Information on Operating Segments

3 Months Ended

Jan. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Information on Operating Segments

We operate in two segments: traditional home building and urban infill. We build and sell detached and attached homes in luxury residential communities located in affluent suburban markets that cater to move-up, empty-nester, active-adult, age-qualified, and second-home buyers in the United States (“Traditional Home Building”). We also build and sell homes in urban infill markets through Toll Brothers City Living^® (“City Living”).

We have determined that our Traditional Home Building operations operate in five geographic segments: North, Mid-Atlantic, South, West, and California. The states comprising each geographic segment are as follows:

North:    Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, and New York

Mid-Atlantic:    Delaware, Maryland, Pennsylvania, and Virginia

South:    Florida, North Carolina, and Texas

West:    Arizona, Colorado, Nevada, and Washington

California:    California

Prior to October 31, 2015, California was included in the West geographic segment. Due to the increase in our assets and operations in California, effective October 31, 2015, California is presented as a separate geographic segment. Amounts reported in priors years have been reclassified herein to conform to this current presentation.

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

	Three months ended January 31,
	2016			2015
Revenues:
Traditional Home Building:
North	$	120,818		$	132,436
Mid-Atlantic	169,808			163,388
South	146,798			161,867
West	137,258			122,353
California	216,903			165,589
Traditional Home Building	791,585			745,633
City Living	136,981			107,819
Total	$	928,566		$	853,452
Income (loss) before income taxes:
Traditional Home Building:
North	$	8,033		$	10,567
Mid-Atlantic	16,983			18,724
South	21,245			23,324
West	19,688			20,431
California	43,536			24,928
Traditional Home Building	109,485			97,974
City Living	43,680			51,345
Corporate and other	(36,348		)	(25,296		)
Total	$	116,817		$	124,023

“Corporate and other” is comprised principally of general corporate expenses such as the offices of our executive officers; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; interest income; income from certain of our ancillary businesses, including Gibraltar; and income from a number of our unconsolidated entities.

Total assets for each of our segments, as of the dates indicated, are shown in the table below (amounts in thousands):

	January 31, 2016		October 31, 2015
Traditional Home Building:
North	$	1,103,413	$	1,061,777
Mid-Atlantic	1,220,407		1,225,988
South	1,244,100		1,196,650
West	1,028,305		949,566
California	2,277,125		2,243,309
Traditional Home Building	6,873,350		6,677,290
City Living	846,668		873,013
Corporate and other	1,043,419		1,656,212
Total	$	8,763,437	$	9,206,515

“Corporate and other” is comprised principally of cash and cash equivalents, marketable securities, restricted cash, deferred tax assets, the assets of our Gibraltar investments, manufacturing facilities, and our mortgage subsidiary.

Inventory for each of our segments, as of the dates indicated, is shown in the table below (amounts in thousands):

	Land controlled for future communities		Land owned for future communities		Operating communities		Total
Balances at January 31, 2016:
Traditional Home Building:
North	$	18,073	$	149,220	$	908,254	$	1,075,547
Mid-Atlantic	34,612		190,805		959,860		1,185,277
South	4,389		97,072		969,104		1,070,565
West	3,308		231,142		776,103		1,010,553
California	17,056		828,158		1,246,340		2,091,554
Traditional Home Building	77,438		1,496,397		4,859,661		6,433,496
City Living	753		416,611		329,190		746,554
	$	78,191	$	1,913,008	$	5,188,851	$	7,180,050
Balances at October 31, 2015:
Traditional Home Building:
North	$	12,858	$	146,063	$	865,553	$	1,024,474
Mid-Atlantic	33,196		194,058		956,749		1,184,003
South	4,861		205,562		806,513		1,016,936
West	8,417		198,689		726,256		933,362
California	14,386		899,675		1,149,112		2,063,173
Traditional Home Building	73,718		1,644,047		4,504,183		6,221,948
City Living	1,496		389,400		384,672		775,568
	$	75,214	$	2,033,447	$	4,888,855	$	6,997,516

The amounts we have provided for inventory impairment charges and the expensing of costs that we believed not to be recoverable for each our of segments, for the periods indicated, are shown in the table below (amounts in thousands):

	Three months ended January 31,
	2016		2015
Traditional Home Building:
North	$	12	$	430
Mid-Atlantic	9		161
South	635		549
West	625		4
Total	$	1,281	$	1,144

Investments in unconsolidated entities and equity in earnings from such investments for each of our segments, as of the dates indicated, are shown in the table below (amounts in thousands):

					Equity in earnings from unconsolidated entities
	Investments in unconsolidated entities				Three months ended January 31,
	January 31, 2016		October 31, 2015		2016			2015
Traditional Home Building:
Mid-Atlantic	$	12,332	$	12,167	$	—		$	—
South	95,394		97,041		2,424			2,766
West	—		—		2,921			504
California	123,951		128,338		187			83
Traditional Home Building	231,677		237,546		5,532			3,353
City Living	57,260		52,634		(183		)	(369		)
Corporate and other	125,927		122,680		3,289			1,917
Total	$	414,864	$	412,860	$	8,638		$	4,901

“Corporate and other” is comprised of our investments in the Rental Property Joint Ventures and the Structured Asset Joint Venture.