of allegedly non-public, material information and plaintiff seeks disgorgement of profits from these sales. The plaintiff also asserts a claim for equitable indemnity for costs and expenses incurred by us in connection with defending a now-settled related class action lawsuit.

On April 1, 2009, a third shareholder derivative action was filed by William Hall, also in the U.S. District Court for the Eastern District of Pennsylvania, against the eleven then-current members of our board of directors and the Company's Chief Accounting Officer. This complaint is identical to the previous shareholder complaint filed in Philadelphia and, on July 14, 2009, the two cases were consolidated. On April 30, 2010, the plaintiffs filed an amended consolidated complaint.

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An agreement has been reached by the parties to settle all three shareholder derivative actions, and this agreement has been filed in the Chancery Court of Delaware. Notice has been provided to our shareholders. The agreement is conditioned on, among other things, final approval by the Chancery Court of Delaware. The agreement provides that, following approval of the settlement and entry of judgment by the Chancery Court of Delaware, the plaintiffs in the two actions pending in the U.S. District Court for the Eastern District of Pennsylvania will seek dismissal of those actions.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors as previously disclosed in our Form 10-K for the fiscal year ended October 31, 2012.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the three-month period ended January 31, 2013, we repurchased the following shares of our common stock:

Period	Total number of shares purchased (b)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs (a)	Maximum number of shares that may yet be purchased under the plans or programs (a)
	(in thousands)			(in thousands)	(in thousands)
November 1, 2012 to November 30, 2012	1	$	31.94	1	8,765
December 1, 2012 to December 31, 2012	1	31.78		1	8,764
January 1, 2013 to January 31, 2013	1	35.14		1	8,763
	3	$	32.59	3

(a) On March 20, 2003, we announced that our Board of Directors had authorized the repurchase of up to 20 million shares of our common stock, par value $.01, from time to time, in open market transactions or otherwise, for the purpose of providing shares for our various employee benefit plans. The Board of Directors did not fix an expiration date for the repurchase program.

(b) Our stock incentive plans permit participants to exercise non-qualified stock options using a “net exercise” method at the discretion of the Executive Compensation Committee of our Board of Directors. In a net exercise, we generally withhold from the total number of shares that otherwise would be issued to the participant upon exercise of the stock option that number of shares having a fair market value at the time of exercise equal to the option exercise price and applicable income tax withholdings, and remit the remaining shares to the participant. During the three-month period ended January 31, 2013, the net exercise method was employed to exercise options to acquire 31,000 shares of our common stock; we withheld 10,746 of the shares subject to the options to cover $0.3 million of option exercise costs and income tax withholdings and issued the remaining 20,254 shares to the participants.The shares withheld in connection with the net exercise method are not included in the total number of shares purchased in the table above.

Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a restricted stock unit recipient upon distribution that number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining shares to the restricted stock unit recipient. During the three months ended January 31, 2013, we withheld 81,201 of the shares subject to restricted stock unit to cover $2.6 million of income tax withholdings and we issued the remaining 118,799 shares to the recipient. The shares withheld in connection with the net exercise method are not included in the total number of shares purchased in the table above.

In addition, our stock incentive plans also permit participants in our stock option plans to use the fair market value of Company common stock they own to pay for the exercise of stock options (“stock swap method”). During the three-month period ended January 31, 2013, no participant used the stock swap method to exercise stock options.

Except as set forth above, we have not repurchased any of our equity securities during the three-month period ended January 31, 2013.

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We have not paid any cash dividends on our common stock to date and expect that, for the foreseeable future, we will not do so. In addition, our credit facility requires us to maintain a minimum tangible net worth (as defined in the credit agreement), which restricts the amount of dividends we may pay. At January 31, 2013, under the most restrictive of these provisions, we could have paid up to approximately $936.9 million of cash dividends.

ITEM 6. EXHIBITS

31.1*	Certification of Douglas C. Yearley, Jr. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Martin P. Connor pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Douglas C. Yearley, Jr. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Martin P. Connor pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Schema Document
101.CAL*	XBRL Calculation Linkbase Document
101.LAB*	XBRL Labels Linkbase Document
101.PRE*	XBRL Presentation Linkbase Document
101.DEF*	XBRL Definition Linkbase Document

* Filed electronically herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		TOLL BROTHERS, INC.
		(Registrant)
Date:	March 7, 2013	By:	/s/ Martin P. Connor
			Martin P. Connor
			Senior Vice President, Treasurer and Chief
			Financial Officer (Principal Financial Officer)
Date:	March 7, 2013	By:	/s/ Joseph R. Sicree
			Joseph R. Sicree
			Senior Vice President and Chief Accounting
			Officer (Principal Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Douglas C. Yearley Jr., certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Toll Brothers, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Signed:	/s/ Douglas C. Yearley, Jr.
	Name: Douglas C. Yearley, Jr.
	Title: Chief Executive Officer

Date: March 7, 2013

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Martin P. Connor, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Toll Brothers, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Signed:	/s/ Martin P. Connor
	Name: Martin P. Connor
	Title: Chief Financial Officer

Date: March 7, 2013

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Toll Brothers, Inc. (the “Company”) on Form 10-Q for the three months ended January 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Douglas C. Yearley Jr., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Douglas C. Yearley Jr.
	Name: Douglas C. Yearley Jr.
	Title: Chief Executive Officer

Date: March 7, 2013

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Toll Brothers, Inc. (the “Company”) on Form 10-Q for the three months ended January 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Martin P. Connor, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Martin P. Connor
	Name: Martin P. Connor
	Title: Chief Financial Officer

Date: March 7, 2013

XML

Supplemental Guarantor Information (Tables)

3 Months Ended

Jan. 31, 2013

Supplemental Guarantor Information [Abstract]

Senior Notes issued by Subsidiary Issuer [Table Text Block]

A 100% owned subsidiary of the Company, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following Senior Notes (amounts in thousand):

	Original Amount Issued		Amount outstanding at January 31, 2013
5.95% Senior Notes due 2013	$	250,000	$	104,785
4.95% Senior Notes due 2014	$	300,000	$	267,960
5.15% Senior Notes due 2015	$	300,000	$	300,000
8.91% Senior Notes due 2017	$	400,000	$	400,000
6.75% Senior Notes due 2019	$	250,000	$	250,000
5.875% Senior Notes due 2022	$	419,876	$	419,876
0.5% Exchangeable Senior Notes due 2032	$	287,500	$	287,500

Supplemental Consolidated Financial Information

Condensed Consolidating Balance Sheet at January 31, 2013:

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		293,256		75,500		—		368,756
Marketable securities					364,585		60,234				424,819
Restricted cash	15,060				17,369		1,328				33,757
Inventory					3,859,964		295,083				4,155,047
Property, construction and office equipment, net					109,618		3,259				112,877
Receivables, prepaid expenses and other assets	146		14,458		74,673		77,665		(14,061	)	152,881
Mortgage loans held for sale							49,400				49,400
Customer deposits held in escrow					28,455		2,846				31,301
Investments in and advances to unconsolidated entities					64,931		256,920				321,851
Investments in distressed loans							42,832				42,832
Investments in foreclosed real estate							68,764				68,764
Investments in and advances to consolidated entities	2,847,200		2,045,897		(1,044,776	)	(714,679	)	(3,133,642	)	—
Deferred tax assets, net of valuation allowances	355,966										355,966
	3,218,372		2,060,355		3,768,075		219,152		(3,147,703	)	6,118,251
LIABILITIES AND EQUITY
Liabilities:
Loans payable					78,308		15,006				93,314
Senior notes			1,976,150						45,747		2,021,897
Mortgage company warehouse loan							43,464				43,464
Customer deposits					148,085		8,673				156,758
Accounts payable					110,764		27				110,791
Accrued expenses			37,526		317,137		127,196		(14,207	)	467,652
Income taxes payable	83,265										83,265
Total liabilities	83,265		2,013,676		654,294		194,366		31,540		2,977,141
Equity:
Stockholders’ equity:
Common stock	1,692				48		3,006		(3,054	)	1,692
Additional paid-in capital	412,242		49,400				1,734		(51,134	)	412,242
Retained earnings	2,725,829		(2,721	)	3,113,875		13,901		(3,125,055	)	2,725,829
Treasury stock, at cost	(38	)									(38	)
Accumulated other comprehensive loss	(4,618	)			(142	)	(43	)			(4,803	)
Total stockholders’ equity	3,135,107		46,679		3,113,781		18,598		(3,179,243	)	3,134,922
Noncontrolling interest							6,188				6,188
Total equity	3,135,107		46,679		3,113,781		24,786		(3,179,243	)	3,141,110
	3,218,372		2,060,355		3,768,075		219,152		(3,147,703	)	6,118,251

Condensed Consolidating Balance Sheet at October 31, 2012:

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents					711,375		67,449				778,824
Marketable securities					378,858		60,210				439,068
Restricted cash	28,268				17,561		1,447				47,276
Inventory					3,527,677		233,510				3,761,187
Property, construction and office equipment, net					106,963		3,008				109,971
Receivables, prepaid expenses and other assets	134		15,130		77,175		68,300		(16,181	)	144,558
Mortgage loans held for sale							86,386				86,386
Customer deposits held in escrow					27,312		2,267				29,579
Investments in and advances to unconsolidated entities					70,145		260,472				330,617
Investments in distressed loans							37,169				37,169
Investments in foreclosed real estate							58,353				58,353
Investments in and advances to consolidated entities	2,816,607		2,092,810		(1,168,812	)	(630,493	)	(3,110,112	)	—
Deferred tax assets, net of valuation allowances	358,056										358,056
	3,203,065		2,107,940		3,748,254		248,078		(3,126,293	)	6,181,044
LIABILITIES AND EQUITY
Liabilities:
Loans payable					69,393		30,424				99,817
Senior notes			2,032,335						48,128		2,080,463
Mortgage company warehouse loan							72,664				72,664
Customer deposits					136,225		6,752				142,977
Accounts payable					99,889		22				99,911
Accrued expenses			27,476		341,233		119,244		(11,603	)	476,350
Income taxes payable	80,991										80,991
Total liabilities	80,991		2,059,811		646,740		229,106		36,525		3,053,173
Equity:
Stockholders’ equity:
Common stock	1,687				48		3,006		(3,054	)	1,687
Additional paid-in capital	404,418		49,400				1,734		(51,134	)	404,418
Retained earnings	2,721,397		(1,271	)	3,101,833		8,068		(3,108,630	)	2,721,397
Treasury stock, at cost	(983	)									(983	)
Accumulated other comprehensive loss	(4,445	)			(367	)	(7	)			(4,819	)
Total stockholders’ equity	3,122,074		48,129		3,101,514		12,801		(3,162,818	)	3,121,700
Noncontrolling interest							6,171				6,171
Total equity	3,122,074		48,129		3,101,514		18,972		(3,162,818	)	3,127,871
	3,203,065		2,107,940		3,748,254		248,078		(3,126,293	)	6,181,044

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended January 31, 2013 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues					419,778		25,490		(20,667	)	424,601
Cost of revenues					340,182		11,144		(5,389	)	345,937
Selling, general and administrative	16		687		83,578		11,070		(17,304	)	78,047
Interest expense			31,422				160		(31,582	)	—
	16		32,109		423,760		22,374		(54,275	)	423,984
Income (loss) from operations	(16	)	(32,109	)	(3,982	)	3,116		33,608		617
Other:
Income from unconsolidated entities					1,118		1,965				3,083
Other income - net	4		29,727		5,995		126		(31,226	)	4,626
Income from subsidiaries	8,338				5,207				(13,545	)	—
Income before income tax benefit	8,326		(2,382	)	8,338		5,207		(11,163	)	8,326
Income tax benefit	3,894		(933	)	3,266		2,039		(4,372	)	3,894
Net income	4,432		(1,449	)	5,072		3,168		(6,791	)	4,432
Other comprehensive income (loss)	(173	)			225		(36	)			16
Comprehensive income (loss)	4,259		(1,449	)	5,297		3,132		(6,791	)	4,448

Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income for the three months ended January 31, 2012 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries	Eliminations		Consolidated
Revenues					327,692		12,386	(18,123	)	321,955
Cost of revenues					272,884		674	(1,950	)	271,608
Selling, general and administrative	13		478		73,287		9,519	(13,660	)	69,637
Interest expense			25,286					(25,286	)	—
	13		25,764		346,171		10,193	(40,896	)	341,245
Loss from operations	(13	)	(25,764	)	(18,479	)	2,193	22,773		(19,290	)
Other:
Loss (income) from unconsolidated entities					5,229		1,458			6,687
Other income - net	7		25,764		2,966		233	(22,775	)	6,195
Loss from subsidiaries	(6,402	)			3,884			2,518		—
Loss before income tax benefit	(6,408	)	—		(6,400	)	3,884	2,516		(6,408	)
Income tax benefit	(3,622	)	—		(3,618	)	2,195	1,423		(3,622	)
Net income	(2,786	)	—		(2,782	)	1,689	1,093		(2,786	)
Other comprehensive loss	(109	)			(552	)				(661	)
Comprehensive (loss) income	(2,895	)	—		(3,334	)	1,689	1,093		(3,447	)

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2013 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flow from operating activities:
Net income (loss)	4,432		(1,449	)	5,072		3,168		(6,791	)	4,432
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	6		3,570		5,139		191		(2,381	)	6,525
Stock-based compensation	5,684										5,684
Income from unconsolidated entities					(1,117	)	(1,966	)			(3,083	)
Distributions of earnings from unconsolidated entities					690		1,723				2,413
Income from distressed loans and foreclosed real estate							(3,011	)			(3,011	)
Deferred tax provision	2,306										2,306
Deferred tax valuation allowance	(216	)									(216	)
Inventory impairments and write-offs					740				(31	)	709
Change in fair value of mortgage loans receivable and derivative instruments							554				554
Changes in operating assets and liabilities
Increase in inventory					(317,472	)	(61,274	)	31		(378,715	)
Origination of mortgage loans							(141,148	)			(141,148	)
Sale of mortgage loans							176,830				176,830
Decrease in restricted cash	13,208				192		119				13,519
(Increase) decrease in receivables, prepaid expenses and other assets	(30,512	)	46,897		(115,728	)	79,311		11,776		(8,256	)
Increase in customer deposits					10,717		1,342				12,059
Increase (decrease) in accounts payable and accrued expenses	(3,211	)	10,050		(9,867	)	6,934		(2,604	)	1,302
Increase in income taxes payable	2,274										2,274
Net cash (used in) provided by operating activities	(6,029	)	59,068		(421,634	)	62,773		—		(305,822	)
Cash flow provided by (used in) investing activities:
Purchase of property and equipment - net					(5,123	)	(268	)			(5,391	)
Purchase of marketable securities					(25,938	)	(81	)			(26,019	)
Sale and redemption of marketable securities					38,775						38,775
Investments in and advances to unconsolidated entities					(2,047	)	(5,567	)			(7,614	)
Return of investments in unconsolidated entities					7,960		9,351				17,311
Investments in distressed loans and foreclosed real estate							(16,252	)			(16,252	)
Return of investments in distressed loans and foreclosed real estate							3,015				3,015
Net cash provided by (used in) investing activities	—		—		13,627		(9,802	)	—		3,825
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							244,830				244,830
Principal payments of loans payable					(10,112	)	(289,750	)			(299,862	)
Redemption of senior notes			(59,068	)							(59,068	)
Proceeds from stock-based benefit plans	6,108										6,108
Purchase of treasury stock	(79	)									(79	)
Net cash (used in) provided by financing activities	6,029		(59,068	)	(10,112	)	(44,920	)	—		(108,071	)
Net (decrease) increase in cash and cash equivalents	—		—		(418,119	)	8,051		—		(410,068	)
Cash and cash equivalents, beginning of period					711,375		67,449				778,824
Cash and cash equivalents, end of period	—		—		293,256		75,500		—		368,756

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2012 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flow from operating activities:
Net (loss) income	(2,786	)	—		(2,782	)	1,689		1,093		(2,786	)
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization			794		4,419		16				5,229
Stock-based compensation	5,626										5,626
Income from unconsolidated entities					(7,729	)	1,042				(6,687	)
Distributions of earnings from unconsolidated entities					872						872
Income from distressed loans and foreclosed real estate							(4,138	)			(4,138	)
Deferred tax benefit	(1,246	)									(1,246	)
Deferred tax valuation allowance	1,246										1,246
Inventory impairments and write-offs					8,120						8,120
Change in fair value of mortgage loans receivable and derivative instruments							346				346
Gain on marketable securities					(39	)					(39	)
Changes in operating assets and liabilities
Increase in inventory					(100,509	)	(7,959	)			(108,468	)
Origination of mortgage loans							(120,662	)			(120,662	)
Sale of mortgage loans							146,895				146,895
(Increase) decrease in restricted cash	(28,307	)			650		(824	)			(28,481	)
Decrease (increase) in receivables, prepaid expenses and other assets	22,096		(4,793	)	(177,589	)	173,768		(1,701	)	11,781
Increase (decrease) in customer deposits					9,291		(6,061	)			3,230
Increase (decrease) in accounts payable and accrued expenses	(109	)	3,999		(11,553	)	(60,072	)	608		(67,127	)
Decrease in income taxes payable	(5,790	)									(5,790	)
Net cash (used in) provided by operating activities	(9,270	)	—		(276,849	)	124,040		—		(162,079	)
Cash flow used in investing activities:
Purchase of property and equipment — net					(2,563	)	(829	)			(3,392	)
Sale and redemption of marketable securities					88,217						88,217
Investments in and advances to unconsolidated entities					(256	)	(71,528	)			(71,784	)
Return of investments in unconsolidated entities					15,333						15,333
Investments in distressed loans and foreclosed real estate							(26,410	)			(26,410	)
Return of investments in distressed loans and foreclosed real estate							3,702				3,702
Acquisition of a business					(144,746	)					(144,746	)
Net cash used in investing activities	—		—		(44,015	)	(95,065	)	—		(139,080	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							199,139				199,139
Principal payments of loans payable					(12,520	)	(225,376	)			(237,896	)
Proceeds from stock-based benefit plans	9,334										9,334
Purchase of treasury stock	(64	)									(64	)
Net cash (used in) provided by financing activities	9,270		—		(12,520	)	(26,237	)	—		(29,487	)
Net (decrease) increase in cash and cash equivalents	—		—		(333,384	)	2,738		—		(330,646	)
Cash and cash equivalents, beginning of period	—				775,300		131,040				906,340
Cash and cash equivalents, end of period	—		—		441,916		133,778		—		575,694

XML

Accrued Expenses (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Changes in the warranty accrual
Balance, beginning of year	$ 41,706	$ 42,474
Additions - homes closed during the year	2,289	1,871
Addition - liabilities acquired		731
(Decrease) increase to accruals for homes closed in prior periods	(267)	1,783
Charges incurred	(2,487)	(3,750)
Balance, end of year	$ 41,241	$ 43,109

XML

Investments in and Advances to Unconsolidated Entities (Details Textual) (USD $)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Impairment Charges	$ 0	$ 0
Investments in joint ventures	321,851,000		330,617,000
Funding Commitments	91,894,000
Payments to Acquire Interest in Joint Venture	7,614,000	71,784,000
Aggregate exposure with respect to its estimated obligations	2,164,000		2,135,000
variable interest entity, number of entities, not primary beneficiary	2
Structured Asset Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in joint ventures	37,534,000		37,343,000
Joint Venture Description	is a 20% participant with two unrelated parties that purchased a 40% interest in an entity that owns and controls a portfolio of loans and real estate
Toll Brothers Inc. [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in joint ventures
Payments to Acquire Interest in Joint Venture
Development Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in joint ventures	106,368,000		116,452,000
Funding Commitments	13,500,000
Baker Ranch [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Funding Commitments	10,000,000
Aggregate Loan Commitments	80,000,000.00
Borrowed against Loan Commitments	50,700,000
Percentage ownership held by company	50.00%
unimproved lots controlled by JV	2,000
Condominium Joint Ventures [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in joint ventures	143,400,000
Funding Commitments	70,100,000
Guarantor Obligations, Maximum Exposure, Undiscounted	11,900,000
Condominium joint venture (three) [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Guarantor Obligations, Maximum Exposure, Undiscounted	9,800,000
Planned Community Joint Venture [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in joint ventures	31,600,000
Funding Commitments	8,300,000
Trust I [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in joint ventures	0
Owned by Third Party	33.30%
Percentage ownership held by company	33.30%
Percent owned by Company's Management	33.30%
Development finance and management services recognized during period	600,000	500,000
Trust II [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Investments in joint ventures	$ 3,000,000
Owned by Third Party	50.00%
Percentage ownership held by company	50.00%
Phase one [Member] | Baker Ranch [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of lots to be acquired from joint venture	266
Future phases [Member] | Baker Ranch [Member]
Investments in and Advances to Unconsolidated Entities (Textual) [Abstract]
Number of lots to be acquired from joint venture	545

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Fair Value Disclosures (Level 4 inventory fv) (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended					12 Months Ended
	Jan. 31, 2013	Oct. 31, 2012	Jul. 31, 2012	Apr. 30, 2012	Jan. 31, 2012	Oct. 31, 2012
Statement of Inventory [Line Items]
Number of Operating Communities Tested	60	108	115	115	113
Number of Communities Impaired	2	3	4	2	8
Fair Value of the Impaired Inventory	$ 5,377	$ 9,319	$ 6,609	$ 22,962	$ 49,758
Inventory Write-down	709				8,120
Operating communities [Member]
Statement of Inventory [Line Items]
Inventory Write-down	$ 700	$ 1,400	$ 2,685	$ 2,560	$ 6,425	$ 13,070

