Information on Operating Segments

9 Months Ended

Jul. 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

Before 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):

	Nine months ended July 31,						Three months ended July 31,
	2016			2015			2016			2015
Revenues:
Traditional Home Building:
North	$	491,692		$	463,159		$	205,200		$	180,705
Mid-Atlantic	576,991			579,195			220,596			228,304
South	571,364			611,288			232,118			233,504
West	548,701			455,573			223,076			179,155
California	881,779			439,824			336,438			145,833
Traditional Home Building	3,070,527			2,549,039			1,217,428			967,501
City Living	243,530			185,007			52,506			60,510
Total	$	3,314,057		$	2,734,046		$	1,269,934		$	1,028,011
Income (loss) before income taxes:
Traditional Home Building:
North	$	35,300		$	27,918		$	18,994		$	14,487
Mid-Atlantic	56,348			50,251			18,478			9,432
South	84,765			100,960			32,386			38,360
West	74,164			73,811			30,313			28,826
California	198,776			71,684			80,293			25,040
Traditional Home Building	449,353			324,624			180,464			116,145
City Living	74,598			80,314			14,682			22,309
Corporate and other	(103,084		)	(86,919		)	(31,493		)	(30,990		)
Total	$	420,867		$	318,019		$	163,653		$	107,464

“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):

	July 31, 2016		October 31, 2015
Traditional Home Building:
North	$	1,122,979	$	1,061,777
Mid-Atlantic	1,233,802		1,225,988
South	1,230,005		1,196,650
West	1,168,085		949,566
California	2,573,603		2,243,309
Traditional Home Building	7,328,474		6,677,290
City Living	894,105		873,013
Corporate and other	1,183,120		1,656,212
Total	$	9,405,699	$	9,206,515

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