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012
Reconciliation of Company's effective tax rate from federal statutory rate
Federal tax (benefit) provision at statutory rate	$ 2,914	$ (2,243)
State taxes, net of federal benefit	346	(271)
Increase in unrecognized tax benefits		1,500
Reversal of accrual for uncertain tax positions		(5,279)
Income Tax Reconciliation Increase in Deferred Tax Assets Net		(525)
Valuation allowance - recognized		4,089
Valuation allowance - reversed	(216)	(2,843)	(394,718)
Accrued interest on anticipated tax assessments	1,166	1,950
Other	(316)
Income tax provision (benefit)	$ 3,894	$ (3,622)
Federal tax (benefit) provision at statutory rate, percentage	35.00%	35.00%
State taxes net of federal benefit, percentage	4.20%	4.20%
Effective Income Tax Rate Reconciliation Increase In Unrecognized Tax Benefit		23.40%
Reversal of accrual for uncertain tax positions, percentage		82.40%
Effective Income Tax Rate Reconciliation In Deferred Tax Assets		8.20%
Valuation allowance - recognized, percentage		(63.80%)
Valuation allowance - reversed, percentage	(2.60%)	44.30%
Accrued interest on anticipated tax assessments, percentage	14.00%	(30.40%)
Other, percentage	(3.80%)
Tax provision (benefit), percentage	46.80%	56.50%

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Geographic Segments (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended					12 Months Ended
	Jan. 31, 2013	Oct. 31, 2012	Jul. 31, 2012	Apr. 30, 2012	Jan. 31, 2012	Oct. 31, 2012
Inventory
Inventory impairments and write-offs	$ 709				$ 8,120
Inventory	4,155,047	3,761,187				3,761,187
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	321,851	330,617				330,617
(Recovery) impairment of investment in unconsolidated entities	0				0
Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	9				777
Inventory	54,521	56,300				56,300
Land owned for future communities [Member]
Inventory
Inventory impairments and write-offs	0				918
Inventory	1,253,102	1,040,373				1,040,373
Operating communities [Member]
Inventory
Inventory impairments and write-offs	700	1,400	2,685	2,560	6,425	13,070
Inventory	2,847,424	2,664,514				2,664,514
North [Member]
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	143,358	142,213				142,213
(Recovery) impairment of investment in unconsolidated entities
North [Member] | Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	88				24
Inventory	14,937	13,196				13,196
North [Member] | Land owned for future communities [Member]
Inventory
Inventory impairments and write-offs
Inventory	395,575	226,082				226,082
North [Member] | Operating communities [Member]
Inventory
Inventory impairments and write-offs	500				2,265
Inventory	855,440	803,085				803,085
Mid-Atlantic [Member] | Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	16				199
Inventory	26,031	27,249				27,249
Mid-Atlantic [Member] | Land owned for future communities [Member]
Inventory
Inventory impairments and write-offs
Inventory	474,446	431,620				431,620
Mid-Atlantic [Member] | Operating communities [Member]
Inventory
Inventory impairments and write-offs
Inventory	739,084	729,739				729,739
South [Member]
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	31,609	31,252				31,252
(Recovery) impairment of investment in unconsolidated entities
South [Member] | Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	355				555
Inventory	8,130	7,724				7,724
South [Member] | Land owned for future communities [Member]
Inventory
Inventory impairments and write-offs					918
Inventory	163,080	141,644				141,644
South [Member] | Operating communities [Member]
Inventory
Inventory impairments and write-offs					4,160
Inventory	633,822	603,239				603,239
West [Member]
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	106,368	116,452				116,452
(Recovery) impairment of investment in unconsolidated entities
West [Member] | Land controlled for future communities [Member]
Inventory
Inventory impairments and write-offs	(450)				(1)
Inventory	5,423	8,131				8,131
West [Member] | Land owned for future communities [Member]
Inventory
Inventory impairments and write-offs
Inventory	220,001	241,027				241,027
West [Member] | Operating communities [Member]
Inventory
Inventory impairments and write-offs	200
Inventory	619,078	528,451				528,451
Corporate and other [Member]
Investments in unconsolidated entities
Investments in and advances to unconsolidated entities	40,516	40,700				40,700
(Recovery) impairment of investment in unconsolidated entities

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Investments in and Advances to Unconsolidated Entities (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Condensed Balance Sheets:
Cash and cash equivalents	$ 128,942	$ 112,496
Inventory	579,421	555,928
Non-performing loan portfolio	185,142	226,315
Rental properties	170,406	173,767
Real estate owned ("REO")	262,273	254,250
Other assets	368,043	331,386
Total assets	1,694,227	1,654,142
Debt	661,534	638,206
Other liabilities	28,248	25,360
Member's equity	719,364	720,663
Non-controlling interest	285,081	269,913
Total liabilities and equity	1,694,227	1,654,142
Investments in and advances to unconsolidated entities	321,851	330,617
Development Joint Venture [Member]
Condensed Balance Sheets:
Cash and cash equivalents	21,573	17,189
Inventory	263,743	255,561
Non-performing loan portfolio
Rental properties
Real estate owned ("REO")
Other assets	10,389	12,427
Total assets	295,705	285,177
Debt	121,435	96,862
Other liabilities	14,174	13,890
Member's equity	160,096	174,425
Non-controlling interest
Total liabilities and equity	295,705	285,177
Investments in and advances to unconsolidated entities	106,368	116,452
Home Building Joint Ventures [Member]
Condensed Balance Sheets:
Cash and cash equivalents	33,450	40,126
Inventory	310,002	294,724
Non-performing loan portfolio
Rental properties
Real estate owned ("REO")
Other assets	71,319	72,301
Total assets	414,771	407,151
Debt	33,859	34,184
Other liabilities	8,225	5,707
Member's equity	372,687	367,260
Non-controlling interest
Total liabilities and equity	414,771	407,151
Investments in and advances to unconsolidated entities	174,967	173,465
Toll Brothers Realty Trust I and II [Member]
Condensed Balance Sheets:
Cash and cash equivalents	10,166	11,005
Inventory	5,676	5,643
Non-performing loan portfolio
Rental properties	170,406	173,767
Real estate owned ("REO")	1,036
Other assets	9,030	9,182
Total assets	196,314	199,597
Debt	194,439	195,359
Other liabilities	5,348	5,202
Member's equity	(3,473)	(964)
Non-controlling interest
Total liabilities and equity	196,314	199,597
Investments in and advances to unconsolidated entities	2,982	3,357
Structured Asset Joint Venture [Member]
Condensed Balance Sheets:
Cash and cash equivalents	63,753	44,176
Inventory
Non-performing loan portfolio	185,142	226,315
Rental properties
Real estate owned ("REO")	261,237	254,250
Other assets	277,305	237,476
Total assets	787,437	762,217
Debt	311,801	311,801
Other liabilities	501	561
Member's equity	190,054	179,942
Non-controlling interest	285,081	269,913
Total liabilities and equity	787,437	762,217
Investments in and advances to unconsolidated entities	$ 37,534	$ 37,343

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Income (Loss) Per Share Information (Tables)

3 Months Ended

Jan. 31, 2013

Earnings Per Share [Abstract]

Calculation of income per share

The table below provides, for the periods indicated, information pertaining to the calculation of income (loss) per share, common stock equivalents, weighted-average number of anti-dilutive options and shares issued (amounts in thousands):

	Three months ended January 31,
	2013	2012
Basic weighted-average shares (a)	169,064	166,311
Common stock equivalents (b)	2,839
Diluted weighted-average shares	171,903	166,311
Other information:
Common stock equivalents excluded from diluted weighted-average shares due to anti-dilutive effect (b)		796
Weighted-average number of anti-dilutive options (c)	980	6,727
Shares issued under stock incentive and employee stock purchase plans	523	942

(a) Basic weighted-average shares included the weighted-average number of shares outstanding for the period and vested shares issuable under restricted stock unit awards.

(b) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options and unvested shares issuable under restricted stock unit awards whose performance criteria, if any, have been met and are expected to be issued, using the treasury stock method. 5.9 million shares issuable upon the conversion of the Company's 0.5% Exchangeable Senior Notes are excluded from the calculation of diluted earnings per share because they are anti-dilutive.

(c) Based upon the average closing price of the Company’s common stock on the NYSE for the period.

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Supplemental Disclosure to Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Cash flow information:
Interest paid, net of amount capitalized	$ 6,801	$ 766
Income tax payment		2,093
Income tax refunds	469
Non-cash activity:
Cost of inventory acquired through seller financing municipal bonds or recorded due to VIE criteria, net	15,998	431
Miscellaneous decreases to inventory	(144)	(75)
Defined Benefit Plan, Plan Amendments	519	310
Non cash increase in accrued expenses related to RSU pay out	2,939
Increase of investments in unconsolidated entities due to increase/reduction in letters of credit or accrued liabilities	(24)	(26)
Transfer of Inventory to Investment in Non-Performing Loan Portfolios and Foreclosed Real Estate		802
Transfer of inventory to investment in unconsolidated entities		5,793
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	151	795
Miscellaneous increases (decreases) to investments in unconsolidated entities	86	(18)
Acquisition of a Business:
Fair value of assets purchased		149,959
Liabilities assumed		5,213
Cash paid		$ 144,746

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Other Income - Net (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Component of Other Income, Nonoperating [Line Items]
Interest income	$ 1,475	$ 914
Income from Ancillary Businesses	1,278	1,083
Income from Gibraltar	151	2,138
Management fee income	327	687
Retained customer deposits	678	654
Land sales, net	145
Other misc income	572	719
Total other income - net	4,626	6,195
Revenues and expenses of non-core ancillary businesses
Revenue	16,641	13,813
Expense	$ 15,363	$ 12,730

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Stock-Based Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based expense recognized	$ 5,684	$ 5,626
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 2,079	$ 2,061

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Commitments and Contingencies (Details Textual) (USD $)	3 Months Ended
	Jan. 31, 2013
Commitments and Contingencies (Additional Textual) [Abstract]
Outstanding letter of credit	78,800,000
Commitments and Contingencies (Textual) [Abstract]
Purchase commitments to acquire land for apartment development	93,300,000
Outstanding surety bonds	375,200,000
Amount of work remains on improvements in the Company's various communities	219,400,000
Additional outstanding surety bonds	61,300,000
Number of homes to be delivered	2,796
Aggregate sales value of outstanding homes to be delivered	1,860,000,000
Collateralized under credit facility [Member]
Commitments and Contingencies (Additional Textual) [Abstract]
Outstanding letter of credit	66,000,000
Collateralized by restricted cash [Member]
Commitments and Contingencies (Additional Textual) [Abstract]
Outstanding letter of credit	12,800,000
Baker Ranch [Member]
Commitments and Contingencies (Textual) [Abstract]
Percentage Ownership Held by Company	50.00%
Baker Ranch [Member] | Future phases [Member]
Commitments and Contingencies (Textual) [Abstract]
Number of lots to be acquired from joint venture	545

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Supplemental Guarantor Information (Level 4 BS) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012	Jan. 31, 2012	Oct. 31, 2011
ASSETS
Cash and cash equivalents	$ 368,756	$ 778,824	$ 575,694	$ 906,340
Marketable securities	424,819	439,068
Restricted cash	33,757	47,276
Inventory	4,155,047	3,761,187
Property, construction and office equipment, net	112,877	109,971
Receivables, prepaid expenses and other assets	152,881	144,558
Mortgage loans receivable	49,400	86,386
Customer deposits held in escrow	31,301	29,579
Investments in and advances to unconsolidated entities	321,851	330,617
Investments in distressed loans	42,832	37,169
Investments in foreclosed real estate	68,764	58,353	6,488	5,939
Investments in and advances to consolidated entities	0	0
Deferred tax assets, net of valuation allowances	355,966	358,056
Total assets	6,118,251	6,181,044
Liabilities:
Loans payable	93,314	99,817
Senior notes	2,021,897	2,080,463
Mortgage company warehouse loan	43,464	72,664
Customer deposits	156,758	142,977
Accounts payable	110,791	99,911
Accrued expenses	467,652	476,350
Income taxes payable	83,265	80,991
Total liabilities	2,977,141	3,053,173
Equity:
Common stock	1,692	1,687
Additional paid-in capital	412,242	404,418
Retained earnings	2,725,829	2,721,397
Treasury stock, at cost --1 share and 53 shares at January 31, 2013 and October 31, 2012, respectively	(38)	(983)
Accumulated other comprehensive loss	(4,803)	(4,819)
Total stockholders' equity	3,134,922	3,121,700
Noncontrolling interest	6,188	6,171
Total equity	3,141,110	3,127,871
Total liabilities and stockholders' equity	6,118,251	6,181,044
Toll Brothers Inc. [Member]
ASSETS
Cash and cash equivalents	0		0	0
Marketable securities
Restricted cash	15,060	28,268
Inventory
Property, construction and office equipment, net
Receivables, prepaid expenses and other assets	146	134
Mortgage loans receivable
Customer deposits held in escrow
Investments in and advances to unconsolidated entities
Investments in distressed loans
Investments in foreclosed real estate
Investments in and advances to consolidated entities	2,847,200	2,816,607
Deferred tax assets, net of valuation allowances	355,966	358,056
Total assets	3,218,372	3,203,065
Liabilities:
Loans payable
Senior notes
Mortgage company warehouse loan
Customer deposits
Accounts payable
Accrued expenses
Income taxes payable	83,265	80,991
Total liabilities	83,265	80,991
Equity:
Common stock	1,692	1,687
Additional paid-in capital	412,242	404,418
Retained earnings	2,725,829	2,721,397
Treasury stock, at cost --1 share and 53 shares at January 31, 2013 and October 31, 2012, respectively	(38)	(983)
Accumulated other comprehensive loss	(4,618)	(4,445)
Total stockholders' equity	3,135,107	3,122,074
Noncontrolling interest
Total equity	3,135,107	3,122,074
Total liabilities and stockholders' equity	3,218,372	3,203,065
Subsidiary Issuer [Member]
ASSETS
Cash and cash equivalents	0		0
Marketable securities
Restricted cash
Inventory
Property, construction and office equipment, net
Receivables, prepaid expenses and other assets	14,458	15,130
Mortgage loans receivable
Customer deposits held in escrow
Investments in and advances to unconsolidated entities
Investments in distressed loans
Investments in foreclosed real estate
Investments in and advances to consolidated entities	2,045,897	2,092,810
Deferred tax assets, net of valuation allowances
Total assets	2,060,355	2,107,940
Liabilities:
Loans payable
Senior notes	1,976,150	2,032,335
Mortgage company warehouse loan
Customer deposits
Accounts payable
Accrued expenses	37,526	27,476
Income taxes payable
Total liabilities	2,013,676	2,059,811
Equity:
Common stock
Additional paid-in capital	49,400	49,400
Retained earnings	(2,721)	(1,271)
Treasury stock, at cost --1 share and 53 shares at January 31, 2013 and October 31, 2012, respectively
Accumulated other comprehensive loss
Total stockholders' equity	46,679	48,129
Noncontrolling interest
Total equity	46,679	48,129
Total liabilities and stockholders' equity	2,060,355	2,107,940
Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	293,256	711,375	441,916	775,300
Marketable securities	364,585	378,858
Restricted cash	17,369	17,561
Inventory	3,859,964	3,527,677
Property, construction and office equipment, net	109,618	106,963
Receivables, prepaid expenses and other assets	74,673	77,175
Mortgage loans receivable
Customer deposits held in escrow	28,455	27,312
Investments in and advances to unconsolidated entities	64,931	70,145
Investments in distressed loans
Investments in foreclosed real estate
Investments in and advances to consolidated entities	(1,044,776)	(1,168,812)
Deferred tax assets, net of valuation allowances
Total assets	3,768,075	3,748,254
Liabilities:
Loans payable	78,308	69,393
Senior notes
Mortgage company warehouse loan
Customer deposits	148,085	136,225
Accounts payable	110,764	99,889
Accrued expenses	317,137	341,233
Income taxes payable
Total liabilities	654,294	646,740
Equity:
Common stock	48	48
Additional paid-in capital
Retained earnings	3,113,875	3,101,833
Treasury stock, at cost --1 share and 53 shares at January 31, 2013 and October 31, 2012, respectively
Accumulated other comprehensive loss	(142)	(367)
Total stockholders' equity	3,113,781	3,101,514
Noncontrolling interest
Total equity	3,113,781	3,101,514
Total liabilities and stockholders' equity	3,768,075	3,748,254
Non-Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	75,500	67,449	133,778	131,040
Marketable securities	60,234	60,210
Restricted cash	1,328	1,447
Inventory	295,083	233,510
Property, construction and office equipment, net	3,259	3,008
Receivables, prepaid expenses and other assets	77,665	68,300
Mortgage loans receivable	49,400	86,386
Customer deposits held in escrow	2,846	2,267
Investments in and advances to unconsolidated entities	256,920	260,472
Investments in distressed loans	42,832	37,169
Investments in foreclosed real estate	68,764	58,353
Investments in and advances to consolidated entities	(714,679)	(630,493)
Deferred tax assets, net of valuation allowances
Total assets	219,152	248,078
Liabilities:
Loans payable	15,006	30,424
Senior notes
Mortgage company warehouse loan	43,464	72,664
Customer deposits	8,673	6,752
Accounts payable	27	22
Accrued expenses	127,196	119,244
Income taxes payable
Total liabilities	194,366	229,106
Equity:
Common stock	3,006	3,006
Additional paid-in capital	1,734	1,734
Retained earnings	13,901	8,068
Treasury stock, at cost --1 share and 53 shares at January 31, 2013 and October 31, 2012, respectively
Accumulated other comprehensive loss	(43)	(7)
Total stockholders' equity	18,598	12,801
Noncontrolling interest	6,188	6,171
Total equity	24,786	18,972
Total liabilities and stockholders' equity	219,152	248,078
Eliminations [Member]
ASSETS
Cash and cash equivalents	0		0
Marketable securities
Restricted cash
Inventory
Property, construction and office equipment, net
Receivables, prepaid expenses and other assets	(14,061)	(16,181)
Mortgage loans receivable
Customer deposits held in escrow
Investments in and advances to unconsolidated entities
Investments in distressed loans
Investments in foreclosed real estate
Investments in and advances to consolidated entities	(3,133,642)	(3,110,112)
Deferred tax assets, net of valuation allowances
Total assets	(3,147,703)	(3,126,293)
Liabilities:
Loans payable
Senior notes	45,747	48,128
Mortgage company warehouse loan
Customer deposits
Accounts payable
Accrued expenses	(14,207)	(11,603)
Income taxes payable
Total liabilities	31,540	36,525
Equity:
Common stock	(3,054)	(3,054)
Additional paid-in capital	(51,134)	(51,134)
Retained earnings	(3,125,055)	(3,108,630)
Treasury stock, at cost --1 share and 53 shares at January 31, 2013 and October 31, 2012, respectively
Accumulated other comprehensive loss
Total stockholders' equity	(3,179,243)	(3,162,818)
Noncontrolling interest
Total equity	(3,179,243)	(3,162,818)
Total liabilities and stockholders' equity	$ (3,147,703)	$ (3,126,293)

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Geographic Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012
Revenues
Revenues	$ 424,601	$ 321,955
Income (loss) before income taxes
Income (loss) before income taxes	8,326	(6,408)
Total assets
Total assets	6,118,251		6,181,044
North [Member]
Revenues
Revenues	92,670	75,580
Income (loss) before income taxes
Income (loss) before income taxes	7,242	1,201
Total assets
Total assets	1,430,831		1,205,900
Mid-Atlantic [Member]
Revenues
Revenues	132,151	100,799
Income (loss) before income taxes
Income (loss) before income taxes	15,095	10,642
Total assets
Total assets	1,349,624		1,304,798
South [Member]
Revenues
Revenues	87,185	76,466
Income (loss) before income taxes
Income (loss) before income taxes	2,725	(2,077)
Total assets
Total assets	869,325		821,001
West [Member]
Revenues
Revenues	112,595	69,110
Income (loss) before income taxes
Income (loss) before income taxes	8,047	5,603
Total assets
Total assets	959,673		913,699
Corporate and other [Member]
Income (loss) before income taxes
Income (loss) before income taxes	(24,783)	(21,777)
Total assets
Total assets	$ 1,508,798		$ 1,935,646

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Fair Value Disclosures (Level 4 Gibraltar) (Details 5) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Carrying value and estimated fair value of distressed loans
Investments in distressed loans	$ 42,832	$ 37,169
Investment in distressed loans, fair value	$ 44,065	$ 38,109

XML

Inventory (Tables)

3 Months Ended

Jan. 31, 2013

Inventory Disclosure [Abstract]

Inventory

Inventory at January 31, 2013 and October 31, 2012 consisted of the following (amounts in thousands):

	January 31, 2013		October 31, 2012
Land controlled for future communities	$	54,521	$	56,300
Land owned for future communities	1,253,102		1,040,373
Operating communities	2,847,424		2,664,514
	$	4,155,047	$	3,761,187

Temporarily Closed communities

Information regarding the classification, number and carrying value of these temporarily closed communities, as of the date indicated, is provided in the table below.

	January 31, 2013		October 31, 2012
Land owned for future communities:
Number of communities	24		40
Carrying value (in thousands)	$	159,931	$	240,307
Operating communities:
Number of communities	21		5
Carrying value (in thousands)	$	108,143	$	34,685

Inventory impairment charges and expensing of costs that it is believed not to be recoverable

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable, for the periods indicated; these are shown in the table below (amounts in thousands).

	Three months ended January 31,
	2013		2012
Charge:
Land controlled for future communities	$	9	$	777
Land owned for future communities	—		918
Operating communities	700		6,425
	$	709	$	8,120

Interest incurred, capitalized and expensed

Interest incurred, capitalized and expensed, for the periods indicated, was as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Interest capitalized, beginning of period	$	330,581		$	298,757
Interest incurred	31,748			28,899
Interest expensed to cost of revenues	(19,974		)	(16,321		)
Write-off against other income	(88		)
Interest capitalized on investments in unconsolidated entities	(1,363		)
Interest capitalized, end of period	$	340,904		$	311,335

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Investments in Distressed Loans and Foreclosed Real Estate (Details Textual) (USD $)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012
Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate (Textual) [Abstract]
Investment in performing loans	$ 14,000,000		$ 0
Financing Receivable, Recorded Investment, Nonaccrual Status	6,000,000		9,200,000
Aggregate purchase price, loans acquired during period	16,100,000
Real Estate Held-for-sale	5,900,000	1,300,000
Real Estate Owned Held And Used	62,800,000	5,200,000
Gains (losses) upon acquisition of REO	600,000	0
Income from Gibraltar	$ 151,000	$ 2,138,000

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Inventory (Details 1) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013 communities	Oct. 31, 2012 communities
Land owned for future communities [Member]
Temporarily Closed communities
Number of Communities (in ones)	24	40
Carrying Value	$ 159,931	$ 240,307
Operating communities [Member]
Temporarily Closed communities
Number of Communities (in ones)	21	5
Carrying Value	$ 108,143	$ 34,685

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Commitments and Contingencies (Details 1) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Company's mortgage commitments
Aggregate mortgage loan commitments	$ 681,415	$ 567,998
Investor commitments to purchase	173,113	191,870
Mortgage loans receivable [Member]
Company's mortgage commitments
Investor commitments to purchase	45,090	80,697
Interest Rate Lock Commitments [Member]
Company's mortgage commitments
Aggregate mortgage loan commitments	128,023	111,173
Investor commitments to purchase	128,023	111,173
Non IRLC [Member]
Company's mortgage commitments
Aggregate mortgage loan commitments	$ 553,392	$ 456,825

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Geographic Segments (Tables)

3 Months Ended

Jan. 31, 2013

Segment Reporting [Abstract]

Revenue and income (loss) before income taxes and total assets

Revenue and income (loss) before income taxes for each of the Company’s geographic segments, for the periods indicated, were as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Revenue:
North	$	92,670		$	75,580
Mid-Atlantic	132,151			100,799
South	87,185			76,466
West	112,595			69,110
Total	$	424,601		$	321,955
Income (loss) before income taxes:
North	$	7,242		$	1,201
Mid-Atlantic	15,095			10,642
South	2,725			(2,077		)
West	8,047			5,603
Corporate and other	(24,783		)	(21,777		)
Total	$	8,326		$	(6,408	)

Total assets for each of the Company’s geographic segments, as of the date indicated, are shown in the table below (amounts in thousands).

	January 31, 2013		October 31, 2012
North	$	1,430,831	$	1,205,900
Mid-Atlantic	1,349,624		1,304,798
South	869,325		821,001
West	959,673		913,699
Corporate and other	1,508,798		1,935,646
Total	$	6,118,251	$	6,181,044

Inventory impairment charges, net carrying value of investing, and write-downs of investments

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable and write-downs of investments in unconsolidated entities (including the Company's pro-rata share of impairment charges recognized by the unconsolidated entities in which it has an investment) and recoveries of prior charges for the periods indicated, as shown in the table below; the net carrying value of inventory and investments in and advances to unconsolidated entities for each of the Company’s geographic segments, as of the dates indicated, are also shown in the table below (amounts in thousands):

	Net Carrying Value				Impairments
	At January 31,		At October 31,		Three months ended January 31,
	2013		2012		2013			2012
Inventory:
Land controlled for future communities:
North	$	14,937	$	13,196	$	88		$	24
Mid-Atlantic	26,031		27,249		16			199
South	8,130		7,724		355			555
West	5,423		8,131		(450		)	(1		)
	54,521		56,300		9			777
Land owned for future communities:
North	395,575		226,082
Mid-Atlantic	474,446		431,620
South	163,080		141,644					918
West	220,001		241,027
	1,253,102		1,040,373		—			918
Operating communities:
North	855,440		803,085		500			2,265
Mid-Atlantic	739,084		729,739
South	633,822		603,239					4,160
West	619,078		528,451		200
	2,847,424		2,664,514		700			6,425
Total	$	4,155,047	$	3,761,187	$	709		$	8,120
Investments in and advances to unconsolidated entities:
North	$	143,358	$	142,213
South	31,609		31,252
West	106,368		116,452
Corporate	40,516		40,700
Total	$	321,851	$	330,617	$	—		$	—

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Senior Notes Payable and Mortgage Company Loan Facilities Revolving Credit Agreement (Details Textual) (Mortgage Credit Facility [Member], USD $)	12 Months Ended
	Jul. 23, 2013	Jan. 31, 2013
Mortgage Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 50,000,000
Mortgage Loan Facility Maximum Borrowing Capacity Increased		$ 75,000,000
Interest Rate on Loan Commitments in Addition to Libor	2.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	3.00%

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Fair Value Disclosures (Level 4 loan UPB vs FV) (Details 1) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Aggregate unpaid principal and fair value of mortgage loans held for sale
Aggregate unpaid principal balance	$ 49,304	$ 84,986
Mortgage Loans on Real Estate, Commercial and Consumer, Net	49,400	86,386
Excess	96	1,400
Fair Value, Inputs, Level 2 [Member]
Aggregate unpaid principal and fair value of mortgage loans held for sale
Mortgage Loans on Real Estate, Commercial and Consumer, Net	$ 49,400	$ 86,386

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Stock-Based Benefit Plans (Details 4) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Dec. 14, 2012	Oct. 31, 2012	Dec. 20, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based expense recognized	$ 5,684	$ 5,626
Non-Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units issued	94,080	107,820
Closing Price of Company Common Stock at Issuance Date			$ 32.22		$ 20.50
Fair value of restricted stock units issued	3,031	2,210
Stock based expense recognized	1,112	314
Summary of aggregate number and unamortized value of outstanding stock price based RSUs
Aggregate outstanding RSUs	230,214			137,764
Unamortized value of RSUs	$ 3,209			$ 1,326

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Investments in and Advances to Unconsolidated Entities (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012
Condensed Statements of Operations:
Revenues	$ 29,984	$ 74,623
Cost of revenues	22,955	63,975
Other expenses	7,208	10,586
Total expenses - net	30,163	74,561
Loss/ Gain on disposition of loans and REO	26,892	(44)
Income (loss) from operations	26,713	18
Other income	101	2,795
Net income (loss) before noncontrolling interest	26,814	2,813
Less: Net income attributable to noncontrolling interest	(15,168)	3,283
Net income (loss)	11,646	6,096
equity method summarized financial information other comprehensive income	302	(447)
Equity method summarized financial information comprehensive income (loss)	11,948	5,649
Company's equity in (losses) earnings of unconsolidated entities (3)	3,083	6,687
Development Joint Venture [Member]
Condensed Statements of Operations:
Revenues	1,627	33,584
Cost of revenues	1,219	31,771
Other expenses	191	225
Total expenses - net	1,410	31,996
Loss/ Gain on disposition of loans and REO
Income (loss) from operations	217	1,588
Other income	3	2,653
Net income (loss) before noncontrolling interest	220	4,241
Less: Net income attributable to noncontrolling interest
Net income (loss)	220	4,241
equity method summarized financial information other comprehensive income
Equity method summarized financial information comprehensive income (loss)	220	4,241
Company's equity in (losses) earnings of unconsolidated entities (3)	(98)	1,996
Home Building Joint Ventures [Member]
Condensed Statements of Operations:
Revenues	8,970	23,430
Cost of revenues	7,105	17,794
Other expenses	193	945
Total expenses - net	7,298	18,739
Loss/ Gain on disposition of loans and REO
Income (loss) from operations	1,672	4,691
Other income	19	5
Net income (loss) before noncontrolling interest	1,691	4,696
Less: Net income attributable to noncontrolling interest
Net income (loss)	1,691	4,696
equity method summarized financial information other comprehensive income
Equity method summarized financial information comprehensive income (loss)	1,691	4,696
Company's equity in (losses) earnings of unconsolidated entities (3)	843	4,520
Toll Brothers Realty Trust I and II [Member]
Condensed Statements of Operations:
Revenues	9,682	9,476
Cost of revenues	4,293	3,343
Other expenses	5,766	6,785
Total expenses - net	10,059	10,128
Loss/ Gain on disposition of loans and REO
Income (loss) from operations	(377)	(652)
Other income
Net income (loss) before noncontrolling interest	(377)	(652)
Less: Net income attributable to noncontrolling interest
Net income (loss)	(377)	(652)
equity method summarized financial information other comprehensive income	302	(447)
Equity method summarized financial information comprehensive income (loss)	(75)	(1,099)
Company's equity in (losses) earnings of unconsolidated entities (3)	425	623
Structured Asset Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Restricted Cash Held in Defeasance Account Used to Repay Debt	277,300		237,500
Condensed Statements of Operations:
Revenues	9,705	8,133
Cost of revenues	10,338	11,067
Other expenses	1,058	2,631
Total expenses - net	11,396	13,698
Loss/ Gain on disposition of loans and REO	26,892	(44)
Income (loss) from operations	25,201	(5,609)
Other income	79	137
Net income (loss) before noncontrolling interest	25,280	(5,472)
Less: Net income attributable to noncontrolling interest	(15,168)	3,283
Net income (loss)	10,112	(2,189)
equity method summarized financial information other comprehensive income
Equity method summarized financial information comprehensive income (loss)	10,112	(2,189)
Company's equity in (losses) earnings of unconsolidated entities (3)	$ 1,913	$ (452)

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Investments in and Advances to Unconsolidated Entities

3 Months Ended

Jan. 31, 2013

Investments in and Advances to Unconsolidated Entities [Abstract]

Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

Investments in and Advances to Unconsolidated Entities

The Company has investments in and advances to various unconsolidated entities. At January 31, 2013, the Company had investments in and advances to various unconsolidated entities of $321.9 million, and was committed to invest or advance $91.9 million to these entities if they require additional funding. At January 31, 2013, the Company had accrued $2.2 million of aggregate exposure with respect to its estimated obligations to unconsolidated entities in which it has an investment. More information regarding its investments in, advances to and future commitments to these entities is provided below.

At January 31, 2013, the Company determined that two of its joint ventures were VIEs under the guidance within FASB Accounting Standards Codification ("ASC") 810, "Consolidation". However, the Company concluded that it was not the primary beneficiary of the VIEs because the power to direct the activities of these VIEs that most significantly impact their performance was shared by the Company and the VIEs' other members. Business plans, budgets and other major decisions are required to be unanimously approved by all members. Management and other fees earned by the Company are nominal and believed to be at market rates and there is no significant economic disproportionality between the Company and other members.

The Company’s investments in these entities are accounted for using the equity method of accounting.

Development Joint Ventures

The Company has investments in and advances to a number of joint ventures with unrelated parties to develop land (“Development Joint Ventures”). Some of these Development Joint Ventures develop land for the sole use of the venture participants, including the Company, and others develop land for sale to the joint venture participants and to unrelated builders. The Company recognizes its share of earnings from the sale of home sites by the Development Joint Ventures to other builders. With regard to home sites the Company purchases from the Development Joint Ventures, the Company reduces its cost basis in those home sites by its share of the earnings on the home sites it purchases. At January 31, 2013, the Company had approximately $106.4 million invested in or advanced to the Development Joint Ventures. In addition, at January 31, 2013, the Company had a funding commitment of $13.5 million to two Development Joint Ventures which would be funded if additional investment in the ventures is required.

The Company has a 50% interest in a joint venture that is developing over 2,000 home sites in Orange County, California on land that it owns. Under the terms of the operating agreement, the Company will acquire 266 home sites in the first phase of the property from the joint venture. The Company intends to acquire approximately 545 additional home sites from the joint venture. The Company has a commitment to provide up to $10 million of additional funds to this joint venture, if needed. The joint venture has an $80 million credit facility from a bank to fund the development of the property; at January 31, 2013, the venture had $50.7 million borrowed under the facility. The Company executed a limited completion and a limited repayment guarantee under the loan agreement. The obligations under the guarantees are joint and several and contain a right of contribution agreement of each partner.

Planned Community Joint Venture

The Company entered into a joint venture in October 2008 for the development and sale of homes in a master planned community. At January 31, 2013, the Company had an investment of $31.6 million in this joint venture. At January 31, 2013, the participants agreed to contribute additional funds of up to $8.3 million each, if required.

Other Joint Ventures

At January 31, 2013, the Company had an aggregate of $143.4 million of investments in and advances to various joint ventures with unrelated parties to develop luxury for-sale and rental residential units, commercial space and a hotel. At At January 31, 2013, the Company had $70.1 million of funding commitments to three of these joint ventures. Several of the joint ventures expect to finance future construction with external financing. In addition, the Company has guaranteed approximately $11.9 million of joint venture liabilities, including approximately $9.8 million of payments related to a ground lease.

Toll Brothers Realty Trust and Trust II

In fiscal 2005, the Company, together with the Pennsylvania State Employees Retirement System (“PASERS”), formed Toll Brothers Realty Trust II (“Trust II”) to be in a position to invest in commercial real estate opportunities. Trust II is owned 50% by the Company and 50% by an affiliate of PASERS. At January 31, 2013, the Company had an investment of $3.0 million in Trust II. Prior to the formation of Trust II, the Company formed Toll Brothers Realty Trust (“Trust”) in 1998 to invest in commercial real estate opportunities. The Trust is effectively owned one-third by the Company; one-third by Robert I. Toll, Bruce E. Toll (and members of his family), Douglas C. Yearley, Jr. and former members of the Company’s senior management; and one-third by an affiliate of PASERS (collectively, the “Shareholders”). As of January 31, 2013, the Company had a net investment in the Trust of $20 thousand. The Company provides development, finance and management services to the Trust and recognized fees under the terms of various agreements in the amounts of $0.6 million and $0.5 million in the three-month periods ended January 31, 2013 and 2012, respectively.

Structured Asset Joint Venture

The Company, through Gibraltar Capital and Asset Management LLC (“Gibraltar”), is a 20% participant with two unrelated parties that purchased a 40% interest in an entity that owns and controls a portfolio of loans and real estate (“Structured Asset Joint Venture”). At January 31, 2013, the Company had an investment of $37.5 million in this Structured Asset Joint Venture. At January 31, 2013, the Company did not have any commitments to make additional contributions to this Structured Asset Joint Venture and has not guaranteed any of the joint venture’s liabilities.

The condensed consolidated balance sheets, as of the dates indicated, and the condensed consolidated statements of operations, for the periods indicated, for the Company’s unconsolidated entities in which it has an investment, aggregated by type of business, are included below (in thousands). The column titled "Home Building Joint Ventures" includes the Planned Community and Other Joint Ventures described above.

Condensed Balance Sheets:

	January 31, 2013
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture		Total
Cash and cash equivalents	$	21,573	$	33,450	$	10,166		$	63,753	$	128,942
Inventory	263,743		310,002		5,676					579,421
Non-performing loan portfolio								185,142		185,142
Rental properties					170,406					170,406
Real estate owned (“REO”)					1,036			261,237		262,273
Other assets (1)	10,389		71,319		9,030			277,305		368,043
Total assets	$	295,705	$	414,771	$	196,314		$	787,437	$	1,694,227
Debt (1)	$	121,435	$	33,859	$	194,439		$	311,801	$	661,534
Other liabilities	14,174		8,225		5,348			501		28,248
Members’ equity (deficit)	160,096		372,687		(3,473		)	190,054		719,364
Noncontrolling interest								285,081		285,081
Total liabilities and equity	$	295,705	$	414,771	$	196,314		$	787,437	$	1,694,227
Company’s net investment in unconsolidated entities (2)	$	106,368	$	174,967	$	2,982		$	37,534	$	321,851

	October 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture		Total
Cash and cash equivalents	$	17,189	$	40,126	$	11,005		$	44,176	$	112,496
Inventory	255,561		294,724		5,643					555,928
Non-performing loan portfolio								226,315		226,315
Rental properties					173,767					173,767
Real estate owned (“REO”)								254,250		254,250
Other assets (1)	12,427		72,301		9,182			237,476		331,386
Total assets	$	285,177	$	407,151	$	199,597		$	762,217	$	1,654,142
Debt (1)	$	96,862	$	34,184	$	195,359		$	311,801	$	638,206
Other liabilities	13,890		5,707		5,202			561		25,360
Members’ equity (deficit)	174,425		367,260		(964		)	179,942		720,663
Noncontrolling interest								269,913		269,913
Total liabilities and equity	$	285,177	$	407,151	$	199,597		$	762,217	$	1,654,142
Company’s net investment in unconsolidated entities (2)	$	116,452	$	173,465	$	3,357		$	37,343	$	330,617

(1) Included in other assets of the Structured Asset Joint Venture at January 31, 2013 and October 31, 2012 is $277.3 million and $237.5 million, respectively, of restricted cash held in a defeasance account which will be used to repay debt of the Structured Asset Joint Venture.

(2) Differences between the Company’s net investment in unconsolidated entities and its underlying equity in the net assets of the entities is primarily a result of the acquisition price of an investment in an entity in fiscal 2012 which was in excess of the Company's pro-rata share of the underlying equity, impairments related to the Company’s investments in unconsolidated entities, a loan made to one of the entities by the Company, and distributions from entities in excess of the carrying amount of the Company’s net investment.

Condensed Statements of Operations and Comprehensive Income (Loss):

	For the three months ended January 31, 2013
	Develop- ment Joint Ventures			Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture			Total
Revenues	$	1,627		$	8,970	$	9,682		$	9,705		$	29,984
Cost of revenues	1,219			7,105		4,293			10,338			22,955
Other expenses	191			193		5,766			1,058			7,208
Total expenses—net	1,410			7,298		10,059			11,396			30,163
Gain on disposition of loans and REO									26,892			26,892
Income (loss) from operations	217			1,672		(377		)	25,201			26,713
Other income	3			19					79			101
Net income (loss) before noncontrolling interest	220			1,691		(377		)	25,280			26,814
Less: Net income attributable to noncontrolling interest									(15,168		)	(15,168		)
Net income (loss)	220			1,691		(377		)	10,112			11,646
Other comprehensive income						302						302
Total comprehensive income (loss)	$	220		$	1,691	$	(75	)	$	10,112		$	11,948
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	(98	)	$	843	$	425		$	1,913		$	3,083

	For the three months ended January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture			Total
Revenues	$	33,584	$	23,430	$	9,476		$	8,133		$	74,623
Cost of revenues	31,771		17,794		3,343			11,067			63,975
Other expenses	225		945		6,785			2,631			10,586
Total expenses—net	31,996		18,739		10,128			13,698			74,561
Loss on disposition of loans and REO								(44		)	(44		)
Income (loss) from operations	1,588		4,691		(652		)	(5,609		)	18
Other income	2,653		5					137			2,795
Net income (loss) before noncontrolling interest	4,241		4,696		(652		)	(5,472		)	2,813
Less: Net loss attributable to noncontrolling interest								3,283			3,283
Net income (loss)	4,241		4,696		(652		)	(2,189		)	6,096
Other comprehensive loss					(447		)				(447		)
Total comprehensive income (loss)	$	4,241	$	4,696	$	(1,099	)	$	(2,189	)	$	5,649
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	1,996	$	4,520	$	623		$	(452	)	$	6,687

(3) Differences between the Company’s equity in earnings (losses) of unconsolidated entities and the Company's percentage interest in the underlying net income (loss) of the entities is primarily a result of impairments related to the Company’s investment in unconsolidated entities, distributions from entities in excess of the carrying amount of the Company’s net investment, and the Company’s share of the entities’ profits related to home sites purchased by the Company which reduces the Company’s cost basis of the home sites.

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Stock-Based Benefit Plans (Details Textual) (USD $)	3 Months Ended		3 Months Ended
	Jan. 31, 2013	Oct. 31, 2012	Jan. 31, 2013 Performance Based Restricted Stock Units [Member]	Jan. 31, 2012 Performance Based Restricted Stock Units [Member]	Jan. 31, 2013 Stock Price Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Gross shares awarded related to restricted stock					200,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Stock Based Benefit Plans (Textual) [Abstract]
Minimum percentage of units issued to the recipients of the base award	90.00%
Maximum percentage of units issued to the recipients of the base award	110.00%
Stock Based Benefit Plans (Additional Textual) [Abstract]
Aggregate unamortized value of outstanding stock based compensation awards	$ 32,600,000	$ 14,200,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures			$ 10,937,000	$ 7,185,000

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Inventory Inventory (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended					12 Months Ended
	Jan. 31, 2013	Oct. 31, 2012	Jul. 31, 2012	Apr. 30, 2012	Jan. 31, 2012	Oct. 31, 2012
Schedule Of Inventory [Line Items]
Inventory Write-down	$ 709				$ 8,120
Land controlled for future communities [Member]
Schedule Of Inventory [Line Items]
Inventory Write-down	9				777
Land Owned for Future Communities [Member]
Schedule Of Inventory [Line Items]
Inventory Write-down	0				918
Operating communities [Member]
Schedule Of Inventory [Line Items]
Inventory Write-down	$ 700	$ 1,400	$ 2,685	$ 2,560	$ 6,425	$ 13,070

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Income Taxes (Tables)

3 Months Ended

Jan. 31, 2013

Income Tax Disclosure [Abstract]

Reconciliation of Company's effective tax rate from federal statutory rate

The tables below provide, for the periods indicated, reconciliations of the Company’s effective tax rate from the federal statutory tax rate (amounts in thousands).

	Three months ended January 31,
	2013				2012
	$		%*		$		%*
Federal tax provision (benefit) at statutory rate	2,914		35.0		(2,243	)	35.0
State tax provision (benefit), net of federal provision (benefit)	346		4.2		(271	)	4.2
Increase in unrecognized tax benefits					1,500		(23.4	)
Reversal of accrual for uncertain tax positions					(5,279	)	82.4
Increase in deferred tax assets – net					(525	)	8.2
Valuation allowance – recognized					4,089		(63.8	)
Valuation allowance – reversed	(216	)	(2.6	)	(2,843	)	44.3
Accrued interest on anticipated tax assessments	1,166		14.0		1,950		(30.4	)
Other	(316	)	(3.8	)
Income tax provision (benefit)	3,894		46.8		(3,622	)	56.5

* Due to rounding, amounts may not add.

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Accrued Expenses (Tables)

3 Months Ended

Jan. 31, 2013

Payables and Accruals [Abstract]

Accrued expenses

Accrued expenses at January 31, 2013 and October 31, 2012 consisted of the following (amounts in thousands):

	January 31, 2013		October 31, 2012
Land, land development and construction	$	119,804	$	124,731
Compensation and employee benefit	94,627		111,093
Insurance and litigation	102,135		101,908
Commitments to unconsolidated entities	2,164		2,135
Warranty	41,241		41,706
Interest	38,366		28,204
Other	69,315		66,573
	$	467,652	$	476,350

Changes in the warranty accrual

The table below provides, for the periods indicated, a reconciliation of the changes in the Company’s warranty accrual (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	41,706		$	42,474
Additions – homes closed during the period	2,289			1,871
Addition – liabilities acquired				731
(Decrease) increase in accruals for homes closed in prior periods	(267		)	1,783
Charges incurred	(2,487		)	(3,750		)
Balance, end of period	$	41,241		$	43,109

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Income Taxes (Details Textual) (USD $)	3 Months Ended		12 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012
Income Taxes (Textual) [Abstract]
State taxes net of federal benefit, percentage	6.40%	6.50%
Income Tax Reconciliation Decrease in Deferred Tax Assets Valuation Allowance	$ 216,000	$ 2,843,000	$ 394,718,000
Recognized cumulative valuation allowances against state deferred tax assets	$ 56,800,000		$ 57,000,000
Number of states	19

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Inventory (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Inventory Disclosure [Abstract]
Interest capitalized, beginning of period	$ 330,581	$ 298,757
Interest incurred	31,748	28,899
Interest expensed to cost of revenues	(19,974)	(16,321)
Write-off against other income	(88)
Capitalized interest on investments in unconsolidated entities	(1,363)
Interest capitalized, end of period	$ 340,904	$ 311,335

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Stock-Based Benefit Plans (Tables)

3 Months Ended

Jan. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based compensation expense recognized and estimated amount to be recognized

Information regarding the amount of total stock-based compensation expense and tax benefit recognized by the Company, for the periods indicated, is as follows (amounts in thousands):

	Three months ended January 31,
	2013		2012
Total stock-based compensation expense recognized	$	5,684	$	5,626
Income tax benefit recognized	$	2,079	$	2,061

Weighted-average assumptions and the fair value used for stock option grants

The weighted-average assumptions and the fair value used for stock option grants in fiscal 2013 and 2012 were as follows:

	2013	2012
Expected volatility	44.04%-48.13%	44.20% - 50.24%
Weighted-average volatility	46.70%	46.99%
Risk-free interest rate	0.64%-1.56%	0.78% - 1.77%
Expected life (years)	4.48-8.88	4.59 - 9.06
Dividends	none	none
Weighted-average grant date fair value per share of options granted	$13.05	$8.70

Stock based compensation expense recognized for stock options [Table Text Block]

Stock compensation expense, related to stock options, for the periods indicated, was as follows (amounts in thousands):

	2013		2012
Three months ended January 31,	$	3,475	$	3,522

Performance-based restricted stock units

The Company evaluates the performance goals quarterly and estimates the number of shares underlying the Performance-Based RSUs that are probable of being issued. Information regarding the issuance, valuation assumptions and amortization of the Company’s Performance-Based RSUs issued in fiscal 2013 and 2012 is provided below.

	2013		2012
Estimated number of shares underlying Performance-Based RSUs to be issued	289,490		350,000
Closing price of the Company’s common stock on date performance goals were approved	$	37.78	$	20.50
Estimated aggregate fair value of Performance-Based RSUs to be issued (in thousands)	$	10,937	$	7,185
Performance-Based RSU expense recognized in the three months ended January 31, (in thousands):	$	514	$	936
Unamortized value of Performance-Based RSUs at January 31, (in thousands):	$	14,059	$	6,249

Stock price-based restricted stock units

Information regarding the amortization of the Company’s Stock Price-Based RSUs, for the periods indicated, is provided below (amounts in thousands).

	2013		2012
Three months ended January 31,	$	562	$	848

Information regarding the aggregate number of outstanding Stock Price-Based RSUs and aggregate unamortized value of the outstanding Stock Price-Based RSUs, as of the date indicated, is provided below.

	January 31, 2013		October 31, 2012
Aggregate outstanding Stock Price-Based RSUs	306,000		506,000
Cumulative unamortized value of Stock Price-Based RSUs (in thousands)	$	1,480	$	2,042

Non-performance based restricted stock units

The value of the RSUs was determined to be equal to the number of shares of the Company’s common stock to be issued pursuant to the RSUs, multiplied by the closing price of the Company’s common stock on the NYSE on the date the RSUs were awarded. Information regarding these RSUs issued in the three months ended January 31, 2013 and 2012 is as follows:

	2013		2012
Number of RSUs issued	94,080		107,820
Closing price of the Company’s common stock on date of issuance	$	32.22	$	20.50
Aggregate fair value of RSUs issued (in thousands)	$	3,031	$	2,210

Information regarding the amortization of the Company’s RSUs, for the periods indicated, is as follows (amounts in thousands):

	2013		2012
Three months ended January 31,	$	1,112	$	314

Information regarding the aggregate number of outstanding RSUs and aggregate unamortized value of the outstanding RSUs, as of the date indicated, is as follows:

	January 31, 2013		October 31, 2012
Aggregate outstanding RSUs	230,214		137,764
Cumulative unamortized value of RSUs (in thousands)	$	3,209	$	1,326

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Employee Retirement Plans (Tables)

3 Months Ended

Jan. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Costs and payments related to supplemental retirement plans

The table below provides, for the periods indicated, costs recognized and payments made related to its SERPs (amounts in thousands):

	Three months ended January 31,
	2013		2012
Service cost	$	118	$	97
Interest cost	261		303
Amortization of prior service obligation	210		184
Amortization of unrecognized losses	36		17
Total costs	$	625	$	601
Benefits paid	$	233	$	115

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Inventory

3 Months Ended

Jan. 31, 2013

Inventory Disclosure [Abstract]

Inventory

Inventory

Inventory at January 31, 2013 and October 31, 2012 consisted of the following (amounts in thousands):

	January 31, 2013		October 31, 2012
Land controlled for future communities	$	54,521	$	56,300
Land owned for future communities	1,253,102		1,040,373
Operating communities	2,847,424		2,664,514
	$	4,155,047	$	3,761,187

Operating communities include communities offering homes for sale, communities that have sold all available home sites but have not completed delivery of the homes, communities that were previously offering homes for sale but are temporarily closed due to business conditions or non-availability of improved home sites and that are expected to reopen within twelve months of the end of the fiscal period being reported on, and communities preparing to open for sale. The carrying value attributable to operating communities includes the cost of homes under construction, land and land development costs, the carrying cost of home sites in current and future phases of these communities and the carrying cost of model homes.

Communities that were previously offering homes for sale but are temporarily closed due to business conditions that do not have any remaining backlog and are not expected to reopen within twelve months of the end of the fiscal period being reported on have been classified as land owned for future communities.

Information regarding the classification, number and carrying value of these temporarily closed communities, as of the date indicated, is provided in the table below.

	January 31, 2013		October 31, 2012
Land owned for future communities:
Number of communities	24		40
Carrying value (in thousands)	$	159,931	$	240,307
Operating communities:
Number of communities	21		5
Carrying value (in thousands)	$	108,143	$	34,685

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable, for the periods indicated; these are shown in the table below (amounts in thousands).

	Three months ended January 31,
	2013		2012
Charge:
Land controlled for future communities	$	9	$	777
Land owned for future communities	—		918
Operating communities	700		6,425
	$	709	$	8,120

See Note 12, "Fair Value Disclosures", for information regarding the number of operating communities that the Company tested for potential impairment, the number of operating communities in which it recognized impairment charges, the amount of impairment charges recognized, and the fair values of those communities, net of impairment charges.

At January 31, 2013, the Company evaluated its land purchase contracts to determine if any of the selling entities were variable interest entities ("VIEs") and, if they were, whether the Company was the primary beneficiary of any of them. Under these land purchase contracts, the Company does not possess legal title to the land and its risk is generally limited to deposits paid to the sellers and the creditors of the sellers generally have no recourse against the Company. At January 31, 2013, the Company determined that 63 land purchase contracts, with an aggregate purchase price of $750.7 million, on which it had made aggregate deposits totaling $33.9 million, were VIEs, and that it was not the primary beneficiary of any VIE related to its land purchase contracts.

Interest incurred, capitalized and expensed, for the periods indicated, was as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Interest capitalized, beginning of period	$	330,581		$	298,757
Interest incurred	31,748			28,899
Interest expensed to cost of revenues	(19,974		)	(16,321		)
Write-off against other income	(88		)
Interest capitalized on investments in unconsolidated entities	(1,363		)
Interest capitalized, end of period	$	340,904		$	311,335

Inventory impairment charges are recognized against all inventory costs of a community, such as land, land improvements, cost of home construction and capitalized interest. The amounts included in the table directly above reflect the gross amount of capitalized interest without allocation of any impairment charges recognized. The Company estimates that, had inventory impairment charges been allocated on a pro-rata basis to the individual components of inventory, capitalized interest at January 31, 2013 and 2012 would have been reduced by approximately $46.2 million and $53.9 million, respectively.

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Stock Repurchase Program (Tables)

3 Months Ended

Jan. 31, 2013

Stock Repurchase Program [Abstract]

Stock repurchase program

The table below provides, for the periods indicated, information about the Company’s share repurchase program.

	Three months ended January 31,
	2013		2012
Number of shares purchased	3,000		3,000
Average price per share	$	32.59	$	20.61
Remaining authorization at January 31 (in thousands):	8,764		8,783

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Supplemental Guarantor Information (Level 4 CF) (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Net income (loss)	$ 4,432	$ (2,786)
Depreciation and amortization	6,525	5,229
Stock-based compensation	5,684	5,626
Income from unconsolidated entities	(3,083)	(6,687)
Distributions of earnings from unconsolidated entities	2,413	872
Income from distressed loans and foreclosed real estate	(3,011)	(4,138)
Deferred tax provision (benefit)	2,306	(1,246)
Deferred tax valuation allowances	(216)	1,246
Inventory impairments and write-offs	709	8,120
Change in fair value of mortgage loans receivable and derivative instruments	554	346
Gain on marketable securities		(39)
Changes in operating assets and liabilities
Increase in inventory	(378,715)	(108,468)
Origination of mortgage loans	(141,148)	(120,662)
Sale of mortgage loans	176,830	146,895
Decrease (increase) in restricted cash	13,519	(28,481)
Increase (Decrease) in Other Operating Assets	(8,256)	11,781
Increase in customer deposits	12,059	3,230
(Decrease) increase in accounts payable and accrued expenses	1,302	(67,127)
Increase (decrease) in income taxes payable	2,274	(5,790)
Net cash used in operating activities	(305,822)	(162,079)
Cash flow from investing activities:
Purchase of property and equipment - net	(5,391)	(3,392)
Purchase of marketable securities	(26,019)
Sale and redemption of marketable securities	38,775	88,217
Investment in and advances to unconsolidated entities	(7,614)	(71,784)
Return of investments in unconsolidated entities	17,311	15,333
Investment in distressed loans and foreclosed real estate	(16,252)	(26,410)
Return of investments in distressed loans and foreclosed real estate	3,015	3,702
Acquisition of a business		(144,746)
Net cash used in investing activities	3,825	(139,080)
Cash flow from financing activities:
Proceeds from loans payable	244,830	199,139
Principal payments of loans payable	(299,862)	(237,896)
Redemption of senior notes	(59,068)
Proceeds from stock-based benefit plans	6,108	9,334
Purchase of treasury stock	(79)	(64)
Net cash used in financing activities	(108,071)	(29,487)
Net decrease in cash and cash equivalents	(410,068)	(330,646)
Cash and cash equivalents, beginning of period	778,824	906,340
Cash and cash equivalents, end of period	368,756	575,694
Toll Brothers Inc. [Member]
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Net income (loss)	4,432	(2,786)
Depreciation and amortization	6
Stock-based compensation	5,684	5,626
Income from unconsolidated entities
Distributions of earnings from unconsolidated entities
Income from distressed loans and foreclosed real estate
Deferred tax provision (benefit)	2,306	(1,246)
Deferred tax valuation allowances	(216)	1,246
Inventory impairments and write-offs
Change in fair value of mortgage loans receivable and derivative instruments
Gain on marketable securities
Changes in operating assets and liabilities
Increase in inventory
Origination of mortgage loans
Sale of mortgage loans
Decrease (increase) in restricted cash	13,208	(28,307)
Increase (Decrease) in Other Operating Assets	(30,512)	22,096
Increase in customer deposits
(Decrease) increase in accounts payable and accrued expenses	(3,211)	(109)
Increase (decrease) in income taxes payable	2,274	(5,790)
Net cash used in operating activities	(6,029)	(9,270)
Cash flow from investing activities:
Purchase of property and equipment - net
Purchase of marketable securities
Sale and redemption of marketable securities
Investment in and advances to unconsolidated entities
Return of investments in unconsolidated entities
Investment in distressed loans and foreclosed real estate
Return of investments in distressed loans and foreclosed real estate
Acquisition of a business
Net cash used in investing activities	0	0
Cash flow from financing activities:
Proceeds from loans payable
Principal payments of loans payable
Redemption of senior notes
Proceeds from stock-based benefit plans	6,108	9,334
Purchase of treasury stock	(79)	(64)
Net cash used in financing activities	6,029	9,270
Net decrease in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period		0
Cash and cash equivalents, end of period	0	0
Subsidiary Issuer [Member]
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Net income (loss)	(1,449)	0
Depreciation and amortization	3,570	794
Stock-based compensation
Income from unconsolidated entities
Distributions of earnings from unconsolidated entities
Income from distressed loans and foreclosed real estate
Deferred tax provision (benefit)
Deferred tax valuation allowances
Inventory impairments and write-offs
Change in fair value of mortgage loans receivable and derivative instruments
Gain on marketable securities
Changes in operating assets and liabilities
Increase in inventory
Origination of mortgage loans
Sale of mortgage loans
Decrease (increase) in restricted cash
Increase (Decrease) in Other Operating Assets	46,897	(4,793)
Increase in customer deposits
(Decrease) increase in accounts payable and accrued expenses	10,050	3,999
Increase (decrease) in income taxes payable
Net cash used in operating activities	59,068	0
Cash flow from investing activities:
Purchase of property and equipment - net
Purchase of marketable securities
Sale and redemption of marketable securities
Investment in and advances to unconsolidated entities
Return of investments in unconsolidated entities
Investment in distressed loans and foreclosed real estate
Return of investments in distressed loans and foreclosed real estate
Acquisition of a business
Net cash used in investing activities	0	0
Cash flow from financing activities:
Proceeds from loans payable
Principal payments of loans payable
Redemption of senior notes	(59,068)
Proceeds from stock-based benefit plans
Purchase of treasury stock
Net cash used in financing activities	(59,068)	0
Net decrease in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period	0	0
Guarantor Subsidiaries [Member]
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Net income (loss)	5,072	(2,782)
Depreciation and amortization	5,139	4,419
Stock-based compensation
Income from unconsolidated entities	(1,117)	(7,729)
Distributions of earnings from unconsolidated entities	690	872
Income from distressed loans and foreclosed real estate
Deferred tax provision (benefit)
Deferred tax valuation allowances
Inventory impairments and write-offs	740	8,120
Change in fair value of mortgage loans receivable and derivative instruments
Gain on marketable securities		(39)
Changes in operating assets and liabilities
Increase in inventory	(317,472)	(100,509)
Origination of mortgage loans
Sale of mortgage loans
Decrease (increase) in restricted cash	192	650
Increase (Decrease) in Other Operating Assets	(115,728)	(177,589)
Increase in customer deposits	10,717	9,291
(Decrease) increase in accounts payable and accrued expenses	(9,867)	(11,553)
Increase (decrease) in income taxes payable
Net cash used in operating activities	(421,634)	(276,849)
Cash flow from investing activities:
Purchase of property and equipment - net	(5,123)	(2,563)
Purchase of marketable securities	(25,938)
Sale and redemption of marketable securities	38,775	88,217
Investment in and advances to unconsolidated entities	(2,047)	(256)
Return of investments in unconsolidated entities	7,960	15,333
Investment in distressed loans and foreclosed real estate
Return of investments in distressed loans and foreclosed real estate
Acquisition of a business		(144,746)
Net cash used in investing activities	13,627	(44,015)
Cash flow from financing activities:
Proceeds from loans payable
Principal payments of loans payable	(10,112)	(12,520)
Redemption of senior notes
Proceeds from stock-based benefit plans
Purchase of treasury stock
Net cash used in financing activities	(10,112)	(12,520)
Net decrease in cash and cash equivalents	(418,119)	(333,384)
Cash and cash equivalents, beginning of period	711,375	775,300
Cash and cash equivalents, end of period	293,256	441,916
Non-Guarantor Subsidiaries [Member]
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Net income (loss)	3,168	1,689
Depreciation and amortization	191	16
Stock-based compensation
Income from unconsolidated entities	(1,966)	1,042
Distributions of earnings from unconsolidated entities	1,723
Income from distressed loans and foreclosed real estate	(3,011)	(4,138)
Deferred tax provision (benefit)
Deferred tax valuation allowances
Inventory impairments and write-offs
Change in fair value of mortgage loans receivable and derivative instruments	554	346
Gain on marketable securities
Changes in operating assets and liabilities
Increase in inventory	(61,274)	(7,959)
Origination of mortgage loans	(141,148)	(120,662)
Sale of mortgage loans	176,830	146,895
Decrease (increase) in restricted cash	119	(824)
Increase (Decrease) in Other Operating Assets	79,311	173,768
Increase in customer deposits	1,342	(6,061)
(Decrease) increase in accounts payable and accrued expenses	6,934	(60,072)
Increase (decrease) in income taxes payable
Net cash used in operating activities	62,773	124,040
Cash flow from investing activities:
Purchase of property and equipment - net	(268)	(829)
Purchase of marketable securities	(81)
Sale and redemption of marketable securities
Investment in and advances to unconsolidated entities	(5,567)	(71,528)
Return of investments in unconsolidated entities	9,351
Investment in distressed loans and foreclosed real estate	(16,252)	(26,410)
Return of investments in distressed loans and foreclosed real estate	3,015	3,702
Acquisition of a business
Net cash used in investing activities	(9,802)	(95,065)
Cash flow from financing activities:
Proceeds from loans payable	244,830	199,139
Principal payments of loans payable	(289,750)	(225,376)
Redemption of senior notes
Proceeds from stock-based benefit plans
Purchase of treasury stock
Net cash used in financing activities	(44,920)	(26,237)
Net decrease in cash and cash equivalents	8,051	2,738
Cash and cash equivalents, beginning of period	67,449	131,040
Cash and cash equivalents, end of period	75,500	133,778
Eliminations [Member]
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Net income (loss)	(6,791)	1,093
Depreciation and amortization	(2,381)
Stock-based compensation
Income from unconsolidated entities
Distributions of earnings from unconsolidated entities
Income from distressed loans and foreclosed real estate
Deferred tax provision (benefit)
Deferred tax valuation allowances
Inventory impairments and write-offs	(31)
Change in fair value of mortgage loans receivable and derivative instruments
Gain on marketable securities
Changes in operating assets and liabilities
Increase in inventory	31
Origination of mortgage loans
Sale of mortgage loans
Decrease (increase) in restricted cash
Increase (Decrease) in Other Operating Assets	11,776	(1,701)
Increase in customer deposits
(Decrease) increase in accounts payable and accrued expenses	(2,604)	608
Increase (decrease) in income taxes payable
Net cash used in operating activities	0	0
Cash flow from investing activities:
Purchase of property and equipment - net
Purchase of marketable securities
Sale and redemption of marketable securities
Investment in and advances to unconsolidated entities
Return of investments in unconsolidated entities
Investment in distressed loans and foreclosed real estate
Return of investments in distressed loans and foreclosed real estate
Acquisition of a business
Net cash used in investing activities	0	0
Cash flow from financing activities:
Proceeds from loans payable
Principal payments of loans payable
Redemption of senior notes
Proceeds from stock-based benefit plans
Purchase of treasury stock
Net cash used in financing activities	0	0
Net decrease in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period	$ 0	$ 0

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Significant Accounting Policies (Details)	3 Months Ended
	Jan. 31, 2013
Additional Significant Accounting Policies (Textual) [Abstract]
Condition for accounting in investments as per equity method	Investments in 50% or less owned partnerships and affiliates are accounted for using the equity method unless it is determined that the Company has effective control of the entity, in which case the entity would be consolidated.
Percentage Investment in Partnerships and Affiliates up to which Accounted as Equity Method Investment	50.00%

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Accrued Expenses (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012	Jan. 31, 2012	Oct. 31, 2011
Accrued expenses
Land, land development and construction	$ 119,804	$ 124,731
Compensation and employee benefits	94,627	111,093
Insurance and litigation	102,135	101,908
Commitments to unconsolidated entities	2,164	2,135
Warranty	41,241	41,706	43,109	42,474
Interest	38,366	28,204
Other	69,315	66,573
Accrued expenses, Total	$ 467,652	$ 476,350

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Fair Value Disclosures (Level 4 debt fv) (Details 6) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Book value and estimated fair value of the Company's debt
Loans payable (a)	$ 93,314	$ 99,817
Senior notes	2,021,897	2,080,463
Mortgage company warehouse loan (c)	43,464	72,664
Book value [Member]
Book value and estimated fair value of the Company's debt
Loans payable (a)	93,314	99,817
Senior notes	2,030,121	2,089,189
Mortgage company warehouse loan (c)	43,464	72,664
Total debt	2,166,899	2,261,670
Estimate fair value [Member]
Book value and estimated fair value of the Company's debt
Loans payable (a)	93,014	99,093
Senior notes	2,272,730	2,340,189
Mortgage company warehouse loan (c)	43,464	72,664
Total debt	$ 2,409,208	$ 2,511,946

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
ASSETS
Cash and cash equivalents	$ 368,756	$ 778,824
Marketable securities	424,819	439,068
Restricted cash	33,757	47,276
Inventory	4,155,047	3,761,187
Property, construction and office equipment, net	112,877	109,971
Receivables, prepaid expenses and other assets	152,881	144,558
Mortgage loans receivable	49,400	86,386
Customer deposits held in escrow	31,301	29,579
Investments in and advances to unconsolidated entities	321,851	330,617
Investments in distressed loans	42,832	37,169
Investments in foreclosed real estate	68,764	58,353
Deferred tax assets, net of valuation allowances	355,966	358,056
Total assets	6,118,251	6,181,044
Liabilities:
Loans payable	93,314	99,817
Senior notes	2,021,897	2,080,463
Mortgage company warehouse loan	43,464	72,664
Customer deposits	156,758	142,977
Accounts payable	110,791	99,911
Accrued expenses	467,652	476,350
Income taxes payable	83,265	80,991
Total liabilities	2,977,141	3,053,173
Stockholders' equity:
Common stock, 169,159 and 168,690 shares issued at January 31, 2013 and October 31, 2012, respectively	1,692	1,687
Additional paid-in capital	412,242	404,418
Retained earnings	2,725,829	2,721,397
Treasury stock, at cost --1 share and 53 shares at January 31, 2013 and October 31, 2012, respectively	(38)	(983)
Accumulated other comprehensive loss	(4,803)	(4,819)
Total stockholders' equity	3,134,922	3,121,700
Noncontrolling interest	6,188	6,171
Total equity	3,141,110	3,127,871
Total liabilities and stockholders' equity	6,118,251	6,181,044
Fair Value, Inputs, Level 2 [Member]
ASSETS
Mortgage loans receivable	$ 49,400	$ 86,386

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Inventory (Details Textual) (USD $) In Millions, unless otherwise specified	Jan. 31, 2013 contracts	Jan. 31, 2012
Inventory (Textual) [Abstract]
Number of VIE Land Purchase Contracts (in ones)	63
Aggregate purchase price of VIE lands	$ 750.7
Deposits for purchase of lands with VIE entities	33.9
Reduction in Capitalized Interest	$ 46.2	$ 53.9

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Cash flow used in operating activities:
Net income (loss)	$ 4,432	$ (2,786)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	6,525	5,229
Stock-based compensation	5,684	5,626
Income from unconsolidated entities	(3,083)	(6,687)
Distributions of earnings from unconsolidated entities	2,413	872
Income from distressed loans and foreclosed real estate	(3,011)	(4,138)
Deferred tax provision (benefit)	2,306	(1,246)
Deferred tax valuation allowances	(216)	1,246
Inventory impairments and write-offs	709	8,120
Change in fair value of mortgage loans receivable and derivative instruments	554	346
Gain on marketable securities		(39)
Changes in operating assets and liabilities
Increase in inventory	(378,715)	(108,468)
Origination of mortgage loans	(141,148)	(120,662)
Sale of mortgage loans	176,830	146,895
Decrease (increase) in restricted cash	13,519	(28,481)
(Increase) decrease in receivables, prepaid expenses and other assets	(8,256)	11,781
Increase in customer deposits	12,059	3,230
Increase (decrease) in accounts payable and accrued expenses	1,302	(67,127)
Increase (decrease) in income taxes payable	2,274	(5,790)
Net cash used in operating activities	(305,822)	(162,079)
Cash flow provided by (used in) investing activities:
Purchase of property and equipment - net	(5,391)	(3,392)
Purchase of marketable securities	(26,019)
Sale and redemption of marketable securities	38,775	88,217
Investment in and advances to unconsolidated entities	(7,614)	(71,784)
Return of investments in unconsolidated entities	17,311	15,333
Investment in distressed loans and foreclosed real estate	(16,252)	(26,410)
Return of investments in distressed loans and foreclosed real estate	3,015	3,702
Acquisition of a business		(144,746)
Net cash provided by (used in) investing activities	3,825	(139,080)
Cash flow used in financing activities:
Proceeds from loans payable	244,830	199,139
Principal payments of loans payable	(299,862)	(237,896)
Redemption of senior notes	(59,068)
Proceeds from stock-based benefit plans	6,108	9,334
Purchase of treasury stock	(79)	(64)
Net cash used in financing activities	(108,071)	(29,487)
Net decrease in cash and cash equivalents	(410,068)	(330,646)
Cash and cash equivalents, beginning of period	778,824	906,340
Cash and cash equivalents, end of period	$ 368,756	$ 575,694

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Stock-Based Benefit Plans (Details 2) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Jan. 29, 2013	Dec. 20, 2011
Performance-Based Restricted Stock Units
Stock based expense recognized	$ 5,684	$ 5,626
Performance Based Restricted Stock Units [Member]
Performance-Based Restricted Stock Units
Issuance of restricted stock and stock units, shares	289,490	350,000
Closing price of the Company's common stock on date of issuance			$ 37.78	$ 20.50
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	10,937	7,185
Stock based expense recognized	514	936
Unamortized value of RSUs	$ 14,059	$ 6,249

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Other Income - Net (Tables)

3 Months Ended

Jan. 31, 2013

Other Income and Expenses [Abstract]

Other Income - net

The table below provides, for the periods indicated, the components of other income - net (amounts in thousands):

	Three months ended January 31,
	2013		2012
Interest income	$	1,475	$	914
Income from ancillary businesses	1,278		1,083
Gibraltar	151		2,138
Management fee income	327		687
Retained customer deposits	678		654
Land sales, net	145
Other	572		719
Total other income - net	$	4,626	$	6,195

Revenues and expenses of non-core ancillary businesses

The table below provides, for the periods indicated, revenues and expenses for the Company’s non-core ancillary businesses (amounts in thousands):

	Three months ended January 31,
	2013		2012
Revenue	$	16,641	$	13,813
Expense	$	15,363	$	12,730

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Income (Loss) Per Share Information (Details)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Earnings Per Share [Abstract]
Basic weighted-average shares	169,064,000	166,311,000
Common stock equivalents	2,839,000
Diluted weighted-average shares	171,903,000	166,311,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		796,000
Weighted-Average Number of Anti-Dilutive Options	980,000	6,727,000
Shares Issued under Stock Incentive and Employee Stock Purchase Plans	523,000	942,000
Incremental Common Shares Attributable to Conversion of Debt Securities	5,900,000
Senior Notes Due Two Thousand Thirty-Two [Member] [Member]
Earnings Per Share [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	0.50%

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Supplemental Disclosure to Statements of Cash Flows

3 Months Ended

Jan. 31, 2013

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure to Statements of Cash Flows

Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the statements of cash flows for the three months ended January 31, 2013 and 2012 (amounts in thousands):

	2013			2012
Cash flow information:
Interest capitalized, net of amount paid	$	6,801		$	766
Income tax payment				$	2,093
Income tax refunds	$	469
Non-cash activity:
Cost of inventory acquired through seller financing or municipal bonds, net	$	15,998		$	431
Miscellaneous decreases to inventory	$	(144	)	$	(75	)
Defined benefit plan amendment	$	519		$	310
Increase in accrued expenses related to Stock Price-Based RSUs paid	$	2,939
Increase of investments in unconsolidated entities due to reduction in letters of credit or accrued liabilities	$	(24	)	$	(26	)
Transfer of inventory to investment in distressed loans and foreclosed real estate				$	802
Transfer of inventory to investment in unconsolidated entities				$	5,793
Unrealized gain on derivative held by equity investee	$	151		$	795
Miscellaneous increases (decreases) to investments in unconsolidated entities	$	86		$	(18	)
Acquisition of Business:
Fair value of assets purchased				$	149,959
Liabilities assumed				$	5,213
Cash paid				$	144,746

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Commitments and Contingencies (Tables)

3 Months Ended

Jan. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Company purchase commitments

Information regarding the Company’s land purchase commitments, as of the date indicated, is provided in the table below (amounts in thousands):

	January 31, 2013		October 31, 2012
Aggregate purchase commitments:
Unrelated parties	$	973,052	$	742,918
Unconsolidated entities that the Company has investments in	65,805		4,067
Total	$	1,038,857	$	746,985
Deposits against aggregate purchase commitments	$	42,428	$	42,921
Additional cash required to acquire land	996,429		704,064
Total	$	1,038,857	$	746,985
Amount of additional cash required to acquire land in accrued expenses	$	574	$	4,328

Company mortgage commitments

Information regarding the Company’s mortgage commitments, as of the date indicated, is provided in the table below (amounts in thousands):

	January 31, 2013		October 31, 2012
Aggregate mortgage loan commitments:
IRLCs	$	128,023	$	111,173
Non-IRLCs	553,392		456,825
Total	$	681,415	$	567,998
Investor commitments to purchase:
IRLCs	$	128,023	$	111,173
Mortgage loans receivable	45,090		80,697
Total	$	173,113	$	191,870

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Significant Accounting Policies (Policies)

3 Months Ended

Jan. 31, 2013

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company”), a Delaware corporation, and those majority-owned subsidiaries it controls. 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 the Company has effective control of the entity, in which case the entity would be consolidated.

Consolidation Policy

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The October 31, 2012 balance sheet amounts and disclosures included herein have been derived from the Company’s October 31, 2012 audited financial statements. Since the accompanying condensed consolidated financial statements do not include all the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements, the Company suggests that they be read in conjunction with the consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended October 31, 2012. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of January 31, 2013, the results of its operations for the three-month periods ended January 31, 2013 and 2012, and its cash flows for the three-month periods ended January 31, 2013 and 2012. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

Recent Accounting Pronouncements [Policy Text Block]

Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-05, “Statement of Comprehensive Income” (“ASU 2011-05”), which requires entities to present comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. ASU 2011-05 was effective for our fiscal year beginning November 1, 2012. The adoption of this guidance, which related to presentation only, did not have an impact on the Company’s consolidated financial position, results of operations or cash flows but did require a change in the presentation of the Company’s comprehensive income from the notes of the condensed consolidated financial statements to the face of the condensed consolidated financial statements.

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" ("ASU 2013-02"). ASU 2013-02 requires entities to present information about reclassification adjustments from accumulated other comprehensive income in their financial statements in a single note or on the face of the financial statements. The adoption of this guidance, which relates to presentation only, is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. ASU 2013-02 will be effective for the Company’s fiscal quarter beginning February 1, 2013.

Reclassifications Policy

Reclassification

Certain prior year amounts have been reclassified to conform to the fiscal 2013 presentation.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value Disclosures

The Company uses ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), to measure the fair value of certain assets and liabilities. ASC 820 provides a framework for measuring fair value in accordance with GAAP, establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and requires certain disclosures about fair value measurements.

The fair value hierarchy is summarized below:

Level 1:	Fair value determined based on quoted prices in active markets for identical assets or liabilities.
Level 2:	Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.
Level 3:	Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.

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Fair Value Disclosures (Level 4 marketable securities) (Details 2) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Fair Value Disclosures (Textual) [Abstract]
Marketable Securities Maturities Term Minimum	1 month
Marketable Securities Maturities Term Maximum	23 months
Summary of amortized cost gross unrealized holding gains and losses
Amortized cost	$ 424,387	$ 438,755
Gross unrealized holding gains	552	451
Gross unrealized holding losses	(120)	(138)
Fair value	$ 424,819	$ 439,068

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Significant Accounting Policies

3 Months Ended

Jan. 31, 2013

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of Toll Brothers, Inc. (the “Company”), a Delaware corporation, and those majority-owned subsidiaries it controls. 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 the Company has effective control of the entity, in which case the entity would be consolidated.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The October 31, 2012 balance sheet amounts and disclosures included herein have been derived from the Company’s October 31, 2012 audited financial statements. Since the accompanying condensed consolidated financial statements do not include all the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements, the Company suggests that they be read in conjunction with the consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended October 31, 2012. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of January 31, 2013, the results of its operations for the three-month periods ended January 31, 2013 and 2012, and its cash flows for the three-month periods ended January 31, 2013 and 2012. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year.

Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-05, “Statement of Comprehensive Income” (“ASU 2011-05”), which requires entities to present comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. ASU 2011-05 was effective for our fiscal year beginning November 1, 2012. The adoption of this guidance, which related to presentation only, did not have an impact on the Company’s consolidated financial position, results of operations or cash flows but did require a change in the presentation of the Company’s comprehensive income from the notes of the condensed consolidated financial statements to the face of the condensed consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" ("ASU 2013-02"). ASU 2013-02 requires entities to present information about reclassification adjustments from accumulated other comprehensive income in their financial statements in a single note or on the face of the financial statements. The adoption of this guidance, which relates to presentation only, is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. ASU 2013-02 will be effective for the Company’s fiscal quarter beginning February 1, 2013.

Reclassification

Certain prior year amounts have been reclassified to conform to the fiscal 2013 presentation.

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Condensed Consolidated Balance Sheets (Parenthetical) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Statement of Financial Position [Abstract]
Preferred stock, shares issued
Common stock, shares issued	169,159	168,690
Treasury stock, at cost	1	53

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Income (Loss) Per Share Information

3 Months Ended

Jan. 31, 2013

Earnings Per Share [Abstract]

Income per Share Information

Income (Loss) per Share Information

The table below provides, for the periods indicated, information pertaining to the calculation of income (loss) per share, common stock equivalents, weighted-average number of anti-dilutive options and shares issued (amounts in thousands):

	Three months ended January 31,
	2013	2012
Basic weighted-average shares (a)	169,064	166,311
Common stock equivalents (b)	2,839
Diluted weighted-average shares	171,903	166,311
Other information:
Common stock equivalents excluded from diluted weighted-average shares due to anti-dilutive effect (b)		796
Weighted-average number of anti-dilutive options (c)	980	6,727
Shares issued under stock incentive and employee stock purchase plans	523	942

(a) Basic weighted-average shares included the weighted-average number of shares outstanding for the period and vested shares issuable under restricted stock unit awards.

(b) Common stock equivalents represent the dilutive effect of outstanding in-the-money stock options and unvested shares issuable under restricted stock unit awards whose performance criteria, if any, have been met and are expected to be issued, using the treasury stock method. 5.9 million shares issuable upon the conversion of the Company's 0.5% Exchangeable Senior Notes are excluded from the calculation of diluted earnings per share because they are anti-dilutive.

(c) Based upon the average closing price of the Company’s common stock on the NYSE for the period.

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Document and Entity Information	3 Months Ended
	Jan. 31, 2013	Mar. 04, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	TOLL BROTHERS INC
Entity Central Index Key	0000794170
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		169,162,000

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Fair Value Disclosures

3 Months Ended

Jan. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Disclosures

Fair Value Disclosures

The Company uses ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), to measure the fair value of certain assets and liabilities. ASC 820 provides a framework for measuring fair value in accordance with GAAP, establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and requires certain disclosures about fair value measurements.

The fair value hierarchy is summarized below:

Level 1:	Fair value determined based on quoted prices in active markets for identical assets or liabilities.
Level 2:	Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.
Level 3:	Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.

Financial Instruments

The table below provides, as of the date indicated, a summary of assets (liabilities) related to the Company’s financial instruments, measured at fair value on a recurring basis (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	January 31, 2013			October 31, 2012
Corporate Securities	Level 2	$	246,487		$	260,772
Certificates of Deposit	Level 2	$	148,105		$	148,112
Short-Term Tax-Exempt Bond Fund	Level 1	$	30,227		$	30,184
Residential Mortgage Loans Held for Sale	Level 2	$	49,400		$	86,386
Forward Loan Commitments—Residential Mortgage Loans Held for Sale	Level 2	$	649		$	(102	)
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	(1,345	)	$	(202	)
Forward Loan Commitments—IRLCs	Level 2	$	1,345		$	202

At January 31, 2013 and October 31, 2012, the carrying value of cash and cash equivalents and restricted cash approximated fair value.

Mortgage Loans Held for Sale

The table below provides, as of the date indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale (amounts in thousands):

	Aggregate unpaid principal balance		Fair value		Excess
At January 31, 2013	$	49,304	$	49,400	$	96
At October 31, 2012	$	84,986	$	86,386	$	1,400

At the end of the reporting period, the Company determines the fair value of its mortgage loans held for sale and the forward loan commitments it has entered into as a hedge against the interest rate risk of its mortgage loans using the market approach to determine fair value. The evaluation is based on the current market pricing of mortgage loans with similar terms and values as of the reporting date and by applying such pricing to the mortgage loan portfolio. The Company recognizes the difference between the fair value and the unpaid principal balance of mortgage loans held for sale as a gain or loss. In addition, the Company recognizes the fair value of its forward loan commitments as a gain or loss. These gains and losses are included in other income - net. Interest income on mortgage loans held for sale is calculated based upon the stated interest rate of each loan and is included in other income - net.

IRLCs represent individual borrower agreements that commit the Company to lend at a specified price for a specified period as long as there is no violation of any condition established in the commitment contract. These commitments have varying degrees of interest rate risk. The Company utilizes best-efforts forward loan commitments (“Forward Commitments”) to hedge the interest rate risk of the IRLCs and residential mortgage loans held for sale. Forward Commitments represent contracts with third-party investors for the future delivery of loans whereby the Company agrees to make delivery at a specified future date at a specified price. The IRLCs and Forward Commitments are considered derivative financial instruments under ASC 815, “Derivatives and Hedging,” which requires derivative financial instruments to be recorded at fair value. The Company estimates the fair value of such commitments based on the estimated fair value of the underlying mortgage loan and, in the case of IRLCs, the probability that the mortgage loan will fund within the terms of the IRLC. To manage the risk of non-performance of investors regarding the Forward Commitments, the Company assesses the credit worthiness of the investors on a periodic basis.

Marketable Securities

The table below provides, as of the date indicated, the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of marketable securities (amounts in thousands):

	January 31, 2013			October 31, 2012
Amortized cost	$	424,387		$	438,755
Gross unrealized holding gains	552			451
Gross unrealized holding losses	(120		)	(138		)
Fair value	$	424,819		$	439,068

The estimated fair values of corporate securities and certificates of deposit are based on quoted prices provided by brokers. The remaining contractual maturities of marketable securities as of January 31, 2013 ranged from 1 month to 23 months.

Inventory

The Company recognizes inventory impairment charges based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. The fair value of the aforementioned inventory was determined using Level 3 criteria. Estimated fair value is primarily determined by discounting the estimated future cash flow of each community. See Note 1, “Significant Accounting Policies, Inventory” in the Company's Annual Report on Form 10-K for additional information regarding the Company’s methodology on determining fair value. As further discussed in Note 1 in the Company's Annual Report on Form 10-K, determining the fair value of a community's inventory involves a number of variables, many of which are interrelated. If the Company used a different input for any of the various unobservable inputs used in its impairment analysis, the results of the analysis may have been different, absent any other changes. The table below summarizes, for the periods indicated, the ranges of certain quantitative unobservable inputs utilized in determining the fair value of impaired communities:

	Selling price per unit (in thousands)	Sales pace per year (in units)	Discount rate
Three months ended January 31, 2013	$303 - $307	15	15.3%
Three months ended October 31, 2012	$501 - $536	11	18.3%
Three months ended July 31, 2012	$175 - $571	4 - 12	14.0% - 17.5%
Three months ended April 30, 2012	$413 - $472	6 - 17	17.5%
Three months ended January 31, 2012	$344 - $2,287	1 - 25	13.0% - 18.8%

The table below provides, for the periods indicated, the fair value of operating communities whose carrying value was adjusted and the amount of impairment charges recognized ($ amounts in thousands):

		Impaired operating communities
Three months ended:	Number of communities tested	Number of communities	Fair value of communities, net of impairment charges		Impairment charges
Fiscal 2013:
January 31	60	2	$	5,377	$	700
					$	700
Fiscal 2012:
January 31	113	8	$	49,758	$	6,425
April 30	115	2	$	22,962	2,560
July 31	115	4	$	6,609	2,685
October 31	108	3	$	9,319	1,400
					$	13,070

Investments in Distressed Loans and REO

Gibraltar’s distressed loans were recorded at estimated fair value at inception based on the acquisition price as determined by Level 3 inputs and was based on the estimated future cash flows to be generated by the loans discounted at the rates used to value the loans at the acquisition dates. The table below provides, as of the date indicated, the carrying amount and estimated fair value of distressed loans (amounts in thousands):

	January 31, 2013		October 31, 2012
Carrying amount	$	42,832	$	37,169
Estimated fair value	$	44,065	$	38,109

Gibraltar's REO was recorded at estimated fair value at the time it was acquired through foreclosure or deed in lieu actions using Level 3 inputs. The valuation techniques used to estimate fair value are third-party appraisals, broker opinions of value, or internal valuation methodologies (which may include discounted cash flows, capitalization rate analysis or comparable transactional analysis). Unobservable inputs used in estimating the fair value of REO assets are based upon the best information available under the circumstances and take into consideration the financial condition and operating results of the asset, local market conditions, the availability of capital, interest and inflation rates and other factors deemed appropriate by management.

Debt

The table below provides, as of the date indicated, the book value and estimated fair value of the Company’s debt (amounts in thousands):

		January 31, 2013				October 31, 2012
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	Level 2	$	93,314	$	93,014	$	99,817	$	99,093
Senior notes (b)	Level 1	2,030,121		2,272,730		2,089,189		2,340,189
Mortgage company warehouse loan (c)	Level 2	43,464		43,464		72,664		72,664
		$	2,166,899	$	2,409,208	$	2,261,670	$	2,511,946

(a) The estimated fair value of loans payable was based upon their indicated market prices or the interest rates that the Company believed were available to it for loans with similar terms and remaining maturities as of the applicable valuation date.

(b) The estimated fair value of the Company’s senior notes is based upon their indicated market prices.

(c) The Company believes that the carrying value of its mortgage company warehouse loan borrowings approximates their fair value.

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Supplemental Guarantor Information (Level 4 Senior Note table) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012	Jan. 31, 2013 Senior Notes Due 2013 [Member]	Sep. 03, 2003 Senior Notes Due 2013 [Member]	Jan. 31, 2013 Senior Notes Due 2014 [Member]	Mar. 16, 2004 Senior Notes Due 2014 [Member]	Jan. 31, 2013 Senior Notes Due 2015 [Member]	Jun. 02, 2005 Senior Notes Due 2015 [Member]	Jan. 31, 2013 Senior Notes Due 2017 [Member]	Apr. 13, 2009 Senior Notes Due 2017 [Member]	Jan. 31, 2013 Senior Notes Due 2019 [Member]	Sep. 22, 2009 Senior Notes Due 2019 [Member]	Jan. 31, 2013 Senior Notes Due 2022 [Member]	Feb. 07, 2012 Senior Notes Due 2022 [Member]	Jan. 31, 2013 Senior Notes Due Two Thousand Thirty-Two [Member] [Member]	Sep. 05, 2012 Senior Notes Due Two Thousand Thirty-Two [Member] [Member]
Supplemental Guarantor Information (Textual) [Abstract]
Issued Senior Notes				$ 250,000		$ 300,000		$ 300,000		$ 400,000		$ 250,000		$ 419,876		$ 287,500
Senior notes	$ 2,021,897	$ 2,080,463	$ 104,785		$ 267,960		$ 300,000		$ 400,000		$ 250,000		$ 419,876		$ 287,500
Interest rate on notes			5.95%		4.95%		5.15%		8.91%		6.75%		5.875%		0.50%

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Revenues	$ 424,601	$ 321,955
Cost of revenues	345,937	271,608
Selling, general and administrative	78,047	69,637
Total	423,984	341,245
Income (loss) from operations	617	(19,290)
Other:
Income from unconsolidated entities	3,083	6,687
Other income - net	4,626	6,195
Income (loss) before income taxes	8,326	(6,408)
Income tax provision (benefit)	3,894	(3,622)
Net income (loss)	$ 4,432	$ (2,786)
Income (loss) per share:
Basic	$ 0.03	$ (0.02)
Diluted	$ 0.03	$ (0.02)
Weighted average number of shares:
Basic	169,064	166,311
Diluted	171,903	166,311

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Accrued Expenses

3 Months Ended

Jan. 31, 2013

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses at January 31, 2013 and October 31, 2012 consisted of the following (amounts in thousands):

	January 31, 2013		October 31, 2012
Land, land development and construction	$	119,804	$	124,731
Compensation and employee benefit	94,627		111,093
Insurance and litigation	102,135		101,908
Commitments to unconsolidated entities	2,164		2,135
Warranty	41,241		41,706
Interest	38,366		28,204
Other	69,315		66,573
	$	467,652	$	476,350

The Company accrues for expected warranty costs at the time each home is closed and title and possession are transferred to the home buyer. Warranty costs are accrued based upon historical experience. The table below provides, for the periods indicated, a reconciliation of the changes in the Company’s warranty accrual (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	41,706		$	42,474
Additions – homes closed during the period	2,289			1,871
Addition – liabilities acquired				731
(Decrease) increase in accruals for homes closed in prior periods	(267		)	1,783
Charges incurred	(2,487		)	(3,750		)
Balance, end of period	$	41,241		$	43,109

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Senior Notes Payable and Mortgage Company Loan Facilities

3 Months Ended

Jan. 31, 2013

Debt Disclosure [Abstract]

Senior Notes Payable

Senior Notes and Mortgage Company Loan Facilities

Senior Notes

At January 31, 2013, the Company had 7 issues of its Senior Notes outstanding with an aggregate principal amount of $2.03 billion.

In November 2012, the Company repaid the $59.1 million of its outstanding 6.875% Senior Notes due November 15, 2012.

Mortgage Company Loan Facilities

In July 2012, TBI Mortgage Company (“TBI Mortgage”), the Company's wholly-owned mortgage subsidiary, amended its Master Repurchase Agreement (the “Repurchase Agreement”) with Comerica Bank. The purpose of the Repurchase Agreement is to finance the origination of mortgage loans by TBI Mortgage and it is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” The Repurchase Agreement, as amended, provides for loan purchases of up to $50 million, subject to certain sublimits. In addition, the Repurchase Agreement provides for an accordion feature under which TBI Mortgage may request that the aggregate commitments under the Repurchase Agreement be increased to an amount up to $75 million for a short period of time. The Repurchase Agreement, as amended, expires on July 23, 2013 and bears interest at LIBOR plus 2.00% per annum, with a minimum rate of 3.00%.

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Supplemental Guarantor Information

3 Months Ended

Jan. 31, 2013

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information [Text Block]

Supplemental Guarantor Information

A 100% owned subsidiary of the Company, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), has issued the following Senior Notes (amounts in thousand):

	Original Amount Issued		Amount outstanding at January 31, 2013
5.95% Senior Notes due 2013	$	250,000	$	104,785
4.95% Senior Notes due 2014	$	300,000	$	267,960
5.15% Senior Notes due 2015	$	300,000	$	300,000
8.91% Senior Notes due 2017	$	400,000	$	400,000
6.75% Senior Notes due 2019	$	250,000	$	250,000
5.875% Senior Notes due 2022	$	419,876	$	419,876
0.5% Exchangeable Senior Notes due 2032	$	287,500	$	287,500

The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest is guaranteed jointly and severally on a senior basis by the Company and substantially all of the Company’s 100% owned home building subsidiaries (the “Guarantor Subsidiaries”). The guarantees are full and unconditional. The Company’s non-home building subsidiaries and several of its home building subsidiaries (the “Non-Guarantor Subsidiaries”) do not guarantee the debt. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management has determined that such disclosures would not be material to investors. Prior to the above described senior debt issuances, the Subsidiary Issuer did not have any operations.

Supplemental consolidating financial information of Toll Brothers, Inc., the Subsidiary Issuer, the Guarantor Subsidiaries, the Non-Guarantor Subsidiaries and the eliminations to arrive at Toll Brothers, Inc. on a consolidated basis is presented below ($ amounts in thousands).

Condensed Consolidating Balance Sheet at January 31, 2013:

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	—		—		293,256		75,500		—		368,756
Marketable securities					364,585		60,234				424,819
Restricted cash	15,060				17,369		1,328				33,757
Inventory					3,859,964		295,083				4,155,047
Property, construction and office equipment, net					109,618		3,259				112,877
Receivables, prepaid expenses and other assets	146		14,458		74,673		77,665		(14,061	)	152,881
Mortgage loans held for sale							49,400				49,400
Customer deposits held in escrow					28,455		2,846				31,301
Investments in and advances to unconsolidated entities					64,931		256,920				321,851
Investments in distressed loans							42,832				42,832
Investments in foreclosed real estate							68,764				68,764
Investments in and advances to consolidated entities	2,847,200		2,045,897		(1,044,776	)	(714,679	)	(3,133,642	)	—
Deferred tax assets, net of valuation allowances	355,966										355,966
	3,218,372		2,060,355		3,768,075		219,152		(3,147,703	)	6,118,251
LIABILITIES AND EQUITY
Liabilities:
Loans payable					78,308		15,006				93,314
Senior notes			1,976,150						45,747		2,021,897
Mortgage company warehouse loan							43,464				43,464
Customer deposits					148,085		8,673				156,758
Accounts payable					110,764		27				110,791
Accrued expenses			37,526		317,137		127,196		(14,207	)	467,652
Income taxes payable	83,265										83,265
Total liabilities	83,265		2,013,676		654,294		194,366		31,540		2,977,141
Equity:
Stockholders’ equity:
Common stock	1,692				48		3,006		(3,054	)	1,692
Additional paid-in capital	412,242		49,400				1,734		(51,134	)	412,242
Retained earnings	2,725,829		(2,721	)	3,113,875		13,901		(3,125,055	)	2,725,829
Treasury stock, at cost	(38	)									(38	)
Accumulated other comprehensive loss	(4,618	)			(142	)	(43	)			(4,803	)
Total stockholders’ equity	3,135,107		46,679		3,113,781		18,598		(3,179,243	)	3,134,922
Noncontrolling interest							6,188				6,188
Total equity	3,135,107		46,679		3,113,781		24,786		(3,179,243	)	3,141,110
	3,218,372		2,060,355		3,768,075		219,152		(3,147,703	)	6,118,251

Condensed Consolidating Balance Sheet at October 31, 2012:

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents					711,375		67,449				778,824
Marketable securities					378,858		60,210				439,068
Restricted cash	28,268				17,561		1,447				47,276
Inventory					3,527,677		233,510				3,761,187
Property, construction and office equipment, net					106,963		3,008				109,971
Receivables, prepaid expenses and other assets	134		15,130		77,175		68,300		(16,181	)	144,558
Mortgage loans held for sale							86,386				86,386
Customer deposits held in escrow					27,312		2,267				29,579
Investments in and advances to unconsolidated entities					70,145		260,472				330,617
Investments in distressed loans							37,169				37,169
Investments in foreclosed real estate							58,353				58,353
Investments in and advances to consolidated entities	2,816,607		2,092,810		(1,168,812	)	(630,493	)	(3,110,112	)	—
Deferred tax assets, net of valuation allowances	358,056										358,056
	3,203,065		2,107,940		3,748,254		248,078		(3,126,293	)	6,181,044
LIABILITIES AND EQUITY
Liabilities:
Loans payable					69,393		30,424				99,817
Senior notes			2,032,335						48,128		2,080,463
Mortgage company warehouse loan							72,664				72,664
Customer deposits					136,225		6,752				142,977
Accounts payable					99,889		22				99,911
Accrued expenses			27,476		341,233		119,244		(11,603	)	476,350
Income taxes payable	80,991										80,991
Total liabilities	80,991		2,059,811		646,740		229,106		36,525		3,053,173
Equity:
Stockholders’ equity:
Common stock	1,687				48		3,006		(3,054	)	1,687
Additional paid-in capital	404,418		49,400				1,734		(51,134	)	404,418
Retained earnings	2,721,397		(1,271	)	3,101,833		8,068		(3,108,630	)	2,721,397
Treasury stock, at cost	(983	)									(983	)
Accumulated other comprehensive loss	(4,445	)			(367	)	(7	)			(4,819	)
Total stockholders’ equity	3,122,074		48,129		3,101,514		12,801		(3,162,818	)	3,121,700
Noncontrolling interest							6,171				6,171
Total equity	3,122,074		48,129		3,101,514		18,972		(3,162,818	)	3,127,871
	3,203,065		2,107,940		3,748,254		248,078		(3,126,293	)	6,181,044

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three months ended January 31, 2013 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues					419,778		25,490		(20,667	)	424,601
Cost of revenues					340,182		11,144		(5,389	)	345,937
Selling, general and administrative	16		687		83,578		11,070		(17,304	)	78,047
Interest expense			31,422				160		(31,582	)	—
	16		32,109		423,760		22,374		(54,275	)	423,984
Income (loss) from operations	(16	)	(32,109	)	(3,982	)	3,116		33,608		617
Other:
Income from unconsolidated entities					1,118		1,965				3,083
Other income - net	4		29,727		5,995		126		(31,226	)	4,626
Income from subsidiaries	8,338				5,207				(13,545	)	—
Income before income tax benefit	8,326		(2,382	)	8,338		5,207		(11,163	)	8,326
Income tax benefit	3,894		(933	)	3,266		2,039		(4,372	)	3,894
Net income	4,432		(1,449	)	5,072		3,168		(6,791	)	4,432
Other comprehensive income (loss)	(173	)			225		(36	)			16
Comprehensive income (loss)	4,259		(1,449	)	5,297		3,132		(6,791	)	4,448

Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income for the three months ended January 31, 2012 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries	Eliminations		Consolidated
Revenues					327,692		12,386	(18,123	)	321,955
Cost of revenues					272,884		674	(1,950	)	271,608
Selling, general and administrative	13		478		73,287		9,519	(13,660	)	69,637
Interest expense			25,286					(25,286	)	—
	13		25,764		346,171		10,193	(40,896	)	341,245
Loss from operations	(13	)	(25,764	)	(18,479	)	2,193	22,773		(19,290	)
Other:
Loss (income) from unconsolidated entities					5,229		1,458			6,687
Other income - net	7		25,764		2,966		233	(22,775	)	6,195
Loss from subsidiaries	(6,402	)			3,884			2,518		—
Loss before income tax benefit	(6,408	)	—		(6,400	)	3,884	2,516		(6,408	)
Income tax benefit	(3,622	)	—		(3,618	)	2,195	1,423		(3,622	)
Net income	(2,786	)	—		(2,782	)	1,689	1,093		(2,786	)
Other comprehensive loss	(109	)			(552	)				(661	)
Comprehensive (loss) income	(2,895	)	—		(3,334	)	1,689	1,093		(3,447	)

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2013 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flow from operating activities:
Net income (loss)	4,432		(1,449	)	5,072		3,168		(6,791	)	4,432
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	6		3,570		5,139		191		(2,381	)	6,525
Stock-based compensation	5,684										5,684
Income from unconsolidated entities					(1,117	)	(1,966	)			(3,083	)
Distributions of earnings from unconsolidated entities					690		1,723				2,413
Income from distressed loans and foreclosed real estate							(3,011	)			(3,011	)
Deferred tax provision	2,306										2,306
Deferred tax valuation allowance	(216	)									(216	)
Inventory impairments and write-offs					740				(31	)	709
Change in fair value of mortgage loans receivable and derivative instruments							554				554
Changes in operating assets and liabilities
Increase in inventory					(317,472	)	(61,274	)	31		(378,715	)
Origination of mortgage loans							(141,148	)			(141,148	)
Sale of mortgage loans							176,830				176,830
Decrease in restricted cash	13,208				192		119				13,519
(Increase) decrease in receivables, prepaid expenses and other assets	(30,512	)	46,897		(115,728	)	79,311		11,776		(8,256	)
Increase in customer deposits					10,717		1,342				12,059
Increase (decrease) in accounts payable and accrued expenses	(3,211	)	10,050		(9,867	)	6,934		(2,604	)	1,302
Increase in income taxes payable	2,274										2,274
Net cash (used in) provided by operating activities	(6,029	)	59,068		(421,634	)	62,773		—		(305,822	)
Cash flow provided by (used in) investing activities:
Purchase of property and equipment - net					(5,123	)	(268	)			(5,391	)
Purchase of marketable securities					(25,938	)	(81	)			(26,019	)
Sale and redemption of marketable securities					38,775						38,775
Investments in and advances to unconsolidated entities					(2,047	)	(5,567	)			(7,614	)
Return of investments in unconsolidated entities					7,960		9,351				17,311
Investments in distressed loans and foreclosed real estate							(16,252	)			(16,252	)
Return of investments in distressed loans and foreclosed real estate							3,015				3,015
Net cash provided by (used in) investing activities	—		—		13,627		(9,802	)	—		3,825
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							244,830				244,830
Principal payments of loans payable					(10,112	)	(289,750	)			(299,862	)
Redemption of senior notes			(59,068	)							(59,068	)
Proceeds from stock-based benefit plans	6,108										6,108
Purchase of treasury stock	(79	)									(79	)
Net cash (used in) provided by financing activities	6,029		(59,068	)	(10,112	)	(44,920	)	—		(108,071	)
Net (decrease) increase in cash and cash equivalents	—		—		(418,119	)	8,051		—		(410,068	)
Cash and cash equivalents, beginning of period					711,375		67,449				778,824
Cash and cash equivalents, end of period	—		—		293,256		75,500		—		368,756

Condensed Consolidating Statement of Cash Flows for the three months ended January 31, 2012 ($ in thousands):

	Toll Brothers, Inc.		Subsidiary Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flow from operating activities:
Net (loss) income	(2,786	)	—		(2,782	)	1,689		1,093		(2,786	)
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization			794		4,419		16				5,229
Stock-based compensation	5,626										5,626
Income from unconsolidated entities					(7,729	)	1,042				(6,687	)
Distributions of earnings from unconsolidated entities					872						872
Income from distressed loans and foreclosed real estate							(4,138	)			(4,138	)
Deferred tax benefit	(1,246	)									(1,246	)
Deferred tax valuation allowance	1,246										1,246
Inventory impairments and write-offs					8,120						8,120
Change in fair value of mortgage loans receivable and derivative instruments							346				346
Gain on marketable securities					(39	)					(39	)
Changes in operating assets and liabilities
Increase in inventory					(100,509	)	(7,959	)			(108,468	)
Origination of mortgage loans							(120,662	)			(120,662	)
Sale of mortgage loans							146,895				146,895
(Increase) decrease in restricted cash	(28,307	)			650		(824	)			(28,481	)
Decrease (increase) in receivables, prepaid expenses and other assets	22,096		(4,793	)	(177,589	)	173,768		(1,701	)	11,781
Increase (decrease) in customer deposits					9,291		(6,061	)			3,230
Increase (decrease) in accounts payable and accrued expenses	(109	)	3,999		(11,553	)	(60,072	)	608		(67,127	)
Decrease in income taxes payable	(5,790	)									(5,790	)
Net cash (used in) provided by operating activities	(9,270	)	—		(276,849	)	124,040		—		(162,079	)
Cash flow used in investing activities:
Purchase of property and equipment — net					(2,563	)	(829	)			(3,392	)
Sale and redemption of marketable securities					88,217						88,217
Investments in and advances to unconsolidated entities					(256	)	(71,528	)			(71,784	)
Return of investments in unconsolidated entities					15,333						15,333
Investments in distressed loans and foreclosed real estate							(26,410	)			(26,410	)
Return of investments in distressed loans and foreclosed real estate							3,702				3,702
Acquisition of a business					(144,746	)					(144,746	)
Net cash used in investing activities	—		—		(44,015	)	(95,065	)	—		(139,080	)
Cash flow (used in) provided by financing activities:
Proceeds from loans payable							199,139				199,139
Principal payments of loans payable					(12,520	)	(225,376	)			(237,896	)
Proceeds from stock-based benefit plans	9,334										9,334
Purchase of treasury stock	(64	)									(64	)
Net cash (used in) provided by financing activities	9,270		—		(12,520	)	(26,237	)	—		(29,487	)
Net (decrease) increase in cash and cash equivalents	—		—		(333,384	)	2,738		—		(330,646	)
Cash and cash equivalents, beginning of period	—				775,300		131,040				906,340
Cash and cash equivalents, end of period	—		—		441,916		133,778		—		575,694

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Other Income - Net

3 Months Ended

Jan. 31, 2013

Other Income and Expenses [Abstract]

Other Income - net

Other Income - Net

The table below provides, for the periods indicated, the components of other income - net (amounts in thousands):

	Three months ended January 31,
	2013		2012
Interest income	$	1,475	$	914
Income from ancillary businesses	1,278		1,083
Gibraltar	151		2,138
Management fee income	327		687
Retained customer deposits	678		654
Land sales, net	145
Other	572		719
Total other income - net	$	4,626	$	6,195

Income from ancillary businesses includes the activity of the Company’s non-core businesses which include its mortgage, title, landscaping, security monitoring and golf course and country club operations. The table below provides, for the periods indicated, revenues and expenses for the Company’s non-core ancillary businesses (amounts in thousands):

	Three months ended January 31,
	2013		2012
Revenue	$	16,641	$	13,813
Expense	$	15,363	$	12,730

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Supplemental Guarantor Information Supplemental Guarantor Information (Level 4 Textuals) (Details)	Jan. 31, 2013
Subsidiary of Common Parent [Member]
Entity Information [Line Items]
Subsidiary of Company, Ownership Percentage by Parent	100.00%
Guarantor Subsidiaries [Member]
Entity Information [Line Items]
Subsidiary of Company, Ownership Percentage by Parent	100.00%

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Employee Retirement Plans

3 Months Ended

Jan. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Employee Retirement Plans

Employee Retirement Plans

The Company has two unfunded supplemental retirement plans (“SERPs”). The table below provides, for the periods indicated, costs recognized and payments made related to its SERPs (amounts in thousands):

	Three months ended January 31,
	2013		2012
Service cost	$	118	$	97
Interest cost	261		303
Amortization of prior service obligation	210		184
Amortization of unrecognized losses	36		17
Total costs	$	625	$	601
Benefits paid	$	233	$	115

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Stock-Based Benefit Plans (Details 3) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012
Stock Price-Based RSUs issued
Stock based expense recognized	$ 5,684	$ 5,626
Stock Price Based Restricted Stock Units [Member]
Stock Price-Based RSUs issued
Stock based expense recognized	562	848
Aggregate outstanding RSUs	306,000		506,000
Unamortized value of RSUs	$ 1,480		$ 2,042

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Income Taxes

3 Months Ended

Jan. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The tables below provide, for the periods indicated, reconciliations of the Company’s effective tax rate from the federal statutory tax rate (amounts in thousands).

	Three months ended January 31,
	2013				2012
	$		%*		$		%*
Federal tax provision (benefit) at statutory rate	2,914		35.0		(2,243	)	35.0
State tax provision (benefit), net of federal provision (benefit)	346		4.2		(271	)	4.2
Increase in unrecognized tax benefits					1,500		(23.4	)
Reversal of accrual for uncertain tax positions					(5,279	)	82.4
Increase in deferred tax assets – net					(525	)	8.2
Valuation allowance – recognized					4,089		(63.8	)
Valuation allowance – reversed	(216	)	(2.6	)	(2,843	)	44.3
Accrued interest on anticipated tax assessments	1,166		14.0		1,950		(30.4	)
Other	(316	)	(3.8	)
Income tax provision (benefit)	3,894		46.8		(3,622	)	56.5

* Due to rounding, amounts may not add.

The Company currently operates in 19 states and is subject to various state tax jurisdictions. The Company estimates its state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction and the Company’s ability to utilize certain tax-saving strategies. Based on the Company’s estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on the Company’s tax strategies, the Company estimated its rate for state income taxes at 6.4% and 6.5% for fiscal 2013 and 2012, respectively.

At October 31, 2012, the Company evaluated evidence related to the need for its deferred tax asset valuation allowances and determined that the valuation allowance on its federal deferred tax assets and certain state valuation allowances were no longer needed. Accordingly, in the fourth quarter of fiscal 2012, the Company reversed a valuation allowance in the amount of $394.7 million.

For state tax purposes, due to past and projected losses in certain jurisdictions where the Company does not have carryback potential and/or cannot sufficiently forecast future taxable income, the Company has recognized net cumulative valuation allowances against its state deferred tax assets of $56.8 million and $57.0 million as of January 31, 2013 and October 31, 2012, respectively.

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Stock-Based Benefit Plans

3 Months Ended

Jan. 31, 2013

Stock-Based Benefit Plans [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Stock-Based Benefit Plans

The Company grants stock options, restricted stock and various types of restricted stock units to its employees and its non-employee directors. Beginning in fiscal 2012, the Company changed the mix of stock-based compensation to its employees (other then certain senior executives) by reducing the number of stock options it grants and, in their place, issued non-performance based restricted stock units ("RSUs") as a form of compensation. The Company also replaced its stock price-based restricted stock unit ("Stock Price-Based RSUs") awards for certain senior executives with a performance-based restricted stock (“Performance-Based RSUs”) award program. Additionally, the Company has an employee stock purchase plan that allows employees to purchase Company stock at a discount.

Information regarding the amount of total stock-based compensation expense and tax benefit recognized by the Company, for the periods indicated, is as follows (amounts in thousands):

	Three months ended January 31,
	2013		2012
Total stock-based compensation expense recognized	$	5,684	$	5,626
Income tax benefit recognized	$	2,079	$	2,061

At January 31, 2013 and October 31, 2012, the aggregate unamortized value of outstanding stock-based compensation awards was approximately $32.6 million and $14.2 million, respectively.

Information about the Company’s more significant stock-based compensation programs is outlined below.

Stock Options

The fair value of each option award is estimated on the date of grant using a lattice-based option valuation model that uses assumptions noted in the following table. The lattice-based option valuation model incorporates ranges of assumptions for inputs, which are disclosed in the table below. Expected volatilities were based on implied volatilities from traded options on the Company’s stock, historical volatility of the Company’s stock and other factors. The expected lives of options granted were derived from the historical exercise patterns and anticipated future patterns and represent the period of time that options granted are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behaviors. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The weighted-average assumptions and the fair value used for stock option grants in fiscal 2013 and 2012 were as follows:

	2013	2012
Expected volatility	44.04%-48.13%	44.20% - 50.24%
Weighted-average volatility	46.70%	46.99%
Risk-free interest rate	0.64%-1.56%	0.78% - 1.77%
Expected life (years)	4.48-8.88	4.59 - 9.06
Dividends	none	none
Weighted-average grant date fair value per share of options granted	$13.05	$8.70

Stock compensation expense, related to stock options, for the periods indicated, was as follows (amounts in thousands):

	2013		2012
Three months ended January 31,	$	3,475	$	3,522

Performance-Based Restricted Stock Units

In the first quarter of fiscal 2013, the Executive Compensation Committee of the Company’s Board of Directors ("Executive Compensation Committee") approved awards of Performance-Based RSUs relating to shares of the Company’s common stock to certain of its senior management. The Performance-Based RSUs are based on the attainment of certain performance metrics of the Company in fiscal 2013. The number of shares underlying the Performance-Based RSUs that will be issued to the recipients may range from 90% to 110% of the base award depending on actual performance as compared to the target performance goals. The Performance-Based RSUs vest over a four-year period provided the recipients continue to be employed by the Company or serve on the board of directors of the Company (as applicable) as specified in the award document.

The value of the Performance-Based RSUs was determined to be equal to the estimated number of shares of the Company’s common stock to be issued multiplied by the closing price of the Company’s common stock on the NYSE on the date the performance goals were approved by the Executive Compensation Committee. The Company evaluates the performance goals quarterly and estimates the number of shares underlying the Performance-Based RSUs that are probable of being issued. Information regarding the issuance, valuation assumptions and amortization of the Company’s Performance-Based RSUs issued in fiscal 2013 and 2012 is provided below.

	2013		2012
Estimated number of shares underlying Performance-Based RSUs to be issued	289,490		350,000
Closing price of the Company’s common stock on date performance goals were approved	$	37.78	$	20.50
Estimated aggregate fair value of Performance-Based RSUs to be issued (in thousands)	$	10,937	$	7,185
Performance-Based RSU expense recognized in the three months ended January 31, (in thousands):	$	514	$	936
Unamortized value of Performance-Based RSUs at January 31, (in thousands):	$	14,059	$	6,249

Stock Price-Based Restricted Stock Units

Information regarding the amortization of the Company’s Stock Price-Based RSUs, for the periods indicated, is provided below (amounts in thousands).

	2013		2012
Three months ended January 31,	$	562	$	848

Information regarding the aggregate number of outstanding Stock Price-Based RSUs and aggregate unamortized value of the outstanding Stock Price-Based RSUs, as of the date indicated, is provided below.

	January 31, 2013		October 31, 2012
Aggregate outstanding Stock Price-Based RSUs	306,000		506,000
Cumulative unamortized value of Stock Price-Based RSUs (in thousands)	$	1,480	$	2,042

In December 2012, the Company issued and distributed 200,000 shares of stock pursuant to a Stock Price-Based RSU award.

Non-Performance Based Restricted Stock Units

The Company issued RSUs to various officers, employees and non-employee directors. The value of the RSUs was determined to be equal to the number of shares of the Company’s common stock to be issued pursuant to the RSUs, multiplied by the closing price of the Company’s common stock on the NYSE on the date the RSUs were awarded. Information regarding these RSUs issued in the three months ended January 31, 2013 and 2012 is as follows:

	2013		2012
Number of RSUs issued	94,080		107,820
Closing price of the Company’s common stock on date of issuance	$	32.22	$	20.50
Aggregate fair value of RSUs issued (in thousands)	$	3,031	$	2,210

Information regarding the amortization of the Company’s RSUs, for the periods indicated, is as follows (amounts in thousands):

	2013		2012
Three months ended January 31,	$	1,112	$	314

Information regarding the aggregate number of outstanding RSUs and aggregate unamortized value of the outstanding RSUs, as of the date indicated, is as follows:

	January 31, 2013		October 31, 2012
Aggregate outstanding RSUs	230,214		137,764
Cumulative unamortized value of RSUs (in thousands)	$	3,209	$	1,326

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Stock Repurchase Program

3 Months Ended

Jan. 31, 2013

Stock Repurchase Program [Abstract]

Stock Repurchase Program

Stock Repurchase Program

In March 2003, the Company’s Board of Directors authorized the repurchase of up to 20 million shares of its common stock, par value $.01, from time to time, in open market transactions or otherwise, for the purpose of providing shares for its various employee benefit plans. The table below provides, for the periods indicated, information about the Company’s share repurchase program.

	Three months ended January 31,
	2013		2012
Number of shares purchased	3,000		3,000
Average price per share	$	32.59	$	20.61
Remaining authorization at January 31 (in thousands):	8,764		8,783

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Stock Repurchase Program (Details) (USD $)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Mar. 31, 2003
Share Repurchase Program
Number of shares purchased	3,000	3,000
Average price per share	$ 32.59	$ 20.61
Remaining authorization at January 31:	8,764,000	8,783,000	20,000,000
Stock Repurchase Program (Textual) [Abstract]
Authorization to repurchase shares	8,764,000	8,783,000	20,000,000
Par value of common stock repurchased			$ 0.01

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Fair Value Disclosures (Level 4 FV of Fin Instr) (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Summary of assets and (liabilities), measured at fair value on a recurring basis
Mortgage Loans on Real Estate, Commercial and Consumer, Net	$ 49,400	$ 86,386
Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Mortgage Loans on Real Estate, Commercial and Consumer, Net	49,400	86,386
Forward Loan Commitments - Residential Mortgage Loans Held for Sale [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of commitments	649	(102)
Interest Rate Lock Commitments [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of commitments	(1,345)	(202)
Forward Loan Commitments [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of commitments	1,345	202
Corporate Securities [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of securities	246,487	260,772
Certificates of Deposit [Member] | Level 2 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of securities	148,105	148,112
Tax exempt Bond Fund [Member] | Level 1 [Member]
Summary of assets and (liabilities), measured at fair value on a recurring basis
Fair value of securities	$ 30,227	$ 30,184

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Employee Retirement Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Costs and payments related to supplemental retirement plans
Service cost	$ 118	$ 97
Interest cost	261	303
Amortization of prior service obligation	210	184
Amortization of unrecognized losses	36	17
Total costs	625	601
Benefits paid	$ 233	$ 115

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Fair Value Disclosures (Tables)

3 Months Ended

Jan. 31, 2013

Fair Value Disclosures [Abstract]

Summary of assets and (liabilities), measured at fair value on a recurring basis

The table below provides, as of the date indicated, a summary of assets (liabilities) related to the Company’s financial instruments, measured at fair value on a recurring basis (amounts in thousands):

		Fair value
Financial Instrument	Fair value hierarchy	January 31, 2013			October 31, 2012
Corporate Securities	Level 2	$	246,487		$	260,772
Certificates of Deposit	Level 2	$	148,105		$	148,112
Short-Term Tax-Exempt Bond Fund	Level 1	$	30,227		$	30,184
Residential Mortgage Loans Held for Sale	Level 2	$	49,400		$	86,386
Forward Loan Commitments—Residential Mortgage Loans Held for Sale	Level 2	$	649		$	(102	)
Interest Rate Lock Commitments (“IRLCs”)	Level 2	$	(1,345	)	$	(202	)
Forward Loan Commitments—IRLCs	Level 2	$	1,345		$	202

Aggregate unpaid principal and fair value of mortgage loans held for sale

The table below provides, as of the date indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale (amounts in thousands):

	Aggregate unpaid principal balance		Fair value		Excess
At January 31, 2013	$	49,304	$	49,400	$	96
At October 31, 2012	$	84,986	$	86,386	$	1,400

Summary of amortized cost gross unrealized holding gains and losses

The table below provides, as of the date indicated, the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of marketable securities (amounts in thousands):

	January 31, 2013			October 31, 2012
Amortized cost	$	424,387		$	438,755
Gross unrealized holding gains	552			451
Gross unrealized holding losses	(120		)	(138		)
Fair value	$	424,819		$	439,068

Fair Value, Measurement Inputs, Disclosure [Table Text Block]

The table below summarizes, for the periods indicated, the ranges of certain quantitative unobservable inputs utilized in determining the fair value of impaired communities:

	Selling price per unit (in thousands)	Sales pace per year (in units)	Discount rate
Three months ended January 31, 2013	$303 - $307	15	15.3%
Three months ended October 31, 2012	$501 - $536	11	18.3%
Three months ended July 31, 2012	$175 - $571	4 - 12	14.0% - 17.5%
Three months ended April 30, 2012	$413 - $472	6 - 17	17.5%
Three months ended January 31, 2012	$344 - $2,287	1 - 25	13.0% - 18.8%

Fair value of inventory adjusted for impairment

The table below provides, for the periods indicated, the fair value of operating communities whose carrying value was adjusted and the amount of impairment charges recognized ($ amounts in thousands):

		Impaired operating communities
Three months ended:	Number of communities tested	Number of communities	Fair value of communities, net of impairment charges		Impairment charges
Fiscal 2013:
January 31	60	2	$	5,377	$	700
					$	700
Fiscal 2012:
January 31	113	8	$	49,758	$	6,425
April 30	115	2	$	22,962	2,560
July 31	115	4	$	6,609	2,685
October 31	108	3	$	9,319	1,400
					$	13,070

Carrying value and estimated fair value of distressed loan portfolio

The table below provides, as of the date indicated, the carrying amount and estimated fair value of distressed loans (amounts in thousands):

	January 31, 2013		October 31, 2012
Carrying amount	$	42,832	$	37,169
Estimated fair value	$	44,065	$	38,109

Book value and estimated fair value of the Company's debt

The table below provides, as of the date indicated, the book value and estimated fair value of the Company’s debt (amounts in thousands):

		January 31, 2013				October 31, 2012
	Fair value hierarchy	Book value		Estimated fair value		Book value		Estimated fair value
Loans payable (a)	Level 2	$	93,314	$	93,014	$	99,817	$	99,093
Senior notes (b)	Level 1	2,030,121		2,272,730		2,089,189		2,340,189
Mortgage company warehouse loan (c)	Level 2	43,464		43,464		72,664		72,664
		$	2,166,899	$	2,409,208	$	2,261,670	$	2,511,946

(a) The estimated fair value of loans payable was based upon their indicated market prices or the interest rates that the Company believed were available to it for loans with similar terms and remaining maturities as of the applicable valuation date.

(b) The estimated fair value of the Company’s senior notes is based upon their indicated market prices.

(c) The Company believes that the carrying value of its mortgage company warehouse loan borrowings approximates their fair value.

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Senior Notes Payable (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended				1 Months Ended
	Jan. 31, 2013 debtissuances	Jan. 31, 2012	Oct. 31, 2012	Jan. 31, 2013 Senior Notes Issued for Cash [Member]	Nov. 30, 2012 Six Point Eight Seven Five Percent Senior Notes Due Two Thousand and Twelve [Member]	Nov. 22, 2002 Six Point Eight Seven Five Percent Senior Notes Due Two Thousand and Twelve [Member]
Debt Instrument [Line Items]
Number of issuances of senior debt	7
Senior Note Payable (Textual) [Abstract]
Issued Senior Notes	$ 2,021,897		$ 2,080,463	$ 2,030,000
Repayments of Senior Debt	$ 59,068				$ 59,068
Debt Instrument, Interest Rate, Stated Percentage						6.875%

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Geographic Segments

3 Months Ended

Jan. 31, 2013

Geographic Segments [Abstract]

Segment Reporting Disclosure [Text Block]

Geographic Segments

Revenue and income (loss) before income taxes for each of the Company’s geographic segments, for the periods indicated, were as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Revenue:
North	$	92,670		$	75,580
Mid-Atlantic	132,151			100,799
South	87,185			76,466
West	112,595			69,110
Total	$	424,601		$	321,955
Income (loss) before income taxes:
North	$	7,242		$	1,201
Mid-Atlantic	15,095			10,642
South	2,725			(2,077		)
West	8,047			5,603
Corporate and other	(24,783		)	(21,777		)
Total	$	8,326		$	(6,408	)

“Corporate and other” is comprised principally of general corporate expenses such as the offices of the Executive Officers of the Company, and the corporate finance, accounting, audit, tax, human resources, risk management, marketing and legal groups, interest income and income from certain of the Company’s ancillary businesses, Gibraltar and income from a number of the Company's unconsolidated entities.

Total assets for each of the Company’s geographic segments, as of the date indicated, are shown in the table below (amounts in thousands).

	January 31, 2013		October 31, 2012
North	$	1,430,831	$	1,205,900
Mid-Atlantic	1,349,624		1,304,798
South	869,325		821,001
West	959,673		913,699
Corporate and other	1,508,798		1,935,646
Total	$	6,118,251	$	6,181,044

Corporate and other is comprised principally of cash and cash equivalents, marketable securities, restricted cash, the assets of the Company’s manufacturing facilities and mortgage subsidiary, and its Gibraltar investments.

The Company provided for inventory impairment charges and the expensing of costs that it believed not to be recoverable and write-downs of investments in unconsolidated entities (including the Company's pro-rata share of impairment charges recognized by the unconsolidated entities in which it has an investment) and recoveries of prior charges for the periods indicated, as shown in the table below; the net carrying value of inventory and investments in and advances to unconsolidated entities for each of the Company’s geographic segments, as of the dates indicated, are also shown in the table below (amounts in thousands):

	Net Carrying Value				Impairments
	At January 31,		At October 31,		Three months ended January 31,
	2013		2012		2013			2012
Inventory:
Land controlled for future communities:
North	$	14,937	$	13,196	$	88		$	24
Mid-Atlantic	26,031		27,249		16			199
South	8,130		7,724		355			555
West	5,423		8,131		(450		)	(1		)
	54,521		56,300		9			777
Land owned for future communities:
North	395,575		226,082
Mid-Atlantic	474,446		431,620
South	163,080		141,644					918
West	220,001		241,027
	1,253,102		1,040,373		—			918
Operating communities:
North	855,440		803,085		500			2,265
Mid-Atlantic	739,084		729,739
South	633,822		603,239					4,160
West	619,078		528,451		200
	2,847,424		2,664,514		700			6,425
Total	$	4,155,047	$	3,761,187	$	709		$	8,120
Investments in and advances to unconsolidated entities:
North	$	143,358	$	142,213
South	31,609		31,252
West	106,368		116,452
Corporate	40,516		40,700
Total	$	321,851	$	330,617	$	—		$	—

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Investments in and Advances to Unconsolidated Entities (Tables)

3 Months Ended

Jan. 31, 2013

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Condensed balance sheet aggregated by type of business

Condensed Balance Sheets:

	January 31, 2013
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture		Total
Cash and cash equivalents	$	21,573	$	33,450	$	10,166		$	63,753	$	128,942
Inventory	263,743		310,002		5,676					579,421
Non-performing loan portfolio								185,142		185,142
Rental properties					170,406					170,406
Real estate owned (“REO”)					1,036			261,237		262,273
Other assets (1)	10,389		71,319		9,030			277,305		368,043
Total assets	$	295,705	$	414,771	$	196,314		$	787,437	$	1,694,227
Debt (1)	$	121,435	$	33,859	$	194,439		$	311,801	$	661,534
Other liabilities	14,174		8,225		5,348			501		28,248
Members’ equity (deficit)	160,096		372,687		(3,473		)	190,054		719,364
Noncontrolling interest								285,081		285,081
Total liabilities and equity	$	295,705	$	414,771	$	196,314		$	787,437	$	1,694,227
Company’s net investment in unconsolidated entities (2)	$	106,368	$	174,967	$	2,982		$	37,534	$	321,851

	October 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture		Total
Cash and cash equivalents	$	17,189	$	40,126	$	11,005		$	44,176	$	112,496
Inventory	255,561		294,724		5,643					555,928
Non-performing loan portfolio								226,315		226,315
Rental properties					173,767					173,767
Real estate owned (“REO”)								254,250		254,250
Other assets (1)	12,427		72,301		9,182			237,476		331,386
Total assets	$	285,177	$	407,151	$	199,597		$	762,217	$	1,654,142
Debt (1)	$	96,862	$	34,184	$	195,359		$	311,801	$	638,206
Other liabilities	13,890		5,707		5,202			561		25,360
Members’ equity (deficit)	174,425		367,260		(964		)	179,942		720,663
Noncontrolling interest								269,913		269,913
Total liabilities and equity	$	285,177	$	407,151	$	199,597		$	762,217	$	1,654,142
Company’s net investment in unconsolidated entities (2)	$	116,452	$	173,465	$	3,357		$	37,343	$	330,617

(1) Included in other assets of the Structured Asset Joint Venture at January 31, 2013 and October 31, 2012 is $277.3 million and $237.5 million, respectively, of restricted cash held in a defeasance account which will be used to repay debt of the Structured Asset Joint Venture.

(2) Differences between the Company’s net investment in unconsolidated entities and its underlying equity in the net assets of the entities is primarily a result of the acquisition price of an investment in an entity in fiscal 2012 which was in excess of the Company's pro-rata share of the underlying equity, impairments related to the Company’s investments in unconsolidated entities, a loan made to one of the entities by the Company, and distributions from entities in excess of the carrying amount of the Company’s net investment.

Condensed statements of operations aggregate by type of business

Condensed Statements of Operations and Comprehensive Income (Loss):

	For the three months ended January 31, 2013
	Develop- ment Joint Ventures			Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture			Total
Revenues	$	1,627		$	8,970	$	9,682		$	9,705		$	29,984
Cost of revenues	1,219			7,105		4,293			10,338			22,955
Other expenses	191			193		5,766			1,058			7,208
Total expenses—net	1,410			7,298		10,059			11,396			30,163
Gain on disposition of loans and REO									26,892			26,892
Income (loss) from operations	217			1,672		(377		)	25,201			26,713
Other income	3			19					79			101
Net income (loss) before noncontrolling interest	220			1,691		(377		)	25,280			26,814
Less: Net income attributable to noncontrolling interest									(15,168		)	(15,168		)
Net income (loss)	220			1,691		(377		)	10,112			11,646
Other comprehensive income						302						302
Total comprehensive income (loss)	$	220		$	1,691	$	(75	)	$	10,112		$	11,948
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	(98	)	$	843	$	425		$	1,913		$	3,083

	For the three months ended January 31, 2012
	Develop- ment Joint Ventures		Home Building Joint Ventures		Trust and Trust II			Structured Asset Joint Venture			Total
Revenues	$	33,584	$	23,430	$	9,476		$	8,133		$	74,623
Cost of revenues	31,771		17,794		3,343			11,067			63,975
Other expenses	225		945		6,785			2,631			10,586
Total expenses—net	31,996		18,739		10,128			13,698			74,561
Loss on disposition of loans and REO								(44		)	(44		)
Income (loss) from operations	1,588		4,691		(652		)	(5,609		)	18
Other income	2,653		5					137			2,795
Net income (loss) before noncontrolling interest	4,241		4,696		(652		)	(5,472		)	2,813
Less: Net loss attributable to noncontrolling interest								3,283			3,283
Net income (loss)	4,241		4,696		(652		)	(2,189		)	6,096
Other comprehensive loss					(447		)				(447		)
Total comprehensive income (loss)	$	4,241	$	4,696	$	(1,099	)	$	(2,189	)	$	5,649
Company’s equity in earnings (losses) of unconsolidated entities (3)	$	1,996	$	4,520	$	623		$	(452	)	$	6,687

(3) Differences between the Company’s equity in earnings (losses) of unconsolidated entities and the Company's percentage interest in the underlying net income (loss) of the entities is primarily a result of impairments related to the Company’s investment in unconsolidated entities, distributions from entities in excess of the carrying amount of the Company’s net investment, and the Company’s share of the entities’ profits related to home sites purchased by the Company which reduces the Company’s cost basis of the home sites.

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Investments in Distressed Loans and Foreclosed Real Estate (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Oct. 31, 2012	Dec. 28, 2011
Investment in non-performing loan portfolios
Impaired Financing Receivable, Unpaid Principal Balance	$ 91,339		$ 99,693
Discount on acquired loans	48,507		62,524
Investments in distressed loans	42,832		37,169
Summary of accretable yield and nonaccretable difference on investments in non-performing loans portfolios
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition	0			52,524
Nonaccretable difference				(5,125)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Cash Flows Expected to be Collected at Acquisition				47,399
Certain loans acquired in transfer not accouted for as debt security,acquisition date accret cash flow				(20,514)
Non-performing loans carrying amount				26,885
Activity in accretable yield for investment in non-performing loan portfolios
Begining balance	17,196	42,326
Certain Loans Acquired in Transfer Not Accounted for as a Debt Security, Accret Dff, at acquistion	0	20,514
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Disposals of Loans	2,387	1,768
Accretions	(1,403)	(3,228)
Ending balance	13,406	57,844
Schedule of changes in real estate owned [Roll Forward]
Real Estate Owned - total beginning of period	58,353	5,939
Real Estate Owned Additions	11,040	1,164
Real Estate Owned, Sales	(439)	(615)
Real Estate Owned, Impairments	(15)
Real Estate Held And Used Depreciation	(175)
Real Estate Owned - total end of period	$ 68,764	$ 6,488

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Inventory (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Total Inventory
Inventory	$ 4,155,047	$ 3,761,187
Land controlled for future communities [Member]
Total Inventory
Inventory	54,521	56,300
Land owned for future communities [Member]
Total Inventory
Inventory	1,253,102	1,040,373
Operating communities [Member]
Total Inventory
Inventory	$ 2,847,424	$ 2,664,514

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Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Net income (loss)	$ 4,432	$ (2,786)
Other comprehensive income (loss), net of tax:
Change in pension liability	(173)	(109)
Change in fair value of available-for-sale securities	96	243
Unrealized income (loss) on derivative held by equity investee	93	(795)
Other Comprehensive Income (Loss), Net of Tax	16	(661)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 4,448	$ (3,447)

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Investments in Distressed Loans and Foreclosed Real Estate

3 Months Ended

Jan. 31, 2013

Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate [Abstract]

Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate

Investments in Distressed Loans and Foreclosed Real Estate

Investments in Distressed Loans

The Company’s investment in distressed loans consisted of the following as of the dates indicated (amounts in thousands):

	January 31, 2013			October 31, 2012
Unpaid principal balance	$	91,339		$	99,693
Discount on acquired loans	(48,507		)	(62,524		)
Carrying value	$	42,832		$	37,169

The Company's investment in distressed loans includes performing loans and non-performing loans and also includes investments in loan participations classified as secured borrowings under ASC 860, "Transfers and Servicing".

For acquired distressed loans where it is probable that the Company will collect less than the contractual amounts due under the terms of the loan based, at least in part, on the assessment of the credit quality of the borrowers, the loans are accounted for under ASC Topic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality" ("ASC 310-30"). Under ASC 310-30, provided the Company does not presently have the intention to utilize real estate secured by the loans for use in its operations or to significantly improve the collateral for resale, the amount by which the future cash flows expected to be collected at the acquisition date exceeds the estimated fair value of the loan, or accretable yield, is recognized in other income - net over the estimated remaining life of the loan using a level yield methodology . The difference between the contractually required payments of the loan as of the acquisition date and the total cash flows expected to be collected, or nonaccretable difference, is not recognized.

The Company may acquire distressed loans where it has determined that (1) it is possible to collect all contractual amounts due under the terms of the loan, (2) it expects to utilize the real estate secured by the loans in its operations, or (3) forecasted cash flows cannot be reasonably estimated. For non-performing loans acquired meeting these conditions, in accordance with ASC 310-10, "Receivable," the loans are classified as nonaccrual and interest income is not recognized. When a loan is classified as nonaccrual, any subsequent cash receipt is accounted for using the cost recovery method. For performing loans, payments are applied to principal and interest in accordance with the terms of the loan when received. As of January 31, 2013, the Company had investments in performing and non-performing loans, accounted for in accordance with ASC 310-10, of $14.0 million and $6.0 million, respectively. At October 31, 2012, the Company had investments in non-performing loans of $9.2 million. The Company had no investments in performing loans at October 31, 2012.

In the three months ended January 31, 2013, Gibraltar purchased distressed loans for approximately $16.1 million. The purchases included performing and non-performing loans secured by retail shopping centers, residential land and golf courses located in seven states.

The following table summarizes, for the distressed loans acquired in the three months ended January 31, 2012 that were accounted for in accordance with ASC 310-30, the accretable yield and the nonaccretable difference of the Company's investment in these loans as of their acquisition date (amounts in thousands).

	Three months ended January 31,
	2012
Contractually required payments, including interest	$	52,524
Nonaccretable difference	(5,125		)
Cash flows expected to be collected	47,399
Accretable yield	(20,514		)
Non-performing loans carrying amount	$	26,885

There were no distressed loans purchased during the three months ended January 31, 2013 that met the requirements of ASC 310-30.

The accretable yield activity for the Company’s investment in distressed loans accounted for under ASC 310-30 for the three-month periods ended January 31, 2013 and 2012 was as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	17,196		$	42,326
Loans acquired	—			20,514
Deletions	(2,387		)	(1,768		)
Accretion	(1,403		)	(3,228		)
Balance, end of period	$	13,406		$	57,844

Deletions primarily represent loan dispositions, which includes foreclosure of the underlying collateral and resulting removal of the loans from the accretable yield portfolios, and reclassifications from accretable yield to nonaccretable yield. The additions to nonaccretable yield and the accretion of interest income are based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to gather additional information regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in the three-month periods ended January 31, 2013 and 2012 is not necessarily indicative of expected future results.

Real Estate Owned (REO)

The following table presents the activity in REO for the three-month periods ended January 31, 2013 and 2012 (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	58,353		$	5,939
Additions	11,040			1,164
Sales	(439		)	(615		)
Impairments	(15		)
Depreciation	(175		)
Balance, end of period	$	68,764		$	6,488

As of January 31, 2013, approximately $5.9 million and $62.8 million of REO was classified as held-for-sale and held-and-used, respectively. As of January 31, 2012, approximately $1.3 million and $5.2 million of REO was classified as held-for-sale and held-and-used, respectively. For the three-month period ended January 31, 2013, the Company recorded gains of $0.6 million from acquisitions of REO through foreclosure. There were no gains or losses recorded in the three-month period ended January 31, 2012 from REO conversions.

General

The Company’s earnings from Gibraltar's operations, excluding its investment in the Structured Asset Joint Venture, are included in other income - net in its Condensed Consolidated Statements of Operations. In the three-month periods ended January 31, 2013 and 2012, the Company recognized $0.2 million and $2.1 million of earnings, respectively, from Gibraltar's operations.

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Stock-Based Benefit Plans (Details 1) (USD $)	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate	46.70%	46.99%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payments	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 13.05	$ 8.70
Stock based expense recognized	5,684,000	5,626,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based expense recognized	$ 3,475,000	$ 3,522,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	48.13%	50.24%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.56%	1.77%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	8 years 10 months 17 days	9 years 0 months 22 days
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	44.04%	44.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.64%	0.78%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	4 years 5 months 22 days	4 years 7 months 2 days

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Supplemental Guarantor Information (Level 4 IS) (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Supplemental Condensed Consolidating Statement of Operations
Revenues	$ 424,601	$ 321,955
Cost of revenues	345,937	271,608
Selling, general and administrative	78,047	69,637
Interest expense	0	0
Total	423,984	341,245
Income (loss) from operations	617	(19,290)
Other [Abstract]
Income from unconsolidated entities	3,083	6,687
Other income - net	4,626	6,195
Loss from subsidiaries	0	0
Income (loss) before income taxes	8,326	(6,408)
Income tax provision (benefit)	3,894	(3,622)
Net income (loss)	4,432	(2,786)
Other Comprehensive Income (Loss), Net of Tax	16	(661)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	4,448	(3,447)
Toll Brothers Inc. [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues
Cost of revenues
Selling, general and administrative	16	13
Interest expense
Total	16	13
Income (loss) from operations	(16)	(13)
Other [Abstract]
Income from unconsolidated entities
Other income - net	4	7
Loss from subsidiaries	8,338	(6,402)
Income (loss) before income taxes	8,326	(6,408)
Income tax provision (benefit)	3,894	(3,622)
Net income (loss)	4,432	(2,786)
Other Comprehensive Income (Loss), Net of Tax	(173)	(109)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	4,259	(2,895)
Subsidiary Issuer [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues
Cost of revenues
Selling, general and administrative	687	478
Interest expense	31,422	25,286
Total	32,109	25,764
Income (loss) from operations	(32,109)	(25,764)
Other [Abstract]
Income from unconsolidated entities
Other income - net	29,727	25,764
Loss from subsidiaries
Income (loss) before income taxes	(2,382)	0
Income tax provision (benefit)	(933)	0
Net income (loss)	(1,449)	0
Other Comprehensive Income (Loss), Net of Tax
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	(1,449)	0
Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues	419,778	327,692
Cost of revenues	340,182	272,884
Selling, general and administrative	83,578	73,287
Interest expense
Total	423,760	346,171
Income (loss) from operations	(3,982)	(18,479)
Other [Abstract]
Income from unconsolidated entities	1,118	5,229
Other income - net	5,995	2,966
Loss from subsidiaries	5,207	3,884
Income (loss) before income taxes	8,338	(6,400)
Income tax provision (benefit)	3,266	(3,618)
Net income (loss)	5,072	(2,782)
Other Comprehensive Income (Loss), Net of Tax	225	(552)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	5,297	(3,334)
Non-Guarantor Subsidiaries [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues	25,490	12,386
Cost of revenues	11,144	674
Selling, general and administrative	11,070	9,519
Interest expense	160
Total	22,374	10,193
Income (loss) from operations	3,116	2,193
Other [Abstract]
Income from unconsolidated entities	1,965	1,458
Other income - net	126	233
Loss from subsidiaries
Income (loss) before income taxes	5,207	3,884
Income tax provision (benefit)	2,039	2,195
Net income (loss)	3,168	1,689
Other Comprehensive Income (Loss), Net of Tax	(36)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	3,132	1,689
Eliminations [Member]
Supplemental Condensed Consolidating Statement of Operations
Revenues	(20,667)	(18,123)
Cost of revenues	(5,389)	(1,950)
Selling, general and administrative	(17,304)	(13,660)
Interest expense	(31,582)	(25,286)
Total	(54,275)	(40,896)
Income (loss) from operations	33,608	22,773
Other [Abstract]
Income from unconsolidated entities
Other income - net	(31,226)	(22,775)
Loss from subsidiaries	(13,545)	2,518
Income (loss) before income taxes	(11,163)	2,516
Income tax provision (benefit)	(4,372)	1,423
Net income (loss)	(6,791)	1,093
Other Comprehensive Income (Loss), Net of Tax
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (6,791)	$ 1,093

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Fair Value Disclosures Fair Value Disclosures (Level 4 Inv Impair inputs) (Details 3) (Details) (Operating communities [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2013	Oct. 31, 2012	Jul. 31, 2012	Apr. 30, 2012	Jan. 31, 2012
Minimum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Average selling price	$ 303	$ 501	$ 175	$ 413	$ 344
Sales pace (in ones)	15	11	4	6	1
Discount rate	15.30%	18.30%	14.00%	17.50%	13.00%
Maximum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Average selling price	$ 307	$ 536	$ 571	$ 472	$ 2,287
Sales pace (in ones)	15	11	12	17	25
Discount rate	15.30%	18.30%	17.50%	17.50%	18.80%

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Investments in Distressed Loans and Foreclosed Real Estate (Tables)

3 Months Ended

Jan. 31, 2013

Investments in Non-Performing Loan Portfolios and Foreclosed Real Estate [Abstract]

Investment in non-performing loan portfolios

The Company’s investment in distressed loans consisted of the following as of the dates indicated (amounts in thousands):

	January 31, 2013			October 31, 2012
Unpaid principal balance	$	91,339		$	99,693
Discount on acquired loans	(48,507		)	(62,524		)
Carrying value	$	42,832		$	37,169

Summary of accretable yield and nonaccretable difference on investments in non-performing loans portfolios

The following table summarizes, for the distressed loans acquired in the three months ended January 31, 2012 that were accounted for in accordance with ASC 310-30, the accretable yield and the nonaccretable difference of the Company's investment in these loans as of their acquisition date (amounts in thousands).

	Three months ended January 31,
	2012
Contractually required payments, including interest	$	52,524
Nonaccretable difference	(5,125		)
Cash flows expected to be collected	47,399
Accretable yield	(20,514		)
Non-performing loans carrying amount	$	26,885

There were no distressed loans purchased during the three months ended January 31, 2013 that met the requirements of ASC 310-30.

Activity in accretable yield for investment in non-performing loan portfolios

The accretable yield activity for the Company’s investment in distressed loans accounted for under ASC 310-30 for the three-month periods ended January 31, 2013 and 2012 was as follows (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	17,196		$	42,326
Loans acquired	—			20,514
Deletions	(2,387		)	(1,768		)
Accretion	(1,403		)	(3,228		)
Balance, end of period	$	13,406		$	57,844

Schedule of Changes in Real Estate Owned [Table Text Block]

The following table presents the activity in REO for the three-month periods ended January 31, 2013 and 2012 (amounts in thousands):

	Three months ended January 31,
	2013			2012
Balance, beginning of period	$	58,353		$	5,939
Additions	11,040			1,164
Sales	(439		)	(615		)
Impairments	(15		)
Depreciation	(175		)
Balance, end of period	$	68,764		$	6,488

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Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2013	Oct. 31, 2012
Company's purchase commitments
Aggregate purchase commitments unrelated parties	$ 973,052	$ 742,918
Unconsolidated entities that the Company has investments in	65,805	4,067
Total	1,038,857	746,985
Deposits against aggregate purchase commitments	42,428	42,921
Additional cash required to acquire land	996,429	704,064
Total	1,038,857	746,985
Amount of Additional Cash Required to Acquire Land Included in Accrued Expenses	$ 574	$ 4,328

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Supplemental Disclosure to Statements of Cash Flows (Tables)

3 Months Ended

Jan. 31, 2013

Supplemental Cash Flow Elements [Abstract]

Supplemental disclosures to the statements of cash flows

The following are supplemental disclosures to the statements of cash flows for the three months ended January 31, 2013 and 2012 (amounts in thousands):

	2013			2012
Cash flow information:
Interest capitalized, net of amount paid	$	6,801		$	766
Income tax payment				$	2,093
Income tax refunds	$	469
Non-cash activity:
Cost of inventory acquired through seller financing or municipal bonds, net	$	15,998		$	431
Miscellaneous decreases to inventory	$	(144	)	$	(75	)
Defined benefit plan amendment	$	519		$	310
Increase in accrued expenses related to Stock Price-Based RSUs paid	$	2,939
Increase of investments in unconsolidated entities due to reduction in letters of credit or accrued liabilities	$	(24	)	$	(26	)
Transfer of inventory to investment in distressed loans and foreclosed real estate				$	802
Transfer of inventory to investment in unconsolidated entities				$	5,793
Unrealized gain on derivative held by equity investee	$	151		$	795
Miscellaneous increases (decreases) to investments in unconsolidated entities	$	86		$	(18	)
Acquisition of Business:
Fair value of assets purchased				$	149,959
Liabilities assumed				$	5,213
Cash paid				$	144,746

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Commitments and Contingencies

3 Months Ended

Jan. 31, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Legal Proceedings

The Company is involved in various claims and litigation arising principally in the ordinary course of business. The Company believes that adequate provision for resolution of all current claims and pending litigation has been made for probable losses and the disposition of these matters will not have a material adverse effect on the Company’s results of operations and liquidity or on its financial condition.

Investments in and Advances to Unconsolidated Entities

See Note 3, “Investments in and Advances to Unconsolidated Entities,” for more information regarding the Company’s commitments to these entities.

Land Purchase Commitments

Generally, the Company’s option and purchase agreements to acquire land parcels do not require the Company to purchase those land parcels, although the Company may, in some cases, forfeit any deposit balance outstanding if and when it terminates an option and purchase agreement. If market conditions are weak, approvals needed to develop the land are uncertain or other factors exist that make the purchase undesirable, the Company may not acquire the land. Whether an option and purchase agreement is legally terminated or not, the Company reviews the amount recorded for the land parcel subject to the option and purchase agreement to determine if the amount is recoverable. While the Company may not formally terminate the option and purchase agreements for those land parcels that it does not expect to acquire, it writes off any non-refundable deposits and costs previously capitalized to such land parcels in the periods that it determines such costs are not recoverable.

Information regarding the Company’s land purchase commitments, as of the date indicated, is provided in the table below (amounts in thousands):

	January 31, 2013		October 31, 2012
Aggregate purchase commitments:
Unrelated parties	$	973,052	$	742,918
Unconsolidated entities that the Company has investments in	65,805		4,067
Total	$	1,038,857	$	746,985
Deposits against aggregate purchase commitments	$	42,428	$	42,921
Additional cash required to acquire land	996,429		704,064
Total	$	1,038,857	$	746,985
Amount of additional cash required to acquire land in accrued expenses	$	574	$	4,328

In addition, the Company expects to purchase approximately 545 additional lots from a joint venture in which it has a 50% interest. The purchase price of the lots will be determined at a future date.

At January 31, 2013, the Company also had purchase commitments to acquire land for apartment developments of approximately $93.3 million.

The Company has additional land parcels under option that have been excluded from the aforementioned aggregate purchase amounts since it does not believe that it will complete the purchase of these land parcels and no additional funds will be required from the Company to terminate these contracts.

Surety Bonds and Letters of Credit

At January 31, 2013, the Company had outstanding surety bonds amounting to $375.2 million, primarily related to its obligations to various governmental entities to construct improvements in the Company’s various communities. The Company estimates that $219.4 million of work remains on these improvements. The Company has an additional $61.3 million of surety bonds outstanding that guarantee other obligations of the Company. The Company believes it is not probable that any outstanding bonds will be drawn upon.

At January 31, 2013, the Company had outstanding letters of credit of $78.8 million, including $66.0 million under its credit facility and $12.8 million collateralized by restricted cash. These letters of credit were issued to secure various financial obligations of the Company including insurance policy deductibles and other claims, land deposits and security to complete improvements in communities which it is operating. The Company believes it is not probable that any outstanding letters of credit will be drawn upon.

Backlog

At January 31, 2013, the Company had agreements of sale outstanding to deliver 2,796 homes with an aggregate sales value of $1.86 billion.

Mortgage Commitments

The Company’s mortgage subsidiary provides mortgage financing for a portion of the Company’s home closings. For those home buyers to whom the Company’s mortgage subsidiary provides mortgages, it determines whether the home buyer qualifies for the mortgage he or she is seeking based upon information provided by the home buyer and other sources. For those home buyers that qualify, the Company’s 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, the Company’s 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. The Company believes that these investors have adequate financial resources to honor their commitments to its mortgage subsidiary.

Information regarding the Company’s mortgage commitments, as of the date indicated, is provided in the table below (amounts in thousands):

	January 31, 2013		October 31, 2012
Aggregate mortgage loan commitments:
IRLCs	$	128,023	$	111,173
Non-IRLCs	553,392		456,825
Total	$	681,415	$	567,998
Investor commitments to purchase:
IRLCs	$	128,023	$	111,173
Mortgage loans receivable	45,090		80,697
Total	$	173,113	$	191,870